Conway's Law

http://en.wikipedia.org/wiki/Conway%27s_Law
"..organizations which design systems ... are constrained to produce designs which are copies of the communication structures of these organizations."

So, organisations will tend to produce outputs that resemble their internal communications structure.
The internal communications structure is a derivative of the internal social structure.
The internal social structure is a derivative of the characters of the people in the organization. This includes the leaders and followers in the organisation.

Hence.. if you want excellent outputs, you must have the excellent people with character. Extra emphasis on character should be placed when building a team, not just weightage on ability.

Argument flaws?