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The Importance of the PM² Closing Phase – Benefits, Challenges, and Best Practices

The Closing Phase of a project, often underappreciated, is vital for long-term organisational success and the enhancement of project management practices. This phase ensures that a project is concluded effectively, capturing valuable insights and lessons that can be leveraged in future projects. In this article, we will explore the steps involved in the Closing Phase, the key activities, objectives, and artefacts, and how these contribute to the overall project management maturity of an organisation.

Preparing for the Closing Phase

Before transitioning to the Closing Phase, several key objectives must be achieved in the Executing Phase. The completion of all project deliverables according to specified requirements is essential. Additionally, all activities outlined in the last baselined Project Work Plan must be finalised. Acceptance of these deliverables by the client is crucial to ensure that the project has met its intended goals. Achieving all business implementation goals and transitions signifies that the project is ready to move forward.

At the end of the Executing Phase, project must pass through the Ready for Closing (RfC) phase gate. This involves an end-of-Executing-Phase review. The Project Manager (PM) coordinates efforts to assess whether the project’s key objectives have been achieved before moving to the Closing Phase include:

  • Completion of all project deliverables as per specification.
  • Completion of all activities described in the last baselined Project Work Plan.
  • Acceptance of all deliverables by the client.
  • Achievement of all declared transition and business implementation goals.

The Closing (RfC) Phase Gate serves as a quality control point, ensuring that the project is ready to proceed to the Closing Phase. The decision to move forward is taken by the Project Steering Committee (PSC) based on the recommendations from the Project Manager (PM) and the Business Manager (BM).

Objectives of the Closing Phase

The primary objectives of the Closing Phase include evaluating the overall project performance to assess its success and efficiency. Capturing and sharing lessons learned throughout the project is essential for continuous improvement. Developing actionable post-project recommendations ensures that insights gained are applied to future projects. Achieving formal acceptance and closure of all project deliverables guarantees that the project is officially concluded. Properly archiving artefacts and releasing project resources finalises the administrative closure of the project. Additionally, celebrating the project’s achievements through informal social gatherings or team events is crucial for providing emotional closure. This helps team members decompress, acknowledge their hard work, and transition smoothly out of the project, thereby fostering a positive work environment and reinforcing team cohesion.

Key Activities and Artefacts in the Closing Phase

  1. The Project-End Review Meeting is a formal event that brings together project team members and key stakeholders to evaluate the overall project experience, capture lessons learned, and discuss recommendations for future projects. This meeting facilitates a comprehensive discussion of the project’s performance and generates actionable insights. The Project Manager (PM) and Project Support Team (PST) organise the meeting, ensuring that all necessary artefacts are available for reference and that key stakeholders are present to contribute actively.
  2. Managing project lessons is a continuous activity that involves identifying, documenting, and analysing lessons learned throughout the project. This process enhances organisational learning and promotes continuous improvement. Lessons are captured in the Lessons Log, assessed for their value, and communicated to stakeholders. This ongoing effort ensures that valuable insights are not lost and can be applied to future projects.
  3. Producing the Project-End Report is a key output in the Closing Phase. This artefact captures the project’s performance, lessons learned, and post-project recommendations, serving as a knowledge base for future projects and contributing to organisational improvement. The report is compiled by the PM with inputs from the Lessons Log, Project-End Review Meeting discussions, and other project artefacts, ensuring a detailed and accurate account of the project. The Project-End Canvas is a tool designed to capture and visualise key findings from the project’s Closing Phase on a single page. This canvas can summarise the outcomes of the Project-End Review Meeting, document results when a formal report is not required, and serve as a communication asset in presentations. While it is easy to fill out, involving several team members or stakeholders ensures multiple perspectives are captured and increases commitment to the project’s closure process. Although the Project-End Canvas is highly effective for succinctly capturing project conclusions, it is typically used in conjunction with more detailed artefacts such as the Project-End Report.
  4. The Business Implementation Handover ensures that all business implementation results and ongoing activities are transferred to the operational owners. This activity, managed by the Project Business Manager (BM) with support from the PM and PST, guarantees continuity and proper management of business benefits post-project. It is crucial to fully brief the benefit and operational owners on the status of remaining activities and provide them with all relevant information.
  5. Administrative Closure is the final activity of the Closing Phase. It involves organising and securely archiving all project artefacts, confirming that all project management activities are complete, and transitioning the organisation to post-project operations. The PM, with support from the PST, ensures that all closure activities are completed using an Administrative Closure Checklist.
  6. The final Project Acceptance and the Acceptance Note mark the formal conclusion of a project. This process involves a final review to ensure all Closing Phase objectives and deliverables have been met satisfactorily. The acceptance note, typically signed by the Project Owner (PO) and other key stakeholders, serves as an official document acknowledging the project’s completion and successful delivery of results. This formal acceptance signifies the end of the project, releasing all associated resources thereby ensuring a smooth and controlled closure.

Closing Phase Challenges

Conducting an effective Closing Phase may present significant challenges. One of the primary difficulties is the tendency of organisations to overlook and underinvest in this phase. With a strong focus on immediate project deliverables, many teams neglect the long-term benefits that a well-executed Closing Phase can bring. This underinvestment often results in insufficient time and resources being allocated to the phase. Active stakeholder participation is also crucial but often hard to secure. Ensuring that all key stakeholders are engaged in the review and acceptance process requires careful planning and coordination. When stakeholders are occupied with other responsibilities, their involvement can be limited, potentially undermining the thoroughness of the closing activities.

Another challenge is the justification of effort and budget for the Closing Phase, particularly in the absence of a formal corporate-sponsored methodology and support by the Project Steering Committee (PSC). Without a structured approach, it can be difficult to ensure consistency and thoroughness in closing activities. Implementing a formal methodology provides a necessary framework and guidelines that help in standardising the Closing Phase activities, ensuring they are executed systematically.

Additionally, a strong knowledge management culture and established processes are essential. Organisations that prioritise knowledge sharing and application can significantly amplify the benefits derived from the Closing Phase outputs. However, fostering such a culture can be challenging, particularly in environments where knowledge management is not embedded into the organisational practices.

By recognising and addressing these challenges, and by implementing a formal methodology alongside a knowledge management culture, organisations can effectively navigate the complexities of the PM² Closing Phase, ensuring that it contributes meaningfully to future project successes.

Conclusion

The Closing Phase is crucial for consolidating a project’s achievements and learning from its experiences. By meticulously documenting lessons learned and ensuring all closure activities are completed, organisations can significantly enhance their project management practices. This phase not only marks the formal end of a project but also lays the foundation for future success, continuous improvement and knowledge sharing. Investing in a structured and thorough Closing Phase ultimately leads to higher project management maturity and better outcomes for future projects.

Interested in learning more about the Project-End Review Canvas?

  • Read an article about the PM² Phases here.
  • Read the article about the Project-End Canvas here.
  • Download the Project-End Canvas in printable and editable PPTX format.
  • For additional material that are useful for your project and organisation got to the PM² Alliance Publications page.