Strategic Planning in Higher Education

1. Introduction

In a rapidly changing world, higher education faces challenges brought by digital transformation, demographic changes, increasing labor market demands, and internationalization. The Croatian context is further complicated by the emigration of highly educated young people, low investment in science, and the fragmentation of the higher education system.

This learning unit provides broad insight into the processes of strategic planning in higher education. Through theoretical grounding and practical examples, participants will gain an understanding of key concepts, methodologies, and best practices in strategic planning.

In this lesson, participants will:

• i. explain the concept and importance of strategic planning in higher education through theoretical and practical aspects (2/understanding);
• ii. analyze key components of a strategic plan, including mission, vision, goals, and values (4/analyzing);
• iii. apply theoretical models to concrete cases from domestic and international practice (3/applying);
• iv. differentiate between the phases of the strategic planning process (2/understanding);
• v. critically evaluate the role of digital transformation in the strategic planning of higher education institutions (6/evaluating);

2. What is strategic planning?

It is a fundamental tool that enables higher education institutions to align internal resources and capacities with external opportunities and threats, and to define the direction they wish to pursue.

According to Bryson, strategic planning represents “a process of reflecting on the current situation, identifying a desired future, and defining the course of action through goals and initiatives” [1].

In the context of higher education, this means:

• setting clear development priorities;
• aligning teaching and research activities with societal needs;
• introducing innovations based on data analysis and stakeholder participation.

Example: The University of Rijeka defined 20 strategic goals in four key areas (including digital transformation, internationalization, and engagement with the local community) as part of its 2021–2025 strategy [12].

3. Key characteristics of strategic planning

Strategic planning in higher education is based on several key features that ensure its effectiveness and sustainability. According to Bryson and Hill, a high-quality strategic plan must be long-term, data-driven, inclusive, and results-oriented [1, 2].

4. The goal of strategic planning

The goal of strategic planning is to guide the organization toward long-term development, increase its resilience to environmental changes, and ensure that resources and activities are aligned with its mission and vision [13].

In higher education, this means:

• ensuring academic excellence and the relevance of study programs;
• improving the management of human and financial resources;
• enabling transparent, data-driven decision-making;
• the general aim of strategic planning is not only to define direction but also to ensure operational implementation through continuous performance monitoring.

Figure: The idea of strategic planning

5. Why is strategic planning important in the context of digital transformation?

Strategic planning enables higher education institutions to systematically address digital challenges. It provides a framework for:

• planning digital infrastructure and staff training;
• securing resources for hybrid and online teaching models;
• integrating new technologies such as artificial intelligence into research and teaching processes.

According to the European University Association (EUA) report, institutions that included a digital component in their strategic planning achieved better adaptation to online environments during the pandemic [14].

Example: The University of Zadar integrated digital transformation across all levels of its strategic document, emphasizing the importance of open educational resources and digital tools in teaching [22].

Example: The City University of New York (CUNY) offers high-quality and affordable online education and by 2030 aims to increase the number of fully online certification and degree programs by 100% [15].

6. Strategy components: mission, vision, goals, values

The components of a strategy represent the fundamental pillars of every strategic plan. A clearly defined mission, inspiring vision, specific goals, and core values ensure the alignment of all stakeholders and give the organization its identity and direction.

Mission defines the purpose and core function of the institution – why it exists.

Example:

Mission of the University of Split: “To make education accessible to all, based on innovative teaching methods and guided by scientific excellence that inspires societal change.” [16]

Example:

Mission of the Massachusetts Institute of Technology (MIT): “The mission of MIT is to advance knowledge and educate students in science, technology, and other areas of scholarship that will best serve the nation and the world in the 21st century.” [17]

Vision represents an ambitious yet realistic picture of the desired future state.

Example:

Vision of the University of Split: “A European university recognized for the exceptional quality and impact of our graduates, research, innovation, and social contribution to solving the challenges of the future.” [16]

Example:

MIT does not formally state a separate vision, but its official presentation highlights: “MIT strives to be the world leader in research, innovation, and education in science, technology, and engineering.” [18]

Core values express the principles and beliefs that guide the institution’s behavior and decision-making.

Example:

The University of Split lists the following core values: inclusiveness, inspiration, innovation, collaboration, and talent [16].

Example:

MIT’s core values are: excellence and curiosity, openness and respect, belonging and community [17].

Strategic goals represent a more operational elaboration of the vision.

Goals must be formulated according to the SMART criteria [7]:

• Specific: clearly describe what is to be achieved, without ambiguity.
• Measurable: contain quantitative or qualitative success indicators.
• Achievable: realistically attainable given available resources and conditions.
• Relevant: aligned with the mission and strategic priorities of the institution.
• Time-bound: have a clearly defined deadline for completion.

Example: “Increase the number of scientific papers published in Q1 journals by 25% by the end of 2026.”

• • Specific: the goal refers to publishing in Q1 journals.
  • Measurable: “25 %” increase is clearly stated.
  • Achievable: ambitious but realistic target.
  • Relevant: research output is key to the university’s mission.
  • Time-bound: deadline clearly defined – by the end of 2026.

Additional examples of SMART goals:

• “Introduce digital certificates for all first-year courses by July 2025.”
• “Increase the number of students in international exchange programs by 15 % over the next two academic years.”
• “Develop and implement three new interdisciplinary study programs by the end of 2026.”
• “Increase the number of full-time undergraduate students to 4000 by 2025.” [19]

Examples that are not SMART:

• “Improve the quality and relevance of education.” [16] → not measurable or time-bound.
• “Become a better university.” → not specific, measurable, or operationally relevant.
• “Enhance education and the student experience.” [17] → vague, lacking a time frame and concrete metrics.

Vision, mission, core values, and strategic goals form the central part of strategic planning. In some cases, after identifying the mission and vision, strategic areas can be defined, within which strategic goals are then developed. This step is not mandatory and is not always applied. These elements together form the continuum of strategic management (see Figure).

Figure: Continuum of Strategic Management

6.1. Assignment

7. The flow and stages in the process of strategic planning

The sequential flow of strategic planning consists of activities that create the core components of a strategy. In the classical model, the strategic planning process goes through several key phases that are both methodologically and substantively interconnected.
Activities in the sequential flow of strategic planning:

• Analysis of the current state – Through SWOT (Strengths, Weaknesses, Opportunities, Threats) and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) analyses, higher education institutions identify internal strengths and weaknesses, and external opportunities and threats.
  

  Example: The Faculty of Organization and Informatics at the University of Zagreb used SWOT analysis. [10]
  Example: The Universities of Rijeka and Zadar conducted environmental analyses [12, 22], which, although not explicitly stated, essentially implemented a PESTLE approach.

• Defining the desired future state – In this phase, the institution’s vision, mission, and core values are formulated. Common methods include strategic workshops, storytelling, focus groups, and the Delphi technique.
  

  Example: The University of Split engaged staff and students in formulating its mission and values through a series of strategic workshops and focus groups. [16]

• Formulation of strategic goals – This phase defines exactly what is to be achieved. Goals are designed following the SMART principles, and methods such as group decision-making, dialogue-based techniques, and scenario analysis are often applied.
  

  Example: The Faculty of Electrical Engineering and Computing of the University of Zagreb defined five key areas, each with one strategic goal and several specific objectives. [28]

• Operationalization of goals – The strategy is translated into specific action plans, timelines, and responsibilities. Creativity techniques and logical framework methods can help connect goals with realistic capabilities.
  

  Example: University North uses task matrices and Gantt charts to support implementation. [35]

• Monitoring and evaluation – Key performance indicators (KPIs) are defined, reporting and evaluation methods are established, and mechanisms for adjusting the strategy are introduced.
  

  Example: The University of Ljubljana publishes annual reports on strategic progress. [5]

For developing measurement tools and monitoring systems, the following are often used [36]:

• Balanced Scorecard;
• Total Quality Management (TQM);
• European Quality Assurance Framework (EQAR, ESG standards).

In a broader sense, strategic planning also includes the implementation of the strategy and continuous monitoring of its realization, followed by a final analysis of the cycle. The final analysis determines the extent to which the strategic goals and vision have been achieved, and often serves as the starting point for a new planning cycle.

By explaining the sequential flow of strategic planning, we have also described its phases. In most cases, the phases of strategic planning and the strategic planning cycle occur sequentially, where the output of one phase becomes the input for the next. It is also worth noting that mission and core values are often permanent elements of strategic planning—they do not change in every cycle.

The mission may change when the organization significantly alters its activities, experiences a major environmental shift (e.g., merger with another organization), or when there is a discrepancy between the mission and actual practice. Core values change even less frequently; in most cases, they are refined or expanded—for example, to reflect new priorities (such as sustainability, inclusiveness, or innovation) or when the organization undergoes digital transformation or internationalization processes.

The continuous process of strategic planning is shown in the figure below.

Figure: Strategic Planning Process

7.1. Assignment

8. Forming strategy development teams

The optimal strategic team typically consists of between 10 and 12 members, as according to professional guidelines, this is considered the ideal size for effective decision-making and ensuring diversity of perspectives [20]. Some sources mention 7 as the optimal number, others 9–15, some 10–15, and some 7–12 or 7±2.

It is important to include stakeholders from the academic, administrative, and student communities, as well as external experts if needed. This approach enhances the benefits of teamwork — a wider range of expertise, greater legitimacy of the developed strategic plan (which leads to easier acceptance and stronger motivation during implementation), and a higher level of creativity that can result in more innovative solutions.

Recommended competencies for strategic planning in higher education:

The role of the team leader is crucial. Selecting a person with experience, expertise, and strong communication and organizational skills is one of the key principles for building an effective team. Principles for forming strategic planning teams [1, 37–38]:

Example:

The strategic team at the University of Jyväskylä (Finland) includes members of the university management, faculty representatives, the student parliament, and external stakeholders. The university’s 2030 strategy is publicly available and includes a clear stakeholder engagement plan. [39]

9. The plan for strategic planning

The process of strategic planning itself also needs to be planned. The strategic planning plan represents an organizational document that outlines the activities, timelines, and responsibilities within the strategic planning process. Such a document serves as a framework for managing the planning process, a tool for managing time and resources, a means of engaging stakeholders, and a document that ensures transparency and accountability.

The strategic planning plan is a meta-document that defines how the strategic planning process itself will be carried out. Its purpose is to ensure coordination, time monitoring, and clear responsibilities for everyone involved. If we neglect to plan the process itself, we risk that the entire strategic document will remain unimplemented, unknown, or unrealistic.

Key components of the plan include [40]:

Example: TU Delft published documents for its 2024–2030 Strategy in which all components of the strategic planning plan were clearly described: objectives, implementation phases, methodology, team responsibilities, and monitoring methods. The strategy includes six strategic priorities, responsibility mapping, a structured implementation calendar through 2030, and a dedicated Implementation Plan in PDF format that is regularly updated. [34]

10. Statistics on the success of strategic planning

Although strategic planning is perceived as the foundation of organizational success, data show that implementation often lags behind planning, as shown below.

• Up to 90 % of strategic plans fail due to poor implementation rather than poor planning [26, 31].
• Similarly, Excitant Consulting reports that 9 out of 10 strategies fail because of a lack of operational control and unclear objectives [30].
• According to a study by In-Parallel Consulting, 95 % of employees do not understand their organization’s strategy [29]. Excitant Consulting places that figure at 90 %.
• Excitant Consulting also notes that the lack of alignment between strategy and operational plans is one of the main causes of failure [30].
• Forbes reports that only 48 % of leaders dedicate at least one day per month to strategic issues [25, 27], even though over 90 % of them believe it is essential [25]. On the other hand, In Parallel Consulting states that 85 % of leaders spend less than one hour per month on strategy [29].
• 61 % of employees in executive roles admit that they struggle to bridge the gap between strategy and execution [29], consuming up to 60 % of available resources.
• Meisterplan shows that organizations that align their resources with strategy are five times more likely to succeed in implementation [32].
• Reliable Plant warns that 68 % of companies do not use project prioritization for strategic alignment, significantly reducing effectiveness [33].
• 48 % of organizations fail to achieve even half of their strategic objectives [27].
• A study conducted in higher education institutions in Libya found that strategic planning explains 53 % of the variance in the quality of educational services. In other words, when strategic planning improves, the quality of educational services increases by more than half of the total improvement [23].
• In an analysis of eight public universities in the United States, only two had a formal system for annual evaluation and revision of strategic goals. Most institutions use the strategic plan more as a formal accreditation document than as a tool for continuous improvement [41].

Although no statistics are currently available for the Croatian context, these figures highlight the importance not only of quality planning but also of effective implementation, evaluation, and communication.

11. Conclusion

In an era of digital transformation, increasing social complexity, and the growing need for public accountability, it is essential to develop strategies that are realistic, inclusive, and actionable.

Higher education institutions that invest in strategic thinking build the foundations for sustainable excellence, greater employability of their students, and stronger integration with society. However, the key to success lies not only in creating a strategy – but also in its implementation, continuous evaluation, and adaptation to changing circumstances.

12. References

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