Can Outsiders Help Build State Capability? Lessons from Ted Lasso

Abstract

Many states possess substantial capacity but experience gaps between potential and performance. This paper argues that the gaps reflect differences in state capability, defined as the empowered ability of state agents to transform capacity into performance. Drawing on nearly two decades of experience with Problem Driven Iterative Adaptation (PDIA), the paper examines how state capabilities develop and what role outsiders can play in supporting their development. PDIA combines action learning, through which insiders build capability by working on real problems, and action research, through which outsiders learn about capability by accompanying these processes. Thus, capabilities emerge through repeated cycles of action, reflection, experimentation, and adaptation. The paper also uses episodes from the television series Ted Lasso as a metaphor for this process, illustrating how a coach from the outside contributes not by providing solutions but by creating conditions in which individuals and teams learn, adapt, and discover their own capabilities in and across multiple moments. The findings challenge conventional approaches to external assistance. Capability is not built through products, plans, or technical advice alone, but through the relationships, experiences, and learning processes that enable state agents to transform capacity into performance.