Recent policy developments are changing the work of local education authorities (LEAs) in Wales requiring them to play a broader role in the community and a significant role in raising educational achievement. LEAs are obligated to set out their improvement targets in institutional plans and are called to account by external inspection, which focuses on the management of performance at all levels and stresses the need to establish appropriate management structures. The systems and processes for the performance management of LEA staff are therefore of interest and were the focus of the study reported here. The findings described in the article give insights into the management and organization of LEAs in Wales; performance management practice; the problematic nature of target setting; and the issues of recruitment, succession planning and the capacity of those who work in LEAs to fulfil their roles with authority. A model of performance management of staff in LEAs is presented. (Contains 1 table and 1 figure.)