This is the seventeenth of November 1970, a first talk to the FEBC students. Basically I just want to say hello; I can't talk. Just basically I want to say hello, well that's better. That's better.

And you, some of you have been in a state of study away, without talking to Ron about your troubles, and I thought it was about time that we broke the ice here a little bit, and gave you some inkling of where we are going to and why you are here. You probably know that already, but I know better why you are here, and I knew previously.

We are in quite a year here in 1970. We are in quite a year. This year didn't look like it was going to amount to much, when 1969 was busy expiring, and the amount of admin and dev-t that has been going back and forth across the lines here didn't look like things were going so well. But the wild part of it is that 1970 has been about the biggest breakthrough year in terms of administrative technology, and in terms, in actual fact of auditing technology, that we have had since '50 easily.

I'll give you some kind of an idea. I was just breaking through nine and ten OT levels. You've never even heard of them, but our lower level technology is now putting into view an ideal and a dream which we sometimes see, but which doesn't work out consistently in organizations. And we feel that by processing an organizational staff member's efficiency and ability to get his job done will be improved. And we've often dreamed of that, and we very, very often see it lay an egg. And we audit the guy, and he doesn't, you know, he feels better, he's happier, and he still turns out a product that's an overt act.

So, there is in the works right this minute, and is in test on Flag, a relatively simple technology which puts that dream well within your possession at a fairly low level of auditor training. And now, when you're working in the field, and when you're working in orgs, you don't necessarily; well actually it's probably completely impossible to read all of the material that comes through your lines, or to keep jenned in on what is going on. You actually have the public banging on your front door, and you have all of the generated noise of the disorganized, unrecruited, undermanned, misfiled organization in your vicinity. And you have all kinds of demands coming in; one day somebody counted these and said there were twenty-nine command channels into a single org. You were talking orders, and org was taking orders from twenty-nine separate sources. And that would be enough to; that alone would give you enough noise to distract your attention from the fact that something is going on other than that fight. And there's been plenty that's been going on.

Now you come here to Flag, and you find that in the sunny, calm atmosphere of nowhere much, this noise drops out of your ears and off of your eyeballs, and you have a chance to draw a long breath and put your attention on what is going on. So you're actually jumping a considerable gap, and so on. There's a considerable gap.

You've seen some of this information which you're getting here come through your lines. The opportunity to see it assembled and coordinated has been practically zero. To see it in action, and see how it all fits together is quite another thing.

Now you're here at a time when, and this will always be true, where organization is being improved. And organization command channels at this moment are just now going out into a very smoother, much smoother state of organization. For instance, just now I've just pulled out of my traffic here a dispatch from the data bureau Los Angeles, and they, head of the data bureau said, "We are now able to provide you any information you care to have on any U.S. org." Wow, see? Now that isn't just information, that's evaluations of information. That's condensed packs. They're in business now to be able to give us extreme condition packs on anything. Well that's, that's a terrific advance.

The officers of some of the areas of these liaison offices have just now left. Three of them left this morning. And the org board of the bureau's just now been hung up, so you're here at a very opportune time. This is the time this is being exported.

Now the pattern on which we're operating is something that you should have some information on. And this pattern itself is of importance, and it will serve you in your stead. There is an FSO called "Expand and Control", and that gives the sequence of expansion. And that is we'll put a Flagship here, and the Flagship puts a Flag org here, and the Flag org puts control points in continental areas, and those control points in continental areas put orgs there. And the orgs put a public there. I want you to look at this as a sequence of action, and perhaps it'll give you some idea of what's behind some of the things you see going on.

Now as far as you in your future position, you will be putting there what there is where you are. And from that firm position, will be putting there an extended position. Now that even applies to divisions. You put there a stable terminal from which you can expand, by putting in stable terminals to expand to. Now this, then, makes a sequence of stable terminals. Now you're looking at it here on Flag on a planet wide basis. In an area you look at it on an area basis, in an org you look at it at a divisional basis. And it all works the same way. You will only get trouble from those areas where you have not taken those steps. And if you're getting trouble from any area, then you have not taken those steps.

So, you go back and you set up an office, and then from that you set up an HCO, and from that you set up this division, that division, the other division. And all the time you're doing this, of course you have to cope with anything that is going on. It's about fifty percent organize and fifty percent handle what's going.

Alright. Now let's say something goes wrong. Let's say something goes wrong, and you just don't seem to ever be able to get in the public divisions, and the next thing you know you're out on the street handing out cards. An org board not only reads from left to right, an org board slides from left to right. And you can slide down that org board faster than scat.

We have a standing joke on ships of me trying to figure out, while singlehandedly conning the ship, how to also stir the crew's soup. Now that is a matter of just sliding down org boards.

Now the sequence is one that is often missed. And the reason why it gets missed is an individual has his attention way over there, and he seldom puts his attention right here. Now we've all seen the housewife who has a great deal to say about their neighbors. And then one day we open the closet door, and last year's diapers and everything else falls out on the floor. We don't even dare open the front door of such a house. Now it is one of the things that we do on Flag consistently and continuously, is reassert the idea, if we can't make it go right here we have no right whatsoever telling anybody else elsewhere to make it go right. And that's a good maxim anywhere you operate.

So one day you find yourself sliding down the org board. By all means handle the situation, but always put in two other steps. Is your house in good order? Are your lines straight? Does your in basket contain stale dates? Are your lines running smoothly? If you straighten that out, why you will also be able to organize then the area which you're having so much trouble handling. So cope, there is always cope. And the other steps are put your own immediate area straight, and organize and put there the area you're having trouble with. They're coping, you're coping in your own area, that will continue. There's always a little bit of cope....Campbell's Ivory Soap, ninety-nine and forty-four one hundredths percent pure. I don't think we'd ever get so organized that we wouldn't have that remaining percent impure. It would still be cope, because there's in any expansion this trick always occurs.

It's a horrible thing. You think you've got it all organized, and then because you've got it organized, expands. And any expansion will find every weak spot you've got, and there will be a blow up at every one of those weak spots. And you could actually go in some kind of a wild cycle like this, if you weren't completely organized, and if you didn't know instinctively exactly what to do about any given situation. You're doing alright now, you've actually got your cash/bills ratio so it is in some kind of a state. You know what it is, and you're actually getting in some traffic. The org seems to be viable, and then suddenly you get more traffic. And the more traffic catches you without an expansion potential. You didn't have anybody in training to take over some of those extra spots. You didn't have any backlog of auditors that you could call on. You, lately the academy hasn't been graduating many people, there aren't many auditors to grab onto, nobody has been trained in case supervision to take over that course, and it goes bllbllblbl!

Now if you're on the ball, if you're on the ball you will able to organize it sufficiently so that it doesn't go backwards. But the cycle that's liable to happen is the additional traffic and additional business hits you, all the spots around the organization that are slack or sour, or could go sour that were just barely functioning, blow up. And you retract. You don't expand, you contract. So you try to expand again, and there's more traffic, and it blows up the remaining spots, and now you really contract. And you don't do a job of expansion, you do a job of starting to expand, contracting, starting to expand, contracting. And if you do that, actually you go downhill, because people get tired and they wear out.

So, what you do is you have to be sufficiently on the ball that every time such areas blow up, and they will blow up, you're right on the ball and you know exactly what you've got to do at this particular stage of the game. And you beat that area up so that it copes and organizes quickly to take up the slack, and you hold that expansion. And the next time there's a little bit more expansion and things start to blow up, you're sufficiently on the ball so that you cope with it, get it organized, and it'll hold. And that is the cycle actually which an FEBC student should realize he's being trained to do. He's not being trained to be a good student. He's trained to be somebody who is on the ball, so that at any given instant why he can cope and get organization steps in to it fast.

There's two horrible errors that you can make. One is to do nothing but organize. And you can go on doing nothing but organize; you know the art definition, the definition of art? Or communication? It was acceptable communication, you see? And you'll get amongst artist perfectionists, and they never do release one of their pictures. The author never does publish one of his stories, because it isn't perfect yet.

Now you can get that same frame of mind in the field of organization. And it is absolutely gruesome. The organization isn't ready to go yet. It isn't well enough organized, they don't have enough auditors trained yet to really put out the publicity, because it isn't well enough organized. That's a wonderful way to die.

The first Los Angeles foundation, not under my control, the first Los Angeles foundation at twenty-six hundred South Hoover failed, because the head of it, who by the way was a rear admiral and retired from the navy, closed it for ten days to find out if the legal organization was correct. There was no threat, there was nothing happening, but it just wasn't well enough organized. And they accumulated an indebtedness from which they never recovered. Their payroll was too high, they just shut the doors for ten days.

We have organizations in South Africa which close their doors a couple of weeks a year, or used to, and went on a holiday. And all of that was great, except if you just look over their stats you will find out that it takes them ages after that to get the stats going again. An organization's a running machine. And when you hold it up it seems to get sand in its wheels. Now it's perfectly alright for people to go on vacations, but what are you doing not being well enough organized that half the organization can't go on the vacation, and the other half go on the other vacation? I mean, why aren't you organized that way, see? That's all a point in organization.

So organization is basically foresight and prediction, and putting in stable terminals that will handle the flows. Now there are better definitions and more precise definitions of organization, but if you study from that point of view you will have a lot of success. What belongs where?

You will be interested to know that a lot of propaganda set in in the last few years concerning policy. Policy tended to drop out of sight, it tended to vanish. It wasn't given adequate importance, and just as happened in tech at Saint Hills, people began to say, "That is old policy." They, I don't know, maybe they were like auditors that thought technology was simply a process, and you simply read the process off the bulletin, and then somehow or other auditing occurred. But they didn't know why it occurred, and they had nothing to do actually with the session, except to mouth these magic phrases. The truth of the matter is that the admin tech is a thing not which you learn by rote, but which you get the theory background of. Why is it? Let's weigh. And all of a sudden somewhere along the line in study of it, your wits will suddenly congeal and you suddenly know how to play the piano. It isn't that you are being told how to play the piano by applying certain policies, your familiarity with that line of country, and your familiarity with that basic line of country at any given instant will go into play.

I don't know if you ever rode a bicycle, but there's something funny about bicycles. There's, you can't ride a bicycle, you can't ride a bicycle, you can't ride a bicycle. Boy, there's more skinned knees and bruised knuckles, and sister being impatient and all that. And then all of a sudden, you can ride a bicycle. Well that's what you're trying to do. That's what you're trying to do. And you won't ride this bicycle if you have to say to yourself; it's a good thing to know where this material is, let me tell you. But, if you have to say to yourself, "I think there was a policy covered this situation, and there was some regulation there. And of course our mimeo, but we haven't had anybody in mimeo files for some time, so we haven't got a pack of policy. And I wonder what it was," by that time there's footprints all over you.

Now what you're really trying to do is get enough background know how so that you know how to put an organization there, how to organize something, how to square it around, and you'll be able to know whether it's on policy or off policy, and so on. And you know basically that if it doesn't work it's probably off policy. Or there's somebody got some kind of a wild idea. And it isn't a matter of memorizing a fabulous quantity of material, you have to know all the material, but it is a matter of being able to both know it and apply it, but apply it in such a way as you develop the instinct of it. It has to be down to instinct level, not lip reading level. I mean, you're not, not you know, put your tongue in between your teeth trying to, "Well I wonder if there wasn't something that had something to do with this. They seem to have the, some kind of trouble in the; I wonder if there isn't something somewhere in policy that says how you solve the, ah, hm. And stats were down last week, and..." You'd be in a bad show.

Now you have be able to dish it out, you have to be able to dish it out fast, you have to be able to dish it out off the cuff. You have to be able to whip up an organizational structure at the drop of a hat. It's very, very interesting that the Flag bureau org board, which is just being published just now, is the 1966 compilation seven division org board. Now also, don't get in a frame of mind; and if you've seen it around, banish it; that runs like this. "This policy letter is very vital. It should be re-issued." What's this re-issue? We've had one or two FEBC students show up, and tell us that certain sixty-five policy letters should be re-issued, because they're still valid. It's very funny, but the first run down of organizations that was ever written up in 1950, oddly enough is still valid. I was reading it the other day, I was quite amazed.

Now, so here's a seven division org board. Now the only thing the Flag bureaus will do with that org board, is just like it says in policy letters, it's just like it says. It says the production division can be any production. So what's the production of the Flag bureau? Production of the Flag bureau is data, action, communication. That is what it is doing. The data bureau of course brings in its data, it makes its collection, condensation of the data, evaluation of the data and distribution of the data. That is what it does. And when that's done it goes to the action bureau, which does planning, briefing and firing. And then when it's already to go there, it goes to the comm bureau, which is the external comm bureau; there's, HCO still handles its internal comm and internal transport, and so on. But this is external comm, and external comm has the traffic outgoing, has the missionaire outgoing, has all of that outgoing, and everything that's incoming. And that's its production. The end product of that is management. the other divisions all have to be there just to back it up. It's an interesting little clock, if you look it over.

Now you in an org don't have anything to do with putting that together particularly, but one of these Flag bureau org boards belongs in the department of the LRH comm. The whole org board belongs in there. If you have a liaison office section in your org, that is the org board he will be operating on, which is quite remarkable. That org board was the summation of the experimental org board; all the other divisions; was a summation of the experiment board of 1965. And when it was all whipped together and we changed everything, Mary Sue, actually, wrote it up. They actually lost one of her divisions, treasury division. We're having to re-write it at this particular time. Fortunately somebody copied it, with variations, and it's preserved, so she can put it back. But we've still got this org board.

Now that org board was running at the heyday of Saint Hill, when it had very, very high stats. When they started moving off of this org board and it started getting lost, and people started talking about policy getting old, and, "Oh, this technique came out last year. We don't use that anymore." Yes, here's all of your material, but we don't use it now. That was what got going. "Yes, well that's old. The only reason you're studying the Saint Hill course is for historical information." It's true, true. I'm giving you actual quotes, I'm not even exaggerating.

The tech was driven out, and that was basically why things went down hill. They lost the tech. But why run any shame, blame and regret on it? The truth of the matter was that we got it back. Now we're getting some protests about so many changes. Yeah, we're going to change it. I don't really see how this is such a remarkable change, to get back everything we all had. Doesn't seem to me to be reasonable.

The other day, with only a couple or three paragraphs changed, I reissued power processing, as it was originally done and written. And it was received with vast acclaim as a brand new development. So all of a sudden, here we see the '66 org board, the seven division org board. We looked everywhere, did anything we can. We have had some of the wildest org boards here, on bureau org boards, you ever saw in your life. Nobody could make head nor tail out of them, and they didn't dove tail. And finally, why I was able to push into place the old seven division org board, and it fitted. And that works, and that's going in right this minute.

So you see, the material you're studying is not of historical interest. It's the very thing which you need at that desperate moment when you suddenly find out that you have a hundred and twenty-nine pc backlog, which has carefully been hidden from you for the last two months. And this arises because the public divisions are doing nothing. And finally in desperation, you ask somebody in the public divisions, "Why aren't you carrying out your routine functions?" And they say, "Well it doesn't do any good to promote, don't you see, because we just more pcs in, and they can't be audited, so we don't have to work here for some time. We've done our work."

Now you all of a sudden have a problem. You've got three auditors, it's dwindled down somehow and nobody noticed. You've got three auditors and a tech sec, and there are two people in qual, and you all of a sudden have to deliver seven hundred and ninety-five hours of processing tomorrow. How do you do this? That's the type of problem that will all of a sudden hit you in the teeth. It's actually in the field and area of rather interesting discoveries. Discoveries like, there hasn't been an internal comm run for the last three days. And we can probably teach you not to issue an order like, "Get in internal comm. Start delivering internal comm." That's just your cope order, it's just a correction of an error, an omission or an out point. That's just a cope order. Your organizational action is entirely different.

"How come we didn't have any internal comm for three days?"

Now, if you don't have the expertise you get into heavy ethics. When HCO isn't on the ball, and the people in HCO don't know what they're doing, they inevitably will make the product of HCO ethics. And that has been going on now for about two or three years, and this year I called a halt. In other words, it's easier to hit than to hat. It's much simpler to hit than to hat. Comm-ev him, you know? Shoot him, fire him. See, it's much easier. It's much easier to do that than to investigate. Much easier to do that than to draw up the check sheets and put the hat on somebody. Do you follow? So you get the thing of an irreducible minimum, the principle of the irreducible minimum. It hasn't been written up yet. You'll see this around, there will be talk about it around here. The principle of the irreducible minimum of a post.

A post tends to reduce to only its visible points. Let's take, let's take a steward now, not worry about an organization, found that restimulates you, I wouldn't want to do that. And we take the steward, and now the steward has the job of doing bow-wow and bow-wow and bow-wow, and they're supposed to have the wow-wowf and that the linen is supposed to wow-wowf, and they're supposed to know where to get that. And there's supposed to be certain check sheets and so they do, and there are certain reports which they fill in, and so forth. And there are many preparatory actions necessary to being a steward. It isn't just the cups and saucers and so forth, or something like that, appear on the table.

You all of a sudden will get a cave-in in this area, and you won't quite be able to figure out why. And the reason you can't quite figure out why is the visibility is still there. You've got cups and saucers sitting on the table. The job has dropped to its irreducible minimum, below which it will be noticed. And you'll get this tendency, it's a rather consistent tendency. It's a horrible tendency.

So HCO is liable to drop to the irreducible minimum at internal comm. Somebody would notice that. Do you see what the principle is? In other words, all of the hidden or not too visible actions, or which is to say the preparatory actions that makes a good product, tend to drop away from a post, and tend to drop away from an org. And you are wind up with the irreducible minimum, and that is merely the visible.

Now this reverses. When you try to get the thing running, all the things that are out are invisible. So I assure you, you really have to know your business, because the visibilities are still there. There are people at their desks. Mail does get opened and distributed.

Now if you really don't know your business and know what all these little points are and how you have to prepare an action before it becomes a production and so forth, this org could completely baffle you. There can't be anything wrong with it all. It's in flinders and in shambles, its stats are going out the bottom, but people are at their desks, and everything you seem to look at seems to be there alright. Don't open a file drawer. So what you've got is a reduction to the irreducible minimum. It just can't be reduced any further, otherwise it would be noticed. And you'll find out this is a tendency, so that sort of thing is, it's not the willfulness of people, it's actually the lack of full hat. It's a lack of people being jenned in and trained in. They don't quite know what the job is, so they just pick up the visibility.

You know, they bring the mail into the org, but they don't log it. And then you madly are trying to find the missing money that came in from Mrs. Shultz. And where's the mail log, and somebody looks at you and says, "Huh?" Or somebody looks at you brightly and says, "Oh yes, well here it is." And every day there's one entry, and it says, "Mail received."

Now it's out of these things that disaster is made. Franchises can make a great deal of money, but they do not make a great deal of viability. They do not stand up over a long period of time. One of the reasons they make a great deal of money is because their prices are very often much higher than org prices, and there's a lot of other things with this way, and you say, "Now look. Here's all this money," remember there's no viability goes along with it. To run an org you have to run it at higher volume. And you have to run it at a very high volume, and you have to run it at a very excellent product. And if your product is excellent and your volume is high, you will be in clover just pocketing all of the loot in the world, with all the quarters and so forth. But it has to be high volume. And when you get into high volume you get into sophistication of organization. The receptionist can't sit there and keep it all in her head. So, therefore we are going in to the higher level of sophistication of how you run an org, and it can expand. And an org can expand on up the line. And if you follow the principles of organization it can stand on up the line, that would make Standard Oil look like a filling station.

And if you don't know the principles of organization it just won't expand, so it doesn't get up to the point where it can pay its staff members enough. Doesn't get up to a point where it can afford the things necessary to do. Nevertheless, even as they exist at this moment, they are very viable. We haven't lost any orgs except those which we ourselves closed out. Fantastic. Quite a record, actually.

Now, been a lot of hard work, there's been a lot of tears, there's been a lot of sweat has gone into keeping things running. Now there's a way to run these things, which makes them much more remunative, which makes it much easier and so forth. And now is the time.

Now I might as well tell you why it is that we are suddenly launching; it isn't just the technical breakthroughs. I'm putting together organizational material and making some breakthroughs, partially in self defense, partially getting stuff together and so forth, so that we can teach an FEBC. There have been many series's of things released here. There's the personnel series, the org series, part of it's the PR series, the organizing series. These things are quite vital information. And it isn't because they're newest and best. People around here very often are saying, "But you wrote all this in 1958." I say, "Yeah, I know, I know, I know." But it's put together in a cohesive package, and there had been here and there an improvement in the communication of it. And the improvement in organization is the communication of it.

Now if I'm writing now, and you get a big cognition on the fact that the, that it's putting an org board together is a matter of products; it's a product, it's a product and a product and a product, and so forth. Look at the '66 org board and you'll find out that its items are all expressed as products, but it had not been stated. Learning how to communicate something to somebody else is very often a bit of a breakthrough in itself, so you'll find some of this material has never been communicated, but is inherent in the policy which you are already to some degree familiar with.

I don't wish to get you clouded up on this. It isn't that the materials are not valuable which are being released, but they are an extension of the materials which already exist, and are being gotten together, and are being used, so that they will communicate. I discovered about eight or nine months ago that there were certain chaps around who just couldn't seem to get the idea of what an organization was, or what organizing was, or what did organizing consist of, do you follow? And I just found out that I just was not getting that across. Didn't find it out in an org, I found it out in an engine room. And so I just started tentatively trying to improve the communication of what an organization was, and then found out that I was in conflict with think. I found out there was an identification between a suggestion, an order and a comment, and these were all the same. That broad policy that covered all situations was exactly the same as some casual comment, no difference. And I finally figured out that well, we had better find something about logic.

And about April I rolled up my sleeves and tackled this subject as a subject, and they've written an awful lot about logic. It's a formidable subject. If you want just an exercise in headaches, open the Encyclopedia Britannica and read what it says about logic, just the Encyclopedia Britannica, I mean condensed version. Man didn't know what logic was, he had no idea what logic was. He had some formulas for logic, each one of which could be thrown aside by the disarrangement of data. Ah well, if the whole subject of logic could be thrown aside by data, what was he doing studying formulas when he should be just studying what is data? And that made a breakthrough, and that pushed us ahead quite a bit. So that was a complete development all by itself.

You'll find in an organization that your trouble is as simple as you have people who cannot distinguish an order from a comment, a policy from a suggestion, these are A equals A equals A, don't you see? Well how do you pry this apart? Actually we have the technology by which it is pried apart. It's relatively simple technology, fortunately. And we haven't published a final text on this yet, actually it's sitting here on my desk, because it was advertised before it was complete, and I hadn't realized anybody had offered it for sale. That's somebody really putting the crush on you. I haven't finished this subject up, and they say, "It's all for sale." Yeah, great. Oh boy.

So, the subject of logic has a great deal to do with the subject of communicating data. And you find out it makes a wild to-do when you all of a sudden find out that they're putting all the typewriters on the floor and so forth, and then you find out that somebody simply casually remarked that, "If they wanted to clean the desk tops, why they could put the typewriters on the floor." See, a suggestion. The guy says, "We never can mop these desks," you see, and so forth. "Well, why don't you put the typewriters on the floor and so on." You come back in and all the typewriters are on the floor, and they've been on the floor for about a day or two. And somebody says, "What's your letter stat," and it's gone and, "Why is it?" "Well we can't type lying down here on the floor." And you say, "Who issued such a silly, damned order as this?" And they say, "You did." You'll just be very interested that the communication factor between an executive and a staff can be so balled up that you will not suspect why you are working yourself to death. It's marvelous.

You think I'm kidding. I have found such orders kicking around this ship as, "The commodore said that the fathometer had to be left on all the time." Which, traced back, extracted from a casual remark during a watch on soundings, that is to say where the fathometer would read where the water was shallow, from, "You ought to leave it on." It was taking a fellow fifteen or twenty minutes to get this thing tuned in if we wanted a sounding. And it, "Well, you ought to leave it on." They omitted the time span out of that. The time span wasn't understood, and so there we had a fathometer. Anyhow, this kind of thing is, is kind of weird. But you'll be absolutely dismayed how often this occurs, and how this sort of thing is responsible for some of the flubs which you see.

The communication is out. It isn't that you haven't said it, but it has been understood in an entirely different context than you thought it was. And this can be so baffling that it absolutely ruins your temper.

Now if you really know your business and know what this is all about, it is true that you sometimes have to blast things through, but if you know what this is all about, you will recognize that communication and relay of information may very well be the factor which is missing, and which has caused an upset in some area. And you'll be looking for some culprit, and if HCO is not really on the ball, it'll be willing to hat only when it is hit, and you can get yourself all stirred up about how bad it is and how bad these people are and that sort of thing, when as a matter of fact there's just simply a communication breakdown.

Now administrative skill is what I hope to talk to you about a bit before we, before you go back. It's just this basis of administrative skill. It's not a subject which I'm willing to write up forever and nigh. You will see this everywhere in your studies of administrative technology. But it's a special skill, administration. It's actually, contains the establishment of the communication lines, and the flow lines, and the information lines and so on, so that you can get team operation. And unless you know that you have to have a communication line on which to relay information, why the information won't be relayed, and therefore you'll get a team breakdown. And an organization which does not have good administrative guidance can often look very suppressive.

There are two points in the organization which are of equal rank, and each one of them has an entirely different idea of how something should be done, and nothing is going to flow between those two points. Simple thing, like memberships. You just never can mail a membership. And you can curse and damn and swear, and issue orders, and stamp up and down, and say, "Mail those memberships," and it still doesn't happen. And eventually there's a sudden surge and a breakdown, and you find out that five thousand membership cards have just been mailed, blank. And you say, "What a silly fool!" See? And that actually, you're fighting with phantoms.

These are all phantoms. You had two points of equal rank, and they were not in communication, and they didn't have a senior who was enough on the ball to see that the communication line flowed between those two points, and that those two points were inadequate agreement. So that membership is saying that it has to have an invoice before it will make out a membership card, quite rightly. It's always marvelous when you look into these things to find out how right each post was. And you'll find out that cashier is saying he has to have an actual file, to know who is renewing their memberships and who isn't, and that he cannot take this money and write an invoice on these things unless membership will furnish him with this or that or the other thing. You see, I'm just making one up. Although I ran into one like this, it was actually simpler than this. And they just can't get into agreement with each other on how they make out one, and both of them can be put in such a box as he feels his head will be cut off if he does anything about it at all. Now this is what is known as a bugged order, or a bugged project.

Now if you don't understand that communication has a great deal to do with it, a lot of your projects and orders and actions will get bugged. You have to know how to talk to people, and you have to know how to ask them questions. And sometimes this can be very, very dismaying. In Washington one time it took me two weeks to find out why nobody could go from the registrar to testing. I, nobody could go. I mean, that was it. I used to say, "Do you send people from the registrar to testing?" I was getting so into that frame of voice, you see? "Do you send people from the registrar's desk to testing?" "Oh yes, yes, yes." "That's good. Oh god." Up to testing, "Do you, do you receive people up here?" "Yes, oh yes. Registrar sends them up." "Do you test?" "Oh yes, yes, yes, and get the results out instantly." "Fine. Why in the name of god won't this line work? Why won't it work, why won't it work?"

A few weeks later, when I'd completely given up on it, somebody asked me for a ruling on something. They said it wasn't right to leave this money under the blotter on the registrar's desk in an unlocked office. And I said, "Well what do you mean it isn't right? It'll only be there for a few minutes." "Oh no. It's often here for a couple of weeks." And at that moment the penny dropped. They only tested on Monday. So if somebody came into the org on Monday afternoon they could not be processed until the following Monday. Pardon me, couldn't be tested 'til the following Monday, even if an auditor was available. The mis-communication was to testing, and that is they were supposed to have just a little two minute test. Actually a meter check sort of thing. That was all they were supposed to do. And that had never been communicated to the testing post, so they just tested everybody on Monday morning. And naturally it didn't matter how many pcs came up from the registrar, they still had to wait 'til Monday morning. So somebody had dropped the time factor out, and it made a psychotic situation, but there's a mis-communication. Guy didn't know what his job was. Guy in testing didn't have a hat that was complete. Now he was doing what he thought was right, and believe me, it was costing the org a fortune and it was breaking tempers and ARC breaking pcs all over the place, and we just couldn't find where this line is.

Alright, so communication, you can talk all you want to about technical know-how on admin, communication is still part of it. Is the hat complete? Is it real? You have to realize that somebody isn't just defying you if something isn't happening, that it's bugged. And you have to be able to understand that it may be the communication which is bugged, and you have to clear this up, or you have to have somebody in personal enhancement who can clear it up. This post isn't running right, what doesn't the guy understand about it? What is the condition of this post? Other things of this character.

Now you're actually working with a communicating entity, and that communicating entity makes a team. And if it isn't communicating, and if you are not communicating to it, and it isn't getting the data, why it won't operate as a team. Simple as that. It isn't how good their morale is, it's just that they're not in communication with one another. So you see a recent innovation of such a thing as a Flag bureau data letter. It has no command value particularly, it is sent around for information, but it can give you the program of an area, it can give you the evaluation, it can give you what's happening in Keokuk, and why Joe Blow was removed and why somebody else was appointed. It's just an information bit.

Now you say, "Well you can clutter the place up with information bits to such a degree that nobody will read them, because you've got a jammed communication line." That isn't necessarily true. An informed group will operate as a team. A group which has communication lines will operate as a team. And your agreement between posts is essential. And these are some of the skills of an administrator. How does he get those lines flowing? How does he get these guys into communication?

Now you see this great, wide world out here of super industrialism, and you say, "Well how is it operating?" I'll let you in on something. It isn't. Money is inflating, inflating, inflating, inflating. Now what is back of money inflation? Partially political, but the other part of it is, is those cats produce those ornate fronts, and those beautiful, swank offices, and those hot and cold running vice presidents at such enormous expense in comparison to their production, that they are not viable. And you're looking at a whole civilization that isn't viable. Look at what your dollar bought last year, look what it buys this year. It's going right up in smoke. Well that is because production is not being done efficiently. That would be the first thing that you would say about it. Actually it comes, it's so gross that it isn't, it's being politically interfered with, and every other thing that you could think of is in the road of a proper, smooth running activity. And the world is actually carried on the backs of a few desperate men, and a poorly administered area is carried on the backs of its poor, desperate executives.

Now if you really know your business, you can de-bug it, get it to flow, get it to expand. If you really know your business you will get absolutely fantastic amounts of cooperation from your staff. It is very, very interesting. I have seen somebody who knew a division, whose personality you'd say was quite poor, whose this was bad and whose that was bad, and whose charm and whose this and that wasn't all that good. And I've seen him take over a division from somebody who was an absolute charmer, a hale fellow well met, and so on, and seen the whole division brighten up, become very enthusiastic and on the ball, and production go up through the roof. The difference was know how. The guy who knows is respected, and the guy who doesn't know can use all the PR in the world, and he'll still fall on his face.

So, with that I have given you as much as you can assimilate at this particular moment, with the whole course staring some of you in the teeth. You'll find out that you have some new study technology which is being handed to you. Some of you are really going to be put over the jumps on this subject, not because you are a bad student, not because you don't know your business, but so that we can speed up the ability with which you can assimilate information. And the ability to assimilate information is one of the finest skills an executive has.

Now the enemy is just about ready to give up the ghost. He has given up several ghosts lately, very spectacularly. They have risen in the air. Enemy press and that sort of thing is getting desperate, and so on. We're getting ready for the big push, so we think it is time we grooved in the heads of organization and its principle executives so that they can put an organization there that'll really run. And we think it is time that we prepared for the kick off, because that kick off time is now.

Thank you. Thank you. OK, back to the old salt mines.