Institutional knowledge is even actively destroyed. There is only so much you can maintain with written procedure; rather, for all of human history, institutions have mainly relied on the people and culture that make them up. But the "modern wisdom" is that you avoid such reliance on people--the employees, the rank-and-file--at all costs. Executives must maintain absolute leverage against workers, so institutional knowledge has to be ignored as a factor. Every employee must be maximally expendable and easily replaced. You know that one senior team who knows how to reliably carry out some important function? Too bad, we're firing them (or denying them raises, or replacing their manager with a toxic sycophant, same diff) and then we'll just have to manage.

Even non-commercial organizations where a healthy culture might still form are affected due to carry-over from the much larger corporate sector. I mean, nobody working anywhere can expect to stay with the same firm until retirement; that's just not the done thing anymore.

So the decay has spread everywhere.