They just need to be ruthless and execute every chance when it comes along to make more of an impact.
They will be tested again on Friday night when the Rebels from Melbourne come to town to play at Forsyth Barr Stadium.
Joseph was not disappointed with the energy and spirit of his side in its 30-12 loss to the Blues in Auckland on Saturday night, but said conceding points at just the wrong time and facing an abrasive Blues defence was always going to be tough.
''We had our chances to score in the first half ... and we played well for the first 38 minutes. But they managed to score right before halftime and that is never a great time to concede,'' he said.
''When we came out in the second half we needed to score straight away. But we conceded virtually straight away and that left us chasing the game. And they played pretty well. Their defence did not let us in with much of of a sniff.''
Joseph said the Highlanders suffered in the penalty count but it was not foul play.
''We were not quite executing right and what were little things turned into big things in the whole game.
''Defensively, I thought we were physically sound and both teams gave as good as they got at the breakdown. But sometimes you have to give credit to the opposition.''
Joseph felt the Highlanders had the talent to get back into the game despite being 18 points down with still 25 minutes left but said the Blues did not let them in with a sniff.
The Highlanders could not get a try throughout the match and had to contend themselves with four penalties from Lima Sopoaga, who has only missed one shot out of his last 14 shots at goal.
Joseph praised the spirit of his side in the final minutes as it looked to score and also deny the Blues their fourth try for the bonus point.
''I saw some guys really working hard and getting back to make some crucial tackles. So the spirit is still there and the guys are working hard for each other.''
Joseph said it was unfortunate prop Kane Hames was cited for a clean-out of Blues lock Hayden Triggs.
''Kane is not a dirty player. The player he went in to clean out was lying on an unfortunate angle. He [Hames] is a new player to this level and has been one of the better players.
''It is unfortunate for him and being the type of guys he is it will affect him.''
Apart from a few bumps and bruises, the side came through the game with a clean bill of health and will prepare today for the game against the Rebels on Friday night.
The Rebels are coming off a 32-24 win over the Brumbies in Melbourne. The Reds beat the Stormers 22-17 in Brisbane, the Chiefs and Bulls drew 34-34 while, also in South Africa, the Sharks beat the Waratahs 32-10.