According to many authors, the New Public Management is an approach to the management of organizations that provide public services, i.e. used in public services (ministries, state agencies, regional and local governments) in the world and in Croatia. The application of concepts and models of new public management enables public administration organizations to better organize their business, generally being more rational in their business or in management of all forms of scarce resources, increase the quality of service delivery to end users and implement necessary public administration reforms. The core of the ideology that can be considered influential in the development of public sector reform programs in the 1980s and 1990s had the main premise that the public sector was inefficient. Managing it did not lead to cost reduction or quality improvement, so a way was sought to change that. Similar problems exist in Croatia today. The reform of the Croatian administrative system should primarily be viewed through the experiences of countries from Western European based on the long tradition of their public administration and adjusted according to the principles of models harmonized with Croatian conditions. Croatia consists of twenty counties with the City of Zagreb, and as many as 555 local self-government units. In the public space, there is a great deal of discussion about reducing the number of local self-government units and reducing the regional ones in order to improve the efficiency of the state and state administration itself. Public services certainly need a different model, such as public-private partnership, and the level of competencies, given the speed of changing needs of society, but also technological and IT innovations, should certainly go higher and better. In view of all the above, the methods of the New Public Management should enable more business-like public administration, better organization and a reform move forward in Croatia to higher levels of government.