When institution become more important than people and tasks it should care about.
Here expression is used in negative meaning.
It happens to state institutions, corporations, politic parties, religious organisation,… even humanitarian organisations.
Employed people hide under the rules, constitutions, lows,… but they take no responsibility. Like stereotypic “bureaucrat”. Sometimes sub-rules and “traditions” make organisation completely disaffected from it basic constitution, or what it was made for.
Sometimes take system course on it own and no person can really change it.
In the name of worthy means and goals (social justice, ) they turn to destructive, limiting, negative factor. The road to hell is paved with good intentions- proverb.