Project Closure Phase: A Comprehensive Guide


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The project closure phase is the final stage of project management. Immediately following monitoring and control, it is focused on wrapping up the overall effort and tying up loose ends. Learn the importance of this phase, the key steps involved, and more in this article

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Objectives and Goals of the Project Closure Phase

The primary objective of project closure is to make sure that the project is completed successfully and that all deliverables are submitted and archived. 

In addition to these key objectives, here are the main goals of the last of the five phases of project management:

Formalize acceptance: This activity involves obtaining formal acceptance from the stakeholders of all deliverables that have been released as per the agreed-upon contract, including the expected scope, schedule, and budget. This critical step in the project closure process ensures that the project has met all expectations, with no issues or missing features.

Finalize loose ends: Every activity tends to have loose ends that need to be addressed and tied up before the work is officially closed. Finalizing loose ends for a project includes completing remaining tasks, resolving outstanding problems, and making sure all project documentation is captured, up to date, and complete before filing away.

Learn lessons: An activity that is often skipped due to time constraints or lack of experience, hosting a lessons learned exercise involves conducting a project review with the entire team to identify best practices and areas of improvement. Schedule this event before the team disbands and starts on a new work as the results of this activity make for an invaluable asset that will boost the success of future projects.

Release resources: This involves releasing all project resources, including personnel, equipment, assets, and facilities. Resources need to be available for other projects immediately so there are no overruns resulting in unnecessary costs associated with this project.

Celebrate success: It’s easy to be done and run, which is why a celebration is a great way to end a project. Celebrate the successful completion of the project with the project team and stakeholders and recognize the hard work and dedication of everyone involved. This will improve the team’s morale and get them motivated as they move on to the next project.

The Importance of Project Closure

Project closure is an indispensable phase in project management as it marks the end of a major work effort. Here’s why this stage is important:

Minimizes risks: The last thing you want after a successful project delivery is outstanding issues that can cause major problems in the future. Project closure means doing cleanup and addressing oversights to reduce risks.

Improves future projects: The project closure phase provides an opportunity to learn from the project after its completion and gain insights that can be applied to future projects. This helps improve overall quality and ensures timely completion.

Builds trust and reputation: This stage opens up the opportunity to build trust and reputation with the client by ensuring that all project deliverables have been submitted and all requirements have been met. This results in improved client satisfaction and increases the chances for repeat work.

Frees up resources: Project closure serves as a greenlight to release all project resources, including personnel, equipment, and facilities. This makes all resources available for other projects while making sure there are no unnecessary costs associated with the current one.

Key Steps and Best Practices

Project closure, like any other endeavor, is most efficient when executed well. Listed below are the key steps involved in this phase and practices to adopt to wrap the project up the best way possible. 

Consolidate reports and archive documentation: As the project draws to a close, make a habit of consolidating all project reports and archiving all project documentation in a central place for post-project access and reference. This should also include updating project plans, schedules, and budgets, as well as any other work-related documents such as contracts. These documents come in handy when scoping and pricing out similar work.

Sign off on final deliverables: Often overlooked, this step involves obtaining formal sign-off from the client or owner, signifying that all project deliverables have been submitted. It ensures that the project has met the client’s expectations and that there are no issues left unresolved. The last thing a project manager wants to deal with at the end of a project is finding out that something was missed or misinterpreted and having to schedule additional work or write up a project change order.

Finalize procedures: Before and in addition to closing out documentation, part of the project closure is seeing to it that no tasks remain undone, no concerns remain unaddressed, and that assets are properly archived. If the client has lent materials for research purposes or at any point in the earlier stages of the project life cycle, this is the time to pull it out of inventory and either return or destroy it.

Wrap up financial matters: This is an opportunity to complete any financial tasks, including closing out budget accounts, reconciling expenses, issuing and paying final invoices, and reviewing all financial records to make sure that they are accurate.

Hand off ownership: Handing off ownership of the project includes transferring all project deliverables, documentation, and other project-related materials so that they can be used in the capacity that they were designed and created for. This may include passing ownership to another department within the company or a client or vendor once your part of the work is complete. 

Set up support: A contingency plan may be required for the work once handoff is complete. This helps a business deal with unforeseen situations that require the help of your team and defines how your team may need to act in case of unexpected events or risks. Setting up support for the project includes organizing training sessions, maintenance, or support services, as well as outlining the contacts and processes needed to make sure the work is sustainable.

How Project Closure Contributes to Overall Project Success

There are several ways the project closure phase contributes to the overall project success, including the following:

Provides closure and a sense of accomplishment:  Project closure helps to recognize the hard work and dedication of the project team and to build morale for future projects. It is during this phase that certain actions are taken to make sure the project is ending on a high note and all parties are satisfied with the results.

Identifies areas for improvement: The last phase of project management offers an opportunity to learn from the experience and to identify best practices and lessons learned that can be carried over into upcoming projects, providing a solid starting point to build upon.

Minimizes potential liabilities: Lessen problems post-delivery when all loose ends are tied up. The closing phase of project management is where previously unidentified issues are addressed, minimizing the risks of suffering even bigger issues.

Strengthens relationships with stakeholders: Saying what you do and doing what you say is the gold standard for ending a working relationship with stakeholders and clients, and strengthening those relationships by making sure that they receive deliverables according to contractual expectations, which is what the project closure is about. A satisfied client will come back for more work, make invaluable referrals, and provide stellar testimonials.

The Role Stakeholders Play in Project Closure

Along with the project team, stakeholders play a critical role in the project closure stage. They are the final gatekeepers in a long list of checks and balances that ensure the successful completion of a project.

Among other things, stakeholders have an active role in wrapping the project up, including the following key actions.

Provide feedback and approvals: Stakeholders provide feedback and approval by officially signing off on all project deliverables and confirming that they were delivered according to scope, schedule, and budget. A signature, email, or in-system manual affirmation is the final indicator that nothing was amiss.

Participate in post-project reviews: Stakeholders and the project team participate in post-project reviews, an activity that aims to identify what went well and what could have been done better.

Offer support during knowledge transfer and handoff: Stakeholders are some of the individuals that offer the best support during knowledge transfer and handoff. They help identify details and bridge the gap between project work and post-project activities, including monitoring activities and any ongoing needs in terms of the use of the project deliverables.

Closing Thoughts

Once the project closure phase of project management is completed, the project is considered to be officially closed. A well-executed project closure plan sets the stage for organizational knowledge and continuous improvement and paves the way for future successful projects. This valuable time is an opportunity for reflection, learning, and preparation for what lies ahead.

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