The importance of transnational programmes as part of the internationalisation of higher education has grown rapidly in importance in recent years. In this paper, transnational higher education is defined as the delivery of programmes overseas by a parent institution either operating directly or in association with an international partner. Whilst such programmes have been considered from a paedagogic perspective, their impact on institutional management is under-researched. Yet, it is clear that management practice is critical to success or failure. This paper is based on a detailed analysis of institutional audit reports prepared by the Australian Universities Quality Agency in the period 2008-12. The reports are used to identify key issues for institutional management. Building on this analysis, the paper aims to offer a theoretical insight into governance and leadership of transnational programmes and thereby provide practical guidance for strategy formation.