Closing

Project closure is more than simply ending a project. It should be a coordinated activity that includes a discussion of lessons learned, documentation of those lessons learned as well as a means for using that information and future projects, a closure of contracts, and the release of employees who had been involved in a project to go and do other work. It should be noted that some companies see project closure as something that occurs at transition or milestone points, such as when a phase of construction is complete. In all cases, project closure should occur at final acceptance of product and when all financial obligations closed.

Project Termination

Project termination is sometimes also called project close-out or final shutdown. During this phase the people involved are acknowledged for their achieved goals and the work is considered complete.

First lets look at what a successful project is:

• The objectives of the project have been achieved to the full satisfaction of the users,
• All closeout activities have been completed, and
• All designated interests, including the project's sponsor and/or initiator officially accept the project results or products and close the project." (Wideman, n.d.)

Now let's consider why a project should be terminated. Projects usually are terminated for two basic reasons: project success or project failure. Senior managers must create a cultural setting that encourages projects to be successful, but also allows a project to fail if it has lost its strategic fit in the organization’s plans for the future. All project terminations don't necessarily mean the project ended successfully. Either way though, there are some steps that should be taken.

Steps to take in termination

• Finalize all outstanding contracts to vendors, suppliers or customers including final payments (in some cases, according to federal regulations, project-related revenue that is earned on or before project termination is considered program income. If it is earned after project termination, it is an external sale.)
• Transfer any responsibilities necessary
• Reassign the project team members to other duties
• Release all remaining resources such as materials
• Complete the final accounting on the project such as totally final costs, paying bills, etc so you can "close the book"
• Document the results of the project and make recommendations for future projects (opportunity for learning and anticipating new risks)
• Presentation of the system and approval (or rejection) of the system by the client according to acceptance criteria set forth in the Project Agreement
• Installation and field testing as applicable

References

Wideman, M. (n.d.). Wideman Comparative Glossary of Project Management Terms v3.1. Retrieved September 1, 2003, from http://www.maxwideman.com/pmglossary/PMG_O01.htm