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I hope that you have been documenting the actions of your boss where your direct management has been undermined and dimished due to direction from your boss. Citing specific instances where you recognized the problem, had a plan to implement to remedy the situation only to be told by your boss that you could not do it, will help you. As in any chain of command, I would have an honest talk with your immediate supervisor. If nothing is productive from that meeting, then you go higher.
I can not stress, when you are in a leadership position, the importance of documenting your contacts with people...especially when you are being undermined. A good paper trail will help you in the long run!
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