Permanent Equity: Investing in Companies that Care What Happens Next

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Teaching, Training, Documentation & Resilience

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The fact of institutional knowledge — or institutional memory — plagues every organization. "Oh go ask so-and-so, they know everything about [that process, that account, that machine, that filing system].” And, if you're so-and-so, it might make you feel good to be the go-to person on XYZ. Being the only one who knows how something works is pretty good job security.

But squirreling information away in one person's head is a dangerous game of telephone to play. When knowledge about special processes, equipment, relationships, etc. lives and dies with one individual, it creates information bottlenecks and confusion, perpetuates risk if the person retires, leaves, or gets hit by a bus, and prevents the development of new employees and ideas.

— From The Dangers of “Ask Around”

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