FSB (Fortune Small Business) magazine had an article this month about making decisions. Specifically, on making bad decisions. Not surprisingly, they used the movie business as their example of how not to run your business.

They pointed out that in general Hollywood movies get made because of relationships- the studios like to do business with known quantities. They, like all of us, prefer to work with their friends. This goes for actors, writers, directors, etc.

But it seems that these relationships don’t really have much to do with a movie’s success. In fact, the more relationships a movie sports the WORSE is tends to do at the box office.

So why does the movie business insist on dealing with writers, directors, and actors that they have relationships with? Why not put that money towards more truly competitive projects that could reap a lot more cash for the studio?

Easy. FSB got it wrong- success or failure in the movie business is not really about how a particular movie does at the box office. It’s often a lot more about doing favors for your friends and expecting favors back from your friends. It’s about keeping your job. It’s about making a defensible decision, even if it’s completely the wrong decision.

And really, how is that any different from the rest of corporate America?