The first thing an Est O runs into in an area that is not hatted is Dev-T (developed unnecessary traffic).

People in an org can be working frantically, totally exhausted and yet produce nothing of value. The reason is that their actions are almost totally Dev-T.

The WHY of this is UNHATTEDNESS.

The people on the posts do not know their own hats or even if some do they are dealing in the “NOISE" of other people who don’t know their own hats.

Few if any of these people know the other hats or duties of the org and so don’t know Where to go for service or Who to approach or despatch for What.

If a management unit such as a Bureaux, a Continental Liaison Office, an OT-Liaison Office or any agent thereof such as a Guardian or FBO or Flag Rep is any good, THE NEAREST SERVICE ORG WILL MAKE AMPLE MONEY TO PAY the managing unit and HAVE LOTS LEFT OVER TO SWELL SO Reserves.

So it’s not an org or a division. It’s a non-productive chaos.

Therefore if the managing unit or activity next to a Central Org or service org is “In funds” or “without funds” it is a direct index of management quality as expressed in the stats of the nearest service org.

The answers arc three:

1. Get Dev-T understood and

For an OTL the term CENTRAL ORG must have active use as applied to their nearest Major Org.

2. Get the staff at least Instant Hatted at once.

For a CLO an AOLA or AOSH is the nearest org therefore its Major Org.

3. Chinese school (staff or div staff all together in front of a big org board chanting together the hats, duties and products of the org as visible on the org board).

For Flag, the Flag Admin Org is the nearest Service Org.

In order to get anything done at all or even begin this an Est O Ethics Officer function has to be in.

A schedule has to be posted including exercise, post time and study and staff has to be mustered and handled at these periods. This gets some awareness of the org group as a team of people with similar purposes.

An OTL or CLO or Bureaux must manage lesser orgs so they build up a public that (1) services locally with these lesser orgs and (2) FLOWS CUSTOMERS TO THE MAJOR ORG.

Thus Field Auditors-Franchises — Small Orgs — CENTRAL ORGS — SHs — AOs is THE FLOW LINE without which the Central Org or top org will go broke.

Dev-T packs are made up. These consist of:

If these lesser activities are kept prosperous and flowing persons upward via the FSM system and other systems THE LOCAL, CONTINENTAL and INTERNATIONAL management units WILL BE IN CLOVER.

• HCO P/L 2 Jul 59 Issue II “Dev-t — The Delirium Tremens of Central Orgs”

If this flow line is not made to operate that way all will be awful. If it does operate that way all will be well.

A CENTRAL ORG, THEREFORE, MUST GIVE HIGHER (IN TYPE) AND BETTER SERVICES THAN FEEDER ORGS.

An AO must give higher better services than an SH.

Flag services must be higher in class than an AO’s.

Lack of precise definition as to what is Income and what is “Reserves” has caused trouble in identifying activities and in this flow line of management and income.

The main trouble it has caused is that a management unit, not having precise definitions and not knowing the flow lines (as above) reaches out to the wrong “finance pools” for their support.

(Examples: A Continental CLO tried to live on Management 10%s which were not theirs [ UKLO '711. A CLO let the nearby AOSH go down and tried to live off Flag [USLO '71J A CLO let an AO go down ignoring it completely while building up only its most distant org [USLO ’71]. A Div III would not collect actively on huge debts because it could borrow from the corporation [FAO ’71 ]. An OTL ignored its nearby CENTRAL ORG and kept trying to get its support from its CLO [ANZO ’71], The earliest example was a Navy Admiral [Scoles] running the LA foundation into the ground in 1950 because he thought it should be supported by Elizabeth, New Jersey.) The WHY of all these was lack of understanding of Flow Lines, and lack of definition of income, expenses and reserves as different, precise money pools and different types of orgs.

FLAG: The main vessel of the SO.

FLAG ADMIN ORG: The Service Org on Flag.

FLAG BUREAU: The International Management body of the SO with additional advisor and management activities.

THE SEA ORG: A corporate activity headed by a Board of Directors which owns and controls the ships, orgs and activities of the Corporation.

WORLDWIDE (WW): The corporation that owns and controls Scientology Orgs, currently under the advices of the SO after its 1968 failure to maintain orgs in solvent condition.

CONTINENTAL LIAISON OFFICE: The SO Office of a Continent that manages that Continent.

OPERATION-TRANSPORT LIAISON UNIT: The branch office of a CLO managing the area or orgs assigned to it.

These packs are issued to staff members and they are required to check out on them.

ORG FINANCE BANKING OFFICER: The FBO attached to an org to help the Continental FBO manage it financially under SO control.

Each staff member keeps a Dev-T log and writes down the name of anyone he is getting Dev-T from and also issues Dev-T chits.

THE CONTINENTAL FBO: The FBO Officer and office engaged in the financial management of a Continental Area under SO Control.

FLAG INCOME: Flag (FAO) collections by reason of on-board services. Missions, books and manufactured items, plus 10% of CGI of orgs managed (Flag Bu) except where WW has prior claim to the 10%. Does not include Canteen or Bookstore.

The staff at the least are Instant Hatted at once place on the org board, work space, supplies, what his title is and what it means, org comm system, what he is supposed to produce on his post.

TOTAL FLAG RECEIPTS: Total Flag (FAO) collections. Mgmt Bureau Income plus Canteen/Bookstore.

He is gotten producing what he is supposed to produce in some volume at once.

FLAG EXPENSES: Total of all Flag and Bureau and Management expenses, including Bills paid for Flag by FBOs but not Canteen/Bookstore expenses.

Hat checklists and packs are verified as there or are gotten ready.

TOTAL FLAG EXPENSES: Flag Expenses plus Canteen/Bookstore.

A full hat checkout can then begin.

FLAG EXPENSE: The total cost of the Apollo, its crew, the FAO, the Flag Bureaux, Flag missions and comm, any Flag shore base or Flag relay unit, and any repairs on her equipment whether paid on board or on behalf of Flag by Continental FBOs.

Courses he needs are done in staff study time.

FLAG RESERVES: Any money made by Flag’s FAO services and Bureaux Management 10%s over and above the total expenses of the ship, the FAO, the Bureaux and the crew.

Actually hat study and checkout is done on the post a bit each day.

INTERNATIONAL MANAGEMENT INCOME: The 10%s collected by Flag Bureaux and Flag for services of Management. This is 10% of the Corrected Gross Income of those orgs or Franchises that do not pay 10% to WW.

This is in fact “on the job training” as he is expected to go on producing while he is being hatted.

SEA ORG RECEIPTS: The combined gross receipts of all SO orgs, ships and activities, being the total receipts of a corporation which is managed by a board. It is not the income of “Flag” or “Management” or CLOs or Flag Bureaux or FAO or Ship.

SO INCOME: The amount of money received by the corporation after the allocation to SO and Sen orgs and before management expenses are taken out. Includes SO orgs, Sen orgs, Pubs and any other activity for which the corporation is advising or managing. It does not include the gross income of Sen orgs or such activities, only the money they pay to the SO.

Org Bds are rapidly gotten up or up to date in the org (in HCO) and (full org bd) in each Division.

SO DISBURSEMENTS: The amount of money expended in support of SO orgs, ships, management, comm, everything including sums paid to management units as expenses and 10%s so paid as all or part of their expenses.

Each Division is Chinese schooled first on its own org bd, then on the org as a whole, in such a way that they know the duties of divisions, departments and posts and the flow lines of the org.

SO RESER VES: Often miscalled “Flag Reserves” or “Management Reserves” which they are NOT. SO Reserves are: The amount of money collected for the corporation over and above expenses that is sent by various units (via FBOs and the Finance Network to the corporation’s Banks. It is used for purposes assigned by the BOARD OF DIRECTORS and for NO OTHER PURPOSE. These are normally employed for periods of stress or to handle situations. They are NOT profit. It is not support money for “Flag” or “Management” It is not operating money (Examples: Huge sums were required to cover WW when under attack and to catch the PUBS 1970 crash.)

CLO EXPENSE: A CLO is supported by funds from its nearest major org. This does not mean all funds above allocation for that org belong to a CLO. 10% of the CGI of the major org should be more than adequate to support a CLO since if the CLO is any good at management at all the income will be high in that major org. It is expected to send far more to SO Reserves than it consumes.

Wherever an org or even a division falls apart or slows up, this campaign is repeated.

OTL EXPENSE: The same as a CLO. Nearest major org supports it. If any good it will boom that org and others as well. It has to boom others so they will feed to the nearest major org. It is expected to send far more to SO Reserves than it consumes.

CLO-OTL RESERVES: Any reserves that may be built up locally by book and pack sales, events. FSM Commissions and booming the major org. It is expected to send far more to SO Reserves than it consumes.

This is a sample Executive Directive (ED) giving a program written for an actual org where the above was done to cure Dev-T and get the org hatted and producing:

ORG RESERVES: Any reserves that may be built up by an FBO by reason of astute guardianship of the org’s funds. Far more than such reserves go to SO Reserves.

ED______ Date______________

LOCAL RESER VES: The reserves built up by an FBO, OTL, CLO, Org, ship or Activity by reason of booming the org. These may not be built up at the arduous expense or denial of SO Reserves.

FBO CONTINENTAL EXPENSE: The FBO Cont’l expense is paid by the CLO to which it is attached. Thus it must make lines How. It collects for OTC!

FBO LOCAL EXPENSE: Paid by org to which the FBO is attached and collects for OTC Ltd and other management units.

The governing policy of Finance is to:

It has been very difficult to handle the org.

A. MAKE MONEY.

B. Buy more money made with allocations for expense (bean theory).

A long and intensive collection of data has finally culminated in discovering, through reports on comm and inspections by showing why the org appears fantastically busy and overworked while producing very little even when it was found the org was insolvent.

C. Do not commit expense beyond future ability to pay.

Ethics has been very heavy for some time and has not led to any spectacular recovery.

D. Don’t ever borrow.

But the Comm Line reviews and analysis reveal INVESTIGATION:

E. Know.different types of orgs and what they do.

The Org and all its Units is drowning in DEV-T. HCO is even generating it. This makes an appearance of frantic action and overload while little is produced.

F. Understand money flow lines not only in an org but org to org as customers flow upward.

And an analysis has produced a

G. Understand EXCHANGE of valuables or service for money (P/L Exec Series 3 and 4).

H. Know the correct money pools for any given activity.

The org is almost totally unhatted and untrained.

I. Police all lines constantly.

DEV-T comes only from AN UNHATTED UNTRAINED ORG.

J. MAKE MONEY.

K. MAKE MORE MONEY.

Out the bottom and below the briny bedrock of the sea so far as finished products per man-hours and as far as GI by reason of the org are concerned.

L. MAKE OTHER PEOPLE PRODUCE SO AS TO MAKE MONEY.

A small sack of beans will produce a whole field of beans. Allocate only with that in mind and demand money be made.

A whole staff and the org fully hatted and producing only correct comm without Dev-T and at work actually producing things of real value which will exchange for value.

A finance management which does not understand and USE these principles will be like a driver who hasn’t the tech to drive a car. He’ll wreck it or not driving it at all will have no transport.

Money is a tech. IT FLOWS. Although one dollar looks like another dollar, they may be from completely different places and mean completely different things.

THE EST-0 SYSTEM AND DEV-T P/Ls HANDLE THIS.

1. Admin Cramming and each EST O to be furnished with packs of Dev-T Policies at once including last Exec Series P/L Routing and new Dev-T P/L Correct Comm. ALL HANDS DISSEM. ________

2. FULL Est O set-up to be gotten on post at once. They go on duty and part time train. HAS. ________

3. Existing Est Os and those to be put on at once to hammer, hammer, hammer all posts on Off Line — Off Origin and other points of Dev-T so they are UNDERSTOOD. EXEC EST O. ________

4. Big Paper Org Bd with new complement to be gotten up at once in HCO. HCO EST 0. ________

5. Big Paper Org Bds from it to be gotten up in each Div and the Div Chinese Schooled on it. Specializing in the Div but also covering the Whole Org so people know where they are and what each handles and where other terminals in the org are so they can properly route to or go to them for the exact service of that exact post. DIV EST Os under EXEC EST O. ________

6. Straighten out the Comm Lines of each post. EXEC EST O. DIV EST Os. ________

7. Report to his Div Est O (see org bd) or Ethics Officer any person originating off-line off-origin traffic or failing to originate from his post paper or body or remark. Report by “Dev-T Chit’’ EVERYONE IN THE ORG. ________

8. Send flagrant offenders to Admin Cramming. EXECUTIVES. ________

9. Put in

1. Instruct, and if no Improvement:

2. Cram, and if no Improvement

3. Retrain and if no Improvement

4. Offload

where hatting continues to fail to produce rapid comprehension of Dev-T and/or persistent inability to actually DO his hat. Court of Ethics or Comm Ev on request to remedy any injustice. EST Os. ________

10. Excuses concerning hatting and arbitraries like “Only study hat in hatting college” to be wiped out and any barriers to getting On Policy On FO-FSO wiped out by Ethics action or Cramming. EST Os. ________

11. Instant Hat every staff member. DIV EST Os. ________

12. Chinese School every Division. DIV EST Os. ________

LET’S MAKE THIS A CRACK ORG WE CAN BE PROUD OF

The above program can be completed in a few days.

It is followed by further programs to get in lines of the org, full hatting, and proper Comm set-ups for each staff member etc.

If the program falls out or Dev-T flares again, A. REHAT Est Os and B. Do the program once more.

The org will come right and begin producing PRODUCTS WHICH EXCHANGE FOR VALUABLES.

The org will become solvent.

Only the Est O system makes such a program possible.

We have long had the tech as you can see by the P/L dates. Dev-T tech has existed since the mid-1950s. But it could not be gotten in swiftly enough to make a startling change in the org morale or stats until EST Os were on post in an org.

If it does not go in rapidly even with Est Os then some of the Est Os are not well enough or firmly enough hatted as EST Os and the answer of an EXEC EST O or Est O I/C is to very rapidly cram his Est Os or following the 1. Instruct, 2. Cram, 3. Retread,

4. Offload pattern improve his Est O team.

Fully done the program works like a beautiful breeze bringing peace and a cheerful staff.

[See also HCO PL 9 May 1974. Prod-Org, Esio and Older Systems Reconciled on page 446, which modifies the above Policy Letter.]