In recent years, the strategic management of higher education institutions (HEIs) in Europe has undergone significant transformation. The traditional top-down approach to university strategy development—primarily led by executive leadership and shaped by policy mandates—is increasingly giving way to participatory, adaptive, and transparent processes. This shift reflects broader pressures within the European Higher Education Area (EHEA), including increased institutional autonomy, stakeholder accountability, and alignment with long-term societal and innovation goals.

This study examines how Vilnius University is developing its new institutional strategy (2026–2030), with a particular focus on participatory engagement and the mobilisation of internal knowledge. Drawing on policy analysis and institutional data, the research explores how strategic planning practices are evolving at the university level in response to EU and national policy frameworks. Central to the case is a recent university-wide survey inviting students, academic, administrative staff and stakeholders to contribute ideas and priorities, aiming to democratise input, foster shared ownership, and align institutional goals with both academic realities and broader societal needs.

Preliminary findings suggest that broad-based engagement in strategy development enhances transparency, builds trust in leadership, and strengthens coherence between institutional vision and operational practices. At the same time, the process surfaces key challenges—such as reconciling diverse perspectives, managing expectations, and translating bottom-up insights into implementable objectives. These dynamics are analysed within the context of Lithuania’s evolving higher education governance and its alignment with EU strategies in research, innovation, and digitalisation.

The study argues that strategic management in universities is no longer merely an exercise in compliance or market positioning. It is increasingly an iterative, multi-stakeholder process that demands new institutional capacities—for inclusive dialogue, internal knowledge integration, and adaptive leadership. Vilnius University’s experience offers a timely case study of how established planning models can be reimagined to meet contemporary expectations for responsiveness, relevance, and institutional cohesion.

This research contributes to ICERI’s thematic focus on educational leadership, strategic transformation, and the emerging challenges of the Higher Education Area. It offers practical insights for university leaders, policymakers, and scholars interested in the future of institutional governance in Europe and beyond.

Keywords: Strategic management, university governance, engagement, higher education policy.