There are two things you can consider when building a team.

1. What are the things that we are not doing because the people in the team do not have the skills to do them?
2. What are the things that we are not doing because the people in the team do not have the time to do them?

In the first case, you are looking to build the capabilities of the team. That is fairly typical for small teams, or teams that need to grow into unexplored territories.

In the second case, you are looking to build the capacity of the team. That is fairly typical of large teams, or teams that need to scale fast.

The problem is when small teams hire for capacity, and therefore do not get the type of knowledge and expertise they would need. Or when large teams hire for capabilities, and therefore get the type of knowledge and expertise they don’t need.

Be aware where you stand and what you are hiring for.