The process of successfully closing out a project or phase is vital in the Project Management Professional (PMP) landscape. This measure ensures that all activities and tasks related to a specific project or phase have been finalised, allowing for a seamless transition to the next project or phase. The closeout process encompasses various components, such as final lessons learned, conduct retrospective, completing procurement activities, tying up financials, and freeing up resources for future ventures.
1. Final Lessons Learned:
The conduct of a “Lessons Learned” session is a crucial step towards project or phase closure. This meeting aims to document what worked well and what didn’t during the project, allowing for improved future project management practices. Team members share their experiences, identifying opportunities for improvement and effective strategies that could be employed in future circumstances.
Example: Let’s take the development and launch of a new software application as an instance. The lessons learned could include challenges encountered during development, effective debugging methods used and the effectiveness of the project management tools in tracking the project progress. The gathered information will be stored in a knowledge base for future reference.
2. Retrospective:
The retrospective is a critical review or look-back at a project once it is completed. This is where the team discusses what went well and what needs improvement. These learning points contribute to process improvement strategies employed in future projects.
Example: In case of a construction project for a multistory building, the retrospective may involve discussions on process improvements, effective resource utilization, and safety measures. These learnings can then be employed in future construction projects, ensuring better efficiency and fewer mishaps.
3. Procurement:
This involves finalizing any procurement commitments made during the project. It requires a complete review of contractual obligations, final payments and closure of all contracts related to that specific project or phase.
Example: Let’s take the example of a manufacturing project, where raw materials were procured from various vendors. At project close, all contractual obligations with those vendors need to be concluded, and remaining payments, if any, should be made.
4. Financials:
Ensuring financial obligations of a project are met is a crucial part of the closeout phase. This includes verifying that all invoices are paid, confirming that all expenses and costs have been appropriately allocated and documented, and that the project’s financial records are ready for audit if necessary.
Example: In case of an event organization project, the financial closeout would involve settling payments with the event location providers, caterers, performers, and other expenses related to the event.
5. Resources:
The last step in the closeout process involves freeing up resources – both human and non-human – for future assignments. This includes releasing team members for other tasks, returning rented equipment, and freeing up any physical or virtual spaces used for the project.
Example: In an IT project, after a software has been developed and implemented, the project team members may be assigned to other tasks. Virtual resources such as cloud space may also be freed up, and physical equipments like servers can be repurposed for other ongoing projects.
In Conclusion
Closing out a project or a phase is as crucial as initiating or implementing it. It ensures that all loose ends are tied up and that the project team can utilize the learnings from the closed project to improve future endeavors. Proper understanding and execution of these final activities will enhance the professional competency of a PMP-certified professional and result in better project outcomes.
Practice Test
True/False: The process of closing out a project or phase involves reviewing and documenting what went well and what didn’t.
Answer: True
Explanation: This is known as the lessons learned or retrospective process, and it is a key part of project closure and management.
What documents are often created during the closing process of a project or project phase?
- a) Project Initiation Document
- b) Budget forecast
- c) Lessons Learned Report
- d) Procurement Plan
Answer: c) Lessons Learned Report
Explanation: The lessons learned report helps the project team to understand what worked well and what didn’t, which can be helpful for future projects.
True/False: Procurement is an important aspect to consider when closing out a project.
Answer: True
Explanation: During project closure, any outstanding procurement activities such as finalising contracts or dealing with suppliers should be successfully resolved.
Which of the following is NOT a typical task when concluding activities to close out a project or phase?
- a) Collating all lessons learned.
- b) Finalising any financial matters.
- c) Scoping the next project phase.
- d) Extending all ongoing contracts.
Answer: d) Extending all ongoing contracts.
Explanation: Contracts are typically finalised, not extended, during the project closure process.
True/False: It is not necessary to release project resources during project closure.
Answer: False
Explanation: Part of project closure involves releasing project resources, such as team members, equipment, etc back into the resource pool.
The final ____________ should be completed during the close out of a project or project phase.
- a) Project plan
- b) Financial review
- c) Risk log
- d) Stakeholder engagement plan
Answer: b) Financial review
Explanation: A final financial review offers the opportunity to close out any remaining financial issues and document the project’s overall financial performance.
True/False: Lessons learned are only gathered at the end of a project.
Answer: False
Explanation: Lessons learned are gathered throughout the project’s lifecycle but are often collated and reviewed as a final activity during project closure.
Which of the following is NOT a key part of a project retrospective?
- a) Defining project objectives
- b) Identifying successes
- c) Identifying areas for improvement
- d) Deciding on adjustments for future projects
Answer: a) Defining project objectives
Explanation: Defining project objectives should have already taken place earlier in the project lifecycle.
True/False: It’s essential for the Project Manager to formally close out any remaining contracts during the project closure stage.
Answer: True
Explanation: During the project closure stage, the Project Manager should ensure all contracts have been fulfilled.
What is the main reason for holding a retrospective at the end of a project phase or project?
- a) To motivate the project team
- b) To identify areas for improvement and learn from the experience
- c) To assign blame for any project issues
- d) To plan for the next project phase
Answer: b) To identify areas for improvement and learn from the experience
Explanation: The main purpose of a retrospective is to improve future project delivery by learning from past experiences and identifying areas for improvement.
Interview Questions
What is the purpose of conducting a final lessons learned session at the end of a project or phase?
The purpose of conducting a final lessons learned session is to document what worked well, what didn’t, and what improvements can be made for future projects. This tool is valuable for continuous process improvement and to ensure that the same mistakes are not repeated in subsequent projects or phases.
What is a project retrospective?
A project retrospective is a review of the project or phase to determine what was successful and what could be improved. It’s conducted at the end of the project or phase and includes all project team members. This activity helps in promoting continuous improvement within the organization.
How does procurement close out contribute to concluding a project or phase?
Procurement close out involves ensuring all contractual items are complete and all outstanding matters are resolved, including the completion of any necessary documentation and the resolution of any disputes. The vendor relationships are formally concluded, which helps to mitigate any legal and financial risks associated with the procurement.
What is the role of financial close out in the project or phase closure?
Financial close out involves ensuring all expenses have been paid, all invoices have been received, and project budgeting and accounting are properly finalized. This ensures there are no outstanding liabilities and provides a clear audit trail.
How does the process of releasing resources help in project closure?
As part of the project closure, resources are formally released from their project roles. This involves documenting their performance for future reference and updating their availability in the organization’s resource pool. This frees these resources for assignment to other projects or operational tasks.
What is the difference between administrative closure and contract closure?
Administrative closure involves verifying and documenting the project outcomes, whereas contract closure involves settling and closing any contracts associated with the project. Both are essential to ensuring that a project or phase is properly closed.
What is involved in project transition?
Project transition includes handing over the project’s deliverables to the business owner, providing supporting documentation, and transferring knowledge necessary to operate and maintain the deliverables.
What is a project close-out report?
A project close-out report is a document that outlines the project’s performance and includes recommendations for future projects. It covers all aspects of the project, including project management processes, outcomes, lessons learned, and recommendations for improvement.
Why is performance reporting important at the end of a project or phase?
Performance reporting at the end of a project or phase measures and documents the project’s achievements compared to its objectives. It’s important as it provides valuable insights into project effectiveness and can guide future project planning and execution.
How is risk management performed during project closure?
During project closure, risks are reviewed, and the effectiveness of risk responses are assessed. Outstanding risks are either closed or transferred to an appropriate party for ongoing management.
What is meant by organizational process assets updates?
Organizational process assets updates refers to changes made to organizational process assets as a result of the project. These could be updates to policies, processes, procedures, historical information or any knowledge gained from the project.
Why is recognition or rewards distribution beneficial during the project closure phase?
Recognition or rewards distribution during the project closure phase improves morale and increases motivation. It recognizes team members for their contributions and encourages them to maintain high levels of performance in future projects.
What is the significance of archiving project documents at the end of a project?
Archiving projects documents creates a historical record of the project. These records are used for reference in future similar projects, audit purposes, and can be used as evidence in case of legal disputes.
What is the purpose of project closure notifications?
Project closure notifications formally communicate the closure of the project or phase to all stakeholders. It ensures everyone is informed about the project’s completion, the outcomes, and any other necessary arrangements, such as contract closure or resource release.
Why is stakeholder sign-off important during project closure?
Stakeholder sign-off during project closure ensures that all deliverables have been received and accepted. It assures all stakeholders are satisfied with the project outcome and provides formal closure to the project.
extutorials.com