Still Productive?

Are we just an organization that has no natural threats to our existence and have evolved into a culture of complacency? Or is this happening because we have a weak, divided, and distracted council that fails to provide the clear sense of direction, momentum, and goal focus needed by the executive management team? Or is it a combination of both issues?
It is clear that it's more important not to be wrong than it is to be right. Right now our organization has no power to change, i.e. only the power to veto or passively oppose innovation, but nobody has the power or capacity to originate and champion initiatives. Our culture survives by avoiding blame and accountability which means you can't take risks so that if anything goes wrong you get to blame the system.
It’s also apparent the there is a conflict between the manager and the council that has left the organization without a rudder. Lacking a clear focus and a set of meaningful priorities, people within the organization are beginning to focus their efforts into activities of their own choosing. Without a sense of higher purpose, department heads put their own priorities and political agendas above the success of the organization. Ultimately, the result will be that no area within our organization will have the resources to be minimally effective at achieving any results. This is potential the desired result of factions within the council.
How will we adjust?