Abstract. The paper believes that dynamic capabilities of public organizations, founded upon able human resources and agileprocess, shall result on adaptive public policies, thus forming dynamic governance. The paper adopts the model developedby Neo and Chen (2007) in their study on the government of Singapore. The study object of this paper is public servicesin Jembrana, Bali. The paper combines both quantitative (SEM structural equation test) and qualitative approaches. Thequalitative method consists of in-depth descriptive analysis of interview responses and Soft System Methodology (SSM) todevise the public policy development process model. SEM structural equation test provides the correlation of (i) able people tothinking-again, (ii) agile process to thinking-ahead, (iii) agile process to thinking-across, (iv) thinking-again to thinking-across,and (v) thinking-again to thinking-ahead. Conceptual development model using qualitative SSM suggests complementaryrelations to SEM structural equation test, where dynamic capabilities are concentrated in the thinking-again aspect whereasthinking-ahead and thinking-across are concentrated in the initiative of Jembrana Regent. The qualitative-descriptive analysissuggests that the behaviour of the Jembrana Regency governance reflects the skills of developing dynamic capabilities: thinkingahead, thinking again, and thinking across. |