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HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex


                     HCO POLICY LETTER OF 13 MARCH 1965


Gen Non Remimeo

                               DIVISIONS 1,2,3





                        THE STRUCTURE OF ORGANIZATION
                                      WHAT IS POLICY?



    The only reason anyone fights good policy is they're too stupid  or  too
inexperienced in an org to understand it. Unable to grasp it, they  are  too
lazy to work  at  trying.  They  miss  words,  don't  see  reasons,  imagine
situations are otherwise and in general can't grasp it. So they try  not  to
use it or dream up their own. People with bad study  histories  can't  grasp
policy. For policy also follows the rules of study.

    Therefore never put a person with bad study history on a  key  executive
post. They can't grasp policy as they can't study it either.

    Only  personnel  with  quick  study  histories,  fast  passages  through
courses, can be counted on to put in an org or department pattern  and  keep
it wheeling. The others are too involved  in  their  own  troubles  and  too
imperceptive to be of any use in making an org boom.

    Such people do however sometimes have a use even when  not  straightened
up. They do well in pioneer areas where they have to do it all off the  cuff
and where their very inability  to  accept  anything  causes  them  also  to
refuse defeats and discouragements. Their inability to grasp a situation  is
often of benefit when bravery is required.  This  does  not  however  excuse
efforts to  make  them  more  capable  and  as  they  grow  older  and  more
experienced, they will also become brave and quick and will follow policy.

    Following policy is a matter of grasping situations and  knowing  policy
well enough to apply the  right  policy  to  the  right  situation-where  no
policy covers, an experienced, quick person can easily extend  the  idea  of
general policy to cover it, knowing it isn't covered.

    The dull person has never even  grasped  basic  general  policy  and  so
confronted with usual or unusual situations alike, can't find any policy  to
cover anything and so acts in any old way.

    On the other hand, policy, to fit and be of benefit, must be itself born
out of great insight and familiarity with the facts.  Government  policy  is
usually written by clerks who have  never  heard  a  shot  fired  in  anger.
Therefore almost all current government policy is completely  silly.  Nobody
can apply it  as  it  fits  nothing  and  just  gets  everyone  in  trouble.
Therefore a quick person with good judgement in the field and  in  the  real
situation can get through only by following his own policies  and  insights.
This is easily mistaken for a dull person  acting  against  policy  that  is
good.

    But even dull policies provide wide agreement as a basis  for  work  co-
ordination and so something happens on a  larger  scale.  Individual  policy
making on every post is the definition of chaos. Thus  even  bad  policy  is
usually more workable than individual policy and can make stronger orgs.

    Brilliant policy based on experience of course can cause orgs to zoom.

    We conclude then that where we see a person constantly off policy in  an
area that has worked well when on policy, that we must act.

    Where we have a large organizational scope we must have workable  policy
that is followed. For just lacking policy good or bad and lacking its  being
followed, we stay small by definition.

    NO POLICY EXISTING MAKES SMALL NON-EXPANDING DEPARTMENTS OR ORGS.

    POLICY GOOD OR BAD EXISTING BUT NOT FOLLOWED MAKES  CHAOTIC  DEPARTMENTS
OR ORGS AND CAUSES SHRINKAGE.

    GOOD POLICY BASED ON ACTUAL SITUATIONS EXPERIENCED FOLLOWED  WELL  MAKES
AN EXPANDING DEPARTMENT, ORG OR CIVILIZATION.