When you see that process has become as important as, or even more important than results, then you know that management inertia has set in. It's not that process doesn't matter; it's that it shouldn't be more important than the actual numbers.

It's not something that's limited to business; I've complained about the "policy paralysis" I see at my daugher's school more than once. Between the time I was in high school and now, it seems that actual facts have become less relevant than policies. It's too hard to make judgment calls on behavior, so universal policies are put in place. Drugs are bad; therefore we'll toss out anyone carrying an advil.

You see the same "thinking" in corporations. Someone brought in a virus via an IM client? Fine - just ban all IM clients, and use security tools to block the ports.

This kind of policy based approach is a poor substitute for actual thinking and judgment - it may prevent some problems, but the downstream losses are never considered. Managers should actually manage people, not create bullet lists of policies.