Types of Project Closure On some projects the end may not be as clear as would be hoped. Although the scope statement may define a clear ending for a project, the actual ending may or may not correspond. Fortunately, a majority of projects are blessed with a well-defined ending. Regular project reviews will identify projects having endings different from plans. The different types of closure are identified here:
Normal The most common circumstance for project closure is simply a completed project. For many development projects, the end involves handing off the final design to production and the creation of a new product or service line. For other internal IT projects, such as system upgrades or creation of new inventory control systems, the end occurs when the output is incorporated into ongoing operations. Some modifications in scope, cost, and schedule probably occurred during implementation.
Premature For a few projects, the project may be completed early with some parts of the project eliminated. For example, in a new product development project, a marketing manager may insist on production models before testing:
Give the new product to me now, the way it is. Early entry into the market will mean big profits! I know we can sell a bazillion of these. If we don't do it now, the opportunity is lost!
The pressure is on to finish the project and send it to production. Before succumbing to this form of pressure, the implications and risks associated with this decision should be carefully reviewed and assessed by senior management and all stakeholders. Too frequently, the benefits are illusory, dangerous, and carry large risks.
Perpetual Some projects never seem to end. The major characteristic of this kind of project is constant “add- ons,” suggesting a poorly conceived project scope. At some point the review group should recommend methods for bringing final closure to this type of project or the initiation of another project. For example, adding a new feature to an old project could replace a segment of a project that appears to be perpetual.
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SNAPSHOT FROM PRACTICE Project Canceled*
Germany is the major crossroad for Europe's international commercial trucks. The German government felt the need to have international trucks (over 12 tons) using their road infrastructure assist in paying for the road maintenance and additional new infrastructure. The project objectives were clear—a new electronic truck toll-collection system that ensures accurate charges and easy fee collection across German, Swiss, and Austrian highways by August 31, 2003. The technology relied on global positioning systems (GPS), telecommunications, and software to record miles and charges, without using toll booths along the highways.
Several problems sabotaged the project. Time-to-market deadlines were impossible to meet. Delayed launch dates were caused by technical problems with truck tracking units and software that failed to function as expected. Interface communication with public and private stakeholders failed. As a result, the August 2003 deadline was never met. The revised November 2003 deadline was not met. Finally, in March 2004 the German government pulled the plug and canceled the project.
The cancellation of the project had serious impacts on other governmental programs. The shortfall of not receiving the revenue from the new toll system is estimated at $1.6 billion. Some of those revenues were destined for a high- speed maglev train in Munich and other infrastructure projects.
Lessons learned reveal that lack of project management knowledge was evident. More importantly, failure to identify and assess the impact of schedule and complex technology risks resulted in the death of the project. Perhaps a simpler, cheaper microwave system recommended by the Swiss and Austrians to be operational by 2005 would have sufficed. See http://www.tollcollect.de/frontend/HomepageVP.do:Jsessionid-F840E12142D.
* “Case Analysis: Taking a Toll,” PM Network, Vol. 18, No. 3, March, 2004, p. 1.
Failed Project Failed projects are usually easy to identify and easy for a review group to close down. However, every effort should be made to communicate the technical (or other) reasons for termination of the project; in any event project participants should not be left with an embarrassing stigma of working on a project that failed. Many projects will fail because of circumstances beyond the control of the project team. See Snapshot from Practice: Project Canceled.