Prepare Premature Closure is a critical activity within the PRINCE2 7 Closing a Project process that addresses situations where a project must be terminated before its planned completion date. This scenario typically occurs when the Business Case is no longer viable, the project objectives become u…Prepare Premature Closure is a critical activity within the PRINCE2 7 Closing a Project process that addresses situations where a project must be terminated before its planned completion date. This scenario typically occurs when the Business Case is no longer viable, the project objectives become unachievable, or external factors make continuation impractical.
When premature closure becomes necessary, the Project Manager must take several important steps. First, they need to ensure that the Project Board has formally authorized the early termination through an Exception Report or direct instruction. This provides the governance framework for proceeding with closure activities.
The Project Manager must then assess the current state of all project products and work packages. This involves identifying which products have been completed, which are partially finished, and which have not yet started. For incomplete products, decisions must be made regarding their disposition - whether to preserve them for potential future use, hand them over in their current state, or dispose of them appropriately.
Documentation becomes especially important during premature closure. The Project Manager needs to capture lessons learned, including the reasons why the project could not continue as planned. This information proves valuable for organizational learning and future project planning.
Handover arrangements require careful attention even in premature closure situations. Any completed or partially completed products that have value must be transitioned appropriately to operations or other receiving parties. Outstanding contracts, supplier agreements, and resource commitments need proper resolution.
The End Project Report must still be produced, documenting the project's achievements against its original objectives, explaining the circumstances leading to early termination, and providing recommendations for any follow-on actions. Finally, the Project Manager prepares recommendations for the Project Board regarding the release of project resources and the formal closure of the project organization.
Prepare Premature Closure - Complete Guide
What is Prepare Premature Closure?
Prepare Premature Closure is an activity within the Closing a Project process in PRINCE2. It occurs when a project must be closed before its planned end date due to circumstances that make continuation unviable or undesirable. This could result from business case failure, external factors, organizational changes, or a decision by corporate/programme management to terminate the project early.
Why is Prepare Premature Closure Important?
Premature closure is critical because it ensures that even when a project ends unexpectedly, it does so in a controlled and orderly manner. The key reasons include:
• Protecting organizational assets - Ensures that any valuable products, knowledge, or work completed is salvaged and preserved • Resource release - Allows team members and resources to be freed for other work in a planned way • Learning capture - Documents lessons learned so the organization benefits from the experience • Stakeholder management - Ensures proper communication with all affected parties • Financial control - Provides clear accounting of expenditure and any remaining budget • Contractual obligations - Addresses supplier contracts and third-party agreements appropriately
How Does Prepare Premature Closure Work?
When premature closure is required, the Project Manager must adapt the standard closure activities to fit the situation. The process involves:
1. Assessing the Current State Evaluate what products have been completed, what work is in progress, and what resources are currently allocated.
2. Salvaging Completed Products Identify any products that can be handed over or transferred to other projects or business operations.
3. Documenting the Situation Record why the project is closing prematurely, what was achieved, and what remains incomplete.
4. Preparing the End Project Report This report must reflect the premature nature of closure, including what was delivered versus what was planned.
5. Capturing Lessons Compile lessons learned from the project, including factors that contributed to the premature closure.
6. Planning Follow-on Actions Identify any recommendations for future work or actions needed after the project closes.
7. Preparing Handover Documentation Create documentation for any products being transferred, even if incomplete.
Key Differences from Planned Closure
• The Project Manager may have less time to prepare closure documentation • Not all planned products will be available for handover • Benefits realization will be limited or non-existent • Additional focus is needed on explaining why closure occurred • Greater emphasis on capturing lessons about what went wrong
Exam Tips: Answering Questions on Prepare Premature Closure
Tip 1: Remember the Trigger Premature closure is triggered by a decision from corporate/programme management or when the business case is no longer viable. Questions may test whether you understand who authorizes this decision.
Tip 2: Focus on Controlled Closure Exam questions often test whether candidates understand that premature closure should still be managed and controlled, not abandoned chaotically.
Tip 3: Know What Gets Produced Even in premature closure, the End Project Report and Lessons Report are still required. The Project Manager still recommends project closure to the Project Board.
Tip 4: Understand Product Salvage Questions may ask about handling completed or partially completed products. Remember that valuable work should be preserved where possible.
Tip 5: Recognize Scenario Clues Look for phrases like business case no longer viable, project terminated early, external factors forcing closure, or corporate decision to stop - these indicate premature closure scenarios.
Tip 6: Benefits Review Plan Adjustment In premature closure, the Benefits Review Plan may need significant revision or may become irrelevant if no products are delivered.
Tip 7: Link to Exception Management Premature closure often follows an exception situation where the project has gone beyond its tolerances and recovery is not feasible.