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Project - PPT 7 Termination No Test

This document discusses various ways that projects can be terminated. Projects can end through extinction when work stops, through addition when a successful project is institutionalized, through integration when a project is absorbed into an existing business structure, or through starvation by gradually reducing a project's budget. The decision to terminate a project should be based on whether the organization is willing to invest more time and costs to complete it. An orderly termination process involves notifying stakeholders, completing tasks, closing financial records, and producing a final report documenting the project history.

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Welday Gebremichael
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307 views17 pages

Project - PPT 7 Termination No Test

This document discusses various ways that projects can be terminated. Projects can end through extinction when work stops, through addition when a successful project is institutionalized, through integration when a project is absorbed into an existing business structure, or through starvation by gradually reducing a project's budget. The decision to terminate a project should be based on whether the organization is willing to invest more time and costs to complete it. An orderly termination process involves notifying stakeholders, completing tasks, closing financial records, and producing a final report documenting the project history.

Uploaded by

Welday Gebremichael
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Project Termination

13-1
Introduction

 All projects end


– The objectives have been completed
– It no longer makes sense to finish
 Some teams move on to other projects
 Other times, members go their own way
 The client may be happy, mad, or
anywhere in between

13-2
The Varieties of Project Termination

 Termination by extinction
 Termination by addition
 Termination by integration
 Termination by starvation

13-3
Termination by Extinction

 Extinction occurs in any scenario where


the project goes away
– Successful
– Unsuccessful
– Changes in environment
– Take too long
– Murder
 When work on a project stops, some
organizational work continues
13-4
Termination by Addition

 Applies to an in-house project


 When the project is successful, it is
institutionalized
 While the project goes away, project
personnel and assets are transferred to
the new business

13-5
Termination by Integration

 The most common way to terminate a


project
 The project comes into the business
– It is absorbed into the existing structure
 That structure absorbs the assets of the
project

13-6
Aspects of the Transition from Project to
Integrated Operation

 Personnel  Information systems


 Manufacturing  Marketing
 Accounting/finance  Purchasing
 Engineering  Risk management

13-7
Termination by Starvation

 Termination by starvation involves greatly


reducing the budget of a project
 Used when it is politically dangerous to
cancel a project
 Bad manners to enquire the status of the
project

13-8
When to Terminate a Project

 Projects take on a life of their own


 It may be easy to terminate a project that
is finished
 But it can be very difficult to terminate a
project prior to its completion

13-9
Critical Success Factors

 Project mission  Technical tasks


 Top-management  Client acceptance
support  Monitoring and
 Project feedback
schedule/plan  Communication
 Client consolation  Trouble-shooting
 Personnel

13-10
Fundamental Reasons Why Some
Projects Fail

 A project organization is not required


 Insufficient support from senior
management
 Naming the wrong person as project
manager
 Poor planning

13-11
Non-Technical Reasons for Termination

 Political
 Cross-cultural
 Senescence

13-12
The Termination Process

1. Must first decide to terminate


2. If the decision is to terminate the
project, the decision must be carried out

13-13
The Decision Process

 Sunk costs are not relevant to the


decision about terminating a project
 Primary concern for project continuance
or termination is whether or not the
organization is willing to invest the
estimated time and cost required to
complete the project

13-14
The Implementation Process

 Termination can be orderly or a “hatchet


job”
 Planning for implementing an orderly shut
down yields better results
 Who leads the shut down project?
 A special termination manager may be
used

13-15
Things to Do

 Ensure tasks are completed


 Notify the client
 Finish the paperwork
 Send out final invoices to the client
 Redistribute resources
 Clear with legal counsel
 Determine what records to keep
 Assign support
 Close the project books

13-16
The Final Report—A Project History

 Project performance
 Administrative performance
 Organizational structure
 Project and administrative teams
 Techniques of project management

13-17

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