Successful co-ordination of workforce development and economic development programmes can help local areas better compete in a global economy by responding more effectively to the needs of workers and businesses, encouraging more innovative practices and entrepreneurship, promoting social cohesion, leveraging government resources by partnering with non-government organisations, and instilling more local ownership in local decision-making and strategic initiatives. However, the potential of horizontal co-ordination among local agencies and organisations has not yet been fully realised. More than a simple restructuring of government, rather it requires a cultural transformation among management, staff, and policy makers. This means greater attention to customers, the balance between accountability and flexibility, appropriate mechanisms and incentives, performancebased monitoring, strategic planning and goal setting, alignment, strong leadership, and trust among partners.