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The purpose of this paper is to present the results of an empirical research examining how local agencies interpret and implement a policy instrument that aims at reorganising fragmented interventions for disabled people employment in Milan. The main aim of this research is to analyse the organisational difficulties and opportunities that this new employment instrument faces and how it changes the courses of action and organisational logics of the local agencies.

This issue is examined through the analysis of the design and implementation phases. The analytical framework used combines two concepts: capability and policy instruments. The empirical research is based on an in‐depth empirical investigation.

The paper shows that the Emergo Plan could not transform the way the agencies work: measures are bent and adapted to agencies' organisational routines or to labour market's logics and they do not guarantee adequate social support in order to promote disabled people's capabilities. This has consequences in terms of: chance of projects personalisation; participation and activation of disabled people; and job opportunities.

The paper focuses on one specific case study, the Emergo Plan, and the recipients were not interviewed. Further research is needed in order to assess the discussed issues at a more theoretical level and consider the beneficiaries' voices.

The paper presents some indications about the relation between public administration and local agencies and its implications and consequences in terms of organisational arrangements for public policies and related services.