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.

Hello. (Hello.) In view of the fact that the lectures the other day were popular, we decided we would repeat the performance just for your special benefit. It's the twenty-third of January AD 21, FEBC Flag.

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.

Now the reason why I want to talk to you however is not just to see your pleasant, smiling faces, which I am always happy to see, but because having cleared up this thing called a product officer, we are, as you would suppose, up against the next barricade.

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.

Now the product officer's first product is an org officer. The org officer's first product is an HCO AS. The HCO area secretary's first product is an HCO, and the first product of the HCO is the establishment. Imagine my horror during the last seventy-two hours to find I was dealing with people who didn't know what an establishment was. Horror. And I think it's because people get their attention stuck on bodies.

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.

Now many years ago we used to have some drills which were extremely interesting, which was pat your body, and feel your body, and look at your body, and look around the room and look at your body. You know that sort of thing? I think you'll have to run it, because all I find out an establishment consists of is some bodies. That of course would make a mortuary the ideal establishment.

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.

Now this is so gross that I think actually it's one of those points that has to be cleared on an org officer, because until some of these points were cleared, we did not find operation by the org officer effective at all. And when these; we already have a little case history on that; when this point was cleared, and why then it started to work out very well. So we've had a positive and a negative run on this, and the positive run in the Flag bureau was good, and the run actually that has occurred in the tech division FAO just now, was not good, by a long way. But, what happened was, we were letting the Flag bureau clarification of these points go along to see if they worked out, and since that time, why they have worked out. And, it has not been cleared up in the FAO, or the, that's the Flag admin org, or the FAO division four, that's the tech division, has not been cleared up in that sector, and it is running, you wouldn't believe it. So therefore, what I'm talking to you about is of very great importance. It is not slight. And the reason I called this lecture so suddenly was as I say, not to look at your bright and smiling faces, but to give you some information which you cannot live without.

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.

If you try to use this product/org officer system without this data, you're going to come a cropper as an executive director, a CO or a product officer, or an org officer, or an HCO sec, or an HCO, and not know why it all isn't working somehow. But it is something on the order of the auditor has forgotten to turn on his E-Meter. I mean, it's a grossness, but it apparently is something that needs pointing out, it is something that needs clearing, and it is something that needs drilling.

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.

Now the product officer can get confused enough in trying to differentiate between his job and his org officer's job, because of course he has a legion of problems and so on, which are bouncing up along his lines. He will find himself however running on a short term cope per products, and his products will get worse, and he will have more and more trouble, and he'll get very exhausted, and he'll eventually say, "This system doesn't work somehow, and it's too exhausting and it's too horrible." And he won't be able to sleep at night, and will be found prowling the streets or sitting in parks with his head in his hands, with over loads and ARC breaks, which can't be audited because he's too exhausted.

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.

The product officer Flag bureau and I had a talk about this when we saw, in the wee, small hours of the morning, when we saw that there was something wrong with this line up. And we discussed it, and kicked it back and forth, and used the practical experiences and applications which we had already had with regard to it. And we finally isolated it, and this is apparently it. And you see, we found the why, and now when we applied the why did it all work out? And the answer is yes. So I'm giving you a valid, tested result.

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.

Now this why can't be just brushed off as an org officer's ignorance of organization, or something of this sort. This is no shame, blame, regret on the org officer's side of it. It is just what does the org officer have to know? And what does he have to do? Because you see, he could know a hundred million details, and he actually doesn't have to.

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.

The way we were clarifying this originally is, the org officer was the cheerleader. Oh that shifted your gears in a hell of a hurry, didn't it? Yeah well, the org consists of bodies and hats. Yeah. Let's take a look at this, he's a cheerleader.

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?

Now in our orgs particularly, we are taking care of the problems of the world. Well who takes care of our people? The org officer. When they're over loaded and sick and caved in and need somebody to hold their hands, who is it? It's the org officer, naturally. When they're under paid and over worked, who handles it? It's the org officer, naturally. But to do this kind of thing, the org officer has to have; it isn't that he's just a chaplain, far from it. But that is one of the things he'd have to do. And that was the original little see-through. We all of a sudden saw through in discussing it, this point, of where the org officer might fail.

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.

The org officer, in communication continuously with the product officer can, he would go right ahead and pick up the speed of trying to get it organized in order to keep up with the product officer. That is for sure. And he actually should sort of run along ahead. We're going to increase the load on this division, production is going up, well the org officer should be in ahead of that. It's like your heavy traffic warning. The first one to pick that up would be the org officer. Not the product officer, that would be after the fact.

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?

So if the org officer does not pick this up in the first place, ahead of the product officer, you will get a sequence of booms and depressions, which will consist of this: Over load, lines break, somehow or other put it together, somehow. And over load, lines break, put it together, and so on, because there's no rule that every time loads increase why, those points of your organization which are weak blow up. And we've been observing that here for a long time.

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.

So the org officer is there to do product three, which is the correction of the establishment. Preferably before the fact, and certainly swiftly after the fact. And the org's org officer is there for that purpose. And the org officer of the division is there for that purpose, and he's a product three man. You say, "Yeah, well what do you mean product three?"

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.

There are four products. One, product one, establishment. Establishing the establishment. Product two is the product of the establishment. It's what does the establishment produce. Product three is the correction of the establishment itself. And product four is the correction of the product. Now these are just arbitrary figures and you could figure it all out backwards, and actually should do your org board backwards, you could rename all of these things, but these are numbers and so on. But just recognize what they are, they are simply the sequential numbers, more or less in order of writing the bulletin. I mean, there isn't any particular reason for those numbers. See? You could say, "Well they're one and two and three and four, and so on."

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.

So, there is no point actually in discussing the chicken and the egg problem. What comes first? The establishment or the product. What comes first? Well, what came first, the chicken or the egg? It's pretty obvious, pretty obvious that the egg came first, didn't it? Well the egg would have to come first, because otherwise there would have been a missing sequence that arrived at the chicken. So we have solved that old, ancient problem. Just look over your data series, perfectly true. There would have been omitted, omitted points of sequence, and an altered sequence of events if the chicken came first. So it's quite obvious.

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.

So actually probably, the product however does come first. A fellow goes out and he gets some leather, and he brings the leather in and gets an old kitchen knife and so on. He cuts himself a pair of sandals, and somebody else wants some sandals, so he scrounges some more leather and he cuts that up. And eventually why, making money from making sandals, he is able to purchase a better knife, and he can lay in more raw materials. But that better knife is when he starts into establishment. And then he gets an awl, and he's got more establishment, hasn't he? And he himself is gaining more expertise in how to do this, so of course that is more establishment. And gradually, out of the product arrives the establishment. And the funny part of it is, this is perfectly true. You could probably take a hundred thousand dollars, establish an org in New York City, and it'd promptly fail. We've done it. You wonder why we always insist that an org make its own way? And every once in a while we get; we've only had a couple of these in recent years. Somebody puts in a proposal that Flag pay three thousand dollars a week to support this org while it got on its feet; and we've had a couple like this. And believe me, if you want to run something backwards, do that. That's all great.

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."

Now of course big factories do this all the time, and they don't own themselves anymore. They're all owned by the bank. I wonder how they lost the whole lousy lot? Well they just did it backwards, that's all. And Mr. Henry Ford starts with the, a bicycle factory and winds up with the Ford Motor Company, which winds up with a lot of subsidiaries, so that the Ford Motor Company at any time might establish a subsidiary with the cash it has at hand, and it goes on and manufactures things. And I notice though, as time goes on, the more the reserves are taken out of the Ford Motor Company to establish a subsidiary to do this, that or the other thing, why the less the stockholders get, and the less belong to Mr. Ford. He isn't even there anymore.

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.

The point I'm making is, is there is no point at which the flow can be reversed. So therefore, you could say that product one is really the product. You see, there would be good reason for reversing this numbering. The product, the establishment, and so on. However, it is as it is. Number one is the establishment as a product, number two is the product of the establishment. If you want to work all this out, why just look at a generator, or something like that for a while, and it'll all evolve. And then of course you have to correct the establishment, and then you have to correct the product. It's easier to take it odd numbers, org officer, and even numbers, product officer.

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.

So what comes first, the chicken or the egg? The egg came first, and always will come first. And it's economically unsound not to have it first, the egg as first. In other words, two is always primary and senior. But it's properly numbered after all, because to get anything you have to work backwards. You actually do, you have to figure it all out backwards. So, that numbering system presses this point home. If you want to work out an organization, take its product and then work backwards, and you will wind up with the org board. And if you take the org board and write it up, if you haven't got any product, and you aren't going to have any product, and you didn't have any product, and you aren't going to have any product, and that is all. You got an org board, you got a bad, heavy payroll, you got a this and that.

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.

Org after org after org is sitting out there, and because we have delivered an org board, they've put up this org board, but if they had to really work it out they would figure out what their product was and work backwards to their org board. We can give them the org board that they should wind up with, but it is posted backwards. An org board is always posted backwards. It is not posted in such a way as, we put a name on a post. There's a post, so we put somebody on it. There's a post, so we put somebody on it. So there's a post, so we put somebody on it. That is not how, and is actually pointed out in your OEC as an absolutely fatal way to go about it. And you'd wind up probably with a government that governed nobody and nothing.

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.

So, what do you, what do you actually do to put together an org board, even when you have one handed you? You post the personnel who get the product. And if you're organizing an org you would put on these posts. Alright, why? See?

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.

Now let me give you the valuable products. The basic valuable products of an org are auditors, preclears and money. And they're the final valuable products that are the obvious ones. There are some additional ones, but these certainly are the obvious ones. So therefore, you work it backwards. You don't post an HCO OES, OES, PES in a three man org, who don't also work. Somebody could hold these posts, but it'd have to be posted backwards. You'd have to put on an auditor or auditors, to make the preclears, you'd have to put on the course supervisors, to make the auditors, and then you'd have to put on somebody to get the people to collect the money.

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.

Now if we went at this very straightforwardly we'd find in what I've just told you there's a slight altered sequence of events. So, I'll just show you how neat this is. You would of course put on a course supervisor. And you'd put on somebody, even if it was the course supervisor, to get some students to pay to be trained. That gives you the money. And then you'd put on some auditors who had been so trained, in order to process pcs who are procured, and that gives you some money. And then you train more auditors, and you get some money. And you've now got auditors who can process more pcs, which gives you some money. And so, you can buy broader promotion in order to more broadly bring people in to be trained, so you about this time you've got to have somebody hot on the promotion line. You get how we're posting this thing now? And one of the little secrets of org failures is, is they don't post the course supervisor first. He's posted as an afterthought. And they don't bother to deliver the course because it isn't a primary posted action. And so of course they don't get any auditors who can audit, so there, when they bring in pcs they don't get audited, and then people don't pay money for no service on a course and no service from the auditor, so of course you run out of money, and it goes backwards, because it wasn't posted backwards. Posted backwards.

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.

Now when we say somebody to train a course, we want a course supervisor, not somebody that once heard of something. When we audit people, we want an auditor. What is an auditor? An auditor is somebody who attains flubless results. Right now about fifty percent of the field auditors, maybe not that great a percentage. We haven't done a survey, but it seems like that, with cases coming back. Why the walls down there in Flag Qual would be charred. Absolutely charred. We're going at a level of certainty which does not say, "Well of course the reason why the session, or the pc, bla-bla, reasonable, you know, it explains easily. I mean, married a long time ago and probably is still PTS to somebody in Nero's time. You know? Ha, ha, ha. So of course, you say there's nothing you can do about it, and so on. And the reason that the chain didn't F/N at the examiner is it didn't F/N at the auditor's end, because it, narrative or something. But that doesn't have anything to do with it, because nobody knows what a narrative somatic is. And..."

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.

So now, let us go over this again. If you want an org you would post it backwards. You would post a course supervisor, not somebody to not be there. Now he would have to have the materials, wouldn't he? And then, when we gild the lily here, we'd have to have somebody counting the noses of students as they walked in and out of the door, and have folders for them and so forth, so we'd have to have some administrative check on all of this to find out of they were coming to class at all. So we would build it up from product to org officer.

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.

Now, the product comes first, but to get the product you have to have organization. So we're back the other way around again. Chicken came first. If you were to crash in a space ship on a god awful desolate planet, and you were faced with having to build the entire civilization, you would probably have to start with a sharp rock, right? And from that, over a considerable period of time, why you would eventually get the metal that bubbles out of the stones that are parked around the fire, and have copper. Now those are the long spans. But even though you might look at this prospect and sigh, and even though you might have done this, there is no reason why it cannot be done, providing you start with a sharp rock. In other words, there is some place to start.

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?"

Now when you get to a product org officer line, you get this on your bing, bing. Now somebody's got to get some potential students who want to be trained, who will pay for the training, but the moment that that action starts, the org officer, anticipating a traffic flow, has ought to have procured at that moment a course supervisor, and the materials that the students will be taught, and the tape recorders, and the tapes, and the folder supplies, and the room, with a roof over it so the students don't get rained on, and the chairs, and the tables, and the clock, and the schedule. "Hey," you say, "what's this product officer doing all this time?" Well, if the org officer's that over burdened, he's putting in a product one, isn't he? He's putting in a product one all that time. So he'd better unload product one because he'll find it very rapidly in over burden. So he forms his first embryonic action of an HCO, even if he just does it by dividing his hat. Product one belongs to HCO, it belongs to the org officer's product. HCO AS.

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.

So what's the org officer do? Well he got rid of it, see? He got rid of it. And somebody's putting the establishment there. "Well yeah but," you'd say, "treasury actually buys this stuff and other things, and the bookstore orders this stuff. And it's all ordered up and down the org, and you haven't got any org." No, no, no, no. Product one, the establishment of the establishment belongs to HCO. "Yeah, but the org officer got rid of that, didn't he? He got somebody there to put in the establishment and so on." So what's he do? He's even got to get a registrar and somebody there to pull the students in, and put this thing together and so forth. But that's, you know, that's HCO, isn't it? So that's immediately at HCO, so it's..."

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.

So what's this org officer do? Well, product one. Product one is his responsibility. But having taken that responsibility he passes it over to somebody. So what's that leave him with? It leaves him with product three, the correction of the establishment. It leaves him with, when the chairs don't arrive, he gets some there. He calls the local funeral parlor and has them, rents some right away. Brezzo, zoom, boom.

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.

Meanwhile, telling his establishment officer HCO ES, "You get some chairs. Buy some chairs." So he doesn't have anybody to operate as a course administrator because if nobody wandered in and it wasn't established, and so forth. That's a three then, isn't it? So he has a friend of his, or somebody that's standing around with his mouth open and so forth, suddenly finds himself kidnapped and on that post, and there's a dreadful row about this because the person's actually the director of disbursement. If he's director of disbursement, what the hell was he doing standing there? Good question. And that's the org officer's rebuttal.

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.

The assignment of the course administrator, the hiring of somebody, the putting of somebody there, under of course the pressure of the org's org officer, is of course the HCO job.

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.

How do we actually get here? There are some other areas that have something to do with this establishment. There is the estate bureau. "Ah well hell, we don't have any estate bureau yet, we haven't even glued up an org board." So it must be, belong to what we call HCO. HCO generates the number one, establishment.

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.

What's it consist of? It consists of the establishment. But what is an establishment? And right away we start to get into the basis of our deepest misunderstood. You ask almost anybody what an org consists of he'll say, "Well it consists of some people and it consists of some hats." And boy, that is about the faintest statement that anybody ever made under god's green Earth. You've got to beat this out and recognize it for real. What does an org consist of? What does an organization consist of? What is this thing called an establishment? We can go on and on and on and on and on. But it has very specific things. If you don't have a place to do this action, you will be training people in the rain, or the snow or something. So if an org just consists of some people, why they're going to awfully wet people. If it consists of some packs, they're certainly not going to be protected from the weather. There's got to be some safeguarded or protected space there. It's got to have a roof over it, it's got to have doors and windows and floors. And that contains what?

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."

Now I could go on and rattle off a list here of what, but I can give you certainly the basics it consists of. The tables, the chairs, the desks, supplies, the paper clips, the staplers, the comm baskets, the labels, the machinery, the typewriters, the address machines, the CF file cabinets, the CF folders, the content of the CF folders filed in them. It would consist of hats, and it would consist of packs and tape recorders, and it would consist of its various commercial contacts that set it up, and it would consist of; you get the idea. You start looking around, all of a sudden your eyes will open, the attention of anybody you're trying to break in as an org officer will come off of this thing called a body. That's the establishment.

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.

Now you say, "Here, well yeah. Of course this is a, this is a ship, naturally. And of course that's under the ship org." Oh yeah? It's under what of the ship org? There must be somebody over there establishing a ship. So this is all very interesting.

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.

Now that's when you get very sophisticated indeed. Up to the time that it's all out it's all up to HCO. Somebody walks into HCO and says, "Where's the packs?" See? Yeah, but you only got one person, see? You say, "Well, you're division two today, too." That finishes that. Then you got two hats. "Where's the packs?" "Yes, well you see, and we wrote a letter..." and at that moment the org officer says, "God damn it to hell." Now, he deletes that because you must be nice. Remember your PR. "A dispatch is not a product, and it never will be, and it never will get us anything, and it is not anything that ever establishes anything. It is not a doingness, it is a gesture." And the first guy that says, "Well I wrote, I sent a dispatch to HCO..."

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.

I'll tell you an exact situation. A personnel, who is facing internally; here you see, we have an internal/external situation, and that applies to CLOs. There's internal/external. Your org officer actually is operating a little more broadly in a CLO to establish the establishment, unless your CLOs HCO is competent to keep it established, because the org officer is operating internally, but the product officer in a CLO or on the Flag bureau is operating externally. It's a slightly different situation than you'll find in an org, because in an org directly, or in the FAO here, both the org and product officer are operating more or less internally. Their attention is internal.

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.

Now it's very funny, when you have a personnel whose attention is external to the org, and internal to the org simultaneously, he tends to go bonkers. We've already analyzed this and we've had a lot of experience with this. The guy whose attention is out there and in there. The Guardian's Office for instance at this moment that I speak has heroically acceded to our pleas, so that we could teach an FEBC and hold the fort in, all over the world; and it's much broader than you imagine; has loaded onto itself a great many internal concerns. It's also trying to hold the fort externally. Well they can't do that very long, that's why you are getting pressure here, because the Guardian's Office will probably be holding the org, or the CLO out there will be holding the org, until trained personnel get back to that org. And it's not much mentioned to students, because it would harass them, and put them under a worry, and a stress. So I'm telling you, speed up.

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.

Actually the Guardian's Office at this exact moment all over the world is holding its breath, waiting for the FEBCs to come back, because they're holding internal actions. Now they're an external group. It wasn't the Guardian's Office in this instance, but I'm just telling you the difference between external and internal. Their attention is out into the public. Their tech is with the ARC broken pc out there in the public, not in the org. So, the person I was speaking to had permitted, who is an external personnel, I found was holding several internal hats. And I said, "Would you, what action have you taken to fill the vacant post?" And she said unfortunately, "I have repeatedly written a dispatch to HCO." That's what that charred mark is right there, my reply. We'll get the stewards to polish it out. And my order to her was, "You go down to the personnel files, and you look through these personnel files until you find somebody who is suitable, who is not holding a key post, and you take that person and put that person on that post." And the reason I did this is, I'm talking to a key personnel whose product is too valuable to be monkeyed with. And who was permitting herself to have an internal attention. Actually, probably a great deal of percentage of her time was being occupied internally.

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.

Now in the; that's not the Guardian's Office; but in the Guardian's Office matter and so on, why the, Mary Sue is saying, "Where are the FEBCs? Where are the FEBCs? Where are they?" They're perfectly willing to handle this sort of a situation, but you've got policy knowledge and other actions of one kind or another in the Guardian's Office at this moment, holding posts of temporary executive director. USGO is holding a post, his communicator is holding a post in DC, or was 'til a very short time ago and so on. And they're spread thin. They're controlling all of Africa right now, and actually were telexing for help here within the last week or so. So this is an external/internal strain. So you got to figure out which is your external and which is your internal personnel. So you do have external personnel. Who's your registrar?

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.

Now your registrar is working for people to come in and take that course, so that they can become auditors. Right? So she's got time to monkey around with how the files are or are not straight? You want to cut your income to pieces? Take an external facing personnel and give them internal distractions.

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?

Now that goes broader than that. You want to cut your products to pieces? Take an org officer who isn't anticipating or running before the product officer with load lines, because your product officer will have his attention yanked over onto the subject of organization.

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.

Now just as there's external/internal, there is the organization of things and the production of things. The production of things is of course totally dependent upon the clear cut organization of things. But, the funny part of it is, you can produce without a clear cut organization, and one of the ways of stalling a whole org is to go into one hundred percent organize. You go into a hundred percent organize, you'll choke it down every time. You organize while you produce, is the proper sequence. And you produce while you organize is actually much closer to the truth.

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.

Now when you look over this team of the product officer/org officer, you find out that the org officer has to have a fantastically clear idea, and so does an HCO AS have to have a fantastically clear idea of exactly what an establishment consists of. Now this idea that I'm talking about is just like this. What does it consist of? Well it consists of a building, or rooms, or auditing rooms, of desks, of typewriters, of supplies, of personnel, of hats or hatting actions, and so on. The whole thing. The whole bang shoot. And if they don't have a total grip on what is an establishment, the org officer will not be able to back up the product officer, because he will never detect a decline. He won't see it as a departure from the existing scene. It isn't necessarily staticized. You know, the roof falls in. There's no stat for the roof falling in. But it is a departure from the ideal scene, I assure you.

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.

So, therefore the first requisite of an org officer is not necessarily a verbatim knowledge of the OEC, but the definition and the extent of, and everything that there is in this thing called an establishment. And not only that, but what is everything in this particular establishment. Just like that. Now comes his knowledge of the OEC, because that tells him how it ought to go together and how it ought to run.

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.

Now along with that is apparently you cannot ever have sensible hiring or personnel posting in an organization, unless there is a list of all of the essential hats and duties of those hats, in the organization, which is just a mini list. It's not even a mini list, it's an instant hat list. What do these people on these posts do?

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.

No one in personnel can function at all in personnel unless he has such a list. And where does one exist right now? There is no such list, not even in the most sophisticated personnel offices anyplace. What is this job? Well very often you'll get some big corporation, and it'll have some personnel thing and so on, but you won't find that list. They'll say, "Get me a shop foreman." So they look around to find somebody who has been a shop foreman.

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.

Now why do they do that nonsense? It's actually because they couldn't for the life of them define what are the duties of a shop foreman. Now it might only take three sentences to lay out what the duties of a shop foreman are, but you won't find anybody posting personnel at all sensibly, or hiring sensibly, unless they have a pretty good idea of exactly what each post does. Just in the last twenty-four hours I've run into it aboard here, you wouldn't believe it. I just tried to do a posting to fill in suddenly. Somebody had a class ten as a requisite to somebody to file folders, and to hand them out to people when the name was on the list. You won't believe that; I'm not being critical of this because we're just forming up. "What the hell do you want a class ten for?" "Well, you see, the duties of that post, you find the post there, the duties of that post are, and so forth, will host the CS conference with the auditors." "Hosts what conference?" "Well the CS's conference, you see, with the auditors is held by the D of P." "Whose conference?" "The CS's conference, with the auditors, is held by the D of P." He got the point.

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.

Now once upon a time, the D of P had as part of his hat CSing. Well we have a CS, and I would like to see a class ten D of P who was not acquainted with the CS line of the various cases, trying to hold a conference with the auditors auditing those pcs. That would really be a clown performance. It wouldn't matter how much tech this fellow would know, he is not the CS. So the only person who could hold a CS conference, or a CS's conference would of course be the CS. But we weren't trying to post a CS, we had a CS. We were trying to post a D of P who would make up the programming of the auditors and the pc's lists, to hand to tech services. And to interview some of the people who were being audited who very often have questions, and walk around in mystery as to why that's being done. There's nobody a CS right now can say, a little side note, "Contact this guy." You can have the examiner say, "What did the auditor do?" but you can't say, "Contact this guy and clarify what his program is." What his auditing program is. It takes the mystery out of it. Well that's what you have to do on public lines, and because we're not handling actually public lines, why that function had dropped out. But it still leaves a whole bunch of little mysteries.

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.

"When am I ever going to get audited?" "What run down am I on?" You see? Guy goes into session with his jaw dropped, where he's audited with the mystery rud out. You get the idea? Well that's just because there's no D of P post. Well there's no trick to it.

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.

Now if confidential materials were at question, that would be something else. But the confidential materials were not at question. The person selected was of the class necessary to handle confidential materials. Also was a trained auditor. There were two such people available, idle, with nothing whatsoever to do, in that very department. Not auditing, not anything, either one of them quite capable of performing this duty. But somebody had to have a class ten auditor to perform this duty. I wouldn't know why. Another duty is to hand the list to a tech page, and get the folders together, tech services, see? Hand the list to the tech page so that he can do this list, and get the folders of these pcs together and give them to the other. This post couldn't be filled I think because the person was slow or something, by reputation. That's nonsense.

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.

Now the situation arose by overload. These are actual org product officer situations. The situation arose by overload. The traffic line went way up in volume, the stat was going way up in volume, the predict would be that these lines will break. And they broke. The product officer of that division became ill, the tech services chief of that division, over loaded and with insufficient help went to bed with a temperature of a hundred, leaving the post empty. But my effort to fill the post on a high express action, seventy-two hours after the first order that the post must be bolstered up fast, was being done on dispatch lines during that entire period. Dispatch lines! What the hell. I suppose the world has lost feet, because it's an automotive age. And when the person was put on the post somebody in HCO developed a policy that any pc's mail incoming should be opened and read, in case it might enturbulate the pc. And the person put on the post which was supposed to hand out the folders and the list, was opening and censoring student mail in the tech division, which is totally, completely off hat and illegal. At that moment there were loud explosions all the way along the line. The person put on the other post was doing the tech services job because there wasn't anybody there to do it. In other words, it's scrambled up in a mess.

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.

Now this is the consequence of not predicting a traffic flow in an organization which is just forming. Now when you have an organization just forming, the many outnesses which are presented to you can completely confuse an org officer. And at that time, as at no other time, must the org officer adhere to product three, correction of the establishment, and leave the establishment to someone to get that one. Get product one. And in a fast running organization, the total duty, the total duty of an org officer is arresting a decline. Product three, halting a decline, or a threatened decline.

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.

So actually it works this way. When the product officer finds himself correcting the establishment's product, which is four, this passes at once to three, who may have it in hand already. That makes an org officer somebody with a crystal ball, doesn't it? I'll tell you just in a moment how he doesn't have to run it with a crystal ball. But it's almost a crystal ball job. By the time the product officer says, "The students coming off the line all seem to be limping in their left foot. You know? And they, when I talk to them and ask them why they don't go write a success story, why they sort of look down at their feet and limp off. And I think you ought to go in and see what materials they are being taught by whom, because I've got some inkling of this because I saw some textbooks on yogi lying around the classroom." Now if that team is really functioning; now of course I'm giving it to you a ridiculous pitch, as well as exposing some of our shames here. Well believe me, it's being straightened out. And things will get straightened out here much more fast as it straightens out. They can go wronger and get straightened out faster than anything you ever saw in your life.

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.

But the org officer hat's working on product three, correction of establishment. If he was very good would be able to say to the product officer, "Yes, I spotted that yesterday. We have immediately somebody coming in here from San Francisco that used to be in the org, and so on. He's taking over as course supervisor. And as a matter of fact, the comm-ev has already been convened on the course administrator for crossing practices. And if you walk into class at this moment you will find one of the HGC auditors who is an HDG, at two o'clock took over the class." That'd be a very lucky product officer, wouldn't it? See? Really on the ball.

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.

A little bit ahead of, a little bit ahead of is what, is what the org officer, that's where the org officer belongs. Anticipating the traffic flows, anticipating their sags, anticipating this sort of thing by reason of the actions of the product officer. So the product officer has to keep the org officer pretty well informed as to what was going on. Therefore, the product officer is always making notes. Anything he runs into, and after he's handled a kerfluffle he always writes it up, no matter how briefly, he makes notes of this kerfluffle, and he passes the thing over, and he usually indicates the organizational action.

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.

Now I don't know if I'm clarifying it for you to any great degree, because you may not believe me. It's just that you may not believe the important point that I'm trying to put across. You may believe you have, if you're operating as an executive director, a product officer, you may have, you may think you have somebody. It's not hard, it's not possible for you to believe completely, probably, because it assaults your common sense, and that's what you want to watch, boy. Common sense to you may appear like complete screaming genius to somebody else. It breaks down on the inability of the org officer to define, locate and establish everything in the establishment, including the duties of every hat in the establishment. And if you're going around in circles as to why you can't operate or why your product officer can't operate, that is the first thought.

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.

So you clear it. You can actually clear it in terms of reach and withdraw from typewriters, and reach and withdraw from staff members. Now we're not talking in a theoretical line now, because when we had this conversation that clarified this point and it gave us a win on the thing, this is; I'm not being down on org officers at all. I mean this is, this is the truth of the thing, and this was what was fouling up the line.

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.

Alright, we get in the product officer's duties. The product officer has to be able to recognize his product, pang!, that he's trying to get. He has to recognize that it is a product, a product of the establishment. He has to be able to recognize that and he has to be able to get that thing out. That's what he's working on. He has to want that product. The two monitoring laws is, is he has to recognize and he has to want it. And the action is that he has to get it. Doesn't even say how. Actually he has to know more about the organization than the org officer, really.

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.

But where you will get a break down will just be on this other thing. That's its other point, this other point. It's just a failure actually to embrace what is this thing called an establishment, because if the establishment itself is not embraced, then no ideal scene could possibly be conceived of, and therefore the org's org officer would not be able to spot a departure from the ideal scene so as to arrest its decline. And he's just in the first business of arresting declines, and passing along back to the person who are responsible for the establishment itself and establishing the establishment, what will be required as an establishment? Now therefore, he can get this thing back up to an ideal scene. But he's working on three.

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.

Now what is product three? Three is the product which corrects the establishment. Three is the correction of the establishment, and it is itself a product. It's a correction. And org org officer who doesn't work on product three constantly and continuously and so forth, will find that the decline of an organization is not arrested. And an organization will run, and your GDS's will all go up, and your GI will all go up, and everything will go fine, and then all of a sudden the GDS tails off, and all of a sudden another GDS will tail off, and all of a sudden the GI goes boom! And the organization goes all to pieces. And you wonder what the hell happened. And what you hit is an un-anticipated expansion, which sought and found and exploited every weakness in the organization, and it blew up. And that is the reason for booms and depressions of orgs. The booms and depressions of org is, as they expand they expand beyond their tolerance level of handling. The increased volume finds all their weak points, blows them up. Staff members become over loaded, over worked, they can't cope with it anymore. The lines are just too much. Things are too internally vrahh, human emotion has gotten in your road, oh my god. And somebody says, "I think I'll go back to Australia and sit under a Eucalyptus tree, because I'm going mad."

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.

What happened is there was nobody watching product three, and detecting and remedying the points of decline, and patching them up, and pushing them in to the people responsible for the establishment, so they could hire it up and beef it up, hat it up, quick it up. HCO actually as the org board sits at this moment would seem to be totally incapable of putting an establishment there, because it has several thing that are not its preview. That ought to be remedied. But HCO could remedy it right now, because they can order, they can order the other parts of the organization. They've got a time machine to make sure the order is complied with. "We predict at this rate of expansion that we will have used up all existing space of this building by July, which is five months from now. You find this new building and your guy's promoting and so forth. Fix it up so there's every Sunday meetings teas and so forth after we move. But you find us a building, and so on." That is not the org officer's action. It's the org officer's spot, but it's the org officer's order that something be done about this. We need a bigger establishment. And that's going to shatter everything along the lines, and so forth.

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.

So, the decline of the establishment is arrested by ordering bigger space and more staff members. But then somebody has got to figure out how to put this bigger establishment in there. So the order is simply that to arrest the decline it is necessary for you to expand the space of the establishment, economically, so that it does not eat up everything that you are going to make by the expansion.

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.

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.

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