Fortunately for Picard, he was off the ship when the ridiculous display of incompetence went down. The best ship in the fleet loses to a 20-year-old BOP because they act all cavalier about returning fire, and because they don't think to scan Geordi and his VISOR for tampering after he's been held prisoner for awhile.
so Picard dodges the blame.
Isn't the mark of a good boss supposed to be how smoothly things run when he's not around? The Captain is still responsible.