[kelvinn]

To get into the mindset of the managers, consider skimming James Collins' book "Good to Great". One point to take away is that any leaders in your organisation will appreciate the brutal facts.

Make sure you have documented what issues and risks you have expressed to the PM and Lead Developer - maybe actually in whatever tool you are using, or at least in email. Make a record that team's morale is decreasing.

You and each of your team members should directly be telling the PM and Lead Developer that you are worried with specific risks or issues.

Take the registers to somebody with more authority in your organisation. Come in with a few recommendations. Present the facts and tell them you think there's a problem, and ask if they agree or not. If they do agree, make sure to get what the next action will be.

Just my immediate thoughts. Good luck.

[UK-AL]

This is super idealistic. In reality in small/medium companies people are connected and group together, and protect their friends. Most likely the pm is friends with the senior manager.

[lazyjones]

Also, in reality many employees do not have the insight or ability to identify critical issues they think they have.