Scott Berkun has written a great essay entitled "Why smart people defend bad ideas".

It's much broader than the title would suggest though. One snippet that seems especially pertinent:

In the software industry, the common example of thinking at the wrong level is a team of rock star programmers who can make anything, but don't really know what to make: so they tend to build whatever things come to mind... people that always worry about money despite how much they have, people who struggle with relationships but invest their energy only in improving their appearance (instead of in therapy or other emotional exploration), or anyone that wants to solve problem X but only ever seems to do things that solve problem Y.

Go, read :)

(I'd cite the source whereby I came upon this link, only I've forgotten where it was :( )