Good evening. (Good evening.) This is third of February 1971, AD21. This briefing is convened here tonight, and is arranged because this is the set of directions which will be given to, and is being given to the departing product officers, org officers, FEBC graduates, to take back to their orgs. And consists in essence of their, of the mission orders of the executive director, product officer, org officer set up.

Now the Flag bureau has been working very hard, and very long and hard indeed, to get together the basic projects necessary to make an org roll on up the line, and to make it a great success. Now you must realize that if you were returned to an org, and while you've been gone of course why must of the staff have blown, and so on. And you've got these one and a half staff members that were hired yesterday, see? And that's all you have left. And you open up this suitcase and you have about twenty-seven, twenty-eight projects, or something like this, there is some large number of things. And you'll run out of people very rapidly to hand these people out to. Now I don't say that they all blew during your absence, I hope they didn't. We won't make that postulate. But quite the contrary has been going on during your absence from the org. A lot of good people who have been working very hard to keep the show on the road, while you sailed around southern seas and admired the palm trees. Listened to the native girls dancing, and learning to beat drums, and so on. And they've been working hard, while that is. And so you come in, and you're going to change everything they've been doing, and you're going to change any line they have accidentally gotten together that runs right. And I will sit here, and I will look at a stat for your org that will be going at a reasonable, bare survival level, or better. And it will of course go down.

Now there's been an org there for a very long time, in most cases. And it has had its ups and it's had its downs, and it's had its attentions, which it sometimes regretted, and its neglects that it sometimes approved of. And it has not been nothing, nor are the staff members which you left behind totally occluded on everything that is going along, because you will find that some of these policy letters and so on have already been received. They have been put to some slight degree into action. You will find that there is a certain clientele involved, there is a certain backlog to be taken care of, and they have managed to work out that if you stand down at the corner of Wupf and Yak Street, and every few minutes somebody will come by, and they hand them something and some of these people show up, and they will be able to get somebody to come into the org every now and then. And they have a certain route, and there are a certain number of people who have promised to come in, and there are a certain number of services, and there are a certain number of people on the course, and a certain number of blown people that they're trying to get back. And somebody's got an ARC break program of some kind or another, and so on. In other words, it isn't all bad, by a long way.

Now, what if we just walked in and changed everything? Now yes, we say this org which should be making twenty-five thousand dollars a week; and that is true of any org you are going back to. I would be ashamed to run an org at a lower level than that now; is only making fifteen hundred a week, and thinking it is doing well. People are getting born and going aberrated faster than they're being processed right now. You've got a situation there where some people are at very hard work, have been able to keep a very low level of survival going, and it is up to you to take advantage of that situation, and push that income up. And that would be your first order of business.

Your first order of business is to find out what is going on, and get it paid for and delivered. And that would be the first order of business of a product officer. And the next order of business of a product officer would be to look around and see how he can increase consumption. Now the poor PES who has suddenly been relegated to secretarial level, or something like that, is in actual fact your PR. And you could do far worse than to just put him on as a PR type of action in addition to his other actions in the public divisions, to figure out how consumption can be built up. And turn over your distribution division to somebody who is competent to take it over, and keep going the actions which they already have going there. Do you follow?

Now I wouldn't even recommend that or insist on it, but because your personnel varies. But you will sooner or later need somebody who exclusively sits around as a product officer, and figures out exactly how you're going to increase consumption by the uses of the new technology of PR. And you will find out that that is a staff job, that is not a divisional job. And then you as product officer are going to go caroming around through the org and banging off staff members as you turn the corners rapidly, and you will have a certain amount of human reaction to handle. And that is a staff job.

So, your PES can continue to do his public divisional work, which must go on, or I assure you, C/S 6 will become very upset. And you can find somebody and groove them in as a PR. But in any event, that is going to be a point which has to be watched, because the increase of consumption is a necessary adjunct, if you're going to increase the income and delivery of an org. There is nothing sillier than a canning factory which keeps throwing the cans out the back door, and they don't get used. And eventually they don't can anything anymore. Well the breakdown of that particular point is consumption was not built up. So you're going to have to take care of that.

Now what you are up against is the fact that you're going in to an area, which is to some degree running, and it has its own tradition of how it makes things run better, and the product officer has to take what's lying around and start making it into products. And that's for sure. So his first order of business of course is to go in and say, "Hi." And, "We got great plans, and everything is fine, and everything is doing that you've been doing around here is fine. And we're just going to do more of it." And the staff at that moment is going to groan, and they're going to say, "Well we can't do anymore than we're doing, because we're totally overloaded now." And at that moment you say, "Well, we will have an org officer to take care of that point, so that your overload doesn't particularly worry you." And then you go ahead and do two things. You've got to get the income up, and you've got to get delivery going. And if you search around you will find all sorts of half finished thingamajugs to push out, and you will find all sorts of things you can sell, and so on.

In other words, it is a going concern. So your first action is a survey on your return, in your new found knowledge, a survey of what they've got right there that can be delivered now. If I walked into an org at any given instant, I would look the place over, I would probably move all the executives out of the service space. And that's usually my first action in an org. I'm not kidding you. I move all the executives out of the service space, and that's my first day. And work with their creditor set up so that there won't be foreclosed on the second day. And by that time I have looked over enough of the situation, and I get a big idea as to what we can offer right now, and we offer it very promptly on any open communication line that is. And you have a special project number one, which you will be given, which is a; that's a special project. That doesn't include with the FEBC pack; it's with your pack, but it's the big idea that you can do right now. And it's already under a bit of flight, this particular one, and we haven't got the full results on this yet. But apparently it's producing people, and they walk in and they actually do start moving through the org lines. So you've got a special dissem project number one, which is a good idea.

Now maybe that isn't all the good idea that you will need. And maybe you have to get a local good idea. But don't get an idea that on Monday, and then not executed on Tuesday, the usual fate of good ideas; the staff is already overloaded so if somebody comes in with a good idea, and that's just what they don't need. What they need is execution. They have had several good ideas during the last year, and none of them got executed. And so that you will probably find that you have in addition to getting your special project number one underway, which is a sort of an all hands evolution and will get things going, you will undoubtedly find that there are some other ideas in progress which you can push.

So your first action is actually to look the thing over, adjust it up a bit for production without disturbing anybody particularly, and then get some promotion out, get some delivery being done, look around the academy or the school or something like this, and, "How many of you cats can graduate today? We're not speeding you up, you know, and so forth. How long you been here?" "Two years." "Well that's..." And go into the crowded waiting room, and where the preclears wait for their sessions, and go and see somebody and ask them when they are going to hire an auditor or something. And about that time, why you will be aweigh. In other words you start to get delivery, you get promotion, you get delivery, you get income, and you get the show running, because remember you are trying to get final valuable products, namely money, student completions, and pc completions. And your area has probably got tons of pcs that could just be completed, but that won't necessarily bring you in a great deal of money.

So anyway, you will see what you will see, and it is necessary to understand completely, utterly, and totally that a production officer is there to get the final valuable products. And getting those final valuable products is quite a trick. And now you're being asked to get these final valuable products without building for the next two years at vast cost a large establishment at all. You're not thinking in terms of that at all. You're not thinking in terms of any of this, except how are we going to get these things going.

Now once you start this I can assure you that your first few days will be very difficult, because after you've talked to the staff, and told them what it's all about, and tried to get the show on the road, and played them some tapes concerning this, which you will have, and what you are trying to do, the machine will start running. Even though it's a little machine, it will start running. And you have already started, if you know your business at all, if we've taught you your business vaguely, the salt mill will start running. And you know the story of the salt mill. I have already told it to you. It was in Holland that this horrible thing appeared, and it started turning out salt. And they put it under mattresses, and they put it in the attic, and they hit it with hammers, and it just kept on turning out salt. And it turned out more and more salt, and there were tremendous piles of salt all over the place, there was no PR came with it to get consumption, you see? And they finally in disgust and horror, threw this thing into the sea, and of course that is why the sea is salty, and why we have to buy water at such vast expense in these ports. So, you have started something going. And I can assure you that at that point you will feel yourself very over strained, very tired, and very knocked about.

Now the test is to live through that period, and to keep running ahead of the storm from there on out. Because at first, guilelessly, you will sink back into it. You start the thing running, and then you say, "Well, we've got that." And now you have started something going. So now you're going to have to back that up, and the longer you are there without your org officer five feet ahead of you, trying to get products out, why the more difficult you will find it. So that the natural solution to this is, the first product of the product officer is an org officer.

And the org officer will hastily start throwing some lines together and so forth, and getting some old scratch paper and so on, 'cause they hadn't had any invoices in this org for two years. And your product officer will keep insisting on some delivery, but there is no place for anybody to lay any money down. And the org officer has to fix a place for the money to be paid down, and then there's this matter of paper, and how do you get the promotion because the printer, you see he hasn't been paid for a long time, so you have to find another printer in order to get; that's the org officer. And then the auditors, they haven't got any place to audit now, because the executive offices have been, are all using up all the auditing space. And the org officer'll have to move all those out, and so on. And here you go, and the org officer now; your tongue is already hanging out, see? Get the products, your tongue is already hanging out. The org officer came on bright, fresh, able to confront the world and so forth, three days later, why his tongue will be hitting the floor and he'll be tripping over that. So now you have to remind, now you have to remind an org officer at this point that the first product of an org officer is an HAS.

And the HAS will come on, "Oh that's easy. That HCO? Well we've got an HCO. We have some comm baskets out there in the hall, we've got an HCO." And about this time, why the HAS will be discovered to be not quite sure what this thing called an establishment is. And is liable to give you a definition of an establishment something on this order. He's liable to give the org officer a definition of an establishment as somebody with a hat. And will have to be reminded that establishments contain typewriters, carbon paper, ball point pens, comm baskets, floors, ceilings, and numerous other machines, appurtenances and whirly gigs and typewriters, and front doors and door locks, that actually lock, and safes that you keep money in, and invoice machines, and other odds and ends. And he says, "But that isn't the province of HCO." You say, "Listen to the three hours of tape again on the HAS."

Each time he comes back, your safest thing is to just tell him to listen to the three hours of tape, and so on, and to check out on his basic staff hat. And to get his HCO checked out on a basic staff hat, and to hire an HCO and to put an HCO there. And what do you know? He's got projects to put an HCO there.

So where does your FEBC pack come in? Now you've got your mission orders. There are, for the product officer, there are actually mission orders for the org officer, and there are orders for the HAS. And these are part of your pack. You have two projects. One of them, special project one, which is dissem, and special project two, which is tech. And that's how you deliver the business which you attract, with the first one. Alright. You've also got the business the org is already doing, which you mustn't neglect.

Now, with the product officer's first action, he will find, just to give you a slight review, he will find that it is vital that he have an org officer, and that is in the natural course of events.

He can't live without an org officer, and people are going to tell you that the org officer's actually the HCOES, and she sits back with the same duties and the same job and same hat as the HCOES. And you say, "No. Listen to the ten hours of tape which we brought back, and omit to listen to tape one, which is PR, because we want production."

Now, at that point, at that point it could be expected that you have enough income, that you are going forward sufficiently, that the HAS can now actually put an establishment there. And he would continue to do so, almost totally independent of the product and org officers of the org.

Now the way he puts together the FEBC pack is he takes existing staff, which is already in that division, or is supernumerary someplace else, but not using the area that you're using for delivery at that particular point. You want to cure him of that fast. You carry a ruler around to slap people's fingers when they reach for personnel in a working installation. And one of the org officers brightest tricks has probably never been mentioned, is if he notices a displacement of line, and that sly reach from the personnel which he has desperately gotten into the line up, producing, is to slap somebody's knuckles quick. Do you follow? Otherwise your working installations will be dismantled faster than they can be put back together again. So the rule of thumb along all these line is the org, and the org is a personnel pool to the degree that it is not engaged in direct production, and one never dismantles a working installation. That is something you have to teach people when they're engaged in putting ships together. Do not dismantle a working installation. "Well yes I know, but we're never really going to use this hoist here, and wouldn't it be nice if..." "Ah ah ah ah! Is it a working installation?" "Yes, but it isn't used for anything just now." "Well yes, that's fine. Leave it alone."

But let us define a working installation now, in terms of an org. And it will make more sense to you. A working installation is any group which is delivering the adequate and adequate production of that product which they're supposed to deliver. And you leave those alone. And you don't, you don't monkey with them. And as soon as you see a working installation under those definitions being knocked down, you're going to find that you are making three steps forward, and unlike the communists who only go two steps backwards, you will be going four steps backward.

Did you know, by the way, that the communists these days exercise all the children in school to go three steps forward and two steps backward? And they go around marching this, to teach them that that is how communism is going to win, you see? And they have them walk three steps forward and two steps backwards, and three steps forward and two steps backwards, and three steps forward, and demonstrate to them. And do you know, they don't even have a certificate to run SCS? It's no wonder they're squirreled up. Anyway, I can imagine the guys doing this, busting the auditor's code all over the place.

So the upshot of it is, the upshot of it is that you can actually go three steps forward and four steps backwards. The production officer's getting his production, and the next day the production isn't there. What happened? So the org officer looks it over, and then they look over and they see that the HAS has just got through transferring Mary Lou. Well lightening should strike twice, if it happens twice. So, what you have to have there as a production officer, and what is being put there as an org officer is being done independently of the HAS building an establishment. You say, "But gee, that's impossible. I mean, you've got this thing coming in from one side, and then he would need the personnel which you're working with." No, that's just the whole point. And that's why you have to have income.

He gets these personnel. Now there's only one or two areas that I know of off hand who have a such a superfluity of personnel, with such a missingness of production, as to make the whole org fair game. There the product officer's job would just be simply to walk in and tell who was ever supposed to be doing something, to do it. You know, an auditor, they've got twelve auditors or something like this, or four auditors and so forth, and their well done auditing hours for the week are six and a half. And they actually will graph it as six and a half, just as though this amounts to something, you see? I mean, it's marvelous. You will find all kinds of odd ball situations with regard to this. And they will tell you why you can't get production. But that would be in only about three orgs that I know of. The rest of them don't get production mostly because they haven't got any people to produce.

So, as you get production going as a production officer, and as this is being backed up, well what do you do with these FEBCs? Well you certainly; with these FEBC projects? Well you certainly put them into the hands of people who are not at that explicit instant engaged in desperate production on something else. Do you follow?

So your HAS is mainly involved in either appointing, acquiring, hiring, kidnapping, shanghaiing teams. And every one of these projects will undoubtedly have to have a total team acquired for it. Trained in it, hatted to do it. And he just keeps moving in the departments, as trained teams. So he practically has nothing to do with you at all. He practically has nothing to do with an org officer.

Now the sequence in which he moves those teams in is very interesting. And you will find out that this is the sequence that you had better move these projects in. And these projects are moved in in this sequence. Number one is HCO, number two is tech, number three is dissem, number four is treasury, number five distribution, number six qual, and number seven executive division.

And you're going to have a picnic. You're going to have a picnic, because your org's going out of phase. But that is about the only way you can do it. There'll be some cats producing before some other cats are producing, so the sub-products to the final valuable products will start stacking up, and now you will move into another phase somewhere along there where the production officer is trying to coordinate between what he's got going and what is going on. And you'll find out that they will phase in very nicely, and you will just get more and more of it, and you will get more and more production.

Now I will go over the exact sequence of events that will appear on the mission orders of a production officer. And the first one is, get fully briefed on Flag as to what exactly you will be doing when returning to your org. I'm doing some of that job of briefing right this moment. Now you bring with you to your org the Flag FEBC project package, and a copy of the org board you will using, and adequate copies of LRH EDs and programs as per the projects. You will have with you your FEBC tapes, you'll return to your org and you will assume the post of executive director/product officer.

Now, you will immediately choose and appoint somebody as your org officer. The first product of a product officer is an org officer. He has another set of orders. Now your next action would be to quickly hat him, using the FEBC tapes, which you will have. Now you cope like mad, together with the org officer, to build the income and delivery up. And to do that you have these two special projects, special project one, dissem, special project two, tech. You can use and get these in on a sort of an all hands evolution. That's just to stimulate some business, but that doesn't mean to knock out everything that's going on in your org.

Now your object in building up the income with anything you can find lying around, old belts and so forth that you can feed into the machine somehow or another, that will wind up at the other end of the line as a delivered product, and will produce an income for the org, by having built this up between yourself and the org officer, you can appoint an HAS. As soon as you've got it going, not necessarily when you have built it up to hundreds of thousands, because you won't, you, as soon as you've got things going and so on, why you appoint an HAS. And then, to this point nothing's been done with the FEBC package, except special project one and two. That's the only thing you've used of the package.

Now, this HAS will have to have his hat put on pretty heavily by the org officer, won't he? And he will have to get some kind of an idea of how to check people out on things and so forth, won't he? Because he now gets presented with the entire FEBC package. And in the sequence of department by department, he gets ahold of teams, trains them in, and gets them producing what they're supposed to be producing, according to the package. And you'll find out that that will coordinate with your org board.

Now you realize that you cannot hire people and keep people on, or anything else, if you haven't got some money. So that is why you must run like mad when you first get back to make sure that your org income goes up very nicely. You can try to get your GDSs up very nicely. You can do anything you want to do very nicely, as

long as you get delivery and income. And if you've got delivery and you've got income, your org income will rise. And there will be enough money there for the HAS to hire and afford the luxury of being able to actually groove somebody in on the project, not whiff it across, underneath their nose, get a small boy who can't read, and say, "That is your project." So you would building a solid org. 'Cause these project will build a solid department.

So, as soon as he's made some progress on these project, you will start issuing the rest of the projects as I have discussed. And as I've told you before, your sequence and so on will be noted down as to what projects or teams he's busy grooving in and training up. You understand? He'll probably still have some people there. But if you are very, very clever you won't take any of the existing org except just these two or three orgs that are very supernumerary. You won't take anybody that you're using on your product lines at all. You won't disturb the org that is sitting there, and that you've gotten into action. All of these people on projects and in departments will be all brand new, won't they? And wouldn't you be clever, wouldn't you be clever?

"I wish you guys would catch up, we got the GI up to twenty-one thousand now and you haven't got any of those projects working, and so forth." If you could build a situation like that, why you would be doing great. Once more, why it's, the sequence is HCO, tech, dissem, treasury, distribution, qual and executive division.

Alright. Now the HAS can get this done by hiring and appointing and hatting them, and so the HAS is busy building the establishment while the product and org officer continue to get the income up, any way they can. Income and delivery. You've got to achieve the products of students, pcs, and the valuable final product of money, whether you have those projects in or not. And you'll find those projects will just move right in, and start doing the same thing, so it's actually a reinforced action. So until all of the products, projects are in in the org, you are in a state of cope. And both the product officer and org officer is in a state of cope.

Now if you see this, due to habit pattern and so forth, that the org officer is the HES, who occupies the HES's desk, and handles the traffic of the HCS, and passes dispatches over to the OES, who sits at his desk and then handles that, and if those posts you feel have to be covered, and it's absolutely vital during your cope period that they be covered because people keep coming in and saying, "Where's the HES," 'cause it's an old line or something, well put somebody there. Just put somebody there. You know, say, "Well your desk, there we are." And so on, he's got a desk. "Handle the dispatches. And keep a list of who's writing them all." But don't you get sucked into that line. No sir.

An org officer should actually carry a pedometer. Now a pedometer is an instrument which is hung on a belt, and it is used to people in the field of engineering, walking, hiking and the army, to find out how far one has walked. And it has a little weight in it, and every time that you make a step, why this little thing goes click, see. So it measures the steps. Actually, to perfectly adjust a pedometer, you have to go out and measure off a hundred feet, and then find out how many paces you have in that hundred feet, and it has a little dial in the back of it, and it is set that many inches. And you set, your pace then is let us say twenty-seven inches, or the old Roman pace of thirty inches, or if you're out of that habit maybe even thirty-two inches. And the truth of the matter is, that both the OES, product officer, and HCOES, org officer, should have a stat based exactly on that pedometer. All joking aside, the job is done with mileage. The job is done with mileage.

Now I am in a somewhat favored position. I have actually four splendidly trained and very accurate messengers. And I should hang pedometers on those, and I would probably get a part of my mileage stat. But they, they really, they really run up the mileage, they really run up the mileage.

Now what are they doing? They're looking into a situation, getting questions answered, trying to find the bug in the situation, giving me the answers to the situation, and we eventually will evolve this thing and get the thing straightened out one way or the other. Now that is a substitute for the same thing. But there is no real substitute for it, and if you were running it hard as a product officer; you see I've already done some time here as a product officer. Otherwise I, and I've done a tremendous amount of time as an org officer. And my org mileage as an org officer is very, very high, because one of the duties of the org officer is, for instance, this is just an incidental duty, one that you sandwich in between every other duty, is to see every person in the org every day, from two points of view. Is he busy in wearing his hat? And on a personal point of view, is he doing alright? Because you get an org running like this, I shudder at what might be going on in one of our orgs right now, because it is on an escalating affluence trend, and I know those poor kids have got their tongues hanging out. They must be just running like salt mills themselves. And if somebody isn't taking care of them, and somebody isn't paying attention to what their life is like, why the next thing you know, you'll break them down on such a system as this. And that is the only real liability of a system.

The fact of the case is, a person moves up in terms of velocity. And they might not move their personal life up in terms of velocity, and they certainly don't move up their care in terms of velocity. And so it tends to drop out of phase a little bit. And there in the first few days or weeks of something like this, why you can expect one or two or three guys to drop out of the line up with epezudicks or something of the sort. And you wonder what's wrong, well don't be too mystified. It is simply that they are not getting the adequate personal care that they should get in proportion to the amount of attention which they are exerting. So this is an important point.

Auditors are peculiarly like this. Auditors are like race horses. They actually, there's hardly anybody ever stands around and rubs down an auditor, but they ought to. They ought to. They ought to stand around and rub them down, and pat them on the shoulder, and feed 'em oats, because the truth of the matter is, the truth of the matter is, they only really fade out of your line up because they have not been given themselves adequate care and attention from an organization point of view. And I remember the old London org, a phrase was given to me one time by the HCO sec London, and I said, I came back, I was gone for a while. And I came back to the org and I said, "And how are the auditors getting along? And have they gotten the consultation rooms which were ordered?" And so on. And says, "No." And I said, "Well what, what kind of shape are they in? What kind of treatment do they get around here?" if I remember the conversation rightly. He says, "Treatment? They're treated like chaff!" I noticed they didn't have many auditors on staff either.

Actually there was a period there when we very, very fancily fixed up a whole bunch of consultation rooms for auditors, and they each one had his own private consultation room. And actually there was probably two sides to the desk, or something of that sort. They were their auditing rooms. And I think that we doubled those auditing rooms, so that there was two auditors to an auditing room. But they had their certificates on the wall, and a nice, soft carpet, and a good looking desk, and they had their own personal effects around, and so forth. And things went very well. But this is just personal care.

So that you've got, your basic actions here as a product officer is, you shouldn't have to think of this. There's a reverse for you. Your org officer should be so good that the org officer takes care of all that. Now I can tell you an actual instance where a whole division was totally mystified as to why I was making a fuss, and why my messengers were in a blur, going back and forth and back and forth, and around and around and around. And why a PR was showing up. And it was a very interesting thing. The PR survey, which I had conducted in that particular area, was marvelous. There wasn't one single person in that immediate area who was aware of the fact that the key post of the area was empty that morning. No traffic could have flowed. So an action had to be taken, and it had to be taken now! Because that post was about to be empty.

I had received the information to this effect, and I had taken the actions necessary. And the actions had been looked upon as an arbitrary action. And the PR survey disclosed later that the misunderstood that lay all through the area is nobody spotted what the actual basic situation was. It was an actual human emotion situation, because people got very upset about this. They went through this, that the lines kept going, but nobody had noticed. Now a product officer should not have to think of that. This sort of thing should be taken care of.

Now a typical product officer action is, "You've just been told by the D of P that he can only have eight pcs a week. Oh, is that so? Well isn't that interesting. Immediately let's cut these lines up because I want you to get about twenty. Right away now, twenty, twenty, twenty. And hereinafter you must never take any orders of any kind whatsoever from tech as to the amount of traffic and volume that they can handle." It's in a policy, I think you've probably read it.

Do you know that an arrangement will normally occur between tech and the registrar? And do you know that a registrar at the drop of a hat will also start to schedule people for tech? Well, this is very wonderful when you look this over, because what you've got there is not a determined effort to reduce the production, but you've all of a sudden had an arbitrary ceiling put on the amount of income and the amount of delivery which you can do. Whereas the actual function which should be performed is, the D of P ought to be on that telephone, and that D of P ought to have an awful thick notebook of all the possible auditors within the three hundred mile range around there who can be called in, and brought in on the job. Part time, full time, any old time. That's a proper function of a D of P.

Now therefore, the product officer will be driving this thing on up. And one of the things which the org officer will have to do is to keep it cooled off. And that is one of the reasons why you will also have to have a PR sooner or later.

You can get into the most remarkable puzzles as to why this, that or the other thing won't function. And the basics of them are a lack of understanding of what the situation was, and the unworn hat. And if you take those two things as the two things which get in your road as a product officer, you've got it made. So therefore, you should tell the staff when you arrive back, what is going to happen. And you shouldn't leave them in any mystery concerning what is going to happen. They will agree with this, I am very, very sure, without any difficulty at all. But your final action on the thing is of course the production and the income. And if you can raise that income and you can get that delivery going, any old way that you possibly can manage it, if you can get that going, why then you will have enough wherewithal to build an establishment.

I want to point out to you that cobblers who become vast shoe companies started working on an old tire or a slab of leather, and thonged it in a couple of places, and they probably sat out in the open or in a shed in their back yard, and they didn't have any establishment. In this particular case, the egg always comes first. And you can eventually get yourself a chicken there, but it costs money in this case to put a chicken there. And you have to make the money to put the chicken there. Let me point that out to you. If you sit back and wait for this machine; now let's go at it the other end too. Let's just, you go home and organize everything. Along about six months from now you will start to see some production. The mean time you will be getting telexes Flag saying..., and you will be saying, "But I'm trying." And that's because you're trying to get the chicken before the egg.

We have now got two actual case histories of trying to get the chicken before the egg, and both of them are horrible flops. So we're not now talking out of no data. We already know that the mistake you can make is go back and organize everything. The right way to go back is say, "Get busy, we're going to deliver now. Now the show is going to go on the road, and so forth. And you guys have been doing great, and we're going to extend everything you've been doing and back you up, and you will find it'll all work out in the long run." Because that is the truth.

Alright, so much for the product officer. Now let's take up the org officer's actions here. And his mission orders consist of roughly the following. Listen to the FEBC tapes brought back by the executive director, then star rate on them with him. It's a very, very lucky executive director who has an FEBC org officer. Get yourself hatted as org officer immediately, cope like mad to get the organization needed by the executive director/product officer in getting the two special projects done, designed to drive in lots of business. Along with that will be preserve the organization and production which is already there. Together with the executive director/product officer, build the income and delivery of the org up. It doesn't say a blasted thing about building up the establishment. I don't care how you build up the establishment, I don't care what house of cards you've got. One card over here on the edge, and another one standing up cross wise to it, and so forth. And you say, "God, at any moment that's going to give way." Well, it hasn't yet. Be optimistic.

Now, you've got income coming up, and delivery occurring. And at that time, why an HAS is appointed, and you give him the HCO FEBC projects, the org officer does. And as soon as the HAS has made some progress on these, hand him the rest of the projects for the other divisions. And you give him the implementing sequence which I've already given you, and ensure the HAS builds up the establishment of the org by hiring appointed personnel, and hatting them, using the FEBC package. Continue to back up the executive director/product officer in any way you can to get the income up, while making sure the HAS is busy building the establishment. So actually there are some teams that can be driven with one hand, but the org officer is driving two teams. It's quite a stunt. And he can easily get these things crossed, where he just goes in, "Oh it would be so much easier if I didn't have to instant hat every time I walk in those two or three new auditors, to show them where to take their pcs. If we could just get HCO straightened out so it would take over that..." Wrong answer. The org officer goes right on instant hatting, and gets mini hatting when he can, and clears up the misunderstoods in passing. That's one separate action.

Now on the other hand, with his left hand he's got an HAS who today tried to transfer three auditors to become HCO members, 'cause they were experienced class VIIIs. And on the other hand, is not insisting on any security amongst people he is hiring, and you look up and find out that the hair, quantity of, which is moving into the area of HCO is obscuring the desks. And other things of this character. So it's not necessarily a smooth thing to try to run an HAS who has his own troubles. But nevertheless, that is what the org officer's doing. He's driving a mad elephant with his right hand, and a full twelve horse chariot team with his left.

And the above utilizes what you've got, and has an org officer, and puts you into a financial betterment which permits the organizational steps, and this way there will be no trouble at all in implementing these FEBC projects. And those are the org officer's orders.

Now the HAS will probably look at these, turn them over on the other side, look at them and read them on that side, and say, "Well well. These guys have got it pretty easy. They were all trained, at least one of them was. And what is this thing here that says major target?" Nevertheless, you've got to take it from there.

Now a wrong way to do this, a wrong way to do this would be to spend a year and a half training the HAS so that he could put an HAS there. And another wrong way to do it would be to expect that he instantaneously had a total grip on the basic staff hat, without ever having read it. Knows nothing about hatting people, knows nothing about target policies or anything else. So therefore there has to be a bit of a check sheet that this appointed HAS has to go through, in order to accomplish what he is supposed to be doing. And that would be of a vast assistance to him, one that would save you a great deal of time.

So your production and your org actions of course are instant and immediate. But you can afford a little bit of time, not very much, but you can afford a little bit of time to get your HAS hatted. And his orders are listen to the FEBC tapes on org/product officer system brought back from Flag by the executive director. Get star rated on them by the org officer. Fully accept the HCO/FEBC projects given to you by the org officer, start implementing these per department with teams. And he's going to say, "Where do I get these teams?" And the org officer says, "Now there is certainly some data here on recruiting and hiring personnel." And the next action here is get very busy hiring and appointing personnel, and hatting them to man up the establishment of the org, using the FEBC projects.

Now at the same time, if you count on HCO to perform the functions of HCO, while it is trying madly to get an HCO there that can perform the functions of HCO, you're asking the HAS to do the org officer's job. And we've now made that mistake two or three times, and we needn't keep making the mistake. There is nothing whatsoever wrong with the org officer calling Los Angeles and saying, "The crew of the Bolivar will report." Do you follow? I mean there's no place in these orders is the action of the org officer in getting some people to get the production out or anything else, or in getting them hatted. Nowhere does it say that these are done through HCO. They don't necessarily, an org officer doesn't have to go near HCO from one day's end to the next, except to get the HAS on the ball.

Now eventually it will start to work, but remember you haven't got a machine yet. There's no machine to run yet. So the org officer will have to do those actions necessary to put enough establishment there, only he's not building an establishment. He's building a Jerry rig house of cards. He's wise if he tries to build it on the org board pattern, and he's wise, he's very wise if he tries to get the lines in on policy, and he's very wise if he does this, that or the other thing with regard to the OEC and so forth, he's very wise, but he's not ordered to do so. He isn't. It is no part of his lines sitting comfortably at his desk, to pick up the intercom through the org and say, "Give me personnel." He would be all too often surprised to have no answer at the other end of the line. It would be up to him to eventually put a personnel there. But how would he do that? By putting an HAS there. Elementary.

So, the establishment will occur. But an establishment rises proportional to the wherewithal necessary to resolve the case. So nearly all org officers make the slight mistake of putting a dependency on HCO.

Now the mistake that can be made by the product officer is to not inform the org officer what he's up to. The product officer's got to keep a running action. And those, he doesn't even have to brief the org officer, if he just hands him the notebook every once in a while, that the notebook will communicate. But ordinarily, after he's gotten something straightened out, he writes up what he did, so there's some kind of a record of this thing, otherwise this gets very confusing.

So, it also works in the case of an org officer. An org officer who makes no record of anything he's doing, when it is totally in contradiction to what HCO is trying to do in the same sector, your going to get a very interesting ridge. But that ridge is broken down to the degree that the org officer merely keeps HCO informed as to what actions have been taken, which might possibly impinge upon HCOs basic establishment action.

And then the other mistake that can occur, is HAS gets confused and thinks the org officer is the HCOES, who is his senior, who really is the ethics officer of the org, or is part of, and so on. So you want to get that mighty clear, because an HAS who confuses what the org officer is, and thinks of the org officer as his senior on whom he depends utterly for his orders, no, no. No, the org officer isn't his senior, it's org officer is his nightmare. I mean...

There is seniority there, the org officer definitely is senior to the HAS, but is not in the relationship of senior that you would ordinarily expect. A senior would be responsible for the area and zone. The HAS is responsible for the establishment, and not the org officer. The org officer is responsible for the production. The org officer is responsible for enough product, usually product three, to get the production officer supported so he can get products out. And there's where he lives. And if he has an HAS that's going to come around every morning and say, "What are your orders, sire?" and doesn't just get on with it, why he's going to be in trouble. Do you get how these things figure out?

Now they do disturb traditional relationships in an org. And they disturb those relationships so badly that a staff that is grooved in in some other way is liable to be a bit confused. And as I told you earlier, if they feel better having an HES and having an OES and a PES and so forth, why that's fine. But certainly they've got to have a distribution sec and so on. And if they feel better that way and it looks better that way, if they've got to have something like that you can always put somebody on there. It doesn't matter, it's just three more names on an org board.

But you'll find yourself immediately into some kind of an interesting situation. You'll find yourself in an interesting situation. You're trying to go through an EC committee authority, and you're trying to do things in an orderly fashion, and production is always done in a disorderly fashion. Order is the exception. And that is why you have a whole officer, the HAS, devoted to bringing order, in terms of putting an org there which can run in an orderly fashion.

So, that is as far as your orders go. Putting an HCO there is a, quite a job. It is a sufficiently hard job that there were one and one half HCO personnel in England one year ago. One and one half HCO personnel in the whole of England. Isn't that interesting? Must be very hard to put an HCO there. We had them counted. I often wanted to see that half HCO personnel. That was a year or so ago, and it was a period when the org started to sag a bit.

So what does it take to put an org there? Money. It takes income, loot. That's what it takes. And how do you make loot? You deliver, and you get people to come in and take advantage of the delivery which you are accomplishing. And you develop the consumption. And that is how it works.

Now you are immediately going to collide with the proportional pay system which is being abolished. Now as soon as we can get this backed up and straightened out, a new financial situation is being arranged for Scientology organizations, as well as Sea Org orgs. It's more or less running this way in Sea Org orgs now. The exact form that it takes is probably still open to some adjudication. There are some people who have a say in this line. People run these finance networks, and they have their own ways of doing things. And you can't be too dictatorial and mandatory about the whole thing for the excellent reason that they also have a working arrangement.

So the exact actions are based on this formula however, that the org has an allocation, which is a minimum allocation. It's bread crust survival. It covers the rents and the lights, and it might cover a little staff pay, pocket change. And they make all of their money on production bonuses. And it's the degree of production which was brought about by the org which determines their allocation. And going in on an FBO system, and it runs simply like this. Financial planning is done on the basis of necessities, and along with that is the state of production for that existing period, and that is passed through to the division three and so on, and it's an ad council action. And division three has a checklist of the necessities of an org, and they check this off and they see that if it's within rights then they do what financial adjustment or financial planning is done in the field of financial planning. This is then forwarded to a finance banking officer, as a submission for allocation. The Flag finance banking officer; you notice the title has been slightly shifted; then makes an allocation. All of the income of the org is picked up and banked by the finance banking officer in probably two separate accounts. They are management accounts. That money which is allocated is then given over to the normal banking system which an org follows.

The adjudication as to the rightness, wrongness and otherwise of this is done quite fairly. That adjudicatory function, when all becomes too horrible and so on, is given to the Guardian's Office, so that if this situation goes completely out of gear, or injustices are occurring, or something like that, there is a local submission that can be made so that the Guardian's Office can adjust it. Guardian's Office has an excellent record on cash/bills.

Now, the management debts of the org, or the management part of the org, or management costs in managing the org normally come out of the management accounts, so that the org does not have to be too worried about that. In that fashion, a reserve is built up, and expansional actions can occur in the org without the income being consumed in day to day running operations. And that way you will get an establishment. Otherwise, I can't conceive of any way you will get one.

So, if the production is there, the allocation of course is quite good. And if production isn't there, it is barest survival. And in that way why we have already got successful actions in this. There's a lot of background in how this is done, but it has never been laid down as an exact formula on how it is done. And you could expect that formula from time to time to be shifted. But the formula is simply that there is a basic allocation to the org. And that basic allocation keeps it from getting into the sherrif's hands. And that's about all. And the org, to make any income and pay and do other things of that character, and pay its payrolls and so forth, that org would then have to have certain production. And these are called production bonuses. But they aren't bonuses to the individual, they're bonuses to the org.

Now that would influence financial planning, and might very well act in this fashion. The product of such and such a division was practically nil, therefore the requests for FP and so forth by that division and so forth, would get a rather jaundiced eye from the treasury sec. And it would certainly get a jaundiced eye from the finance officer. Fifteen staff members producing nothing. So it doesn't get a bonus, so that division would stay on a starvation level until it got a production. And in that way, then you don't have your throat cut as a product officer of having all kinds of consumption of the valuable final product at the org in such a way that you cannot build an establishment, 'cause you'd find yourself just stalled on a plane, unless such a system were introduced.

The proportional pay system has served its purpose. As long as I was managing orgs fairly directly people actually received more money than they ordinarily would have received, on the proportional pay system. That has not been the case for some time. And the proportional pay system was to maintain an org so that it did not become insolvent. And we have maintained these orgs, now we're ready to boom them, and so on. So the proportional pay system, people are thanked for having been on that system, as horrible as that system occasionally worked out to be. But they have actually served their purpose. They have kept the beach head.

Now of course, the valuable final products of the org are on the FEBC, on another subject here. The valuable final products of the org are on the FEBC org board at the bottom. Or should be. And I can read them off. Now there are products, and there are valuable final products. And although the valuable final products of an organization are; let me say one more thing about the finance system. The thing that you will run into in the finance system is not understanding it. And the reason people won't understand it, it's too simple. Actually you're running on a much more complicated finance system now.