In this paper we present a novel method for the numerical solution of dynamic optimization problems. After obtaining a first solution at a coarse resolution of the control profiles with a direct sequential approach, the structure of the control profiles is analyzed for possible switching times and arcs. Subsequently, the problem is reformulated automatically and solved as a multi-stage problem, with each stage corresponding to a potential arc. Order and resolution of the control parameterization are adapted to the type of the particular are. By means of some case studies we show that accurate solutions with only few degrees of freedom can be obtained. (c) 2005 Elsevier Ltd. All rights reserved.