In recent years, UK universities have become increasingly concerned with performance management. This trend reflects both growing competition and marketisation within higher education, and the increasing requirements for accountability. In response, institutions have begun to explore the application of formal methodologies for performance management, initially developed in business and industry. One such approach is the Balanced Scorecard. Based on a qualitative study of the application of the Balanced Scorecard in four UK universities and interviews with senior managers, the paper looks at the impact of this technique on the formation, monitoring and evaluation of strategy and policy; issues of motivation, implementation and format are also considered. The paper provides an insight into the application of new management techniques within higher education and identifies key issues to be addressed within the process. (Contains 3 tables and 1 figure.)