The Importance of Project Closeout and Review in Project Management.

DescriptionThe well known English phrase "last but notmost important the people that will be invited. Choosing
least" could not better describe how important thethe right people for the review will enhance the value
project closeout phase is. Being the very last part ofof the meeting and help the learning process while
the project life-cycle it is often ignored even by largehaving an objective critique not only by the team
organizations, especially when they operate inmembers but also from a neutral external auditor. The
multi-project environments. They tend to jump fromoutcome of this review should be a final report which
one project to another and rush into finishing eachwill be presented to the senior management and the
project because time is pressing and resources areproject sponsor. Whitten (2003) also notices that
costly. Then projects keep failing and organizations"often just preparing a review presentation forces a
take no corrective actions, simply because they do notproject team to think through and solve many of the
have the time to think about what went wrong andproblems publicly exposing the state of their work".5.
what should be fixed next time. Lessons learned canDisband the project teamBefore reallocating the staff
be discussed at project reviews as part of theamongst other resources, closeout phase provides an
closeout phase. Closure also deals with the final detailsexcellent opportunity to assess the effort, the
of the project and provides a normal ending for allcommitment and the results of each team member
procedures, including the delivery of the final product.individually. Extra-ordinary performance should be
This paper identifies the reasons that closeout iscomplemented in public and symbolic rewards could be
neglected, analyzes the best practices that couldgranted for innovation and creativity (Gannon, 1994).
enhance its position within the business environmentThis process can be vital for team satisfaction and
and suggest additional steps for a complete projectcan improve commitment for future projects (Reed,
closeout through continuous improvement.Project2001). Reviewing a project can be in the form of a
managers often know when to finish a projects butreflective process, as illustrated in the next figure,
they forget how to do it. They are so eager towhere project managers "record and critically reflect
complete a project that they hardly miss theupon their own work with the aim of improving their
completion indicators. "Ideally, the project ends whenmanagement skills and performance" (Loo, 2002). It
the project goal has been achieved and is ready tocan also be applied in problematic project teams in
hand over to customer" (Wellace et. al, 2004, p156). Inorder to identify the roots of possible conflicts and
times of big booms and bubbles, senior managementbring them into an open discussion.Ignoring the
could order the immediate termination of costlyestablished point of view of disbanding the project
projects. A characteristic example of that is Bangkok'steam as soon as possible to avoid unnecessary
over investment in construction of sky-scrapers,overheads, Meredith and Mandel (2003, p660) imply
where most of them left abandoned without finishingthat it's best to wait as much as you can for two main
the last floors due to enormous costs (Tvede, 2001,reasons. First it helps to minimize the frustration that
p267). Projects heavily attached to time can bemight generate a team member's reassignment with
terminated before normal finishing point if they miss aunfavourable prospects. Second it keeps the interest
critical deadline, such as an invitation to tender. Kerznerand the professionalism of the team members high as
(2001, p594) adds some behavioural reasons for earlyit is common ground that during the closing stages,
termination such as "poor morale, human relations orsome slacking is likely to appear.6. Stakeholder
labour productivity". The violent nature of earlysatisfaction PMI's PMBoK (2004, p102) defines that
termination is also known as 'killing a project' because it"actions and activities are necessary to confirm that
"involves serious career and economic consequences"the project has met all the sponsor, customer and
(Futrel, Shafer D & Shafer L, 2002, 1078). Killing aother stakeholders' requirements". Such actions can be
project can be a difficult decision since emotionala final presentation of the project review which
issues create pride within an organization and a fear ofincludes all the important information that should be
being viewed as quitters blurs managerial decisionspublished to the stakeholders. This information can
(Heerkens, 2002, p229).RecognitionThe most directinclude a timeline showing the progress of the project
reason that Project Closeout phase is neglected isfrom the beginning until the end, the milestones that
lack of resources, time and budget. Even though mostwere met or missed, the problems encountered and a
of project-based organizations have a review processbrief financial presentation. A well prepared
formally planned, most of the times "given the pressurepresentation which is focused on the strong aspects
of work, project team member found themselvesof the projects can cover some flaws from the
being assigned to new projects as soon as a currentstakeholders and make a failure look like an
project is completed" (Newell, 2004). Moreover, theunexpected success.Next StepsEven when the client
senior management often considers the cost ofaccepts the delivery of the final product or service
project closeout unnecessary. Sowards (2005) implieswith a formal sign-off (Dvir, 2005), the closeout phase
this added cost as an effort "in planning, holding andshould not be seen as an effort to get rid of a project.
documenting effective post project reviews". HeInstead, the key issue in this phase is "finding follow-up
draws a parallel between reviews and investmentsbusiness development potential from the project
because both require a start-up expenditure but theydeliverable" (Barkley & Saylor, 2001, p214). Thus, the
can also pay dividends in the future.Human natureproject can produce valuable customer partnerships
avoids accountability for serious defects. Therefore,that will expand the business opportunities of the
members of project teams and especially the projectorganization. Being the last phase, the project closeout
manager who has the overall responsibility, willplays a crucial role in sponsor satisfaction since it is a
unsurprisingly avoid such a critique of their work if theycommon ground that the last impression is the one that
can. As Kerzner (2001, p110) observe, "documentingeventually stays in people's mind.Continuous
successes is easy. Documenting mistakes is moreimprovement is a notion that we often hear the last
troublesome because people do not want their namesdecade and review workshops should be involved in it.
attached to mistakes for fear of retribution". ThomsetThe idea behind this theory is that companies have to
(2002, p260) compares project reviews with the 'witchfind new ways to sustain their competitive advantage
hunts' saying that they can be "one of the most politicalin order to be amongst the market leaders. To do so,
and cynical of all organizational practices where thethey must have a well-structured approach to
victims (the project manager and the team) areorganizational learning which in project-based
blamed by senior management". While he identifies topcorporations is materialized in the project review.
management as the main responsible party for aGarratt (1987 in Kempster, 2005) highlighted the
failure, Murray (2001) suggest that the project managersignificance of organizational learning saying that "it is
"must accept ultimate responsibility, regardless of thenot a luxury, it is how organizations discover their
factors involved". A fair-minded stance on thesefuture". Linking organizational learning with Kerzner's
different viewpoints would evoke that the purpose of(2001, p111) five factors for continuous improvement
the project review is not to find a scapegoat but towe can a define a structured approach for
learn from the mistakes. After all, "the only true projectunderstanding projects.This approach can be
failures are those from which nothing is learned"implemented in the closeout phase, with systematic
(Kerzner, 2004, p303).AnalysisWhen the project isreviews for each of the above factors. Doing so,
finished, the closeout phase must be implemented asproject closure could receive the attention it deserves
planned. "A general rule is that project closing shouldand be a truly powerful method for continuous
take no more than 2% of the total effort required forimprovement within an organization. Finally, project
the project" (Crawford, 2002, p163). The projectcloseout phase should be linked with PMI's
management literature has many different sets ofOrganizational Project Management Maturity (OPM3)
actions for the last phase of the project life cycle.model where the lessons learned from one project
Maylor (2005, p345) groups the necessary activitiesare extremely valuable to other projects of the same
into a six step procedure, which can differ dependingprogram in order to achieve the highest project
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