Most “People Problems” Aren’t About People. They’re About Structure
Most Managing Directors will tell you they have “people problems”.
Underperformance.
Frustration.
Lack of ownership.
Missed deadlines.
Tension between teams.
Managers complaining that “people just don’t get it”.
The assumption is usually that the problem sits with the individual.
In reality, most people issues are not about people at all.
They are symptoms of weak structure.
Over time, this creates pressure not just operationally, but around role clarity, accountability, and who is actually responsible for what when things get difficult.
Why People Get Blamed First
When something isn’t working, it’s natural to look at behaviour.
Someone isn’t taking responsibility
Someone isn’t delivering
Someone seems disengaged
Someone keeps making the same mistakes
From the outside, it looks like a motivation or capability issue. But dig a little deeper, and a different pattern usually emerges.
The Three Structural Causes Behind Most “People Issues”
Role Confusion
Many roles in SMEs grow organically. Responsibilities are added, not redesigned.
Over time:
job boundaries blur
priorities conflict
tasks overlap
accountability becomes vague
When people are unclear about what they own, what they influence, and what they don’t, frustration is inevitable. People can’t perform well in roles that aren’t clearly defined.
2. No Clear Decision Ownership
In many businesses:
decisions sit with “the team”
ownership is shared but unclear
everyone is involved, no one is accountable
This leads to:
slow progress
repeated discussions
decisions being revisited
work stalling
When no one owns the decision, people either disengage or escalate everything upwards.
That’s not a people problem. That’s a structural one.
3. Vague Expectations
Most performance issues trace back to expectations that were never made explicit.
“Use your judgement” with no boundaries
“Take ownership” without authority
“Be proactive” without clarity
“Deliver results” without defined success
People don’t fail expectations they understand. They fail the ones that were assumed.
Why Motivation Is Often the Wrong Fix
When leaders see underperformance, the instinct is often to:
push harder
motivate more
coach attitude
question commitment
But motivation cannot compensate for confusion. Highly motivated people burn out quickly in poorly structured environments. Less confident people retreat. Strong performers become frustrated.
What looks like disengagement is often exhaustion from ambiguity.
What Actually Fixes Most People Issues
Not more energy.
Not better slogans.
Not another engagement initiative.
What fixes most people issues is clarity.
Clear roles
Clear ownership
Clear expectations
Clear decision rights
Clear priorities
When structure improves, behaviour usually follows.
People perform better when they know:
what they are responsible for
how decisions are made
what good looks like
where to focus their effort
Why SMEs Feel This More Than Large Organisations
Large organisations have buffers. SMEs do not.
In smaller businesses:
role confusion shows up immediately
unclear decisions slow everything
vague expectations create tension fast
people issues consume leadership time quickly
This is why many SME leaders feel stuck dealing with “people problems” that never seem to resolve. They’re treating symptoms instead of structure.
A Practical Test for Leaders
If you’re dealing with a people issue, ask yourself:
Is the role genuinely clear?
Does one person own the decision?
Are expectations explicit or assumed?
If the answer is no to any of those, start there. Fixing structure is often faster, cheaper and kinder than managing behaviour.
Final Thought
Most people want to do a good job. When they don’t, it’s usually because the system around them makes it hard.
Clarity fixes more than motivation ever will.
At Progressa, we help SMEs resolve people problems by strengthening structure, leadership clarity and decision ownership, so performance improves without unnecessary friction.
If this resonates, we’re always happy to talk.
Real support.
Real experience.
Real improvement.
