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The CEO saw a problem and clearly communicated it -- you've gotten results but cannot explain how or why, and that isn't good enough going forward

That is clearly the CEO's point of view in this case, but it's a view I find rather perplexing. It leaves no room for intuition and good judgement. Potentially, it can force people to try and write down explanations of stuff they are not actually confident about, which just end up confusing whoever comes next.

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Once you grow past Dunbar's number you can no longer rely on individual intuition and good judgement alone, you need higher level communication and alignment around strategy because there is simply not enough interpersonal bandwidth to communicate otherwise. Of course you want everyone to continue using judgement, but the leadership needs to go the extra mile to project a vision and strategy across the org.

You can argue over whether the CEO was right or wrong in this case, but at the end of the day it's the CEO's job to make these calls.

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