Influence of Strategic Leadership on Performance of Equity Bank Kenya Limited

Abstract

Strategic leadership is a crucial factor in achieving exceptional performance for organizations and is critical in shaping the long-term direction and success of organizations. Strategic leaders enhance organizational success through the strategic relationships they cultivate, the decisions they implement, and the distinctive traits they embody. This research sought to determine the influence of strategic leadership on the performance of Equity Bank Kenya Limited. The study was guided by Upper echelons theory and Contingency theory. A case study research design was adopted. Qualitative data was collected using interview guides from the senior managers at the Bank. Content analysis was used to do data analysis. The analysis demonstrated that there is a favorable relationship between strategic leadership and performance, suggesting that it enhances overall effectiveness. As such, Equity Bank Kenya Limited had streamlined operations through effective strategic leadership aspects such as participatory leadership, rewarding performance, leveraging on vision, mission, and core values to drive strategy implementation, effective monitoring and evaluation, and developing clear policies to guide bank operations. The study found that programs such as the Wings to Fly program supported disadvantaged students with the opportunity to access quality education, fostering long-term social and economic development. The research additionally demonstrated that change is inevitable, leading the bank to adopt multiple strategies to adapt to the shifts occurring within its internal and external contexts. The strategies include adequate allocation of resources, effective communication, soliciting customer feedback for effective change actions, and embracing effective organizational leadership for effective change management. Additionally, the study established that strategic leadership at the bank is confronted by various challenges that derail the implementation of strategy and realization of performance. Challenges such as changing customer preferences intensified competition in the banking industry, and transfer of talent have compelled the bank to constantly review initial strategies to meet the evolving needs. The study recommends that leadership create an organizational culture that supports and creates a conducive environment for the employees to function optimally. The study also recommends the allocation of more resources for effective implementation of strategic leadership. Finally, the study recommends benchmarking with successful banks across the world on the most successful strategic leadership aspects. The study faced several limitations. The study focused exclusively on Equity Bank limiting the study’s ability to generalize the results to the broader banking industry. The study had the limitation of biases where participants may be influenced by their personal experiences which could limit the broader applicability of the results. Further research studies could be undertaken to determine the influence of strategic leadership on the performance of the whole banking industry.