From rigid hierarchy to creative ease - How to anchor innovation in your company

Introduction: When hierarchy becomes an innovation killer

Do you know the picture? Everything runs smoothly, the processes are perfect, the KPIs are right and yet the innovation pipeline remains empty. Welcome to the efficiency trap! In recent decades, German companies have learned how to streamline organizations as much as possible. But efficiency is no guarantee for the future. It keeps you running, but it doesn't move you forward.

In this article, we'll look at

• Why hierarchies often block innovation
• How to bring “creative ease” to your organization and
• Which practical examples show that this approach also works in German SMEs.

Why German companies often block innovation themselves

Since the 90s, the lean wave has been rolling through our industries. The result: streamlined processes, standardized processes, global market shares. But: With every streamlining, rigidity also grew. Today, many SMEs are faced with the paradoxical situation: They can build existing products highly efficiently, but new ideas are tormented by a thicket of votes, committees and approvals.

To put it provocatively: We have built processes that protect us from ideas.

Figures underline this: According to a McKinsey study from 2025, 67% of European SMEs see their own culture as the main obstacle to innovation projects. Not technology, not money, but culture.

What “creative ease” means

Creative ease is the opposite of cumbersome hierarchy. It is created when employees can contribute ideas without waiting for hierarchy approvals. It thrives on psychological security, openness and speed.

Characteristics of creative lightness:

• Ideas can be expressed unchecked.
• Mistakes are learning steps, not career traps.
• Experiments are small, fast, and inexpensive.
• Leadership gives guidelines, not orders.

Practical examples from industry

Plant engineering: Innovation sprints despite classic project structures

A plant manufacturer from Hesse has introduced “innovation sprints” in its projects: Parallel teams are working on disruptive ideas while the main project is running. Instead of taking a year for new approaches, the first results are available after six weeks.

Electrical engineering: spin-offs as innovation accelerators

The Trumpf example shows how easy it is to spin off: With Axoom, a digital platform for networked manufacturing was created, outside the rigid corporate structures. Axoom was able to experiment, test new business models and react more agilely. It is precisely such spin-offs that also help SMEs: They create protected spaces for digital innovation without destabilizing their core business.

Mechanical engineering: creative islands in the factory

A mechanical engineering company from NRW set up “creative islands”: small units within production that work on future topics. Free from reporting obligations, with a small budget. Result: This resulted in two new digital services, which were later transferred to the main organization.

As you can see, it is the small steps and experiments in the company that bring about change.

The path from stiff to easy — steps towards cultural innovation

How do you move from rigid hierarchies to creative ease? Some specific levers:

1. Change language: From “you” to “you” - language creates closeness and lowers barriers.
2. Rethinking meeting culture: Less reporting and PowerPoint, more exploration.
3. Create spaces: digital platforms or physical labs for experiments.
4. Allow mistakes: Establish bug reviews as learning rounds.
5. Leadership as a role model: Managers must actively endure uncertainty and demand experiments.

Typical misunderstandings & resistances

• Ease = chaos? No Creative ease requires guidelines, not anarchy.
• So no one is working anymore? Wrong. Personal responsibility leads to more commitment.
• That doesn't match German precision? Yet. Precision and creativity are not contradictory — the best innovations are both at the same time.

Conclusion: balance of structure and lightness

Sustainability lies not in total efficiency, but in balance. Companies need structures and management that ensure day-to-day business and ease that makes new things possible. Efficiency keeps you running, innovation moves you forward.

Let us talk about how you can make hierarchies easier and create room for innovation in your company — Please contact me for a first meeting.

You can analyse the following discussion questions for yourself:

• Where are hierarchies currently blocking your innovation projects?
• Which experiments with meeting or error culture have you already dared to do?
• How much lightness can your company handle?
• Which areas could you set up as “creative islands”?
• What does psychological safety mean in your organization?

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Sources

• Müller, Hans (2024): Innovation culture in SMEs, Munich: Springer Gabler.Andersen,
• Lars (2025): The Nordic Way of Innovation, Oslo: Innovation Press.
• McKinsey & Company (2025): The State of Innovation Culture in Europe, online.
• Harvard Business Review (2024): Innovation and Organizational Culture, online.