This article focuses on the co-operation between the Swedish National Agency for Education and school actors at the municipal level, examined from the latter's perspective, within the context of a state-initiated school improvement programme, namely Co-operation for the Best School Possible (CBS). Co-operation between different levels of the school system is a neglected but essential aspect to analyse in a decentralised system such as Sweden's, which is showing signs of re-centralisation. Empirically, the article is based on interviews with local actors in a small municipality participating in CBS. The interviews were part of a case study, and the analysis was guided by the theory of soft governance, Vedung's concepts of sticks, carrots, and sermons as policy instruments, and Weick's concept of sensemaking. Sensemaking, evident in the case study as a retrospective communicative notion, was employed to capture the local actors' stories of how they perceived CBS. The connection with past experiences also played a part in their sensemaking since a clear history exists and was noted between the state and municipal levels. In conclusion, the analysis shows that CBS used sticks, carrots and sermons to steer municipal school actors towards the right path as regards school improvement.