1. Project Termination: The Day the Project
Died
Project termination is one of the most serious decisions a project management team and its control
board have to take.
Every project has to officially end sometime. A project may be terminated for a variety of reasons,
including successful completion of the endeavor.
Project Termination Factors:
1. Low Probability
– Technical Objectives
– Commercial Viability
– ROI Achieved
2. No Solution
– Engineering Design
– Lasting Process
3. Intellectual Property Issues
Projext termination types:
there are two types of project termination – “natural termination” and “unnatural termination”
Natural Termination:
Natural termination” means that the aims of the project has been completed. successful
completion
Unnatural termination”
When the organization is no longer willing to invest the time and cost required to complete the
project

2. Varieties of Project Termination
There are various business, technical and political reasons to terminate a project. In this post I
will focus on the different ways to close or terminate a project. They are as follows,
Extinction
The project has successfully completed scope and the client has accepted it.
It has been superseded by the external developments like technological advancement,
market crisis etc
It has failed to achieve it’s goal.
It has no longer support from the Senior Management.
z The project may end because it has been successful and achieved its goals
z The project may also be stopped because it is unsuccessful or has been superseded
z A special case of termination by extinction is “termination by murder” which can range
from political assassination to accidental projecticide
Addition
The project is a major success. It becomes the formal part of the parent organization.
The transition or transfer of the resources such as the project personnel, materials and equipment
to the newly created unit within the parent organization
z If a project is a major success, it may be terminated by institutionalizing it as a
formal part of the parent organization
z Project personnel, property, and equipment are often simply transferred from
the dying project to the newly born division
The transition from project to division demands a superior level of political sensitivity
for successful accomplishment
Integration
The project is successfully completed. The project product is integrated to the operations
of the client.
This is the most common mode and most complex operation. The resources are released and
disturbuted in the parent organization

3. by Starvation
The project is terminated by budget decrement.
It is also known as withdrawal of “life support”.
The reason of this termination is generally to shadow the failure of non-accomplishment of the
goals. This can save face of the senior management and avoid embarrassment.
z If a project is a major success, it may be terminated by institutionalizing it as a formal
part of the parent organization
z Project personnel, property, and equipment are often simply transferred from the
dying project to the newly born division
The transition from project to division demands a superior level of political sensitivity for
successful accomplishment
When to Terminate a Project:
• Some questions to ask when considering termination:
– Has the project been obviated by technical advances?
– Is the output of the project still cost-effective?
– Is it time to integrate or add the project as a part of regular
operations?
– Are there better alternative uses for the funds, time and
personnel devoted to the project?
– Has a change in the environment altered the need for the
project’s output?
–

4. • Reasons projects fail:
– Project organization is not required
– Insufficient support from senior management
– Wrong person as project manager
– Poor planning
The Termination Process
• Components of termination process
– Whether or not to terminate
• Goal/Objective-based
or
• Qualification factors
– If terminate:
• Carry out termination procedures
• Planned
• Orderly
• Procedures vary