All you have to do to run out of personnel, finance and get no production is to duplicate the same functions that give the same product in an org.

Take three orgs side by side under the same management. Only if each division of each org had entirely different products would this be possible.

Now let’s do it wrong. Each of these 3 orgs has an HCO and full personnel duties. Each separately promotes. Each has its own finance office, each has its production div producing the same products. Each has its own correction div — the place in general would be very overmanned, yet each div would be undermanned for its full functions. The product would be terrible if it existed at all. Morale would be ghastly, inter-org collisions continual.

The right way would be to work out the different products and then assign them to one or another of these orgs. One org would have to be the source org that produced the other two. One org would have all the finance with liaison only in the other two orgs. One org would have to hire, hat and train with only liaison in the other two. The orgs would have org bds which had the function but under it would be the note “Liaison with __________”, source org.

In the impatience and emotion of organizing one org tends to individuate and establish a duplicate function because “it can’t get service.” This begins the catastrophe. Now they’ll all begin to go broke while having men bulging out of the windows.

In looking over potential insolvency, look over duplicate functions.