| Abstract |
The effective development and implementation of strategy in public healthcare organizations is a key determinant of their ability to deliver sustainable, high-quality, and patient-centered services. In Latvia, where the health system is characterized by centralized governance, constrained resources, and growing expectations for transparency and performance, the need for clear, evidence-based strategic management has become increasingly urgent.
Children’s Clinical University Hospital (Children`s Hospital) holds a unique position in the Latvian healthcare system as the only tertiary-level pediatric hospital providing specialized medical care, education, and research. The purpose of this Executive MBA thesis is to develop a strategic framework for the future development of the Children’s Hospital that ensures alignment with national priorities, enhances organizational effectiveness, and strengthens its contribution to the overall child health system in Latvia.
The thesis builds upon both theoretical foundations and applied management practice. The theoretical part reviews classical and contemporary models of strategy development - including the frameworks like SWOT, PESTEL, VRIO, Stakeholder mapping, McKinsey 7S. These models emphasize the importance of aligning strategic goals with organizational structure, leadership, and culture, as well as the integration of measurement and feedback mechanisms to ensure long-term sustainability.
The literature review also explores specific challenges of strategy development in public healthcare organizations, where political expectations, limited financial autonomy, and workforce constraints can hinder strategic agility and implementation continuity.
Methodologically, the research applies a qualitative, applied case study approach. Data was collected through document analysis, participatory workshops with employees, supervisory board and shareholder. The analysis triangulated information from three key sources: (1) internal strategic documents of Children`s Hospital and previous strategy cycles (2020–2025), (2) external policy frameworks, including the National Development Plan of Latvia for 2021–2027 (NAP2027), the Public Administration Reform Plan 2023–2027, and the Guidelines for the Governance of State-Owned Enterprises (SOEs) issued by the Cross-Sectoral Coordination Centre (PKC), and (3) insights from best-practice hospitals in Europe and United States.
Based on the analysis, the thesis proposes a comprehensive strategic framework for the Children’s Hospital covering the period 2026-2030. The proposed framework is structured around four strategic pillars:
1. Excellence in child health services - improving accessibility, safety, and quality through integrated care and digital innovation;
2. Empowered and engaged workforce - investing in professional development, leadership capacity, and well-being of medical and support staff;
3. Methodological competence and the network - strengthening the hospital’s role as a national competence center in pediatric medicine;
4. Research, digitization and innovation - operational efficiency via digital enhancement, knowledge building and sharing via research.
Each strategic pillar is supported by measurable goals and key performance indicators aligned with national policy priorities and state-owned company`s governance requirements.
The thesis concludes that the development of a robust, adaptive, and stakeholder-driven strategy is a prerequisite for the long-term sustainability of Latvia’s only tertiary-level children’s hospital. By aligning the institutional mission with national development objectives and introducing clear performance management practices, Children`s Hospital can enhance its strategic capacity, organizational resilience, and public value creation. |
