An organization which would leave, an organization has so many registrar minutes to invest. And the registrar minutes it has to invest determines the number of sign ups which an organization has.

Now a group when it gets together, if it's got the idea of where it's going and what it is doing, and if it isn't all individuated one from the next and so on, can normally pull together so that it eventually will make it. For instance, in the Sea Org we've been crawling up toward a two year survival, and we're just making the grade. You see people around, they're not too well uniformed at the present moment, because there's no edge, there's no margin.

Interviews with the registrar, two hundred and eighty-four. Is somebody kidding? For one registrar? No, no, no. Figure it out for yourself. There's two hundred and eighty-four interviews during the week, then how many registrar minutes could there have been spent with each prospect? And you'll find out that it couldn't have been at all. They must have dusted off a chair in the waiting room, or something. Do you get how you figure out the coins? This is the internal economy of an organization, and these are the real factors of economy.

We'll eventually make this. We're in the teeth of not only a relentless enemy who, unfortunately we hear his, a death rattle amongst his midst every once in a while. But we're in a world which is very topsy-turvy economically and otherwise and so on, just buying survival. And it's a minimum survival of just two years without making a penny.

Now it's the HAS that makes them available to be spent. He's in charge of the personnel, he's in charge of the lines, and he's in charge of the spaces, so he also must be in charge of the potential coins that the organization has to spend. Not dollars, they're worthless. He's in charge of how many auditing hours the HGC can furnish, how many instructor minutes can be furnished, how many interviews done, how many typist minutes, which contributes directly to typist letters. You don't sit around all the time wondering about this letter stat. Get real. It's typist minutes. How long does it take a typist to type a letter? And you will immediately see exactly that you have a ceiling.

You can do that, you'll survive. And during that two years you can get busy. And first, I'll give you an idea of how rickety things can get. For some reason or other cash/bills were so bad over the world that I didn't expect Scientology organizations to survive, as of October 1969. And I don't know who was, who was saying what about which, but boy they certainly were, by anybody's criteria, insolvent. Their cash/bills ratio was crossed, they were in a horrible condition. It was a mess. Ghastly.

Now the letter registrar that is dictating the letters is that many registrar minutes, but that required a certain number of folder actions, and you can immediately determine how many letters out the organization can achieve. Now this is economy. I'm not now talking about this corny Hungarian stunt where they go around and tell Wilson, "Well all you got to do is borrow a hundred million, billion from the next international banker that comes." That's not economy, that's crap. We're talking about real things. We're talking about real things. We're talking about typist minutes. And you sit down, it's an elementary exercise in arithmetic.

Mary Sue originated, as part of the LRH programs, and didn't take full credit for it, FP number one, the LRH ED which is financial planning, program number one. And she put that out, and she rode that hard, and so on. And as of now the stats may not look all that great across the world and so forth, but those orgs are all solvent. She achieved that in seven or eight months of very hard slug. Back and forth, back and forth.

What's your letters out? Well if you're going to have to do letters out, and if somebody wants the letters out stat up there's going to have to be another typist. And then to keep her busy why there'll probably have to be two more typists to keep a letter registrar busy, so you're going to have to hire an entirely new team of two typists and a letter registrar. And then that's going to keep central files in a worse turmoil and so on, so we're probably going to have to put somebody on to central files as a liaison. "You want more letters out, I have to have four people." Central files clerk, additional central files clerk, additional letter registrar, and two additional typists to keep up with this one letter registrar. Now you got production. Now you got letters out. Now the degree that the HAS sees that their hats get put on, the quality of that production will get very good. They can bang out any old kind of a letter. We've received one of the funniest letters here, I; once in a while a staff member or somebody, an aide or something's name will appear of course on some old organizational CF or address file. And they will get, they will get a letter from this organization, see, in Cococomo or some place. And they quite often are quite good. Don't worry about that. But we received one one day that was hilarious. The letter said, "Dear blank, You are invited. Signed." Marvelous letter. Oh! Their quality could be improved. But with that short a letter I imagine their volume was pretty good.

And she was dealing with the cost of the organization in almost every case. And she found out that most organizations had a very unreal idea of how much they cost. They didn't really know how much they cost to run a week, so they didn't know how much money they had to make.

So anyway, the HAS can go at a slip shod basis and just hope that it all happens in some fashion, and sit there with a total cacophony, and mess going around in his vicinity, and the lines just all going so on. Listen, if it's enturbulated in an HCO then the HCO does not have control of the lines of the organization, obviously. So where would, should be the first point of calm in an organization? The calmest, most orderly place in the organization should be HCO. If HCO is woof woof and wow wow, and zom, zoo, and then the line's are going and there's mobs of people busting in and so on and etcetera, and... I won't give you much for the rest of the lines in the organization. They couldn't possibly be under control.

Now if we've achieved that, we will achieve the next step. Which is just this, that it is not good enough to make as much money as you need for the next week, you have to buy survival. And your survival is a minimum of a two year run without a penny ever walking in the front door. And that's a minimum. And that would get you over most political, other crises.

Now here's one for you. Here's a product/org officer datum. The product officer and the org officer separate right at the point of line. When the org officer zone is entered, it's at the point of line. The product officer who finds himself handling line is already into the province of the org officer. 'Cause the org officer, and essential part of organization, is the lines. A simple thing, like the dispatch that gets from here to there, and so on.

So let's look at this. Let's take a look at this various criteria. These are the hard facts of life. Now you're up against the hard facts of life. So how much establishment can you afford? Well you obviously cannot afford an establishment which doesn't produce.

Now a product officer of any sort whatsoever is running without lines. He doesn't have any lines. He doesn't have any lines at all. He's going around as basic observational actions mainly. But we get into a thing where a line; I'll differentiate this exactly; it's where a line has to be formed in the organization, where a line has to be formed, at that point and at that exact point an organizational line has to be handled or put in, you have now entered the province of the org officer.

And you obviously cannot afford people in the establishment which doesn't produce. And you obviously can't afford to harbor machinery which doesn't produce, and offices which have no service use. And these are the things you can't afford.

You could, out of self defense as a product officer, get somebody to do something that had to be done at that moment to go through. But the second that you have to transfer this person, or do something like that and so on, you're into the province of the org officer. You often find yourself in that province in production.

There was a trick that Johannesburg, in its early forming days when it was under Jack Parkhouse, used to pull, which was, I was horrified at, is they balanced their books by firing staff members. So that as the stat went up and down, they would fire staff members and take on staff members in order to balance their books. Well now that's the wrong way to do this. The way you do is hat, train and get better on post, the staff members you have.

Now the basic lines of the organization are in the control of the HAS. And those lines all have to be neat, and so on. So, it is nothing for a product officer to find something out with the lines. This is the main thing he finds out. So therefore, an org officer ought to do dummy runs. And there's two types of dummy runs. There's just plain dummy runs, you just go through the organization's public lines one way or the other, try to get hired or something like this. Or try to take advantage of this new free offer. And go into the proper point, and so forth, and just try to get it. You sometimes find yourself in practically a fist fight.

Now a manager always has the responsibility of providing work for his workers. And that is something that somebody had better learn in Russia. Just that. A manager has a responsibility. You find yourself, it works two ways. It's how much establishment, well it's how much production. Now we're back to resources. What resources does the HAS have that can be utilized by production?

Well what you find out is passed to the HAS. That's passed to the HAS as a direct signal that his lines have to be established at this point. The other type of dummy run is a bull bait. And you take a whole bunch of questions, take a whole bunch of questions which the public would be prone to ask, and you'll be surprised how funny some of the questions are. And you just dream up these questions. "Well I have a check here on the Farmer's Bank of De Moines, and it is for two thousand dollars. And I owe you two hundred and sixty dollars, so if you could give me the change why then I would be happy to buy the fuff fuff." And so forth, and see what your cashier does. See what he says. See if he handles it at all. And you find out the bulk of the cashiers just sort of say, "Get out, get out! Yah!" That's not the proper public response.

Now you think, boy you must be in the airy(c)fairy world and so forth, and that it must be terribly difficult and so forth. No it isn't terribly difficult, it's very, very simple. Our average income for the last three months was X, therefore our expenditure and establishment for the next three months must be one half X, and our income must be 2X. And you're immediately at a quarter. And you target it and try to strive for it.

And therefore, your bull bait, your bull bait dummy runs pay off, because the bull bait dummy run tests the personnel. Just the plain dummy run just tests the line. Does the line exist? Even if you say things to the personnel, does the line exist? But it takes a bull bait dummy run to test the personnel.

So, it's not very difficult to work out. You will find when you first face an organization that it's inefficient in the extreme, and you're not the hard hearted whip master that says immediately, "This many must go because we don't have," the General Motors answer. See? "We're closing five plants now, ha ha, ha ha, ha ha." Idiots. I use the word advisedly. Actually it's an insult to idiots. That's about the lousiest management that anybody ever heard of. Look, they've got that much establishment. Now what; now let's get it worked in reverse. What responsibility does this hand to the product officer of that org? He's got to get it consumed. He's got to get his product consumed, not reduced. You don't reduce production, you increase consumption.

So, the organizing officer in his spare time could very easily throw in plain dummy runs and bull bait dummy runs and so forth, and he'll furnish a lot of the material for the HAS. So if the HAS were on the ball he'd run his own dummy runs, wouldn't he? It's actually an I & R function to do a dummy run. Form one, dummy runs, that sort of thing.

Every time you find yourself thinking in terms of, "Well we've got too many auditors and so forth now, and so on, and therefore," and so on. No, you've got resources. Resources have been furnished to you, you have to quick like a bunny figure out where's this production going to go? So it's one thing just to produce, and it's another thing to produce with some place to put your production. So when you're dealing with commodity of auditing hours it doesn't seem to occupy much storage space, but actually you have a total vacuum. What are you going to do with this? We got twelve auditors, and we don't have any more work than for six auditors. Wow! Wow! We're not going to lay off six auditors, we're going to get the consumption increased for those idle auditors. And that is a responsibility of managing. And a good manager, and a good production officer, and a good organizer will

So, is there an establishment there is all the organization, or the organizing officer's trying to find out. Is there an establishment there? Now the HAS of course is being fixed firmly with the responsibility for putting the establishment there. And you're going to get all kinds of vagaries, and he's going to get in all kinds of trouble, and he's going to get in all kinds of arguments. And he's also going to get all kinds of wins, because one of the arguments he's going to get immediately is, "We can't afford it."

balance these factors out.

As a matter of fact, in Washington at one time there was only one thing that was ever came out of any finance lines and so forth, "We don't have any money." And they had found this as the pat pattern answer to anything that was brought up by anybody, and they found this always worked. And this was how, not to give any..., I forget who was, who was handling money there at that time, but it was just that. And I kept hearing this coming back on the lines.

Now you go down to the dist division, or you go over to promotion somehow or another, and you're going to increase that, and that is why PR is so very, very, very important. You've got to know reliably what people want. You've got to estimate what they want and predict what they want. Interesting?

"We don't have any money." It was an errant lie. I think at that particular time for Washington we had a fabulous reserve, and we were running along great, the staff was well paid and everything of the sort, and, "We don't have any money". Well it was no R because it was a lie, but this was how it could never do anything. So that is the wrong answer, we don't have any money. But he will run into this, he will run into inferences like this. So he should always prove his point. And the way he proves his point, to show the coins he has. These are the coins which we have. And the coins are the volume, potential volume of production per department, for the final product of the department. Not necessarily the final valuable product of the org. But these are the coins which I am furnishing, and we should be getting so and so, and if we're not then there's something wrong some place else not me... Somebody is neglecting to bring about a demand for consumption. The created want isn't there. And if I can furnish one hundred and fifty coins called auditing hours per week in the HGC, and I'm not being asked to furnish any more, then there is something wrong. Therefore sales and delivery must be very out.

Now you don't think we've ever done this. Oh boy, yes we have. What do people want? Well they want new tech. But the answer to wanting new tech is the old tech hasn't been produced. And they don't necessarily want new tech at all, they want tech. And they hope that the new tech will produce more than the old tech. The factor missing there is quality. Quality of tech.

Now it isn't up to him to manage the thing, it's up to him to hat things. It's up to the production officer to say what can be produced, and to bring about a consumption of the product.

We've got somebody walking around this ship right now being talked to by the master at arms and other people, and so forth. Trouble with her is, is she never had an engram run and erased. Tough problem. Really tough. We got a thirteen year old auditor that would probably run rings around any HDC in the world. She could sit there and run an engram out, except nobody's ever gotten her to an auditing session by an auditor who would run an engram out. Most of your basic problems of production are never connecting up, see, never connecting up the guy who can do it and the guy who wants it. It's simply that, see?

So, by the way, that's why you will eventually have to have a PR man as a staff member of the, see it's a PR/advertising type liaison as part of the production officer. I'm just neglecting to mention, it's part of that person's duties to bring about actions which increase consumption. He'd create want, and so on. So a production man couldn't actually operate too long without PR assistance, whether he was doing it himself as I used to do, or whether it was being done for him. That's why he has a PR man.

Now you try to connect up a guy who can't do it to a guy who wants it, and you're immediately going to have production problems, boy. You're going to have the fullest qual you ever heard of.

The rest of it is, is he's handling human emotion and reaction inside the organization, but remember he has a public outside. And that public outside is actually of a senior importance to the public opinion inside. And he's got to test that, and he would know what tone scale to launch his campaigns and his ads at. And he could collect old successful campaigns that were successful, and where the people came from that bought services some earlier time, and all of this sort of thing can be done. So therefore, it puts a production man in charge of consumption to know this.

Very funny, recently we were talking about stalled cases and difficulties, and so forth. The failure of quals, over a period of time, was the failure to use the primary tool of qual. And I was, just investigated this about seventy; oh I don't know how long ago it was. Fifty days ago. Now you know that the primary tool of qual is a green form. And the green form was turned out for qual. Now a survey of the situation shows that the use of the green form was used like this. They'd start in at number one on the green form, go to number two on the green form, go to number three on the green form. By that time they're into, they're just into rudiments, see? And then you get an F/N on the rudiments. You try to go any deeper into the green form, and for some peculiar reason or another, why the TA will go up or something like that will happen. The net result is that only the first page and a tiny margin of the second page of the green form have ever been used. And if you look in all of the stuff; now this doesn't seem to you to be a production/consumption problem, but it is. How do we get green forms consumed? Actually the problem was how do we crack some of these cases. I think I was cracking cases like this that walk up, you know, and they seem to me awful bad off cases. Boy!

But nevertheless, it's the HAS's responsibility to furnish the coins which will meet that consumption. For instance, he could actually go down department after department, and demonstrate how many hours of production, how many production coins that is to say, how many auditing hours, how many instructor hours, how many this and that, how many student hours. Pardon me, instructor minutes, student hours, how many bulk mail mailings, how many letters out, how many this and so forth. And he could cast up the immediate stat of the organization.

So, a type of assessment was adapted to this which all of a sudden gave us back the green form in its totality. It is do a green form once through, take the best read. Bang, you'll crack the case every time, if the auditor can read the meter. If he then runs the process he's supposed to run for that. Consumption of green forms.

Now an organization that just runs accidentally on stats is not being run. That organization is running the person. It's running the HAS. And of course his area'll be very confused.

You could actually, on terms of consumption; let's look at this now. Alright, here's a little technical breakthrough. It isn't much of a; it's a breakthrough just to the degree that this 1965 development, or I think it was even before that, is suddenly used. Now we're going to use it. Now do you get this? Do you get this? You've had it all this time. All of a sudden we look this thing over, how are we going to use this? And that is most of your big ideas that you get in production, is something you already got, and you're going to get the idea of how are we going to use this? You got it? So you look around and you will always find resources of this character. So you start a hell of a campaign. Start a hell of a campaign. Free green form. I'm just giving you an idea. Free green form. Only green form wasn't popular. People got awful tired of these green forms because they never had a green form. People began to shudder when you said green form. So, it's a free case analysis. A case cracking analysis. Dream it up any way you want to. "Anybody who appears at the organization between four and six in the afternoon and so forth will be given a case cracking analysis. Present this card."

He should, and could, carry a shadow line on a graph, which would tell him immediately who to hat. He knows what the well done auditing hours of the organization should be, because he has that many auditor hours to expend. So, the very well done auditing hours and so forth, or well done auditing hours ought to be the number he is furnishing. It's very simple, he's put the coin there to be spent, has it been spent?

Now if you're going to do that, somebody's going to have to run like hell to put the lines in. So that is why your org officer is not your establishment officer. Because the establishment is hard enough to maintain with all these wild hats running around in it, without also having an org officer and a product officer who are getting ideas. So you're going to have to put in some temporary line. It's just a temporary line. You're going to have to beef it up more.

Alright, so the well done auditing hours are twenty-five, and he has potentially got himself a hundred and fifty well done auditing hours, it shows up on the stat at once, the stat of the organization. So he knows it's sour. So he knows he hasn't got an establishment, doesn't he? He's got a flub.

So the org officer of the organization always to ask the problem of, "How are we going to get this temporary line in in order to handle this new consumption of product? So a consumption of product here is vitally necessary. Now how are we going to get these people received?"

So who does he hat? What does he find? Of course it's quite obvious what he'd find in that particular case, he'd find a registrar. And he would then find a tech sec. He would also look at how many were done and how many were well done, and he finds out that eighty were done, a hundred and fifty could have been done. Eighty were done, and twenty-five were very well done. And out of those figures he knows who to hat, who to demote, who to promote, and what type of personnel he's got to have at once. So he is in control of the establishment, isn't he?

They walk in with this card, they show this card to reception. Well does reception leave them there for two hours? No, now somebody's got to have that reception, and this person doesn't know his way around through the organization, so somebody's got to escort him down to this terminal, and then there's got to be an auditor who sits there, and that auditor has to know how to do a once through assessment on the thing. And then there's got to be some PR person perhaps there to say how great that is. But then that wouldn't give you that somebody ought to lead him back to the registrar about this time. So the registrar gives him his results. Well if a registrar gives him results, the registrar can say, "Buh! It'll only take five hours to handle this. Twenty(c)five hours to handle this." It doesn't much matter what the registrar says. Or the registrar says, "Well that actually, that actually carries along with it the case cracking intensive, which is of no specified number of hours at all, but it just costs X dollars. You're not under any obligation to pay it. Feel better now don't you? Very good. That's fine. Oh you do, you want that. Oh, well alright. Here, sign on the dotted line and so forth, and go on down the line and pay the cashier and so on. I'm very glad you are. Thank you." And you've got to have that line in.

So, for every department he could have a stat. And that stat would tell him exactly how many letters could be gotten out, how many this could be done, how many that could be done, how many students could be handled. He could map the whole establishment, the whole establishment's stat ceiling, and that you could call a stat ceiling. That stat ceiling per department would give you exactly what the potential of the establishment was. If it was not running close to that potential then it was running inefficiently, and there was something wrong with the production officer or the org officer. Now let's say nine tenths of these stats run great and the other stat doesn't. Well this would be a matter of a conference on that point, wouldn't it?

If you haven't got that line in, all the ideas that the production officer gets to increase consumption and get the six auditors busy will fail. We had the most marvelous, marvelous caper one time, it was called a hospital caper. And we had volunteer auditors all over the place, and a certain number of hours of the day they were going into hospitals and seeing patients, and pepping them up and patting them on the back and so forth, and giving them little cards. Marvelous! The person in charge of the project broke it right in half and crashed the project right down through the middle, in spite of the hard work put in by these people for weeks. You know how he did it? There was no reception sitting at the other end of the phone number these people were being given, and the office he had had and was rented, was never manned. They couldn't reach it by phone, they couldn't reach it by feet. So the org officer is responsible to make sure that these lines exist.

So, by stat ceiling you could measure your establishment. And if you haven't measured your establishment by stat ceiling as an HAS, then you couldn't possibly have any idea of who was doing what with this car. Now it's one thing to put a bus there, and it's another thing to get it driven. And surprise, surprise, he could still handle, he can still hire bus drivers.

Now the HAS would eventually incorporate this kind of thing into his organization. Now he's busily running an organization. So therefore, an HAS has to have HCO expediters who can then put together immediate types of lines and set ups to handle special traffic. They usually send them into file and CF, when years ago they should have had two file clerks in CF. And they're usually used, expediters, to put together what HCO should have long since had as establishment.

Now the actual potential and capability of a production officer would be how many of those coins are spent. There's the stat ceiling, how close is the stat to the stat ceiling? And that is the effectiveness of the divisional production officer, the divisional secretary, or the production officer of the org. What's the stat ceiling?

Now an HCO expediter is somebody who goes down and gets in the special line and sits in as a special escort who handles the special action, so that you don't have to remove people from key posts in order to fit out these wild ideas. Otherwise, the HCOAS is going to get very impatient with you. "What, you need another receptionist? Well, we'll take one of the letter reg typists. Yeah."

Now people could get right puzzled with me when I keep crashing in to tech services and saying, "Hey hey hey, hey, get this point on," and then not beef it up or something like this. See, something wrong here, something's wrong. Looking around, looking around,

Now he should have some HCO expediters, and if those people are not totally employed all the time then they ought to be studying. So any slack time they have, any slack time they have during the day, then they ought to be studying. If he's going to have any full time people on course who are going to something or other something or other, and he doesn't think he can afford full time people in course, why'd he make them HCO expediters? And then not send them off to fix up a file someplace, but use them, put in special traffic lines.

looking around, looking around. Well that's because it hasn't approached the same number of hours as are available. You look down, you find out we have five fully qualified auditors on full time training. Uh uh uh uh uh! Uh! Five fully qualified auditors on full time, ahh! We find that we will be needing a whole bunch of HDCs who are OT 3. But, I find all the HDCs being trained as Class VIs, and are not spending their time on advanced courses. Uhh! You get the idea? So these are the criteria by which you operate.

Now an HCOAS therefore has to maintain the establishment. The establishment is pretty well established by org board. That org board is not an arbitrary which simply sets up, there is, actually was production oriented. And the end of every one of those departments had a product. When we state that thing loud and

Now if you've got a stat ceiling, and you've got your stats, no matter how big or how small the organization is, what have you got? You got the effectiveness of the HAS, the effectiveness of the product officer, and the effectiveness of the org officer. The effectiveness of the HAS is in question only to the degree that he's hatted people. What's his hatting and training? What was his recruiting? That's how that brings his in question. The utilization of that time, that brings in the product officer. How many products are turning off of this line?

clear, and start to work it all backwards, we wind up with the same '67 org board we had in the past. What do you know? Somebody must have been bright someplace.

There's things like completions. Completion gets into the airy-fairy land. Now the product officer who can turn out more completions per unit of auditing time without going quicky, he's a good product officer. "How many of these courses can we finish up?" Right now I could do a horrible thing as a product officer, particularly here. There's a lot of people who have come to the ship and so on, who have an awful lot of incomplete cycles in terms of courses. All you'd have to do is survey how many courses they had, and then survey how close they were to the end of which. Which course were they closest to the end of? Which grade or which this or which that or which other thing, in other words you do a full, full survey. So you had all the courses, all the grades, everything else. Do this, sit down as a production officer, shoot his completion stat by simply making everybody finish up that one that was closest to the end on the courses. Get all of these, all of these, all finished up, see? Brrr! You would have actually an instructor minute situation, which was minimal, and you would have, you would have this fantastic completion stat.

Anyhow, so he's actually organizing backwards, even though he's organizing, he thinks, front-wards. Because he's got a canned org board that he puts there, and bang, that org board is spot on is no reason that makes him the first action. He builds that org board backwards. How does he fill it? He fills it up to the degree that it is demanded by production. So he expands his establishment by increasing the posting of his existing org board. And he too must have resources. And I've given you one of his pools of resources.

Now a very dirty trick would be to move off then and put another product officer on the job and say, "You see?" And then for years later say, "Well, when I was product officer of that org..." Actually he would have done well, because those people should have completed those things. But you can always, you can always find some products lying around. The only point I'm making.

Now very often, as you will find in the personnel series, you have personnel people who think each division, particularly the better running divisions, are personnel pools. And if you've ever seen screams go up in all directions, it's missionairing in the Sea Org. This is a horrible chapter of something or other from the viewpoint of people who are trying to hold the organization there and keep it going, because missionaire has priority. And this makes a mad mess. One day you've got a captain, the next day you haven't. You know? I mean it's that kind of thing, it's that ghastly. And don't think it doesn't just rip everything to ribbons. But it is necessary to do so, because production in the Sea Org comes first. Production happens to be Scientology around the world, and it is now expanding to be Scientology around the world. So, a missionaire has to go, has to go, has to go. Well that's that. Alright, the rest of us will cope, one way or the other.

Now therefore, there is a difference between the product officer and the HAS. The HAS has got simply the facility there to produce the product. He's just got the facility to produce the product.

Now actually it puts too heavy a burden on, in the Sear Org, the division is the third mate, the HCO. Now it puts too heavy a burden on him, and so on. But, he should get clever. He should get clever. There are some old FOs that talk about a missionaire unit. So he's got a second pool, a second pool he has. So he's got a missionaire unit.

By his hatting he can handle the control, that is he can control the quality of it to some slight degree. To a considerable degree actually. But actually it's the product officer who can play ducks and drakes with this line up, and he could either make it look awful or he can make it look terrific. And it would be the product officer who, to a marked degree, monitored the size of the establishment. You got that?

Now in view of the fact there's a heavy demand on highly trained personnel, your missionaire unit spend most of its time at home on guard duty and study. And therefore you have very highly trained people, and you can circulate people who are successful missionaires and also holding executive posts, or less exhaulted posts, you can circulate them into the missionaire unit and so on, and take people in the missionaire unit and put them on up. There are ways and means by which you can shift this sort of thing around. But it gives the personnel pool.

If he's going to have much of an establishment he's going to have to do an awful lot of PR, advertising, survey type actions. He's going to have to really know, boy. And he's have to have his, have to have that special programs units over there pocketa, pocketa, pocketa, pocketa on special project pilots, pilots, pilots, pilots, pilots, pilots. Let's see if we can't; why don't you approach some old ladies? I understand that there is a hotel outside the city which has a lot of resident, let's put an auditor in there. Sounds mad, see? It doesn't matter. Out of all of this all of a sudden one pays off. The total cost of running all these special programs is peanuts, and the income of one of them is a half a million bucks. Do you see? Well that takes care of all the rest of them.

So the main problem of an HAS is personnel pools, because his main flub, exclamation point, is destroying whatever organization has been put there.

It's, the product officer doesn't keep shooting the whole organization into, and every time I release a piece of tech, organizations unfortunately try to shoot the whole of their production line into this new action. I could shoot them. I could just shoot them in cold blood. They keep doing it. Why do they do it? I don't know. I think it's a peculiarity, which also shows itself in some FEBC student applicant, some time or another will move aboard the ship, and he will say, "It's a fascinating bulletin, even though it is several years old." He wouldn't say it if he knew what hilarity it produces. The rebuttal to the thing is, is the law of gravity has gone out because it was discovered in 1649. You get the point I'm making?

Alright, somebody is working, working, working, working, working, to put a qual there. And they work hard and they get the people trained in and grooved in, and then next thing you know HCO regards qual as a personnel pool. Or there's another thing, because qual

Now even with all this product system and so forth, we haven't antiquated the org board. What org board did we fall back to? We fall back to the best production org board we had, which was '67. You won't find there's very much violated along the line. We're putting the cream on top of this cake now. Alright, I'm not trying to make fun of FEBCs, don't look so contrite. But it is a nuttiness, and I'm just talking about it because it is a nuttiness.

can be doubled in brass with tech in an organization, you get the disgraceful action of, "We've got a backlog now, so I have all the qual auditors and so forth. They're going to have to audit on the tech lines." Oh boy, that's nuts! But it says the person in charge of HCO has not allowed for an ebb and flow of traffic, and does not have any auditor pool. So who does it say is out? The HAS. He did not predict. So he's operating on no resources.

Yesterday's process we can't use anymore, because we've got this process. I'm sitting here right now playing a mean trick, just because of this. A mean, vicious, snarling trick. Actually I'm not. The truth of the matter is we're handling such dynamite in this new rundown which we have, that it actually couldn't go into orgs that would flub. Any; we had somebody over list the other day and knocked a case, just a little tiny flub like that. Poof! Straightened it all out yeah, but ooh.

Now what are his basic resources? His basic resources, you say of treasury or money. No, that's also the HASs resources. People, hatted people, trained people, very valuable people, people of all sorts and descriptions, not just this blank file filled up with a body. I told you the other day, you can find all the bodies you want in a mortuary.

No, I'm not necessarily, although it will look so, determined that they will use what they have at this time. The real reason is because it's got to be a very, very groovy org indeed before they can handle this, otherwise it'd just blow them right off the face of the earth.

So, he must be running some kind of an HCO which is a poverty HCO, because he doesn't have the resources that you would expect from an HCO. So he has to unmock what he builds. That's kind of crazy. A fellow builds a house, then to build a second house he has to take all the timbers out of the first house to build the second house. And then he takes out the... It's nuts. And somebody comes along one day and says, "Say, simple Simon, why don't you have a pile of spare lumber?" "Oh I couldn't do that, I couldn't get that through FP. Yeah well, they can't afford that." Oh I wouldn't say can't afford that. If I were an HAS at that point I would shake my head at every FP meeting, sadly, while looking at the production officer. Sigh. I wouldn't ever say anything.

So if you look into this, if you look into this with care you will find out that the product officer will make all of his cash out of yesterday's development. And there's where he gets his overages.

Any time anybody asked me for anything I would say, "When you fellows get around to producing something you can come back and talk to me. Why don't you produce something with what you've got?" would be my standard attitude as an HAS. "I must have, instantly and at once, twenty spares." "Twenty spare what?" "Twenty spare staff members." "Yeah, what for?" "For having spares." "Yeah I know, but there's only fifteen staff members in the org." I'd say, "I know. I'm tired of transferring fifteen transfers every week. You must be running a thirty-five man org. That must be what's wrong with this place, that's the why. You're trying to run a thirty-five man org with fifteen men. And yet we don't seem to have enough money here to deal with, not making very much money. All seems to be very sad. I wonder if we shouldn't train up a production officer?" See, this kind of thing, you know? It could get dirty after a while.

Now I told you the trick of making somebody finish up the course. He could really shoot the moon. And he sends somebody out on his PR line, or the person who is serving PR in the org and so forth, "Will you please go around and survey how many courses people have started that they have not done. Now we're going to get all those cats back in, and we're going to finish off their courses." "Yeah, but you can't get any money for that." Oh yes you can. You've got your nerve making anybody given a course; I'll show you a product officer goof. There was no product officer there, but this is a goof to end all goofs. The eight course got longer and longer and longer, and longer, and finally I think the person has to be an eight, the more newly graduated eights are all ninety years old. Well do you know what's contained in that package? This is wasting the facilities of an organization now.

But when production is not adequate for the establishment, then the establishment goes poor in all of its resources. And its main resources of course are trained staff members, willing auditors who want to come on staff. It includes the estate being coaxed into looking around and see if there aren't any cheap empty office building around here. It's looking around and seeing whether or not there aren't some thisas and thatas, and how can we get a bunch of file cabinets. The wrong way to go about it is to present to FP eight thousand, six hundred and fifty-five dollars for three new steel desks for the product officer, org officer and HAS. That's not quite the way to go about it.

So the HAS puts them there. Now they can be wasted by the product officer, or they can be made capital out of by the product officer. So I'm just showing you the relationship between the two. The HAS, he's got the coins there to spend, how do they get spent?

The fellow is now pulling the incredible. And the incredible is, is trying to spend money you don't got. And it can be done in this society, to show you how clever the society is. They're always willing for you to spend money you don't have. So you have to safeguard that, and we are ourselves and we are solvent, and we do exist and we do still own our souls, and we are not in the pockets of the international bankers, solely because we make everything make its own way. And that is the basic action that; I have heard actually that some members of orgs wonder why I don't pay them better. It will be somebody in Keokuk or Cococomo, see? Why I don't pay them better. I don't know, I'm not even in charge of their board of directors.

Let me show you this goof. There was an eight course. It took us three weeks to teach the eight course. We taught it with ferocity, we shouldn't have. Probably made engrams all over the course. I know it's been successful ever since. "Well I was thrown overboard five times on the Royal Scotsman." You can hear it now, it's actually the badge of the eight. In a huge survey it was only mentioned twice, through eights and so forth, and one of them had distracted him so he couldn't pay any attention to the course. But, all due respect to that. You'll have to cut all that out 'cause it's very bad PR ever to bring up a flap, you know.

The answer to the question of how they aren't; see they're asking the wrong question. The answer to the question is, why don't they wear their hat and do their job in a quantity so that eventually the org will get more money, and they can be paid more? See, elementary. The answer to the question is right on their skull.

The main strength and awkwardness of this is, we had a course. Why didn't people go on teaching the course? Oh no. They added every bulletin that came out afterwards to the eight. Every bulletin, every bulletin. Yeah, the eight course checksheet got bigger and bigger and fatter and fatter. They were still selling it for the same amount of money. Now what would a production officer's reaction to this be? Student hours, instructor minutes, he was throwing them away. Throwing away student hours and instructor minutes. He was also throwing away cash.

Now this is then the ecology that economic, dog eat dog framework, or dogs eat cats and cats eat rats or something, the ecology if this universe in which we are dealing. And the ecology of the universe is that staff members who produce get paid, HASs that put an establishment there that is hatted and trained to function and so forth, has a heavy income potential, and a production officer who is able to spot production and get the production out of that line, and who is able to persuade consumption, persuade those people he has in PR, promotion, distribution, wherever he has. If he can persuade consumption to occur as he raises his production, why he is all set. And people will just get paid more and more money, and the next thing you know a staff member is declasse who doesn't drive up in a Rolls Royce. But you have to think in that way in order to bring about that result.

Now let's add to it this one. Everybody who comes from an SHSBC taught in this, has to be retrained, so we retrain them before we teach the eight course. And then the eight course of course includes all the bulletins which have been issued in the line, from '68 'til '70. Geezus Christ! Viability goes out the window at this point. Why?

Now in view of the fact that we aren't aiming for Rolls Royces, but we have an entirely different target, therefore it goes into the field of volume and quality. Viability will pretty well take care of itself, if your volume and quality is adequate. So your first point that you always; now let me give you a letter reg sequence here. This is for an HAS, what would he be persuaded to do? He could instant hat letter reges. That's going to give you volume. He mini hats them, that gives you some quality. He really hats them, that gives you viability. The first one is volume. And you as a manager always demand first and foremost volume as your first demand. And then when you've got your volume you demand as your second action, quality of the volume. And then your third action you've got to calculate and so forth, as viability.

The price of the eight course is now covering, in terms of instructor minutes, it's now covering an SHSBC, an eight course, and all the stuff since. And do you know what the course line up really is? It should be an SHSBC retread, for which that SH should be charged, full price by the giving org. Auditor comes in, class VI, can't audit, that's it. Retread. We'll run a retread course, we'll teach you how to audit, that's it. The bill immediately for an SHSBC goes to that SH. And boy I'll tell you in very short order they will cease to give flubby SHSBC courses, right?

Now if you don't calculate it somewhat backwards, and figure out what your viability prediction is, you also will have an awful time of it. But right now we have an organizational runaway pattern that is fantastic. It's AOLA, and in just a few successive weeks they have a vaulting height. Their peaks, although they sink from the peaks, the peaks on those weeks give you a curve that says within about seven or eight weeks something on the order of about fifty thousand, within two or three months it says something like about eighty thousand, and certainly within five months it will be hitting a hundred thousand. I wonder what the third mate at AOLA is doing, what he's thinking, what he's worrying about? He doesn't think it's any part of his hat. And, if he doesn't wear that as his hat and take that predicted vaulting, it tells you that the organization reached its make/break point, as far as staff members were concerned, certainly at about forty thousand. And that put that whole staff under considerable strain at about that, because they didn't have quite all of those posts covered, and they didn't have this and they didn't have that, and they really had to get down and sweat to keep the lines running and to keep their quality up. Well that would be a breakdown of the HAS.

Alright, the eight course is three weeks long. Guy comes in, goes home, he's an eight. Now it is something to be an eight. If you don't believe it, try to work with a six on eight technology, who isn't an eight. Or try to work with a person of upper technology above eight, who doesn't know the eight technology. Uagh! Horrible! So, the guy really never even had a chance to become an eight, see, because he was so interested in coming here. Actually there's an auditor band which starts just before the exteriorization run down, and runs up to about the middle of 1970, which is a nine. And believe me, there's plenty there. There's plenty there, there's plenty to know about that stuff. And starting then, for sure, we have had to specially train stellar eights and guys who were nine, had to specially train these guys to make them tens. So it isn't anybody trying to merchandise something. You want to know why somebody can't do, give a class IV an exteriorization run down. Well... They just make a mess of it. Exteriorization run down should be done only by nines.

So it tells you that at AOLA, within five months they have to have double their staff, double the trained auditors they have, double the space they have, and look, it takes months to get people recruited, trained and so forth. Who is sweating on it? And I'll tell you at this moment there isn't anybody worrying about it but me. Do you see what the prediction is?

There's a bulletin out which brings this about, but I haven't seen the courses emerge yet. Every moment those courses are not publicized, every moment that those courses are not in at any AO, any moment, every second that they're not in is costing the real coins of the organization, which is student hours. Do you know that other organizations sending in somebody to an organization cannot afford to send that person months and months and months. Can't. Afford to send them for three weeks. The fee is not the totality of it, it's the loss of his services to the organization. That's the real thing that is lost. And the fee for the course is not it, and even in terms of money. It's keeping the guy there during that long period of time that's expensive. So your viability goes out the roof. The second that a production officer takes his finger off his number and says, "We are not selling something at its proper price," the price in his terms being what is the coin the organization is paying. Then all of a sudden what happens? Then the organizations, the little organizations can't send anybody to the course to take an eight course, because he won't come home until he's ninety-nine. Do you see? So that's, that's bad production thinking. Alright, it's being changed right this minute, but I'm giving you various instances.

So, that is what an HAS has to do, he has to think in terms of. And there isn't any HAS thinking in those terms. Actually there's been no hat written in these terms, because this is your product/org officer system, but this is the hat so there's no condemnation of that. But that is the terms of that, because he has to furnish the establishment. And if he has to furnish the establishment, the wrong time to furnish the establishment is after it's hit. Three times what the organization can possibly handle, and when it's hit that, to do the organization and establishing that you should have done five months ago. Oh god, this behind hand action is pretty horrible.

You could make a fortune right now. A guy blows from a Dianetics course. I turned out a little project, didn't even think about it very long. But it would have been a winner. That organization which did it, I don't know if I have any reports on it. It's just to the effect of who, who blew? Who didn't; no, no. This one is different. Anybody who's had any Dianetic auditing, anybody who's had any Dianetic auditing should come in and take a Dianetics course. Now that might or might not work, because you would get failed cases and so forth. But you could fill this in with this kind of promotion. The promotion that could be thrown into the line up very easily is very often people do not make good gains, or make all the gains possible out of Dianetics intensive, unless they've had a Dianetics course. And then you quote several success stories to that effect. Now that would be the production gimmick on the thing.

Now I can tell you right now, we're cracking the roof on Europe. Europe's going to be a run away. We do have a Scandinavian team in training, of four people. That's a Scandinavian team, of four people. Oh. We have got a project going right at this moment that's going to knock the spots off of Europe. All books, courses, we're setting up and we're engineering it one way or the other. We finally found out how the slots drop into place, and how financing, not financing but how we are going to build up to this line. We don't have to worry about the financing, it's just taken care of in a normal course of human events.

So alright, you've all of a sudden got course minutes. Now it's easier to furnish course minutes than it is auditor minutes. But once more, if an area does not have very many auditors, it's got to furnish course instructor minutes and student course hours, because it can furnish those, up to a point where it gets some auditors, in order to function.

We're translating into each principle European language, the lot. An OEC, SHSBC, HAS course, books. Only previously it was not translatable because of the fantastic printing cost that it would have involved. The viability factor then did not forgive it. You could have put out a million dollars translating and publishing books and that sort of thing. It would have been fabulous.

So what do we look at here? That is the spending of these coins. But who puts the coins there? The HAS puts the coins there. And if he doesn't have enough coins there, and if he doesn't have any reserve pools by which he can get more coins to spend fast, he's always in a mess. Therefore the post is almost unhandleable. Almost untenable. 'Cause he's the guy who puts the coins there to spend.

Somebody reaches in his pocket and does this. No, you have to wait for an idea. And think up an idea of how you can do this. Tapes, site translation, like they do at the United Nations. I got the idea last February. It's taken us a while to get us underway here.

A good HAS will rub his hands together and say, "I'm going to put five hundred auditor hours per week as coins into the HGC, and we're going to fix up the lines, we're going to fix up the tech services and so forth, and we've got to C/S and train, we got this, that and the other thing. And the plan and form of the organization are so and so," and this he tells the production officer. "And this will all be ready, and my schedule on the thing is something on the order of about sixty days I will be able to have this. Will you at the end of that period of time, will you have those things consumed please?" Brrroom!

Site translation. A site translator can hear the thing in his ear and, when he's really trained, spit it out in the other language. So, it's just going right over onto tapes. Then we can copy the, most tapes, and we can sell tapes. And we make it mandatory for every one of those orgs to buy a complete new set of all of their tapes, every three months. They'll wear them out. We get their promotion projects and so forth going, they're all on tapes. We don't have to translate anything on paper. And so on. We're gearing up and alerting Scandinavian orgs right now in the Swedish area, "Start figuring out how you're going to get your tape recorders, kids. And what you're going to be doing." There will be other projects to graduate them into it. And all of a sudden in their midst, why they will have HAS and other materials, and they'll all be in Swedish. Same thing's going to happen in France, same thing will happen in Germany, and so on. We've busted the language barrier. It's always been a worry about how we were going to do this. Alright, we do it.

Now there's another method of looking at an organization, isn't it? So the burden of the HAS is very, very heavy indeed, because he's got to furnish the coins which can be spent. Then he's got to have reserve coins that he can spend. And the real coins of the organization are not the dollars. An organization that doesn't make dollars is going to be up the spout, or around the bend.

Now the only other thing we've got to worry about is how do we get a multilingual LRH comm who is a site translator, can take the dispatches of that organization and translate them on tape, or send it on through for his administrative act. Probably be nobody in the organization speaks any English at all. Dianoutex!

Now as far as the lines of an organization's concerned, and an HCO which is enturbulated and so on, there is this kind of thing. Do you think a pc would be enturbulated if you started a process on him and you never finished it? Do you think the pc would be enturbulated?

And when we get it into Russian, that's it. Probably we'll put it in Lithuanian, Polish, borderline. So, we're hitting into a boom in this in Russia. Russia's booming on the subject. They're fumbling all around trying to figure out what the psyche is all about. They find out that that's a legitimate sphere of research the government isn't controlling. So into the middle of this boom we simply release Russian Scientology.

Now we get into the real field of third dynamic auditing. Administrator handling the group. He has what is called administrator TRs, that cut through the noise, the chatter and the aberration, and get the action done that he has specified to be done. And it works on the basis of, it works on the basis of everytime, stable datum in a confusion, Problems of Work. And youshould know that little check sheet backwards and forwards, because the hatted person can stand up to the confusion, and the unhatted person can't. So how do you back off the confusion out of theorganization, is you well and efficiently and accurately hat the people.

So anyhow, we've been trying to figure out how to, how to penetrate that zone and area. Now the only reason you're not making any penetration in some areas is because no materials are there. Nobody has totally translated what we're doing into what we are doing. We're putting out knowledge, and with that knowledge, and with the actions which that knowledge has you can get gain, production, case change, ability and that sort of thing. But the basic of it is knowledge. And when you get it right down to it and do an analysis of the thing, why here is a product called knowledge. And the consumption of that knowledge is guaranteed.

So, the HAS who wants to get an organization whose own HCO is grrr, and enturbulated and so forth, would have to have pretty good administrator TRs. They're being written at this particular moment, and all the FEBCs are going to be run on them. And they'll wish to god I'd never invented them, probably. I think you have to wear padded shoulders and knee pads to get through these TRs.

But look, you have to have the bulletins, you have to have the tapes, you have to have the course supervisor who says, "And you read this bulletin now." And then see that the student reads that bulletin now. That'd be something new. And who doesn't assign him a condition of enemy because he doped off midway to, but goes over and asks him what is misunderstood.

It's the inability to confront a confusion that wrecks the administrator. So he squirrels. What would you think of a D of P when the auditor comes down and he says, "You know, this pc is running very badly. What do I do?" And the D of P says, "Well, you do so and so." And the person, the auditor goes off and he comes back and he says, "I did that." And we actually had to have a patterned action for that. The patterned action originally was "What did you do," and you find out the guy did something entirely different. What was out? It was TR0, TR0 in that auditor. By the introduction of TR0, that was the end of that. We didn't have that problem in organizations, I mean in auditing anymore.

Alright, what kind of organizational structure does that make? What is the establishment structure? Did you notice that I included the OEC? It would be fatal not to put the OEC in with it.

Alright, well you're seeing the entrance here of the same thing, only it's on the third dynamic. What confusion can you confront? And into what confusion can you hat? And that is the test of an administrator, and would be the test of an HAS par excellence. What confusion can he confront? Because if he can't confront it he'll just blow off of it and squirrel. "Oh I see, you really can't have anybody on that post, and the line can't go that way because aah, ahh! Alright, anyhow. Blll! Ooh! God, I got out of there." See? His administrative TR0 is for the birds.

Now I can tell you something else that's fatal. You put in a fragment of something, and it'll boom and collapse. So if you put in a fragment of what your org could be exporting with knowledge, it will boom and it will collapse. If you put in a fragment of your product; if I weren't talking to you now about the responsibilities of establishing establishment, I know it seems very rambling when I talk to you about this because you say, "The HAS has nothing to do with finance." And boy, he doesn't. He can spend you poor, boy. "Well we just, we've got these sixty staff members. I don't know why we're; we got 'em, we got the staff members. No auditors amongst them. Don't have course supervisors, ha ha. No hats. Um, we got establishment, there's sixty staff members." Sixty unhatted people would behave like about sixty enemies, man. To each other, they'd be at each other's throats in no time. So he doesn't have a sixty man staff, he has a sixty man mob. So he doesn't have an establishment. Yes, he has a great deal to do with this sort of thing, so somebody's got to take responsibility for the establishment, and I've elected him it.

So he walks in on this post and this post is so on, and they say, "And we can't handle this, we've got the backlog because it's time look at all the piles that go into the..., it's all the boxes, you see? And we can't have of, there's no bla, you see?" And he says, "Gee, oh well. It's a mess, I guess." And he walks off, back to his desk.

Now if the org officer takes responsibility for the establishment across the line, he will cease to help the product officer. And you know very well that if he ceases to help the product officer, the product officer will start falling on his head. So the wrong division of duties, obviously, is the org officer taking responsibility for the establishment. The right division of duties would be for the HAS to take responsibilities for the establishment, and get one there that functioned. And get the people hatted and checked out.

You would be surprised what a commodore's messenger goes through. Flag always has about two or three stratas of Sea Org in progress simultaneously. And it has the new recruit strata, and it has the student strata, and it has the old timer strata. Well you'll get sensible actions and so forth, but with this admixture of personnel around you get a certain amount of confusion, because there will be a recruit on a post where you will expected a veteran every once in a while. Well you can always tell this, 'cause you usually get an explanation. And the commodore's messenger has become, actually they look like little kids, and they fine, and so on. Actually they can probably do better administrative TR0 than anybody in the game. I just sent one on a mission, by the way, 'cause I knew they'd have to do some confronting. So I sent somebody up there who could confront. See, simple. Messenger walks up, and he says, "Would you please turn on the heat on A deck?" That's the message. But..., that's of course a carried intention, don't you see? And you get, "Well it's on, and it's on," and they've just run into somebody who's just taken over as an I & R, and they're a new recruit because the ones we had have already been sent out to take care of some other ship or something of the sort. "And you can't turn this valve because of the valve, and it doesn't in the other jiggydoazit and so on, and shchevom, yeah. Got it?" Commodore's messenger says, "Turn on the heat on A deck."

The wrong action for an org officer would be to turn around to an HAS and say, "Give me three staff members at once, because I have got to beef up the empty, fast flowing posts of...", and for the HAS to pick off people off of other fast flowing posts and give them to the org officer. That's nuts.

Sometimes if they can't get it through at all they come back and they say this, "He's explaining." I say, "Who is it? Ah, so." So on. So, just run it up another echelon, because I know I've run into a recruit who is standing a watch point. You'd be surprised. These characters have the got whole ship taped. They know exactly the degree of hattedness of everybody on this ship. The hattedness is usually excellent. But they know where it isn't. Why? Because the administrative TRs in.

The HAS would have to look around and find where he had some people. And if he looks around and finds he hasn't got any spare people, he's one of these poor sods that's just standing in a bread line, clear at the end, with only a gallon of coffee and a half a loaf of bread to give out to a hundred men. He's poor. We ought to give him special clothes, you know with ragged cuffs and...

As you go through your organization, and you find out there's a confusion, and all the chairs are lined up and there's nobody sitting in the chairs, but the people are outside and they should be inside sitting in the chairs. And there's somebody behind the desk, and he's got a whole pile of invoices, and he seems to be counting something. You say, "What are you doing?" "Well I got to do..., and there's an emergency action here, and we've got to get in the financial planning, and the amount of stat which is coming through, and so on." "How about, what's your post?" "Oh I'm qual reception, I & I. And so on, I got to get this..." "Now wait a minute, wait a minute, wait a minute. How about these..." "Well look, I've got this all, this is all, it's very easy to understand because if we don't get the stat in by two o'clock, and so and so." "Hey, how about all these people?" "What people?" "All these people. They're outside. They should be at least in here in the waiting room, and so on." "Oh those, yeah, well I got to get the..."

If you turned around to treasury, and you had to run a mission or something of the sort, and you said to treasury, "We need two hundred and fifty dollars in order to pay the expenses of this."

Look, you're just looking at a bank. A bank expressed on the third dynamic. Some lines are out here. And it isn't up to you to invent a new solution, it is up to you to gets done on that post what is supposed to get done on that post, just like it is up to an auditor to get that command done. And if you've got that down, that's all really you need to know about getting an organization in. The HAS would have to have this in par excellence. He would have to have this in gorgeously. He would have to be able to confront any god's quantity of confusion, and he'd have to know his organizational technology enough to know exactly what hat to put on, how fast, at which instant. He knows what's supposed to be happening in this particular zone and area, and he puts that hat on. The person says, "Well I can't wear this hat and this office is all..." "Put the hat on." "And the bla bla, coming down and lying on that, there's eighteen different sizes and so forth."

And treasury said, "I'm sorry, don't have any money, because we didn't make any provision for this. And all our money's in the bank, and there isn't any way to do it," they'd say he isn't doing his job. Well look at the HAS, look at the HAS. Resources. What are the realities?" "Now let me give you a little piece of stuff which emerged out of socialism. There's a few bits in socialism which are sound think. The most of it is balderdash. But this is very sound think. "The wealth of the world are the real things in the world. And that is wealth. And money is only a substitute for wealth, and is not itself wealth." And that is true.

Hat! "What are you supposed to be doing on the post, what are you supposed to be here, what are you supposed to be," and so on. "Oh well, yeah. Well yeah. Oh, you mean I got something to do with these, with these dispatches? Oh." And you get the reverse. Total dedication to a dispatch line. All hell breaking loose outside the office with somebody comfortably handling his stale dates, as slowly as possible.

Money is only valid to the degree that it can substitute for actual wealth. Money is only of any use to the degree that it can purchase things of value. Value is established by things that are wanted. Value is established by wantedness. You can then fluxuate value by making scarcities and demands and so forth, but it is basically wantedness.

So the basic requisite of an HAS, and certainly even much more so of an executive director, production officer and org officer, would be his TR0, and his knowledge of what was supposed to be happening there at that time, his knowledge of confusion and the stable datum. And he knows that if he gets the stable datum in, which is the hat, the confusion will go off. He doesn't stand around and argue about this, that and the other thing, he just gets the hat on, and it belongs there at that time, gets the line connected up that should be there, yes. And then he goes back a half an hour later to make sure it's still there.

Kensian philosophy, which he tried to say was economics, is valid, unless you put it in the field of economics. It is valid in the field of production, it's not valid in the field of money. And I think he must have gotten a couple of things crossed, but as far as production is concerned, you also have to create want. What you are selling is absolutely priceless. What we're selling here on Flag, I think you will agree, is priceless. There isn't any possible price could be placed on it. So it's price is what can be received for it. Not what is it worth, but what can be received for it, greater or lesser. So pricing is based totally really not on value but what can be received for it. And that value is totally how much it is wanted. And out of a very, very close knowledge of those, and once you get all of these factors disentangled, and all added up in your skull, you can establish how much establishment the HAS can put there. Has nothing whatsoever to do with any firm factor of, "Well, I'm an HAS, I will now put up an org board. And this org should be manned with fifty people, and we will now put some down the line, and we will put the people, there's blank spaces on this org board. And we'll put the people in those blank spaces, and so forth." No, right thing to do is to put up the org board, and then post it to the degree that it is required to back up production. And you build it up.

Now one of the things that happens to a Sea Org mission occasionally is that it goes into an org, the org does what it says while it's there, the Sea Org mission walks out, and the org does exactly what it pleases at once. In other words, the ethics presence was not extensional. That has happened more often than once. Now that would mean actually that the place couldn't confront its own confusion. So to that degree you have to teach an organization to confront its own confusion.

Now you'll find that command lines of the org board will go absolutely mad if you don't build in from the top, so obviously the first production man that you put on is in charge of everything, and does the production. You've got one auditor. He obviously is in charge of all auditing while he is doing all the auditing, and he is obviously the production man for all auditing. So it's built from the top to that degree. But then, when there's more auditing, why it must be because there's more demand for auditing. So want has been created about auditing, and that is basically done by the circulation of books. Books always run out in front of the organization. The stats of an organization are actually almost monitored by the degree that the knowledge has been circulated. They are a direct coordination. It's actually not even by the degree of sales talk put out, it's stats of an organization are proportional to the amount of knowledge circulated by the organization.

You're about to see bull baited administrative TRs. Such a TR is trying to get a piece of paper put from one table onto another table, with three people around the first piece of paper, and three people around the second table. With the three people at the second table completely unwilling to receive any piece of paper, and the people at the first table completely unwilling to part with the piece of paper. Bull baited putting somebody's hat on, meaning by that, just a cardboard hat. All the reasons why he can't wear this hat, why he doesn't want this hat, and hasn't got anything to do with this hat. That's actually what it takes.

So the HAS builds, according to the stats he can build by. If he builds an organization at the cost of fifty percent of the income of the organization, he's really doing great. A rich HAS is one who has reserves, resources.

But an HCO brings order, and that is the drill that brings order, because what are you dealing with? You're dealing with hats, lines, you're dealing with space, you're dealing with certain products, in terms of motions which produce production actions. Dealing with organization actions, filing actions and so forth. One has to know what those actions are. One doesn't have to have it down perfectly, one doesn't have to be super pleu perfect, and when one doesn't know what a unit is supposed to be doing and the unit is getting along alright, one should have enough sense to back out quietly and close the door. But a unit that isn't running alright, and its stats are down and so forth, one shouldn't go in to hear the explanation and then back out and close the door. That is the one thing that is wrong to do.

Now the wealth of the world are actualities. An HAS is wealthy to the degree that he has trained staff members, that he has trained staff members in reserve. "Special products is being asked to please find work for five fully trained auditors we are not using at this moment on the production line." How would you like to hear a remark like that? Wouldn't that be remarkable? But that could be a statement which is made by the HAS. "I got five auditors, I don't want to assign them into the administrative lines. Haven't you got some kind of a project where they can go out and audit ARC breaks or something? Do something? Or can't you think up something, or something?"

So anyway, the HAS then has the job of putting an establishment there. Well, establishment is an orderly arrangement. It is an orderly arrangement, so therefore everybody in HCO should be capable of bringing about an orderly arrangement. If HCO cannot bring about an orderly arrangement, it will bring disorder into the org.

Now you can run it the other way too. "Look, I want to have here a fifty(c)five man organization, and we've only got a thirty man organization. And at the present moment we can only afford a thirty man organization. Can't we increase production, or demand, or something in some way, so that we can increase our numbers organizationally so that we do get up into a zone where we are running where we have a few reserves, instead of just asking me to pull musical chairs every day, any day of the week? That would be a very comfortable position, so please can't we get the income up, huh?"

Now all of this may not be expressed in old policy, but what do you know? It doesn't violate old policy, the old policies which were written yesterday. These very interesting policies that are several days old, that should be issued again.

I noticed when we were collecting stats last week, I've got it here. Where is this stat here? Yeah, oh yeah, hm, yeah. Letters out, letters out dropped. "Yes I know, but we're trying to get quality in." Ooh! First you get in volume and then you get in quality, and then you will have viability.

Truth of the matter is that unless you have a center or a focus point in an organization, which is a stable point, which is then bringing order to the remainder of the organization, you will only have an enturbulated organization, you won't have your production coins to spend. So, one of your jobs is getting something to spend in terms of the real wealth of the organization. And the real wealth of the organization of course is basically knowledge, and then the time and actions of bringing about what that knowledge can do. And that is the real wealth of the organization. And when you keep your eye on the main chance that that is the wealth of that organization, what do you think will happen to an office in San Francisco, as we had many, many years ago, calling themselves the Psychology Consultants? It went broke. But it was a horrible disorder, because the information that they were exporting wasn't even being used where they were. They were very individuated out from things.

Now he's dealing with some interesting coins. How many auditing hours can the organization furnish? How many instructor minutes can the organization furnish? How many student hours can the organization furnish? How many public courses per unit per person can the organization furnish? And that would be a resources survey of an HAS. How many hours, how many hours. Well that's monitored by how many auditing rooms, how many auditors, how many this, how many that and so forth.

So what do you, what do you basically, what do you basically have in an HAS? You have just what its motto says, "Bring order." But what is bringing order? Putting in stable data, and stringing the lines, in spite of the confusion. Many an HCO, if it is doing its job well would feel like a lineman, a telephone lineman, in the middle of a battle. But a telephone lineman can string a line in the middle of the battle. The point is, does he string the line, or does he suddenly Q and A with the battle? So you would get your administrative Q and A.

So, an HAS should know the resources of his organization. He should know its actual wealth. That he has fair resources or additional resources depends upon his knowledge of the existing resources. Never saw such a silly thing in my life as a set of graphs come in here one day. An organization had about ten auditors who were auditing six hours a week each. Oh, who's kidding? There must have been somebody in that area that was just throwing the gold coins of that organization right over the side.

You'd walk into the thing and the registrar is supposed to be registering somebody, but isn't, actually. Is engaged at this particular time in arguing with, of all people, arguing with the mimeo files clerk. And is arguing about who would have what lunch hour, or some other unlikely subject. Alright, what is the action there? The Q and A is, is to settle who has the lunch hour and walk out. You're asking the pc from where could you communicate to an elephant. Somebody walked down, a very funny HCO, I mean a very funny examiner report I saw here the other day, just as an interjection. Somebody walked by and they'd been doing a long list, and all hell had broken loose and their cases falling apart. When they hit the term elephant they walked up and said to the examiner, "I'm an elephant release." They were doing fine.

Boy, he was just throwing them into the sewer just as fast as he could pick them up and throw them away. Six auditors, count 'em up. How many auditing hours should six auditors furnish? That's a hundred and fifty auditing hours. Or six auditors at twenty-five hours a week. Very well done auditing hours too. Resources.

Now supposing this auditor had come along and the person said, "I don't particularly care to run that item." And, "Why don't you particularly care to run the item?" "Well actually I haven't, haven't received a letter from my mother lately." "Well what about your mother?" "Uh..." You've seen this happen.

This organization can furnish that, these auditing hours are worth this much, unless we're selling by packages. So we ought to be selling by packages, we shouldn't be selling by hours because it's too expensive, and it appears too expensive to the public to sell these auditing hours in this fashion, so we probably should sell by packages and so forth. So therefore the package selling, and so on and so on and so on.

Alright, let's look at this administratively. Let's look at an HAS who does this sort of thing. "We've got to get in the registration line here, and so I'm going down and get in the registration line. Very good. Now what is the trouble with this registration line?" He's already opened himself wide open. And somebody says to him, "We really don't have any carpets." And he says, "Well what about these carpets?" "And well, it wouldn't get through financial planning, because Bessie Ann wouldn't agree to them." And the HCO sec goes off to see Bessie Ann.

But nevertheless, the coins, the gold coins which that organization is spending and has to spend are auditing hours. And if they're not spent this week, they can't be spent, ever again. Funny money. It's real wild money. If you don't spend it you haven't got it. How many student hours can this organization deliver? Hours of students on course. Alright, there's only room for twenty students in this organization, if you jam them in with a shoe horn. Now each student is going to spend eight hours a day on class. So each student is worth eight hours, and they're going to be twenty students, so you can furnish what? In a day, how many student hours. Those are your coins.

Now if you just multiply this about five hundred times over during a day, an HAS sees that his life is utterly unlivable. HCO will eventually be ducks and drakes. The whole organization will be walking through HCO, it'll look like Grand Central Station. If I were an HAS and somebody came in to see me in the middle of a traffic period and so forth, and wanted to know when they were going to, when they were going to get an answer to their brother's petition to have free rehabs, I'm afraid I would not answer with a Q and A. The PR factor would have to be preserved, but in essence my action would be, "What is your post? What are you supposed to be doing? What is the traffic on it right now?" And that would be the answer to the brother's petition about his free rehabs. And then somebody would say, "HCO doesn't give service. Doesn't give me answers that I should be getting from the registrar, or from the letter registrar." Do you follow?

Now do you understand why I say the HAS is very poor if he does not have resources? Those are his resources. Supposing he's got a hundred and sixty staff members, and he has as organizational production coins, twenty-five. Twenty-five auditing hours. Supposing he has one instructor for seven courses. Now that's instructor minutes per course. Now you subtract that down to instructor minutes per potential student. So he's got one course supervisor, and he's got one auditor, and he has a hundred and sixty staff members. Does that sound crazy to you? Well I exaggerated a bit so that it sounds real crazy. The organization'd be broke in no time. Do you see that? Uh! There's nothing to deliver. How the hell could he deliver anything?

Now, HCO, a personnel would have to know routing, and so does every person in the organization has to know routing. And do you know who has to know his routing best? The executive director of the organization has to know more about routing in the organization than any other person in the organization, because about ninety percent of an executive's function is routing. Not only routing, but establishing the route to be routed on. A tremendous quantity of stuff early on on any post will come through, and all it requires is routing. Almost everything in your pending basket is mis-routed, and doesn't belong to you. And just on that basis of "this isn't mine", you can take a pending basket and route it. And not cruelly or crudely, you look it over and you'll find out that it's all mis-routed. So you didn't know what the hell to do with it, because of course it wasn't yours. And all it tells you is that routing is out, and there must be some other people around who don't know routing, so your action would be to get everybody checked out on a basic staff hat, and Chinese school on the org board, and a few more elementary things of this character.

So we do have the processes necessary to resolve the confusion. They do exist. Who runs these processes? The HAS. He's the auditor of the org. Only there's the thing called a sane establishment, and he mustn't go in the same direction that an auditor goes. An auditor reduces the bank to nothing. Let's not have an administrator reduce the org to nothing. He's not trying to run the org out, he's trying to put it there.

Therefore I'd say an HAS who can't do creative processing won't be very successful. And his TR, if his TR0 is bad so that he Qs and As in any way whatsoever, he won't be very successful. So these are the various requirements of it. But, if he can mock things up, and if he can hold a position in space, and if he can fix things, and if he does know confusion and the stable datum, if he's determined to bring order regardless of what, if he's determined to make the lines go on out and straighten out, if he's determined to put the organization there and bring order in it, and if he can confront a confusion without Q and Aing, if he can hat somebody, why, he's quite a guy. He's quite a treasure actually.

HCO personnel are so rare, because these abilities are rare, because he's basically an auditor to the organization. He audits out all the confusions in the organization, and that's how he brings order.

Now what are his duties? To put the establishment there. How much establishment? How much establishment can he afford to put there. How does he figure out this establishment? Well he figures out the establishment in terms of production that will result in the greatest return to the organization, so he can put some more establishment there. And why does he put some more establishment there? So that he can put some more establishment there. Why does he put more establishment there? So he can put some more establishment there, of course. And what happens while he's doing it? He's got all kinds of people that don't know what he's trying to do, and doesn't know why he's trying to put the establishment there, so they say, "I've got a letter from my mother, and she has just said bongledong, and therefore I must gagob," and he says at that moment, "That's very good. There is the mail clerk. See if he has any letters for you. There is the mail clerk." "Yes, but my mother..." "Good. There is the mail clerk. See if you have any letters in." "Yes, but I'm in grief about this..." "See the chaplain. Messenger, take this person to see the chaplain. And come back and tell me if the chaplain was on post. Heh heh."

In HCO they think they're messengers who carry the mail around. That's because nobody is using it as a central hub from which order is brought. You can't bring very much order over a very long period of time unless you've got some messengers, I can assure you of that.

So, this is where the thing goes. Now I suppose next I will be talking about the HCO department one, in sections, department two in sections, three, four, five, six, seven, eight, nine, and eventually chase it all the way on off the other end of the org board. But that would be sort of greedy. I would be taking all of your goodies away from you. It is you I expect to chase it all the way down, off the other end of the org board. All the confusion you have had in the past, with order following all the way along the line, viability rising, and the planet in our laps. Thank you very much. Thank you. Thank you very much, good night now.