Information loss is an inherent property of large organizations.
That's such an interesting axiom, I'm curious if you would want to say more about it? It feels right intuitively - complexity doesn't travel easily across contexts and reaching a common understanding is harder the more people you're talking to.
I imagine this gets amplified in a large org. The docs are lacking, people might not read them anyway, and you get an explosion of people who don't understand very much but still have a job to do.
The underlying purpose of the rules and agency to apply the spirt rather than the letter gets lost early in the chain and trying to unwind it can be tedious.