1.) As the Product Officer gets products, he stacks up more resources in terms of money - but he may not have ANY resources in terms of TRAINED PERSONEL.

2.) The SO is expanding since 67, 68 - Now have 3 AOs, 3 SHs, more orgs, more franchises. The stats have become more "compartmented" but over all, added up, Scientology is expanding and is now bigger than even the '68 boom period.

3.) The point where the strain shows up is the SO, because it doesn't have enough personell to quite keep up with it.

4.) The orgs could be doing better, but franchise is doing well.

5.) In Washington DC, early days, they split off their personell to set up feeder orgs, but the feeders became independent so the result was that Washington became weaker in trained personell.

6.) The SO is now running 3 AOs. They make the same income as one AO when combinded, but it's 3 Establishments to care for.

7.) The "better idea" now to handle this is force ALL of them to be BIG! (Don't contract, or "go back" to a former size or operating basis.)

8.) The "ban" in Australia was totally ineffective. We have our books back and orgs are operating again. It's a dead "statute" (or law), because it isn't enforced.

9.) If you don't continue to pile up resources in terms of trained staff, space, and money - that is what is going to break your back - because you are EXPANDING and to keep up with it you need RESOURCES.

10.) Don't plan on a "level" graph. Keep making resources - trained hatted people, allegiance in the field, etc.

11.) Auditors Assn, handling ARCB in the field, reviews done, etc. will keep you expanding when the strain comes - (those people, who hat RESULTS, will HELP.)

12.) The Org Officer has to keep track of RESOURCES. Especially TRAINED people. He should be "greedy". He should stack them up - Auditors, Books, Money, etc. The Product Officer keeps making products, but the O/O should keep track of them as RESOURCES for EXPANSION.

13.) OVER-hat as much as possible - a person who knows 3 hats is a better resource than a person who only knows ONE hat.

14.) Sudden "demands" can now be handled: Ex:

New Building? - OK - by the O/O:

Million Dollars? - OK.

20 Auditors? - OK.

15.) The O/O only falls behind when his resources are limited.

16.) He gets ahead by increasing and hoarding his resources.

17.) You don't wand a "miser" as an O/O who never lets go of the resources. You want a "provident" O/O who has resources for USE in future need.

18.) You can't expand unless you have resources. So pile them up and keep ahead of the game.

19.) In orgs I used to run, you find a lot of stuff piled up in the garage, never used. Was that a waste? No, it was just "providence" extended a little TOO far.

20.) If you looked around, you would ALSO see all the resources I DID use, and if you examined accounts you would see I also had high RESERVES OF MONEY in those periods. The staffs were also WELL AID at those times.

21.) So these are the criteria by which the O/O operates.

22.) He has to know what resources are: (Space, Furniture, Equipment, the Establishment Factors of the Org, any of these can be resources if not being utilized in current production.)

23.) But what happens to the Final Valuable Products of the Org? The Product Officer makes them, and THEN the O/O steps in and makes sure they become resources. That's how he gets AHEAD of the P/O

24.) If you open an O/Os desk and he has no list of potential auditors and sups & staff, then he is in poverty.

25.) The O/O tries to keep it all organized and org-boarded, until the Org Board gets in his road, then he handles as needed and gets an org board change approved after the fact. Otherwise he won't be able to handle weak points which show up during expansion.

26.) You need an Org Board that won't blow up at the joints when expansion occurs.

27.) The 1967 Org Board works well on expansion. If can work from 1, 2 or 3 people on it up to about 100.000 staff.

28.) So you don't have to vary the pattern of the org board much - that's the reason it was planned - for EXPANSION.

29.) The O/O must be travelling AHEAD of the Product Officer.

30.) At peak periods, they work as a team - together. At these heavy traffic periods they must not be distant from one another.

31.) The O/O should be so familar with the personnel of an org that he would know at any time what they are all doing.

32.) The 2. Aug. 65 PL on 7 div org board gives the pattern, or "Form of the Org". It says what the HES does and what the OES does. That was the first "borning" of the Prod-Org System. When Orgs violated that, they became harder to manage. Really the HES was an O/O and the OES was a Product Officer.

OES (P/O) - money, auditors, pcs, field products. - Divs 3, 4, 5, 6.

HES (O/O) - hatting, personnel, form of org, files, names and ESTATES in Div 7 (Establishment). - Divs 7, 1, 2.

J. It (2 Aug. 65) contains the elements of the system we are now working with. It was based on an older system. But the '67 org board is a PRESERVATION of the system also. So it is evolving.

33.) The '67 org board worked very well at St. Hill during his peak periods. MSH copied it down with all its functions & corrections.

34.) I found that if a section is on the wrong part of an org board you get into trouble at once.

35.) We adjusted these points, so the 1967 Org Board is a fully tested Org Board.

36.) We lost the manuscript of the Div 3 from that time but have gotten it more or less correct.

37.) Distribution now goes a bit funny because new tech has gone in there (PR Tech) and its PRODUCT was not fully anticipated at that time (67).

38.) The product of Div 6 is now SCIENTOLOGISTS.

39.) Then the Scientologists have products of sold books, contracted people, interested people sent in, etc.

40.) You can use the the new 3 Public Div Org Board but I will tell you right now the PE and pub. div. training has to be back in DIV 4 because they have the Supervisors, Tech Services, etc. in Tech Div.

41.) You will also have a Staff College or Hatting College in Tech Div. for the same reason.

42.) Just kick the Public or other curses right over into Training Dept. as they will e better cared for.

43.) The public get into the Training Dept. and the students there on upper courses then have status and tend to interest public in further training. (It gives a Reach-Withdraw for the Public all IN the org.)

44.) The Org pattern and OEC are all of a piece. Maybe a Div-Dept. designation has changed here and there, but the functions are usually the same.

45.) The O/O is RICH in Organizational Tech & Material - the OEC, Management Series, etc. And rich in information on the Org Product system.

46.) An org is liable to try to Organize forever without Producing - or tries to Produce forever without Organizing. Both are hideous CRIMES.

47.) Because both will crash. You can't continue to Organize without Producing and you can't continue to Produce without organizing it.

48.) The general conduct of the O/O is met to the degree he is familiar with: OEC, Hats, duties, resources, Establishment.

49.) The Product Officer has to know all that BETTER than the O/O.

50.) If you as P/O or O/O go adrift, you have a lot of Policy there to Review to find out how to proceed.

51.) 1970 was a stellar year in Org Technology (Policy). You might suspect it "threw away" all the rest. NO. There is a CONSISTENCY in all of this. It just pointed up the IMPORTANCES of certain things and how an EVOLUTION can take place (of the 3rd Dynamic Tech).

52.) There is another system called the TRIANGULAR system. But it's for big orgs. You wouldn't wand this until you are producing around 20.000 to 30.000 Dollars a week of delivery. Because it's a bit cumbersome.

53.) The triangular system is one by which the Org Officer and Product Officer are HANDLED and SUPERVISED or COORDINATED by an Executive Director or Commanding Officer.

54.) In the lineal (line) system, the P/O is the Planning Officer.

55.) The C/O or E/D of an Org is the PLANNING and COORDINATING Officer. (On Flag Management, we use half-and-half. We have a P/O & O/O, but when a fast handling is needed for a Continent, I step in as C/O and give a plan and coordinate actions for the handling.)

56.) In any smaller org, the P/O is always the C/O or E/D as well.

57.) But when you put in the triangular system, you also put in the frills: A Staff PR Officer, messengers, and a Secretary for the C/O.

58.) The reason it's messengers, is because when things are moving fast, if you send one off, you don't have one until he gets back, so you wand more than one, so the flow can keep going rapidly.

59.) I'm doing the Roman Chariot trick of running 3 chariots from the center horse. I am the C/O of 3 Orgs on board (FAO, FB, & Ship) and have messengers and excellent secretarial-counselor service. At this point, the ship Org needs more HCO and Organizing.

60.) An area that isn't organized well, will cave in. You can predict that. It expands, weak points show up, somebody goofs - and crash!

61.) The longer you let it go, the bigger the "boom-crash"! So you have to get it organized better, use the PR Officer to find the buttons & tone for a handling, Comm EV The HCO AS for not establishing or recruiting, and handle.

62.) "The longer you neglect it, the more frantically you have to work to salvage it."

"The longer you let go, the bigger the crash."

These are two operating principles.

63.) Foresight pays off. The O/O has to be ahead of the P/O to prevent crashes and arrest declines.

64.) He thinks in terms of resources for expansion. More hatting, on several posts, to provide a quick replacement for a Div Head or Exec, etc.

65.) In poverty, it is always very easy to starve to death very quickly.

66.) There is an "Make-Break" point of an org. When it drops below a certain income, volume, & personel level it will "break" AND break the people in it.

67.) When you get people trying to "blow" because of overload and they can't cope with it - you are definitely in the "Break" area.

68.) Trouble, strain, stress are indicators of a "break" situation. The real trouble may not be RIGHT THERE, It may be on an extensional line - (like a bank cutting off the funds, or a cross-order from a network, etc.) A Bureau is suceptible to this - the stresses are not "in" the org, they are on its TRAFFIC LINES - because of its responsibility for external areas, Their stress can show up inside the org - it's NOT the personel of the bureau, they are OK. It's coming in on the LINES.

69.) That is the time to organize like mad, promote like hell, and push up your accumulation of resources at great speed.

70.) Every Scientology Org in the world in the moment I speak (Jan 71) is running below its "make" point.

71.) The "make" point of a Scientology Org is probably around a 20,000 Dollar/week GI with balanced delivery & other stats.

72.) If you are not doing that, there will be strain, and it will dwindle, unless you actively take efforts to push it up to the "make" point.

73.) You have to take the decision to EXPAND and push it up to the zone of "make".

74.) It's the money made by the individual staff member which determines the "make-break" point. It's the old Qual Stat - "GI divided by Staff".

75.) If it's too HIGH or too LOW, it's an indication of a "break" point. If too high - say 5000 per staff member, it means you haven't put enough organization there to make that much money and it will "crack". If too low, the staff is unproductive and Dev-T abounds so no products get produced, it's organized badly.

76.) In 1969, it was 16-18 Pounds per week International. (About 100 DM per week) That's not enough even for a staff member to support HIMSELF with - much less the organization.

77.) In that period there must not have been any product production, or it was done by only a few and the rest were UNORGANIZED HANGER-ONS. (An-hangers)

78.) I got alerted to this low stat (GI divided by staff) over one year ago, got out the LRH # 1 programs to hold the fort until we could get a better form of organization. (With this FEBC Tech)

79.) The "why" was lack of products. Insufficient volume & quality - and insufficient viability as a result.

80.) Whatever products that were produced, COST TOO MUCH of the org's time and resources.

81.) The highest income in the Sea Org ever made was 5500 Dollars (11,000 DM) per staff member per week. (AOLA - 1968 under Capt.W.B.Robertson) They were pretty much under strain but they were doing it.

82.) Recently, the Sea Org members divided into the Sea Org income gave ca. 520 Dollars (1040 DM) per week. Now that's ALL SO members, not just org staff at AO's. That is 10 x what the SCIENTOLOGY Orgs internationally did in 1969!

83.) One reason may be that Scientology Orgs do not sell "PACKAGES" or RESULTS. They sell "hours" of auditing. That might not be wise.

84.) Or they could rescue themselves by selling TRAINING which isn't "cut-rate" training.

85.) LA Org was selling courses for a little as 35 Dollars! All "cutatives" and just a failure to collect the money.

86.) Even though you sell a package of service, there may be internal difficulty so that the Final Valuable Product does not occur.

87.) So the reason you have now a sophisticated management technology is because of these factors and because of the difficulty of managing over a long distance line.

88.) 1970 was the year of this research and developement.

89.) YOUR "MAKE-BREAK" POINT OF THE ORGANIZATION IS IMPROVED TO THE DEGREE THAT SCIENTOLOGY TECHNOLOGY AND POLICY IS KNOWN AND EMPLOYED (APPLIED) IN THE ORGANIZATION'S OPERATION. THIS IS THE FIRST FACTOR YOU HAVE TO LEARN.

90.) I just found an other-originated policy that caved in a corner of our finance operations. Now I have to find out who, why and cancel it.

91.) Now occasionally you will get an order, ED, policy, or bulletin that runs counter to your PRODUCTION and makes it difficult. You must alert management to this at once. There is even a policy by which a Destructive Order can be halted. ("Orders, Query Of" - HCOPL)

92.) When I released the Dianetics Course, it says in the Pack: "Do not drop any Scientology actions you have in progress." In Southwestern US someone put out a "policy" that it was a "high crime" to audit Scientology Grades on people who hadn't done the Dianetics Auditing! Now WHO did that crazy thing, I don't know - but I WILL find out.

93.) You should be alert to those on your lines who try to destroy foreward progress.

94.) THE RIDING OF THE CURRENT "FASHION" or the CURRENT "FAD" DOES MORE TO DESTROY YOUR STATS THAN ANYTHING ELSE YOU COULD DO.

95.) MAN, IN HIS CONTINUAL, IMMEDIATE CONCERN WITH PRESENT TIME, IS CONTINOUSLY THROWING AWAY WHAT HE HAS IN RETURN FOR WHAT HE "HOPES TO HAVE".

96.) Your BASIC resources are POLICIES and HCOBs. Don't throw them away!

97.) We have just put the "State of Man" Congress from 1950 on very high level, upper level, course. It was a RESOURCE.

98.) If you don't know what your resources ARE, then they won't be utilized.

99.) Just because Auditors flub on Dianetics, you shouldn't look for a "new method". If they really understood the Dianetics book the cases would ALL resolve.

100.) The highest breakthrough we have at this time is covered in full in the early 60's. The only thing we have done is used it to its TOTALITY, and audited it with some new methods of handling a session which make it come off smoothly, only one new principle has been developed. But there are two new methods of auditing to make it smoother. But the theory of it is back there in the early "60's". (XDN" L's?)

101.) Basically you are in the business of KNOWLEDGE. It's the one thing you are putting out - KNOWLEDGE OF SELF. That IS a Final Valuable Product, no matter what other ones you have.

102.) A person who was a Class 10 asked me the other day and I referred him to "Dianetics the Original Thesis". (It was in regard to a Low TA case and not understanding why it audited a certain way.)

103.) I've hat C/Ses who couldn't audit or C/S because they did not know the basic books.

104.) Your are basically PURVEYING KNOWLEDGE. So how can you do this without your MIMEO FILES, YOUR BOOKS, TAPES, etc. crammed into the bookstore and shelves in the org?

105.) We analyzed a franchise who had the best stats - asked him for his successful actions - he read a POLICY LETTER at the beginning of each PE lecture! He had a howling success on sign ups for auditing and courses.

106.) Compare this to empty MIMEO files, packs with "holes" in them, etc. and you see what causes your "MAKE-BREAK" point.

107.) You are not spending your primary asset - which is KNOWLEDGE.

108.) We are not dealing with the kind of knowledge that "was" true last year and is "not" true this year. It's TRUE FOREVER and always has been TRUE.

109.) So an O/O must realize his primary asset is "all that space taken up by MIMEO FILES, PACKS, BOOKS and TAPES.

110.) There are TAPES beyond belief!

111.) Those are his RESOURCES, and that's where they begin. They don't begin with people.

112.) There are people all over the place - but they are worth nothing to anybody unless the KNOWLEDGE is put out, duplicated, and applied.

113.) THAT IS THE BASIC BUSINESS YOU ARE IN.

(Note: Making PLAYERS! BR)

114.) You choose people for posts usually because they KNOW MORE. What you are saying is they have a VFP of KNOWLEDGE.

115.) So the O/O is trying to get resources of KNOWLEDGABLE people - and thus his basic RESOURCE IS KNOWLEDGE.

117.) He then takes off from these, applies the ASSET of KNOWLEDGE to people, gets HATTED, TRAINED staff members - and soon he will see the 32 story building with "Scientology" across the front in Gold Letters.

118.) The BOOK ORDERED for the bookstore is the O/O's job.

The BOOK SOLD is the P/O's job.

119.) New York Org is failing now because of a lack of basic books for sale. I have a PUBS AIDE on it. Guess what? The world has decided to become exclusive with literature. US Books can't go to Europe. European books can't go to US. You have to get them reprinted IN the area you sell them.

120.) You CAN get them in on INDIVIDUAL ORDERS, but not in Quantity. Copyrights go to pieces, etc. They did the same thing with currencies (money).

121.) An individual off the street is not a resource until he's been checked out, genned in, hatted administratively.

122.) Therefore, KNOWLEDGE is a dominant factor in the success of an Org Officer.

123.) When it isn't there - he WILL FAIL.

124.) The P/O won't get anywhere unless he has ah LRH Tape Play EVERY NIGHT, on and on and on at the org at PE or Intro Lecture time.

125.) One Org. is playing Ron's Journal '67 every night. A bit of a scarcity. There are 1000's of tapes. But we find orgs don't have them! Or just a few - like the cherries on the top of the ice cream.

126.) So an O/O without resources of knowledge is beaten before he starts.

127.) Scientology Orgs at this time are doing badly because the resources of KNOWLEDGE in administration and tech are LOW, and the PRACTICE thereby suffers. (They cannot DEMONSTRATE THEIR COMPETENCE because COMPETENCE requires a professional APPLICATION of KNOWLEDGE.) You as FEBC's, are here to remedy that.

128.) Thank you very much.