Research Paper: Performance management system design in a devolved organisation

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This paper is a case study exploring the design of a new performance management system for the UK Environment Agency (11,000 staff, more than 40 discrete management units). The approach adopted was based on best practice 3rd Generation Balanced Scorecard processes and lead to the creation of a total of 44 unique but strategically aligned Balanced Scorecards across the organisation - one of the most complex strategic alignment exercises of this type ever undertaken or reported about in this way. This paper, written jointly by staff from 2GC and the Environment Agency, explores the agency’s rationale for undertaking a redesign of its performance management systems, and how the design approach adopted is compatible with needs of the organisation’s devolved business units. The paper reports that the experience to date has been positive, and concludes with recommendations on future areas of research and ways to approach the issue of measure selection and use within complex devolved organisations.