One of these days we ought to do a deep dive into dysfunctional corporate decision-making, but for now I think the missing piece in the explanation of the green-lighting of seemingly doomed projects is the asymmetric risk associated with conventional versus unconventional decisions.
When everyone else is doing something, even when it is something that has failed badly and consistently in the past, you probably won't lose your job for doing the same thing. While your mother may not have been impressed by the "everybody else was doing it" defense, it is generally good enough to satisfy a Board of Directors.
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