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There’s a tricky variable called trust. As an employee hiring consultants, how do I build trust that you and your consultancy is going go deliver and make me look good? It usually involves building a relationship, activities like hunting or golf are classic examples of these activities.
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This doesn't happen nearly as often as people think. I'm involved in multiple single digit million contracts with vendors, and not once has anyone at our company even met the vendor AMs in person. If I choose a vendor that is twice as expensive as a competitor I am going to have to justify that to the VP I report to and "we had fun on the golf course" is just not going to cut it.
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> if the "mistakes" it makes [...] aren't in fact desired by some people in the system

This process goes both ways. The people in the system align to the process. So maybe the "mistake" wasn't desired to begin with, but once it's there someone things: if that's the way they want it let's change our ways to fit. That's why these things seem to dumb from the outside.

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There's always going to be a slight mismatch between the supposed aim of any organisation and the incentives of the management and every single employee unless they're all shareholders and even then...
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