Presents a theoretically based practical example of an organizational development process in the Austrian public administration from 1987 to 1994/95. Discusses a large scale reform endeavour, Verwaltungsmanagement, on a federal level. Comments on the strengths and weaknesses of the overall project goals and the improvement in effectiveness and efficiency of the chosen project steps. The key words of the project were performance accounting and performance responsibility. Suggests that the term Verwaltungsmanagement indicates that the focus of the reform on a management orientation was necessary as well as fashionable. Discusses the contents, organization, methods and procedures, main results and further outcomes of this important and controversial project.