The Project Management Life Cycle Part 4

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The Project Management Life Cycle Part 4196 5Project closure 5.1 INTRODUCTIONAt the end of the execution phase, all required deliverables will have been constructedand accepted by the customer as complete. The project should have achieved the objec-tives and delivered the business benefits described in the business case. The project canbe formally closed by undertaking the activities outlined in Figure 5.1. It is no real surprise that most projects simply close their doors at this point. Theyrelease their resources and move on to other projects or business initiatives. In doingthis, there is no formal review to determine whether the project actually achieved theobjectives and business benefits stated in the business case. There is no clear indicationof whether the project was a complete success or a marked failure. In the author’s experience, more than 90 per cent of projects undertaken fail to inde-pendently review the level of success after completion. The reason is simply that ittakes time and additional budget to formally close the project and review its level ofsuccess. Also, many project managers are averse to having their project reviewed by an Perform Review project project closure completionFigure 5.1 Project closure activities Project closure l 197external party to the project. This combined with the business expense incurred inseeking an independent review leads many businesses to overlook this phase andspend their budget on initiating other new project activities. If you can find the time and budget to complete this phase in its entirety, you will notonly ensure that your project is closed quickly and efficiently, but you will also gain thelearning needed to ensure that your next project is even more successful than the last. The following sections describe the activities required to perform project closure. 5.2 PERFORM PROJECT CLOSURETo initiate the closure of the project, a project closure report should first be created. Thisreport lists all of the closure activities and identifies the resource responsible for eachactivity listed. Following the approval of the report by the customer, the activities iden-tified are actually undertaken to close the project.Document a project closure reportA project closure report is a document which formalizes the closure of a project. Itprovides confirmation that the criteria for customer acceptance have been met andrequests sign-off from the project sponsor to close the project. A project closure reportincludes:• a detailed list of project completion criteria;• confirmation that all completion criteria have been met;• a list of outstanding business activities, risks and issues;• a set of actions to hand over project deliverables and documentation, terminate supplier agreements, release resources to the business and inform stakeholders of the closure;• A request for project closure approval.A project closure report is prepared at the start of the project closure phase by theproject manager and is submitted to the project sponsor for sign-off. Following sign-off,a suite of closure activities are undertaken to formally close out the project. The follow-ing sections describe how to create a project closure report, providing tables and real-life examples used for projects.Validate the project completionThis section confirms that the criteria required to complete the project have been metand that any outstanding items have been identified.198 l The project management life cycleCompletion criteriaThe first step towards initiating project closure is to confirm that the project completioncriteria have been achieved. List the project completion criteria in Table 5.1 and for eachcriterion listed, confirm whether or not it has been approved by the customer.Table 5.1 Completion criteriaCompletion Completion criterion Accepted by customercategoryObjectives The project vision has been achieved as defined in the terms Y/N of reference All project objectives have been achieved as defined in the terms of referenceBenefits The full benefits have been realized, as defined in the Y/N business caseDeliverables All deliverables have been completed as defined in the Y/N terms of reference All deliverables have been accepted by the customer, as per the acceptance plan… … …Outstanding itemsEven th ...