Understanding the Early Closure of a Project

In this podcast, Ricardo talks about what characterizes an early closure of a project. He clarifies that it is not the same as abandoning the project. He mentions possible causes and explains that there's an entire closing process to follow after making the decision.

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Episode transcript

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Hello everybody welcome to the five Minutes BM podcasts today. I like to discuss the Early Closure have a project. Of course, this is not a happy situation because nobody is start a project thinking that the project can be shut down in the middle. And the first thing we need to understand is why this can happen. So usually the process of Early Closure have a project is due to the crisis process. And what does a crisis in a very simple way?

The crisis is some variations in the project environment that you can not tolerate simple like that. For example, you have some time variations, some cost variations, or some market variations that you can not accept that they change the game where you plan that you're Project. So let's give some examples. The first one let's suppose that your project relies on a very key supply and lets suppose that this supplied is not available anymore or the price of this supply increase at sharply.

So the commercial conditions of the Project you were developing or the business case, or the breakeven point of the return on investment is not valid anymore. So you cannot continue on that project. The second example is market conditions. There is a difference. For example, the government creates, for example, a new tax or one country stopped doing trade with a, not a country or there is a major, a terrorist event that could change the landscape of the international trade.

And then you cannot move with the Project anymore. When I tell you this, what you should do, the first thing, you need to understand that when I'm talking about early Closure and talking about stopping the execution, but I'm not talking about stopping the closing process. So Early Closure means you move on to the Closure earlier than what you expected. It's very important because it's so common that people just Abend on the project, they just leave the project.

It's very important that you understand that when you are in a crisis and you need where the Closure are a project that you need to do the closing process, you need to demobilize the team. You need to rash the lessons, learn it. It's extremely important. Do you know why? Because if you do not do this process properly, what will happen your organization and your self may face this same challenge in the future again, and by far the most expensive way of learning is it with your own mistakes?

The price is extremely high. So I one, just to remember one Colt that one friend of mine said about mistakes is that at least learn in the first time you do the mistake, it's not sent an email, the smart decision to do the same mistake twice or three times to learn it. So it's very, very important. This is why we need to capture the lessons learned. We need to demobilize the team. We need to release the assets.

We need to sell the assets, or we need to transfer the assets to make sure that we reduce the damage that we try to liquidate most of the damage. And also that we'll learn from our past sometimes dramatic experience. Think about that when you're facing the challenge, just don't give up everything, move to the Closure and learn with your mistakes. I hope you enjoyed this podcast. See you next week with another five minutes BM Podcast.

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Understanding the Early Closure of a Project

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