Foundations of Strategic Planning for Productivity Improvement

A variety of prevailing concepts and measures of “productivity” fail to satisfy management's need for practical productivity analysis systems which can be effectively integrated into company performance evaluation and strategic planning. An analytical framework can meet these needs by combining the “network of productivity relationships” with the “structure of cost relationships” and the “managerial control ratios,” thus paralleling the hierarchy of management's evaluation criteria in appraising past results and in establishing future targets.