This paper presents a case study examining the role of performance measurement systems in setting organizational 'direction'. There is a growing concern in the existing literature to link the development of organizational 'direction' with performance measurement systems. Furthermore, the alignment between organizational 'direction', strategy and performance measurement is an area of increasing interest for both academics and practitioners. However, there is no adequate research recorded in the literature on the use of the performance measurement systems and the potential impact that performance measurement can have in setting the organizational 'direction'. This study reports the findings of a case study from one of the leading academic institutions in the UK, the University of Warwick, presenting the main characteristics of its performance measurement system and attempting to explain the connection with setting the university's 'direction'.