"Procedures foster fear."
That is, formalized procedures create an environment in which under-led and over-managed employees frequently face the fear of noncompliance. As the rule set grows and gets more complex, a person's ability to know and understand the rules decreases. And yet, the rules must be followed... thus the persistent fear of being criticized for non-compliance. [not that every set of formalized procedures leads to under-led / over-managed people... but it doesn't help].
That's why we need more punks in our organizations. Punks don't care about fitting in and following stupid rules. Punks don't mind criticism by The Man. Punks have a certain type of fearlessness. It's something the organization needs, sure, but punks don't do it for the organization. They do it for themselves and their peers... (and yes, this benefits the organization).
And cool things happen when the punks get in charge. For starters, there are fewer stupid rules, less complexity and less confusion. And that helps drive out fear, as Deming recommends.