This study examines the development of organisational renewal capability in the public sector and is based on a model of organisational renewal capability developed in a private sector context. Assessing the key strengths and weaknesses of renewal-related organisational capacities, our model depicts the resulting development process. We examine the model’s potential for the development of public organisations through the case of a single municipal organisation. The assessment and development process presented here is a promising method for public sector organisations. In addition, the long-term development process presented here can increase understanding on the part of organisation members of knowledge management in public organisations. This paper describes assessment and development of organisational renewal capability in public sector organisations.