This document reports on a review of the leadership literature, a cross-sectional correlation study, and a series of in-depth teacher interviews, all of which were parts of an effort to better understand the conditions under which a principal can lead. The correlation study makes use of S. Kerr's theory that the effect of the leader's behavior on subordinate motivation or performance will be less in the presence of conditions that may substitute for, or neutralize, the leader's effectiveness. The study tested Kerr's 13 proposed conditions by surveying teachers and principals from a sample of elementary schools in Oregon and Washington. The results provided little support for Kerr's substitute theory in the setting of public elementary schools, but questionnaire weaknesses were thought to contribute to these adverse results. In an alternative approach, nine teachers were interviewed to detect the operation of substituting or neutralizing conditions as respondents recounted their teaching experiences. It is concluded that there are potential substitute conditions in elementary schools, but the question remains whether or not there is variation and if the conditions act as substitutes. Although this theory is worthy of further study, the instruments must be refined. Appendixes include related questionnaires. (DCS)