This case study evaluated the influence of Tennessee\u27s performance funding policy as it was implemented at Walters State Community College (WSCC), as well as explored the factors that shaped the effects on the campus since 1979. The intent of the policy in Tennessee was to encourage institutional quality and instructional improvement through offering a portion of funding based on performance. It was found that performance funding was thoroughly engrained in the culture of WSCC and was a part of an overall institutional effectiveness program, which indicated a strong commitment to continuous improvement. College personnel were aware of the performance funding policy and understood its importance, but that there was a difference in the knowledge faculty had, compared to division deans and administrators. By in large, the results were taken seriously as demonstrated through the way data was used in decision-making. The motivation for WSCC\u27s continued involvement with performance funding through the years included: improvement, funding and prestige. Performance funding was seen as a point of credibility proving to civic and public friends that WSCC was very effective in educating students in that service area
