One of the forces that operates against increase in the number of industrial establishments is the fact that we do not realize the need of human progress in our plants. Men should progress from job to job until they reach their best achievement. Some gain their greatest success in some manual work in which they acquire great skill and others go on to executive positions and even graduate to join other organizations or to start new industries. We fail to see this fundamental law regarding the growth of the manufacturing organization, and seldom realize the prime necessity of the fundamental law relating to specialization. We overlook the fact that stagnation in place of progress of the men in the plant is deadly to the organization, and feel that if we get an extra-efficient man in a certain position that he must be kept there regardless of his own opportunity for advancement. We fail to realize that progress all the way through the organization, should be encouraged--that while man is distinctly a creature of habit, his mind as well as his body must be considered, and that only by changes of a progressive nature does he develop most favorably. Too often a manufacturer is opposed to the creation of other organizations by men from his own organization, when, as a matter of fact, it would be a great deal better for his own institution if he would encourage the growth of other plants that can be created by his own men. HABIT ACTION, BASIS OF SKILL AND PROFICIENCY. We have many text books on the subject of industrial finance, of engineering, of invention, of industrial management, and all these books are written on the assumption that the human being knows his own kind. A study of our failures seems to reveal, however, that we have misunderstood the human being. For instance, while we know that skill and experience is invaluable, we make our mistake by underrating its value, or too often we limit its application to the hand worker. We say that skill of the pianist, the surgeon, the workman must be acquired by practice. We know that in many trades a workman must spend three, four or more years as an apprentice, and at least the same number of years is necessary of actual specialized practice in almost any department of work, but we overlook the fact that that special skill or that special ability on which modern success is based must be acquired under certain conditions. The oriole builds a nest unlike the robin's nest. Each is qualified in its own work. We know that these birds would be sorely handicapped, and would probably be downright failures in providing nests in season for eggs, if each were required to work to plans and specifications of the other bird's nest.