I do business systems consulting and I cannot tell you how true this is... not only are they mired in their tiny problems, sometimes they jealously guard them as well.
I think the most common kind of manager-think is some sort of dedication to appear being conservative in judgments; this can be true for any low level supervisor through to the topmost levels of management. This results in two behaviors: 1) you don't go out on limbs and you work to minimize all risk rather than take well-considered risks; and 2) the problems you deal with daily are "safe problems" that everyone from the board to the employees have accepted as facts of life and their existence is unlikely to get you fired or put you in a bad light.... even if it ought. So you don't solve your problems because the solutions may bring unknown problems of their own. Taking risks, and failing occasionally, is simply seen as failure and successes aren't remembered as long as failures (we remember bad news better than good news)... and any new thinking or new action is seen as risk.