If people are consistently going around the system, its probably because the system prevents them from doing their job effectively. Share the credit with the people who work for you. Take the blame yourself. Problems Go where the problems are and solve them. Be the manager who got the project back on schedule or turned the division around.
Problems are good news.
The only problems you don't have are the ones you don't know about yet. You can't alway predict what will go wrong, but you can be certain something will go wrong. In Around the World in Eighty Days , Phileas Fogg had no way of knowing that he would be delayed because the trans-Indian railway wasn't finished. But he knew he'd run into an obstacle sooner or later, so he arranged to arrive in India two days ahead of schedule. If you have a problem with someone, confront them.