Initial Teacher Education remains the focus of policy reform and research in Australia with the broad aim of improving the quality of pre-service teacher education. There remains dispute about limited evidence justifying ongoing reforms, particularly in relation to gaps in understanding how providers and schools work collaboratively in the joint activity of ITE. This paper argues for the potential of Change Laboratory (CL) methodology in contemporary educational research. The research examined the implementation of CL methodology in an Australian ITE program. Participants included 13 school-based and university-based educators. Participants were required to co-design a unit of work for an ITE course. Drawing on Cultural Historical Activity Theory (Engeström, 2001), this research investigated how a university and school worked across organisational boundaries. Findings identify an alignment of theory and practice, where the CL methodology enables participants to work in new ways supporting a collaborative approach in the preparation of teachers for the workforce.