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The purpose of this paper is to develop a model using resource‐based‐view theories of competitive advantage for application to the private sector as a basis for understanding managers' perceptions of high performance in a local authority. The model is evaluated as a substantive case against an English local authority.

The study investigated senior managers' perceptions of the capabilities and assets that their organisation required to achieve high performance relative to government performance criteria. Data were collected using a questionnaire that asked managers to indicate their notions of drivers for change. The key resources required for successful responses to these drivers were related to one of the four types of generic capabilities a priori outlined in the model, i.e. regeneration, leverage, transformational and privileged access. Subsequent interviews with the respondents explored further issues in greater depth.

Managers indicated their beliefs that “capabilities” based on “intangible organisational‐assets” are necessary for “sustained high‐performance”. This is consistent with the model proposed. Nevertheless, the findings also indicated that some assets, historically based, such as “reputation” and “partnerships”, are also important.

The paper critically demonstrates the usefulness of resource‐based‐view and dynamic‐capability theories when applied in a new context, i.e. English local government.

The paper reveals significant organisational development and senior management leadership issues for English county councils, in this case, in developing and sustaining high performance.

The paper is innovative in reviewing, developing and applying a resource‐based‐dynamic‐capability model to research local government organisational management.

Life is made up of debits and credits, as Kipling wrote, long accounts have to be paid — mistakes, misconduct, misdeeds, all the mischief and harm they cause, exact payment which has to be met by someone, not necessarily those that cause the trouble; all too often by innocent victims. The recent industrial strife, destruction and violence, despite the plausible excuses for it, will have disastrous results, a colossal debit in the nation's accounts; and the mass of the people, the vulnerable groups including several millions of elderly pensioners, the handicapped and sick, are under no illusions who will have to pay. The posturing defiance — “heads held high”, bands playing martial music — the complete lack of concern or regret for others will make no difference to the overtaking retribution.

Cary Cooper, CBE, is Professor of Organizational Psychology and Health at Lancaster University and Director of Robertson Cooper Limited. Formerly he was the BUPA Professor of Organizational Psychology at UMIST. He is a Chartered Occupational Psychologist and a Fellow of the British Psychological Society. He is widely acknowledged as a world leading authority on workplace stress. He is the author of an extensive and diverse range of over 300 publications. Here he answers questions about his work.