Modern public organizations should be familiar with the internal and external factors that affect their business. Striking a balance between these factors is the main prerequisite for building a successful business model in the current conditions of rapid change and increased competition. The aim of this study is to determine the impact of strategic planning on management of public organizations. An empirical research was conducted in public organizations in Bosnia and Herzegovina. The results of the research indicate that the use of strategic planning in public organizations enables more rational, efficient and effective management of organizational resources. Strategic planning defines certain aspects of the performance measurement, which reduces the possibility that managers allocate resources on the basis of their subjective preferences or feelings, ambitions or as some kind of response to certain political pressures. This contributes to a transparent, rational, more efficient and effective management of the organization in providing quality public services. KEY WORDSstrategic management, strategic planning, public organization, management CLASSIFICATION JEL: H1

Background: New methods, means and approaches for increasing the efficiency of public administration are constantly being discovered. This paper considers the possibility of applying a new form of organisation-known as the process organisation structure-in public administration. Objectives: The first aim is to conduct research on the extent to which work processes in public administration in Bosnia and Herzegovina are process oriented. The second aim of this paper is to measure the efficiency of public administration in Bosnia and Herzegovina. Methods: The research was conducted through a questionnaire survey and included all governmental levels in Bosnia and Herzegovina. The study involved 112 public organizations' managers in Bosnia and Herzegovina. Results: The first result is that the concept of business process organization has different values depending on the level of government. Another result is that the success of public organizations is different at different governmental levels in Bosnia and Herzegovina. Conclusions: This paper shows that the process-oriented management can be applied in public administration with the result of increasing the efficiency of organisations, thus increasing citizen satisfaction with public services. This paper should encourage managers and leaders to consider applying this model in the public sector, i.e. in public administration.