The Rossonero have changed coach midseason with Sergio Conceicao replacing Paulo Fonseca, but were bounced out of the Champions League and now risk missing a top four finish.
Braida, who spent 27 years as a director at Milan, didn't hold back in his criticism.
He told So Foot: “I am sad.
“Seeing Milan in this state makes me feel bad.
“A crisis of identity and a lack of a sense of belonging. Big mistakes have been made for years, at all levels, and the consequence is that we have a club and a team without identity.
“I predicted at the start of the season that this wouldn’t be a competitive team: the club is too unstable, there is no clear direction, coaches come and go, and the squad changes every year.
“To be ambitious, continuity is needed, for example, by allowing a coach to work for 2-3 years, ten if possible.”
Braida also said: “The players are responsible, but it’s difficult to perform in a club without identity.
“What’s missing is leadership, a strong man like (Silvio) Berlusconi was. With him and (Adriano) Galliani, there was a clear direction.
“They don’t have the consistency and personality to be leaders. No one at Milan is a leader today.
“I would bring in 4-5 Italian players, like at Inter for example. This allows you to create an identity, and then I would bring in players with character and personality, it’s the most important thing.”
Braida says Milan, after winning the Scudetto, have fallen since the shock sacking of technical director and Rossonero legend Paolo Maldini.
“Sacking him was a huge mistake, and firing him in that unforgivable manner,” Braida said.
“Maldini is a legend who worked very well and represented the institution at its best.
Ibrahimovic is not a point of reference, a strong man. He doesn’t yet have the skills and experience to be a strong man, capable of managing a club; he’s just a communicator.”