EVALUATION Evaluating, Auditing, and Terminating the Project

1. Chapter 8: Evaluating and Terminating the Project 1 Chapter 8 EVALUATION Evaluating, Auditing, and Terminating the Project

2. Chapter 8: Evaluating and Terminating the Project 2 Background Project evaluation Primary purpose – feedback to senior management Progress and performance relative to project’s initial or revised plan. Against goals and objectives set during selection process. Evaluate at crucial points. To improve project process Credible to both mgt and team

3. Chapter 8: Evaluating and Terminating the Project 3 Evaluation Criteria Original criteria for selecting and funding project Success to date Efficiency Customer satisfaction or impact Business/Direct Success Future Potential Contribution to Organization’s Goals Contribution to Team Member Objectives

4. Chapter 8: Evaluating and Terminating the Project 4 Measurement Measuring performance against planned budgets and schedules Straight forward, quantitative Earned value analysis more complicated Especially if dividing profits are involved

5. Chapter 8: Evaluating and Terminating the Project 5 PROJECT AUDITING

6. Chapter 8: Evaluating and Terminating the Project 6 The Audit Process Thorough examination of Management of project Methodology and procedures Records Property, budgets, expenditures, progress Timing depends on purpose Early – technical, (P) Later – budget, schedule Three Levels general audit – brief investigation detailed audit – something needs further flogging technical audit – special technical

7. Chapter 8: Evaluating and Terminating the Project 7 Steps in Project Audit Familiarize audit team with requirements of project Audit project on-site Write up audit report Distribute report

8. Chapter 8: Evaluating and Terminating the Project 8 Behavior Aspects Audit team must have free access to anyone with knowledge of the project Project team members rarely trust auditors ?Audit team must understand politics of project team Be senssssseeeetiiiiive BE CONSTRUCTIVE Information must be confirmed Don’t use otherwise Project team should be made aware of in-process audit No judgmental comments, stick to facts Do not speak out of turn

9. Chapter 8: Evaluating and Terminating the Project 9 The Audit Report Introduction description of project goals & objectives Current Status Budget, % completed, resources Future Project Status conclusions regarding project progress recommendations for changes projections

10. Chapter 8: Evaluating and Terminating the Project 10 The Audit Report continued Critical Management Issues issues senior management should monitor Risk Analysis and Risk Management potential for project failure and monetary loss note alternatives if any Final Comments caveats, assumptions, limitations

11. Chapter 8: Evaluating and Terminating the Project 11 PROEJCT TERMINATION

12. Chapter 8: Evaluating and Terminating the Project 12 When to Terminate a Project Sunk Cost Approach Additional return for current investment Two Other Criteria has project met its goals factors associated with success or failure

13. Chapter 8: Evaluating and Terminating the Project 13

14. Chapter 8: Evaluating and Terminating the Project 14 Types of Project Termination Project Extinction project activity suddenly stops either successfully completed or high expectation of failure Termination-By-Addition becomes a new formal part of organization Termination-By-Integration becomes standard part of operating systems

15. Chapter 8: Evaluating and Terminating the Project 15 Types of Project Termination continued Termination-By-Starvation a project in name only

16. Chapter 8: Evaluating and Terminating the Project 16 The Termination Process Decision made by broad based committee of senior managers Termination process should be specified in project plan Termination manager other than PM

17. Chapter 8: Evaluating and Terminating the Project 17 Figure 8-3 A Termination Project

18. Chapter 8: Evaluating and Terminating the Project 18 The Project Final Report Project Performance what was achieved and reasons for resulting performance Administrative Performance review of how well administrative practices worked Organizational Structure identify modifications to help future projects

19. Chapter 8: Evaluating and Terminating the Project 19 The Project Final Report continued Project Management Techniques recommendations for improvements in future projects