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This paper investigates how an externally imposed programme with the objective of improving the income of the poor is measured and managed by a public agency in Malaysia.

A qualitative case study approach is used in this research. The data were collected over a three-year period with interviews conducted with key officers at various levels ranging from the Ministry to the agency responsible for implementing the programme.

The introduction of the programme into the organisation's activity was loosely coupled, reflected by the way in which the programme was being implemented. There was some inter-dependency between the three hierarchical levels in terms of their performance measures and targets, responsibilities and reporting. There were no significant changes to the organisation's practices and weak linkages between the programme's objective, the formulation of indicators and the way the information was used in performance assessment. The lack of integration of the programme resulted in high importance being attached to measurement and reporting, rather than focusing on the achievement of the programme objective.

This paper contributes to understanding the performance management issue regarding the vertical and horizontal coupling of a system in relation to an externally derived programme.