This article reflects on the idea that there is an omnipresent primary contradiction lurking at the bottom of every activity in capitalism. In doing so, it articulates the relationship between Marxism and Activity Theory. Whilst Marx’s ideas suggest that a trademark of capitalist social formations is the way surplus is pumped out from living labour, Activity Theory posits that the dual nature of commodities (i.e. their use and exchange-value) is the fundamental contradiction existent among all activities. The article argues that such distinction bears a direct impact on empirical research predicated on Activity Theory and goes on to consider the practical and theoretical implications of the Activity Theory’s departure from Marx’s ideas. The point is illustrated with an example of the challenges faced by the author while conducting an activity theoretical field research attempting to identify the primary contradiction in the activity system of a public organisation in the UK.

In recent years, the English government has been using competitive elements in the process of allocating public funds through policy. Front-line workers struggle with the limitations imposed by such a model. A qualitative case study was conducted to investigate the impact of a new performance-based policy on front-line workers of a public service called Liaison and Diversion. The findings demonstrated that professionals have been adapting the policy to local circumstances found at the street level. We argued that adaptation is a form of employee-based innovation that optimises the use of scarce resources and customises services to the clients.

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In England and Wales, Liaison and Diversion (L&D) services work to facilitate integrated rehabilitative interventions orchestrated between Criminal Justice and Welfare systems to improve health and social care outcomes. A new L&D national model was introduced in 2014 to unify practice across all L&D sites. This chapter analyses the L&D’s historical activity before, during and after the process of implementation of this national model and provides a timeline whereby potential tensions and their underlying contradictions within and between the L&D and neighbouring services activity systems are identified. A case study of an L&D service in southern England is used by way of illustration and Cultural-Historical Activity Theory (CHAT) articulates the complexity of interactions between the professionals at the street-level. Our findings showed that fragmented information technology (IT) systems, both intra- and interagency, have been particularly problematic in this setting and that the national model was not apt to transform this situation. Fragmentation hinders information sharing and ultimately affects professionals’ capacity to collaborate. We suggest service providers at a local level engage in a dialogue with one another and that they are in a better position to govern local practices instead of having policy enforced unilaterally top-down.