Food for thought: any organization is vulnerable to such stagnation and dysfunction, particularly when it was born for and evolved with a state of affairs that no longer exists. Either the organization must adapt, or it should die. Thankfully, the death of dysfunctional organizations is a given in free markets -- perhaps even a reason for bittersweet celebration.
Governmental organizations, in contrast, have no incentives to adapt, and no "recycling" mechanism. Failure is emphatically not an option. Worse, bureaucracy inevitably takes on the primary mission of preserving itself.