Course Learning Outcomes for Unit VIII

Upon completion of this unit, students should be able to:

1. Evaluate methods for risk management.

1. Apply best practices for project budgeting and cost management procedures.

1. Utilize various project scheduling techniques.

1. Develop a quality management plan to ensure project quality.

1. Prepare a final project report.

5.1           Explain basic concepts of projects and project success as it relates to project closing.

1. Determine project requirements using requirement collection tools and techniques.

1. Outline project communications to manage stakeholder expectations and report performance.

1. Plan project procurements by identifying methods to manage procurements and monitor contract performance.

Required Unit Resources

Chapter 14: Project Closeout and Termination, pp. 496–515

Unit Lesson

Project Closeout

While many PMs and team members may breathe a sigh of relief once a project has completed and is successful, there is still work to be done. The project needs to be closed out, but many organizations may purposely overlook this step. Why?

1. Some organizations tend to view a project as done when the client signs off. No further work is deemed necessary.


2. Some organizations have multiple projects going or waiting to be started. If budgets are thin, resources are stretched, or time is of the essence, PMs may be encouraged to move their time and energy to other projects.


3. Some organizations will view closeout activities as simply unimportant.


4. Some organizations may view lessons learned as important information to gather but simply file the information.


5. Some organizations have projects that are mostly not very similar, so the lessons learned are viewed as not very applicable to future projects.

So, why would we need to close out a project? First, we need to obtain all of the needed signoffs showing that the clients and/or project sponsor have accepted the project. Second, documentation needs to reflect any changes that were made. Third, we need some plan for document retention so we can archive the project information. Staff tends to turnover, and as time passes, we may not remember all of the details of a project. Also, what about the lessons learned from a project? Those lessons may benefit our organization greatly as we adopt new, future projects. Also, consider that projects may not be successful or even completed, and they still need to be closed out.

A project that terminates by achieving its goals is considered to be a natural termination. However, if a project has to close but is not meeting its goals, it is considered an unnatural termination.

Types of Project Termination

If the project completes, whether it was considered successful or not, the termination reason is considered termination by extinction. If you remember from a previous lesson, a project may not be deemed successful if the client is not happy, if the project was over budget, or if it went beyond the expected end date. Regardless of success, the PM still has to complete closing activities.

If the project is successful and the team will continue to work as a unit, the termination reason may be termination by addition. In other words, the team did so well that they will become an entity and will work as a unit to complete other projects. The complete project will likely serve as a typical model for future products.

If the team and all the project resources are to be integrated back into the organization, then the termination reason might be a termination by integration. In this case, the project was likely large and integral to the organization’s success. The team members were likely removed from their day-to-day activities to work solely on the project for a long period of time. So, now that the project has ended, everyone has to be integrated back into the organization.

If the project will likely never be finished, the termination reason would be termination by starvation. This just means the project will not completely go away right now, and it is hoped that one day, it will be started again. The usual reason is some sort of budgetary shortfall.

Closing a Project

The following is a general list of the activities involved in closing out a project.

1. Finish the work: If this were a project that involved constructing a warehouse, there would likely be final walkthroughs. If you were creating a piece of software, you would do some final cleanup. You may even need final information from the software tester to show that your software is bug-free. You may need to use a predeveloped checklist to make sure everything is addressed.


2. Transfer of ownership: This is where you hand that product to the client for full use. You may need to have an agreement for training or maintenance for a period of time. If you were building a product, you may have to hand over the technical specs. If you built a building, there may be an agreement for who handles any maintenance issues for a period of time.


3. Receiving acceptance: The client may withhold final acceptance until they are sure that the product is working correctly. They may want to provide a future date for providing final acceptance.


4. Receiving benefit: This involves realizing that the project was successful and the organization is benefiting. It could be in the form of increased sales and market share, or a happy client.


5. Reviewing project performance: How did the project itself go? Were there any issues? How were they handled? How was the team members’ performance?


6. Final project activities: This includes documentation, cost accounting, and contracts, among others. This involves the final closeout of the documentation and booking the cost where it needs to be. Budgetary items have to be accounted for and closed out. Any leftover monies have to be put elsewhere (e.g., general budget) or moved to another project.


7. Disband the project team: This may be as simple as thanking everyone for their hard work and sending them to their functional areas to work. However, many times, the PM will provide something as a more tangible thank you. For example, the team may be treated to a lunch or pizza party. The team may be given polo shirts with the team logo.

Project Termination

As we have discussed throughout this course, a project is generally considered successful if it is on time, within budget, and the client is happy. You may be able to guess the biggest reason to terminate a project. You may think that cost would be a common reason. If, for some reason, the costs are to be too high or the outcome is deemed not likely to provide a good return of investment, then the project may be terminated early.

What if the project no longer aligns with the goals or with the organization’s strategic mission? A good example of this is having projects for a specific retail arm of the business and having the board decide to sell off that group of stores. There is no need to continue those projects, right?

What if some needed supplies or technology are not always readily available? This will likely cause us to miss our deadlines. The organization may decide to revisit the project at a later time when the resources are more readily available.

What if our project takes three years to complete? Will the available technology be the same in three years? How do we stay competitive in the market if we cannot keep up with technology?

Other Considerations

It is also important to note that there may be other considerations when closing a project. There may be internal or external issues that may be emotional or intellectual in nature. For an internal, emotional example, imagine that you are a part of a very important, high-profile project. There may be a lot of stress, but the team is highly motivated. After successful completion of the project, what if you have to go back to your desk and review boring reports? You may miss the comradery and collaboration that you experienced with the team.

You may miss being a part of something important that stretches the bounds of your creativity and innovation. What do you do then? You may consider looking for a job working on project teams. How should the organization deal with this letdown?

Intellectual concerns coincide with the issues mentioned above concerning why we need to close a project. Intellectual concerns may include closing out work packages and identifying outstanding commitments. For example, if the project is terminated early, we have to consider what is left to be done, how to dispose of materials and supplies, or how to redistribute resources and materials. We may have to consider how to communicate project closing activities with external clients and suppliers. What if our organization’s competency is called into question by our clients because we have issues with our project management and successful completion of projects? What will that do to our reputation and our client’s trust in us as an organization?

Conclusion

This concludes our unit lessons. By now, you should have deep knowledge of how to plan and manage a project from start to successful completion. Project management can be found in most any organization and in any industry. Being able to manage a project is a skill that is both academic and experience-based. As you work on project teams and even manage projects, your knowledge will increase, and your skills will grow. Not only are your technical and management skills growing, but your soft skills, such as communications, teamwork, and problem-solving will have improved by participating in this course.

Suggested Unit Resources

In order to access the following resources, click the links below.

The following articles in the CSU Online Library provide some insight on project management in an organization, which was discussed in the textbook reading and the unit lesson. You are highly encouraged to view this information.

Guan, J., Liu, Q., & Peng, H. (2002). Making better project termination decisions. (Managers at work).

Research-Technology Management, 45(1). Retrieved from http://go.galegroup.com.libraryresources.columbiasouthern.edu/ps/retrieve.do?tabID=T002&resultList Type=RESULT_LIST&searchResultsType=SingleTab&searchType=BasicSearchForm¤tPositio n=1&docId=GALE%7CA82353647&docType=Article&sort=Relevance&contentSegment=ZONE- MOD1&prodId=AONE&contentSet=GALE%7CA82353647&searchId=R3&userGroupName=oran951 08&inPS=true

Von Zedtwitz, M. (2003). Post-project reviews in R&D: Only one out of five R&D projects is reviewed after termination, thereby losing important learnings. Here’s how best-practice companies conduct their reviews. Research-Technology Management, 46(5). Retrieved from http://go.galegroup.com.libraryresources.columbiasouthern.edu/ps/retrieve.do?tabID=T002&resultList Type=RESULT_LIST&searchResultsType=SingleTab&searchType=BasicSearchForm¤tPositio n=3&docId=GALE%7CA108478653&docType=Article&sort=Relevance&contentSegment=ZONE- MOD1&prodId=AONE&contentSet=GALE%7CA108478653&searchId=R3&userGroupName=oran95 108&inPS=true