I’ve seen this kind of thing happen at companies. There is a serious problem that all the lower level people know about, but nobody says anything to the higher ups because nobody wants to be seen as a troublemaker and potentially lose their job. Everyone assumes that eventually it will become so bad that the higher ups will notice. That rarely happens in my experience. Instead things become bad and the solution is layoffs, reorgs, etc. In the midst of the chaos we can often make the change that precipitated the whole crisis without anyone becoming wiser. Rinse and repeat.
This is where big money consultants make their money. They come in and tell everyone what they already knew in a way that lets everyone pretend is was magically discovered.