Institutional Performance Management (IPM) systems aim to improve the general performance in the organizations, institutions, great and multi-national companies throughout identify strengths in performance in order to maximize its outputs benefits, and also, to identify weaknesses to determine the suitable plans for reduce their risks in the future. Balanced Scorecard (BSC) is a performance management methodology used to identify, improve, and control a business's various functions and resulting outputs. It is a common widely applied among international organizations, companies and public agencies in the world. This study investigated the reality and the importance of IPM systems in Libyan universities, where, a survey was conducted in four main Libyan universities throughout a designed questionnaire to employees and faculty members to find out their opinions about reality of IPM at their university. The results showed that a high percentage, exceeding (82%) of the research sample size, agreed that the IPM at their universities considered a new idea, also, showed that the university's experiences in applying and implementing an IPM methodology are limited or no experiences in those fields. In addition, the results cleared the need and importance of applying BSC to improve the performance that actually will contribute the quality of the universities outputs. This confirms the awareness of those surveyed about the importance and value of their universities adopting the IPM methodology for its benefits to the university and the workflow in implementing its ambitious plans.