This Sounds Familiar
Seriously enough, I think I know exactly the fellow that this definition is meant to describe:
Asshole Driven Development (ADD) – Any team where the biggest jerk makes all the big decisions is asshole driven development. All wisdom, logic or process goes out the window when Mr. Asshole is in the room, doing whatever idiotic, selfish thing he thinks is best. There may rules and processes, but Mr. A breaks them and people follow anyway.
Check out Scott Berkun’s full article (source, down next to the tags) regarding Asshole Driven Development and other unwritten office methodologies. It’s a hoot, and it’s probably a lot more applicable than your situation than you’ll realize at first reading.