I'd love to parse out all the individual points of fail here. Stack Ranking is one. Management Business Objectives are another. Aggressive adherence to "the numbers" is another. Just being big and slow is probably the, ahem, biggest theme, though.
What's most interesting is that *many* of the fails are lauded as wins elsewhere. Valve has stack-ranking and we love it. Obsessive measurement and tweaking based on facts is (as far as I know) something we highly regard about Amazon.
So I guess my question is: when do best practices go bad? Why? How?