In all cities we can see "dead" organizations. Many of these
companies that are actually "dead" seem to have life in them
because they continue to move, but in many instances the motion is
only due to the momentum of a push that was given years ago.
A "dead" organization may show signs of life in its gradual growth
in size, but its real character is to be seen in the extent to
which it is departing from specialization or by the continued use
of antiquated methods and buildings.
The departure from specialization is generally due to either lack
of courage to discard obsolete designs or to an inclination to
consider the business from the selling end only.
It takes courage to discard an old model and it also takes courage
to refuse to build some new invention.
The indifferent management carries the old and takes on the new.
This policy covering many years creates a condition that is far
removed from the specialization plan.
The management that views everything from the selling side of the
business is also inclined to go on indefinitely increasing the
line of goods manufactured.
The drift away from specialization may not be disasters today or
tomorrow, especially, if there are no competitors who are
specialists, but the inevitable result will be the burial of the
"dead" organization when a real competitor comes into the field.
The calamity of the existence of "dead" industrial organizations
is something more than the ultimate loss to the stockholders, it
is the deplorable stagnation in which the workers find themselves
with their progress blocked by lifeless management.