What is wrong with this picture?

Okay…so you have an organization with plenty of talented people that perform a certain function. Let’s say that function is Widget building. The PHB of this organization is in desperately over his head. He can’t manage his people because he has no idea what Widget building is about. When he realizes he doesn’t understand the Widget building business he decides to micromanage the whole process. When that fails….he hands over the whole thing to contractors relegating his talented staff to nothing more than spectators. sigh…such is life at Ivory Tower Inc.