This research examined postsecondary policy in Louisiana, which utilizes performance incentives, in order to: (a) provide clear distinctions among three commonly used types of performance incentives, and (b) use performance indicators defined in the LA GRAD Act to determine if Louisiana policy is primarily faculty oriented, state oriented, or client oriented. The author examined nuanced differences among three types of performance incentives: performance funding, performance budgeting, and performance reporting. As a case study, postsecondary performance policies in the state of Louisiana were situated in the performance incentive literature and analyzed using Burke and Associates' (2002) models of excellence. Categorical models are applied to the LA GRAD Act and will be applied to the subsequent legislation, commonly referred to as LA GRAD Act 2.0. Understanding the LA GRAD Act's orientation as a performance policy may help leaders of postsecondary institutions anticipate future policy directions and prepare for policy changes that will affect their institutions. This research is on-going as LA GRAD Act 2.0 was only recently passed in the 2011 legislative session.