LESSON 6

CLOSE THE
PROJECT/PHASE
• Project/Phase Closure
• Benefits Realization
• Knowledge Transfer

Version 3.1 | 2023 Release Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
Learning Objectives

• Define the reasons and activities related to the closure of a phase or a project.
• Explain the benefits gained from a project or phase, and how they are managed,
sustained, etc.
• Examine the reasons for knowledge transfers and how they relate to the closure of
a phase or project.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
2
Project/Phase Closure
TOPIC A

3
Why Projects
or Phases Stakeholders accept deliverables based on acceptance
criteria established at the beginning of the project in
Close the project management plan
Fulfillment Acceptance criteria may be modified during a project life
cycle
Use the requirements traceability matrix to ensure
completion and approval of all requirements

At the end of an iteration, the team and stakeholders assess

the product/service against their mutually agreed definition of
done (DoD)
Final acceptance occurs prior to product release.

Acceptance criteria and definition of done (DoD)

express the same status of stakeholder satisfaction with
the product. Teams may use the terms interchangeably.
Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course. 4
Why Projects
or Phases
Close
Premature or • Requirements/needs change
Forced Closure • Project/deliverable is no longer feasible
• (Internal) Organization makes a change to the business case.
• (External) A legal or regulatory change prohibits progress.
• Project/deliverable is no longer desirable
• Impediment encountered
• Financial support is not available to complete the requirements
Can anyone share an
example of a forced • Risks with significant consequences make successful completion
project or phase impossible
closure?

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
5
Close Project or Phase Activities

• Acceptance of deliverables or product by customer

• Transition of deliverables or product to customer
• Notify enterprise and organizational functions; update OPAs
• Prepare final report
• Conclude external obligations, including legal, regulatory, contractual — e.g., transfer of liability,
closure of all accounts in financial system
• Archive project information
• Release resources (human, financial and physical assets)

These activities are part of the Close Project or Phase process and are typically
included in the project management plan and in the WBS, under the project
management function. Copyright 2023© Project Management Institute, Inc. All rights reserved.
This material is being provided as part of a PMI® course.
6
Transition
s
(Handovers) Deliverables are handed to the customer or owner.
Transition/handover specifications for deliverables are in the
project management plan.
• Some
organizations
use a rollout or
transition
plan. A tailored solution that delivers value — most likely in an
• This is not a incremental way — to the organization.
project
management
plan
component.
Every iteration output is handed to the product owner.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
7
Transition /
Handover
Ensure your customer is ready for change and success!
Readiness
Readiness may require additional change management
activities to ensure adoption and overcome resistance.

Especially critical if an existing product or service is

being upgraded.

Assess the readiness of all parties:

End The Project Support

Users Business Team Staff

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
8
Transition /
Handover
Activities Effective transitions or handovers of deliverables or products enable
end-user awareness, increasing the likelihood of successful adoption
and, therefore, of benefits realization.

Transition requirements can include:

• Training on the new product or service
• Documentation for the product/deliverable
• Effective communication between the project team and the
organization
• Post-implementation support (aka “hypercare”)

Where are the transition requirements recorded in a

predictive project?

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
9
Interactive / Activity

Do you remember the difference between

explicit and tacit knowledge?
Discuss the importance of transferring both
kinds of knowledge from the project team
to the customer.
Give an example of how your team has
done it in the past.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
10
Paying and
Closing
Contracts DO DON’T

• Notify the appropriate entity • Delay payments until project or

(usually accounts payable) phase closure, unless specified
when work has been fulfilled in the contract
and contracts can be paid

• Pay suppliers or vendors in

accordance with contract terms

Some payments may have

been made during the
project and the contract may
have been closed

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
11
Finalizing Contracts

Archiving contracts means collecting,

indexing and filing:
• Contract schedule
• Scope
• Quality
• Cost performance
• Contract change documentation
• Payment records and financial
documents
• Inspection results
• “As-built” or “as-developed”
documents, manuals, troubleshooting
and technical documentation

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
12
ECO Coverage

8. Negotiate project agreements

• Verify objective(s) of the project
agreement is met (1.8.3)
2.17 Plan and manage project/phase closure
or transitions
• Validate readiness for transition (e.g.,
operations team or next phase) (2.17.2)
• Conclude activities to close out project or
phase (e.g., final lessons learned,
retrospectives, procurement, financial,
resources) (2.17.3)

13
Benefits Realization
TOPIC B

14
Early and
Long-Term
Benefits Benefits accrue at various stages depending on:
• Project life cycle used
Realization • Nature of the project work
• Intended outcomes

Some benefits are

immediate while others Can you identify a type of project in which value is delivered
could take a few months very early?
to years!
And a project in which value is delivered months or even years
after transition?

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
15
Benefits Transition and Sustainment
Responsibilities

Any improvement or modification to delivered

benefits is a new project

• Handover/transition Any improvements or modifications to delivered

• Review of the benefits are proposed as work for the next/future
benefits iteration and placed/reprioritized on the backlog
management plan

Organizations and teams tailor solutions for benefits

realization and sustainment — e.g., post-
implementation support (aka “DevOps” or “hypercare”)

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
16
 Benefits Transition and Sustainment
An Explanation
Project Team Product Owner or
Customer
Project Manager
• Ensures continued generation of
Delivers benefits to customer Works with customer to identify work required for
organization improvements and delivered benefits
desired improvements
• Captures additional customer inputs

Provides planned performance Compares actual performance to planned Uses metrics chosen with team to measure
data performance, including KPIs performance

Works with business owner to

suggest benefits realization Implements benefits realization metrics at Collaborates with team to determine suitable
metrics, including frequency suitable intervals, tailored to needs metrics
and monitoring responsibilities

Determines if any remaining • Identifies risks, processes and tools

risks might prevent benefit Monitors risks on impediments log and
needed to ensure continued benefits
achievement collaborates with team about
realization
response
• Monitors risks affecting delivered benefits
Provides technical information
required to use the product or Collaborates with team to update technical
Updates technical information – e.g., FAQs
service information

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
17
Benefits
Management • Is a major input to authorizing the project
Plan • Examines the requested benefits and determines if both the tangible
and intangible business value will be realized from the project
• Determines the time frame for short- and long-term benefits
A business document
developed by the realization
organization to define • Identifies a benefits owner responsible for achieving the benefits,
potential benefits from the
project effort including:
• Metrics or measurements to be used
• Which individuals or groups measure results

In the plan, determine whether any remaining project risks might

prevent benefit achievement.

When key stakeholders are identifying desired project benefits, let

them suggest how the benefits should be measured.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
18
Benefits Owner

• Works with project manager/team

A benefits owner may be a business
lead during the project to ensure analyst, sponsor or operations manager.
planned benefits are managed as
they are delivered
• Assists in transitioning the
requested benefits to the receiving
organization
• Ensures that measurement metrics
and methods are established and
monitored The product owner is responsible for
making sure project work reaps benefits
• Reports to management on the
for the organization.
realized results (value) of the
delivered benefits

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
19
Verify Benefits Realization

• Using the chosen metrics, the product owner reports on progress for each
tangible benefit
• For intangible benefits, a subjective (qualitative) determination may be
more useful
• Reporting should include:
• For tangible benefits—progress toward being met

• Any benefits at risk of not being realized as planned

• Any resulting negative impact on strategic objectives

• Potential ending of the project team’s support

In a predictive project, once the transition is complete, who is

responsible for verifying that benefits are realized?

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
20
ECO Coverage

2.Evaluate and deliver project benefits and

value
• Document agreement on ownership for
ongoing benefit realization (3.2.2)
• Verify measurement system is in place to
track benefits (3.2.3)

21
Knowledge Transfer
TOPIC C

22
Knowledge Management
During Closing
• Conduct retrospectives or final
lessons learned meetings
• Archive all project information
• Finalize lessons learned register
• Add the lessons learned to the
knowledge management/lessons
learned repository
• Transition knowledge from project team
to the customer

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
23
Conduct
Project
Retrospective • Internalize learning about the work product and process
• Capture key successes and challenges
• Consider qualitative (people’s feelings) and quantitative
(measurements) data
• Use data to find root causes, design countermeasures,
and develop action plans for next time
• Praise, congratulate and motivate the team

An agile team might conduct a final retrospective, while a

project manager holds a final “all-hands” meeting for the team
in a predictive life cycle. These are similar ceremonies for
closing a project or phase.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
24
Finalize
Lessons

Learned
Include the following topics from the project’s
lessons learned register in the final report:
• Scope changes
• Schedule impacts
• Risks and issues
• Stakeholder relationships
• Vendor relationships
• Artifacts
• Recommendations

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
25
Consolidating Lessons
Learned

The following categories of lessons learned

information are especially important at the
end of a project:
• Scheduling
• Conflict management
• Sellers
• Customers
• Strategic
• Tactical

Transfer these into the lessons learned

repository.

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
26
Final Report: Summary of project or phase performance result

Description Describe activity undertaken, including deliverables or milestones

Scope
objectives Document scope evaluation criteria and give evidence of met completion criteria

Quality Describe evaluation criteria for project and product quality. Verify objectives are met,
objectives give actual milestone delivery dates and reasons for any variances

Cost objectives Restate acceptable cost range, give actual costs and reasons for any variances

Validation Include required approvals for final product, service or result—e.g., user satisfaction
information survey results
Schedule Verify project objectives were completed on time; report on any variance and effects of
objectives the variance
Benefits State how the final product, service or result achieved the business needs and
realization expected benefits; if partial, give details of variance and fulfillment schedule
Risks or issues
encountered List risks and issues and state how they were addressed

Copyright 2023© Project Management Institute, Inc. All rights reserved.

This material is being provided as part of a PMI® course.
27
ECO Coverage

2.16 Ensure knowledge transfer for project

continuity
• Confirm approach for knowledge transfers
(2.16.3)

28
End of Lesson 6

29