Project Termination

1. Project Termination Date: 01/12/2010 Dr. Ayham Jaaron

2. Introduction • All projects end • The objectives have been completed • It no longer makes sense to finish • Some teams move on to other projects • Other times, members goes their own way • The client may be happy, mad, or anywhere in between

3. The Variables of Project Termination • Termination by extinction • Termination by addition • Termination by integration • Termination by starvation

4. Termination by Extinction • Extinction occurs in any scenario where the project goes away • Successful • Achieved its goals • Or stopped because it is unsuccessful Examples: • The product has been developed and handed over to the client. • The building has been completed and accepted by the owner.

5. Termination by Extinction...con’t • Famous example: The explosion of NASA’s Challenger has stopped many projects overnight.

6. Termination by Addition • Applies to an in-house project that carried out in the parent organization. • When the project is successful, it is institutionalized (by making or adding it as a part of the parent organization) • While the project goes away, project personnel and assets are transferred to the organization through changes in structure.

7. Termination by Integration • The most common way to terminate a project and most complex. • The project comes into the business • It is absorbed into the existing structure by integrating it in an already established system or division. • That structure also absorbs the assets of the project.

8. Termination by Starvation • Termination by starvation involves greatly reducing the budget of a successful project to the extent where the project can not continue. • If the project is consistent with organizational goals, and has achieved its goals fully, then it can be terminated this way.

9. When to Terminate a Project • Projects take on a life of their own • It may be easy to terminate a project that is finished • But it can be very difficult to terminate a project prior to its completion

10. The Termination Process • Must first decide to terminate • Next, must carry out the decision to terminate

11. The Decision Process • Sunk costs are not relevant to the decision about terminating a project • The main issue is if the cost to finish is more/less than the value of the project when finished

12. The Implementation Process • Termination can be orderly or a “hatchet job” • Planning for an implementing an orderly shut down yields better results • Who leads the shut down project • A special termination manager may be used

13. Things to Do • Insure tasks are completed • Notify the client • Finish the paperwork • Send out final invoices to the client • Redistribute resources • Clear with legal issues • Determine what records to keep • Assign support • Close the project books

14. The Final Report—A Project History • Project performance • Administrative performance • Organizational structure • Project and administrative teams • Techniques of project management