I read your story and I feel your pain, but I have bad news. The problem is not your people, the problem is you.
You have a responsibility that goes way beyond developing great products that wow customers; you have the responsibility of leading!
Leadership is one of those subjects that most people feel they have covered, I thought I had it covered too until I found myself in exactly the same shoes as you are wearing right now, and boy did it pinch. It took a while for me to realize I was the problem but three things clued me in:
1. I found out that I kept firing and hiring new people and it did not make a difference
2. I met a friend who was building a great company with what I would consider average people and he was really getting things done. The difference was that leading people came natural to him while building products came natural to me
3. I finally came to terms with the fact that I enjoyed being the solution point and the center of the product development universe. Clients loved me, me people stood in awe of me and I loved it and hated it at the same time
You need to get into a leadership coaching program. I'm sure you will find some very capable people on clarity but trust me, the sooner you start, the better.
Your organization will not change until you change, and there is no better way to say it. Like I said, I know your pain and you are not alone in this my friend.
