This paper examines the conceptual qualities of the framework of ‘objective and results‐based management’ implemented by Danish governmental institutions for the effective performance management of Danish university institutions. Drawing on pragmatic constructivism, we make a conceptual inquiry into whether this framework contains conceptual qualities that may form the basis for effective performance management of universities. The analysis reveals that the conceptual structure of the model features numerous poorly outlined concepts and mismatches, which gives rise to a language game of pseudo‐realism that is liable to produce illusory control practices. We show that poorly developed performance measurement concepts create an environment wherein top managers are not made accountable for results, thus generating a culture of delusions and arbitrary power. We also find a circumvention of the principal–agent model. The assumption of Danish governmental institutions seems to be that management has access to more information about alternative courses of action and their consequences than university scholars. The study adds to the methodological apparatus to conceptualise, understand, and analyse the effectiveness of organisational practices of performance measurement in public sector activities.