While the effects of governance reforms on research have been widely discussed, little is known about their consequences for teaching at universities. This study examines the issue by considering competitive funding programs for teaching currently being introduced in German universities using interviews to explore why universities introduce competitive funding programs for teaching and why academic staff participates. The findings illustrate narratives that are interpreted via Mintzberg's conception of 'professional bureaucracy' (1979). Funding programs appeal to academics' research identities, enabling them to utilize such programs autonomously for their benefit. The study concludes that funding programs are attractive because of their ability to foster innovative teaching and are particularly suitable semantically as they enable both university management and staff to pursue their multiple interests. University governance in the form of funding programs for teaching ultimately affects teaching, leading to specific forms of teaching governance and contributing to ongoing changes in academic identities.