14 May 2004
The economic development agency Scottish Enterprise (SE) has been told to review its performance management system following criticisms of the way targets are set and monitored.
In a report following a special audit examination by auditor general Bob Black, the Scottish Parliament's audit committee recommends that the review should focus on ensuring that targets are driving improved performance and that performance is being reported 'accurately and properly'.
Black reported earlier this year that targets were not sufficiently 'stretching', given that they were significantly exceeded over a period of years and that the number of targets reported as being achieved were subject to change.
In its report, the audit committee says that, as the purpose of the targets is to improve performance, it was difficult to see how this could be achieved by setting targets that were routinely exceeded.
'The fact that a high proportion of targets are being exceeded by a significant amount arguably indicates that the balance between targets being challenging and achievable is not yet right,' the report says.
However, the committee has welcomed SE's 'positive response' to the auditor general's audit and commended the agency for its detailed action plan and the candid evidence given to MSPs by senior management.
Black's inquiry followed weeks of media criticisms about the management of Scottish Enterprise based on leaked internal reports. Chief executive Robert Crawford denied allegations of mismanagement but stepped down from the post earlier this year saying he wanted to escape from the 'goldfish bowl' of the job.
PFmay2004
