EBUS614: Project and Portfolio Management: Auditing and Closure

This report analyzes project auditing and closure, covering essential aspects of project management within organizations. It examines project auditing's role in evaluating progress, performance, and identifying areas for improvement throughout the project lifecycle. The report details different levels of audits, timing, and the auditor's responsibilities. It also explores project closure methods, including extinction, addition, integration, and starvation, along with the reasons for closure and the decision-making process. Furthermore, the report discusses the implementation of closure, including tasks conducted by closure managers, and the importance of final reports and capturing lessons learned. Finally, it considers how to address the needs of the project team during the closure phase, emphasizing the significance of recognition and celebration of success. The report provides a comprehensive understanding of project auditing and closure, essential for effective project management and organizational success.

EBUS614: Project and Portfolio Management
in Organisations
Lecture 9 – Project Closure
Dr Fotios Misopoulos and Dr Matthew Tickle

What we will discuss today
1. Project Auditing
2. Project Closure
2

Project Auditing
• An audit is a formal review (or evaluation) of any aspect of the projec
• They are conducted throughout the project’s lifecycle and are used t
compare progress and performance of the project against a set standa
• This can be either:
– Progress and performance against plan, or
– Progress and performance against other similar projects
• All aspects of the project are evaluated
• The strengths and weaknesses are identified, and recommendations fo
current and future projects are made
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How do we Evaluate a project?
• We can evaluate how “successful” a project is based on:
1. It’s efficiency at meeting the budget and schedule
2. It’s impact on customer satisfaction
3. It’s impact on business success
4. It’s future potential
5. It’s impact on organisational goals and strategy
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Direct Benefits of Audits
5
Identify problems
earlier
Improve project
performance
Provide more accurate
information on project
progress to customer
Identify opportunities
for future innovations
Increase
organisation’s
commitment to
project
Improve risk
management
processes
Identify mistakes –
eliminate them in
future
Evaluate
organisation’s project
management maturity
Reduce costs of
running projects

Indirect Benefits of Audits
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Increased
understanding of how
project adds value to
organisation
Increased project
management maturity
Create a collegial
environment
Identify potential
future senior
managers
Identify organisation’s
strengths and
weaknesses
Improve the impact
projects have on team
members’ careers

The Audit Report
• The audit can focus on the project as a
whole, or a specific aspect of the project
• There is no standard format, so organisation
usually create their own template which is
used for all projects
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The Format of a typical Audit Report
1. Introduction
2. Current Project Status
– Cost, Schedule, Scope, and Quality
3. Future Project Status
4. Critical Management Issues
5. Risk Assessment
6. Limitations and Assumptions
8

Example Audit Reports
9

Depth of the Audit
• Audits should be as detailed as possible, however time and mo
often constrain the level of depth presented in the report
• Costs of auditing include:
1. Team members’ time
2. Management of audit documentation
3. “Distraction” effect
4. Poor results lead to low morale
• There are 4 main levels of audit – the General Audit, the Detail
Audit, the Technical Audit, and the Risk Audit
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Timing of the Audit
• All important projects must be audited
• Larger projects should be audited multiple times
• First audit is usually conducted early in the project lifecycle
(normally during the Initiation stage)
• Audits are then conducted during:
– Feasibility Study
– Preliminary Plan / Schedule / Budget
– Implementation
– Post Project
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The Project Auditors
• All Auditors must:
– Be honest and ethical
– Identify and avoid biases
– Be independent
– Ask for further clarification if required
– Keep information confidential
– Evaluate the effectiveness of the auditing process
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