Every ordered society is based on a strong public administration. The aim and purpose of public administration is to provide service to its citizens. The system of administration based on traditional hierarchical-birocratic historical foundations can in no way serve the contemporary society. Therefore, it is necessary to establish a system that corresponds to the rules of management and operation in the modern business sector, based on planning, execution, monitoring and controlling the company's performance and available assets. Educated and motivated management of public administration can and must be the initiator of the necessary changes and restructuring of the administration towards a more efficient and more effective service that can generate positive social and economic progress. Public administration must be a factor that generates the way out of a crisis, not a factor that generates the crisis. A prerequisite for achieving this claim is a knowledgeable management of the public administration that will make it readily available and effective service for all residents. Subsidiarity and functional and financial decentralization are preconditions for effective public administrations. Effectiveness and efficiency of business processes are the function of educated, organized and motivated people, while business communications and applied information technologies are only a catalyst of this process, and must necessarily become a subject of interest of top-management. Management is a tool of all business functions and a basic structural element of business processes and performance management optimization. Well-defined, strategic approach to business communication at all levels and between all participants of a business process, regardless of the implemented communication technology and management knowledge and skills, is a precondition for a quality restructuring. Implementation of new technologies, knowledge and skills is directly proportional to the level of education and competence of the personnel who by rising the quality of public services also directly affect the interest and involvement of end users into implementation of projects at the local level. Highly productive business communication directly affects organisational support to making decision and to the performance of the members of local and regional self-government.