Every cycle has a beginning and an end. Neither is more important than the other since both are effective in the healthy lifecycle of a project. In the project management process, project closure is the final step of the project lifecycle that concludes the project.
A good conclusion always contains a thorough review and a smooth transition towards something new. During project closeout, the whole project is reviewed, the final product is smoothly transitioned to the stakeholders or customers, and any remaining resources or assets are smoothly released.
The goal of closing a project is not merely to tick tasks as finished; it is to open ways for new successful ventures. This blog delves into what is project closing, why is project closing important, and different project closure steps.
Why Is Project Closing Important?
Project closing is important in formalizing the project's completion. Word of mouth is not enough, nor is the expectation that, having completed major milestones, the team should inadvertently know that the project has ended. There needs to be a clear indication on that front; audits and reviews need to be taken and formal meeting(s) held to give a proper closure to the project.
This ensures the team is on the same page regarding the information and deliverables that have reached their proper endpoints. To sum up, formal acknowledgment, learning from experience, releasing resources, ensuring client satisfaction, and tying up loose ends are necessary to attain proper closure.
Project Closing Steps
Project closure is not an arbitrary process. A project manager does not just decide and announces that the project has ended. To ascertain that the project is properly closed without any loopholes, certain defined steps need to be followed. These are explained below:
Project Completion Confirmation
Most important step to close a project is to ensure that the project is completed. One of the best techniques to ensure that all project objectives have been achieved is to create a project completion checklist. This will help you state and visually address all the deliverables; no minor task is left unaddressed or unnoticed. This checklist does not have to be complicated. A simple template of tasks and dates is a good start.
Task | Completion Date |
Finalize project deliverables | [Date] |
Obtain client/stakeholder approval | [Date] |
Document any outstanding issues or tasks for future reference | [Date] |
Ensure all project documentation is up-to-date and organized | [Date] |
Conduct a final review of the project budget and expenses | [Date] |
Confirm all contractual obligations have been fulfilled | [Date] |
Obtain necessary approvals for project closure | [Date] |
Archive project files and documentation for future reference | [Date] |
Communicate project closure to all stakeholders | [Date] |
Celebrate project completion with the team | [Date] |
The confirmation checklist can be customized to suit the project’s needs. There is also dedicated software available that helps you ensure that your tasks are thoroughly checked and there are no pending tasks left. Some popular options include Asana Software, Trello Software, or Basecamp Software.
Deliverables And Assets Transfer
Delving into the nitty gritty of efficiently transferring all deliverables to the stakeholders means making sure that the final product meets the expectations and intended use of the product or the outcome of the project (aligning with project goals and objectives).
Transferring assets or deliverables differs from project to project since each project has different needs and outlooks. For some projects, it may be a physical handover of equipment or documents, while for others, it may be a virtual transfer, such as data or software products.
It is important to have a clear and detailed plan or checklist to ensure that all critical items are transferred. Again, this could be done manually or with a dedicated software application.
| Item | Responsible Party | Transfer Method | Deadline |
| Project Plan | Project Manager | Digital transfer via email | [Date] |
| Client Sign-off form | Project Manager | Digital transfer via project management software | [Date] |
| Product prototype | Design Team | In-person handover with client representatives | [Date] |
| Final report document | Project Manager | Digital transfer via cloud storage platform | [Date] |
| Equipment or tools used during project | Facilities Team/Project Manager | In-person handover and documentation of receipt | [Date] |
| Project budget and financial reports | Finance Team | Digital transfer via a secure file- sharing platform | [Date] |
Review Contracts And Documents
A tedious but nevertheless pivotal step is to review all contracts and documentation thoroughly. To ensure team integrity, your team should be familiar with the terminology and documentation required for the project and used during the project process.
Some important terminology to look for while reviewing contracts and documents during the project closing phase includes:
- Contract expiration or renewal dates
- Contract obligations, such as required deliverables or milestones
- Payment terms and amounts
- Documentation requirements, such as final reports or project audits
Making a checklist might help. You could also use project planning software to set reminders for contract expiration or document submission deadlines.
Releasing
Done reviewing the documentation and contracts? Now, it’s time to ensure all resources are released. This may include closing contracts apart from the obvious delivery of equipment and tools used during the project and securing necessary approvals for final approvals.
It is important to make sure that all deliverables are met, because releasing the resources too soon can result in delays and budget outruns for any outstanding work that needs to be done.
Some of the best practices included in the strategic withdrawal of resources are given below:
- Confirming with team members that all tasks and deliverables are completed
- Addressing any outstanding issues or concerns
- Providing feedback or recognition to team members
- Gathering contact information for future reference
- Releasing contracted workers after confirming that their services are no longer needed and ensuring they receive appropriate compensation
- Closing contracts promptly and ensuring all obligations have been met
Evaluation
In the evaluation step of the project close-out, important questions need to be asked. These include: What lessons have been learned? What can be improved? A comprehensive review of insights paves the way for a refined future performance from the team.
One would imagine that an efficient workflow would entail moving on to the next project after completing one. However, taking time out for reflective learning from an already completed project is an important step towards an improved learning curve and growth factor.
Doing an evaluation involves gathering feedback from stakeholders, conducting surveys from the team, or holding a meeting to discuss further improvements. The goal of evaluating a project is to identify successes or challenges and use them as lessons for future projects.
You can ask these 5-H questions while conducting a post-mortem evaluation discussion:
- How were the project objectives met?
- How were different challenges and roadblocks addressed?
- How were budget and timeline constraints dealt with?
- How did communication and collaboration go through the project lifecycle?
- How could the project’s outcome be improved?
Even though gathering feedback from these 5-H questions can identify improvements, one can still probe further into the root cause of issues that may have arisen during the project management process. Two tried-and-tested techniques used in the industry are “5-Whys” and the Fishbone diagram.
5 Whys Technique
In the 5 Whys technique, you simply go step-by-step towards the main cause. A simple example of the 5 Whys technique in action is given below:
Why was the project delayed?
Because the deliverables were not completed on time.
Why were the deliverables not completed on time?
Because one of our team members fell ill and couldn't complete their tasks.
Why wasn't their absence accounted for and addressed beforehand?
Because we didn't have a backup plan in place.
Why wasn't there a backup plan?
Because we didn't anticipate any team member being unable to work on their tasks.
Why didn't we anticipate this possibility?
Because we didn't conduct a risk assessment at the beginning of the project.
By asking "Why" multiple times, you can identify the root cause of an issue and ways to prevent it from happening again.
Fishbone Diagram
A fishbone diagram, also known as an Ishikawa or cause-and-effect diagram, can help you identify the root causes of a problem by visually mapping out all contributing factors. Here's a simple example of a fishbone diagram for identifying reasons for project delays:
Archiving
Archiving documents astutely ensures that the legacy of your project is maintained and protected. Far into the future, you need a reference to a certain document or report of a certain project. If you wind up your project and go through all the steps to throw it in the bin, chances are you have no official record of it and you come empty-handed. This is because you have left an important part of the project closure process: archiving.
You can archive whole projects. However, one must be smart; archiving and keeping a record takes a lot of space. There are smart and best practices for the preservation of essential files for accessibility and future reference down the line. A crucial and rewarding, albeit time-consuming, step is to identify critical documents whose existence might be needed in the future. Of course, variations do exist from one project to another, some examples might include:
- Project plans and schedules
- Meeting minutes and notes
- Final reports and deliverables
- Important email exchanges or communication with stakeholders
Once you are done identifying which documents to keep, create a proper archive. Digital or paper based depends on personal preference; a more important task is labeling the documents and folders clearly. Including a short description of the importance of each document could also be helpful.
Want to go a step further? Include key takeaways from the review and evaluation steps of the project closure to ensure their usability in the future as a reference for decisions taken on projects (if needed). Finally, make sure the team members have access to these documents, whether through a shared drive or a dedicated project management tool.
Celebration
Finally – you are done. Now is the time to celebrate the hard work and success of your team. The general perception of celebration in the productivity culture amounts to a waste – however, it is an essential space for your team to sit with the hard work and success of the project and improve the team spirit with a sigh of satisfaction. This is also an opportunity for you, as a project manager, to recognize the contribution and efforts put in by your team. They should not feel like robots moving from task to task; it is important to realize cultivating a healthy sense of victory and fortitude. Go out for lunch or dinner, have a ceremony celebrating the project closure, make light-hearted conversations and bring ease to the hearts of the team members. It goes a long way.
Types Of Project Closure
While every project may seem like a dead end or the end to a new beginning, this is not always the case. Projects can end in different ways, and depending on that, there are different types of project closures available.
Normal Closure
An ideal scenario is that the project is completed successfully; this is called a normal closure. The project ends up meeting all its objectives and deliverables within the planned budget and time frame. The transition from one project to another is smooth and the team reverts to their regular roles and operations.
Premature Closure
Sometimes, due to efficiency or changes in execution/project scope, a project may finish earlier while still achieving its goals. This is a positive project closure; however, it still requires formal steps to avoid any confusion in the team and ensure client satisfaction.
Perpetual Closure
A premature closure is a good sign; a perpetual closure is not. A perpetual closure occurs when a project keeps extending due to unforeseen challenges, uncontrolled growth of project scope (scope creep), or resource constraints. This stage of the project needs proactive decision-making on the part of the project manager to either revise the scope or terminate the project altogether.
Change in Priorities
Sometimes, an organization might shift its priorities, making a certain ongoing project irrelevant. In cases of such kind, the project may get canceled mid-way even if it was going well on track. Following the proper closing steps helps to minimize the shock of the disruption and manage resources well.
Failed Closure
If a project fails to meet its goals or objectives, it is considered a failed closure. There could be myriad reasons for that, such as poor execution, lack of resources, or some fundamental flaw in the project's concept. Whatever the reason, reviewing and evaluating is still crucial to learning from this experience and avoiding repeating the same mistakes.
Considering the cyclical nature of processes in general, every cycle has an end. In the project management process, closing the project well means that the movement forward is towards a more productive trajectory and starts a new spiral of growth for the team. A good beginning should have a good closure. Your project completes its successful cycle by having a successful closure. Hopefully, this blog has served as a sufficient and thorough guide for that.
