Performance management is the ‘Achilles heel’ of many reforms and public management practices and requires changes. Governance in general and co-production in particular impose an organizational setting which requires rethinking performance management, which is still conceptually embedded in New Public Management paradigm. This chapter builds on the latest co-production framework and service-dominant logic and outlines new challenges for rethinking performance measurement and management. It also discusses how public service design (PSD) may interact with them. As a result the need to shift between performance control loops has been emphasized, suggesting that service design may significantly support internal ex-nunc performance management. Although it should be facilitated in addressing some of the performance challenges, an outline of a framework for appropriate method has also been proposed.