Maybe, they haven't found yet their coach that will be a game-changer for the team. Though we don't know when will it come for the team, I would say, the players should work on how to improve their performance inside the field. It may be their motivation as to how they can show their best foot forward while playing. Sometimes, it would take just one gesture from one of the athletes, and everyone will follow thru. An inspiration for the whole team can change their path to show their best. Maybe, they haven't found that one yet.
The average player who plays at the world cup level is highly motivated, who doesn't want the world cup? Especially a team like Italy who has won the world cup 4 times, surely in the minds of the players they really want to repeat the glory days of their national team. But it's not an easy thing, not just changing the coach or just motivating the players can turn things around - they need more than that, tactics, mentality, and the quality of individual players, those are the important things needed by the Italian national team right now because they are still very lacking in these three things.