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Why smart companies repeat dumb mistakes
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The cost of organizational amnesia
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Monday, March 9, 2026
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The cost of organizational amnesia
</h2>
</td>
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<tr class="trpad20">
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<em style="font-size: 16px">
Here we go again.
</em>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
It’s a feeling many of us Cleveland Browns fans experience at some
point in the second half of the first game of each new season. We find some way to convince ourselves that we’re due for good things to happen, but at least since returning to the NFL as an expansion team in 1999, good things rarely do.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
From 1999-2021, the Browns’ record after Week 1 of the season is one win, 22 losses, and one tie.
</span>
<em style="font-size: 16px">
Woo-hoo!
</em>
<span style="font-size: 16px">
Then, the team rattled off three consecutive opening game victories from
2022-24, which might lead you to believe the organization had begun a cultural turnaround. The head coach won the league’s coach of the year award twice in his six seasons on the job.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
He was fired this past offseason.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
The Cleveland Browns are the professional sports poster child for appearing to make the same mistakes over and over again, or in other words, an organization suffering from memory
loss.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Replacing the head coach may or may not work out for them. This isn’t a cheap shot toward the team I’ve loved like family (
</span>
<em style="font-size: 16px">
I see you, Jets fans
</em>
<span style="font-size: 16px">
) since I was in kindergarten.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
The people running the Cleveland Browns are neither stupid nor lazy. Quite the opposite. But outside of some supernatural explanation involving curses or jinxes, how can the
team consistently perform so poorly in a league intentionally designed for parity?
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Maybe it’s institutional forgetting. Organizational memory loss.
</span>
</div>
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Orlando is where global leaders are coming to achieve a greater good
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Limbitliss Solutions is improving lives with custom bionics that combine
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advanced technology and personal expression. And when it comes to reimagining the future, they’re not alone. A bevy of industries leaders are changing the world-and they’re doing it here. With so much innovation around you, imagine what a
meeting in Orlando could achieve for you.
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<span style="font-size:20px;font-family:Arial;color:#000000">
Organizational memory is the knowledge accumulated from past decisions
</span>
</h2>
<div>
<span style="font-size: 16px">
Organizational memory lives in three places, said Arthur Favier, founder and CEO of
</span>
<a data-linktext="Oppizi" data-linktype="Normal" style="color:#105C8E;font-size:16px;" target="_blank">
Oppizi
</a>
<span style="font-size: 16px">
, a firm which digitizes offline marketing. Those three places are:
</span>
</div>
<ul style="font-size: 16px">
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
People
</span>
</li>
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Process
</span>
</li>
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Culture
</span>
</li>
</ul>
<div>
<span style="font-size: 16px">
“If one fails, the other two have to pick up the slack,” Favier said. “If you
have high turnover, for example, your processes have to be extremely codified. If you have a structure that’s constantly in flux, your culture has to be one that understands why we made certain decisions in the past.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
In high-growth environments, you’re not just losing people with turnover, but the context for which decisions were made during their tenure, he said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“New people are given tasks, not the rationale for the
tasks,” Favier said. “Decisions are repeated, not knowing the trade-offs that went into the decision. This is how organizations begin to implement the same solution twice.”
</span>
</div>
<div>
<br/>
</div>
<h2 style="mso-line-height-rule:exactly;Margin:0;font-family:Arial;font-size:20px;color:#000;font-weight:bold;">
<span style="font-size:20px;font-family:Arial;color:#000000">
Turnover is the most obvious and visible cause
</span>
</h2>
<div>
<span style="font-size: 16px">
Alex Sarellas, managing partner and CEO of PAJ GPS, a maker of GPS tracking devices
and security solutions for vehicles and people, agrees with Favier that this problem hits tech companies especially hard.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“When an engineer leaves our team, for example, we aren’t just losing someone who understands code or was filling up a role,” Sarellas said. “We’re also losing all of the reasoning this person put into past decisions, the shortcuts they knew, and the kind of practical knowledge that no amount of writing can teach you. I’ve seen the same problems come up again and
again just because this one person who knew the entire backstory and cause has left the team.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Archie Payne, co-founder and president of CalTek Staffing, sees these same pain points play out due to his focus on IT and engineering, he said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“Organizational memory is a competitive advantage, particularly in highly technical environments, and when it disappears companies often lose quality, efficiency and morale along with
it,” Payne said. “Turnover isn't the only thing that causes this issue, but it is the most obvious culprit. Losing a senior engineer means also losing their context around why systems were built a certain way, as well as any decisions they didn't fully document and their hard-learned lessons from past failures.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“As a result, future teams repeat the same mistakes as in the past because they don't fully understand the reasoning behind certain decisions. I would say this issue is a
particularly high risk in IT environments. Legacy systems and architecture decisions often live in people's heads, meaning companies inherit technical debt they didn't even realize they had when those individuals exit.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
The first step to counteracting the issue is for leaders to treat knowledge as an asset rather than an afterthought, Payne said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Sarellas’ company has implemented these very
changes.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“Now, we document as much as possible and are trying to build systems that help the company ‘remember,’” Sarellas said. “Clear incident logs, short notes that explain the reasoning behind major decisions, and cross-team reviews where people share the knowledge they have.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“I think the biggest change has been cultural, though, because we’re encouraging teams to write down why we did something instead of just what
was done. This makes the information valuable and also adds to the company’s memory, even if a team member leaves.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
The turnover problem is easy enough to spot. Other causes of structural amnesia may be less obvious, Favier said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Companies are often changing direction faster than they learn. Examples of structural forgetting include:
</span>
</div>
<ul style="font-size: 16px">
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Leadership transitions
</span>
</li>
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Rebranding
</span>
</li>
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Aggressive pivots
</span>
</li>
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Frequent restructuring
</span>
</li>
</ul>
<div>
<span style="font-size: 16px">
“When the organization’s priorities change every 12-18 months, learning compounds too slowly,” Favier said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Another factor
that leaders may not account for is the concept of documentary theatre, Favier said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“Organizations produce reports and dashboards, but not the infrastructure for knowledge transfer,” he said. “Knowledge exists, but it’s not being leveraged. This is not memory, this is storage.”
</span>
</div>
<div>
<br/>
</div>
<h2 style="mso-line-height-rule:exactly;Margin:0;font-family:Arial;font-size:20px;color:#000;font-weight:bold;">
<span style="font-size:20px;font-family:Arial;color:#000000">
Acquisitions disrupt institutional memory
</span>
</h2>
<div>
<span style="font-size: 16px">
“The idea that companies fail because they lack memory rather than intelligence is especially visible in mergers and acquisitions,” said Klint Kendrick, adjunct instructor of human capital management at the NYU School of Professional Studies.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“Most acquirers are smart and sophisticated,” Kendrick said. “They model financial synergies, assess
market positioning, and run robust due diligence. However, they struggle to preserve the operating memory embedded in the target company.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
MIT Sloan compared acquired employees to similar new hires at the same firm and found that acquired workers are 22% more likely to leave in the first year, Kendrick said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“Retention rates improve when the founders stay onboard and when the acquired firm remains standalone for some time
rather than being integrated quickly,” Kendrick said. “This second pattern suggests the issue goes beyond turnover.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“When we evaluate this through the lens of organizational memory, an acquired firm’s success often lives in experiential learning rather than documentation. This means the decision-making process, team coordination styles, customer relationships, and tacit technical knowledge are critical success drivers. During integration, those elements are altered before buyers
understand how they produced results.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Over time, that disruption appears as slower growth, stalled synergies, and missed financial targets and milestones, Kendrick said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“New leadership teams treat recurring issues as novel because the people and structures that once carried the solution are gone,” he said.
</span>
</div>
<div>
<br/>
</div>
<h2 style="mso-line-height-rule:exactly;Margin:0;font-family:Arial;font-size:20px;color:#000;font-weight:bold;">
<span style="font-size:20px;font-family:Arial;color:#000000">
Approaching the retirement cliff
</span>
</h2>
<div>
<span style="font-size: 16px">
More than half of frontline workers over 55 plan to retire within five years, said Lynda Braksiek, the principal research lead for knowledge management at the American Productivity & Quality Center (APQC), a best practice and benchmarking firm.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
The largest knowledge transfer event in modern workplaces may already be underway, and most organizations aren’t ready, Braksiek said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
According to APQC:
</span>
</div>
<ul style="font-size: 16px">
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Only 8% of organizations consistently capture knowledge
</span>
</li>
<li>
<span class="ql-ui">
</span>
<span style="font-size: 16px">
Only 35% document critical knowledge
</span>
</li>
</ul>
<div>
<span style="font-size:
16px">
“Organizational dynamics, not just turnover, accelerate knowledge erosion,” Braksiek said. “Knowledge transfer efforts often stall due to lack of leadership buy-in, time, resources, supportive culture, and technology. Silos further keep expertise in isolated pockets, leading to duplicated work, slower decisions, and lost insight across functions.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Mark Gillilan, founder and chief operator of Kyoto Botanicals, a wellness brand, said that outsourcing creative leadership erodes
institutional brand memory.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Companies hire new CMOs. Those CMOs hire new agencies of record. A new brand narrative is formed.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“The agency of record model is the primary driver of institutional memory loss in modern brands. I have seen it from the inside at too many companies: they struggle and fail because they outsource their core brand (branding and creative) to external agencies and lose the soul of the brand in
pursuit of shiny and new marketing whenever a new CMO takes over and switches AORs,” Gillilan said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“The company's history and DNA and ‘why’ vanish as the new CMO and agency try to prove their worth, and the best way they know how to do that is through change. Over enough time this leads to the dilapidation of the core brand itself and the connection to its history and its customers,” he said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
This cycle leads to brands
getting reinvented every few years instead of brand equity being compounded.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
This is the argument for keeping creative branding efforts 100% in-house, Gillilan said.
</span>
</div>
<div>
<br/>
</div>
<h2 style="mso-line-height-rule:exactly;Margin:0;font-family:Arial;font-size:20px;color:#000;font-weight:bold;">
<span style="font-size:20px;font-family:Arial;color:#000000">
How to fight organizational memory loss
</span>
</h2>
<div>
<span style="font-size: 16px">
Payne recommends enhanced
documentation with decision logs, and meaningful exit interviews where key contributors leave behind insightful, instructive manuals on how and why they did things.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Sarellas is especially focused on documenting not just what happened, but why.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Braksiek recommends knowledge mapping and what she referred to as communities of practice.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“Leaders can combat memory
loss through intentional knowledge transfer and communities,” Braksiek said. “Structured approaches including risk assessments, expert interviews, knowledge mapping, and customized transfer plans can help preserve critical tacit knowledge before it disappears. Communities of practice break down silos, accelerate learning, and connect employees to expertise across the enterprise.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
AI can be used to help scale institutional memory but only with strong governance and content management,
Braksiek said.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
“AI is already being used to record, summarize, and convert expert insight into reusable knowledge assets,” she said. “However, barriers to adoption are largely rooted in governance and content management gaps, not necessarily cultural resistance. Without structure and oversight, AI can amplify outdated or inaccurate knowledge instead of preserving institutional wisdom.”
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Organizations don’t only suffer from
bad decisions. They suffer from forgotten ones.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Whether it be a football team, a startup, or a global behemoth, institutional learning only compounds when memory survives leadership changes, turnover, and time.
</span>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size: 16px">
Otherwise, new seasons often begin the same way — with rebuilds and reset buttons.
</span>
</div>
<div>
<br/>
</div>
<div>
<em style="font-size: 16px">
Here we go again!
</em>
</div>
<div>
<br/>
</div>
<div>
<span style="font-size:
16px">
—Matthew Fray
</span>
</div>
</td>
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Trusted by c-suites and Wall Street.
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From legacy institutions to the next generation of disruptors,
</span>
<strong style="color:#105C8E">
<a data-linktext="Semafor Business" data-linktype="Normal" style="text-decoration:none;color:#105C8E;" target="_blank">
Semafor Business
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