Complexity as a service reform trajectory: dynamic capabilities for better public service outcomes

The CTOC contends that the effectiveness of services and interventions is determined not by the efficiency of internal processes, but by how effectively public service systems can engage with the innate complexity of outcomes. In this chapter we transpose the challenges posed by complexity into design parameters for public service reform. We draw from Teece et al’s (1997) theory of dynamic capabilities to articulate three core capabilities we consider necessary in tackling complex outcomes: stewardship, coordination, and adaptation. We argue that investment in and management of these three capabilities in consort could inform an alternative logic of outcome-focussed service reform.