Project Management in Practice ISV

Fourth Edition
8-1

Mantel, Meredith, Shafer, and Sutton

Prepared by
Scott M. Shafer,
Updated by
William E. Matthews and
Thomas G. Roberts,
William Paterson University

John Wiley and Sons, Inc.

Copyright 2011 John Wiley & Sons, Inc.

Project Evaluation
8-2

Assesses the progress and performance of

the project relative to (a) the goals and

objectives set for it during the selection
process and (b) the initial or revised plan
Projects should be evaluated at key points in
the project life cycle
Purpose is to improve process of carrying
out future projects
Copyright 2011 John Wiley & Sons, Inc.

Evaluation Criteria
8-3

Original criteria for selecting and funding

project
Success to-date
Business/direct success

such as the level of commercial success for external projects

and reduced throughput time for internal projects

Future potential
Contribution to organizations goals
Contribution to team member objectives
Copyright 2011 John Wiley & Sons, Inc.

Measurement of a
Projects Performance
8-4

Measuring performance against planned

budgets and schedules

relatively straightforward

Measurement of actual expenditure and

earned values

more complicated

Copyright 2011 John Wiley & Sons, Inc.

The Audit Process

8-5

The timing of the audit depends on the

purpose
An audit can be conducted at three

levels:

general
detailed
technical

Copyright 2011 John Wiley & Sons, Inc.

Steps in Completing a Project Audit

8-6

Familiarize audit team with the

requirements of the project

Conduct audit on site
Write up audit report
Distribute report

Copyright 2011 John Wiley & Sons, Inc.

Keys to Ensuring an Effective Audit

8-7

Audit team must

have free access to anyone with knowledge of the project

make sure the project team is aware of the audit
avoid judgmental comments
understand the politics of project team
confirm all information ( wherever possible)
understand that project team members rarely trust
auditors

Copyright 2011 John Wiley & Sons, Inc.

The Audit Report

8-8

Introduction

description of project and its goals

Current status

comparison of work completed and planned

Future project status

conclusions regarding project progress

recommendations for changes for subsequent projects

Copyright 2011 John Wiley & Sons, Inc.

The Audit Report, continued

8-9

Critical management issues

issues senior management should monitor

Risk analysis and risk management

potential for project failure and monetary loss

Final comments

Caveats (cautions), assumptions, limitations

Copyright 2011 John Wiley & Sons, Inc.

Determining Whether or Not to Terminate a

Project
8-10

Sunk cost - the extent to which the

organization is willing to invest the

additional time and cost required to
complete the project given the investment
already committed
The degree to which the project qualifies
against a set of factors associated with
success or failure
Copyright 2011 John Wiley & Sons, Inc.

Determining Whether or Not to Terminate a

Project, continued

Which projects have a legal or strategic vital?

Which projects are luxuries?
Which projects are likely to drive future revenue and

growth?
Which projects best match our skill sets and
strengths?
What are the risks to the business if we do not
service the projects deliverables?
Copyright 2011 John Wiley & Sons, Inc.

8-11

Types of Project Termination

8-12

Project Extinction (Death)

project activity suddenly stops because it has been

successfully completed or has a high expectation of failure

Termination-by-addition

when an in-house project is successfully and is

institutionalized as a new formal part of the organization

Termination-by-integration

the output of the project becomes a standard part of the

operating system of the sponsoring firm or the client

Termination-by-starvation

occurs when it is impolitic to terminate a project but its

budget can be squeezed until it is a project in name only

Copyright 2011 John Wiley & Sons, Inc.

The Termination Process

8-13

Decision should be made by a broad based

committee of senior managers

Termination process should be specified in
project plan
A termination manager should be appointed

Copyright 2011 John Wiley & Sons, Inc.

A WBS for a Termination Project

8-14

Copyright 2011 John Wiley & Sons, Inc.

The Project Final Report

8-15

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

Project management techniques

recommendations for improvements in future projects

Copyright 2011 John Wiley & Sons, Inc.

Copyright
8-16

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