As long as executives fail to hold firm the form and channels of the org, their own posts and the org will be a confusion. Worse, it will cease to exist.

Executives must insist upon the privileges and responsibilities of their posts and not permit by-pass and misrouting.

The whole org is run on statistics. It is not run on rumours. The more you follow statistics and the less you listen to rumour the better off you will be.

Orders are issued to form the org and better statistics and that's all. There are no other reasons for orders, chits and upsets. Actions which don't increase statistics should be eliminated. Irrelevant orders and chits having nothing to do with statistics should never be issued.

To hold the form of the org it is vital that:

1. The AdCouncil minutes only order Secretaries and only on Gross Divisional Statistics as they appear.

2. Executive Secretaries order and chit only Secretaries.

3. That Secretaries order and chit only Directors.

4. That Directors only order and chit Section Officers.

5. That Section Officers only order and chit persons In Charge or, if there are none, the staff directly under them.

6. Exec Secs and Secretaries can cross chit.

7. Directors can request and chit only via Secretaries when they cross divisions.

8. Anyone can file a Job Endangerment Chit with Ethics on anyone. This however is normally filed on a direct senior and only when explicit policy has been violated by an order or chit on one's own post and only when the order or chit might worsen a statistic.

9. If all else fails, petition the Office of LRH.

Sec Eds issued by the Adcouncil may only change Secretaries as personnel. They can advise the Secretary on personnel but may not demote, transfer or dismiss a Secretary's personnel (exception, when sweeping an org of temporaries, staff that hasn't passed Review for Staff Status 1 ).

An AdComm's orders forwarded to the Office .of LRH for a Sec Ed always go via the Adcouncil. But again an AdComm may only order Directors and may not demote, transfer or dismiss a Director's personnel.

A Director should order Officers.

Officers should order In-Charges.

When personnel is assigned directly to an Executive such as a personal secretary, one may of course order or chit that person directly as there is no command echelon.

Danger Conditions are handled on By-Pass. Where a Danger Condition is assigned, the senior can by-pass anyone to get the job done and does.

The Conditions in sequence are:

6. Power

5. Power Change

4. Affluence

3. Normal Operation

2. Emergency

1. Danger

0. Non-Existence.

By-pass creates a Danger Condition which drops into Non-Existence from any level.

It is true of all Conditions that if you use one lower than you are in you will bring the next lower one about. If you use the Normal Operating Formula when you are in Affluence you will certainly descend into Emergency.

Therefore if you are in Normal or Emergency Condition and start by-passing you will quickly descend into Danger Condition (statistics will drop steeply) and achieve the only Condition below Danger which is Non-Existence.

Thus if you by-pass you infer the Condition is Danger when it isn't. And you drop the org or any portion of it into Non-Existence.

So don't by-pass unless you are in Danger Condition. A Danger Condition exists where statistics show continuing emergency or a steep steep fall. If a Danger Condition exists, you handle the situation, by-pass anyone at all and then the personnel who ignored it. So if you by-pass all the time (Exec Sees issuing orders to Directors, Secretaries ordering Officers, Directors ordering general staff members) you will infer a Danger Condition and get non-existence of the Section, Department, Division or the whole activity.

Moral: Only when a Danger Condition exists should a senior by-pass the command chain, so if you are only in Emergency or only in Normal Operation or even Affluence DON'T BY-PASS or you will crush statistics.

Learn your Org Board.

Make your staff learn it.

Handle the org by statistics only.

Order only your immediate juniors.

Don't by-pass (except in Danger Condition).

Don't infer a Danger Condition that doesn't show on a grapn.

Hold the org firm by holding its lines and chain of command firm.

And you will prosper and expand.

[Note: The sequence of Conditions listed above has been amended to include Emergency, and the paragraph immediately following this list has been added, per HCO P/L 8 February 1966, Issue II.]