The Importance of Project Closeout and Review in Project Management.

DescriptionThe well known English phrase "last butmost important the people that will be invited.
not least" could not better describe how importantChoosing the right people for the review will enhance
the project closeout phase is. Being the very lastthe value of the meeting and help the learning
part of the project life-cycle it is often ignored evenprocess while having an objective critique not only by
by large organizations, especially when they operatethe team members but also from a neutral external
in multi-project environments. They tend to jumpauditor. The outcome of this review should be a final
from one project to another and rush into finishingreport which will be presented to the senior
each project because time is pressing and resourcesmanagement and the project sponsor. Whitten
are costly. Then projects keep failing and(2003) also notices that "often just preparing a
organizations take no corrective actions, simplyreview presentation forces a project team to think
because they do not have the time to think aboutthrough and solve many of the problems publicly
what went wrong and what should be fixed nextexposing the state of their work".5. Disband the
time. Lessons learned can be discussed at projectproject teamBefore reallocating the staff amongst
reviews as part of the closeout phase. Closure alsoother resources, closeout phase provides an excellent
deals with the final details of the project andopportunity to assess the effort, the commitment
provides a normal ending for all procedures, includingand the results of each team member individually.
the delivery of the final product. This paper identifiesExtra-ordinary performance should be complemented
the reasons that closeout is neglected, analyzes thein public and symbolic rewards could be granted for
best practices that could enhance its position withininnovation and creativity (Gannon, 1994). This process
the business environment and suggest additionalcan be vital for team satisfaction and can improve
steps for a complete project closeout throughcommitment for future projects (Reed, 2001).
continuous improvement.Project managers oftenReviewing a project can be in the form of a
know when to finish a projects but they forget howreflective process, as illustrated in the next figure,
to do it. They are so eager to complete a projectwhere project managers "record and critically reflect
that they hardly miss the completion indicators.upon their own work with the aim of improving their
"Ideally, the project ends when the project goal hasmanagement skills and performance" (Loo, 2002). It
been achieved and is ready to hand over tocan also be applied in problematic project teams in
customer" (Wellace et. al, 2004, p156). In times of bigorder to identify the roots of possible conflicts and
booms and bubbles, senior management could orderbring them into an open discussion.Ignoring the
the immediate termination of costly projects. Aestablished point of view of disbanding the project
characteristic example of that is Bangkok's overteam as soon as possible to avoid unnecessary
investment in construction of sky-scrapers, whereoverheads, Meredith and Mandel (2003, p660) imply
most of them left abandoned without finishing thethat it's best to wait as much as you can for two
last floors due to enormous costs (Tvede, 2001,main reasons. First it helps to minimize the frustration
p267). Projects heavily attached to time can bethat might generate a team member's reassignment
terminated before normal finishing point if they miss awith unfavourable prospects. Second it keeps the
critical deadline, such as an invitation to tender.interest and the professionalism of the team
Kerzner (2001, p594) adds some behavioural reasonsmembers high as it is common ground that during the
for early termination such as "poor morale, humanclosing stages, some slacking is likely to appear.6.
relations or labour productivity". The violent nature ofStakeholder satisfaction PMI's PMBoK (2004, p102)
early termination is also known as 'killing a project'defines that "actions and activities are necessary to
because it "involves serious career and economicconfirm that the project has met all the sponsor,
consequences" (Futrel, Shafer D & Shafer L, 2002,customer and other stakeholders' requirements". Such
1078). Killing a project can be a difficult decision sinceactions can be a final presentation of the project
emotional issues create pride within an organizationreview which includes all the important information
and a fear of being viewed as quitters blursthat should be published to the stakeholders. This
managerial decisions (Heerkens, 2002,information can include a timeline showing the
p229).RecognitionThe most direct reason that Projectprogress of the project from the beginning until the
Closeout phase is neglected is lack of resources, timeend, the milestones that were met or missed, the
and budget. Even though most of project-basedproblems encountered and a brief financial
organizations have a review process formally planned,presentation. A well prepared presentation which is
most of the times "given the pressure of work,focused on the strong aspects of the projects can
project team member found themselves beingcover some flaws from the stakeholders and make a
assigned to new projects as soon as a currentfailure look like an unexpected success.Next
project is completed" (Newell, 2004). Moreover, theStepsEven when the client accepts the delivery of
senior management often considers the cost ofthe final product or service with a formal sign-off
project closeout unnecessary. Sowards (2005) implies(Dvir, 2005), the closeout phase should not be seen
this added cost as an effort "in planning, holding andas an effort to get rid of a project. Instead, the key
documenting effective post project reviews". Heissue in this phase is "finding follow-up business
draws a parallel between reviews and investmentsdevelopment potential from the project deliverable"
because both require a start-up expenditure but they(Barkley & Saylor, 2001, p214). Thus, the project can
can also pay dividends in the future.Human natureproduce valuable customer partnerships that will
avoids accountability for serious defects. Therefore,expand the business opportunities of the organization.
members of project teams and especially the projectBeing the last phase, the project closeout plays a
manager who has the overall responsibility, willcrucial role in sponsor satisfaction since it is a
unsurprisingly avoid such a critique of their work ifcommon ground that the last impression is the one
they can. As Kerzner (2001, p110) observe,that eventually stays in people's mind.Continuous
"documenting successes is easy. Documentingimprovement is a notion that we often hear the last
mistakes is more troublesome because people do notdecade and review workshops should be involved in
want their names attached to mistakes for fear ofit. The idea behind this theory is that companies have
retribution". Thomset (2002, p260) compares projectto find new ways to sustain their competitive
reviews with the 'witch hunts' saying that they canadvantage in order to be amongst the market
be "one of the most political and cynical of allleaders. To do so, they must have a well-structured
organizational practices where the victims (theapproach to organizational learning which in
project manager and the team) are blamed by seniorproject-based corporations is materialized in the
management". While he identifies top management asproject review. Garratt (1987 in Kempster, 2005)
the main responsible party for a failure, Murray (2001)highlighted the significance of organizational learning
suggest that the project manager "must acceptsaying that "it is not a luxury, it is how organizations
ultimate responsibility, regardless of the factorsdiscover their future". Linking organizational learning
involved". A fair-minded stance on these differentwith Kerzner's (2001, p111) five factors for
viewpoints would evoke that the purpose of thecontinuous improvement we can a define a
project review is not to find a scapegoat but to learnstructured approach for understanding projects.This
from the mistakes. After all, "the only true projectapproach can be implemented in the closeout phase,
failures are those from which nothing is learned"with systematic reviews for each of the above
(Kerzner, 2004, p303).AnalysisWhen the project isfactors. Doing so, project closure could receive the
finished, the closeout phase must be implemented asattention it deserves and be a truly powerful method
planned. "A general rule is that project closing shouldfor continuous improvement within an organization.
take no more than 2% of the total effort requiredFinally, project closeout phase should be linked with
for the project" (Crawford, 2002, p163). The projectPMI's Organizational Project Management Maturity
management literature has many different sets of(OPM3) model where the lessons learned from one
actions for the last phase of the project life cycle.project are extremely valuable to other projects of
Maylor (2005, p345) groups the necessary activitiesthe same program in order to achieve the highest
into a six step procedure, which can differ dependingproject management maturity height.References1. A
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appropriate time and place for the workshops and