"The cost of 'corporate amnesia' - or inefficient knowledge sharing - can top tens of millions annually. Yet almost no one in the boardroom is talking about it."
"When CEOs depart, they rarely leave alone. Senior teams move on, long-tenured executives retire, and the institutional knowledge those leaders carry quietly disappears."
"A company's most valuable knowledge is often embedded in years or decades of decisions, pivots, failures, and breakthroughs. It lives in boardroom debates, cultural inflection points, product launches, regulatory battles, and moments when leaders had to choose between competing priorities under pressure."
Public companies are experiencing the fastest CEO turnover in over a decade, often promoting first-time leaders. This shift coincides with accelerated AI adoption across business functions. However, the loss of institutional memory, or 'corporate amnesia', poses significant risks, as it can cost companies millions annually. Leadership transitions often result in the departure of senior teams and long-tenured executives, taking with them valuable knowledge embedded in years of organizational experience. Without efforts to preserve this knowledge, companies may struggle to adapt effectively to new challenges.
Read at Fortune
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