I'm not sure about the "successful companies institutionalize the knowledge of their employees" part. In such context a process becomes a (written) 'procedure/

I'm not sure about the "successful companies institutionalize the knowledge of their employees" part. In such context a process becomes a (written) 'procedure/specification', and some folks stop innovating, they just do it "by the book". HR quickly grasps this and hires people with less and less skill, cheap personnel 'just able to apply to procedures'. Other ones feel like cogs in the machine (especially the best ones, hunted by competitors) and quit. Someone departing with the 'procedures' may let a competitor obtain a rather complete grasp of it and adopt the best bits. Letting each team decide about this and establish cross training seems preferable to me, and has many other benefits.