This document discusses project sustainability, exit strategies, and closure. It notes that sustainability should be considered from the start of a project and discusses factors that affect sustainability, such as community participation and demand responsiveness. Regarding exit strategies, it describes project extinction, addition, integration, and starvation. Project closure involves administrative and contractual processes as well as a final report detailing lessons learned, performance, management techniques, and recommendations to improve future projects.

1. Project Implementation and
Closure
(PPM 552)
Chapter Five
Project Sustainability and
Exit Strategy
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Dereje Teklemariam, PhD [Feb.2018]

2. Concept of Project Sustainability
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 “Meeting the needs of the present without compromising the
ability of future generations to meet their own needs.“ (UN,
1987).
One of the key issues related to sustainability in many projects is
the timing of the discussion on ensuring sustainability.
Often project partners start to discuss sustainability late in the
project implementation phase. On the other hand, sustainability
should not be just an issue discussed during the application process
and then forgotten.
Think of sustainability from the start and work for it.
Dereje Teklemariam, PhD [Feb.2018]

3. Project Sustainability
• Work towards ensuring sustainability from the
beginning:
Others??
Dereje Teklemariam, PhD [Feb.2018]
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4. Sustainability! Contextualization!
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 Sustainability is the ability of a project to initiate a
process by which benefits are maintained. The word
"project” is used in different ways by different
stakeholders. In some circumstances, it is viewed as
a temporary administrative arrangement, a budget,
the physical infrastructure, a period of time, and even
as some combination of all four.
Sustainability cannot be objectively quantified as
it requires value judgments to actually apply the concept
to specific projects and to come to conclusions as
to whether or not the projects will supply
sustainable benefits.
Two fundamental problems arise in this regard:
Dereje Teklemariam, PhD [Feb.2018]

5.  Problem 1
 The measure of benefit is often imprecise-the benefit
intent of a project may cover multiple goals. Though
a level of service may be maintained, that service itself
has several dimensions of benefit, such as quantity,
access, reliability, quality, and cost (QARQC).
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 Problem 2
 Theadjective
connotations.
"sustainable” has strong normative
in the projects
Different participants
(donors, host government, beneficiaries)
different evaluations of sustainability based
will have
on the
relative value of achieving the various goals.
Dereje Teklemariam, PhD [Feb.2018]

6. Factors that affect project sustainability
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 Pre-implementation factors include:
 community participation,
 technology selection,
 site selection,
 demand responsiveness,
 construction quality,
 population and
 training are some of the pre-implementation factors.
Dereje Teklemariam, PhD [Feb.2018]

7. Factors that affect project sustainability
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 Post-implementation factors include:
 technical support,
 community satisfaction,
 institutional and financial management,
 training and
 willingness to sustain the project
Dereje Teklemariam, PhD [Feb.2018]

8. Ensuring project sustainability in design
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9. Project Exit /Closeout/ Strategy
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Dereje Teklemariam, PhD [Feb.2018]

10. Project closeout
• Purpose:
• To detail formal acceptance and orderly process for ending
the project and handing it off to the client/customer/end-
user....
• Objectives:
• Accept the project’s products by sign-off
• Conduct a lessons learned session
• Complete the post-implementation Evaln Report (PIER)
• Recognize outstanding work
• Celebrate achievements of the project’s team
• Disburse the resources-staff, facilities, automated systems
• Complete and archive all final project records
• Conduct contract closure or related inspections
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11. Project Closeout: Dual Process
Project close-out
Phase
Administrative
closure
Admn processes
Admin deliverables
Contract closure
All contract obligations
are met
Contract deliverables
are verified
Post-implementation
Report
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12. 12
Dereje Teklemariam, PhD [Feb.2018]

13. Project Exit /Closeout/ Strategies
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Dereje Teklemariam, PhD [Feb.2018]

14. Project Exist /closeout/Strategies
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 There are several fundamentally different ways to
close out a project:
 extinction,
 addition,
 integration, and
 starvation.
 Project extinction occurs
although
when
there
the project activity
is still property,
suddenly stops,
equipment, materials, and personnel to disburse or
reassign. The project was terminated either because
it was successfully completed or because the
expectation of failure was high.
Dereje Teklemariam, PhD [Feb.2018]

15. Project Exit /Closeout/ Strategies
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 Termination- by- addition occurs when an “ in-
house” project is successfully completed, and
institutionalized as a new, formal part of the organization.
 This may take the form of an added department, division,
subsidiary,
depending
project.
or other such organizational entity,
on the magnitude and importance of the
 Termination - by - integration With termination - by -
addition, the project property often is simply
transferred to an existing or newly created organizational
entity.
 With termination - by - integration , the output of the
project becomes a standard part of the operating
systems of the sponsoring firm, or the client.
Dereje Teklemariam, PhD [Feb.2018]

16. Project Exit /Closeout/ Strategies
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 The new software becomes the standard, and the
new machine becomes a normal part of the
production line. Project property, equipment, material,
personnel, and even functions are distributed
among the existing elements of the parent or client
organization.
 Whether the personnel return to their functional homes in
the organization or become a part of the
integrated system, all the following functions of the
project need consideration in the transition from
project to integrated operations: HR, Manufacturing ,
Marketing, Operations, etc…
Dereje Teklemariam, PhD [Feb.2018]

17. Project Exit /Closeout/ Strategies
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 Termination - by - starvation often occurs when it is
impolitic /unwise/ to terminate a project but its budget
can be squeezed, as budgets always are, until it is
a project in name only.
 The project may have been suggested by a special
client, or a senior executive (e.g., a sacred cow), or
perhaps terminating the project would be an
embarrassing acknowledgment of managerial failure.
 Occasionally a few project personnel members
remain assigned to such a project along with a clerk
whose duty it is to issue a “ no - progress ” report once
each quarter. It is considered bad manners for anyone to
inquire about such projects.
Dereje Teklemariam, PhD [Feb.2018]

18. The Project Final Report
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 With the exception of routine projects where
a simple “We did it. No problems” is sufficient,
the project final report is a history of the project.
 It is a chronicle, typically written by the PM, of what
went right and what went wrong, who served the
project in what capacity, what was done, how it was
managed, and the lessons learned.
 Question: What items should be reported by PM?
 How the report is written, and in what style, is a
matter of taste and preference. In any case, the
following items should be addressed.
Dereje Teklemariam, PhD [Feb.2018]

19. Project Final Report
 Project performance — perhaps the most
important information is what the project attempted
to achieve, what it did achieve, and the reasons for
the resulting performance. These items can be
the PM ’ s personal opinion on the matter. The
lessons learned in the project should also be
included here.
 Administrative performance —
administrative practices that worked particularly
well, or poorly, should be identified and the reasons
given. If some modification to administrative
practices would help future projects, this should be
noted and explained.
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Dereje Teklemariam, PhD [Feb.2018]

20. Project Final Report
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 Organizational structure
different structures, and
— projects may
the way
have
the project is
organized may either aid or hinder the
project. Modifications that would help future
projects should be identified.
Project teamwork
- Particularly effective when operating as a team be
kept together on future assignments.
Dereje Teklemariam, PhD [Feb.2018]

21. Project Final Report
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 Project management
success is so
techniques — project
dependent on the skill and
techniques for forecasting, planning, budgeting,
scheduling, resource allocation, control, risk
management, and so on that procedures that
worked well or badly should be noted and
for
commented upon. Recommendations
improvements in future projects should be made
and explained.
Dereje Teklemariam, PhD [Feb.2018]

22. The fundamental purpose of the final report is to
improve future projects. Thus, recommendations for
improvements are especially appropriate and valued by
the organization. The PM should follow up
recommendations made to make sure that
accepted and installed, or rejected for cause
on any
they are
Since most of the information and recollections come
from the PM, it is suggested that the PM keep a project “
diary. ” This is not an official project document but an
informal collection of thoughts, reflections, and
commentaries on project happenings
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Dereje Teklemariam, PhD [Feb.2018]

23. End of Chapter Five
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Dereje Teklemariam, PhD [Feb.2018]