Mgt 609 Project Management Fundamentals Chapter 13 Project

Mgt 609 – Project Management Fundamentals Chapter 13 – Project Termination Dr. Alan C. Maltz Howe School of Technology Management Stevens Institute of Technology Alan. Maltz@stevens. edu

MODULE 13: PROJECT TERMINATION Purpose: give students an overview of project termination. 2 © Alan C. Maltz, Ph. D, 2014

Module 13 Objectives Methods of Termination Explain the 4 methods of discharging a contract Explain the methods for terminating a project Discuss the differences when the project represents a political agreement rather than a legal contract 3 © Alan C. Maltz, Ph. D, 2014

Discharging a Contract Four methods of discharge are Execution Promises are performed Breach Promises are broken Recourse may be available to injured party Rescission Parties agree to cancel the contract Operation of Law changes and invalidates the contract Business Law, Barron’s Business Review Series, 3 rd Edition. 4 © Alan C. Maltz, Ph. D, 2014

Political Agreement or Contracts Contract Enforcement Provides right to recourse Formalizes meeting of the minds regarding allocations of risks and resources in performance of promises Parties must follow procedural law to sustain substantive rights during legal proceedings Political Agreement Enforcement No right to recourse under contract law Requires understanding of BATNA, power and influence 5 © Alan C. Maltz, Ph. D, 2014

Varieties of Project Termination A project can be said to be terminated when work on substance of project has ceased or slowed to point that further progress is no longer possible Four ways to close out a project: Extinction Addition Integration Starvation M&M Text, Ch 13 6 © Alan C. Maltz, Ph. D, 2014

Termination by Extinction Project may end because it has been successful and achieved its goals Project may be stopped because it is unsuccessful or has been superseded Termination by murder can range from political assassination accidental projecticide M&M Text, Ch 13 7 © Alan C. Maltz, Ph. D, 2014

Termination by Extinction Two important characteristics of termination by murder are suddenness of project demise lack of obvious signals that death is imminent When a decision is made to terminate a project by extinction, the most noticeable event is that all activity on substance of project ceases M&M Text, Ch 13 8 © Alan C. Maltz, Ph. D, 2014

Termination by Addition If project is major success, it may be terminated by institutionalizing it as formal part of parent organization Project personnel, property, and equipment are often simply transferred from dying project to newly born division Transition from project to division demands a superior level of political sensitivity for successful accomplishment M&M Text, Ch 13 9 © Alan C. Maltz, Ph. D, 2014

Termination by Integration The most common and complex way of dealing with successful projects Property, equipment, material, personnel, and functions of project are distributed among existing elements of parent organization M&M Text, Ch 13 10 © Alan C. Maltz, Ph. D, 2014

Termination by Integration Problems of integration are inversely related to level of experience that parent or client has had with: Technology being integrated Successful integration of other projects, regardless of technology M&M Text, Ch 13 11 © Alan C. Maltz, Ph. D, 2014

Termination by Integration Aspects of transition from project to integrated operation that should be considered include: Personnel – Where will team go? Manufacturing – Is training complete? Accounting/Finance – Have project’s account been closed and audited? Engineering – Are all drawings complete and on file? Information Systems/Software – Has new system been thoroughly tested? Marketing – Is sales department aware of change? M&M Text, Ch 13 12 © Alan C. Maltz, Ph. D, 2014

Termination by Starvation Slow starvation by budget decrement Reasons why senior management does not wish to terminate an unsuccessful or obsolete project include: Politically dangerous to admit that one has championed a failure Terminating a project that has not accomplished its goals is an admission of failure M&M Text, Ch 13 13 © Alan C. Maltz, Ph. D, 2014

Module 13 Objectives Termination Process Discuss the final project report and creation of a project archive Discuss the characteristics of an effective project termination Discuss the human side of project termination 14 © Alan C. Maltz, Ph. D, 2014

Project Termination WBS Figure 13 -2 M&M Text, Ch 13 15 © Alan C. Maltz, Ph. D, 2014

Termination Manager Duties Ensure completion of work, including tasks performed by subcontractors Notify client of project completion and ensure that delivery is accomplished Ensure that documentation is complete including terminal evaluation of project deliverables preparation of project’s Final Report Clear for final billings Oversee preparation of final invoices sent to client M&M Text, Ch 13 16 © Alan C. Maltz, Ph. D, 2014

Termination Manager Duties Redistribute Personnel Materials Equipment Other resources Clear project with legal counsel or consultant Determine what records to keep Identify product support requirements, Decide how each support will be delivered Assign responsibility Oversee closing of project’s books M&M Text, Ch 13 17 © Alan C. Maltz, Ph. D, 2014

The Final Report - A Project History Final report is the history of project It is chronicle of life and times of project What went right What went wrong Required information is contained in Master plan All project audits and evaluations M&M Text, Ch 13 18 © Alan C. Maltz, Ph. D, 2014

The Final Report Subjects in final report include: Project performance Administrative performance Organizational structure Project and administrative teams Techniques of project management M&M Text, Ch 13 19 © Alan C. Maltz, Ph. D, 2014

Thank You - Questions? Alan C. Maltz, Ph. D. Howe School of Technology Management Stevens Institute of Technology Castle Point on the Hudson Hoboken, NJ 07030 Phone: +1 (561) 632 -4848 E-mail: alan. maltz@stevens. edu Web: http: //www. stevens. edu/ 20 © Alan C. Maltz, Ph. D, 2014