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"Example" carries a better impression than "good instructions" as no leader would set "bad instructions" yet in the best interest of the team. More to Team delivery, it is perfect for a leader to always be exemplary to the team for it inculcates optimism amongst team members.
Actually it should be a combination of both. By leading by example, you would set a bench mark of performance required from your sub-ordinates but to ensure they achieve that, you would have to be more direct and instructive in your supervision.
