The inability to gracefully shut down one project when it needs to be shut down is a huge risk to your overall portfolio and to the company itself. Most of the time, the plan may be very simple, but working with your sponsor and stakeholders to identify how to recognize when the project needs to be shut down and what the process is very sensible, holistic risk avoidance for all involved.
She makes a perceptive point about mitigation plans and other risk responses. When preparing risk responses, we tend to focus on how we will manage an individual risk event — most risk responses are aimed at ensuring that the risk event won’t happen or the impact will be lessened. In other words, most approaches are aimed at preventing project exits. It is rare that any contigency or mitigation plan looks at what to do if the project is stopped, never mind advocating termination as a risk response!
We address this topic in our project closure process; but we don’t account for project stoppage explicitly enough. I’m taking an action item to take a fresh look at how we handle this within project and programs; as well as how we drive project termination in our portfolio monitoring and controlling process.
Filed under: Methodology, PMO, Portfolio Management, Program Management, Project Management, Troubled Projects Tagged: | Project Closure, Project Termination, Risk Management, Risk Response, Stacey Douglas, Undocumented Features