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Quality of service in IP networks necessitates the use of performance management. As Internet continues to grow exponentially, a management system should be scalable in terms of network size, speed and number of customers subscribed to value-added services. This article proposes a flexible, scalable, self-adapting model for managing large-scale distributed network. In this model, Web services framework is used to build the software architecture and XML is used to build the data exchange interface. Policy-based hierarchical event-processing mechanism presented by this paper can efficiently balance the loads and improve the flexibility of the system. The prediction algorithm adopted by this model can predict the network performance more effectively and accurately.