Institutional Amnesia and the Economy

Institutional memory is critical to the survival of businesses and organizations.?

Policies and procedures are passed along from generation to generation not just through formal transmission practices such as manuals, memos, and handbooks but also through informal?practices such as mentoring and on the job training.

Institutional amnesia is the phenomenon whereby some information is not passed?from generation to generation and consequently causes a void in an organization's?ability to deal with many circumstances.

My experience has taught me that this is extremely common with installed audio visual equipment. I am not exactly what they call in the business an integrator but?I have had some experience with installs and site surveys for installs.

Often when I go to a location that has requested a site survey for an install, I find a complete audio visual system in place. Sometimes the equipment is obviously outdated and needs to be replaced but often the case is that the people who work there just don't know how to use it. Institutional amnesia caused by turnover has?removed all individuals that had worked for the organization that may have had any idea?how to use the equipment.

I recently did a site survey for a facility that wanted a projector and a sound system installed.Upon my arrival I realized that there was evidence of a working sound system.?Upon further investigation I found all of the equipment to make a complete sound system and?with a little additional effort, I actually got it up and working. Because of Institutional Amnesia,the woman that I was meeting had no idea that they had a working sound system. Institutional Amnesia can happen quickly in one generation. After completing the above mentioned installation, I?was asked to consult with them to do a webcast. I told them that they could use the camera/microphone system that we sold them and they were befuddled. They didn't even know they owned one.?The woman that I had met about the install no longer worked there. I actually went to their facility and helped them search for it but to no avail.

Based on my limited experience, I have to assume that Institutional Amnesia?has to be costing American companies and organizations billions of dollars a year. The callous trend of marginalizing the contribution of individuals and?ignoring the hidden costs of turnover are more destructive than certain policy creators would have you believe. While there is some validity to the concept that no one is indispensable inasmuch as organizations will survive even if a valued employee dies or retires,?the value of the individual is underestimated and the expense?of Institutional Amnesia is not accurately determined. Individuals and groups of individuals are the keepers of the?Institutional Memory and should be respected for their contributions.