Sep 9, 2024
What To Do When You Get the Unexpected News That Your Project is Cancelled
Letty Bernard
There is a myriad of reasons why projects get cancelled or unexpectedly closed. Sometimes the reason is financial—budget cuts or cost overruns—or sometimes it is a matter of business strategic alignment. Regardless of the reason, the practical project manager should ensure that the unexpected closure is managed professionally, that negative impacts are minimized and that any insights for future projects are captured and shared.
These 3 Steps will aid the practical project manager in professionally handling unexpected project closures.
Step 1. Understand the Reason for Closure
Have a frank discussion with the project sponsor(s) and/or functional managers to determine the reason why the project is closing early. Is it due to budget cuts, a change in strategic direction, the achievement of objectives ahead of schedule, or other external factors?
Use the information you receive in your discussion to evaluate the impact on stakeholders, team members and remaining deliverable.
Document any consequences or impacts to early closure.
Step 2. Communicate with Stakeholders Throughout the Process
Be transparent with stakeholders and team members. Tactfully and clearly inform them of the reasons and potential impacts of early closure.
Lay out a plan of action for what must happen next, including how unfinished work will be handled and what stakeholders can expect moving forward.
Gather feedback from key stakeholders and address any concerns they may have about the project’s early closure.
Conduct a final retrospective discussing what went well, what didn’t and what can be learned from the experience. Record the lessons learned and share them with key stakeholders including project sponsors.
Remain positive and professional throughout; remember that maintaining relationships is a primary goal for a project manager.
Step 3. Closeout Financial Matters
Review the Budget: Assess the financial impact of the early closure, including any remaining budget, and ensure that all financial transactions are completed.
Settle Contracts: Close out any contracts with vendors, suppliers, or contractors, ensuring all obligations are met or renegotiated as necessary.
Taking these 3 steps can help you to control the narrative capture valuable insights for future projects.
