The demands being placed on municipal governments have increased dramatically over the past several years. In the face of both budget constraints and an increased burden of public service delivery with the trend toward greater federalism, cities are being pressured to raise efficiency. Higher consumer expectations of service quality, the growing heterogeneity of urban areas, and the accelerating pace of economic change are, meanwhile, increasing demands on city governments’ flexibility and responsiveness. A variety of organizational and management innovations are improving cities’ ability to cope with this more challenging environment. These innovations include participatory strategic planning, business process improvement techniques, teaming and teamwork, effective use of information technology, and employee involvement and empowerment. Drawing on the literature on high-performing organizations, discussions with officials in innovative cities, and expert interviews, this report creates a framework for supporting innovation in South Gate. Other cities should be able to draw on elements of this framework to critically analyze their own operations.