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The phrase "leads by" is correct and usable in written English.
It's typically used to describe someone in a position of authority guiding others, or an example that others are encouraged to follow. For example, you could say, "The CEO leads by example, always arriving at the office before everyone else."
Exact(60)
He leads by one.
She leads by procrastination.
"He leads by his own example.
Francesco Molinari leads by a stroke.
A good principal leads by example.
Juve leads by a single point.
He leads by example, also.
He always leads by example.
Chalmers also leads by example.
Federer leads by two sets!
Now he leads by 35.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com