ABSTRACT

The third ideal type is called Performance Management, which establishes a full programme of managing performance where performance information is systematically and coherently generated, integrated and used. This modelled ideal type stage is coherent, comprehensive and consistent, but also aware of contingencies, conditionalities and ambiguities within the performance-based control systems. There is a functional and optimal equilibrium between trust-based and performance-based control systems, even if there are tensions. The ultimate challenge is the sustainability of a complex performance management system within a governance context. As Table 6.1 shows, in comparison to the previous ideal type, there is a functional and hierarchical integration of measurement, incorporation and use of performance. Measuring is elevated to a higher level since indicators and measurement systems are not just technically sound and functional, but also legitimate. The process of incorporation of performance information relies on quality models, and takes into account the need to match supply and demand. Using performance information includes a systematic comparison of results, a coherent vision of learning to improve, and a strategy of change that is externally oriented.