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It happens a lot. And it's something they don't teach you in business school.
If an exec's butt is on the line over a given product development or department's performance, he will almost certainly micro-manage it. He will have to have a malleable product manager or department head in place. A strong, independent type will just create too much conflict. I've been through it myself as a :ahem: very Type-A, independent manager. Micro manage me and it's going to go bad for everyone involved.
Funny, that I never put the Valentine/Wedege thing in this context but it makes perfect sense.