Strategic management is the process of self-government, which relies on modern management methods and is based on the concept of New Public Management. The most frequently used methods in the Czech environment of medium and small municipalities are methods BSC - Balanced Scorecard and MBO - Management by Objectives. The aim is to improve the performance of public administration through the use of management methods used by the private sector. This paper aims to show the specific example of the creation of village development strategy through the Balanced Scorecard method and find the limits and barriers to its use at the local government level under the Czech conditions. Strategic management is the process of self-government, which relies on modern management methods and is based on the concept of New Public Management. The most frequently used methods in the Czech environment of medium and small municipalities are methods BSC - Balanced Scorecard and MBO - Management by Objectives. The aim is to improve the performance of public administration through the use of management methods used by the private sector. This paper aims to show the specific example of the creation of village development strategy through the Balanced Scorecard method and find the limits and barriers to its use at the local government level under the Czech conditions.