This book is intended for students and practitioners who work actively in developing, using, and assessing performance management systems for the construction of successfully functioning organizational practices. Organizational management personnel will hold many beliefs about how the organization for which they work functions. Such beliefs are constructed over time, tested out, revised, and fine-tuned on the basis of their experiences. Where beliefs are sound, intended action outcomes will be achieved, and when beliefs are unfounded, actions are likely to have unintended outcomes. Pragmatic construction is a philosophy that provides a basis for constructing and making explicit the beliefs that underlie management action. When a sound integration of four dimensions of reality—facts, possibilities, values, and communication—is achieved, then the consequent action is much more likely to result in the outcomes that management has intended. Based on the pragmatic constructivist conceptualization of human reality, this book develops concepts and methods that can be utilized for the effective performance management of organizational practices. It explains the core concepts of a pragmatic constructivist approach to performance management and provides specific applications of pragmatic constructivism for the core task of performance management action in a series of real-life case illustrations. More specifically, it addresses such topics as planning and decision making, performance management of investment center managers, strategic performance management, and operational performance management.