P_203.doc

REASON

    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.

                                   SUMMARY


    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.


                                               L. RON HUBBARD
LRH:ml.rd
Copyright� 1966
by L. Ron Hubbard
ALL RIGHTS RESERVED


[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.]