P_235.doc

HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex


                      HCO POLICY LETTER OF 24 JULY 1967



Remimeo





                     FIXED PUBLIC CONSUMPTION OF PRODUCT




    Any Scientology organisation (or any organisation) which is  working  in
any way upon a fixed statistic  of  consumption  will  eventually  fail.  By
"fixed consumption" is  meant  estimates  of  the  public's  consumption  of
product as a limit on production.

    There are several ways to "fix a consumption statistic". These are:

    1. Provide just so many auditors for the HGC to agree with expected pcs.

    2. Schedule just as many courses in the Academy as one thinks there will
    be students.

    3. Provide just enough quarters  to  handle  the  expected  quantity  of
    business.

    Unless one disregards the expectancy and unless one simply furnishes all
the service one  can,  regardless  of  past  statistics,  the  org  will  go
downhill.

    Several orgs work on the basis that there is just so much  business  and
that one must only cater to that. Sydney,  Auckland  and  some  others  have
gone so far as to hold a one student course with hours arranged to fit  that
student. Joburg has in the past let the pc decide how and when he is  to  be
audited and has had a registrar assigning the hours  (with  35  auditors  on
the payroll  and  pcs  getting  2  hours  each  a  week,  35  auditors  were
delivering only 100 auditing hours a week!).

    Any org that does not simply provide good  uniformly  scheduled  service
will fail.




                              _________________




    Let us have an example of a car industry working on a fixed  consumption
statistic. The directors look up the last year and see that  1,000,000  cars
were bought. They decide then, for this year, to  make  1,000,000  cars.  As
they keep doing this year to year they eventually begin  to  make  less  and
less cars and one day go out of business.

    That is NOT the way to go about it.

    What the directors should have done was ignore the last year's stat  and
call in the head of production and ask, "How many can  you  make  this  next
year?" The guy says, "2,500,000". The Board says, "Good.  Make  them."  Then
the Board calls in their Distribution Division and says, "Tell  the  dealers
they will get 2 and Vi times as many cars next  year  so  be  sure  and  get
ready to sell them." And the Board calls in the letter reg and says,  "Write
every owner of one of our cars that he is going to be very pleased with  his
next model. And mail a magazine  to  all  of  them  once  every  two  months
tracing the new model's development."

    Now, in practice of course no car industry has any letter reg or Central
Files of customers and their Dist Div is a sort of list of dealers  so  that
Board couldn't do that. But a Sen org can!

    Now let us examine the exact same procedure in a Scientology org  if  it
were followed.

    Wrong way: The Exec Council sees how many students and pcs were  trained
and processed last year and arranges to train and  process  that  many  this
year. The registrar working alone must keep up some quota so begins to  make
special deals in desperation.

    The org goes downhill. Like Auckland, Sydney and Joburg did.