5 Reasons Why Institutional Memory Matters

If you have ever watched a movie where the character wakes up every morning with no memory of the day (or week) before. You know that it can complicate things. That’s actually a real (although rare) condition, but it’s also how a lot of businesses run their day-to-day affairs.

Instead of standardising processes, they do new and different things every time. And like the movies, it’s quite chaotic.

The answer lies in what we know as “institutional memory.” Here’s what that is, and how you can use it in your business.

What Is Institutional Memory

Before we get into the how let’s look at the what and why.

Institutional memory refers to a body of knowledge. Which is obtained during the course of doing business. It is independent of any one person. In other words, you record how you do things, why you do them that way, and what your processes are. So that if a key staff member were to leave. You would still have that institutional knowledge to allow you to fill the void. Now on to 5 reasons why it really matters to build this body of knowledge.

1. So You Don’t Reinvent the Wheel

For example, most companies document processes around how they bid for work. Then add all the related project information. This creates a library that they can refer to the next time they are quoting a similar job. They know exactly how they got the job. As well as how their pricing strategy worked out for them. So they don’t have to reinvent the wheel next time they bid for a similar job.

2. So You Can Improve Speed, Productivity, and Efficiency

Imagine if you did try to invent new processes every time you did anything in your business? It would take a lot longer to get any task done. The results would be unpredictable and would often need some revision later on. Having clear, defined, tried, and true ways to do things makes it faster and easier to get everything done.

Often, when you start a new project, the hardest part is to figure out how to start. Institutional memory can shorten or even cut that part of the process, so you can get to work faster.

Having clear, defined, tried, and true ways to do things makes it faster and easier to get everything done.

3. So You Have a Baseline

Processes and procedures never stay the same – and they shouldn’t. Everything should change and evolve over time. It’s very hard to review and revise your processes and procedures if you aren’t sure what you have done in the past!

A body of institutional memory/knowledge lets you go back and review not only how you have done things in the past. But also how you have changed your approach over time. So you don’t try things that didn’t work in the past (again)!

We usually have a very good handle on things we do every day, simply because they are repetitive tasks. But institutional memory lets you go back and review things that you don’t do as often, whenever you need to.

Doing the same things, expecting a different result?

4. So You Can Transfer Knowledge

Every company loses people and hires new people all the time. Sometimes, those people are in key positions, and replacing them can be very difficult. When you have a body of institutional knowledge to fall back on. You can always refer to what has been done in the past, and how it was achieved. It helps to fill gaps for new hires because let’s face it, the standard two-week handover will never be long enough!

Staff changes are a fact of business life. Having key knowledge already “downloaded” and ready to pass on will make everything a lot easier.

5. If You Ever Want to Sell Your Business

Some people stay in business for life and leave their business to their heirs when they die. Most, however, do not.

At some point, there’s a good chance you might want to sell your business. And when you do, the buyer will want to know how you do what you do. A well-organised, documented institutional memory bank, is one of the most valuable assets you have. Even if it’s not as tangible as your property and equipment.

A well-organised, documented institutional memory bank, is one of the most valuable assets you have.

It’s Never Too Early to Start

Realising the value of having a documented and formalized institutional memory bank. And wondering how to get started? The good news is that it’s never too early to start.

Make a point of recording and documenting everything you do. This could mean developing written processes and procedures. It could mean keeping careful records of every project you do.

Take a long, hard look at your business. Consider where the impacts may be if you and your key employees weren’t there tomorrow. What would you not know how to do? What would you struggle with? Start by formalizing that knowledge and work your way out from there.

Need help?

To learn more about building good processes through the implementation of capabilities for your business, go to www.agilemanagementoffice.com or reach out to me personally at www.fatimahabbouchi.com