Project Audit & Closure Notes

Project Management & Entrepreneurship: Project Audit & Closure

A Review: Project Life Cycle

• Reference: Gray, C & Larson, E, Project Management, 7th Ed. McGraw-Hill

Project Closure

Types of Project Audits

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

Major Tasks of a Project Audit

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.

• Audits should be done not only for failed projects but for all projects.

Project Audit Components

• 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.
• An assessment of how well the project team functions and if it 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.

Factors Influencing Audit Depth and Detail

• Organization size (and culture)
• Project importance
• Project type
• Project risk
• Project size
• Project problems

Conducting a Project Audit

• Step 1: Initiation and Staffing
• Step 2: Data Collection and Analysis
• Step 3: Reporting

Step 1: Desired Characteristics for Audit Leaders

1. No direct involvement or direct interest in the project
2. Has respect (perceived as impartial and fair) of senior management and other project stakeholders
3. Willingness to listen
4. Independence and authority to report audit results without fear of recriminations from special interests
5. Perceived as having the best interests of the organization in making decisions
6. Broad-based experience in the organization or industry

Step 2: Data Collection and Analysis

• Organization View
  • Was the organizational culture supportive and correct?
  • Was senior management’s support adequate?
  • Did the project accomplish its intended purpose?
  • Were risks appropriately identified and assessed?
  • Were the right people and talents assigned?
  • Have staff been fairly reassigned to new projects?
  • What does evaluation from contractors suggest?
  • Were the project start-up and hand-off successful?
  • Is the customer satisfied?
• Project Team View
  • Were the project planning and control systems appropriate for this type of project?
  • Should all similar projects use these systems?
  • Did the project conform to plan for budget and schedule?
  • Were interfaces with stakeholders effective?
  • Have staff been fairly assigned to new projects?
  • Did the team have adequate resources? Were there resource conflicts?
  • Was the team managed well?
  • What does evaluation from contractors suggest?

Step 3: Reporting

• Audit Report Content Outline
  • Classification of project
    • Project type
    • Size
    • Staffing
    • Technology level
    • Strategic or support
  • Analysis of information gathered
    • Project mission and objectives
    • Procedures and systems used
    • Organization resources used
  • Recommendations
    • Corrective actions
  • Lessons learned
    • Reminders
  • Appendix
    • Backup data
  • Summary

Project Closure

• Conditions for Closure
  1. “Normal”
  2. Premature
  3. Perpetual
  4. Changed Priority
  5. Failed Project
  • Fun fact: What percentage of software projects are canceled before completion? At what cost?
• 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?

Survey Results: Barriers to Project Success

*To interpret the table, note that 32 percent of the 1,654 participants reported the barriers under “Planning,” 12 percent reported the barriers under “Scheduling,” and so on.

Implementing Closedown

1. Getting delivery acceptance from the customer
2. Shutting down resources and releasing to new uses
   • Most Importantly: Reassigning project team members
3. Closing accounts and seeing all bills are paid
4. Evaluating the project team, project team members, and the project manager (audit)

• Typically, a project closure checklist can be used to guard against loose ends.
  • Can supplement the project plan

Project Performance Evaluations

• Reasons for the poor quality of many Project Performance Evaluations:
  • Evaluations of individuals are still usually left to supervisors of the team member’s home department
  • Typical measures of team performance center only on time, cost, and specifications.
  • What else should be considered?

Project Performance Evaluation: Team

• Some Sample Questions to consider:
  • Are standards and goals for measuring performance Clear, challenging, and attainable? Lead to positive consequences?
  • Are responsibilities and performance standards known by all team members?
  • Are team rewards adequate? Management believes teams are important?
  • Is there a career path for successful project managers?
  • Does the team have discretionary authority to manage short-term difficulties?
  • Is there a high level of trust within the organization culture?
  • Are there further criteria beyond time, cost, and specifications?

Project Performance Evaluation: Individual

• The Responsibility for Assessing Performance Depends on the Organizational Structure
  • Functional organization or functional matrix: the individual’s area manager
    • 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.
• Starting to be more common: the Multi rater 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.