The Australian tertiary education sector has been experiencing transformational change for many years driven by shifts in public policy and funding, emergent competition on an increasingly international scale, a seemingly never-ending number of universities restructures, and the sudden rise of online teaching forced upon by the global COVID-19 pandemic. This high level of environmental uncertainty suggests that if universities want to remain competitive, they might need to reconsider their strategies through adopting a dynamic capabilities (DCs) approach, such as outlined in this paper. This research is built on Teece et al.’s DCs model to examine an Australian university between 2012 and 2021. This research adds to our understanding of DCs by developing a metaphorical Cogwheel Model of Dynamic Capabilities that captures DCs’ complex and dynamic process. This model has implications for leadership and managerial practices, especially when organisations seek to navigate a strategic pathway into the future.