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Closing a Project Process

Apply controlled project closure activities.

Covers preparing planned closure, preparing premature closure, handing over products, evaluating the project, and recommending project closure. Focuses on ensuring products are accepted, administrative closure is complete, lessons are captured, benefits reviews are planned, and appropriate closure activities are carried out regardless of project outcome.
5 minutes 5 Questions

In the context of PRINCE2 7, the Closing a Project (CP) process provides a fixed point to confirm that acceptance for the project product has been obtained and to recognize that the objectives defined in the Project Initiation Documentation have been achieved. Its primary purpose is to ensure a cle…

Concepts covered: Recommend Project Closure, Evaluate Project, Prepare Planned Closure, Prepare Premature Closure, Hand Over Products, Lessons and Benefits Review

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PRINCE2 Practitioner - Closing a Project Process Example Questions

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Question 1

A telecommunications infrastructure project has deployed new network equipment across 15 regional sites. All technical deliverables have been accepted by the operations team three weeks ago, and the Project Manager has released the technical team members to other assignments. The End of Project Report shows that project objectives were achieved within approved cost and time tolerances. During final closure preparations, the Quality Assurance Manager identifies that five lessons reports from individual work packages were never consolidated into the project's lessons log, and three risk reviews from the final stage lack documented outcomes. The Sponsor suggests delaying closure until all documentation gaps are addressed and properly archived. The configuration management system shows all product baselines are complete and handed over. What should the Project Manager recommend to the Project Board?

Correct Answer: Proceed with closure and assign the outstanding documentation consolidation to the corporate quality office or project support function through a formal handover action, ensuring lessons are captured for future organizational use while releasing project accountability.

In PRINCE2 7, project closure should occur when the project's products have been accepted and handed over, and the project has achieved its objectives within tolerances. The scenario confirms that:

  • All technical deliverables were accepted three weeks ago
  • All project objectives were achieved within approved tolerances
  • Configuration management shows all product baselines are complete and handed over
  • The technical team has been released

The missing documentation (unconsolidated lessons reports and undocumented risk review outcomes) represents administrative gaps rather than incomplete project deliverables or unachieved objectives. PRINCE2 emphasizes that lessons should be captured and shared with the organization, but this doesn't require keeping the project open.

The correct approach is to proceed with closure and formally hand over the outstanding documentation consolidation to an appropriate corporate function (such as the quality office or project support). This ensures:

  • The project can close as the essential completion criteria are met
  • Project accountability is properly released
  • Lessons are still captured for organizational benefit
  • The handover is formal and traceable

Delaying closure would unnecessarily tie up project resources and accountability when the fundamental purpose of the project (delivering accepted products) has been achieved. The documentation gaps should be addressed, but through a formal handover mechanism rather than keeping the project open.

Documenting the gaps only in the End of Project Report without ensuring proper consolidation would fail to capture valuable lessons for the organization. Retaining the Project Manager for additional weeks is inefficient when the core project work is complete. Assigning the work to Project Assurance is inappropriate as their role is to provide independent assurance, not to complete project management activities.

Question 2

A multinational insurance company completed a digital claims processing platform project four months ago. The original Business Case projected £3.2 million in annual benefits from reduced processing times, decreased error rates, and improved customer satisfaction scores. The project delivered all technical components within approved time and cost tolerances. The system was handed over to the Claims Operations Department, which has integrated it into their daily operations. A post-implementation review conducted last week shows that claims processing times have improved by 18% against a target of 25%, error rates have decreased by 22% against a target of 20%, and customer satisfaction scores have increased by 8 points against a target of 15 points. The Benefits Management Approach documented that achieving full benefits would require the Claims Operations Department to restructure team workflows, complete advanced user training for all staff, and retire three legacy systems. The Operations Department has completed the advanced training and retired two legacy systems, but workflow restructuring has been postponed until next quarter due to resource constraints and ongoing merger activities in another business unit. The Chief Operating Officer has questioned whether the project delivered value and asks you, as the former Project Manager now conducting the lessons review, how project success should be characterized in the End Project Report. What should be your primary position?

Correct Answer: Acknowledge that the project delivered its outputs successfully within tolerances, recognize that some benefits are emerging but not yet fully realized, and emphasize that complete benefits realization remains dependent on the business completing the planned operational changes and workflow restructuring activities that were defined as prerequisites in the Benefits Management Approach.

This answer correctly reflects PRINCE2 7's fundamental principle regarding project success and benefits realization.

In PRINCE2 7, there is a clear distinction between:
- Project delivery (outputs and outcomes within tolerances)
- Benefits realization (achieving the business case benefits)

The scenario demonstrates:
- The project delivered all technical components within time and cost tolerances (project success)
- Benefits are emerging but not fully realized (18% vs 25% processing time improvement, 8 vs 15 points customer satisfaction)
- The Benefits Management Approach clearly documented prerequisites for full benefits: workflow restructuring, advanced training, and retiring three legacy systems
- The business has only partially completed these prerequisites (training done, 2 of 3 systems retired, workflow restructuring postponed)

The correct position accurately characterizes the situation by:
1. Acknowledging successful project delivery (outputs within tolerances)
2. Recognizing partial benefits emergence (some improvements showing)
3. Clearly stating that full benefits realization depends on the business completing the documented operational changes

This aligns with PRINCE2 7's view that projects deliver outputs and early outcomes, but benefits realization often extends beyond project closure and depends on business adoption and operational changes.

The second option is incorrect because it inappropriately frames the situation as business underperformance and suggests projects should compel operational departments. PRINCE2 recognizes that benefits realization is a business responsibility, not a project enforcement issue. Projects enable benefits; businesses realize them.

The third option is incorrect because it overstates success by claiming benefits will 'naturally resolve' and suggesting one exceeded target (error rates at 22% vs 20%) compensates for significant shortfalls in the other measures. It also downplays the critical importance of completing workflow restructuring, which was documented as essential for full benefits.

The fourth option is problematic because it characterizes early results as 'positive trends in two of three areas' when actually all three areas show improvement but fall short of targets in processing time and customer satisfaction. More importantly, it suggests accelerating benefits through business-as-usual programs rather than recognizing these as planned, documented prerequisites that should have been part of the coordinated implementation approach defined in the Benefits Management Approach.

Question 3

A financial institution completed a mobile banking application redesign project fourteen months ago. The Project Manager documented lessons during closure about biometric authentication implementation, third-party payment gateway integration challenges, and the beta testing approach with selected customer groups. The Benefits Review Plan established measurement points at four, nine, and fifteen months to track active user adoption rates, transaction completion success rates, and branch visit frequency reduction. At the fourteen-month review, the Digital Banking Director reports that active user adoption reached 73% (exceeding the 62% target) and transaction completion success rates achieved 91% (surpassing the 85% target). Branch visit frequency, however, has decreased by only 13% compared to the forecasted 47% reduction. Analysis indicates that customers over 55 years old continue visiting branches for transactions they could complete via the app because they distrust mobile security for large transfers and prefer verbal confirmation from staff. Additionally, small business customers visit branches because the app lacks batch payment capabilities for payroll processing, forcing them to process multiple individual transactions or use branch services. Three branch managers have started hosting monthly 'digital confidence' sessions for older customers, demonstrating security features and walking through transactions, which has increased app usage by 34% among participants in those locations, yet this initiative remains informal and unscaled. The mobile development team discovered through app analytics that business customers abandon the app after attempting their third individual payment entry, but this behavioral insight was never captured in any formal documentation. The Innovation Division is preparing to launch eleven similar digital channel projects across investment platforms, insurance claims submission, and mortgage application processes. The original lessons log emphasized technical architecture decisions and authentication protocols but contained limited coverage of segment-specific usage barriers or building user confidence through experiential learning approaches. The Chief Digital Officer has requested updated organizational learning materials to guide the upcoming digital initiatives. What should be the Project Manager's PRIMARY consideration when enhancing the lessons repository?

Correct Answer: Capture the relationship between user demographic characteristics, confidence-building interventions that emerged post-implementation, and feature gaps for specific customer segments that influence channel adoption patterns, ensuring future projects address both technical functionality and behavioral adoption factors across diverse user groups

The correct answer focuses on capturing the relationship between user demographic characteristics, confidence-building interventions that emerged post-implementation, and feature gaps for specific customer segments that influence channel adoption patterns.

This is the PRIMARY consideration because:

  1. Lessons Must Be Actionable and Forward-Looking: PRINCE2 emphasizes that lessons should provide practical guidance for future projects. The Innovation Division is preparing eleven similar digital channel projects, and they need insights that address the root causes of the partial success - not just technical details or performance metrics.

  2. Addresses the Core Gap in Current Documentation: The scenario explicitly states that the original lessons log 'contained limited coverage of segment-specific usage barriers or building user confidence through experiential learning approaches.' This is the critical deficiency that needs correction.

  3. Captures Emergent Learning: The 'digital confidence' sessions that achieved 34% increased usage among participants represent valuable post-implementation learning that wasn't part of the original project plan. The behavioral insight about business customers abandoning after three payment entries was discovered through analytics but 'never captured in any formal documentation.' These are precisely the types of insights future projects need.

  4. Behavioral Adoption vs. Technical Delivery: The project succeeded technically (91% transaction completion rate) but partially failed in behavioral adoption (13% vs. 47% branch visit reduction). Future digital channel projects across investment platforms, insurance claims, and mortgage applications will face similar user adoption challenges across diverse demographics.

  5. Comprehensive View of Adoption Barriers: The answer encompasses three critical dimensions: demographic characteristics (over-55 customers), confidence-building approaches (the branch sessions), and feature gaps (batch payment capabilities for business customers). This holistic view is essential for organizational learning.

Why the other answers are less appropriate:

The second option focuses on technical architecture and authentication protocols in greater detail, but the scenario indicates these were already 'emphasized' in the original lessons log. Adding more technical detail doesn't address the identified gap regarding 'segment-specific usage barriers or building user confidence.'

The third option emphasizes recording quantitative achievements and recommending enhanced initial training programs. While metrics are important, this approach misses the emergent learning about post-implementation confidence-building interventions and doesn't capture the behavioral insights that explain why certain targets weren't met. It also assumes training during implementation would solve problems that actually require ongoing support and feature development.

The fourth option suggests establishing demographic analysis, transaction type analysis, and technical feature enhancements with formal scaling procedures. While comprehensive, this approach is more about creating new analysis and procedures rather than enhancing the lessons repository with the learning that has already occurred. It's more operational than knowledge capture, and doesn't emphasize the relationship between these factors that future projects need to understand.

The PRIMARY consideration must address the explicit gap identified in the current lessons documentation while capturing the valuable emergent learning that explains both successes and shortfalls in ways that will genuinely guide the eleven upcoming digital channel projects.

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