It happens - sometimes a coach finds he's not able to get through to players; they don't fully understand his ideas, his messages or his overall vision.
Lam was slowly progressing until this year. His talk of building cultures and systems and making improvements was validated by improvement in results. This year was supposed to be when it all came together. The arrival of All Black stars Piri Weepu and Ma'a Nonu would be the final ingredients to enable the team to surpass last year's achievement of reaching the last four.
Everything has collapsed and no one outside of the NZRU will understand if Lam is reappointed for another year. If he's not going to be the coach in 2013 - as surely he can't be - then why not make changes now? It's not as if things can get any worse.
The Blues have already lost most of those coming off contract: Jerome Kaino, Chris Lowrey, Brad Mika, Isaia Toeava, Benson Stanley and Lachie Munro.
The NZRU needs to consider the longer-term effect of allowing the Blues to drift through the next eight weeks when they are so clearly broken. What will be the impact on crowds and commercial support when the fan base has no faith and only growing ire for an organisation that refuses to admit its faults and make changes?
There is Lam's future to consider as well. He's thrown his soul into Auckland and the Blues since 2004 and while, ultimately, it hasn't worked out, no one can doubt his passion, desire and commitment to his players, franchise and job. He deserves to be able to extricate himself from the Blues with some dignity.
He's been linked with Bath, who confirmed last week that Sir Ian McGeechan will be leaving at the end of the season. When reports first surfaced about Lam heading to the West Country, it was in the context of him operating as head coach and McGeechan (his mentor at both Northampton and Scotland) as director of rugby.
Whether Lam remains of interest to the club, who say they will shortly announce a head coach, is not known. But undoubtedly there will be opportunity in Europe as Lam remains a respected figure from his playing days with Newcastle and Northampton.
The new season over there will begin in late August and, ideally, if Lam is going to take a position, he'd need to be there before the end of Super Rugby.
So why not let him begin that hunt in earnest now? Let him be free to assess and pursue alternative options so he and the Blues can both begin what will hopefully be brighter futures.