"In what we set out to do for the team we have not been derailed by the last block of games. Losing those first two matches of those last games was huge blow to us," he said.
"In making the playoffs, that was derailed, but in terms of... trying to develop a team, develop a culture and turn things around I think we have been successful.
"The foundations are there, but it highlighted we do need to recruit, and get some players."
The loss last night gave the side an eight win, eight loss record, which was better than most Highlanders fans predicted at the start of the season.
He said last night's game came down to a few key mistakes.
He felt conceding 10 points early on in the second half hurt the side and in the wet conditions it was always going to be hard to get back into the game against a quality team like the Blues.
Joseph said he needed some X-factor players.
"I'm not confident of getting those guys coming south . . . but that is what our team needs. They are big strong, fast men who can do something."
He felt the new Forsyth Barr Stadium would help attract such players "and some of our performances this season will have heads turning".
Looking back at the season, he said the team would have to be happy.
"When I first came down to Dunedin, no-one cared about the Highlanders and no-one came to the games. I would have to give them a 10 out of 10 out of what we set out to do. As a coaching group and a leadership group, we have done what we set out to do at the start of the season.
"But it is frustrating because we had given ourselves a real opportunity to get ourselves into the playoffs. But that shows me I've got a job to do over the next few months."