4 Key Principles for Managing Project Cancellation
It happens—a project you felt confident would move forward gets canceled. But how do you handle a project cancellation without losing momentum on other initiatives? And how do you prevent this failed project from draining resources from your broader portfolio? When tasked with shutting down a project, keep these four principles in mind to ensure a smooth and efficient cancellation.
1. Act Quickly
When a project cancellation is confirmed, immediately switch to “kill” mode. Avoid wasting further energy or resources. Reallocate team members to other active projects as soon as possible, leaving only a skeleton crew to manage the shutdown activities. This will minimize any disruption and keep other projects moving forward.
2. Announce It Publicly
Be transparent with your team and all stakeholders. Start by informing your project team, then notify business partners, collaborators, vendors, suppliers, and end users about the project cancellation. Don’t assume everyone knows—sometimes even high-level stakeholders can be unaware. Publicly addressing the situation will ensure there are no misunderstandings.
3. Handle the Shutdown Thoughtfully
Before fully decommissioning the project, carefully evaluate your obligations. Which contracts or agreements need to be terminated, and what are the costs of doing so? Determine how long minimal staffing or resources are needed to complete the shutdown process. Managing the project cancellation thoughtfully can help reduce unnecessary expenses and legal risks.
4. Plan for Next Steps
Once the project cancellation is underway, start considering how the organization will proceed without the project’s original goals being met. Were there vendor agreements paused that now need to be renegotiated? Are there temporary solutions that need to be re-evaluated for long-term use? Assessing these factors early ensures your organization can move forward smoothly post-cancellation.
Managing a project cancellation efficiently requires swift action, clear communication, thoughtful planning, and a focus on future steps. By following these principles, you can minimize the impact of a canceled project and maintain momentum across your portfolio.
PMAlliance uses a team of highly experienced and certified professionals to provide project management consulting, project management training and project office development services.