Strategy guru Michael Porter describes the foundation of strategy as the "Activities" in which an organization elects to excel. If the foundation of strategy is as Porter maintains the "Selection and execution of hundreds of activities", then strategy cannot be limited to a few people at the top of an organization. Strategy must be understood and executed by every one. The organization must be aligned around its strategy. Performance management systems are designed to create organizational alignment. Herein lies one of the major causes of poor strategic management. Most performance management systems are designed around the annual budget and operating plan. They promote short-term, incremental tactical behavior. While this is a necessary part of management, it is not enough. You cannot manage strategy with a system designed for tactics. The BSC is an aid in creating a "balance" among various factors, which share a view of the organization's strategy for its future development. The BSC links short term operational control to long-term vision & strategy by focusing on a few critical Key Performance Indicators in target areas and forcing to control & monitor day -to-day operations as they affect development tomorrow.
In a survey conducted The Gartner Group estimates that at least 40% of the Fortune 1000 will have