Multiple objectives are often used by agencies trying to manage pavement networks. Often alternative investment strategies can accomplish the agencies’ target objectives. If the goal is to achieve the target objectives at the minimum cost, an approach is needed to assist agencies in identifying investment strategies capable of meeting the targets while minimizing costs. The approach used by the agency should not be limited to an analytical method to mathematically solve the funding allocation problem. Finding mechanisms to ensure the sustainability and efficiency of the investment strategy over time is a great challenge that needs to be addressed by the approach. The challenge is even greater for local agencies where resources are usually limited. This research develops a multi-objective strategic management approach oriented to improving decisions for pavement management practices in local agencies. In this approach, target objectives are tied to key pavement network parameters in the management process. A methodology to identify the best combination of projects to meet target objectives at the minimum cost while maximizing treatment effectiveness is provided as a result of the research. Concepts from the pavement management program (PMP) of the Metropolitan Transportation Commission (MTC) of the San Francisco Bay Area were used as a basis for developing the methodology. Four pavement network parameters are considered for setting the target objectives over the agency’s planning horizon: the average network pavement condition index (PCI), average network remaining life, percent of the pavement network in good condition, and percent of the pavement network in poor and very poor condition. Results from a case study show that funding allocation methods influence the allocation of preservation and rehabilitation funds among pavement network groups, affecting budget estimates and future condition of the pavement network. It is also concluded that the use of mechanisms that facilitate data integration and the flow of knowledge across management levels can contribute to making better informed decisions. Hence, the adoption of the multi-objective strategic pavement management approach developed in this dissertation should lead to identifying more efficient investment strategies for achieving the pavement network state desired by a local agency at a minimum cost.