Integrating Physical with Financial Measures for Managerial Controls.

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Abstract
The article asserts that the responsibilities of operating management are sufficiently differentiated from those of lenders and investors to necessitate resort to a similarly differentiated structure of performance evaluation criteria. A chart is presented showing business activity as a four-stage process consisting of inflows of financial resources from investors and lenders, the conversion of these into physical inputs, the transformation of such inputs into physical outputs, and the conversion of physical goods and services through sales into financial outflows which are allocated to lenders, investors and fed back into the business. An overview of the management of this process is presented.

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