How substitution is changing the game for me this year – and 4 ways to strategically use it in your leadership

Like a lot of people, I’m doing Dry January. It’s less of a resolution and more of a lifestyle shift. As my friend Sarah McGuinness recently pointed out, most of these initiatives fail. Yet here I am a decent way through January and still on the wagon. 

One thing that’s helped me get through the “geez I’d kill for a glass of wine” moments is this thing called substitution. 

I’ll substitute my 5 o’clock gin with the gym, my merlot with a mocktail. Or, when I really feel like a bit of a buzz, kava. 

Yup, kava. 

It tastes like shit, but it gives me a warm hug about ten minutes later and is way better for me than alcohol. Yes, I’ve gone down the kava Google rabbit hole, so I know.

It got me thinking about the power of substitution as a strategy in other realms. Like leadership.

In our resource-constrained climate, substitution is the secret sauce to many of our conundrums. Substitution can turn moments of “we can’t because…” into “we can if…”, just like Adam Morgan and Mark Barden say in their great book, A Beautiful Constraint: How To Transform Your Limitations Into Advantages, and Why It’s Everyone’s Business  (which I can’t recommend enough to any senior executive or CEO, btw).

At its core, substitution is when we replace one element with another to get the same, or an even better, outcome. It requires a mindset shift: instead of focusing on what you lack, you turn your attention to what you already have and how it can be used differently. This principle, often employed in product development and innovation, is equally powerful when applied to leadership and strategy execution.

Think about this: The most effective leaders don’t let limitations stall them. They pivot, experiment, and reconfigure. They ask, “What can we use instead?”

To get the best out of substitution as a tool, first ask:

• What’s the core outcome we’re aiming for?
• What’s another way to achieve this?
• What resources do we already have that could be used differently?

How can you use the power of substitution in 2025 in your leadership practice and to ace those strategic goals?  Here are some ideas:

1. Substitute micromanagement with empowerment. 

One company I work with has started this practice of sharing: “you can’t do these specific things. But anything else, you can”. This gives their team members autonomy to make decisions, use their initiative and be creative problem solvers. This company has some strong values, so combining this approach with keeping their values front and centre gives their teams guardrails – not shackles – in carrying out their jobs. 

Another example of substituting micromanagement with empowerment: Instead of attending every strategic meeting yourself, designate a trusted team member to lead in your place. Equip them with the necessary context and authority to make decisions. This substitution of your presence with their leadership not only conserves your time but strengthens your bench of future leaders.

2. Substitute perfection with progress

Perfectionism can be a silent strategy killer. When resources are scarce, aiming for "good enough" can be the more pragmatic choice. Shift your mindset to focus on iterative progress rather than flawless execution.

Here’s an example: If your team is developing a new product, consider launching a minimum viable product (MVP) instead of waiting to perfect every detail. Gather customer feedback early, then refine as you go. I applied this approach with my emerging leader’s programme, The Leader’s Map and if I hadn’t, it probably would still be a pipe dream. 

3. Substitute expensive features with customer-centric solutions

When you’re developing a product or service, it’s tempting to pack in as many features as possible. But often customers care about only a handful of core functionalities. Focus on understanding their true needs and substitute complexity with simplicity.

Take Xero for example. When Xero first launched, its goal was not to offer a complex suite of tools but to simplify accounting for small businesses. By prioritising user-friendly design and essential features like invoicing, bank reconciliation, and financial reporting, Xero won over a market that was under-served by clunky, overly complex software. This focus allowed Xero to scale effectively, gaining traction with small businesses globally, before gradually expanding its functionality. Their substitution of simplicity and usability instead of bloated feature sets straight out of the gate enabled them to disrupt a traditionally complicated industry while staying aligned with their users' needs.

4. Substitute ownership with access

In an asset-heavy business model, owning resources can be a significant financial burden. Consider substituting ownership with access through partnerships or shared services.

For example, a manufacturing firm might lease specialised equipment instead of purchasing it outright, allowing the company to scale production up or down without the long-term capital commitment.

Where can you use the power of substitution?

The list of areas where you can apply substitution goes on. Meetings, technology, knowledge, resources. 

So, make like me with my kava. Shift your attention from what’s missing to what’s possible. 

Ask yourself and your team: what can I/we use instead?