This report discusses the use of performance indicators (PIs) in higher education, focusing on definitions, frameworks, examples, and implications for universities. It notes that demands for accountability have led to intense interest in university performance measures, and that early indicators simply described the university or the system and hence had limited impact on policy or management decisions. True PIs are: (1) goal or result oriented; (2) have a reference point; (3) provide strategic information about the condition or functioning of an institution; (4) are evaluative; (5) are strategic, specific, policy-orientated, and issue-driven; (6) connect outcomes to structure and process, taking inputs into account; and (7) are used for improvement, enhancement, and positive reform. The report asserts that PIs can best be used for internal university purposes to enhance the quality of education, research, community service, and other functions. It argues that PIs are not absolute facts, and that they are best interpreted as indicative, suggestive, or diagnostic. (MDM)