This study included an analysis of the trend of performance indicators for the technical college sector of higher education in South Carolina. In response to demands for accountability and transparency in higher education, the state of South Carolina developed sector specific performance indicators to measure various educational outcomes for each of the 34 public colleges and universities in the state. Performance indicators allow an institution to compare its position in key strategic areas to peers, to past performance, or to previously set goals. The state assigned 13 performance indicators to the technical colleges. The study analyzed six specific indicators which measure faculty credentials, faculty compensation, program accreditation, graduation rates, graduate scores on professional examinations, and institutional accessibility. The results reflected on the effectiveness of the performance system and its impact on two-year technical colleges. The overall mean of the trend data changed from 2.645 in 1998-1997 to 2.703 in 2004-2005. The researcher found that there was a very significant curvilinear relationship between the variables. The average score decreased until year 4 then increased steadily thereafter. The study was conducted in two phases, where the second phase was built upon the first phase. Phase one involved statistical testing for the differences in the means of the performance indicators among the colleges. One-way ANOVA along with Tukey's and Games-Howell multiple comparisons statistical techniques were used to test the hypotheses for each of the six performance indicators. The results of the statistical analysis were mixed. Outcomes supported the null hypothesis that no differences in performance, as measured by the indicators, existed between the technical colleges in terms of faculty credentials, graduation rates, and accessibility to the institution. However, the results refuted the hypothesis that no differences in performance (as measured by indicators) existed between the technical colleges when it comes to faculty compensation, program accreditation, and scores of graduates on professional examinations. ANOVA and multiple comparisons tests Tukey's or Games-Howell's established that significant disparities remain among the technical colleges in these critical success areas. In phase two of the study an online survey was administered to the senior administrators of the selected technical colleges. Analysis of the survey results highlighted the strengths and weaknesses of the performance system as it relates to the critical success areas of technical colleges. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com/en-US/products/dissertations/individuals.shtml.]