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I haven't followed all this.
Bosses have occasionally insisted on doing something wrong. When it's very wrong, I make it a point to exactly follow as instructed and allow the fallout to accumulate until the system is changed.
A bad system isn't fixed by ignoring instruction from management because either a. they won't notice you didn't follow the instruction, in which case their system is still wrong for everyone else, or b. they eventually fire you for not adhering to their system. That leaves only option c. to exactly follow the bad system until its dysfunction is made apparent and changed.
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