TOPIC 8:

PROJECT AUDIT AND CLOSURE

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 1

CONTENTS

1. Project closure

2. Project audit

3. Post-implementation Evaluation

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 2

Instructor: Dr. Nguyen Thi Duc Nguyen 1

 Project Closure and Review Deliverables

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 3

PROJECT CLOSURE

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Instructor: Dr. Nguyen Thi Duc Nguyen 2

 Project Closure

Conditions for Closure Close-out Plan:

/Types of Project Closure Questions to be Asked
Normal What tasks are required to
Premature close the project?
Perpetual Who will be responsible
for these tasks?
Failed Project
When will closure begin
Changed Priority
and end?
How will the project be
delivered?

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 5

Wrap-up Closure Checklist

TASK Completed?
Yes/No
Team
1 Has a schedule for reducing project staff been developed and accepted?
2 Has staff been released or notified of new assignments?
3 Have performance reviews for team members been conducted?
4 Has staff been offered outplacement services and career counseling activities?
Vendors/Contractors
5 Have performance reviews for all vendors been conducted?
6 Have project accounts been finalized and all billing closed?
Customer/Users
7 Has the customer signed off on the delivered product?
8 Have an in-depth project review and evaluation interview with the customer
been conducted?
9 Have the users been interviewed to assess their satisfaction with the
deliverables? With the project team? With vendors? With training? With
support? With maintenance?
Equipment and Facilities
10 Have project resources been transferred to other projects?
11 Have rental or lease equipment agreements been closed out?
12 Has the date for the closure review been set and stakeholders notified?
Attach comments or links on any tasks you feel need explanation.
Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Instructor: Dr. Nguyen Thi Duc Nguyen 3

 Project Closure Checklist
Item Status Comments/Plan
to Resolve
1 Have all the product or service deliverables been accepted by the customer?
1.1 Are there contingencies or conditions related to the acceptance? If so, describe in the Comments.
2 Has the project been evaluated against each performance goal established in the project performance plan?
3 Has the actual cost of the project been tallied and compared to the approved cost baseline?
3.1 Have all approved changes to the cost baseline been identified and their impact on the project
documented?
4 Have the actual milestone completion dates been compared to the approved schedule?
4.1 Have all approved changes to the schedule baseline been identified and their impact on the project
documented?
5 Have all approved changes to the project scope been identified and their impact on the performance, cost,
and schedule baselines documented?
6 Has operations management formally accepted responsibility for operating and maintaining the product(s)
or service(s) delivered by the project?
6.1 Has the documentation relating to operation and maintenance of the product(s) or service(s) been delivered
to, and accepted by, operations management?
6.2 Has training and knowledge transfer of the operations organization been completed?
6.3 Does the projected annual cost to operate and maintain the product(s) or service(s) differ from the estimate
provided in the project proposal? If so, note and explain the difference in the Comments column.
7 Have the resources used by the project been transferred to other units within the organization?
8 Has the project documentation been archived or otherwise disposed of as described in the project plan?
9 Have the lessons learned been documented in accordance with the Commonwealth Project Management
guideline?
10 Has the date for the post-implementation review been set?
10.1 Has the person or unit responsible for conducting the post-implementation review been identified?

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Barriers to Project Success

Activity* Barrier Incidence (%)

Planning Unclear definition 16% *To interpret the
32% Poor decision making 9
Bad information 3
table, note that
Changes 4
32 percent of
Scheduling Tight schedule 4
12% Not meeting schedule 5 the 1,654
Not managing schedule 3
Organizing Lack of responsibility or accountability 5 participants
11% Weak project manager 5
Top management interference 1 reported the
Staffing Inadequate personnel 5
12% Incompetent project manager 4 barriers under
Project member turnover 2
Poor staffing process 1 “Planning,” 12
Directing Poor coordination 9
26% Poor communication 6 percent reported
Poor leadership 5
Low commitment 6
the barriers
Controlling Poor follow-up 3
under
7% Poor monitoring 2
No control system 1
“Scheduling,”
No recognition of problems 1

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT and so on. 8

Instructor: Dr. Nguyen Thi Duc Nguyen 4

 Implementing Closedown
(Wrap-up Closure Activities)

Getting delivery acceptance from the customer.

Shutting down resources and releasing to new uses.

Reassigning project team members.

Closing accounts and seeing all bills are paid.

Evaluating the project team, project team members,

and the project manager.

Creating a final report.

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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PROJECT AUDIT

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Instructor: Dr. Nguyen Thi Duc Nguyen 5

 Project Audits

1. Use performance measures and forecast data.

2. Examine project success and review why the
project was selected.
3. Include a reassessment of the project’s role in
the organization’s priorities.
4. Include a check on the organizational culture to
ensure it facilitates the type of project being
implemented.
5. Can be performed while a project is in process
or after a project is completed.

Major Tasks of a Project Audit

Evaluate if the project

delivered the expected
benefits to all
stakeholders.
Assess what was done
Was the project wrong and what
managed well? contributed to successes.
Was the customer
satisfied?

Identify changes to
improve the delivery of
future projects.

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Instructor: Dr. Nguyen Thi Duc Nguyen 6

 Types of Project Audits
In-process project audits
Post-project audits
Allow for corrective
Take a broader and longer-term
changes if conditions have
view of the project’s role in the
changed and for
organization and emphasize
concentration on project
improving the management of
progress and performance.
future projects.

Post-project audits include

In-process project audits
more detail and depth than in-
perform early in projects to allow
process project audits and
for corrective changes and
emphasize on improving the
concentrate on project progress
management of future projects.
and performance.
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Guidelines for Conducting a Project Audit

1. The philosophy must be that the project audit is not a witch hunt.

2. Comments about individuals or groups participating in the project

should be minimized.

3. Audit activities should be sensitive to human emotions and reactions.

4. The accuracy of data should be verifiable.

5. Senior management should announce support for the project audit.

6. The objective of project audits is not to prosecute but to learn and

conserve valuable organizational resources where mistakes have
been made.

7. The audit should be completed as quickly as is reasonable.

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Instructor: Dr. Nguyen Thi Duc Nguyen 7

 A review of why the project was selected.

A reassessment of the project’s role in the

organization’s priorities.

A check on the organizational culture to

ensure it facilitates the type of project being
implemented.
Project Audit
An assessment of how well the project team is
Components functioning well and if its is appropriately
staffed.

A check on external factors that might change

where the project is heading or its importance.

A review of all factors relevant to the project

and to managing future projects.

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Factors Influencing Audit Depth and Detail

Organization size

Project type

Project size

Project importance

Project risk

Project problems
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Instructor: Dr. Nguyen Thi Duc Nguyen 8

 The Project Audit Process

Step 1: Initiation and Staffing

• Initiation of the audit process depends primarily on organization

and project size.

• The outcome must represent an independent, outside view of the

project.

Step 2: Data Collection and Analysis

• Information and data are gathered to answer questions from both

organization view and project team view.

Step 3: Reporting

• The report attempts to capture needed changes and lessons

learned from a current or finished project.
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Characteristics of Audit Leaders

No direct involvement or direct interest in the project.

Respect (perceived as impartial and fair) of senior

management and other project stakeholders.

Willingness to listen.

Independence and authority to report audit results

without fear of recriminations from special interests.

Perceived as having the best interests of the organization

in making decisions.

Broad-based experience in the organization or industry. 18

Instructor: Dr. Nguyen Thi Duc Nguyen 9

 Key Points in Conducting Audits

Have automatic times or points when audits will take place. Surprises
should be avoided.

Conduct audits carefully and with sensitivity

Audit staff must independent from the project.

Audit reports need to be used and accessible.

Audits 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. 19

Step 2: Data Collection and Analysis

Organization View Project Team View
Was the organizational culture supportive and Were the project planning and control
correct? systems appropriate for this type of

Was senior management’s support adequate? project?

Did the project accomplish its intended Should all similar projects use these

purpose? systems?

Were risks appropriately identified and Did the project conform to plan for budget

assessed? and schedule?

Were the right people and talents assigned? Were interfaces with stakeholders
effective?
Have staff been fairly reassigned to new
projects? Have staff been fairly assigned to new
projects?
What does evaluation from contractors
Did the team have adequate resources?
suggest?
Were there resource conflicts?
Were the project start-up and hand-off
Was the team managed well?
successful?
What does evaluation from contractors
Is the customer satisfied?
suggest? 20

Instructor: Dr. Nguyen Thi Duc Nguyen 10

 Step 3: Reporting

1. Classification 3. Recommendations
• Project type • Corrective actions
• Size • Technical improvements
• Number of staff 4. Lessons learned
• Technology level • Reminders of mistakes
• Strategic or support • Retrospectives
2. Analysis 5. Appendix
• Scope objectives • Backup data
• Quality objectives • Critical, pertinent
• Cost objectives information
• Schedule objectives
• Summary of risks
• Outcomes achieved
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Project Retrospectives

Retrospectives denote specific efforts at identifying lessons

learned on projects. An independent, trained facilitator acts as a
guide who
• Leads the project team through an analysis of project activities.
• Uses several questionnaires focusing on project operations and
on how the organization’s culture impacted project success or
failure.
• Visits one-on-one with project team members, the project
manager, and other stakeholders to dive deeper into cause-
effect impacts.
• Leads a team retrospective session.
• Works with the team to develop a system to prioritize
information for different recipients.
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Instructor: Dr. Nguyen Thi Duc Nguyen 11

 Project Process Review Questionnaire

Item Comments
1. Were the project objectives and strategic intent of the project clearly and explicitly
communicated?
2. Were the objectives and strategy in alignment?
3. Were the stakeholders identified and included in the planning?
4. Were project resources adequate for this project?
5. Were people with the right skill sets assigned to this project?
6. Were time estimates reasonable and achievable?
7. Were the risks for the project appropriately identified and assessed before the project started?
8. Were the processes and practices appropriate for this type of project? Should projects of
similar size and type use these systems? Why/why not?
9. Did outside contractors perform as expected? Explain.
10. Were communication methods appropriate and adequate among all stakeholders? Explain.
11. Is the customer satisfied with the project product?
12. Are the customers using the project deliverables as intended? Are they satisfied?
13. Were the project objectives met?
14. Are the stakeholders satisfied their strategic intents have been met?
15. Has the customer or sponsor accepted a formal statement that the terms of the project charter
and scope have been met?
16. Were schedule, budget, and scope standards met?
17. Is there any one important area that needs to be reviewed and improved upon? Can you
identify the cause?
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Organizational Culture Review Questionnaire

Item Comments
1. Was the organizational culture supportive for this type of project?

2. Was senior management support adequate?

3. Were people with the right skills assigned to this project?
4. Did the project office help or hinder management of the project? Explain.
5. Did the team have access to organizational resources (people, funds,
equipment)?
6. Was training for this project adequate? Explain.
7. Were lessons learned from earlier projects useful? Why? Where?

8. Did the project have a clear link to organizational objectives? Explain.

9. Was project staff properly reassigned?

10. Was the Human Resources Office helpful in finding new assignments?
Comment.

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Instructor: Dr. Nguyen Thi Duc Nguyen 12

 Project Audits: The Big Picture

1. The purposes of all maturity models are to enable

organizations to assess their progress in implementing
the best practices in their industry and move to
improvement.
2. A project maturity model yields a more encompassing
look from an organization-wide point of view.
3. The latest version of the project maturity model
developed by the Project Management Institute is called
OPM3.
4. OPM3 is divided into a continuum of growth levels: Initial,
Repeatable, Defined, Managed, and Optimized.

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Project Management Maturity Model

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Instructor: Dr. Nguyen Thi Duc Nguyen 13

 POST-IMPLEMENTATION
EVALUATION

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Post-implementation Evaluation

1. The purpose of project evaluation is to assess how well

the project team, team members, and project manager
performed.

2. Evaluation implies measurement against specific criteria.

Team evaluation

Individual, team member, and project manager

performance reviews

Individual reviews
Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 28

Instructor: Dr. Nguyen Thi Duc Nguyen 14

 Project Performance Evaluations

1. Reasons for Poor-Quality Project Performance

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

Typical measures of team performance center on time, cost,

and specifications.

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Individual, Team Member, and Project

Manager Performance Review
Performance Assessment Responsibilities
• Functional organization: the individual’s area manager
• Balanced matrix: the project manager and the area manager jointly
• Project matrix and project organizations: the project manager
Performance appraisals fulfill two important functions.
• Development: the focus is on identifying individual strengths and
weaknesses and developing action plans for improving
performance.
• Evaluation: the focus is on assessing how well a person has
performed in order to determine salary or merit adjustments.
Multi-rater appraisal or 360-degree feedback involves soliciting
feedback concerning team members’ performance from all the people
their work affects.
Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 30

Instructor: Dr. Nguyen Thi Duc Nguyen 15

 Team Evaluation

1. Tends to based on achieving project objectives according

to time, cost, and specifications (scope) as well as
customer/end user satisfaction.
2. Less common to assess how well the team worked
together and with others.
3. Uses a survey administrated by a consultant, a staff
member from the Human Resources Department or e-
mail.
4. Uses the survey results to assess the development of the
team, its strengths and weaknesses, and the lessons that
can be applied to future project work.

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Project Performance Evaluation: 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?

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Instructor: Dr. Nguyen Thi Duc Nguyen 16

 Sample Team Evaluation and Feedback
Survey

Disagree Agree
Using the scale below, assess each statement.
1. The team shared a sense of common purpose,
and each member was willing to work toward
achieving project objectives. 1 2 3 4 5
2. Respect was shown for other points of view.
Differences of opinion were encouraged and
freely expressed. 1 2 3 4 5
3. All interaction among team members occurred
in a comfortable, supportive atmosphere. 1 2 3 4 5

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Project Performance Evaluation: Individual

Responsibility for assessing performance

Functional organization or the individual’s area manager

:. The area manager may solicit the project manager’s
functional matrix
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 the project manager is responsible for

organizations appraising individual performance

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Instructor: Dr. Nguyen Thi Duc Nguyen 17

 Project Performance Evaluation: Individual

Multirater appraisal or the “360-degree feedback

Involves soliciting feedback concerning team
members’ performance from all the people their
work affects.
This includes project managers, area managers,
peers, subordinates, and even customers.

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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General Tips for Conducting Performance

Reviews

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

performance.
2. Avoid drawing comparisons with other team members;
rather, assess the individual in terms of established
standards and expectations.
3. Focus criticism on specific behaviors rather than on the
individual personally.
4. Be consistent and fair in your treatment of all team
members.
5. Treat the review as one point in an ongoing process.

Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT
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Instructor: Dr. Nguyen Thi Duc Nguyen 18

 SUMMARY

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Project Closure and Review Deliverables - Text

Alternative

Project Closure Deliverables

1. Wrap-up closure activities
Facilities
Customer
Vendors
Report
2. Performance evaluation
Team evaluation
Individual evaluation
3. Project audit
Report
Retrospective
Lessons Learned
All three of these deliverables go to the project archives/database.
Instructor: Dr. Nguyen Thi Duc Nguyen, School of Industrial Management, HCMUT 38

Instructor: Dr. Nguyen Thi Duc Nguyen 19