This study investigated the relationship between the leadership role of Principal and the performance of institution. The study is based on Malcolm Baldrige Quality Model (MBQM) and its application on educational institutions. For this purpose questionnaires were administered to randomly select 100 schools and colleges’ teachers of public and private sectors of Karachi. Analysis was carried out by using SPSS software. Regression tests were used to analyze the data, taking into consideration the descriptive statistics of mean and standard deviations. The results showed a positive correlation between leadership role of Principal and the performance of institution. Findings suggest that the leadership role of Principals and academic heads enhances the performance of the institutions. Findings will be helpful in developing standards for the educational leaders in order to increase their administrative and academic skills which will, in turn, result in the improvement of the institutional performance.