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METHOD OF PLANNING INSTITUTIONAL DEVELOPMENT (PID) – an instrument used to assess the quality of governance at the local level – of local-government administration. It is based on: diagnosis of the level of development – conducted in the form of institutional analysis (IA) of the local-government unit; preparation of an institutional development plan (DP) – planning activities that improve the functioning of the unit and the level of services provided; realization of the plan by implementing the so-called institutional development tools; assessment of effects. The activities of local governments have been included in five areas of management: 1. leadership and strategy, 2. resource and process management, 3. human capital management of the organisation, 4. partnership, 5. management of public services. The PID method was originally developed as part of the undertaking called the Institutional Development Programme implemented in years 2001 – 2004 by a consortium of the Canadian Urban Institute, the Małopolska School of Public Administration (MSAP UEK) and the Ministry of Interior and Administration. In the following years, the programme was updated, partners of the project leader – MSAP UEK, changed. In 2015, it was integrated with management control standards, implementation of which results from the Public Finance Act. All tools of the discussed method are available free of charge on the MSK UEK project’s website: http://www.pri.msap.pl [ Ł. Małecki-Tepicht ]