There was a director-level organization of about 50 people trying to solve a technical research-level problem. The physicist found an innovative solution that was too simple and just worked. When he demonstrated it to everyone, he thought everyone would be very happy. On the contrary, his manager started having unexplained issues with him and he was shortly let go.
He has ultimately given up on corporate politics and is currently a physics teacher at a usual local college.
As the physics teacher, he found that the students in his class barely knew basic stuff (vector addition, etc.) from the pre-requisite courses. He tried to teach to cover up. He diligently and fairly checked the answers/solutions from the students in the mid-term exams, and found that practically no one passed.
He was shortly called by the college dean and heard back. The dean's primary concern was that irrespective of whether students actually learn or not, if so many fail the exams, the college would get shut down.
He is now forced to pass the students even while he realizes that by passing them now, he's setting them up for failure in the future if they actually pursue physics.
I surmise that if the Shirky Principle were to stop acting, say 80% of projects/institutions may just go away and should.
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In some cases, it's even worse -- Institutions invent fake problems that they allege to be the solution for and then of course never solve them.