Program Management Supporting Processes: Program Closure Phase Tutorial

Program Management Supporting Processes: Program Closure Phase

Welcome to the eleventh chapter of the PMI-PgMP tutorial (part of the PMI-PgMP® Certification Training.)

In this lesson, we will discuss the processes related to the program closure life cycle stage that is mentioned in the standard for program management.

In the next section, we will look at the objectives of this lesson.

Objectives

After completing this lesson, you will be able to:

  • Explain the integration management closure processes.

  • Explain the financial management closure processes.

  • Explain the procurement management closure processes.

Let us discuss the integrated management process, program transition, and benefits sustainment, in the next section.

Program Transition and Benefits Sustainment

The main aim of initiating and developing a program is to maximize profits and transfer the benefits to the organization. The benefits are achieved in the program by developing the program components and making prompt deliverables to the customer.

Some components tend to deliver the benefits instantly, while other components require the occurrence of the sign-off state to deliver the benefits to the organization.

Let us analyze the closure of the program and the transfer of benefits to the organization in the next section.

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Program Closure

Program closure is initiated when the benefits of developing the program have been accomplished. The closure is implemented after the transition of efforts to another program or to the sponsoring organization.

There are a number of processes involved in program closure. They are:

  • Generation of final reports

  • Resource disposition

  • Knowledge Transition

  • Program closeout

Generation of Final Reports

The critical information that the senior management requires to execute corporate governance and the details that are required for utilizing in other programs are documented and generated as final reports.

The details that are included in the final report are:

  • Areas of improvement

  • Success and failure of the components of the program

  • Assessments of financial and performance domains

  • Reasons for program closure

  • Results of applied Risk Management Techniques

  • Customer sign-off process

  • Unanticipated risk factors, if any

  • Complete program documentation archive plan

  • Baseline history of technical and programmatic behaviors.

Resource Disposition

The release of resources from the program is one of the major functions of the closure activities.

In the component level, the resources are relieved of their responsibilities and transferred to another project or another program demanding similar skill sets as that of the released resource.

At the program level, the resources are released as a part of program governance activity and then the closure is approved.

Knowledge Transition

When program closure is initiated, the program manager inspects and documents the performance of the program and shares the same with his team members.

This document should be readily available for any future reference or provide guidelines to the existing programs. This document also serves as a knowledge transfer file that provides extensive training for the resources of different programs of the organization.

Program Closeout

The end of the program is determined when:

  • The objectives of the program are achieved, and the conditions mentioned in the charter document are accomplished.

  • The program is terminated or in the event of a failure in delivering quality products.

  • There is Compulsory cancellation of the program, due to increase in the cost of operations and poor performance.

  • There is an event of Compulsory cancellation due to the introduction of new laws and regulations which contradict the development of the program activities.

In the next screen is a case study for which you will have to come up with an appropriate answer. You will then compare your answer with the suggested answer.

Financial Management Processes

During program definition, cost estimation should be drafted to maintain the benefits produced by the program.

During the program benefit delivery phase, these costs are estimated in terms of operations, and maintenance, and it only requires the residual activities pertaining to benefit recovery to be estimated during the financial management closure phase.

Let us discuss the financial closure processes in the next section.

Program Financial Closure

The results of program financial closure include the following:

  • Provision of updates to the existing financial management plan subject to closure

  • Drafting the final performance reports and the inputs therein

  • Documentation and preservation of the tools and techniques used in the program for training purposes

  • Inputs to the knowledge repository

  • Documents pertaining to financial closing statements

  • The budget for the closure of the program

During the closure of the program, the financial reports are generated in accordance with the stakeholder’s engagement plan and the program budgets are closed. Any excess cash flow is reverted to the benefits of the organization.

In the next section, let us look at another case study.

Program Procurement Closure

The vendor contract is subject to closure in the event of completion of obligations set out for him. The acceptance report is generated by the program management team to confirm that the vendor has supplied the goods completely.

The contract completion certificate is then issued by the program manager to release funds for the goods supplied or work provided by the vendor. The vendor contract is subject to cancellation in circumstances such as:

  • Delay in supply of goods according to the terms laid down in the contract, or breach of contract.

  • Supply of poor quality of goods, not in accordance with the industry standards.

  • Changes implemented in the program which leads to termination of the seller’s contract regardless of his performance.

A termination notice is issued by the program manager to the vendor that explains in detail about the reason for termination of his contract. All the details pertaining to cancellation or termination of a contract are recorded in the contract file and are used for future references.

Let us now check your understanding of the topics covered in this lesson.

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Summary

Let us now quickly summarize what we have learned in this lesson:

  • Program closure is initiated when the benefits of developing the program have been accomplished.

  • The release of resources from the program is one of the major functions of program closure.

  • During the closure of the program, the financial reports are generated in accordance with the stakeholder’s engagement plan and the program budgets are closed.

  • During program procurement closure, the vendor contract is subject to closure in the event of completion of obligations set out for him and the acceptance report is generated.

Conclusion

We have now reached the end of this lesson and also the tutorial.

  • Disclaimer
  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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