Say you want to start a lending library, you hire one person and stock 25 books. The stock is small and one person can easily remember all of them so the employee just piles them up in a corner. If a customer wants fiction or literature or whatever, the employee could easily look up the pile and pull it out.
Over time the books grows from 25 to 50, the stocks still small and there's just one employee so they are all just added to the pile.
50 grows to 150, you hire one more. The old guy feels that since there are two of them one can lookup the first 75 while the other can search the next 75 and organizing would a waste of time and space.
When you hit 500 books the debt starts to kick in but again you try to solve it by hiring more people. Some of the new hires want to categorize the books into proper racks but that would mean shutting shop for few days and not adding any new books. This is unacceptable to a non technical manager so things continue to be the old way.
By the time you hit 1000 books some of the employees are fed up with the time consuming work and quit, the replacements have no clue what is where. Most of the customers were served purely based on the muscle memory of the old employees and now that they have gone the business starts to crumble.