Abstract: Humanistic economy represents a new development paradigm that deeply integrates culture and economy. Correct understanding of governance performance serves as the fundamental guide for party members and cadres to fulfill their duties in the new era. This article elucidates the theoretical mechanism by which correct understanding of governance performance guides the development of a humanistic economy from three progressive dimensions: value logic, goal logic, and method logic. Value logic addresses "why it leads", indicating that both share the fundamental goal of "benefiting the people"; goal logic addresses "to what extent it leads", indicating that both pursue a "high-quality, sustainable" development realm; method logic addresses "how it leads", indicating that both require a practical path of "adhering to principles and innovating". Taking the practice of humanistic economy in Hangzhou as a case study, this article reveals how correct understanding of governance performance plays a leading role in aspects such as "emphasizing both potential and manifestation", "combining establishment and destruction", and "balancing short-term and long-term considerations". The study finds correct understanding of governance performance serves as a "value navigator", "goal locator", and "methodological toolbox" for the development of a humanistic economy, while a humanistic economy serves as a "practice field" and "testing ground" for correct understanding of governance performance. From theoretical analysis and case verification, four path insights can be distilled for guiding the high-quality development of the humanistic economy with a correct understanding of governance performance: Adhering to the value origin and integrating "benefiting the people" throughout the entire process; cultivating historical patience and laying a solid foundation with a long-term perspective; grasping the essence of methods and overcoming development bottlenecks through adhering to principles and innovating; Expanding the spatial-temporal framework and enhancing sustainability by balancing short-term and long-term considerations. This study provides theoretical support and practical reference for promoting the high-quality development of the humanistic economy with a correct understanding of governance performance across various regions.