Published on: August 1, 2025 / Updated on: August 1, 2025 – Author: Konrad Wolfenstein
The Growth Paradox: When Processes Suffocate Success – The Confusion of Process and Result – Image: Xpert.Digital
Steve Jobs' Warning: Why Established Companies Stumble Today
The innovation trap: How rigid processes harm German companies
As early as 1995, Steve Jobs warned of a fundamental misconception that paralyzes many established companies today. His observation that growing companies attempt to replicate their success by institutionalizing processes, but in doing so confuse process and results, proves prophetic for today's German business landscape.
The trap is seductive: After years of success, the desire to preserve the magic formulas for success arises. Companies begin to document, standardize, and institutionalize their processes. What originally emerged as a flexible response to market needs transforms into rigid structures. The vibrant spirit of innovation gives way to bureaucratic processes.
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The German automotive sector as a prime example
Nowhere is this problem more evident than in the German automotive industry. BMW, Mercedes-Benz, and Volkswagen, once symbols of German engineering and innovation, are now struggling with the consequences of excessive process orientation. The industry, which dominated for decades through its excellence in the combustion engine, has institutionalized these successful processes so strongly that it has missed the transition to electromobility and digital transformation.
The numbers speak for themselves: In 2024, German automakers recorded dramatic profit declines of around 30 percent, while Asian competitors like Kia, Suzuki, and Toyota took over the lead. This year alone, nearly 19,000 jobs were lost in the automotive industry. The former margin kings have been pushed out of their leading positions, not by a lack of technical expertise, but by structural rigidity.
The bureaucratic trap of the German economy
The problem isn't limited to the automotive industry. Germany suffers from systemic overbureaucratization, which costs the economy up to €146 billion annually in economic output. This enormous sum corresponds to approximately 3.6 percent of gross domestic product and demonstrates the extent of the structural problems.
The reasons are complex: Since 2018, the number of information obligations has increased from 11,435 to 12,390, while the annual bureaucratic costs for businesses have grown from €50 billion to €66.6 billion. Companies spend an average of 22 percent of their working time on bureaucratic tasks – time lost for value-added activities.
Small and medium-sized enterprises (SMEs) are particularly affected by this burden. 85 percent of automotive suppliers report being heavily or very heavily burdened by bureaucracy. As a result, 35 percent of companies are already planning to relocate investments abroad.
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Meetings as productivity killers
A concrete example of this process fixation can be seen in the meeting culture of many large companies. Steve Jobs recognized meetings as the biggest productivity killer back in the 1980s and introduced meeting-free Thursdays at NeXT. His meetings were deliberately kept short and held with as few participants as possible.
Today, we're seeing the opposite: endless rounds of voting, committees coordinating other committees, and meetings to prepare for further meetings. Digital transformation has even accelerated this trend through tools like Zoom and Teams. Many companies haven't reduced the number of their meetings to a reasonable level since the coronavirus crisis.
The opportunity of artificial intelligence
This presents a historic opportunity. Artificial intelligence and automation can serve as leverage to escape the bureaucratic trap and return to genuine business development. AI is not just a technological tool, but an invitation to fundamentally rethink how work is organized.
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Streamline processes through intelligent automation
AI can take over repetitive, rule-based tasks that currently consume a large portion of working time. Studies show that AI-powered process automation leads to significant efficiency gains. Companies like Google and Meta have been able to dramatically increase their revenue per employee despite downsizing – Google doubled productivity, while Meta increased revenue per employee from $250,000 to $500,000.
Reduce bureaucracy through digitalization
The digitalization of public administration alone could generate €96 billion in additional economic output for Germany annually. AI can help accelerate complex approval processes, intelligently fill out forms, and automatically fulfill compliance requirements. Nordic countries like Denmark and Sweden demonstrate that a high level of regulation doesn't necessarily lead to bureaucratic problems if the administration acts as a high-quality service provider.
Make knowledge immediately usable
AI can democratize the knowledge available within companies. Instead of information disappearing into endless documentation or being accessible only to a few experts, AI systems can provide relevant knowledge contextually and situationally. This accelerates decision-making processes and significantly reduces coordination loops.
Relieve employees of repetitive tasks
77 percent of employees confirm an increase in workload due to the introduction of AI, but this is often due to incorrect implementation. When used correctly, AI relieves employees of monotonous tasks and creates space for creative and strategic work. Automation through AI enables them to focus on value-added activities.
Massively increase efficiency and time-to-market
The combination of lean processes and AI support can dramatically shorten time to market. Companies that strategically deploy AI can reduce their development times by up to 80 percent. This is achieved through:
- Accelerated data analysis and trend identification
- Automated quality control and testing
- Intelligent resource allocation
- Parallelization of development processes
- Early risk detection
The paradigm shift: From administration to design
The crucial point is a mental shift. Those who merely manage will be managed. Those who use AI correctly will shape the future. However, this requires a shift in thinking at all levels:
Redefining leadership
Managers must transform from process managers to innovation enablers. Instead of establishing control structures, they should create spaces for experimentation. AI can help make risks more calculable and enable rapid learning.
Establish a culture of error
Steve Jobs emphasized the importance of mistakes for innovation: "Sometimes when you innovate, you make mistakes. It's best to admit them and move on to improving other innovations." AI can help detect mistakes earlier and limit their impact.
Promote decentralized decision-making
Instead of delegating decisions upward through hierarchies, AI can bring relevant information to where it's needed. This enables faster, more informed decisions at all levels.
The implementation: pragmatic and targeted
The introduction of AI should not be seen as another process, but rather as a means of simplifying processes. Successful companies start with concrete pain points:
- Automating the most time-consuming manual processes
- Intelligent support for recurring decisions
- Proactive information about relevant developments
- Simplifying complex compliance requirements
The competitive advantage of the future
Companies that have the courage to challenge their established structures and embrace AI as a partner for innovation will gain a decisive competitive advantage. They will not only work more efficiently but also rediscover the innovative strength that made them successful in the first place.
The challenge lies not in the technology itself, but in the willingness to let go of cherished processes and refocus on the results. AI is not the solution to all problems, but rather a powerful tool for finding the path back to true value creation.
The time for half-hearted digitalization projects is over. Companies must decide: Do they want to remain trapped in the process trap, or do they use AI as a springboard into a new era of productivity and innovation? The answer will determine who will be successful in the coming years and who will end up in the museum of economic history.
The transformation begins with the realization that success cannot be institutionalized – it must be earned anew every day. AI gives us the tools to do this more efficiently and successfully than ever before.
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