The Development of Network Transformational Programs for Distressed Companies’ Rescue on the Example of Engineering Industry

Abstract

A mechanism for managing transformation programs for the rescue of distressed companies is suggested and based on the adaptation of the project management algorithm, including: 1) formation of a list of projects in the areas of market development, business process improvement, resource optimization; 2) establishment of interconnection and mutual influence of projects based on a network approach; 3) prioritization of projects by assigning network ranks. In contrast to the traditional approach to understanding the crisis management program as a linear set of projects, the author uses a network approach that allows us to consider the projects included in the program as its interrelated components. Taking into account the mutual influence of each project on others makes it possible to take a systematic look at the implementation of the crisis management program, increases the chances of not missing important elements and predicting the consequences of applying not only individual measures, but also their complex (for example, to see that the failure of one project will lead to the inability to complete others), unwinding the tangle of relationships taking into account the priority of projects, their ranking. The proposed methodological approach is tested on an illustrative example of engineering enterprise.