Impacts of performance management on transport planning organizations: evidence from England.

How can public sector organizations that are dependent on public funding, but expected to perform more like the best performing private sector organizations, adapt, modify and adjust themselves to meet the demands of key stakeholders and thereby maintain and increase levels of funding? This paper reviews the experience of local government in England where just such a transformation has been brought forward in the last decade. Since 2001, Local Transport Authorities have been required to develop a five year transport strategy with a series of key performance indicators and to set targets to be achieved. Over the past five years the levels of funding awarded to these authorities has been varied according to factors including the quality of the plan, the robustness of the analysis underpinning projections, the delivery of planned schemes and the achievement of the targets set. The paper presents the findings of two research projects conducted over the period 2003 to 2008 in collaboration with 20 local transport authorities. It describes the nature of the planning system which has brought about the organisational change. It then provides, on the basis of the research, a series of advantages and disadvantages which the new system has generated before presenting some of the solutions which have been developed to reduce the downsides. Some conclusions about the role of performance management and rewards and organisational targets are drawn both for the managing and participating agencies.