This report summarises how to assess and compare dynamic capabilities across city governments, provides an assessment of dynamic capabilities in a selected sample set of cities, and sets out future work that will explore how to create an index that can be scaled to thousands of cities and used to effectively build capabilities, positively transforming cities and creating better lives for residents. 

In response to mounting pressures, cities are turning to innovative policies, tools and practices. But underneath all these visible initiatives lies a shared fundamental: dynamic capabilities. It is these capabilities that enable cities to sense opportunities and threats, develop and adopt new approaches, and connect policy with delivery to tackle complex challenges. Dynamic capabilities enable city governments to adapt and transform to take advantage of new opportunities and to solve both everyday problems and emerging challenges.

Drawing on extensive work at the frontline of city governance – 45 cities across 22 countries and more than 100 additional urban experts – the report identifies five core dynamic capabilities:

1. strategic awareness – spotting problems and trends early
2. adjusting priorities – shifting focus when things change
3. building coalitions – working across silos and with the community
4. learning and experimentation – trying new ideas and learning what works
5. reconfiguring delivery – equipping teams to deliver.

These five dynamic capabilities do not operate in silos, but together form a continuous cycle of practice and improvement. 

The report is provided with a background paper outlining the methods, data, and findings behind the development of the Public Sector Capabilities Index.