Ch. 14 – Project Audit & ClosureCh. 14 – Project Audit & ClosureCh. 14 – Project Audit & ClosureCh. 14 – Project Audit & Closure

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Major Tasks of Project Audit/ClosureMajor Tasks of Project Audit/ClosureMajor Tasks of Project Audit/ClosureMajor Tasks of Project Audit/Closure

1. Evaluate if the project delivered the expected benefits to all stakeholders.

• Was the project managed well?

• Was the customer satisfied?

2. Assess what was done wrong and what contributed to successes.

3. Identify changes to improve the delivery of future projects.

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Project AuditProject AuditProject AuditProject Audit

• Step 1: Initiation and Staffing

• Step 2: Data Collection and Analysis

• Step 3: Reporting

Project Audit Report - ConsiderationsProject Audit Report - ConsiderationsProject Audit Report - ConsiderationsProject Audit Report - Considerations

• Actual vs. planned: Does the work actually completed match the planned level of completion?

• Schedule & nature of changes: Are significant schedule changes likely? If so, indicate the nature of changes.

• Progress of specific tasks: What progress has been made on tasks that could decide the success or failure of project?

• Potential of failure: What is the potential for project failure or monetary loss?

• Lessons learned: What lessons learned from the project being audited can be applied to other projects being undertaken by organization?

• Data assumptions: What assumptions or limitations affect data in audit?

Audit Life CycleAudit Life CycleAudit Life CycleAudit Life Cycle

Audit Initiation

Baseline Definition

Audit Database

Preliminary Analysis

Report Preparation

Termination

Audit Life Cycle - clarificationsAudit Life Cycle - clarificationsAudit Life Cycle - clarificationsAudit Life Cycle - clarifications

• Audit Initiation: identify purpose and scope of audit and determination of methodology. Team should have access to all records and reports.

• Baseline - performance standards• Database - accumulation of information• Preliminary Analysis - compares gathered information to

standards and judges project performance• Report preparation - preparing audit report and recommendations

for improvement• Termination - review of audit process and recommendations for

improvement

• Project audit is not like a financial audit - A financial audit is limited in scope and focuses of organization’s assets while a project audit is broader in scope and either deals with whole, partial, or individual component of project.

Project Closure and Review DeliverablesProject Closure and Review DeliverablesProject Closure and Review DeliverablesProject Closure and Review Deliverables

FIGURE 14.1

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The major wrap-up task is to ensure the project is approved and accepted by the customer.

Evaluation includes team, individual team members, and project manager performance.

Retrospectives of lessons learned are designed to improve performance on current and future projects.

Project ClosureProject ClosureProject ClosureProject Closure

• Types of Project Closure1. Normal: The most common circumstance for project closure is

simply a completed project.

2. Premature: For a few projects, the project may be completed early with some parts of the project eliminated.

3. Perpetual: Some projects never seem to end. The major characteristic of this kind of project is constant “add-ons,” suggesting a poorly conceived project scope.

4. Failed Project: Failed projects are usually easy to identify and easy for a review group to close down. However, every effort should be made to communicate the technical (or other) reasons for termination of the project;

5. Changed Priority: Organizations’ priorities often change and strategy shifts directions. Projects in process may need to be altered or canceled.

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Project ClosureProject ClosureProject ClosureProject Closure

• Close-out Plan: Questions to be Asked– What tasks are required to close the project?

– Who will be responsible for these tasks?

– When will closure begin and end?

– How will the project be delivered?

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Wrap-up Closure ChecklistWrap-up Closure ChecklistWrap-up Closure ChecklistWrap-up Closure Checklist

TABLE 14.1

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Implementing ClosedownImplementing ClosedownImplementing ClosedownImplementing Closedown

1. Getting delivery acceptance from the customer.

2. Shutting down resources and releasing to new uses.

3. Reassigning project team members.

4. Closing accounts and paying all bills.

5. Evaluating the project team, project team members, and the project manager.

6. Creating a final report.

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Creating the Final ReportCreating the Final ReportCreating the Final ReportCreating the Final Report

1. Executive Summary– Project goals met/unmet– Stakeholder satisfaction

with project– User reactions to quality

of deliverables

2. Analysis– Project mission and

objective – Procedures and

systems used– Organization resources

used

3. Recommendations– Technical improvements– Corrective actions

4. Lessons Learned– Reminders– Retrospectives

5. Appendix– Backup data– Critical information

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Project Performance EvaluationsProject Performance EvaluationsProject Performance EvaluationsProject Performance Evaluations

• Evaluation of performance is essential to encourage changes in behavior and to support individual career development and continuous improvement through organizational learning.

• Evaluation implies measurement against specific criteria.• Reasons for Poor-Quality Project Performance

Evaluations:

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• Evaluations of individuals are left to supervisors of the team member’s home department.

• Typically measure team performance only on time, cost, and specifications.

Pre-Evaluation Conditions: TeamPre-Evaluation Conditions: TeamPre-Evaluation Conditions: TeamPre-Evaluation Conditions: Team

1. Are standards and goals for measuring performance clear, challenging, and attainable? Lead to positive consequences?

2. Are responsibilities and performance standards known by all team members?

3. Are team rewards adequate? Management believes teams are important?

4. Is there a career path for successful project managers

5. Does the team have discretionary authority to manage short-term difficulties?

6. Is there a high level of trust within the organization culture?

7. Are there criteria beyond time, cost, and specifications?

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Sample Team Evaluation and Feedback SurveySample Team Evaluation and Feedback SurveySample Team Evaluation and Feedback SurveySample Team Evaluation and Feedback Survey

TABLE 14.2

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Conducting Performance Reviews - Conducting Performance Reviews - IndividualsIndividualsConducting Performance Reviews - Conducting Performance Reviews - IndividualsIndividuals

• Begin by asking the individual to evaluate his or her own performance.

• Avoid drawing comparisons with other team members; rather, assess the individual in terms of established standards and expectations.

• Focus criticism on specific behaviors rather than on the individual personally.

• Be consistent and fair in treatment of all team members.

• Treat the review as one point in an ongoing process.

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Project Performance Evaluation: IndividualProject Performance Evaluation: IndividualProject Performance Evaluation: IndividualProject Performance Evaluation: Individual

• Performance Assessment Responsibilities:• In Functional Organizations: The area manager may solicit the

project manager’s opinion of the individual’s performance on a specific project.

• Balanced matrix: the project manager and the area manager jointly evaluate an individual’s performance.

• Project matrix and project organizations: the project manager is responsible for appraising individual performance.

• In some matrix organizations, project managers conduct the performance reviews, while area managers are responsible for pay reviews.

• In other cases, performance reviews are part of the project closure process, and pay reviews are the primary objective of the annual performance appraisal. Other organizations avoid this dilemma by allocating only group rewards for project work and providing annual awards for individual performance.

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Individual Performance AssessmentIndividual Performance AssessmentIndividual Performance AssessmentIndividual Performance Assessment

• Multirater appraisal (“360-degree feedback)–Involves soliciting feedback concerning team

members’ performance from all of the peoplethat their work affects.

•Project managers, area managers, peers, subordinates, and customers.

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RetrospectivesRetrospectivesRetrospectivesRetrospectives

• Lessons Learned–An analysis carried out during and shortly after the

project life cycle to capture positive and negative project learning—“what worked and what didn’t?”

• Goals of Retrospectives–To reuse learned solutions–To stop repetitive mistakes

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A retrospective is a methodology that analyzes a past project event to determine what worked and what didn’t, develops lessons learned, and creates an action plan that ensures lessons learned are used to improve management of future projects.

Retrospectives (cont’d)Retrospectives (cont’d)Retrospectives (cont’d)Retrospectives (cont’d)

• Barriers to Organizational Learning–Lack of post-project time for developing lessons

–No post-project direction or support for teams

–Lessons become blame sessions

–Lessons are not applied in other locations

–Organizational culture does not recognize value of learning

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The Value of Retrospective AnalysesThe Value of Retrospective AnalysesThe Value of Retrospective AnalysesThe Value of Retrospective Analyses

• Making Retrospectives Effective:–Use an independent facilitator to guide the project

team through the analysis project activities.

–Include a minimum of three in-process learning gates (major milestones) during the life project cycle.

–Designate a team member as owner for each point in the retrospective.

–Develop an easy-to-use learning repository to ensure future utilization of retrospective lessons.

–Mandate use of retrospectives as part of the normal process for all projects.

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Characteristics of a FacilitatorCharacteristics of a FacilitatorCharacteristics of a FacilitatorCharacteristics of a Facilitator

1. No direct involvement or direct interest in the project.

2. Perceived as impartial and fair

3. Respect of senior management and other project stakeholders.

4. Willingness to listen.

5. Independence and authority to report results without fear of recriminations from special interests.

6. Perceived as having the best interests of the organization in making decisions.

7. Broad-based experience in the organization or industry.

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Initiating the Retrospective ReviewInitiating the Retrospective Review

• Have automatic times or points when reviews will take place. Avoid surprises.

• Conduct reviews carefully and with sensitivity

• Review staff must independent from the project.

• Review reports need to be used and accessible.

• Reviews support organizational culture

• Project closures should be planned and orderly.

• Certain “core conditions” must be in place to support team and individual evaluation.

• Conduct individual and team evaluations separate from pay or merit reviews.

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The Retrospectives ProcessThe Retrospectives ProcessThe Retrospectives ProcessThe Retrospectives Process

FIGURE 14.2

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