Their formal meetings were flawed and although people complained about them, the meetings remained unfixed. Their goals were conflicting and although people sensed something didn't quite mesh, that too was left alone. They had a person in an important executive position who was well qualified but not for that position. People tried to work around the person's weaknesses and the result was a form of continuing chaos and frustration. There were trust issues as well but no one wanted to accuse anyone of being dishonest and so those were left to fester. The people with the power and the people with the ideas were, for the most part, two different groups.
But on the surface, the organization seemed fine.
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