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ProjectTermination1PreambleProjectTermination2TheWaysofTerminatingaProject•Aprojectcanbesaidtobeterminatedwhenworkonthesubstanceoftheprojecthasceasedorslowedtothepointthatfurtherprogressisnolongerpossible;•Therearefourfundamentallydifferentwaystocloseoutaproject:extinction,addition,integration,andstarvationProjectTermination3TerminationbyExtinction•Theprojectmayendbecauseithasbeensuccessfulandachieveditsgoals;•Theprojectmayalsobestoppedbecauseitisunsuccessfulorhasbeensuperseded;•Aspecialcaseofterminationbyextinctionis“terminationbymurder”whichcanrangefrompoliticalassassinationtoaccidentalprojecticide.ProjectTermination4TerminationbyExtinction•Twoimportantcharacteristicsofterminationbymurderarethesuddennessofprojectdemiseandthelackofobvioussignalsthatdeathisimminent;•Whenadecisionismadetoterminateaprojectbyextinction,themostnoticeableeventisthatallactivityonthesubstanceoftheprojectceases.ProjectTermination5TerminationbyAddition•Ifaprojectisamajorsuccess,itmaybeterminatedbyinstitutionalizingitasaformalpartoftheparentorganization;•Projectpersonnel,property,andequipmentareoftensimplytransferredfromthedyingprojecttothenewlyborndivision;•Thetransitionfromprojecttodivisiondemandsasuperiorlevelofpoliticalsensitivityforsuccessfulaccomplishment.ProjectTermination6TerminationbyIntegration•Thismethodofterminatingprojectsisthemostcommonwayofdealingwithsuccessfulprojects,andthemostcomplex;•Theproperty,equipment,material,personnel,andfunctionsoftheprojectaredistributedamongtheexistingelementsoftheparentorganization.ProjectTermination7TerminationbyIntegration•Ingeneral,theproblemsofintegrationareinverselyrelatedtothelevelofexperiencethattheparentorclienthashadwith:–thetechnologybeingintegrated;–thesuccessfulintegrationofotherprojects,regardlessoftechnology.ProjectTermination8TerminationbyIntegration•Afewofthemoreimportantaspectsofthetransitionfromprojecttointegratedoperationthatmustbeconsidered:–Personnel-wherewilltheteamgo?;–Manufacturing-isthetrainingcomplete?;–Accounting/Finance-havetheproject’saccountbeenclosedandaudited?;–Engineering-arealldrawingscompleteandonfile?;–InformationSystems/Software-hasthenewsystembeenthoroughlytested?;–Marketing-isthesalesdepartmentawareofthechange?ProjectTermination9TerminationbyStarvation•Thistypeofprojectterminationisa“slowstarvationbybudgetdecrement”;•Therearemanyreasonswhyseniormanagementdoesnotwishtoterminateanunsuccessfulorobsoleteproject:–Politicallydangeroustoadmitthatonehaschampionedafailure;–Terminatingaprojectthathasnotaccomplisheditsgoalsisanadmissionoffailure.ProjectTermination10WhentoTerminateaProject•Somequestionstoaskwhenconsideringtermination:–Hastheprojectbeenobviatedbytechnicaladvances?–Istheoutputoftheprojectstillcost-effective?–Isittimetointegrateoraddtheprojectasapartofregularoperations?–Aretherebetteralternativeusesforthefunds,timeandpersonneldevotedtotheproject?–Hasachangeintheenvironmentalteredtheneedfortheproject’soutput?ProjectTermination11WhentoTerminateaProject•Fundamentalreasonswhysomeprojectsfailtoproducesatisfactoryanswerstoterminationquestions:–Aprojectorganizationisnotrequired;–Insufficientsupportfromseniormanagement;–Namingthewrongpersonasprojectmanager;–Poorplanning.•Theseandafewotherreasons,arethebasecauseofmostprojectfailures;•Thespecificcausesderivefromthesefundamentalissues.ProjectTermination12TheTerminationProcess•Theterminationprocesshastwodistinctparts;•Firstisthedecisionwhetherornottoterminate;•Second,ifthedecisionistoterminatetheproject,thedecisionmustbecarriedout.ProjectTermination13TheDecisionProcess•Decision-aidingmodelsfortheterminationdecisionfallintotwogenericcategories:1.Modelsthatbasethedecisiononthedegreetowhichtheprojectqualifiesagainstasetoffactorsgenerallyheldtobeassociatedwithsuccessfulprojects;2.Modelsthatbasethedecisiononthedegreetowhichtheprojectmeetsthegoalsandobjectivessetforit;•Justasthedecisioncriteria,constraints,weights,andenvironmentaldataareuniquetoeachorganization,soarethespecificsofusinganydecisionmodel.ProjectTermination14TheImplementationProcess•Theactualterminationcanbeplannedandorderly,orasimplehatchetjob;•Specialterminationmanagersaresometimesusefulincompletingthelongandinvolvedprocessofshuttingdownaproject;•Theprimarydutiesofthemanagerinchargeofterminationcanbeencompassedinninegeneraltasks.ProjectTermination15TheImplementationProcess•Dutiesoftheterminationmanager:–Ensurecompletionofthework,includingtasksperformedbysubcontractors;–Notifytheclientofprojectcompletionandensurethatdeliveryisaccomplished;–Ensurethatdocumentationiscompleteincludingaterminalevaluationoftheprojectdeliverablesandpreparationoftheproject’sFinalReport;–Clearforfinalbillingsandoverseepreparationofthefinalinvoicessenttotheclient.ProjectTermination16TheImplementationProcess•Dutiesoftheterminationmanager(cont.):–Redistributepersonnel,materialsequipment,andanyotherresourcestotheappropriateplaces;–Clearprojectwithlegalcounselorconsultant;–Determinewhatrecordstokeep;–Ascertainanyproductsupportrequirements,decidehoweachsupportwillbedelivered,andassi