Quản lí dự án - Chapter 8: Evaluating and terminating the project

Chapter 8Evaluating and Terminating the ProjectEvaluationAppraises the progress and performance of the project relative toThe initial or revised planThe goals and objectives set for it during the selection processProjects should be evaluated at key points in the project life cyclePurpose is to improve process of carrying out future projectsEvaluation CriteriaCriteria set by senior managementOriginal criteria for selecting and funding projectSuccess to-dateBusiness/direct successSuch as the level of commercial success for external projects and reduced throughput time for internal projects Contribution to organization’s goalsContribution to team member objectivesFour Important Dimensions of Project SuccessEfficiency in meeting the budget and scheduleCustomer impact/satisfactionBusiness/direct successFuture PotentialItems to Consider for Project Evaluation Report RecommendationsCommunication with the client and senior managementLocating opportunities for technological advancesReduction of indirect costs and direct costsImproving the project-management processIdentification of risks in the organization’s use of projectsUtilization of the skills resulting from project members’ work on projectsEmployment of general management experience gained by project managersImproving the organization’s use of projectsIncreasing the speed of obtaining results in projectsMeasurementMeasuring performance against planned budgets and schedules Relatively straightforwardMeasurement of actual expenditure and earned values More complicatedProject AuditingA special type of evaluation is the formal auditNot a financial auditBroader in scope and may deal with the whole or any part of the projectA thorough examination of the management of a project, its methodology and procedures, its records, properties, inventories, budgets, expenditures, progress, and so onBroader than the traditional management auditThe Audit ProcessThe timing of the audit depends on the purpose An audit can be conducted at three levels:General: usually constrained by time and cost and limited to project essentialsDetailed: initiated if the general audit finds something that needs further investigationTechnical: usually performed by a team with technical skillsTiming and Value of Project AuditsInitiationVery usefulTakes place earlyFeasibility studyVery useful, especially technical auditPreliminary plan/schedule budgetVery useful for setting measurement standardsMaster scheduleLess usefulFlexibility of team limitedTiming and Value of Project Audits ContinuedEvaluation of data by project teamMarginally usefulTeam defensiveImplementationMore or less usefulDepends on importance of project methodology to successful implementPost-projectMore or less usefulDepends on applicability to future projectsTypical Steps in a Project AuditFamiliarize the audit team with the requirements of the projectIncluding its basis for selection and any special charges by upper managementAudit the project on-siteWrite up the audit reportDistribute the reportTo Ensuring an Effective Audit The Audit Team MustHave free access to anyone with knowledge of the projectMake sure the project team is aware of the auditAvoid judgmental commentsUnderstand the politics of project teamConfirm all information (wherever possible) Understand that project team members rarely trust auditorsForm to Audit a Software Installation ProjectFigure 8-1The Audit ReportIntroductionDescription of project and its goalsCurrent statusComparison of work completed and plannedFuture project statusConclusions regarding project progressRecommendations for changes for subsequent projectsThe Audit Report ContinuedCritical management issuesIssues senior management should monitorRisk analysis and risk managementPotential for project failure and monetary lossFinal commentsCaveats, assumptions, limitationsProject TerminationEvery project is terminatedQuickly or slowlyReferred to as project closureWay it is handled may have an impact on the success of the projectWill have a major impact on residual attitudes toward the projectIn some industries the teams remain relatively intactIn other industries, project termination is similar to the breakup of a familyWhen to Terminate a ProjectIs the organization is willing to invest the time and cost required to complete the projectGiven its current status and expected outcomeAssumes sunk costs are irrelevantThe criteria commonly applied for deciding whether to terminate a project fall into two general categoriesThe degree to which the project has met its goalsThe degree to which the project qualifies against a set of success factorsFour Generic Factors Associated with Project FailureA project was not required for this task in the first placeInsufficient support from senior managementEspecially for unanticipated resourcesNaming the wrong project managerOften a person with excellent technical skills but weak managerial skillsPoor up-front planningFive Questions to Decide Which Projects to ContinueWhich projects have a legal or strategic imperative?Which projects are luxuries?Which projects are likely to drive future revenue and growth?Which projects best match our skill sets and strengths?What are the risks to the business if we do not service the project’s deliverables?8-11Types of Project TerminationProject ExtinctionProject activity suddenly stops because it has been successfully completed or has a high expectation of failure Termination-by-additionWhen an in-house project is successfully and is institutionalized as a new formal part of the organizationTermination-by-integrationThe output of the project becomes a standard part of the operating system of the sponsoring firm or the clientTermination-by-starvationOccurs when it is impolitic to terminate a project but it’s budget can be squeezed until it is a project in name onlyThe Termination ProcessDecision should be made by a broad based committee of senior managersProjects do not take kindly to being shut downShutting down an ongoing project is not a mechanistic processTermination process should be specified in project planA termination manager should be appointedProject PersonnelOne of the more difficult jobs is the reassignment of project personnelIn a functional organization, it usually entails a transfer back the parent departmentWhen a large project is shut down, team members may be laid offIn a pure project organization there may be more projects to which project personnel can be transferredThere is no “holding” area for personnelAs a result, layoffs are commonA WBS for a Termination ProjectFigure 8-3Main Duties of the Termination ManagerEnsure completion of the workNotify the client of project completionEnsure that documentation is completeClear all accounts and invoicingRedistribute personnel, material, equipmentClear project with legal counselSave records that need to be savedProject any support materialClose project booksThe Project Final ReportProject performanceWhat was achieved and reasons for resulting performanceAdministrative performanceReview of how well administrative practices workedOrganizational structureIdentify modifications to help future projectsProject teamworkTeam members who worked particularly well and very poorlyConfidential part of reportProject management techniquesRecommendations for improvements in future projectsCopyrightCopyright © 2014 John Wiley & Sons, Inc.All rights reserved. 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