Our fundamental error in understanding our own kind seems to lie in the fact that we fail to recognize that man is a creature of habit to an extent not quite equal to that of the lower animals, but nevertheless to a degree that positively stands in the way of any man who tries to create or manage an industry without giving due value to this one element. Another way to say all this is that we must recognize experience is necessary--experience not only for the worker but for each one in the organization. The effect of this characteristic of habit action is so profound that any disturbance in a plant due to changing the position of benches or machinery or changing the character of the work sorely interferes with man's efficiency. On account of this characteristic the degree to which man's energies are most effectively employed goes in direct proportion to the degree in which there is a minimum of changes in the character of the work. The importance of this will be realized when we consider the question of competition, for that, in the last analysis, constitutes the measure of success. Now, if we extend the plan of acquisition of special ability to embrace men in office as well as in the workshop we have covered the whole subject and have said nothing more than that it is necessary for all men in the office as well as in the workshop to have a special ability that has been acquired by experience. If it is as simple as this, why the need of saying it? The need is brought about by the painful fact that one of the characteristics of habit action is to continue on without change even after the mind has apparently recognized that a change should be made. Success comes not from the mere _word_ knowledge of these things, but through action. SPECIALIZATION. Of the many elements on which industrial development depends, the question of specialization looms large. Under the general term "specialization" we include all plans and methods of work by which the scope of activity of man is concentrated. The highest degree of skill of artist or worker is attained by concentration of energies to a restricted range of work. It is through practice that the skill is acquired. The highest skill and highest ability is attained by the degree of interested attention and number of repetitions of a given kind of work. Other things being equal, the practice, combined with keenness of interest, makes the most successful man in a given profession or work. Repetition of operation becomes an automatic (habit) action in which man accomplishes the most work for a given expenditure of energy.