Dangers of excessive conformity among employees?

Excessive conformity stifles innovation. It also leads to uproductive behaviour. As a former public servant, I witnessed ridiculously unproductive activities because the behavioural norm was to avoid risk at all cost and punish those who seemed 'risky'. Was gobsmacked at the extent to which 'unusual' behaviour was frowned upon at the same time as pathetic paper-shuffling to avoid risk was rewarded.