Project management
Project Termination
1
Project Termination
Types of terminations How and why projects terminate
Typical termination activities Need for a project history 2
All Things Come to an End
...
Termination
– impact on technical success
– Impact on other areas
– Plan and execute termination with care
3
When Do Projects
Terminate?
Upon successful completion,
– or . . .
When the organization is no longer willing to invest
4
Most Common Reasons
Projects Terminate
1.
2.
3.
4.
5.
6.
7.
Low probability of success
Low profitability
Damaging cost growth
Change in competitive factors
Un-resolvable technical problems
Higher priority
Schedule delays
Source: Dean, 1968
5
Decision Structure for a
Termination Decision, Figure 13-1
6
Four Varieties of Project
Termination
1. “Termination by extinction”
– Project is completed
– Project has failed
– Changes in external environment
– Murder
7
Four Varieties of
Termination (cont’d)
2. “Termination by addition”
– The project becomes a part of the organization 3. “Termination by integration”
– Project assets absorbed by the parent
8
Four Varieties of
Termination (cont’d)
4. “Termination by starvation”
– Withdrawal of “life support”
9
Typical Termination
Activities
Seven categories of termination tasks.
Examples of activities:
– 1. Personnel
– 2. Operations/Logistics/Manufacturing
10
Termination Activities
(cont’d)
3. Accounting and Finance
4. Engineering
11
Termination Activities
(cont’d)
5. Information Systems
6. Marketing
7. Administrative
12
A Design for Project Termination
13
How do you know when to terminate?
Buell’s List
14
Project History
Major aims of termination is “lessons learned” do that through a project history
15
Critical success Factors
1.
Mission
2.
Top Mgmt support
3.
Schedule/Plan
4.
Client Consultation
5.
Personnel
16
1
Project Termination
Types of terminations How and why projects terminate
Typical termination activities Need for a project history 2
All Things Come to an End
...
Termination
– impact on technical success
– Impact on other areas
– Plan and execute termination with care
3
When Do Projects
Terminate?
Upon successful completion,
– or . . .
When the organization is no longer willing to invest
4
Most Common Reasons
Projects Terminate
1.
2.
3.
4.
5.
6.
7.
Low probability of success
Low profitability
Damaging cost growth
Change in competitive factors
Un-resolvable technical problems
Higher priority
Schedule delays
Source: Dean, 1968
5
Decision Structure for a
Termination Decision, Figure 13-1
6
Four Varieties of Project
Termination
1. “Termination by extinction”
– Project is completed
– Project has failed
– Changes in external environment
– Murder
7
Four Varieties of
Termination (cont’d)
2. “Termination by addition”
– The project becomes a part of the organization 3. “Termination by integration”
– Project assets absorbed by the parent
8
Four Varieties of
Termination (cont’d)
4. “Termination by starvation”
– Withdrawal of “life support”
9
Typical Termination
Activities
Seven categories of termination tasks.
Examples of activities:
– 1. Personnel
– 2. Operations/Logistics/Manufacturing
10
Termination Activities
(cont’d)
3. Accounting and Finance
4. Engineering
11
Termination Activities
(cont’d)
5. Information Systems
6. Marketing
7. Administrative
12
A Design for Project Termination
13
How do you know when to terminate?
Buell’s List
14
Project History
Major aims of termination is “lessons learned” do that through a project history
15
Critical success Factors
1.
Mission
2.
Top Mgmt support
3.
Schedule/Plan
4.
Client Consultation
5.
Personnel
16