Now the product officer, as he goes on and stacks up more money; of course we get more and more resources in terms of money, but we may not have resources in terms of trained personnel. The Sea Org expansion and so on is absolutely staggering, in terms of; you know, I actually think you, you guys probably believe that we were doing great in '68, and it's all sort of gone down hill, and etcetera and etcetera. It's very, very funny. What's happened is that our statistics at this particular time, have become divided up. And the statistics are of more individual units and areas. And those statistics, do you see, well there's this type of thing. The Sea Org now is running three AOs, there are now three SHs, there's a great many more Scientology orgs, and there are a tremendous number of franchises which are really kind of orgs, do you see, and it's quite amazing. But when you add up these statistics you find out there's just been a general, you should do it just for fun.

Now there's just been a consistent general expansion, and the stats have been going up, and they're going up and going up, the general stats. But it's because they've become compartmented, they're assigned to different units and nobody adds up all the units.

1.) Now an Org Officer in a highly idealized org would have Organizing Officers for each Division of the Org as the Deputy Divisional Secretaries.

Now furthermore, if you take the Scientology org income, which has lagged as compared to franchise income, and so on, the truth of the matter is the franchises were financed by the AOs, by FSMs early on. So they've sort of robbed the orgs of their income, and then the orgs haven't kept up on that FSM line that would have expanded them, and they haven't continued to operate as their own reliable selves, and they've tried to maintain establishments and so forth without actually producing the things they should have produced. And it's gone agley. But when you add it all up you find out quite amazingly, 1964, 1965, 1966, 1967, 1968, and then you think maybe there was a bong. No at that time there was a tremendous spread, and it just went right on up the keyboard. It went down, it goes down, it goes up.

2.) The O/O Conference would concern itself with getting projects done - while the P/O and Div Secs. go on getting products.

But you take our stats as this minute compared to the stats of 1967 and they're way up. And they're way up above 1968. Look it over the you'll see that they are. It's quite amazing.

3.) The reason thins go "zoom" when I am around an Org, Is that I never take pity on an organization - I am a pitiless Product Officer.

We are expanding. And the place that it shows strain particularly is in the Sea Org, because in the Sea Org we have a limited number of personnel. And they have already, over a period of time, consistently been stretched so thin; you see we're maintaining three AOs instead of one. We're still making the income of one AO, do you see, but now we've got three establishments to man. And it's just got the lines thin. You'll find that that to a large degree is, the lot of the execs of Washington D.C. for instance were yanked out into the smaller orgs, and so on. There were all kinds of wild personnel tangles, and there was a lot of weight on Washington. And as a matter of fact, I did not want and did not approve the establishment of these tiny orgs. They could only be of service if they were feeder orgs. And they didn't, they set themselves up as independent organizations. Now they're continuously in trouble, but actually they rob some of the income from Washington. So they're harder to manage because there are more of them, but the aggregate income is comparable. And it's been in my mind several times, is to retire some of those places to franchise and force them to feeder service to Washington again. We probably won't do that, we've got a better idea right now. We'll just force all of them to be big.

4.) If My actions are not followed up by organization & establishment, then I will ALSO do Prod 3 AND Prod 2 until it does.

But I thought I would interject that just in passing, because I found out the general impression was that something was happening with this. No, it isn't. As a matter of fact, the Australian, the attacks on Australia and so on are the most ineffective attacks that anybody ever; they've passed laws and bans all over the place, the police have given us all back our books, and there's nothing. To hell with it. Nobody had anything to do with it, so it sits on the books as a dead statute. It made the staffs timid, it worried them, it upset them, it did this and that and the other thing, but it sure discredited the enemy.

5.) If a Tech Sec tells me - "We can only audit 6 pcs, because we don't have enough auditors." - I will at once order promotion to promote heavily for more pcs, and the regges to sign up more pcs, and tell the Tech Sec - "You've had it! There's going to be a flood of pcs in here within 2 weeks and you better wear you hat of hiring auditors, get them hatted and ready - about 12 more." And also notify Estates to rent 2 more houses to audit in - etc.

So if at any time, any time you don't continue to pile up resources in terms of trained staff members, if you don't continue to pile up resources in terms of space, why that is what is going to break your back, because you are not on any down trend at all, you're on an escalating up trend.

6.) The Analysis of Successful Actions in this field shows the key is the pitiless Product Officer, who only thinks of the Organization in the light of how to use it in its totality.

I invite you to look at the franchise statistics of the last three years, and they're, they almost go double each year. It's not quite that steep, but that's the way it looks. You look at it on a graph, up she went. So don't plan on a level graph.

7.) If he sees an un-utilized machine or person, he gets them utilized in making products.

Your resources are your resources, and they are mainly in terms of manpower. How many people have you hatted? How many people have you trained? How many people in the field do you still have the allegiance of? How many people have you patched up? How many ARC breaks have you handled, and how many members do you have in your auditor's association, and so forth are the only things which will keep you above water, because it's a problem in resources. And the resources are a thing which the org officer has to watch. And if he sees his resources declining; well we just established a new course out in Longville, as a branch course or something from the org. Oh, oh, oh, oh, there goes the trained something, and there goes a trained something else, and so on. Has he got them to send out? So he should stockpile all the resources he can. Money, auditors, books, he should be greedy.

8.) The biggest trouble with execs we have found, is to get them to INSPECT their orgs. They shouldn't be at their desks! The production lines are out there - in the org.

Now the product officer can go on turning out products, turning out products, turning out products, turning out products, but when somebody doesn't do something with these as resources, and get his resources off that line, and stack them up and preserve them in terms of field people and so forth, they're willing to help out, and somebody might come on staff, and the auditor was trained and he wants to know when he can go working for the org. Those are resources. And everybody you hat becomes a resource. So of course he wants to over hat, always. A person hatted for three posts is better than a person hatted for one post. He's a better resource. So your org officer has the duty of piling up resources.

9.) The only reason I can do so, is that I have a 24 hour Messenger watch and I keep them running like hell, while I also wear my own hats. Even so I do go out and inspect regularly. I only get a bit resentful when I get too much Prod 3 handed to me while I'm also doing my other hats. C/Sing, Writing Tech & Policy, Planning, Books and Films, Lecturing, Coordinating SO, GO, & Org activities, Handling compliance traffic, issuing orders, Conferences, etc.)

Now his sudden demands made, made on him a piece of cake. He's way ahead of it. "Oh, need to buy a new building? OK. How much it cost? Alright, OK. We'll look for one. Yeah, good. Only a million? Well aright, poof. Alright, OK." He's in that position. "Oh you need two hundred auditors? OK." Do you see how an org officer gets behind, because his resources are limited. So therefore he gets ahead by increasing and hording his resources. See how it's done?

10.) It's mostly because there are only 24 hours in this cockeyed plant's day!

Now you don't want a miser on the post who holds the resources to his chest and never will let them go, but you want a provident sort of housewife who has a basement full of next years' canned good rations, and doesn't have to go screaming down to the Safeway to buy a cup of sugar every time that there is a guest for dinner. Now if you look this over from the standpoint of expanding by resources you will see that you cannot expand unless you have stockpiled resources, or tried to. Now you should always try to stockpile resources, and that's how the org officer keeps ahead of the game.

11.) I found myself saying that "even God couldn't hold this post". You may find yourself saying that too, on up the line - unless you listen very carefully.

How many replacement aids do we have in the Flag bureau already trained, who can be spared on their posts at this particular moment? And that tells you exactly what the resources are. That is poverty, boy. That is right down to the bottom of that ole' barrel. "I'm sure there must be a half a herring left in this herring barrel some place. Somebody get a flashlight." Do you see where she errors?

12.) There ARE ways to live with this - by following the standard ways of doing things - keeping information lines open - and not Q & Aing.

So now the org officer system should increase resources. And so, when he's called on for one he gets two. And yes, you will eventually wind up, and orgs which I manage by the way generally do wind up, there's an awful lot of old stuff out there that nobody's ever used in the garage. And it probably never will be used now. Somebody says, "Wasn't that a terrible waste." No, no, no. That was just providence extended a little too far. They also don't turn around immediately and look at the rest of the resources that were used. And they're all over the place in full use. And they also don't look around at the bank accounts, because those periods were also attended by very high bank account reserves that went pouring in. And the staffs also were well paid at that time.

13.) It assaults my Reality to find Executives depending on "dispatch" lines.

So these are the criteria by which an org officer operates. Now he has to know what a resource is. Resources are things like space, furniture, equipment, and the establishment of the factors of the org. Any of those can be resources. But the final valuable products, what happens to the final valuable products after they're final valuable product? So the org officer sort of steps in after the product officer. And that's how he gets ahead of him.

14.) Dispatches are NOT THERE to HANDLE THINGS, they are only for information, records, and "OK", or compliance reports.

So the product officer, you see he's turned out a lot of his final valuable products, and they're sitting all over the place. At this moment the org officer says, "Heh heh heh heh! Let's get some of these." Got it? Open up an org officer's desk and there's no list of potential staff members for posts and so forth, he's in poverty.

15.) It would be impossible, if you weren't in total communication with your organization, to handle it at all.

Now, naturally an org officer tries to keep everything on an org board, and he tries to keep it all straight, and tries to keep it this way and tries to keep it that way, right up to the point when the org board gets in his road. And at that moment why he can make do in some fashion or another, and get some approved change so that it can be officialized. That's approval sort of after the fact. Otherwise, as you expand you won't be able to fill in the weak points. So the org board is saying, "Well you can't have an organization without weak points if there's a point missing on the org board that you need to have filled." Do you follow? That's a contradiction. If you have a strong organization which won't blow up at the joints, it's of course going to get an expanding org board. Fortunately the org board, 1967 org board, expands from about two or three people, or one person can operate on it actually, to about a hundred thousand. It's inherent expansion is that great so you really don't have to vary the pattern of the org board much. That was the reason it was planned.

16.) Never ACT on reports that contain too much entheta or you can get a recoil. Investigate further on another line. Use them, however, as indicators of situations.

Now the close work with the HCO we've covered, and the org officer moves very fast, and should always move faster than the product officer. Yes. The product officer's going a hundred miles an hour, the org officer will be lost if he doesn't travel at a hundred and twenty-five. If he only travels at a hundred and twenty-five he will be overtaken sooner or later, because he has to stop by the wayside every once in a while to pick up the bodies and pat them together. The best laid plans of org officers aft gangagly. "Yes, we will be able to take care of it. Bessie Ann just ran off with another man."

17.) I also have the ability to "look around" - without GOING around too much - so I can keep a close finger on the "pulse" of an org or area.

Now in urgent peak periods the org officer might be required to understudy and be at the product officer's side. In other words, they work as a team, and at peak periods or at tough points they must work as a team. They must not be distant from each other. They just work right there, hammer/pound, and they will get over one of these things.

18.) When I was an E/D in an Org, I would go through the Org daily and talk to every person in the org. I wore Prod & Org Hats both then, as we had no "system", so I was interested in the Products, the Staffmembers personally, and what they needed to get their product out.

Now the org officer should be so familiar with his org's personnel that he would at any time be able to say what each staff member is up to, and know what they are doing. And in his operations he of course follows the data already supplied by LRH in CDOs and lectures. Now if you're operating right now at a period of transition, it doesn't change very much, because of 2 August 1965 HCOPL, which lays down a basic form. That is the one which says what the HES does and what the OES does, that is the first borning of this. And when that was violated, something went astray, and orgs became harder to manage. Really, the HES was an org officer, and the OES was a product officer. And if you look under the OES you will find money in division three, you will find auditors, in the student auditors, in the directors of training, and you will find pcs in the department of processing. And then you will find under also distribution, you will find the field and the products which are going out into the field. And up at the beginning of the line in the first two divisions you find the HES and so forth had hatting forming and so forth, and also had the executive division which contained the estate section. So you see, it all works out right, and that's 2 August HCOPL. And it contains the first elements of the system in which we're operating.

19.) I missed a day every so often - but I KNEW I had missed it, so would take extra attention the next day.

Now that was an older system than the '67 org board, but the '67 org board was the preservation of this system, and the '67 org board was very well tried out at Saint Hill, and was functioning very, very well at Saint Hill during its peak periods. The org board was copied with all corrections by Mary Sue, in 1967. And I found that when a section is on the wrong part of an org board you'll get into trouble at once. And a great many of these adjustments were made, so the 1967 seven division org board is a fully tested org board. Unfortunately, the division three of that org board was lost, and not published. And the elements of it are still around, and I think we're making some effort to publish this at this time. But Mary Sue wrote it up, and for some reason or other, it just wasn't mimeographed. And I can't imagine what happened.

20.) The O/O should take a tour thru the Org daily to find out how the staff are doing.

The fact that we have developed some new principles in the field of PR, and in the distribution division, has tended to throw the distribution division a bit out because its product was not anticipated totally at that time. And its product is Scientologists. That is its product. And these Scientologists, of course, have products of sold books, contacted people, and other, sending people in, you know interested persons and so on. And they also have, the guardian's office is carrying on some of that now, and they have all kinds of committees and that sort of thing stretched around the world, and they use these committees, and so on. That was really an original distribution division function. So that is in a state of flux at this particular moment, and you could either just use what is on the nine division public divisions, use that, or use the old distribution division org board with these elements put into it. But I can tell you right now that the PE foundation is going straight back in the academy, because a PE foundation requires course supervisors, and it's just, it's just a lower level of the same action of a course supervisor, and they have the facilities, tech services and other things which can be doubled in brass to handle these public actions. Because they're not public actions, it's the same action all over again.

21.) He should note when a hat is missing or weak and handle.

You will see something resembling a staff college or hatting college thrown into the line up, and that of course makes a valuable final product, if some of the PE actions also came over to it. At the time I'm speaking to you, this has not been completely released. But it shouldn't give you any trouble at all. Just those public courses and so on, right over there. Right over there, bingo, into the academy or department of training. And you'll find they're better cared for.

22.) The troubles with HATS can be solved on a gradient:

When that was that way, by the way, I have reports on when it was that way, the public coming in and running into students who were all enthusiastic and in good shape, and had status with them. Then the public had already managed to reach and withdraw. So the organizational pattern, the organizational pattern with which you're dealing, and the OEC which you study, are all of a piece. And there's nothing out of line with any of these patterns. You will occasionally have, something has moved to another division and will have the wrong department or divisional designation on it. That could even be corrected up, because the functions in actual fact haven't much changed. Therefore there is a tremendous wealth of information and technology which has been developed, all of which is of infinite use to the org officer, and he is rich in terms of theory and technology of organization, and particularly rich with the theory and technology of the org product officer system.

1. INSTANT HATTING

An organization is liable to organize forever without producing anything. An organization is liable to try to produce forever without organizing anything. Both of these things are a hideous crime, because both of them will crash. You can't continue to produce without organizing it, you can't continue to organize without producing.

2. MINI HATTING

The general conduct of the org officer is met to the degree that he is familiar with his OEC, he's familiar with the hats, with the expectancies from duties on the various posts, with the resources he has, with what the establishment is particularly composed of. And the product officer, oddly enough, has to know all that better than the org officer. So if you find yourself going too far adrift or too far astray, either as product officer or an org officer, you do have a tremendous amount of material which can be reviewed. And that material is not out of line, and its theories are definitely not out of line. There's nothing, nothing been thrown away in it at all.

3. FULL HATTING

1970 was such a stellar year in the advancement of organizational technology that you would immediately expect it would throw everything away. Well, there's a consistency in it all, consistency in it all. It just showed up the importances, and how an evolution of it could take place.

23.) INSTANT-HAT is verbal-orient, tell duties - flows - what to do.

There is another system on the org/product officer system that I must mention, in closing. And that system is simply the triangular system. That is where you have a very big organization, and until you had this unit up to where you were clicking along at around twenty-five, thirty thousand dollar-type org, you wouldn't really want this type of system, because it's a trifle cumbersome. And that is the triangular system by which the org officer and the product officer are handled by an executive director or commanding Now what happens there is that the product officer goes straight along with the duties as he has, and then he has the various problems which he is running into, or what he wants, or what he can think of, or what he's trying to get through. And the executive director at that time is the planning officer. Now I want to point out to you that the planning officer up to that time, on the lineal system of just product officer to org officer, the planning officer is the product officer. He is the planning officer of, "Where the hell are we going? What we going to do?"

MINI HAT is a basic small pack which HCO comes around and hats the staffmembers on in about 30 minutes.

But the commanding officer, if he was operating with a product officer and an org officer, would be the planning officer. And he's the planning and coordinating officer. That is the way we are running the Flag bureau. We sort of run a mixture. It's a sort of a half and half. When we take a whole continental area and all the chips are down and that sort of thing is, why then I will step in as commanding officer and planning. And then I will take it up so that we get a plan of overall projects, and so on.

FULL HAT is the Checksheet packs, books, demos, drills of the post to be done in study time.

So that it would be, actually, in a lineal system it would be the product officer who did that. He would be wearing, he would be double hatted. And where there is no, where the triangular system isn't in, the product officer is always double hatted as the commanding officer or executive director.

24.) When a person is fully hatted, he gets a Cert from C & A.

In any org that you're running at this particular moment, the lineal system would be the one you are using. But I wish to call to your attention that at the time when you have a product officer and an org officer, and they are working with a commanding officer or executive director, then you also need the rest of the frills. And the rest of the frills are a PR officer, who is a staff officer. He's not down in any division, he's handling the human emotion and reaction and you're going to start running into plenty of that. And you've got to have messengers or runners. That becomes a necessity. You would have to have an executive director's secretary who is shared to some degree in use, or as a guidance factor or coordinative factor with the product officer. And you've got quite a little staff.

25.) Now the Org Officer is not just "inhumanly" interested in "the organization". HE is interested in the individual staffmember.

I'll just name them off for you. There's commanding officer, product officer, org officer, staff PR officer, and messengers, and secretary. The only plurality there is messenger. You can't expect a messenger actually to stay on duty forever. Anybody who tries to put a messenger on duty at eight o'clock in the morning and take them off at six o'clock at night's got rocks in his head, because what he's going to do, he's going to spend periods when he doesn't have any messenger, and if he's depending on messengers and so on, why he couldn't do it. But it takes messengers in order to handle anything rapidly enough.

26.) How is he doing? How is he getting on? Is he able to do his job? Is his health maintaining? Is the post overloaded? Does he need help? Is the post empty or no traffic flow coming or it's piling up? This all adds up to: DETECTION OF A DECLINE (PROD 3)

Of course I'm doing, as usual, the Roman running three chariots simultaneously from a center horse, with the posts somewhat empty here and there along the line up. And that's done because of the expansion factor. I suppose some day it will all be improved, and it will all be perfect. I don't see it in the foreseeable future.

27.) He doesn't take up their time. It's brief, but he must know what all posts are SUPPOSED to be doing so he can detect a DEPARTURE from the IDEAL SCENE.

But actually the system which we are running on right now and getting into shape is actually three, a three org system. Commanding officer of three orgs simultaneously, each one with a pair. That is the product officer and an organizing officer. And with a bounteous number of messengers, and with excellent secretarial counselor-type back up. And one of those orgs right now, the ship org, is running solo at this particular moment. That is to say, there's a commanding officer but not; in essence a commanding officer who is not backed up by an organizing officer, and who at this moment doesn't even have an HCO to establish anything. And I don't know where that's going to go, but I know very well from where I look that at any given instant that there will be a small beginning little whistle of steam, which gradually goes into a high roar, because something, something wild will take place unless that is organized up.

28.) He's interested also in them as human beings - are they getting paid?, do they have troubles? - you may think this is a Chaplin Hat, but it's also the Org Officers, because if just the Chaplin did it, the O/O wouldn't get the information.

You can always anticipate something that, an area that isn't organized to some degree will cave in. So you've got to, as an organizing officer, anticipate the fact. You can look at an area and you say, "That isn't well enough organized, so therefore we can only let it go so long before there will be a boom."

29.) If he doesn't get the info, he can't REPAIR or ANTICIPATE a DECLINE.

Now any time you try to increase the traffic on a line, and you don't increase the organizing functions on the line rapidly enough, or somebody drops the ball in the process of increasing those organizing actions, at that moment you do get a boom. It goes boom. And these are the periods when you've got to have a PR with his coded questions that can be decoded so we can find out what it is, so we can get a program in the thing while the organizing officer immediately gets a hold of this one and that one, and cools off the existing tempers. And you get instant hatting right away, and comm ev the HCOAS. Fast, fast, fast you see, because when it's let go you can operate on this principle, the longer you let it go the bigger the boom. And that is a definite operating principle.

30.) Thus he couldn't get Prod 3 - The Correction of the Establishment.

If you don't believe that, we had it all taped out many, many months ago what we were going to do. And it was for a period there when we did not put an organizational pattern together. And Ken and I were discussing this, and we should really organize this, and we really should take this organizational step. But at that particular time were unwilling to take the step due to some of the scarcities of personnel. And I don't know, I think we let it go for about six or seven days, and all of a sudden, boom! And now we had to put it all together in just no time at all. And the other principle is, the longer you neglect it, the more frantically you're going to have to work to salvage it. So foresight really pays off, and that's why the org officer should be way ahead of the product officer.

31.) He also inspects the Establishment on his tour - cleanliness?, is MEST in good order?, enough space?, files backlogged?, etc.

And he gets way ahead, I call to your attention again, by picking got five people here who are eligible to be executive directors in a pinch, and I've got six people who are triple hatted. That is to say they're on a single post, but they've been checked out on all of the hats in their particular area. Isn't that nice? And so on, now if we just check them out on all the hats of a couple of more divisions here, we possibly will have an org officer here. Ah, that's nice. Goodies." And that is the think which has to be back of that which puts the org officer ahead of the product officer. In poverty it is always very easy to starve to death very quickly.

32.) He may find out that about 30% of the org is misposted!

And there's something I must mention to you in, actually in closing. Something I must mention to you. And that is that there's a make/break point of an org. There's a make/break point. And when an organization drops below a certain volume, a certain income and a certain personnel level, it is in the break point. And it not only breaks itself, it breaks the people in it.

33.) He has to decide if all those HFA (held from above) posts are really necessary, or should some be filled to relieve a load, or would the functions be done better with a reorganization - Prod 3 again.

Now when you start to getting people trying to blow because of overload, and they can't cope with it and that sort of thing, you are definitely, definitely in the break area. And when you see a lot of trouble and strain and stress, you are in the break area.

34.) He (O/O) is able to order all persons responsible for Establishment, so uses his authority to arrest the decline, and get the area back to the ideal scene or even higher to a NEW ideal scene.

Now the break might not be right where you are. It might be on an extensional line. You may have very overburdened lines without recognizing it, which, those lines are extensional outside the organization. Now that would be particularly true of a bureau. A Flag bureau or a liaison bureau set up is peculiarly liable to stresses which aren't easily locatable inside the org, because the stresses are on its traffic lines. Because where it has any responsibilities for organization of outside areas at all, those stresses show up inside the organization. So everything appears to be OK as far as personnel are concerned, and that sort of thing are concerned, but there's internal stress. You're actually in a break area. And that is the time to organize like hell, to promote like mad, and to push up your accumulation of resources at great speed.

35.) Now the P/O is getting products all this time and he makes notes of flubby areas and passes them to the O/O. The O/O, by doing these inspection tours, knows exactly where unutilized people and MEST are, so can handle quickly to get them moved over to beef up the Production areas, thus arresting the decline.

Whenever you find yourself in that; and every Scientology org in the world as I speak at this moment is running below its make point. The make point of a Scientology organization where it's really rolling in cream and so on, is probably somewhere in the vicinity of about a twenty thousand GI. And if you're not doing that, then you're under strain, and very, very heavy strain. And the people inside the organization will be under strain. And then you can expect that to dwindle. Whatever you've got will dwindle, rather than increase, unless you take efforts to actually effectively push it up to the make point.

36.) The first things that the O/O usually detects as wrong is the person's HAT.

Now it's nothing very serious, you just make up your mind that we're going to expand this establishment up past the make point. For instance, the accumulated actions of an org like the Los Angeles org at this particular time, have not added up to moving itself into any zone of make. It got into the break point, and it's suddenly grabbed from every direction, and they're putting it back together again. But it is the money made by the individual staff member that determines your make/break point. And it's the old qual stat. And it actually isn't a term of sums of money. You can just lay it aside. I said that that was in that zone, and it is in that zone. You can lay that aside as being, that's only contemporary. Who knows but what tomorrow a barrel load of money will buy a loaf of bread and no more?

37.) Ex: Trouble with Success Stories - O/O will know either no one is there or there is trouble with the HAT.

The make/break point and so on is dependent on the amount of money made by the individual staff member, and when it is too high you will find yourself in a break point, and if it's too low you'll find yourself in a break point. If you're counting on every individual staff member to pull in fifty-five hundred dollars a week for the organization, you are in too high a band. And there will be a little bit of a crack start showing up along that line, because you haven't put enough organization there to make that much money. And if it's too low, you've got too much and too inefficient an organization there, and its basis are too bad if it's down at the lower end of the band. And I can tell you that through 1969 the point of membership in orgs was sixteen to eighteen pounds per staff member. Let's look that over. That was the international, sixteen to eighteen pounds per staff member. That isn't even, wasn't even good pay for a Scientology org member out in the society. He couldn't even support himself at that, much less support the organization. So, that organization must have been absolutely product gone. They couldn't have had any product at all. Do you see what I mean? I'm giving you the actual data.

38.) 99% of the time its HATS. So the O/O must be an expert at doing instant hats.

Now at this time I instantly became very interested in this network. My ears went up, boom. And this was about, a little over a year ago that I saw what this trend was and I said that they're running organizationally at so low a level that they won't make it. And this is going to crack up somewhere along the line, so we'll bolster it up. And that was the LRH program number one, programs that you saw going out at that particular time were trying to lift that up, trying to lift that up and hold the fort until we could get a better basis of organization which could bring this about. The why of that was lack of products. They were not making products. And the products they were making were very often too poorly costed. Just, just insufficient volume, insufficient quality, and gave you insufficient viability. So that old qual stat will have to be restored.

39.) If an O/O needs to make an instant transfer to fill a post, he gets an authorization from HCO AFTER the fact. (No case gain or PTS persons should not be on Public Lines - route them to Qual, then onto a backlines job.)

Now, guess what? I don't know what it is at this exact instant, but all the members of the Sea Org, in orgs or not in orgs at this particular instant; well this is a figure that's taken from some considerable time ago actually measured up; but it counted all the people in the Sea Org and the gross income of the Sea Org, and it was fabulously high. The highest income per staff member ever made in the Sea Org was fifty-five hundred dollars. They were pretty high, heavily under strain too, but they were doing it.

40.) The O/O gets things authorized AFTER they are done. An O/O who "waits for approval" is very "safe" - UNTIL you see his stats.

Now the one, when I surveyed the thing, I said at this instant; not true; when I surveyed this last, and I don't guarantee the absolute accuracy of it and so on, but it was five hundred, about five hundred and twenty dollars for every person in the Sea Org on ships, in orgs and everything else, per Sea Org member, not per staff member. Now this shows there must be some outness.

41.) The failure to PUBLISH these actions is a big fault - and this is what the "Orders of the Day" (OOD's) are for. This keeps the team informed.

Now one of the outnesses is, is that the Scientology org does not have sufficiently large packages to sell. It is selling right now hours, which might not be wise. It ought to sell results of some kind or another, it ought to sell packages. And it could rescue itself very easily by selling training, which isn't cut rate training.

42.) The P/O & O/O have the big space in the OOD's. If they don't keep the org informed, all hell breaks loose.

Do you know that the Los Angeles organization was selling courses for as little as thirty(c)five dollars apiece, actual cash received? They had internal systems of cutatives, so that there was thisa and thata, and that consideration. And then just a failure to walk around and collect the money and so on. And a whole series of their invoices and so on were inspected a few months ago, and it showed that, that somebody just had rocks in his head. And the org was having a great deal of trouble, and they were selling courses, but having sold the course they weren't really delivering the course. But what they sold the course for was staggering. Through some kind of internal think or arrangements or peculiarities and so on; I'm not trying to brand one org that's being particularly bad. I imagine this was fairly general. You could get a Dianetics course, thirty(c)five dollars, and so on.

43.) To NOT inform, sows little mysteries around the org and causes confusion.

Now how they managed this I don't know. But there could be, even when you have a package, and even when the package will bring in adequate income to support the org, things can happen internally in the organization, so the resource never, the valuable final product doesn't occur. Well that is of great interest.

44.) The "Linear System" is: The P/O keeps notes, and passes them on to the O/O, of what needs to be investigated and handled in the course of getting the product.

Now one of the reasons why you have sophisticated technology at this particular time is because of the factors which I have been telling you, and also because of the difficulties of managing from a command position. These difficulties are sufficiently great that they're almost, were almost impossible. So therefore we had to have much higher, much more sophisticated technology, and 1970 was the year in which this was very carefully researched and developed. But your make/break part of your organization is improved to the degree that the policy and technology of Scientology is known and employed in the operation of that organization. And this is your first factor that you have to learn.

The O/O's stats & reputation depends on the REDUCTION of these flubs.

With some horror just a few minutes ago, just a few minutes before the lecture, I was looking at an otherwise originated policy letter which caved in a corner of one of our finance systems. And now I have got to run this down, and round this up, and cancel this thing out in a hurry.

45.) If the notes of the P/O are the same week after week, the O/O isn't doing his job.

Now you occasionally in the field will get an order, rarely, but you'll get them. An order or a policy or a directive or an ED which runs contrary to your production, and which makes your production difficult. You would be very remiss in your duties if you did not instantly call this to attention, rapidly. There is even a policy by which a destructive order can be halted on the lines.

46.) There are SOME areas that don't get handled, as absolutes are not obtainable, and some other factors may come into it. So the P/O notes are NOT orders, they are indicators, observations, and what he thinks is wrong. The O/O must find REALLY what is wrong and fix it.

For instance, in the middle of the Dianetics course installation, in the Dianetics course you have a statement, when it was released, "Do not drop any Scientology action which you have at this particular time." A couple of PLs, not written by me, and some directives and so forth went out, and in the southern United States you had a belief; the south western United States there was a belief that if anybody audited Scientology grades on anyone that he was committing a high crime, and would be liable to comm ev. Now who the hell put that out, I don't know. And yet that was into the teeth of the actual statement made on the HDC tape when it was made, and on the ED which released it. And for god sakes, don't drop any Scientology actions you are doing, just because we're giving you Dianetics.

47.) If the P/O doesn't let the O/O know what he is doing, the O/O may thing he is tearing apart the org as fast as it is being put there.

So what was the broad spread action? To drop every single Scientology action that was being done. There was even a couple of policy letters originated that got by and got circulated, which canceled those things out, and which messes it up, oh my god! So you must assume that somewhere along your lines you will have somebody who finds it very satisfactory to interrupt forward progress. The writing of the current fashion, the writing of the current fad does more to destroy your stats than anything else you could do.

48.) In the O/O's daily tour, he also notes the condition of supplies and equipment, the busyness & lack of it of personell, the condition of the communication lines, etc.

Yesterday it was true too, and yet man, because of his immediate concern with present time is continuously throwing away what he has in return for what he hopes to have. And it's a sort of an idiot game. Your resources are policy and HCOBs. Do you know that this moment we have just put on a check sheet, I don't know the date of this congress, it must be in the early sixties. Ken could tell me. The State of Man Congress. That's it, '59. We have just put it on a check sheet for a very high upper level course, The State of Man Congress. You haven't any idea of the, of the, what you could do with the resources. If you don't know what those resources are, why of course they won't be utilized, and you ride off in some high hopes of something. Because all the auditors in the HGC flub a Dianetic session, all of a sudden why some brand new technique is looked upon to solve all the cases in the neighborhood, any one of which would solve if anybody ever read the textbook and taught anybody the textbook on Dianetics in the first place.

49.) He would also have to see that the hatting programs, study time, HCO minihats, and Qual were all progressing so that eventually the org can get fully hatted.

The highest breakthrough we have at this moment is covered in full, in the early sixties. And the only thing that's happened with this breakthrough is we have used it to its totality, and have audited it with some new methods of handling a session, which make it come off smoothly enough. Only one new principle has been developed, but there are two new methods of auditing to make it smoother. But the whole theory of it is back there in the early sixties. Now that's amazing, isn't it? Now you're basically in the business of knowledge, as the one thing that you are putting out. And it's knowledge of self. So whatever other valuable final product you have is knowledge. And you would be absolutely startled, but a fellow who is a Class X in training at this moment got stopped by me the other day, and given, when he was asking me questions about why something was happening about a low TA, was told very directly, very directly and very forcefully that he'd damn well better go back and read the Original Thesis. He hadn't ever understood what happened in this session. I've had C/Ss who couldn't audit because they did not know the basic books. Therefore, you then basically are purveying knowledge. So how do you expect to succeed without your mimeo files? How do you expect to succeed without your book store absolutely crammed to the gunnels? How do you expect to succeed without every tape in that place, and packages for sale, that you possibly can lay your hands on? Because you're basically purveying knowledge.

50.) He also is interested in Major Courses to train Auditors for the Org. The production started off with a Course Sup to train Auditors to audit the pc's, so this must be kept up for EXPANSION.

When we went over a whole series of franchises we picked out the most successful franchises. And we asked the fellow to write up what made it so successful. At the beginning of ever meeting that he had with his public on a PE level he read them a policy letter, almost regardless of what it was all about. And he got tremendous, he was just a howling success. So now you start comparing this with empty mimeograph files, with packs with holes in them, and you will see what causes your make/break point. You are not spending your primary asset, which is knowledge. And we're not dealing with the kind of knowledge which was true in '61 but was not true in '62. There's very little of that on the track, and it was all corrected out not too long ago. There are tapes beyond belief, the libraries and so forth which we have.

51.) The SO suffers from not doing this, so that in AOs, non-SO have to hold the Top tech Posts. This is lack of long range planning.

So your organizing officer, your organizing officer must recognize that his first asset that he looks on as goodies is all that space taken up there with mimeo files. All that space taken up there with packs. And all of that space taken up in the book store with basic books, and so on. There's resources, and that's where his resources begin. His resources don't even begin with people. The people are all over the place, but they're worth nothing to anybody unless the knowledge is put out. And that is the basic business you're in.

52.) We have an old policy here on Flag regarding CLO - "to always send out a better trained team than the last team that wend there".

And if an org officer mistakes, you look it over, you will agree with me. I'm not just beating drum for anything of the sort. You look it over here, and you'll find out that you've got a guy in off the street, and you put him on as a clerk or a course administrator. Realize that you don't look on him as valuable at all until he has been checked out and trained, and this. Realize that you always automatically and very often very mistakenly make your Class VIII the HES, because he knows more, knowledge. So knowledge is what makes the difference. And the organizing officer is basically dealing with knowledgeable people, and so his basic asset and basic resource of course is knowledge. And he takes off from there, and then he gets that applied to people, and then the next thing you know, he'll see a thirty-two story building Scientology in gold letters across the front of it. It's more the org officer's basic hat than it is the product officer's, because the product officer doesn't look on a book ordered from some place or another as a product, he looks on a book sold as a product. But the book ordered is the organizing officer's worry.

53.) This works toward the Ideal Scene.

Now of course the product officer could say, "Look, I can't sell any books until some books have been ordered and delivered." New York is failing at this moment. Everyone walking around in circles wondering, "Why is New York failing?" I happen to know the missing books that they do not have in New York, and they're all of the basic ones. They're just not there, they don't have them. We should be at Flag bureau, and probably will be, and there is an aide at this moment in charge of Pubs org pushing like screaming crazy to get a lot of basic titles back in print, and to get them into print in the U.S. The world has all of a sudden decided not only to be exclusive with its currency, but also with its literature. U.S. books can't come into Europe, European books can't go into the U.S. now. Very difficult. They can get in on individual book sales, but trying to get them in in any quantity at all is very terrible, and copy rights go to pieces if you do, and so on. So you're up against this.

54.) The "Art Formula" applies here - about "Perfection" - you can work so hard for "perfection" that nothing ever gets DONE. So it's always BETTER than the last, a CLOSER approach to the Ideal Scene, etc., to EXPAND.

So what, what basically, what basically is the basic resource? The individual walks in off the street, until he has been checked out, until he's been genned in, until he knows the administrative knowledge of the organization and so forth, is not a resource. He is just a resource to the point where he may be worth something, he may not be worth something. Now when he's checked out, so therefore knowledge is a dominant factor in the success of an org officer. And I want to point this out, not because of any other reason than when it isn't there he will fail. Time and time and time again this has been proved over and over and over and over.

55.) The O/O should work on this basis, always getting the area organized better and better and more established. He should NOT go for "perfection" at great time and expense.

So in just winding this up I want to put this, put this home. As far as, as far as the product officer is concerned, he won't get anyplace unless he's got some tapes going, every night, every night, every night, every night, every night, every night, every night, every night, every night, every night. We don't care whether he was running an HAS course or PE course or something, he ought to have some tapes going, every night, every night, every night, every night. Public tapes, on and on and on.

Now, you say, "Well," and so on. Somebody's making a resurgence in an org right now. They've gotten a hold of Ron's Journal '67, and they're just playing it every night. And it seems to me like they're making a terrible scarcity of the situation. But then we found out that the only tapes available were a mixed bag. A mixed bag. There were some excerpts from some various congresses, somebody picks all the cherries off the ice cream, you know? Or just one or two cherries off several ice creams, ruins several ice creams to have three cherries, or something. I don't know what the think is. But we're trying right now at the Flag bureau to do everything we can to bust these lines and to get distribution and so on. It might be done faster, it might be done this, it might be done that. We have certain various logistic problems and so on which we have to overcome. We're trying to make this thing available, but unless somebody at the other end of the line in the person of the org officer recognizes clearly that he is dealing with knowledge, and if he hasn't got it in book form, and if he hasn't got it in pack form, and if he can't make up packs out of any mimeograph set up, he's had it.

56.) Also the O/O should get a program going for longer term admin training of execs thru OEC & FEBC. This would come after full hatting.

Now it's true enough, he could probably get a few sets or one set of an OEC course. He could get that set, and you can see now the trying to do something with this bound set. Well he'd have to have several sets. Well good, so he could have several sets, but it doesn't give him actually the loose leafed stuff that he needs. Therefore, an org officer's whipped at once that he doesn't know what he's doing, and he can't immediately impart and directly and immediately gen in and impart to his staff members rapidly. And of course he could never back up a product officer.

57.) The Tech and Qual O/Os will also insist on training for mayor Tech Courses, and this should also be done, Class VI, VII, VIII, C/S Courses, etc.

And if you want to know what is wrong with the make/break point of any organization, is Scientology orgs have dropped low on their resources of knowledge that they can hand around and use, at this particular moment, and the knowledge which is in practice and which is available to them as a practiced knowledge in the hands of auditors and instructors inside the org and in their neighborhood.

58.) An Organization consists of TRAINED Persons ideally. It isn't composed of dead bodies.

Thank you. Thank you very much. Good night now.

59.) We do a lot of TRAINING in the SO. In Scn. Orgs It's nowhere near what it used to be in the early days, but I'm getting it going again.

60.) Remember there is no scarcity of PEOPLE today. Maybe there was in 1705 - but not today. The scarcist thing in the world today is a HAT.

61.) These "welfare" people in America and other areas - do you think they are happy being relegated to a HATLESS LIFE? No!

62.) Any time you have welfare, you have unhappy people, and an incipient revolution.

63.) A group has a tendency to "EXCLUDE", and it shouldn't... - particularly a group such as ours.

64.) You raise your Security Standards too high, and you don't get any people at all. And you put them too low, and you have "wild ones" on your hands.

65.) Somewhere in-between is the right level of security - it hasn't been yet found - but what it takes is an alert HCO.

66.) I've seen people make it on a post after several instant hattings and practical - and I've seen some get worse and worse. These are "cases" and need processing.

67.) We have the Org Series-Organizational Misunderstoods list to help straighten out people. It's a list of Management terms to be cleared - given in the Org Series.

68.) We have flubless tech here at Flag and you in the outer orgs will e in "clover" when you have the tech standards to allow your org to deliver the L-10 in the Department of Special Cases.

69.) The Standard of Field Audition at this moment forbids it utterly.

70.) So we've got to export course supervisors and the tech when the orgs get qualified to have it.

71.) The principle we work on is: "Hire lots of people, and retain those who make it."

72.) An indicator of someone who can't make it as staff is their study stats. Not "slow" or "fast", but THEY CAN'T STUDY AT ALL. That's also a case.

73.) This shows up in your hatting actions. The STUDY RATE, or ABILITY TO APPLY what one learns, is another indicator for the O/O.

74.) A personal observation of the post combined with the study rate of the person gives an O/O data on how to select, transfer, or remove personell.

75.) The fact of "going to study or not" is NOT a valid indicator. Sometimes people on heavy traffic posts feel responsible, so skip study to handle the post.

76.) In this case, you point out to them that some of the cope & problems of the post will be lessened by going to study on his study time. VERY true!

77.) One of the things you find is a person has 8 incomplete courses! The solution is to finish them all one by one, taking them in the order of "which takes the least time to finish?" "Good." "Finish it." & DON'T let them start a new course.

78.) The Org Officer must try to finish any orders given by the Product Officer in the time given.

79.) If one doesn't have an ESTABLISHMENT OFFICER - different from an O/O - it isn't likely that any long-range program will ever get done.

80.) The Establishment Officer can be the HCO AS. Then the O/O will find it easier to get the P/O backed up as time goes on - if the Esto is doing his job of putting Prod 1 there.

81.) The O/O who WAITS for orders is already BEHIND the P/O and he ought to be AHEAD of him.

82.) The O/O has to "run like everything" just to keep even with the P/O.

83.) I always like to be "saucy" as a subordinate - but fully competent - and I always end up in Command of an area. I used to think something was wrong with me, but really it's the best way to hold a junior post.

84.) It's to answer all orders with "Oh, that's done." "We already handled that." But it must be TRUE. I could organize and handle things on a ship while most others were eating a sandwich. Then I would just be insouciant, a "gold-brick", and nonchalant. I ended up RUNNING the ship as 3rd in Command.

85.) So the Product Officer has the "Big Ideas" and "Bright Ideas" to sell more service and get people in. The O/O would rapidly figure out what it would take to deliver at that projected volume and gets it set up before hand, so when the P/O tells him that 40 new students and 60 pc's are arriving next week - the O/O casually tells him he has already got a bigger courseroom and more auditing rooms, auditors and tech services people ready to handle, and HATTED to do so.

86.) The Product Officer is in the business of driving people into the org - and the O/O has to put an org there to handle them.

87.) The O/O may hire field auditors, get FSMs to help handle a flow, plan to audit people in their rented rooms, etc. He is very resourceful.

88.) The O/O prevents the decline of the EXISTING org and forces HCO to put enough MORE Establishment there to HANDLE the P/O's increased volume. That's the 1, 2, 3, of it.

89.) The O/O extrapolates the curve of the existing graphs of production to see where they will be, say, 1 year from now. Then he sees what is necessary to produce that. Then he gets it started NOW to obtain the personell, auditors, space, equipment, etc. That's how he stays ahead of the P/O.

90.) If the curve is downward, there won't be any org soon, so he ARRESTS the decline.

91.) When the O/O corrects these Org areas he informs the P/O so there is a backflow there. And he gets CSW OKs for big projects from the P/O (and E/D). This is the linear system where the P/O IS the E/D.

92.) This all comes under the heading of CAPABILITY. The P/O must know the capability of the org.

93.) The "capability" is in the hands of the O/O - not to limit it, but to improve and extend it.

94.) "Capability" implies there are RESOURCES TO DO PRODUCTION WITH.

95.) The P/Os "Black Dog of Karnak" is Resources - he never seems to have enough. So the O/O should keep him advised of Resources.

96.) Resources of an Org are:

- Auditors - Auditors that can be hired - Supervisors - Auditing Rooms - Materials - E-Meters - Books - Course Rooms - etc.

97.) On an Eval, you do a "Resources Estimate" to find out if you have resources to make a handling with. And you have to tailor the handling to fit the Resources, otherwise it's unreal and can't be done.

98.) The ABILITY "to return thins to the Ideal Scene" depends on what Resources you have.