Strategic Leadership in Enhancing Organizational Performance within the Nigerian Banking Sector: A Theoretical Dimension

Abstract

The essence of establishing a business is to provide quality service to its customers, which is achievable through leadership. The objective of this paper is to conceptually examine the impact of strategic leadership tools for enhancing organisational performance in Nigerian deposit money banks. The predictor variable of strategic leadership was viewed from the dimensions of strategic intention and strategic management, while the criterion variable of organisational performance was measured by improved customer service and profitability. The paper reviewed the existing literature on the study variables conceptually and empirically. From the conceptual and empirical review, it was found that strategic leaders are persons with the right vision, mission, and objectives to cause change in an organisation, that leaders with strategic intents are capable of leading an organisation out of a challenging period, and that the components of strategic leadership, which are strategic intention and management, have a positive synergistic effect on the operational efficiency of the organizations. Clear corporate objectives, business, and functional-level strategies are typical of financial institutions that have a vision and mission that are broadly shared throughout the organisation and are reflected in the activities of the financial institution, as well as elaborate processes of strategy formulation that will involve all employees in the organisation and result in long-term strategies. These components of strategic leadership will enhance bank performance indicators as reflected in earnings, return on assets, profitability, and improved customer service as they increase to a greater degree.