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Eneasz comments on Open Thread June 2010, Part 3 - Less Wrong
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As long as the system extracts & uses more work than it's equivalent healthy system - after wastage - then it will outperform it. It doesn't matter if the system burns through employees every few years, there are plenty of other employees to burn up.
I would think sick systems have less good judgment than healthy systems-- they don't just burn up employees, management is less likely to get information about any mistakes it 's making.
On the other hand, sick systems do at least persist for quite a while. I'm guessing that they coast on the conscientiousness and other virtues of the employees. It's conceivable that some fraction of the excess work isn't wasted.