The planning and development of the university strategy is closely linked to the university’s current performance, key priorities, and capabilities. A systematic literature review of factors that influence decision-making for strategy development has been applied in this research. To determine the external factors that influence strategic decision-making for universities nowadays there has been chosen a structure from the PESTLE analysis. The systematic literature review was limited to only higher education factor analysis. Based on the literature review, the authors have developed an approach for strategic direction evaluation and ongoing key performance indicator analysis. The approach is based on the Importance-Performance Matrix–IPA and developed further to include a comprehensive analysis of the strategic directions, organizational sources, and capabilities. An assessment of the university’s main strategic priorities with influencing factor analysis can be done using the developed approach adapted by the authors. It integrates the principles of resource-based strategy, key stakeholder engagement and creating shared value in the strategy development process. The adapted method was used in the 3rd generation university strategy development. The research contributes to the literature on a systematic approach development in the strategy evaluation process. This article puts emphasis on the resource-based view and key stakeholder involvement in the evaluation process.