A leader's intelligence must have simplicity and clarity; action is difficult when the mind is full of complex theories and schemes. An over-organized industry wastes just as much money as one without organization - the transmission uses up all the motor's power. (For this reason small enterprises directed by one man have the better of larger trusts because their costs are less and the quality of their product higher.) A leader must have a few very simple ideas, acquired from experience and confirmed by putting them into practice. This structure created by experience will contain much exact knowledge for use in connection with a given action.