Question.2319 - Give two examples of why a project might be terminated early for cause and two examples of why a project might be terminated early for convenience. A project manager is in the finishing stage of her project. It is apparent that one of the project’s deliverables will not be completed before the project is wrapped up. What options does the project manager have for this uncompleted deliverable? The sponsor of a large multi-phased project you are managing suddenly decides to terminate the project early. How do you respond? How do you notify your team members?
Answer Below:
Project Termination for Cause: If a project consistently fails to meet milestones or violates legal obligations, it may be terminated early to prevent resource wastage. ? Failure to Meet Milestones or Deliverables: If a project consistently fails to meet its predetermined milestones or deliverables as outlined in the project plan, it may be terminated for cause. Delays or subpar performance can jeopardize the overall project's success and result in increased costs or missed opportunities. Termination in such cases may be necessary to prevent further wastage of resources and to redirect efforts towards more viable projects. ? Breach of Contract or Legal Violations: Project termination for cause can occur when there are clear violations of contractual agreements or legal obligations. If a party involved in the project fails to fulfill its contractual responsibilities, engages in fraudulent practices, or violates relevant laws and regulations, the project may be terminated early to protect the interests of all stakeholders and uphold legal compliance (Pritchard, 2004). Project Termination for Convenience: When strategic shifts, changes in priorities, or market/environmental factors make a project less viable, it might be terminated early to reallocate resources to more relevant initiatives (Pritchard, 2004). ? Strategic Shifts or Changes in Priorities: Sometimes, organizations undergo strategic shifts, changes in priorities, or restructuring that make certain projects less relevant or aligned with their objectives. In such cases, projects might be terminated for convenience to free up resources and redirect them towards initiatives that better align with the new strategic direction of the organization (Kloppenborg, 2012). ? Market or Environmental Changes: External factors like changes in the market, technological advancements, or unforeseen environmental conditions might render a project less viable or obsolete. If the project is no longer feasible due to these external circumstances, terminating it for convenience may be the most sensible decision to avoid unnecessary expenses and focus on more relevant projects. In both cases, termination decisions should be carefully considered, and stakeholders must assess the implications of ending the project early. Communication with all relevant parties, including project team members, stakeholders, and clients, is crucial to ensure a smooth transition and to minimize negative impacts on individuals and the organization as a whole (Pritchard, 2004). Reference Pritchard, C. L. (2004). Project Termination: The Good, the Bad, and the Ugly. Field Guide to Project Management, 503-520. Kloppenborg, T. J. (2012). Contemporary Project Management, 2e. South Western.More Articles From Project Management
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