PROJECTTERMINATION
Sajjad Hussain
LEADBY:
Show-card
• Introduction of Project Termination
• Thevarietiesof Project termination
• When to terminateaproject
• TheTermination Process
• Final Report- Project History
• Afterword
Introduction of Project Termination
• A project Termination
– when work on the substance of the project has ceased or
slowed to the point that further progress is no longer
possible
• A Project life
– Each and every project hasabeginning and ending.
• Nature of Problems and cause to:
Nature Cause to
Easily solved Successful completion
Bye-passed Ceased
Lived Delayed / slowed
Ignored Replaced / better alternative
Reason of Termination:
– Poor planning and risk
management
– Uncertainty of environment
– Lack of Resources
– Key peopleleft
– Timeand cost
– Lack check and balanceand
involvement
– Corporate merger
– Political
Assassination
– Lack of
management
support
– Lack of customer
support
• Changeof vision and mission
Introduction of Project Termination
• Termination by extinction:
– Successful:
• objectivesmet
– Unsuccessful:
• say no to bye
• Better, faster, cheaper and obviousoutputsareavailable
• Clientsbecomeeither happy, angry and frustrated.
• Environment dynamics
•
The Varieties of project termination
• 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
The Varieties of project termination
• Termination by Integration
– Themost common way to terminateaproject
– Theproject comesinto thebusiness
– It isabsorbed into theexisting structure
– That structureabsorbstheassetsof theproject
The Varieties of project termination
Aspects of the Transition from Project to Integrated
Operation
• Personnel
• Manufacturing
• Accounting/finance
• Engineering
• Information systems
• Marketing
• Purchasing
• Risk management
The Varieties of project termination
• Termination by Starvation:
– Termination by starvation involvesgreatly
reducing thebudget of aproject
– Used when it ispolitically dangerousto cancel a
project
– Bad mannersto enquirethestatusof theproject
The Varieties of project termination
13-10
When to TerminateaProject
• Projectstakeon alifeof their own
• It may beeasy to terminateaproject that isfinished
• But it can bevery difficult to terminateaproject prior
to itscompletion
13-11
Critical SuccessFactors
• Project mission
• Top-management
support
• Project schedule/plan
• Client consolation
• Personnel
• Technical tasks
• Client acceptance
• Monitoring and
feedback
• Communication
• Trouble-shooting
13-12
Fundamental ReasonsWhy Some
ProjectsFail
• A project organization isnot required
• Insufficient support from senior management
• Naming thewrong person asproject manager
• Poor planning
13-13
Non-Technical Reasonsfor
Termination
• Political
• Cross-cultural
• Senescence
13-14
TheTermination Process
1. Must first decideto terminate
2. If thedecision isto terminatetheproject, the
decision must becarried out
13-15
TheDecision Process
• Sunk costsarenot relevant to thedecision about
terminating aproject
• Primary concern for project continuanceor
termination iswhether or not theorganization is
willing to invest theestimated timeand cost required
to completetheproject
13-16
TheImplementation Process
• Termination can beorderly or a“hatchet job”
• Planning for implementing an orderly shut down
yieldsbetter results
• Who leadstheshut down project?
• A special termination manager may beused
13-17
Thingsto Do
• Ensuretasksarecompleted
• Notify theclient
• Finish thepaperwork
• Send out final invoicesto theclient
• Redistributeresources
• Clear with legal counsel
• Determinewhat recordsto keep
• Assign support
• Closetheproject books
13-18
TheFinal Report—A Project
History
• Project performance
• Administrativeperformance
• Organizational structure
• Project and administrativeteams
• Techniquesof project management

Project Termination

  • 1.
  • 2.
    Show-card • Introduction ofProject Termination • Thevarietiesof Project termination • When to terminateaproject • TheTermination Process • Final Report- Project History • Afterword
  • 3.
    Introduction of ProjectTermination • A project Termination – when work on the substance of the project has ceased or slowed to the point that further progress is no longer possible • A Project life – Each and every project hasabeginning and ending. • Nature of Problems and cause to: Nature Cause to Easily solved Successful completion Bye-passed Ceased Lived Delayed / slowed Ignored Replaced / better alternative
  • 4.
    Reason of Termination: –Poor planning and risk management – Uncertainty of environment – Lack of Resources – Key peopleleft – Timeand cost – Lack check and balanceand involvement – Corporate merger – Political Assassination – Lack of management support – Lack of customer support • Changeof vision and mission Introduction of Project Termination
  • 5.
    • Termination byextinction: – Successful: • objectivesmet – Unsuccessful: • say no to bye • Better, faster, cheaper and obviousoutputsareavailable • Clientsbecomeeither happy, angry and frustrated. • Environment dynamics • The Varieties of project termination
  • 6.
    • Termination byAddition –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 The Varieties of project termination
  • 7.
    • Termination byIntegration – Themost common way to terminateaproject – Theproject comesinto thebusiness – It isabsorbed into theexisting structure – That structureabsorbstheassetsof theproject The Varieties of project termination
  • 8.
    Aspects of theTransition from Project to Integrated Operation • Personnel • Manufacturing • Accounting/finance • Engineering • Information systems • Marketing • Purchasing • Risk management The Varieties of project termination
  • 9.
    • Termination byStarvation: – Termination by starvation involvesgreatly reducing thebudget of aproject – Used when it ispolitically dangerousto cancel a project – Bad mannersto enquirethestatusof theproject The Varieties of project termination
  • 10.
    13-10 When to TerminateaProject •Projectstakeon alifeof their own • It may beeasy to terminateaproject that isfinished • But it can bevery difficult to terminateaproject prior to itscompletion
  • 11.
    13-11 Critical SuccessFactors • Projectmission • Top-management support • Project schedule/plan • Client consolation • Personnel • Technical tasks • Client acceptance • Monitoring and feedback • Communication • Trouble-shooting
  • 12.
    13-12 Fundamental ReasonsWhy Some ProjectsFail •A project organization isnot required • Insufficient support from senior management • Naming thewrong person asproject manager • Poor planning
  • 13.
  • 14.
    13-14 TheTermination Process 1. Mustfirst decideto terminate 2. If thedecision isto terminatetheproject, the decision must becarried out
  • 15.
    13-15 TheDecision Process • Sunkcostsarenot relevant to thedecision about terminating aproject • Primary concern for project continuanceor termination iswhether or not theorganization is willing to invest theestimated timeand cost required to completetheproject
  • 16.
    13-16 TheImplementation Process • Terminationcan beorderly or a“hatchet job” • Planning for implementing an orderly shut down yieldsbetter results • Who leadstheshut down project? • A special termination manager may beused
  • 17.
    13-17 Thingsto Do • Ensuretasksarecompleted •Notify theclient • Finish thepaperwork • Send out final invoicesto theclient • Redistributeresources • Clear with legal counsel • Determinewhat recordsto keep • Assign support • Closetheproject books
  • 18.
    13-18 TheFinal Report—A Project History •Project performance • Administrativeperformance • Organizational structure • Project and administrativeteams • Techniquesof project management