What metrics do universities use to evaluate their performance?
The strategy of my UK university seems to be to improve on all available metrics that do not require them to spend more money. At our most recent faculty meeting we were told that we needed to simultaneously increase our student numbers, increase our admissions standards, increase the number of contact hours, and decrease our average class size. They also pointed out that we should also strive to increase our grant capture and publication rates.

I think from an inward facing perspective universities evaluate academic staff on on whatever makes them look the weakest, while from an outward facing perspective they evaluate themselves on whatever makes them look strongest.