Project management

Project Termination

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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

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When Do Projects
Terminate?
Upon successful completion,
– or . . .

When the organization is no longer willing to invest

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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
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Decision Structure for a
Termination Decision, Figure 13-1

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Four Varieties of Project
Termination
1. “Termination by extinction”
– Project is completed
– Project has failed
– Changes in external environment
– Murder

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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

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Four Varieties of
Termination (cont’d)
4. “Termination by starvation”
– Withdrawal of “life support”

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Typical Termination
Activities
Seven categories of termination tasks.
Examples of activities:
– 1. Personnel

– 2. Operations/Logistics/Manufacturing
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Termination Activities
(cont’d)
3. Accounting and Finance
4. Engineering

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Termination Activities
(cont’d)
5. Information Systems
6. Marketing
7. Administrative
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A Design for Project Termination

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How do you know when to terminate?
Buell’s List

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Project History
Major aims of termination is “lessons learned” do that through a project history

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Critical success Factors
1.

Mission

2.

Top Mgmt support

3.

Schedule/Plan

4.

Client Consultation

5.

Personnel

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