This study investigates the performance management systems of a self-financed higher education institution in Hanoi, Vietnam by examining how non-financial measures drive financial measures, especially by integrating sustainable performance into the Balanced Scorecard (BSC) framework. Survey data collected from the institution’s current employees were analyzed using Smart-PLS software. The findings provide insights into a mechanism through which the learning and growth perspective and sustainability performance contribute to financial performance. Specifically, the study finds that the learning and growth perspective positively influences internal processes and customer performance, highlighting the importance of staff development and organizational capacity building. Secondly, sustainability performance positively impacts learner satisfaction, underscoring the value of incorporating sustainability principles within higher education institutions (HEIs). Subsequently, enhanced internal processes and learner satisfaction lead to improved financial performance. The research findings offer valuable insights into performance management system practices in the HEI context, particularly when an institution transitions to self-financing its operations.