This is not what they are suggesting. They are suggesting: if a person has a clear lack of competency, or is inconsistent in their output, acknowledge that the

This is not what they are suggesting. They are suggesting: if a person has a clear lack of competency, or is inconsistent in their output, acknowledge that they are doing some things well - the reality - but also they have a number of shortcomings - also the reality - which need to be addressed to perform their Really Vital Role that provides Great Business Value. They could just fire them and find someone else who can actually fulfil the needs of the role, but it's a sensible option for the company to provide a means for the employee to better themselves, rather than wear the down-time of someone not performing those duties.