Page 261 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes

Task Discuss about Abandonment Analysis.

14.9.2 Abandonment Analysis

Project Abandonment Analysis is a process that organizations should execute before making
decisions upon stopping or continuation of their projects. This analysis embraces economic and
administrative considerations that an organization should give to their projects prior to making
a well-grounded project continuation vs. abandon decision when it is necessary for an
organization to cease some of their projects for the sake of a better viability of their other
projects.

Project abandonment analysis comprises the following considerations:
1. Justifying reasons for organization to shut certain project down – why it doesn’t make
sense anymore to continue this project and why it is better to terminate it, instead of just
freezing it.
2. Comparing losses that a company will incur from abandonment of certain project against
the profits it can prospectively earn by reallocation of resources to other projects.
3. Appraising values of unattained benefits (belonging to a project to be abandoned) against
all other benefits that can be achieved at their costs (from other projects).

4. Evaluation of effects that project abandonment may cause to an organization owning it.

Self Assessment

Fill in the blanks:
10. People ………………… because of self interest, be it corporate or personal.
11. ………………… and flexibility are the dictates of the new world of work.

12. Most ………………… must effectively cross cultural boundaries in order to do their jobs.
13. A ………………… is monitored during the implementation phase so that time and cost
over run are minimized.

14. Post completion ………………… are used as a guide for future decision-making in the
realm of capital budgeting.
15. Most ………………… are applied within a formal and complex system especially for large
organizations.

14.10 Summary

 Conflict is not confined at the individual level alone but is manifesting itself more and
more in organizations.
 Leaders who can traverse divisive boundaries have always been vital to civilization, but
today the need for this leadership capacity is even more urgent and widespread.

 Transformation requires us to “wake up” out of vengeance and numbness.
 Negotiation is process of adjusting both parties’ views of their ideal outcomes to an
attainable outcome.

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