Project Termination

Types of
terminations
How and why
projects terminate
Typical termination
activities
Need for a project
history

13-1
All Things Come to an End . . .
Termination rarely has much impact on
technical success or failure . . .
But a huge impact on other areas
Residual attitudes toward the project (client,
senior management, and project team)
Success of subsequent projects
So it makes sense to plan and execute
termination with care

13-2
When Do Projects Terminate?
Upon successful completion, or . . .
When the organization is no longer
willing to invest the time and cost
required to complete the project, given
its current status and expected
outcome.

13-3
Most Common Reasons
Projects Terminate
1. Low probability of technical/commercial
success
2. Low profitability/ROI/market potential
3. Damaging cost growth
4. Change in competitive factors/market
needs
5. Unresolvable technical problems
6. Higher priority of competing projects
7. Schedule delays
Source: Dean, 1968
13-4
Decision Structure for a
Termination Decision, Figure 13-1

13-5
Four Varieties of Project
Termination
1. Termination by extinction
Project has successfully completed, or it
has failed
Natural passing, or termination by murder
Either way, project substance ceases, but much
work needs to be done
Administrative
Organizational

13-6
Four Varieties of Termination
(contd)
2. Termination by addition
The project becomes a formal part of the
parent organization
People, material, facilities transition
The example of Nucor
3. Termination by integration
Project assets are distributed to and
absorbed by the parent

13-7
Four Varieties of Termination
(contd)
4. Termination by starvation
Withdrawal of life support
Can save face, avoid embarrassment,
evade admission of defeat

13-8
Typical Termination Activities
In general, there are seven categories
of termination tasks. Examples of
activities:
1. Personnel
Dealing with trauma of termination
Finding homes for the team
Who will close the doors?
2. Operations/Logistics/Manufacturing
Rethinking systems
Provisions for training, maintenance, spares
13-9
Termination Activities (contd)
3. Accounting and Finance
Accounts closed and audited
Resources transferred
4. Engineering
Drawings complete/on file
Change procedures clarified

13-10
Termination Activities (contd)
5. Information Systems
Configuration and documentation in place
Systems integrated
6. Marketing
Sales and promotion efforts in line
7. Administrative
All organizations aware of change

13-11
A Design for Project
Termination, Figure 13-2

13-12
Project History
One of the major aims of termination is
development and transmittal of lessons
learned to future projects
One way to do that is through a project
history

13-13
Contents of a Project History
1. Project Performance
What was achieved; successes, challenges,
failures
2. Administrative Performance
Reports, meetings, project review procedures; HR,
financial processes
3. Organization Structure
How structure evolved, how it aided/
impeded progress

13-14
Contents of a Project History
(contd)
4. Project and Administrative Teams
Performance of the project team,
recommendations
5. Project Management Techniques
Planning, budgeting, scheduling, risk
management, etc.: what worked, what
didnt

13-15
Challenges to Meaningful
Project Histories
Since the project history has so much
potential benefit, why is it often done poorly,
or not at all?
Possible reasons
No one sees it as their job
PM has many other priorities, especially as project
winds down
Long duration projects mean many PMs,
voluminous record, little corporate memory
PMs may be more attuned to looking forward than
looking back
13-16