Revisiting project approach usage in the strategic management of a major city

In a stable socio-economic situation, management tools such as long-term programs and plans of city development strategies implementation used in practice, in conjunction with the budget and the general plan allow to realize the targets. However, in modern trends of society development, these tools lose their effectiveness. The authors of the article put forward and prove a hypothesis that it is project management in strategic planning and ensuring implementation of strategies for cities and other municipalities which is the most appropriate and effective tool in a dynamic environment. At the same time, to ensure competitiveness municipalities should develop projects in two strategic areas: infrastructure development and creation (urban hard); formation of a positive psychological climate in the city (city soft) by creating a fun, safe, active, energetic, friendly environment. Project approach in the development of a city strategy provides you with the following advantages: high flexibility when forming a list of projects; a high degree of freedom when choosing the forms, methods, resources, and participants of the individual projects; ability to harmonize the interests and combine the resources of different social groups (government, business, residents); ability to focus resources on the most promising projects having a specific start and end time; ability to easily organize interaction and a constructive dialogue between government, businesses and residents, asfar as it is much more interesting and easier to discuss concrete projects than general ideas. It is also important to put into practice citizens’ involvement into the strategic city management. The authors believe that today it is necessary to move from compromise search by the groups interested in the development of the city to the developing of partnerships where all participants reach their goals and win. The authors propose a general scheme of strategic management of development of the city or other municipality. The developed theoretical approaches are tested in practice in the city of Vologda. The obtained results concerning the dynamics of the main indicators of the city’s residents saving clearly illustrate the effectiveness of project management in the implementation the strategy for socio-economic development of the territory.