An experimental police district was established that decentralized approximately one-sixth of the police agency's personnel. The experimental district promoted innovation through employee participation in decisionmaking about work conditions and the delivery of police service, management and supervisory styles supportive of employee participation and of community- and problem-oriented policing, and the implementation of community- and problem-oriented policing. The 3-year evaluation study compared outcome variables, measured before and 2 years after the implementation of the police district. Data collection methods included three surveys of police personnel, two citizen surveys, observations, structured interviews, and a review of agency documents and press coverage. Findings indicated that the Madison Police Department has succeeded in changing the internal culture of the organization to one in which employees feel involved in decisionmaking about their work. Decentralization made an important contribution to the process of creating the new management style and also contributed to the development of team spirit and processes. The effects of the change effort on the community are somewhat less dramatic, although a pattern of improved public attitudes was found, together with a statistically significant reduction in the number of reported burglaries in the area. Tables, appended survey instruments, and 67 references