In: Operations Management
What is the purpose of closing a project and discuss why we "close" projects that have failed? What role does the Project Management Office (PMO) play in the Closing process?
Purpose of closing the project
Every project has an objective that needs to be accomplished. Project closure is done to confirm the achievement of the objectives of the project and to ensure that it has been accepted by the client. It provides a sense of closure so the resources that are tied to the project can be released. This helps in improving future engagement with the client. Lessons are learned from the current client engagement which can be used knowledge to interact with the future client. By accomplishing the project objective and closing it, financial invoices can be raised to client and resources can be re-assigned to other projects. The team can be rewarded finally at the time of project closure. The team can be provided with gifts as a token of appreciation to motivate them for future engagements.
Reasons for closing the projects that have failed
It is mandatory for the firm to close its failed project. The objectives of the project can be achieved by steering into a different direction but the project incurs further loses if it is steered in the same direction. So, it is important for the organization to close the project and restart it with a different direction to accomplish the results. It is always risky to continue with the project that is failed because of the internal problems. It is required for the management to identify and solve the problem before taking the fresh start. It is not only about the cost and time involved in the project but also it affects the team.
Role of Project Management Office in the closing process
Close all the activities and tasks: PMO should close all the activities and tasks of the completed project and it should be confirmed with the project charter. Evaluate the project evaluation to ensure the project objective is attained is ready for closure.
Close the client: Ensure the acceptability of the project by the client and measure client satisfaction. Check whether the project result is the same as the output expected by the client.
Organizational closeout: Release all the resources associated with the project and return all the resources borrowed from different facilities of the organization. Finalize the financial budget of the project and compare the budget spent from the originally planned budget and prepares the report.
Subcontractor closeout: Make sure all the subcontractor associated with the project completed their tasks and their pay-outs are made.
Analyze the risk: Perform the risk assessment and prepare the strategies to handle the risks. Risks related to maintenance, training, transference, legal risk, etc. are identified.
Prepare project final closeout report: Prepare and deliver the final report on all the closure activities.
Conduct team closeout: Conduct the final session to share the experience and appreciate the team members involved in project success.