AbstractThis chapter explores the “theory of action” underlying the Swedish government’s national school improvement program called Cooperation for Better Schools. We discuss particularly the assumptions about the roles and responsibilities of key stakeholders, including schools, school districts, and universities. Our analysis focuses on the issue of institutional capacity for sustained system improvement. In this regard, our approach draws on the perspectives associated with contemporary policy analysis, which includes greater attention to qualitative and interpretive methods to understand the complexity of policy-induced change in contemporary society. We start by describing the project structure and our method. Thereafter, we analyze the government’s understanding and arguments for why it is important to help underperforming schools, before we give examples about how involved actors define problems and solutions in project documents. In the conclusion, we highlight strengths and deficits in the improvement process.