If you’re a founder, you’ll know that sinking feeling when one of your team just isn’t delivering: targets are missed, projects stall, or clients start complaining. And suddenly you’re wondering: what’s going on here? Why aren’t they doing what they’re meant to?
Is this a capability issue, or something deeper?
What’s a ‘Capability’ issue anyhow?
‘Capability’ is all about someone’s ability to do their job – their skills and knowledge that they have in terms of how they perform. They are about someone who ‘can’t’ – not ‘won’t’ – do their job: when the person genuinely struggles to perform despite trying.
It’s important to understand, because not all “issues” are capability ones, and not all capability issues are obvious. Spotting the difference is the first step to fixing them — and to deciding whether someone needs coaching, support …. or a much tougher conversation.
Common signs include:
- They make repeated mistakes even after training
- Tasks take far longer than expected
- They want to improve but just can’t quite get there
Think of the brilliant-but-disorganised new manager who’s never been shown how to run a 1:1, or the developer who’s strong technically but has no client-facing experience? With the right training, coaching, or support, they can improve.
If this is ringing bells, ask yourself: have I given them the tools, training, and clarity they need? If not, capability is the likely culprit.
So when is it a Conduct Issue?
Conduct issues are all about the ‘won’t’, not ‘can’t’ (do their job) – when someone can do the job but chooses not to. When we talk about conduct, we’re not talking about their ability – as it’s likely they can do the job if they need to – but about attitude. And signs for this include:
- Sloppy work from someone who’s previously aced things
- Ignoring instructions or cutting corners despite directions to the contrary
- Attitude problems including lateness or inappropriate behaviour
And no amount of extra training will fix a conduct problem if you don’t address the behaviour.
If that’s something you’re coming across, then you need to treat these issues as misconduct, not capability. Be clear about expectations, explain the impact, and – although no one (not even HR folks!) particularly likes doing this – if behaviour doesn’t change, follow your disciplinary process.
The difference between the two matters
Mixing the two up is where leaders get stuck: if you send someone on training when the problem is actually laziness, then you’ll waste time and money. Discipline someone who’s struggling because they’ve never had proper onboarding? And you’ll lose goodwill (and possibly a decent employee).
Getting clear on the difference protects your culture, too. Teams notice when underperformance isn’t addressed. They also notice when someone who needs support is left to flounder. Either way, trust in you as a leader takes a hit.
How do I know which is which?
A few quick checks can help you cut through the noise:
- Clarity check: Have I explained what “good” looks like?
- Training check: Have they had the tools or coaching they need?
- Consistency check: Is this problem happening everywhere, or just with one person?
- Attitude check: Do they show effort and willingness, or do they shrug it off?
Often, the answer is hiding in plain sight. Capability issues respond to support. Conduct issues need consequences.
Not all performance problems are people problems — and not all people problems are about capability. Founders who learn to spot the difference save themselves endless frustration, wasted budget, and sleepless nights.
So next time someone isn’t delivering, pause before jumping in. Ask yourself: is this a ‘can’t’, or a ‘won’t’ issue? The answer will tell you whether to sharpen the skills — or sharpen your disciplinary pencil.
At The HR Hub, we help founders deal with the tricky stuff: from supporting capability gaps to tackling conduct head-on. If you’d like a calm, clear framework for handling performance issues, drop us a line at hello@thehrhub.co.uk or call 0203 627 7048.
Not a phone or email kind of person? Grab my book, The MAGIC of HR, for more practical tips to build a culture that actually works.
