Many of the pressing problems in society are complex and ill-defined. This question theusability of pre-existing organizational arrangements and governance models in the publicsector. To address these “wicked problems”, there is a need of governance models that arecapable of coordinating vertical as well as horizontal decision-making in and betweendifferent authorities, combining various financial efforts, and coordinating differentprofessional competences (Klijn & Koppenjan, 2014). In this paper we analyse such anattempt within the Swedish well-fare sector; the emergence of a multi-level hybridorganizational structure, called Coordination Association (CA). CA consisting of four mainactors responsible for rehabilitation within the Swedish welfare system, that is, the SocialInsurance Agency, the Swedish Public Employment Service, representatives from regionalhealth care and the municipalities. CA also collaborate to a lesser extent with actors fromNGO and private sector.Rhetorically, it is often said that different governance regimes replace each other (ClassicalPublic Administration (CPA) with New Public Management (NPM) and NPM with Newpublic governance (NPG)), when, in practice, they coexist and jointly creates increased“control-congestion” (Osborne, 2006; Torfing & Triantafillou, 2016). There are severaloperating steering ideals within CA creating similar congestion, such as bureaucracy,management by objectives and peer control. Each one, drawing attention to the need for eitherstandardization or flexibility, as well as internal or external aspects of control. There are alsoideas such as the notion of learning organization, which puts focus on operationaldevelopment and the need for increased strategic awareness among the concerned.Hence, in the paper we describe and analyse the hybridized governance model that emergeand assert itself in this new organizational setting. We describe how the different and partiallyoverlapping governance and control systems of the involved parties are merged and how anew hybridized system with slightly different claim and time horizon develops. How can thisnew system facilitate the development of new common bureaucratic standards, new jointobjectives and performance indicators, new cross-professional norms, and finally, enhancedstrategic awareness about CA:s institutional conditions? We also discuss how differentdilemmas of control are handled in this process.