Why what you Can Do isn’t all that matters
We look at Capability Building, more like experiential learning—applying concepts in real-world scenarios while balancing (AI-saturated) results-driven efficiency with human sense-making.
This blog series delves deeper into the intersection of technology and human development, highlighting how you can build your resilient adaptiveness to thrive in the digital age.
Why what you Can Do isn’t all that matters
We live in a world that talks a lot about skills. Learn to code. Speak perfect English. Be productive. Be fast. Be efficient. But what if there’s more to the story? What if the real magic doesn’t come from what you can do, but from who you’re becoming while you do it?
Let’s talk about the difference between skills and capabilities, and why this matters more than ever in a world filled with change, uncertainty, and artificial intelligence.
If we’re serious about preparing people and organizations for the future, we need to stop treating them like synonyms and start understanding their distinctive roles—especially through the lens of how we learn.
So, what’s the difference?
Quick example:
Skill: You can use Photoshop.
Capability: You can tell compelling visual stories that move people.
Think of skills as tools you can pick up. They’re specific, measurable, and you can get better at them with practice, like tying your shoelaces, editing a photo, or writing an email.
Now think of capabilities as your toolbox. It’s the deeper stuff—like creativity, problem-solving, or resilience. You don’t learn a capability by watching a YouTube tutorial. You build it over time by stretching yourself, learning through experience, and growing as a person.
Skills: Transactional and Transferable
Skills are what you can learn in a workshop or from a YouTube tutorial. They’re specific, trainable, and often measurable. Coding in Python, editing in Premiere Pro, or using a CRM system—these are all skills. They’re often assessed in hiring processes and used as benchmarks in performance reviews.
But while skills are necessary, they’re not sufficient.
They function well in predictable contexts. As long as the environment doesn’t shift too much, having a portfolio of strong skills keeps you productive. However, when uncertainty hits—when the script goes off track—skills don’t always help you improvise.
Capabilities: Generative and Adaptive
Capabilities, on the other hand, are about how you navigate, adapt, and learn in unfamiliar situations. They are contextual, often emergent, and hard to codify. Think of critical thinking, emotional intelligence, learning agility, and systems thinking.
Capabilities are what allow you to connect skills, choose which ones to apply, and even develop new ones on the fly. In short: skills help you do the task; capabilities help you deal with the world.
Here’s the twist: capabilities are often learned socially—not by rote, but through modeling, feedback, and experience. This is where observational learning becomes a crucial differentiator.
Where do capabilities come from?
That’s where it gets interesting.
Psychologist Mihaly Csikszentmihalyi (try saying that five times fast!) studied something called Flow—a state where you're fully immersed in what you're doing, where time disappears, and you feel alive. Think of a musician lost in a performance, or an athlete in the zone.
Flow happens when your current skills are just enough to meet a new challenge. Not too easy, not too hard. Right in the sweet spot.
This is the zone where capabilities grow.
It’s not just about repeating what you know. It’s about reaching just beyond your comfort zone and learning to navigate the unknown. That’s how you become adaptable, creative, and confident over time.
We don’t grow alone
Russian psychologist Lev Vygotsky introduced another powerful idea: the Zone of Proximal Development (ZPD). It’s the space between what you can do alone and what you can do with a little help.
When a teacher, mentor, or friend gives you the right support—not too much, not too little—you stretch. And eventually, you can do that thing on your own. You’ve turned a skill into a capability.
So yes, we learn by doing. But we also grow through relationships—through people who guide, encourage, and challenge us.
From Beginner to Expert: the Dreyfus Model
Let’s say you’re learning to drive.
At first, you follow the rules mechanically (Novice).
Then you start noticing patterns (Advanced Beginner).
You begin to trust your judgment (Competent).
You drive smoothly and adapt easily (Proficient).
Eventually, it’s second nature—you anticipate and solve problems intuitively (Expert).
That final stage? That’s capability in action. You’re not just following instructions—you’re making smart decisions in real time.
Another foundational lens for understanding the transition from skill to capability is the Four Stages of Competence model. This framework maps learning across four progressive phases: (1) Unconscious Incompetence, where the learner is unaware of their lack of skill; (2) Conscious Incompetence, where awareness of the gap emerges; (3) Conscious Competence, where the skill can be performed, but only with focused effort; and finally (4) Unconscious Competence, where the skill becomes second nature. While this model was designed to describe skill acquisition, it indirectly highlights the threshold between mastery and adaptability.
True capability surfaces when learners, often at the unconscious competence stage, begin to reflect, generalize, and transfer their expertise to novel and uncertain contexts—something not directly covered by the model but essential in complex environments. Thus, while the model tracks procedural proficiency, it also underscores the need for meta-cognition and reflective practice as stepping stones toward capability.
It’s not just What you learn—it’s Why
Psychologists Edward Deci and Richard Ryan developed the Self-Determination Theory, which says people are happiest and most motivated when three needs are met:
Autonomy – the freedom to choose and act.
Competence – the feeling that you’re good at what you do.
Relatedness – a meaningful connection with others.
You might learn a skill because your boss tells you to. But you build a capability when you’re intrinsically motivated—when you care, when it matters to you, and when you feel supported.
Mistakes aren’t failures—they’re fuel
Psychologist Carol Dweck talks about the difference between a fixed mindset (believing you’re either good at something or not) and a growth mindset (believing you can get better with effort).
When you focus on capabilities, mistakes stop being scary. They become part of the process.
You’re not just learning a skill—you’re learning how to learn. You become more open, more reflective, and more courageous.
Observational Learning: The Invisible Catalyst
Drawing from the work of Bandura and others, observational learning refers to how people learn new behaviors by watching others. But it’s more than monkey-see-monkey-do. It involves attention, retention, motivation, and reproduction of behaviors seen in others—especially those seen as credible, competent, or similar to oneself.
This means the development of capabilities is not just about giving people access to more training or content. It’s about curating social learning environments where individuals can see values in action, watch peers resolve dilemmas, and safely test new strategies.
Takeaways from the Observational Learning framework that shape our understanding of capabilities include:
Modeling matters: People are more likely to adopt new behaviors when they see others successfully doing it, especially in ambiguous or novel situations. This is how cultural capabilities—like collaboration or resilience—are transmitted.
Vicarious reinforcement: Watching someone else succeed (or fail) provides cues about what’s acceptable, useful, or rewarding in a context—guiding future action without the observer needing direct experience.
Cognitive rehearsal: Observing someone navigate a problem allows the observer to mentally simulate future behaviors—priming them for performance before they ever act.
Self-efficacy building: Seeing relatable models succeed boosts confidence in one’s own ability to do the same, especially when tackling complex tasks.
In capability-building programs, leaders and coaches need to recognize that who people observe (and how they are seen behaving under pressure) may be more influential than what people are explicitly taught.
Why This Matters in Real Life
Let’s bring it down to earth with some examples:
See the pattern? Skills are useful, but capabilities are transformative.
Why skills aren’t enough anymore
In today’s world, things are changing faster than ever. Technology is advancing. Jobs are evolving. AI tools can already do many tasks we once thought were “safe.”
So the question isn’t just “What can I do today?”
It’s “How ready am I to adapt tomorrow?”
The future needs people who can:
Learn new things quickly
Make good decisions with little information
Work well with others
Think critically and creatively
These aren’t skills you memorize. These are capabilities you grow.
What Can You Do Right Now?
Here are a few ways to start developing your capabilities—today:
1. Stretch yourself gently
Do things that are just outside your comfort zone. Don’t avoid challenges—lean into them.
2. Ask for feedback
The right feedback at the right time helps you grow. Find people you trust and ask, “What could I do better?”
3. Reflect often
Keep a journal. Ask yourself: What did I learn today? What surprised me? What challenged me?
4. Help someone else
Teaching or supporting others strengthens your own understanding—and deepens your relatedness.
5. Follow your curiosity
Don’t just learn what’s required. Explore what fascinates you. That’s where intrinsic motivation lives.
In a nutshell
Skills are what you do.
Capabilities are who you become.
You grow capabilities through challenge, feedback, reflection, and support.
Real confidence doesn’t come from being perfect—it comes from being willing to learn.
So yes, go ahead and learn new skills. But don’t stop there.
Build the capabilities that will carry you through change—at work, in life, and in a future no one can fully predict.
📚 Key Sources
Csikszentmihalyi, M. Flow: The Psychology of Optimal Experience.
Dreyfus, H., & Dreyfus, S. A Five-Stage Model of the Mental Activities Involved in Directed Skill Acquisition.
Vygotsky, L. S. Mind in Society: The Development of Higher Psychological Processes.
Deci, E. L., & Ryan, R. M. Intrinsic Motivation and Self-Determination in Human Behavior.
Dweck, C. S. Mindset: The New Psychology of Success.
Bandura, A. Self-efficacy: the exercise of control.
Bandura, A. Social Foundations of Thought and Action: A Social Cognitive Theory.
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