The area of central Europe, due to its history and the mix of different cultures and nations, is characterised by rich and diverse cultural heritage. Unfortunately, this valuable asset is underestimated as a key driver of the development for regional/local economies. A sophisticated and sustainable use of cultural heritage can be indeed especially vital for boosting the development of small- and medium-sized cities. The re-use and exploitation of renovated and revitalised built heritage represents an essential part in this context and should meet the 21st century specific needs as well as be adapted to new economic functions.The challenges for managing cultural heritage in central Europe are to look for models that ensure better coordinated, integrated and systemic approaches of governance. Ways need also to be identified on how to involve private actors/additional financial sources, whereas the economic interest would match with the protection level of the particular site. The HERMAN project connects ten cities, regions and knowledge institutions that aim to improve the management and valorisation of cultural heritage to better exploit its economic potential. Within their cooperation project they will look for and implement good practices of other European cities that have already successfully implemented efficient solutions in cultural management. Achievements: The diverse cultural heritage of Central Europe can be engines for economic development if they are handled well. By bringing together diverse stakeholders to share their knowledge, HerMan project encourages effective management enabling regions to make the most of their cultural heritage. The project helps various regions to work together on developing and testing joint management strategies and creative, innovative services. Moreover, models are being sought out to ensure better coordinated and integrated systems of governance. This meets perfectly the global trends too. “Tangible and intangible heritage are sources of social cohesion, factors of diversity and drivers of creativity, innovation and urban regeneration” - through the Historic Urban Landscape approach launched in 2011, UNESCO fosters this holistic approach worldwide by putting the cultural heritage into a significant part of the integrated urban development, which focuses on the entire human environment. Thus the biggest challenge for HerMan partners is to incorporate the above approach enabling them to cope with the challenges. First, the Lead Partner launched the project efficiently both from management and thematic point of view and partners agreed on the different methodologies. The official launching of the project took place in Eger, Hungary, on 6 March 2013. Secondly, the results of the situation analyses about existing management structures and functions of the local heritage were discussed in Lublin. During this meeting partners also discussed the pilot ideas addressing the mapped problems and challenges, worked jointly on the methodology for Cultural Heritage Management Strategies and Action Plans, which will be elaborated based on identified challenges, good practices (European Benchmark Study) and the results of the pilots. Pilots were launched in the 3rd period. Forster Centre envisages the theoretical/practical possibilities of implementing the Dutch Monumentenwacht system in Hungary. Treviso develops an innovative network of libraries with extended approach to digital content and new service of digital loan. Lublin identifies efficient stakeholder collaboration techniques while developing general principles for localization of advertisements in public space. In the „Talking Monuments” pilots, Forster Centre and Ravenna develop a city/heritage guide mobile application in Eger and Ravenna. Eger creates a dialogue platform for local NGOs on transforming the city centre into a vibrant artistic scene. Ferrara introduces an innovative reception and orientation service for tourists in Castello Estense. On 8/10/2013 the partnership organised its mid-term event in Ferrara. Key speakers recommended using the Historic Urban Landscape widely at local level. In addition, all good practice visits have been finalised in order to feed the work on local level with relevant practices. The first management course was held in Krakow, Poland between 18-22/11/2013.