1.) An organization has a number of REGISTRAR MINUTES to invest. And this determines the number of sign-ups the Organization has.

2.) If the REG INTERVIEW stat is TOO HIGH then the Reg is NOT regging, just saying "Hello", or brushing them off.

3.) This is the "coins" of an Org, the internal economy, the real factors of economy.

1.) A group which has the idea of where it's going and what it's going to do, and is not all individuated one from another, can normally pull together so it will eventually make it.

4.) The HAS makes them AVAILABLE to be spent. He's in charge of personnel, lines, and spaces, so is in charge of the potential "coins" the org HAS, to spend.

2.) Here in the SO (1971), we are on the edge of a 2 year survival, just beginning to make it. We are doing this into the teeth of a relentless enemy, and we hear his "death rattle" once in a while. We will make it, but now are on the margin of survival.

5.) Not "Dollars". They are worthless. No, he's in charge of how many HOURS the HGC can furnish in auditing, how many Instructor minutes, interview minutes, typist minutes, etc.

3.) We are in a world which is very "topsy-turvy" (upside down) economically and otherwise.

6.) How long does it take to type a letter, which has been dictated by a reg onto tape, after CF folder study? If you examine this you will see immediately that the org has a "ceiling" of Letters Out, based on the actual time required to do it correctly. Again, too high a stat is "quickly" brush-off or false. Too low, requires better hatting & organization. This is ECONOMY.

4.) The MINIMUM of survival is to be able to operate for 2 YEARS without making a penny. That is the BEGINNING of viability.

7.) I'm NOT talking about this corny Hungarian stunt where they tell Wilson (a US President), "All you've got to do is borrow a hundred million-billion from the International Bank!" That's not ECONOMY. That's CRAP!

5.) And IF YOU DO have to operate without income, you have time to get REALLY BUSY and handle it.

8.) We are talking about REAL things - typist minutes, etc. If you ARE working at the "ceiling", the HAS would say that "to get the stat up NOW" would require another team of Letter Reg, 2 typists, a CF Liaison Clerk - 4 people.

6.) For instance, "cash bills" were so bad over the world in 1969, October, that I didn't expect Scientology to survive. It was an insolvent mess. The "cash-bills" of Scientology Orgs were crossed. (Bills were more than cash). (Note: Bills = Debts Owing.)

9.) And to the degree the HAS sees that their HATS get on, the QUALITY of that production will get very good.

7.) MSH originated the "Financial Planning Program # 1", which I issued as an ED, to handle.

10.) Sometimes we get examples of letters from orgs. Some are quite good. But one was hilarious. It said: "Dear..... ." "You are invited." "Signed.... ." (Laugh)

8.) In 7 or 8 months, she achieved the result of ALL ORGS SOLVENT. It was a HARD job.

9.) She found that many orgs were very unreal on how much they cost per week to run, so they didn't know how much they HAD to make to stay solvent.

12.) If it's "enturbulated" in HCO, then HCO does not have control of the lines of the org - obviously.

10.) The next step is NOT JUST to make as much as you need per week, but to start to buy SURVIVAL, and that is, at a MINIMUM, a 2 YEARS RUN WITHOUT A PENNY WALKING IN THE DOOR.

13.) The calmest, most orderly place in an organization should be HCO.

11.) That would get you over most political and other crises.

14.) When the P/O, who deals with observational actions to get products anywhere in the org, and who essentially works without "LINES", finds he HAS to deal with a "line" (to put it in, or correct it) he is now into the province of the Org Officer.

12.) These are the HARD FACTS OF LIFE. So how much Establishment can you afford?

15.) As a Product Officer, if you find yourself having to "borrow" a terminal or "get someone from another post" to assist in getting the product - you DO it, yes, but you ARE in the province of the O/O, and that then MUST be handled by the O/O or the P/O will "drown", or get into even "single-handing".

13.) Obviously YOU CANNOT afford an Establishment which doesn't PRODUCE. And, YOU CANNOT afford people IN the Establishment which do not produce. And YOU CANNOT afford to harbour machinery which doesn't produce, and offices which have no service use. THESE are the things you CAN'T afford.

16.) The lines of the org are under control of the HAS. So the O/O to keep ahead of the P/O, (so he won't find any lines "out") does "DUMMY RUNS" through the lines and drills them. The O/O tries the lines out HIMSELF to see if they work. Then he gets the HAS to handle any outnesses to get the line in permanently, after he has patched it up.

14.) The WRONG way to do it, is to fire staff to balance you books when the income goes down.

17.) The other way to Dummy Run a line is with "Bullbait" questions: Ex: to Cashier - "I have a 2000 Dollar check here. Can I buy the 200 Dollar course and get it changed here and you give me 1800 in cash?"

15.) The way to do it is HAT, TRAIN, and get MORE PRODUCTIVE on post, the staff members you do have.

18.) The plain "dummy run" tests the LINE. The bullbait "dummy run" tests the TERMINALS.

16.) The manager always has the responisbility of providing work for his workers. (Somebody in Russia ought to learn this.)

19.) So the O/O does these, and from the results, furnishes the material or data to the HAS for handling the ESTABLISHMENT.

17.) It's not just "how much Establishment?", it's "how much Production?"

20.) So, if the HAS were "on the ball", he would run his OWN dummy runs, wouldn't he? (Laugh).

18.) Now we are back to Resources. How much Resources does the HAS have that can be utilized by production?

21.) It's actually an I & R function to do a "Dummy Run". (Inspections & Reports). He does Form 1, Dummy Runs, etc.

19.) It's very simple. Income for last 3 months was "X". Therefore expenses over next 3 months must be "1/2 X", and income must be "2 X".

22.) The O/O is trying to find out if the Establishment is THERE (by doing a Dummy Run), and the HAS is responsible for putting the Establishment there.

20.) Then you are at a QUARTER of income for Establishment if you target it and pull it off.

23.) One of the troubles the HAS will run into is from FP or Treasury. They say "We don't have any money". Even if it's a lie. It just stops things.

21.) Most organizations are terrifically INEFFICIENT. The IDIOT answer is to "close down" some part of the org or "lay off" thousands of people. But that's what the wog world does! (like General Motors)

24.) If he runs into that, he should show the "coins" he has - which measure the potential volume of production per department for the Final Valuable Product of the department. These then add up to the FVP's of the org. (And if there are not enough, then expansion will halt at a "ceiling".)

22.) That isn't management, that's an INSULT to idiots!

25.) Or if the HAS can furnish 150 Auditing Hours per week, and only 100 are being consumed, there is something wrong in sign-up or delivery areas and the Product Officer is not getting the consumption or creating the "want" to consume all those "coins".

23.) Look at it. They have THAT much Establishment. What is the management responsibility? To get the production CONSUMED, not reduced. Their Product Officer is a lousy manager.

26.) This is why the PR man is needed to work WITH the Product Officer after some expansion has occurred. His job will be to increase the consumption by increasing the "want" and demand for services and products. (He also handles the "Barriers to Production" or HE&R as per FEBC2).

24.) You DON'T reduce production, you INCREASE CONSUMPTION.

27.) His "outside" public is senior in importance to the "inside" pubic. So he can survey, collect old successful campaigns, re-use them, spot areas of public from earlier times which used to come to the org and don't anymore, and survey and campaign to re-vitalize them, etc.

25.) So if you have 12 auditors and only half work for 6, WOW! You better increase the consumption! It's not enough to JUST produce products, you have to increase consumption of products, or in the case of auditors as producers, you have to UTILIZE them.

28.) But it's the HAS who furnishes the "coins" for the increased consumption.

26.) A good manager, P/O & O/O, will balance these factors out.

29.) The HAS can go through each department and "cast up" or "figure out" exactly how many potential "coins" the org has which gives the existing potential production scene, and available stats to be made.

27.) That is why PR, Distribution, and Dissemination are so important. You've GOT TO KNOW what people want. You've got to estimate what they want and predict what they want - and provide it.

30.) An org that runs "accidentally" on "stats", is not being RUN. That ORG is "running" he HAS!

28.) Example: People "say" they want "new" Tech. But the "old" Tech hasn't been correctly produced. They really want "workable" Tech - and RESULTS.

31.) Then his area WILL be confused.

29.) This missing factor in this example is QUALITY. The quality of the Tech was missing.

32.) He can carry a "shadow line" on a graph - giving the "ceiling" production in an area - this then tells him immediately who to HAT.

30.)

33.) Ex: Org can furnish 150 Auditing Hour "coins". It only furnishes 80 and only 25 are Well Done. He knows at once who to hat, demote, promote, etc. (Reg, Tech Services, Tech Sec, Qual Sec, Cramming Officer, etc.)

34.) So he could map the entire Org's stat ceiling, and if the org wasn't running close to this, he would know something was wrong with the P/O or O/O, as it's INEFFICIENT.

31.) If you connect up a guy who CAN'T DO IT with a guy who wants it, you are going to have immediate production problems and the fullest Qual you ever heard of!

35.) If nine-tenths of the stats were OK and one wasn't this would be recognized and handled by a conference of HAS, P/O, O/O, and Area senior.

32.) We had a situation where Qual dropped out the use of their basic tool - the Green form. They would start in handling from the top, fly a rud and end off. What about the REST of the GF? Well, it wasn't being consumed, but that's where some cases need to be corrected to finish their Qual Cycle. I solved it by having the GF assessed once thru. Then take the biggest read and handle it. Bang! - cracks the case every time.

36.) So, by stat ceiling, you could measure your Establishment.

33.) Of course, the auditor MUST know how to read the meter and run whichever process is needed.

37.) If the HAS doesn't have this "map" or analysis of the org by stat "ceilings", he couldn't possibly operate. It's one thing to "put a bus there" and it's another to "get it driven".

34.) Most of your big ideas in production are about SOMETHING YOU HAVE ALREADY GOT. The "big idea" is, "how are you going to USE this?"

38.) The Product Officer is the "bus driver" of the org. His potential and capability is "How many of those coins are spent?" - or "How close is the stat to the stat ceiling?"

35.) UTILIZE YOUR RESOURCES is the answer. On the "Green Form" example above, the campaign could be - "Come in and get a Free Green Form". This would correct the Tech outness and get the person back on lines as a CONSUMER.

39.) That measures the effectiveness of the Divisional P/O or Div Head AND the P/O of the Org.

36.) But by survey, we find that GFs have got a bad name because people had them done the old way and were tired of them - so we campaign for "Free Case Analysis".

40.) So when you have the stat of an org AND the stat "ceilings", no matter whether the org is large or small, you have the effectiveness of the HAS, the O/O, and the P/O.

37.) If you are promoting the "Free Case Analysis" or "Case Cracking Analysis", then somebody has to run like hell and keep the lines in, auditors ready, etc.

41.) The Product Officer who can turn out more COMPLETIONS per unit of auditing time, without going "quicky", he's a GOOD P/O!

38.) This would be the O/O's job, not the HAS or Establishment Officer. Because it's a temporary thing - a pilot.

42.) The P/O UTILIZES the coins of the org to get Products.

39.) The line for this pilot has to be Person Recieved, Escorted to Auditor, Assessed, C/Sed, Escorted to Reg to be told what he can now do about it - buy a Case Cracking intensive - and signed up. If all these steps are not in, then the whole "big idea" will fail and you get no increased consumption of auditor's time for PAID intensives.

43.) Ex: A Product Officer surveys to find out how many incomplete courses and grades people have. Then gets them all to finish the one they are closest to completing. The completions stat shoot up. (Then a dirty trick would be to turn over the hat to another P/O and pretend to have "status" because HE couldn't do it, too.)

40.) We had a "Hospital Project" once where Ministers went to hospitals, cheered up people and gave them cards with a phone number. The project was destroyed by having no person as a terminal to answer the phone. That is an example of a "big idea" with no O/O backup.

44.) You can always find "1/2 done", or "nearly done" products lying around.

41.) The O/O then would handle these "Special Projects" from "Big Ideas" of the P/O. Then, if successful and continuing, the HAS would incorporate them into the Organization.

45.) So the HAS puts the potential for production there, and the P/O makes it produce. When these are in "phase", both quality and quantity are good.

42.) The HAS should then also have "HCO Expeditors" to use under the O/O on these "Special Projects", so the Org doesn't get ripped apart, and vital posts don't go unmanned.

46.) The P/O who wants to expand the Establishment so it can get more production, better have his "Special Projects" area going. Surveys, pilots, etc. Then when successful, they are incorporated into the organization and the flow increases, and the consumption increases.

43.) You find HCO Expeditors today "filing in CF" when long ago the HAS should have had TWO CF Clerks. Or "helping in HCO" when LONG AGO the HAS should have a FULLY ESTABLISHED HCO.

47.) I could shoot some of these Execs, who, every time I come out with some new tech developement, they drop ALL existing organization lines and put it all into the "new" thing. No, No! You pilot it in, while keeping the existing lines going.

44.) No, if Expeditors have free time, they should be on STUDY to become more hatted and valuable resources. And their best use outside of that is for these special "big idea" projects - NOT off filing CF someplace.

48.) When somebody tries to grab only the "latest and greatest" and drop the old, just say: "The law of gravity didn't go out just because it was discovered in 1649."

45.) So the HAS's job is to maintain the Establishment. And to do that we have an ORG BOARD. IT is NOT accidental. IT is PRODUCTION oriented. It is NOT an "arbitrary".

49.) Just because we have the FEBC, we haven't antiquated the org board. What org board did we go back to? The BEST PRODUCTION ORG BOARD, which was 1967.

46.) Every one of those departments on it has a PRODUCT. And if you work it BACKWARDS FROM the product and sub-products of the org, you end up with the 1967 Org Board!

50.) We are putting the cream on top of this cake now.

47.) How does a HAS post the Org? He fills it up to the degree it is demanded by production.

51.) It is a "nuttiness", that makes people not use "yesterdays" process because they have a new one "today".

48.) He expands his Establishment by increasing the posting of his existing Org Board.

52.) You will find that a product officer will make all of his cash out of YESTERDAY'S DEVELOPEMENTS.

49.) And to do this he requires resources. I've given you one pool of resources - HCO Expeditors.

53.) I have some new rundowns now that I don't dare release to orgs because they just are not good enough to do them and would flub. (XDN, L 9, 10, 11,12.)

50.) Occasionally you get a personell man who thinks his personell pools are the bigger and better running Divisions!

54.) Another example is when we released the Class VIII Course. It took 3 weeks on Flag to do it. Now they have added to it in AO's so that it goes on & on & on. I think you have to get to be 90 years old now to finish it.

51.) A mad scene in the SO is "missionairing". Missions have PRIORITY. And you should hear the screams of the Establishment people. But, in the SO, the Product comes first. And our Product is "Scientology around the World".

55.) So a Product Officer can WASTE his resources, by ADDING or SUBTRACTING.

52.) Actually it puts a heavy burden on the 3rd Mate (HCO) on the ship.

56.) By making it "ENDLESS" or "QUICKLY", you get a no, or overt, product.

53.) But he should get clever, and read the old FOs about a MISSIONAIRE UNIT. That would give him an extra pool to draw from, if he sets it up.

57.) DON'T let people tell you that "you won't get any money" by finishing up courses and grades already paid for. You can't RE-SIGN them unless they finish what they are on. And you need the RESULTS from the completion for promotion, success, AND as further resources.

54.) The Missionaire Unit spend most of their time studying and on guard duty. If another higher trained missionaire is taken from the org, they can "fill in" while he's gone. Or they go as 2nd or 3rd missionaires to get experience.

58.) The Product Officer makes CAPITAL out of the "coins" and INCOMPLETE PRODUCTS that he finds lying around.

55.) So the main problem of HCO is to get PERSONNEL POOLS. His main FLUB in DESTROYING what organization has been put there.

59.) The Class VIII Course here was 3 weeks. We taught it with ferocity. Being "thrown overboard" was the "badge of the VIII". It was VERY successful. (We surveyed this among all VIII's and only 2 brought up the point about overboards as being too harsh.)

56.) This can be done by "having all the Qual terminals audit in Tech Div. to handle the backlog". That is HCO?S FLUB for not predicting the volume of delivery and TECH Auditors required. (for Example)

(Note: The Original Class VIII Course students were given the choice: To do Lower Conditions formulas for every Gross Auditing Error they made, (which took at least 72 hours to do - OFF course) - or to be symbolically "cleaned" of the overt on the pc by being thrown overboard. ALL chose to do the overboards for auditing flubs.)

57.) So what are the HAS's resources: Money, People, Hatted People, Trained People, Very Valuable People, and the Materials of Knowledge, and the MEST to assist production.

60.) Although it's bad PR to bring up a "flap" - we did it and we DID have a COURSE. Now why didn't people go on teaching it?

58.) It is a POVERTY HCO if it has no resources and has to unmock what it builds.

61.) No, they added EVERY bulletin that came out afterwards to the VIII!

59.) It's as stupid as using the wood from the house you just built to build a 2nd house.

62.) It got longer and longer. What would be the P/O's reaction to this? THEY WERE WASTING STUDENT HOURS AND INSTRUCTOR MINUTES!

60.) You say the problem is FP? Well if I was a HAS who couldn't get the pay for new staff through FP, I would "not OK" anything the P/O wanted until he produced more with what he had and he could afford more Establishment.

63.) They were throwing away the "COINS" AND throwing away CASH.

61.) It could get so crazy that the HAS is transferring all the staff each week to keep up with production. Trying to run a 345 man org with only 15 staff!

64.) ALSO, they added a RETRAIN on SHSBC bulletins! VIABILITY went out the window at this point. Why?

62.) When production is not adequate for the Establishment, then the Establishment goes "poor" in all its resources.

65.) THE PRICE of an VIII Course is now covering the SHSBC, VIII MATERIALS, and all the stuff SINCE!

63.) Its main resources are of course TRAINED STAFF MEMBERS.

66.) What should occur is:

64.) And willing auditors, and cheap expansion space, and sources of inexpensive materials and equipment of the org - like filing cabinets.

A.) Need an SHSBC retread? OK. We give it - AND CHARGE THE SH who gave the flubby SHSBC in the first place. Well, VERY shortly they will cease to give flubby SHSBC Courses!

65.) The WRONG way to do it is to spend 8000 Dollars for new desks for P/O, O/O, & HAS. That's beginning into the incredible practice of "spending money you don't have".

B.) The VIII Course is 3 weeks long. He does it, and goes back home as Class VIII. That's really something!

66.) You CAN do this in this society. Very clever. They are ALWAYS WILLING for you to "spend money you don't have" - credits, loans, etc.

C.) There is a band of HCOB's, that start just before the Exteriorization RD and runs to about the middle of 1970, which is a IX Course.

67.) But we DON'T do that. That is why we STILL own our own souls and why we are NOT in the "pockets" of the International Bankers.

67.) There IS something to know, and we've NOW made Cl. 8's and 9's into Class 10's, bringing it on up to the current HCOB's & RDs.

68.) We are SOLVENT, are OURSELVES, and DO EXIST, because we make our OWN WAY.

68.) A Class IV, for example, will make a mess out of an Exteriorization RD. The Ext. RD should only be done by Class IX's.

69.) Some staff wonder why I don't pay them better. It's the wrong question. I'm not even on their Board of Directors. Their low pay is a direct result of unhattedness for production in their orgs. If they produce more they get paid more.

70.) This is the ECOLOGY of the Universe in which we live:

69.) Right now we are losing coins every minute the IX Course is not out there. Over-long Courses burn up not only the "coins" of the org delivering them but also of the org where the student is FROM. They are losing his SERVICES back home. So it's DOUBLY wasteful.

• STAFF MEMBERS WHO PRODUCE GET PAID.

70.) So the Product Officer's "think" on all this is "how much is it COSTING in terms of the COINS OF THE ORG to deliver", not just "is the "price" or "fee" for the course too low or too high".

71.) A good campaign I recently did was the public one of "anyone that had DN auditing". It was to get them to take a DN COURSE "to fully realize all the gains possible". (+ Success stories on it.)

(Note: 50% Gains from Auditing, 50% Gains from Training; and ANOTHER 50% from Application.)

72.) It's easier to furnish "course minutes" than "auditing minutes". And if you don't have auditors, you MUST have Courses to train some.

73.) So this is the "spending" of the "coins". But who puts them there? The HAS. And if he doesn't have "coins" or "reserve Pools of resources" his post is a mess. It's almost unhandlable.

74.) A good HAS will plan to put more 2 coins" into the org - say, 500 more Auditing Hrs + Tech Sers + C/Sing 60 da and then tell the Product Officer to get them consumed by the time they are operating. Wow - that's another way of looking at an org, eh?

71.) Example:

75.) So the burden of the HAS is great: He furnishes the "coins" to be spent. He provides the "reserve coins" to be spent. And the REAL "coins of the organization are NOT the "Dollars", although if you don't get EXCHANGE for your services you will fail also.

An Instant Hat of Staff gives VOLUME.

(In other words, there are MANY ways to FAIL in an organization and one of them is just not getting exchange, but the more IMPORTANT one is not being able to produce or deliver!)

A Mini Hat gives some QUALITY.

76.) Now we get into the field of 3RD DYNAMIC AUDITING: Do you think a pc would get enturbulated if you never finished a cycle of action on him? Yes! Well, what about an org? It's the same. An Administrator needs ADMINISTRATIVE TR'S to cut through all the noise and chatter and get the action DONE that he has specified TO BE DONE.

A Full Hat gives VIABILITY.

77.) It works on the basis of "Stable Datum and Confusion". The Stable Datum aligns the Confusion. It's from "Problems of Work".

72.) As a manager, your first thought is for VOLUME. You demand VOLUME of Product. Then as 2nd Action you demand QUALITY of the VOLUME. Then 3rd you calculate and demand VIABILITY.

78.) The HATTED person CAN stand up to the confusion and the UNHATTED person CAN'T.

73.) If you don't do, however, a bit of VIABILITY PLANNING before all this, you may have an awful time of it.

79.) So to get the confusion OUT of an organization, you HAT the people.

74.) You can predict from stats where an org will be 5 or 6 months from now. (Ex: AOLA will be DOUBLE its current 40.000/wk income and corresponding delivery stats.) So whose job is it to prepare for that DOUBLING of the Establishment? The HAS of the org. And whose fault is it if they DON'T DOUBLE the size of the Establishment - space, auditors, staff, etc. - ? The HAS of the Org.

80.) It's the "inability to confront a confusion" that wrecks an Administrator.

75.) But it takes months to train, hat, and groove-in staff. And find space and rent or buy it. So who is doing it NOW? I don't think anyone but me.

81.) So that's why he "squirrels". It's like in auditing we had to put in the Question: "What did you do?" whenever an auditor said "That didn't work". Then you find out he DIDN'T do the process. TR O was out. Now we are putting that in on the 3rd Dynamic.

82.) "What confusion can you confront?" And "Into what confusion can you HAT?" That is the test of an administrator and of a HAS.

76.) The WRONG time for the HAS to think about Establishment for the increased production IS WHEN IT IS ALREADY INCREASED. No, they must predict it and start way AHEAD of the increase by building up RESOURCES.

83.) If he can't confront the confusion, he will just blow off of it and squirrel.

77.) We are going to see a boom in Europe. We are translating the lot!

84.) I train the messengers to confront these conflicts and confusions: We have three "strata" of personnel here: recruits, students, and veterans, I always know, when we've given a "carried intention" or "order via messenger", if the person is a recruit, because the messenger comes back and says: "He's explaining". (Explaining why it CAN'T be done).

• OEC

85.) Then I just go to the SENIOR echelon and get it done - and the person (recruit) better hatted and out of Danger.

86.) The hattedness on this ship is usually excellent. But also I know where it isn't.

87.) So you can have "bank" on the 3rd Dynamic. It expresses itself (or dramatizes) as Confusion, Dev-T, out-lines, unhatted terminals, dropped functions, backlogs & non-compliance.

88.) The HAS therefore must be able to confront any amount of confusion, know policy on the area, and know what hat goes on which person and how fast to do it and when to do it.

Into all major EU Languages.

89.) Then you also get the reverse. TOTAL DEDICATION to a dispatch line. All hell is breaking loose on his post and he is sitting comfortably, handling his stale-dated in-basket as slowly as possible.

78.) It needed a bright idea, because the cost of PUBLISHING all these things in all these Languages was prohibitive - millions of dollars. (NOT-VIABLE).

79.) The bright ideas was SIGHT TRANSLATIONS onto TAPES. The courses are done on tape or cassette by trained translators. The orgs then only need a lot of tape machines for the students.

91.) He doesn't get into arguments - he just puts on the HAT which aligns the confusion. Then he checks back to see if it's still being worn. He handles the TERMINAL, connects up the LINES, and gets the FUNCTION done.

80.) New tapes can be sold to the orgs every 3 months, because the tapes will wear out from so much daily use.

92.) Now sometimes in a SO Mission, the mission goes in, the org does what it says, conditions improve, and the mission leaves. Then the org reverts back to doing whatever it pleases and conditions worsen. In other words, the Ethics presence was not Extensional.

81.) The Russians are now fooling around with psychic phenomena. It's a field of interest the government doesn't fully control, so we release into their midst "Russian Scientology".

93.) Now that would mean essentially that the place couldn't confront its OWN confusion. So you have to teach an org to confront its OWN confusion.

82.) The only reason you are not making a penetration in some areas is because NO MATERIALS are there.

94.) You are about to see "bullbaited administrative TR's". Ex: Two tables, 3 people around each, a piece of paper on one table. The 3 people there unwilling to move the paper. The three at the other table unwilling to receive it. The student must get the paper from one table to the other - by intention - and command and ethics presence.

83.) We are putting out KNOWLEDGE. When applied, you can get production, ability, case gain, etc. But the basis is KNOWLEDGE. So that's what we need to put in an area first - the TRANSLATED KNOWLEDGE.

95.) Or bullbaited putting on a "hat" - a cardboard hat - with the person resisting having the hat put on.

84.) The consumption of the KNOWLEDGE is quaranteed. It's the basics of LIFE. But you must have the books, tapes, bulletins available in the LANGUAGE. And the SUPERVISORS for the COURSES.

96.) So "HCO brings order". That is the DRILL that brings order, because you are dealing with hats, lines, space, products, motions which produce products, organizational actions, filing actions, etc.

85.) If you put in a FRAGMENT of something, IT WILL BOOM, AND THEN COLLAPSE. Thus we also need to have Supervisors, M/U Word Tech, and the OEC for the Organization.

97.) One should have sense enough when going into an organization area that IS running correctly, to back out and close the door! But also enough confront that when it's NOT running right to NOT back out and close the door.

86.) If you only put in a fragment of this Prod/Org system, it would boom & collapse. Example: The HAS gets 60 staff for the org, but none are auditors, all are unhatted. They would behave like 60 ENEMIES to the org and each other!

98.) So the HAS puts the Establishment there. An Establishment is an ORDERLY ARRANGEMENT. If HCO can't do this it brings DISORDER into the org.

87.) A 60 man MOB is not an org nor an Establishment.

99.) That might not be FULLY expressed in "old" policy, but policy doesn't violate it.

88.) So I've elected the HAS as the person who puts and maintains the Establishment there.

100.) These "old" policies are STILL VALID - you know the ones that came out "yesterday" and should be "reissued" - (Joke) (Laugh).

89.) If the O/O did all that, he would CEASE to help the Product Officer!

101.) The truth is: If you don't have a stable point, a "focal point" of stability on an org, you will only have an ENTURBULATED org, and no production "coins" to spend.

90.) If the P/O has no backup by the O/O, he can't increase VOLUME or QUALITY of products, so will fail.

102.) So your real "coins", your real "wealth", is KNOWLEDGE and the time, actions, and ability to bring about what that knowledge can do.

91.) So the proper division of duties is for the HAS to care for the Establishment.

103.) We had an organization office many, many years in San Francisco calling themselves the "Psychology Consultants". What do you think happened" - They went broke. A horrible disorder. The information they were exporting wasn't even being used where they were! They were very individuated out from things.... .

92.) The HAS must not take people from fast-flowing posts to give to the O/O to fill other fast-flowing posts. That's nuts. And it would be a HAS in POVERTY who didn't have any resources.

104.) So what do you have in HCO. Just what the motto says: "Bring Order". But what is "bringing order"? Putting in STABLE DATA, and stringing the LINES, in SPITE of the confusion.

93.) Let me give you something from SOCIALISM that IS true. (Most of it is balderdash).

105.) An HCO, doing well, may feel like a telephone line man stringing lines in a battle. He CAN do it. But DOES he string the lines, or Q & A with the battle?

"THE WEALTH OF THE WORLD ARE THE REAL THINGS IN THE WORLD. AND THAT IS WEALTH. MONEY IS ONLY A SUBSTITUTE FOR WEALTH, AND IS NOT ITSELF WEALTH."

106.) Ex: HAS goes down to handle Reg Lines. Asks (a wide open question) "What is the trouble with the Reg lines?" Answer: "We don't have any new carpets. FP wouldn't approve them. Bessie Ann wouldn't OK the P/O." HAS goes off to see Bessie Ann. FLUNK. Q & A. That's a non-sequiter "explanation" and has nothing to do with the Reg Lines!

94.) 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.

107.) Now multiply this about 500 times per day in the org and a HAS'es life is utterly unlivable!

95.) Value is established by things that are WANTED. Value is established by "wantedness".

108.) And if I was a HAS, and a staff walked in and asked about his brother's "petitation for free rehabs", I'm afraid I would say: "What is your post? What are you supposed to be doing at this moment? What traffic haven't you handled? What products haven't you gotten today?" His question for info should have been written and sent to the Letter Reg in the first place!

96.) You can fluctuate (change) value by making scarcities and demands, etc., but it is basically "wantedness".

109.) 90% of an ED's function is ROUTING. He has to know this BETTER than anyone in the org. But ALL staff must know ROUTING of particles.

97.) "Keynesian" philosophy is valid UNLESS you put it in the field of ECONOMICS. It IS VALID in the field of PRODUCTION, but NOT in the field of MONEY.

110.) The ED not only must KNOW the Routings but also often must establish the channel (line) something is to be routed ON.

98.) So in production, you DO have to "create want" or desire for consumption of the products.

111.) A tremendous quantity of stuff will come through any post early on and most of it just requires ROUTING.

99.) What you are selling is absolutely priceless - KNOWLEDGE, and how to APPLY IT for BETTER, HIGHER QUALITY, LIFE or SURVIVAL.

112.) Most of the stuff in your "Pending" Basket doesn't even belong to you, it's been misrouted.

100.) No "price" could be put on it. So what is its price? Its price is WHAT CAN BE RECEIVED FOR IT; NOT WHAT IT IS WORTH.

113.) You can go thru a pending basket on the basis of "It isn't mine" and look it over and route it correctly. You didn't know what to do with it BECAUSE it wasn't yours. (If you know your OWN hat.)

101.) So pricing is based, not on VALUE, but WHAT CAN BE RECEIVED FOR IT.

114.) It also tells you there are people around who don't know routing, and others have this problem too. So your action would be to get them all checked out on a Basic Staff Hat.

102.) And that depends on HOW MUCH IT IS WANTED.

115.) And "Chinese School" on the Org Board and a few other basics.

103.) Once you have this sorted out and aligned, you can determine HOW MUCH ESTABLISHMENT THE HAS CAN PUT THERE.

116.) We DO have the processes necessary to resolve the confusion. They do exist. Who RUNS these processes? The HAS.

104.) Don't just "fill in" posts on an org board because they are empty.

117.) The HAS is the "auditor of the org". But he doesn't run the "org" out, he runs the "confusion" or "Bank" OUT OF IT.

105.) Put up the org baord and then post it TO THE DEGREE THAT IT IS REQUIRED TO BACKUP PRODUCTION.

118.) The auditor reduces the "bank" to nothing and puts the PC there as a Clear Thetan or OT.

106.) Now the Command Lines will go mad to the degree you don't build it from the top. So the FIRST PRODUCTION man you put on is in-charge of everything AND does the production.

The HAS reduces the "confusion" to nothing and puts the ORG there as a Clear or OT Org.

107.) When you have ONE auditor, he IS the P/O AND the whole of Tech and Qual.

119.) An HAS who can't do Creative Processing won't be very successful, I could say.

108.) When you have more auditors, it's because you have a DEMAND for more auditing.

120.) And if his TR O is bad, so that he Q's & A's, he won't be very successful.

109.) That is created by RESULTS and BOOKS.

121.) So these are the Requirements of a HAS or "auditor to the Org".

110.) The stats of an org are almost monitored by the degree the knowledge has been circulated.

A.) He can mock things up.

111.) It's a direct relationship. The stats are proportional to the amount of KNOWLEDGE circulated by the organization. (Not by the amount of "sales-talk")

B.) He can hold a position in space.

112.) So the HAS builds the org according to the stats he can build by. If he builds the org at a cost of 50% of the income of the organization, he's really doing great.

C.) He can fix things

113.) A "rich" HAS is one who has reserves, resources.

D.) He does know "Confusion and the Stable Datum".

114.) The wealth of the world are ACTUALITIES. A HAS is wealthy to the degree he has trained staff members, trained staff in reserve, auditors, supervisors, etc.

E.) He is determined "to bring Order" regardless of what.

115.) A "rich" HAS could even ask the P/O to find work for 5 fully trained auditors not being utilized on production lines at the moment - great for use in Special Projects - time for a "big idea" - see?

F.) He is determined to make the lines go in and on out to other areas, and can straighten them up when needed.

116.) Or he could ask the P/O to produce more income so he can put on 25 staff - already hatted - to expand the Establishment.

G.) He is determined to put the Organization there and bring order in it.

117.) Interesting COINS: "How many auditing hours and Supervisor's minutes can the org furnish?"

H.) He can confront a confusion without Q & Aing.

118.) "How many students hours, public courses, etc. can the organization furnish?"

I.) He can HAT somebody. Then he is quite a guy and a TREASURE to the org.

119.) That's a RESOURCES SURVEY done by the HAS. "How many hours?" for instance depends on how many auditing rooms and how many auditors.

122.) HCO personnel are so rare - because these abilities are rare. Because he is basically an "Auditor to the Org". He audits out all the Confusions in the Organization, and that's HOW he "Brings Order".

120.) An HAS should know the resources of his org. The ACTUAL wealth. When he knows this he can then tell if he has spare or reserve resources.

123.) Now, what are his duties? To put the Establishment there.

121.) Example: Org with 6 auditors. WDAH for week 36. Wow, should be 150 with 6 auditors at 25 hrs each! So that org is throwing away their gold coins of 114 "auditing hours" every week. And this can NEVER be recovered for that week. It can never be "SPENT" again. They threw it away.

124.) How much Establishment? How much he can AFFORD to put there.

122.) It's "funny money. If you DON'T SPEND it - you HAVEN'T GOT is.

125.) How does he figure out this Establishment? He figures it out in terms of Production that will result in the greatest return to the Organization, so he can put some MORE Establishment there.

123.) Ex. Student hours. The course room fits 20 students. An 8 hours day org. So that's 160 student-hours per day. For a 5 day week it's l800 Student-Hours. That's the "coins" of the org.

126.) And why does he put more Establishment there? So he can put MORE Establishment there. (Etc., Etc. = EXPANSION)

124.) Now you understand why I say the HAS is "poor" if he doesn't have resources. Those ARE his resources.

127.) Most people think HCO is just for delivering messages or comm because they don't know IT IS THE CENTRAL HUB FROM WHICH ORDER IS BROUGHT.

125.) If he had 160 staff and only one auditor and one supervisor for 7 courses, he would be in poverty. Only 25 WDAH & very few supervisor minutes per course or student possible. That org would go broke FAST. It could not afford itself! There's nothing to deliver!

128.) And you can't bring very much order over a long period of time unless you have messengers.

129.) I suppose next I will be talking next about HCO Dept. 1 - in sections, then Dept. 2 - in sections, then 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20. 21 - and then chase all of your confusion all the way off the other end of the Org Board. But that would be sort of greedy. It would take all your "goodies" away from you.

130.) It is YOU I expect to chase the confusion all the way down and 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 your laps.

131.) Thank you very much. Good night.

1. RECOGNITION

(The "Recognition" to "Source" cycle.)

1.) COMMUNICATION