1.) There is a dichotomy here between Production and Establishment. (One tends to get in the road of the other unless brilliantly coordinated.)

Alright, this is the first of March AD22 and the subject is the Establishment Officer. The background history of Establishment Officers begins in l950 when I was the Establishment Officer. And what happened was that I bought the desks and gave the lectures and did all the products and did most of the auditing, and tried to do this, that and the other thing. And I worked about eighteen or twenty hours a day, and to some degree made it come off.

2.) Example: In 1950, I had a PE Lecture Line set up. Ads on radio. 125 people per week came to Lecture. Filled in cards with name, address and service wanted. Left them on the chairs. Then the line broke. But the janitor, sweeping up the floor afterwards, decided the cards were valuable and brought them to me instead of burning them with the other trash! So the line was: Ad - PE Lecture - Card - Janitor - Me! Wow!

When I dropped off of the scene, there was an instant collapse. These organizations ran, but they ran to such a degree with out-ethics and this, that and the other thing, that they eventually went down the drain. Those were the first Foundations. I wasn't an officer of those foundations, that is I was an officer of them in a courtesy, but I was not the Board and I was not the prime mover. Actually the Board of Directors was a very, very bad barrier to getting anything done. Mostly, mostly because they had ideas that they should be popular and do the usual, and popularity is one thing and truth is another.

3.) The org in 1950 (Dn Foundation) was making a fortune until it crashed because of out-ethics and Dev-T, dishonesty and takeover attempts.

And the reason why the university has never made it, the reason why psychiatry would never make it, the reason why the medical doctor would never make it, the reason why the normal garden variety research man would never make it, is because everything he researches is debted, that is to say edited, against the reputation of the institution. "Reputation is all, truth is nothing." And that is the downfall of the American or any other university, or any research organization or any research man.

4.) It could be put back together again. ANY org can. It doesn't matter what the PR is, The papers and Time Magazine say, the attacks by psychs and the governments, the word of mouth in the street. None of that matters.

So, when you found out that this or that was necessary to resolve the case and you found out that this or that was the way it was, you found out that this had to be edited because it might not be popular, because it might not be acceptable to the people, or the best people who were running people into the very best possible grave. So that, that type of editing of the organizational actions and that type of government is a government that will fail.

5.) An effective, efficient organization which is running viably makes money EXACTLY IN PROPORTION to the amount of production done by each individual post in it without Dev-T.

The normal management lines which are conducted in the world are conducted, when they are successful, by men in a mood of desperation and exasperation, they are carried on the backs of one person. And there will be a half a dozen stalwarts within a very large group that keep the show on the road one way or the other over innumerable slumberous, alter-ising, editing, all-for-the-best mobs. And as a result, the life span of organizations approximate the willingness span of their prime motivators. And after a fellow has wrestled with it just long enough and been caved in and done this and done that, why, he tends to move off or quit to some slight degree. He says, "Well, I'll put my attention on this now, and I'll try to make this go right," and abandon certain other lines and sectors. And then things cave in here and there, and then with great heroism he rolls up his sleeves again and gets in there and tries to make the machine go, and leaves bruised feelings and human emotion and reaction widely spread, but he does get something done. And then he will relax and it will tend to fall apart.

6.) And THAT is how an org is put together.

You ask any of the executives who have been the motivator, motivating, that is to say the causative executives of Scientology organizations and they will tell you that that cycle is too true. And it is the cycle of civilizations, not just the cycle of one organization. Anybody who has been in there pitching can count the number of times that they have put together a Dissem Division or an HCO or a Tech Division or something like this. A missionaire goes into an org and he sorts out what he's supposed to sort out. One week later it's gone. The stats show it.

7.) The flow is not to just "hat somebody". The flow is not to END there. The full action of HATTING means to HAT HIM AND GET HIM PRODUCING THE PRDUCT OF THE POST.

Now establishment, establishment is then the key to organizational prosperity and it has never been recognized to what degree establishment accounts for the prosperity and longevity or long life of an organization. What happened to a Joburg or what happened to a Washington or a London or a St. Hill? Well, they were put together, they should have run, but in a relatively short space of time they fell apart. Now, why did they fall apart?

8.) And that is what an ESTO does.

Man in his cultural, anthropological, ethnical and other brain cracking word background, is essentially a nomad. And when you have a society which runs at high tension and where the values in the society are tremendously multi-changeable, where the society itself is enturbulative in the extreme, the individual society member is knocked from here to there to back and forth and around and around. And he himself is in a state of foment and a state of change, continuous state of change.

Ex: New guy comes on post. ESTO says:

The number of, the number of addresses that have to be changed in an organization; you can have your address list write-up and then the address change is, backlogs or drops behind, and you get immediately an out-of-date mailing list. Why? It's worst in the United States where the society itself is the most chaotic, but it is certainly bad enough in England and Europe. The society itself doesn't take care of the fellow's various rights. Oh, take a simple matter of a divorce. Take a simple matter of owing somebody for some blackberries that weren't fresh on delivery which you now won't pay for. Well, I suppose you could spend a hundred thousand dollars and so forth trying to clear up this case of blackberries.

"There you are on the Org Board."

If there is an injustice in the United States, the United States government's probably committed it. As a result, these injustices and these various economic social stresses are such that you get people who are PTS to the society, cannot concentrate well on what they're doing, and who are themselves in motion; they themselves are unstable. So, you've got a Dissem Sec today and you haven't got one tomorrow, and you've got a Registrar today and you haven't got one tomorrow, and you don't have a Distribution Sec today and you're not about to get one. In other words, the ebb and flow of personnel is the primary disestablishing factor, the stresses the personnel are under and their nervousness and restlessness in the society.

"There is your desk."

Now, our organizations are built out of people so we have an analogy in a machine whose parts are there today and gone tomorrow, whose parts run all right today, the oil filter works okay today, but tomorrow has a dent in it mysteriously received. In other words, that machine would have an awful time running. Today it has a cog wheel, tomorrow it doesn't; today the spark plugs are there, tomorrow they aren't. And so, the economic stresses of the society make no allowance for the fact of this instability. And day by day all of the hustlers and salesmen and bill collectors have to be paid. The landlord has to be paid and this one has to be paid and that one has to be paid.

"Here are your supplies."

So the organization which is disestablished, suddenly or gradually, yet is still carrying an economic burden. Its economic burden does not decrease, it increases. And that is because the money itself at this stage of the game is inflating. And that's because there was no establishment officer to hat the President of the United States and give him a few facts of life. Instead of that, he read a book by a pederast named Keanes who, part and parcel of the Fabian society, the honored guest of Stalin and the husband of a Russian ballet dancer, has dominated the political economic scene for decades. They're just getting wise to him now and starting to throw him out as the primary textbooks of the university. He advocates infinite inflation, the keynote by which he runs is "create want." He's sure going to create it eventually.

"Here is your hatpack."

But that was not the economic textbook which built the United States. There were two Hungarians used to tear around and advise the heads of state. I'm sure they were backed up by the Council of Foreign Relations or someone like that. But they used to go around, and they'd see this country, they'd go in and they would give the head of the state all this advice, and then they would move on and they'd go to another country. Somebody got interested and ran their back trail, and their back trail was followed down to ruin and bankruptcy each time they had advised anybody to do anything. They were Wilson's key advisors just before the deflation.

"The guy you relieved can answer your questions."

Now, England's economics were not built by two Hungarians who drifted in with some weird oddball Keanesian theories, so they changed their tech. And nobody has ever done an evaluation in any of these economic scenes. First and foremost, they don't know how to evaluate, that's the best reason. But the other is that governments are on a sort of a suicidal kick, they are not on a constructive kick, they are on a destructive kick. The only answer a government has to any given situation is violence. You press them a little bit and you run instantly into violence. You do not run into anything sensible. They cannot be talked to. Now you could see violence occurring or being pushed out from a government if they're attacked by violence, but mostly their violence is against the weakest and the most easily controlled people.

"Read your hatpack."

So, here's an economic scene which basically is not solved by good sense but is solved by off-the-cuff squirrel tech and which gives the establishment of anything a curve, because you can't establish it today on X dollars and expect that it will run tomorrow on X. So you could establish a whole organization beautifully to run with a Financial Planning number one, and three months later with birds like these Hungarians, oddball textbooks like Keane's, and you will suddenly find out that your Financial Planning number one no longer matches. In addition to that, the economic stresses on the staff members that you are dealing with will have increased.

"I'll be back in a couple of hours to check you out." -

And then this therefore is a disestablishing action from the point of the staff member, adding to his restiveness, his move-on-ness and so on.

"Now, what's your post" who is your senior? What do you produce on this post?" -

Then some bird comes in and tells some auditor who is stupid enough to listen, that he can make twelve hundred dollars a week if he just goes to work for the Keokuk Franchise. And the auditor is damn fool enough to pick this up, goes over to the Keokuk Franchise and makes one dollar and twenty cents. But, there is an effort also, then, to pull off trained or staff-experienced people.

"Take hold of these cans. What are your misunderstoods? What word is it?" (Method 4 Word Clearing) -

Now, the answers to these things are not as grim as they look and they are not just establishment, that you get it into concrete and then it stays in concrete and then the Establishment Officer is no longer needed. And if you have that view of an Establishment Officer, that you're going to build something that there it is and all you have to do is dust your hands and step back and it will stay there, throw the idea into the nearest waste basket because it isn't true. You are dealing with an economic society which is restive. You are dealing with people who are nomadic. You are dealing with governments that deal in violence against their populations. And you get shifts and changes, both in the society around you and within the staffs you are trying to establish.

"What machines do you have here?"

So an establish and maintain established is the index of it all. It's establish and maintain, and establish and maintain, and establish and maintain, and establish and maintain, and establish and maintain. And it's all gone one Monday morning when you look in because the guy you had been counting on to do waffle waffle waffle and so forth, he's gone. His wife just jumped over the cliff, or something has happened and that's all bwow! So at that moment you get a brilliant idea and you establish and maintain. You're handling stuff that makes quicksilver look like iron.

"This is your instruction manual for that machine. Study it for one hour. Identify all the parts. I'll be back in an hour to star-rate you on it." -

So the Establishment Officer possibly is better named as the Establishing Officer, because day to day and sun through sun, the Establishing Officer's work is never done.

"I'm sorry you are confused. Sit here and confront your area for 2 hours." - "Good. Now we will run Reach and Withdraw on your typewriter." (or other equipment).

Now, if you're dealing in that much of a quicksilver society, with that much disappearing; I might as well give you the bad side of the picture, don't you see; then you must learn how to establish very rapidly. And rapid establishment is the answer. So that there are three types of establishing targets: Instant, medium and long. You're always dealing with all three. Your instant doesn't get graduated up to medium, and your medium gets graduated up to long, and you finally make all those and that is it. You are always dealing with an instant while you deal with a medium and while you work on a long. So there's the instant, medium range, long range; the three types of targets. The successful Establishment Officer will have all three of those balls in the air simultaneously.

9.) This is an example for how I have done it in the past. By the way, do you know how to run Reach and Withdraw on a Steward? You have him com in the dining room and then go out. ("Reach" = he comes in "Withdraw" =he goes out.).

We will have a Dissem Sec trained by next Tuesday, but right now there is a Dissem Division which has no Dissem Sec on it. If we blew this fellow off, why then we will have to on-post hat him, but he's almost finished with his OEC and that would be a shame. So how do we head this division until he gets there? This is the type of problem with which one is dealing perpetually. And the only advice that I can give you is, do it.

10.) And before you run R&W, you have them do a 2 hour confront of their area first. It's the gradient of the TRs. These are "Work TRs". And they WORK. All of the TRs can be done between the person and his post.

Now we have, then, a history of twenty-two years of booms and depressions. When the Data Series was developed, a tool was developed which made it possible to then penetrate these obscure mysteries as to why booms and depressions, booms and depressions, not only with the organizational network as a whole but the individual orgs go through that cycle, boom depression, boom depression.

11.) You would be amazed. Around here someplace is the account by Bill Robertson of hatting a Steward on Reach and Withdraw who had been one of the wildest Dev-T artists we had for sometime. He had the guy having wild cognitions and gains. Afterwards the Steward did function quite well on his post, and became a good Sea Org member.

The evaluator in the Data Bureau the other day told me that the book receipt monies, now hold your hat, the book receipt monies of l967 at St. Hill were greater than its total income today. Now that is a terrifically spelled out collapse. The ban had very little to do with it, but they did lose their American trade. But they mostly didn't listen when I told them they'd better build up their domestic trade. But that gives you the difference, the two magnitudes of organization. Huge.

12.) You will find people go downhill on post just because they don't ACK and have never been ACKED. (So TR 2, 3, 4 are very valid too.)

Now the funny part of it is; I noticed this first in l950, l951, '52, I noticed it very strongly in later years; that external actions to the organization have almost nothing to do with its survival factors at all. You can go anyplace and build an organization. If it is a soundly established organization which is producing, it will get in direct proportion the income that it has established to achieve. Now that is a factor which an Establishing Officer has to learn, and that's probably the hardest and biggest, toughest one to learn because the staff around you all have their aberrated whys as to how come the income is down, how come they can't get out a bulk mailing, and it's usually wigged "Why is God." But it'll be some fixed thing. And so you get at the reasonableness, the reason why nobody attended the open evening is that there was a football match on the same day. I've heard that, you see. But looking under it, I found out they didn't announce it.

13.) So TRs can go out on a post. They don't report or say they have "done it" when they complete something.

So the tool to discover causes exists, and that is the Data Series, and you can discover these causes. And when this thing was finally, when the Data Series was finally used against the whole of this picture, the answer emerged. And the answer is, an unhatted staff generates dev-t. They develop enough bad traffic and sour traffic that they impede all productive traffic. And the reason back of dev-t is unhattedness. These orgs can be busy, they can work themselves to the fringes of exhaustion without producing anything but more dev-t.

14.) More hatting Examples: "Read Problems of Work - I'll be back in 4 hours to see if you've finished." "Buy a Volume 0 from the bookstore and read it." "Come over here and I'll show you the comm system."

An adequate description of any government on the face of the planet today would be "dev-t." If they all vanished, the world would be far better off. The amount of dev-t which they generate into the society also affects you organizationally. And the best way is to hide it off, just compartment it off and set up a little section to handle dev-t, and that's called an Accounting Unit whom attacks people or something like that. Capital Airlines had twenty five certified public accountants that did nothing but handle the government tax people.

15.) Now that's an example of Hatting ON Post. As an ESTO, you would even go into greater detail and get him to produce a product of his post as a practical demonstration of his competence.

So there's dev-t all around an organization, so it is no wonder that the organization itself develops dev-t, since it is operating in a gorgeous tradition which has been going on for the entire history of Man. And that dev-t comes from unhattedness. The reason the economics of the United States are bad is there's no Establishing Officer hatting the President. That's just that. Yeah, well, he's in charge. The Establishment Officer isn't. But if that combination existed, this would damp out. He's a complete madman. He's handing out about three quarters of the national income into channels which will never do anybody any good at all, which solve nothing, and then wonders why he has inflation. In the most basic textbooks of economics it tells you not to do that, it says don't do that.

16.) "ON THE JOB TRAINING" has been used in the wog world, alternating training and apprenticeship work and study and practical. Now we are going to step that up enormously.

And he then has designed the idea that the working man, demand for wages, is the reason why prices are increasing. Wrong why, and yet economists continuously have been pushing that why. The working man has to have more wages because he can no longer buy bread. So the basic whys aren't found. But that is the basic why. That is the great big gaunt wolf. Unhattedness develops dev-t. Now it isn't just unhattedness, that for an Establishing Officer is too simple a statement, much too simple a statement, because it just isn't just hattedness, it's the lines, the meshing of these hats, the space in which these hats are worn, the arrangement of it, the adequacy of it.

17.) We are going to INSTANT HAT and then have him PRODUCE THE PRODUCT of THE POST. And then HAT HIM A LITTLE MORE and PRODUCE THE PRODUCT OF THE POST. And then HATHIM MORE and PRODUCE THE PRODUCT of THE POST. Etc., etc.

There was one staff in one organization had its comm center three floors down in the basement, as about the only unit that was missing out of their organizational lines. Spacial arrangements can cause dev-t, the way lines flow. If you have a hot flowing line from A to B but exactly perpendicular to that have a hot flowing line from C to D, those two lines are going to collide. In other words they can't flow, because they're having to flow through each other or across each other. So spacial arrangements are important to an Establishment Officer.

18.) We are going to do ON THE JOB HATTING. So you could expect to get a brand new typist and have her almost immediately getting out letters.

The equipment with which an organization deals is important.

19.) And tomorrow, they are going to be BETTER letters, because in between you are going to be hatting her.

Twenty-five thousand dollars worth of equipment at AOLA was inoperational by report. The person that had this in his charge, Dir Comm, had just let it all break down and apparently he wasn't reporting this fact to anybody, even his immediate officers. And the next thing you know, it was very difficult to get out a mailing. Now, there's a big machine which folds and envelopes mailings, takes up the better part of one garage at St. Hill. The repair parts for that machine cost one guinea. The bulk of the St. Hill staff gets tied up with every mailing. The machine is broken and they don't put the publications together in a size that can be stuffed by the machine. Duhhhh.

20.) You can "track" an I&R thru an investigation to see what he can't handle. Hat him and do more. Eventually he will become a VERY professional investigator.

A project written to repair St. Hill's machines a couple of years ago, to my knowledge, has never been executed, although there have been plenty of people to execute it. All they had to do was hand them the project, it automatically carries authorization for all expenditures for the machine repairs. There's a staff working itself to death and there's a machine that will do all the work, and they don't come together. Now why? Why such idiocies? Well, the executives in charge of the organization are driven by the economic necessities of the society in which they find themselves, with the bill collectors, with other things, into a flat out, day and night, hammer pound, to get some production, to get something done, to get some income in. And they are just spread so thin that they haven't got time to notice those machines are broken, any more than I have time to run this engine room.

21.) I have C/Ses telling me - "But I know where to LOOK FOR the technology, so I really don't have to know it, do I...? Ahh - so. The C/S HAS to know the TECH so he can tell the AUDITOR to look it up. And so he can PLAN and PROGRAM the handling of the case. The Reason C/Ses make mistakes it that they haven't gone over their materials enough times. (Number of times through = CERTAINTY).

Now, it isn't the fact that I couldn't. I could. But this planet, for some reason or other, is rotating on a twenty-four hour, it isn't quite the twenty-four hour spin, but it is rotating close enough to twenty-four hours a day around a twelfth rate sun at the outer corner of one of the smaller galaxies. And it inexorably rotates at twenty-four hours a day. And as hard as you try, you can't make it rotate at twenty-eight or thirty-six. If it just would, you might have a chance, if it just would.

22.) I have studied BASIC PHYSICS, for instance, 5 times. I got very familiar with all of its laws. Once at George Washington University (where the media say I never went) I helped a Senior design a Locomotive. He didn't know what a "British Thermal Unit" was so couldn't figure out the Dimensions of the coal-burning firebox. I was a freshman at the time.

And so somebody who is holding everybody's hand, buying all the furniture, answering the bill collectors, talking to the irate customer who wants his money back, trying to get five more auditors because the last five they had went into a mutiny and quit when asked to go to cramming, this fellow living in the midst of all that and so forth has not got much time to notice much about that machine.

23.) Do you know that C/Ses hang up because they don't know what an Engram does? They will send a guy to a doctor because right after a session he breaks out in a rash on his skin! Man, that's a restimulated or unflat engram for sure!

Now the boom and depression cycle was caused by the exhaustion of the executive in handling the thing, and the dispersement of staff because of the nomadic character of society. The boom and depression was caused by establish and disestablish, and that cycle of establish and disestablish was accompanied by an increasing cycle of dev-t. And you have the exact description of why orgs rise and why orgs fail. If we're ever going to take this planet we will have to eradicate the failure end of that cycle. See, that's elementary, right?

24.) I have to take C/Ses back to their basic TEXTBOOKS I never bother to teach them the "upper story" of tech till BASICS are in.

So, a vast study of this and a tremendous amount of expertise of this has shown that there is a division of labors. If anybody is going to get a dinner and he doesn't put a stove there or a fire, and he doesn't have any ways to get any supplies and there are no dishes, and there are no food preparers, I won't guarantee the quality of that dinner. That's going to be a pretty lousy dinner. Establishment is what adds quality to a product. It's no reason to scream at the CO or ED about the quality of his organization which isn't established, because the dev-t in the organization itself is sufficient to disestablish it and that will shatter the quality of the product he is trying to produce. Do you see what's wrong?

25.) Every post who is NOT doing its job well has its BASIC TECH FUNDAMENTALS OUT!

Yes, he theoretically would love to turn out a very sleek pc, but with this, that and the other thing, and because the person out there on the folder line didn't, and the, after all, they called this person in on Friday and had to have him go, only have one day in the organization, and he had paid for um..., and at the other end of the line you are glad he got out of the organization without a red tab. You get the scene, you get the scene.

26.) This can be so bad, they don't even know these BASICS EXIST!

Well now, I can hold one of these organizations together and I normally can build one up. But it sometimes gets so bad that it takes about a twenty hour day and you wouldn't believe some of the things that I have to handle and some of the outnesses which I find. It is fantastic, it is just beyond belief. It's because the hats one, are not known or worn, and because the hats are not meshed with the hats so that they run in coordination with the hats. The materiel problem breaks down and the spacial relationships get tangled, and the economic duress puts barriers and breaks on what you can do. And that brings us to resources.

27.) Ex: I found a person writing "ARC Breaky" letters who was crammed and crammed until it was found finally what was out. The person had never heard of the ARC Triangle!

An Establishing Officer always has to work within the reality of the resources available. It is all very well to attack the German army as a plan. Let's plan to attack the German army. The resources available are one corporal with a broken leg. Actually it's a state of insanity describes this perfectly. It's called megalomania. Here's this little guy who wouldn't be able to balance, hold up a match stick, and he's going to move the world. It is a complete overestimation of what you can do. Resources is the limitation factor. What do you have to do with?

28.) These fantastic outnesses are possible in the ABSENCE of an ESTO. Just as in auditing, there is the "POLICY that will resolve the case".

And now we get into the genius department. The less you have, the more genius it requires. And that's probably a rule of an Establishing Officer. The less resources you have, the more genius you have to inject into the situation to substitute for the lack of resources. So genius substitutes for the lack of resources. "How the hell are we going to establish this division? We have two people. Well, I could get in there and do it all." Wrong answer. Wrong answer. The primary error that an Establishing Officer can commit is to start handling the actual traffic of the division. The org will never grow and he will not be an Establishing Officer. It is an illegal order to give an Establishing Officer an order to handle the traffic of the division. Illegal across the boards. Illegal as well to take him off and put him on another post because personnel is so scarce. That is the exact way never to have any personnel. So the resources are made up by the brilliance of the performance.

29.) There IS a thing called STANDARD ADMIN. There IS a way to file a CF. It has to do with cabinets, folders, pre-file baskets, etc. I sent Herbie (Parkhouse) to AOLA to handle their CF. He found 3 children working in it and one out-ethics case. The Product Officer never had time to notice it. THAT'S why you need an ESTO.

There's one country that has a good background on this, it's a nice little model, it's Sweden. Sweden has been able to hold her position in the world by fantastic technical developments and by efficient organization. And the organizing that has been done is so efficient with regard to its world relationships that they're very hard to believe. How did they stay out of those world wars? How did they emerge prosperous on the other end of it?

30.) What does it take then, to put somebody on a post and hat him?

So you can always substitute for numbers with efficiency and brilliant ideas. If your technology is brilliant, your efficiency is fantastic, you can take the lame corporal and attack the German army, not even on a forlorn hope basis. That's what I think Hitler was doing, attacking the German army. He defeated it utterly. So it's all from what viewpoint one is operating.

Well, it takes:

If I were to tell you that we have one of the hottest, smartest units in the world of its kind, you might or might not agree with me, but it's the Guardian's Office. Now, that is a hand-built organization and it was built for a certain definite policy and planning. They had a certain definite purpose. It is better, now hold your hat, it is better today than MI-6, CIA, DIN, State Intelligence or the Abwar. The decline of psychiatry on the planet came about because they attacked the wrong target, us. There wasn't any unpopularity of psychiatry 'til we opened our mouths, and now it's generally thought to be the case that they're sort of a failed, half-baked, murderous sort of bunch of bums.

- PUTTING HIM THERE.

The World Federation of Mental Health has now just been transferred to the West Indies and put in the hands of an obscure psychiatrist nobody ever heard of in a back village of blacks. Now, it was the world's most powerful mental health organization, formed by the death-campers who escaped to England. Now, how did it ever get to Jamaica on a back street of a small village? Now, you get the idea? The Guardian's Office doesn't have huge sums of money, they don't have vast numbers of personnel, but they've got technology, they have got some of the hottest technology that anybody ever heard of.

- SAYING HE IS THERE.

One piece of that technology is over two thousand years old, it comes out of the "Art of War," it's called the "dead agent technique." But the Art of War doesn't state what the dead agent technique could be in full, it was developed within an inch of its life. A newspaper reporter today going into his own morgue files, in any paper anyplace, to get some material to write about Scientology, collides with how bad psychiatry is. Now, how did anybody ever manage that? The people who were running the psychiatric push are dead. Worried to death. Now, how did anybody do that? Psychiatry had an huge, escalated program, escalated, climbed right up the escalator and upstairs, fast: To degrade the human race, to supersede all normal justice with psychiatric anything. They had this up to a point where they had legislatures all over the world, and parliaments and so on, were just passing seizure laws which were moving right straight forward which were opening the gate to a totalitarian state for this planet nobody ever heard of. And they made the mistake of attacking us and attracting our attention.

- SHOWING HIM WHERE HE IS ON THE ORG BOARD.

Now, one little handful of guys going in against a multi-billion dollar organization such as that, and messing it up and knocking it flat on its back, is quite a feat. And the whole organization was put together and made to run in a few months, and it did its job and accomplished its objectives within three years. Now that shows what can be done.

- WHAT HIS POSITION AND RELATIONSHIP IS AND WHAT TERMINALS HE GOES IMMEDIATELY TO ON HIS FLOW LINE OF PRODUCTION AND HIS COMM AND COMPLIANCE LINE.

Have you ever received anything from the Guardian's Office? Have you ever received a letter or anything like that? You don't know too much about them, but have you ever received a note or a letter and so forth from Central Guardian's Offices and so on? They're always very neatly typed and they're usually put together well. Did you ever notice that? So their administrative procedures are in. They follow target policies religiously, they program everything. If some, if somebody is to go out and find out about somebody in some small town someplace or another, he's on fully programmed orders, fully targeted orders just exactly against the target series, but they carry it through to an enormous degree.

- HIS ACTION ON POST, HIS SUPPLY LINE, HIS EQUIPMENT, HIS PRODUCT.

Now, that's what can be done by establishment. Now that required then brilliant technology, small resources but very, very sound, hard organization and fantastically able management. So don't for a moment underrate what you can do as an Establishing Officer if that job could be done. It is a complete disgrace that Scientology organizations and Sea Org organizations have not taken more territory than they have. A complete disgrace. People will sometimes say, "Well, the org board might be out, or this might be out." That's all "why is God." The actual fact is that it is simply that failure to establish and continue in an established state and continue to establish, they are destroyed by dev-t. And the dev-t is developed because of unhattedness.

- THEN WHAM! PRODUCE SOMETHING

They have brilliant technology. It is not applied. You don't have to worry about the technology. Both in tech and admin, boy, it's there. It is infinitely greater and infinitely more effective even than the intelligence technology on which the Guardian Office operates. But it's not known. Do you know that in the Sea Org, there has never been a whisper of the word "dev-t?" Nobody's ever mentioned it. Once in a while they use it as a curse word, but they really don't use it.

31.) This begins to reveal all. NOW you can find his misunterstoods.

Old HCOs policed dev-t hard, hard, hard, hard. They got the whole staff communication hat on as the first action that was done with the staff member and I've gone back and isolated this fact from the lines. That was the first thing that happened to the bird. They showed him how to write a dispatch, what to write the dispatch about, one subject one dispatch, the dispatch had to do with what he was doing and the dispatch had to do with the person he was writing it to. And they just kept this up and kept this up 'til you had a well-disciplined organization which would hold its form. That has not been done for years. When that ceases to be done, the organization tends to disintegrate. But along with that goes hatting.

32.) Now listen- you can muster him, march him, chant the org board, etc. - but you won't find out if he knows anything about his post or not, unless you ask him to PRODUCE SOMETHING.

Now, I'm just trying to give you some of the bad spots, some of the bright spots and so forth, and the background history. It has been very difficult for me to operate as the Establishing Officer to all of Scientology while getting out the production, while evolving the technology. But in doing that, enough experience was gotten together, enough technology was developed, to make the pieces fall into their right places. And they are somewhat like this. The product/org system is a brilliant system, but it has a fatal hole. The HAS had no more chance of establishing the organization than a man in the moon. And a survey throughout the United States and other places demonstrated that this, according to its staffs, was the total failure of the organization. The failure of the HAS to establish. This was uniform. It ran at something on the order of 97% on a survey. So this isn't just an off the cuff evaluation, this is an evaluation with observations and surveys and everything you can think of.

33.) And THEN all the confusion rises to the surface, like the "body after 3 days in the water".

The Product Officer with his attention on production, the Org Officer making the preparatory steps necessary to get the production in, were not backed up at any moment by an effective establishing action. Now we know all about that, we have the background history of that. The basic theory of the system is brilliant. In its execution we find out that we underestimated the number of people necessary to establish an organization in these upsetting, twirling, whirling dervish times. The number of people that it takes to establish an organization has been underestimated by about ten times. In other words, it would take almost ten times as many people.

34.) "Now, lets see you produce a sample product of you post." This is where you get the blank stares and the comm lags. AND THIS IS WHERE THE DEV-T COMES FROM. BECAUSE PEOPLE NEVER DO "NOTHING". THEY ALWAYS DO "SOMETHING". SO HE WILL "FILL IN" FOR HIS NOT-KNOW OF HOW TO PRODUCE WITH DEV-T, NON-PRODUCTIVE MOTION.

So, with this in view, a brand new method of handling an organization, using all that was good in the Product Officer system, has been evolved. The Commanding Officer/Executive Director of an organization is the Product Officer of that organization. He does nothing but think, breathe, eat product. He knows the valuable final products of the organization, he demands them. When he doesn't get them, he investigates by data analysis, finds the why, debugs it, writes a program, brrrr. The program is carried forward by the Deputy Commanding Officer or Deputy ED. The Deputy ED in other words, is the program executor, also the handholder, also the dev-t catcher, of the product officer.

35.) So very soon, as an ESTO, you want to see him PRODUCE A PRODUCT. Now you will see what policy he needs, what supplies are missing, what CONNECTED lines are out - because all of this starts EXPOSING ITSELF the moment you say "Produce a Product" at that post. Also the backlogs, the unfiled things, the space, lines, and comm breakdowns will show up - as if by magic!

Now, there is a yeoman or a secretary to the Commanding Officer or the ED. This is the top man. He has a yeoman. That person just operates as reception. The Deputy Commanding Officer or ED makes sure that yeoman stays trained, to divert dev-t from the Product Officer's lines, and goes around and gets those program bits executed. So therefore the planning is really carried out at the top, where it belongs. The planning is carried out at the top and planning has to carry with it summation of observation. It has to carry with it investigation, it has to carry with it all manner of look into it, straighten it out, find the why, evaluate it, you know, find the why, write up a brief program based on a brilliant plan which isn't yeah, yeah, figure out, five yards long and ties up the whole organization and is itself dev-t. Anything based on a wrong why is totally dev-t.

36.) Now this doesn't conflict with the Product Officer at all. The P/O wants ALL of the products and he wants them NOW so they can be numerically counted. And if he doesn't get a sufficient quantity and quality he gets bloody-minded, and this goes into ethics, heavy-ethics, and then "witch-hunts".

So this short, succinct plan of what we are going to do to get this, that or the other thing debugged, would go through to the deputy and the deputy then is actually operating as the Org Officer, but he's really not doing organization, he is doing program execution. Now, the Commanding Officer or ED has a conference and that consists of the divisional secretaries, and that is the Product Conference. And every divisional secretary is himself a product officer, and is only a product officer, and he conducts investigations into his organization and debugs those areas where he is not getting the product. And he has a deputy who carries forth his programs and handles his administrative load. And that product conference doesn't even do FP. They eat, think, sleep, do nothin' but products. That's produce, produce, produce. Now, the way this thing has gone is the Product Officer became so impatient with the slowness of establishment that in the PAC area the orgs destroyed themselves by saying they are doing too much establishment and they weren't producing enough, so therefore the thing to do was produce but not establish. "Now, we want eight hundred and fifty-five names to CF immediately and we've got to get those names to CF and in the CF and so on. We've gotta have sixty-two students a day, and so on, tear up CF, throw it all over the floor and try to find in it the names necessary so we can meet this sort of a quota." And it tore the whole PAC area to pieces and made it insolvent. So, this anxiety for product carries with it a deadly germ. The scramble for product will disestablish.

37.) Probably of all the "witch-hunts" we ever had, only 2 or 3 were valid. The rest were simply "Dev-T" merchants who, through UNHATTEDNESS, were too damm stupid to know their actions were totally suppressive.

So, there has got to be somebody there who carries forward the establishment of the org, and keeps it established and hatted and dev-t free, and producing what it is supposed to be producing instead of "all hand will now audit all next week, whether auditors or not."

38.) They may even produce a bit of their products but then get into other things which are NOT their hat and snarl everybody up.

So, the third member of the team is the Establishment Officer I/C, which is going to be changed shortly, by the way, to the Executive Establishment Officer, except that the name was missed on the checksheet and they tried to make the Executive Establishment Officer the name of the person who was in charge of the Executive Division. He is the Seven Establishment Officer or the Division Seven Establishment Officer, that's his proper name. Esto I/C is what we have been using, it will shortly be referred to when bulletin, policies and that sort of thing start coming out, it'll be referred to as the Executive Establishment Officer.

39.) We had a spate (time) of heavy ethics when we started establishing on the ship. It was a wrong why. It wasn't that people were lazy or slow to comply - they were "stupid" about WHAT THEIR POST PRODUCT WAS beyond belief!

Now, it is his job in the midst of that hurricane of demand, to establish. Now, he can err in numerous directions. One, he can start doing the duties of the division, that's the most fatal error. He can establish without regard to production. He can build an establishment far larger than the organization can support. In an effort to get people, he can offer far more pay than can be afforded. Economics, the economics of the organization therefore are in the hands of another conference called the Esto Conference. An FP is done by the Establishment Officers. It's done just according to the rules and therefore they know how much they have to establish.

40.) They wasted half their time producing things that were NOT the product of the post that NOBODY WANTED!

Now, it is a remarkable fact that an organization tries to spend all it makes. The first thing you ask, you will hear from some green organization executive who has just been put in high up in an organization, "Let's see, the organization will be making about five thousand dollars a week. Now, let's see, for five thousand dollars we can buy..." daaah. Only they never really spend all they make, they usually spend more than they make. And that is a terrible disestablishing factor in itself. The amount of production per unit of Sea Org orgs has gone from, hold your hat, five thousand dollars a week per staff member to about ninety eight. Dowwww. So they're mostly involved with dev-t. They're very busy, they're very exhausted.

41.) The worst producers of Dev-T in an ORGANIZATION are - now hold your hat - AUDITORS! They are trained as AUDITORS, so because they know Scientology AUDITING technology, they think they know Scientology. And you are dealing with somebody who "KNOWS he knows". And you try to get in ADMIN TECH on him and it has "nothing to do with his post". Now, because he is "such a good auditor", you graduate him up to an executive post in total ignorance of POLICY. By this, you are demanding the organization go TOTAL DEV-T, because ADMINISTRATION ITSELF IS A TECHNOLOGY QUITE SEPARATE FROM AUDITIONG TECHNOLOGY, AND IS JUST AS STANDARD. AND has just the same "horrible consequences" to the organization, or a division, when done WRONG, that AUDITING, misdone on a pc.

So, the economics of the organization and how it stays established is too close to the Establishment Officer, because it can establish for him not to have control of the amount of outgo in that organization. So, income is actually in the charge of the Product Officer and his deputy, and the outgo is in the charge of the Establishment Officer. An organization that spends more than sixty percent of what it makes has got rocks in its head anyhow, regardless of who gets the other forty, regardless of the tax people, to hell with the tax people. The tax people will do you in anyhow, why worry about it. They've made themselves sufficiently obnoxious and sufficiently bonkers that you just take those steps necessary to obfuscate them.

42.) So when you are ESTABLISHING something, you have to make it all MESH (fit) together, so that it PRODUCES. That is its purpose.

It doesn't matter whether your tax, you submit honest taxes or dishonest taxes or correct taxes or anything else, they'll suddenly tell you, "Well, all of that that you say was expense is really income because a new rule says that the worth of an organization is its debts plus its assets, so therefore these are really assets, so therefore you owe the organization a hundred and twenty-two thousand dollars, and so on." The Guardian's Office will get very cross with you on its finance lines because it has to do tax things and figure it all out some other way and, and so forth. But never let the fact that money will be taxed deter you from making a mint. That is not the right why.

43.) You will never have any MORALE unless the guy PRODUCES. Production IS the basis of MORALE.

If you have enough money and if you've made enough money, the only way St. Hill has gotten by, you can afford to spend huge sums to protect the huger sums that you have made. The crime is not to have made money. So never fall for the fact that we must not this money because it will be taxable. No, figure some way where it isn't and go right on making it. An organization has to be valuable enough to compensate management and to pay its management expenses. And the management of a Scientology organization is not actually at its ED or CO level. They manage that particular unit and organization, but if you figure out the amount of money invested in making it possible for that organization to exist, wow.

44.) So, your final test of whether or not the guy has been hatted is whether or not he produces a quality product of his post.

Boston, as brilliant a job as Boston is doing at this moment, was turning in only about fifteen percent of its organizational income. They have no idea how much it costs to put together that command team, not the faintest. About a quarter of a million dollar command team was sent to Boston. And they're going to pay it back at four thousand dollars a week for three months and say its compensated? Bull. But all due respect to its CO, he got the word instantly and the very next week, after I called this to his attention, why, thirty percent of its income went racing immediately to Central Command. So he got the word fast. That's still not enough, not enough to compensate for the trouble and upset, for the sweat that guys did on this ship and the sweat that auditors have done and right on down the line, and the flukey, fall on the head mistakes these guys have been made and then remedied and learned from and... It takes twenty-eight thousand casualties in a war to make a Major General. Well, their casualties were big enough. You bet. Right now, AOLA is going wzzzz, just because of that kind of stuff.

45.) Not whether he can "pass an exam. BUT if he CAN produce the product, he could pass the exam too. But not the reverse necessairily.

So, how do they compensate for it? Well, the compensation of management and so forth has to be adequate to retain management's interest. Management has to continue to be able to furnish the management's services, and they are not just silly orders one gets every now and then. They are the services of recruiting, of background, of selecting out. To get a command team together like that is the cream of maybe two, three hundred people. Well, what about the expenses of two or three hundred people? Do you see?

46.) So, by introducing the idea of "on the job" training, we don't get in conflict with the Product Officer. That makes a "Bridge" across the Dichotomy (See note # 1).

So, that an organization has to make money to be worthwhile to anybody. So therefore, you manage one of these organizations within an inch of its life, you really sweat it. And what do you know? If you sweat it hard enough, and you make it efficient enough and effective enough, why, it gets very prosperous itself while delivering rather fantastic sums up the line. You get how its done? The wrong way to approach it is, "Well, we need five thousand dollars a week so therefore we will make five thousand dollars a week except for the two or three thousand more that we forgot to count in." So the financial planning action plays directly against the Establishment Officer, plays directly.

47.) "Wrong Whys" are the bugbear of the Establishing Officer.

So, the solvency of the organization is shared, its income is the responsibility of its ED or CO and its outgo is the responsibility of the Establishment Officer. OK?

48.) They are also the bugbear of Establishing Officer.

Thank you.

49.) THAT IS THE FAILURE POINT OF ALL MANAGEMENT UNITS. THEY OPERATE ON "WRONG WHYS".

50.) THEY DO "OFF THE CUFF" management, not based on sound evaluation.

51.) From this, they introduce PROGRAMS INTO THE AREA WHICH ARE UNREAL, but which involve EVERYBODY in the organization and create enormous Dev-T.

52.) So, you can have a 2-page "program" busily being done in the org which has nothing to do with anything at the other end (like production or viability) because it's based on a "wrong why".

53.) But, you don't dare establish anything in that atmosphere because that "program" has total emergency priority.

54.) It's got to be done NOW and nobody has any time to be hatted - If that IS a wrong program BASED on a "wrong why", it will practically DESTROY THE ORGANIZATION.

55.) That means an STO has to be a BETTER evaluator and "why finder" than a Product Officer, who has to be the best in the world!

56.) Now the qualifications of an ESTO would be the ability to perform and take responsibility for the FUNCTIONS of each one of the departments of HCO. (He doesn't actually deliver the dispatches. That is about the only thing he doesn't do that is an HCO job.)

57.) He does not just duplicate HCO's work, however, but he is a "hip pocket" HCO (all HCO functions able to be done by one person). And that is the source of his authority.

58.) And, like a HCO he may start using "heavy ethics". Dept3 is his ultimate solution instead of Dept 1 (recruiting, posting, hatting. But this just comes from "bloody-mindedness" (or desperation on trying to make it "go right" against heavy counter effort). But "bloody-mindedness" itself comes from AN INABILITY TO FIND THE RIGHT WHY.

59.) All "bloody-mindedness" troughout an organization Ceases when the RIGHT WHY is discovered. It's remarkable. It's a sort of a 3RD DYNAMIK CASE GAIN for the whole org.

60.) "They got the RIGHT WHY" is like "erasing the right engram".

61.) In 1950, I was looking for "group auditing" because I was well aware of the fact that groups COULD get an engram, a MUTUAL engram.

62.) Since then, group auditing has been worked with and experimented with from time to time, even on a Continental level, in an effort to do something about this.

63.) And what do you know! We finally found out what it is. IT'S A WRONG WHY WHICH CAUSES A GROUP ENGRAM.

64.) And to 'DE-ENGRAMIZE' a group, all you have to do is a COMPLETE, COMPETENT, EVALUATION and find the RIGHT WHY and HANDLE IT CORRECTLY, and the group will "dis-emote" (or de-aberrate).

65.) In other words, DATA ANALYSIS IS THIRD DYNAMIC DE-ABERRATION.

66.) It is remarkable technology and is as effective on a group as running engrans and erasing chains is on a case.

67.) So therefore, the aberrations on the PLANET are simply built on the WRONG WHYS of yesterday!

68.) I'll give you a flagsant example of this in modern times that has a relationship to our activity.

69.) Psychairitry operates on a "wrong why" that gets it into terrible trouble and makes it extremly unpopular. It thinks there is a thing called "mental disease" or a physical germ or bug that does its work to make people "insane". I've read their whole basic books on this. Only as an afterthought or footnote do they even consider "enviornmental stress". To them, insanity is "physiological".

70.) Freud's "breakthough" was that it might have something to do with "mental states". But psychs at large have never admitted that this might be the case. So they have this thing called "mental health" which is in a MEDICAL field, run by DOCTORS.

71.) Dr. Thomas Szaz exposes the insanities and unworkability of institutional psychairitry in his books. But he source of this goes back about 450 years to the time of the Inquisition where DOCTORS WERE THE JUDGE OF WHETHER A PERSON'S "INSANITY" WAS PHYSICAL OR CAUSED BY "DEMONIAC POSSESSION". If physical, the person was under the doctor in an asylum. If "possessed" he was likely to be BURNED AT THE STAKE by the church, after torturing him on the rack of course.

72.) So the MEDICAL DOCTOR has been the HIDDEN SOURCE behind "deciding on insanity" for 450 years AND right on up into present time.

73.) And the "wrong why" of "INSANITY is a PHYSICAL disease" is STILL taught in the universities today.

74.) Szaz's book is called "The Manufacture of Madness" and exposes this quite well.

75.) And it's gotten so bad, that psychology departments still teach that people "think with their BRAINS"! I ran this out the other day as a series of 'locks'. You keep "blaming the prefrontal lobes of the brain" and it kind of makes them hurt. - (Laugh) (All they are is just some meat!)

77.) Now, it IS true in "paresis", which is the advanced stage of syphillis, that there are some wierd states. But then perhaps it is the hiddenness of the disease and the cut-off of any future procreation that would produce a mental response such as you get with that.

78.) There is no evidence of any kind whatsoever that there is anything called "a mental disease".

79.) So, the whole of psychairitry is based on a "wrong why", and the whole of civilization for 450 years has been tossed into dungeons and tortured and burned at the stake and electric schocked and prefrontal lobotomied and put in ice-packs and drugged and everything else. - Wrong why.

80.) Now we come along and we find the "right why", and start remedies of this sort of thing. The fact that somebody might be CURED of insanity, and that THEY MIGHT BE WRONG is what drove psychairitry down the spout.

82.) They had their theory - it DIDN'T WORK. We had our theory - it DID WORK. So they couldn't speak anymore with sincerity because we could catch them out. We missed their W/H.

83.) Now, in an org, if you work a whole series of programs and projects off of a "wrong why", the place will be frantically busy - with no result.

84.) So perhaps, the ESTO should side-check the Product Officers evaluation.

85.) Now you can get the funny situation where as an evaluation you DO have the RIGHT WHY and know all the data and know the eval is right - and yet it doesn't bring in good indicators on the org - BECAUSE IT IS OUTSIDE THE REALITY OF THE PEOPLE YOU ARE WORKING WITH. On a single-hand basis you CAN make it resolve because it IS the right why, but you don't get cooperation, at least at first, until the RESULTS start showing up from the handling.

86.) On the other hand, my eval on Establishment was greeted by VGIs all over the place and agreement that "HCOs had failed to establish". And when I released the ESTO program, I received a snowstorm of reports cheering and supporting it.

87.) It was like blowing a great area of aberration. It had been a great "mystery" we were living with (of why HCO's couldn't establish) until I found the "why". - (The UNDERESTIMATION of what it take to ESTABLISH in a Dev-T civilization and org.)

88.) Now many people think a "why" has to be a "who". Ex: Tells the story of New York org who fell apart by doing "witch hunts" looking for the "suppressive" among the executives. All kinds of "secret report" lines were set up which got 3P going and crashed the org. The execs blew and the org is still crashed and the engram is still there. A smart ESTO would go there and do a real evaluation, publish the "right why" and send it to all the old execs and staff and it might recover very fast.

89.) Part of that eval would have to be "why was the staff so weak that it went off-lines and sideways into secret report channels?" I don't know the answer. I know the Events but I don't know the WHY. The execs who blew were NOT poor producers, but they haven't come back yet, probably they are ARC Broken clear back to the beginning of track!

90.) It also doesn't have to be a "PR" why, it has to be the TRUTH. That is what blows charge all over the place.

91.) Staff members will develop more "PR per square inch" to explain why they are NOT producing than you ever heard of.

92.) That is why an ESTO must be an expert in PR AND the Data Series. (I recommend to you the FEBC Tape # 3 - "PR Becomes a Subject").

93.) This tech now is used by the ESTO, not the Org Officer or the Product Officers PR Man, at least internally. (The PR man and Div 6 can use it EXTERNALLY).

94.) The ESTO must be able to handle HE&R (Human Emotion & Reaction) fast, WITHOUT taking "sides" with the staff against the executive strata. He is himself, part of the executive strata. His authority as an Exec ESTO, comes from the chain of command.

95.) If the ESTO goes too "worker oriented", he will destroy the workers. If he goes too "martinet" (Status & authoritarian), he will destroy their confidence in him.

96.) So there is a "happy ground in-between" where he has got to be the "friend of the staff member".

97.) And the ESTO must not go into agreement with a staff member saying he's being "done in". There are channels in policy to use to handle any injustice or outness. He should be hatted to USE them. (Staff Member reports, Job-Endangerment chits, Illegal Order & Conditions policy, Vital Data Policy, Petition Policy, etc.)

98.) And if he was "standing in the wrong place at the wrong time", the ESTO has to teach him how to "stand in the right place at the right time".

99.) Don't ever take the side of a nattering staff member. The "Auditors Rights" are also part of an ESTO's kit. I recommend to you C/S Series # 1 "Auditors Rights" as the basic reactions of human beings as far as auditing is concerned. (Ex: You can handle a "sad effect" by having ARCBLD'2 pulled. You can handle "natter" by having MWH's pulled. You can get "service fac dramatizations" handled by running the Ser Fac, even on an OT 3. His list could have been incorrect or Grade IV wasn't run on all flows.)

100.) These people will generate Dev-T also. They DON?T DO their posts - they DRAMATIZE their "banks" or "case". So the basics of what is handled on the bridge and their symptoms are also part of an ESTOs kit.

101.) And, all of the Data Series and expertness in it, and all of the Org Series and HCO Series are all part of the tools and weapons the Establishing Officer can use.

102.) Now there is probably an "ESTO's Code", which hasn't been written because he is something NEW.

103.) Now I've tried to give you the width and breadth of the post and something of the importance of the post.

104.) If the ESTO does his job well, the org will NOT "Roller-Coaster", but will continue to EXPAND.

105.) At the time of expansion, the one thing he will forget to do is put on an ASSISTANT ESTO.

106.) When a Division gets 30, 40, 50 staff, he needs an STO assistant for sure. Because when the WHOLE ORG had 30, 40 staff, HCO was UNABLE to establish it. So he must remember that what brought the ESTO to view was that there were not enough people ESTABLISHING.

107.) And then when a division has 2000 people in it, there would have to be - I don't know the exact ratio, but say 10 to 1 - 200 Establishing Officers in it!

108.) If anyone questions the economic necessity of having ESTO's because of Tech Admin Ratios, etc. tell them this: As an org grows, it has a corrosive (worsening) effect on the EFFICIENCY of the individual staff member. In other words, an organization does not get more productive the more numerous it gets (in proportion to the individual rate of production).

Ex: 20 staff produce 20,000 units.

100 staff produce 65,000 units.

(This is WITHOUT ESTOs)

Ex: 20 staff produce 20,000 units.

90 staff + 10 ESTOs produce 100,000 units.

(This is WITH ESTOs)

109.) So an org can't afford NOT to have ESTOs! It is a WASTEFUL action to have a 30 man org WITHOUT some ESTOs.

110.) Let me give you an idea:

- A 3 man org should have one ESTO. (An auditor, a C/O and ESTO would be the three.) It would shortly become an organization of 5 or 6 because it HAS an ESTO. It will stay an org of 2 or 3 if not.

111.) You will have to "sell" the idea of ESTO's to the org, because many people do not understand it. Ex: An exec saying, "We don't need an ESTO because I had all the staff myself". But actually the staff are NOT hatted and I (LRH) get all the products out of the area!

Ex: An exec saying, "I don't want to be an ESTO, I want to be an O/O". He doesn't realize we have refined the system and that he wouldn't raise the income as an O/O but COULD help quadruple it as an ESTO.

112.) So, even in the case of a 3 man org, one should be an ESTO. And he would be the only one who was SINGLE HATTED. The O/O might be the Reg & D of P and everything else, and the auditor might hold hats in tech and Qual, but the ESTO would be single hatted.

113.) There is no such thing as a double-hatted ESTO.

114.) Now, lets take an org of 10 or 12. You wold have 3 ESTOs: An I/C ESTO, a Div 7, 1, 2 ESTO, a Div 3, 4, 5, 6 ESTO.

115.) If it has ESTOs in this proportion, it will shortly become VIABLE. It can't fail because it's HATTED. All these "hopes of decay" are gone! (Laugh)

116.) It will soon become an org of 25 or 30. You now start going for one per division. You put in the TEO & QEO. (Tech ESTO & Qual ESTO) By the time it gets about 50+ staff you should have an ESTO for every division.

117.) In a CLO, you would have a 7, 1, 2 ESTO, a 3, 5, 6 ESTO, and an Ops (4) ESTO. (Operations Bu.) (That Ops ESTO covers Data, Action, Ext Comm & Management Branches) With an ESTO I/C, that's 4 ESTOS.

118.) Now when an area gets BIT, like a Tech Div with 40 staff in it, you start putting more ASSISTANT ESTOs into the area to help the TEO.

119.) Now I've used the terms ESTABLISHMENT OFFICER and ESTABLISHING OFFICER interchangably. The post is ESTABLISHMENT OFFICER and the DUTY is ESTABLISHING.

120.) Any ESTO going on post must do a certain amount of identification of himself and his duties to those he will be ESTOing. If he is over Div 7, 1, 2 and doesn't do this, then the people in one division will think he's lazy because they only see him 1/3 of the time.

121.) We will be putting together the uniform and insignia of the Establishment Officer. It will become a special corps.

122.) There will be a Senior Exec ESTO here at Flag in the Management Bureau. One for SO orgs and one for Scientology Orgs. (Even may break it down into areas, like PAC, EUS, UK, EU, etc.)

123.) This will go in as a NETWORK of ESTOs, each having their opposite number at Flag.

124.) Now, what happens on Flag? It combines Bureaux and Divisions. Each has 2 sets of policy that apply. (HCOPL's and CBOs & FO's.) (Central Bureau Orders and Flag Orders.) The ESTO must realize that a Bureau is EXTERNAL and has EXTERNAL products, and a Division is INTERNAL or LOCAL.

125.) The there are my AIDES, who run these Bureaux which manage EXTERNAL ORGS ON POLICY with the overall strategy and tactics and lines given in CBOs and FOs.

126.) Thus they have to know POLICY AND CBOs & FOs.

127.) AND the duties of being an Aide, which are quite demanding and sometimes rough to confront.

128.) A Bureaux is something that operates another org. It handles and controls other 3rd Dynamics.

129.) It's also supposed to operate the org IMMEDIATELY UNDER IT (as management is always set up close to a working org so they maintain reality.) On Flag, this is the F.A.O. (Flag Admin Org), which handles FCCIs, and Public. (FCCI = Flag Case Completion Intensive)

130.) On Flag, it's the EXTERNAL Function that is IMPORTANT. EXTERNAL MANAGEMENT brings in currently 83% of the income of Flag.

INTERNAL ORGS bring in about 17%.

131.) And yet the internal orgs here are enormously manned up and the external bureau are terrifically undermanned!

132.) So what is the effectiveness of that External function? It will be as effective as it is HATTED and DOESN'T engage in DEV-T and as long as it is served well by the internal group. (Auditing, Training - FAO) (Food, Transport, Berthing, Security, Office Space, etc. - FSO or Flag Ship Org.)

133.) So, in an ORG, The Div Heads are a PRODUCT CONFERENCE.

In a Bureau, the Aides form an AIDES COUNCIL, which decides MANAGEMENT ACTIONS for External Orgs.

134.) So the AIDES COUNCIL does NOT engage in "running the ship", but can "monitor" it if not served well. Its attention must be kept EXTERNAL.

135.) Now, let me show you how important this is:

Each big Boom of Scientology orgs was when Flag was heavily on the lines managing. And when the internal noise and Dev-T ON Flag became too great, the attention would be pulled INTERNAL and a crash would occur on EXTERNAL lines. And that is the Subject of a very searching evaluation. You want to know the why of Booms and Depressions? Well, the more general "why" IS Dev-T and unhattedness, but the local Flag "why" is just as above.

136.) So in managing orgs, remember that a DISTRACTION of ATTENTION from EXTERNAL to INTERNAL can crash the stats. And that it is caused by Dev-T and Unhattedness, and is remedied by ESTOs.

137.) So, the HATTEDNESS AND ABSENCE OF DEV-T on Flag must be greater than any other org. It has to be so good, that the most efficient org on the planet would appear "totally Dev-T" in comparison to Flag.

138.) And that's why you ESTO trainees were summoned so urgently and why this ESTO program is going in so rapidly.

139.) Now YOU are being told to go on the job without being totally established as an ESTO. There is an FO which says "a S.O. Member can do ANYTHING". We expect a Sea Org Member to be able to do ANYTHING, so you ARE ESTO's, that's it.

140.) You will find this cycle repeats. You won't be able to AFFORD training ESTOs for 3 months full time in a course room. So you do "on the job training" on THEM.

141.) ESTO's will probably always be trained this way. You will have to catch up on your study of the materials I've mentioned WHILE you are ESTABLISHING.

142.) Look at what you must know:

- All the policies, functions, and operations of the DIVISION BUREAU, or ORG you are working on establishing.

- Plus all the policies, functions, and operations of the HCO division and everything written about it.

- Plus all the policies and functions that have been written about TECHNICAL application to the control and handling of Human Emotion & Reaction (HE&R).

143.) And that gives you the scope of what you have to know to do your job successfully.

144.) This talk today, was to INSTANT HAT you - on the scope, the "reason why", and the background, of your post.