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                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I I APRIL 1970

Remimeo

THIRD DYNAMIC TECH

The material contained in HCO BULLETINS applies to the FIRST DYNAMIC  -self,
the individual.

The data, material and procedures contained in POLICY LETTERS apply  to  the
THIRD DYNAMIC-the dynamic of groups,

In applying HCOBs as in auditing  a  preclear,  you  see  that  following  a
certain procedure results in the remedy of a certain personal situation.

In applying HCO Policy Letters, you see  that  by  following  or  continuing
certain Third Dynamic procedures you  remedy,  handle  or  continue  certain
situations which relate to groups.

In both cases, SURVIVAL is the keynote of the end result.

HCOB auditing tech increases the survival of the individual as an
individual.

HCO Pol Ltr Third Dynamic Tech increases the survival of the group.

Man has always had a certain amount  of  know-how  in  both  individual  and
group matters of survival but he has never had any high level of result.

It is easy to see auditing improve the individual when  it  is  exactly  and
expertly applied.

Similarly one can see Third Dynamic Tech improve the group and its  survival
potential.

Just as there is "squirrel" auditing (alter-ised and  unworkable)  so  there
can be "squirrel" Third Dynamic Tech.

An executive who has no familiarity with HCO Pol Ltrs can make an awful  lot
of mistakes.

It is an easy pretense that First Dynamic Tech existed. But no one  got  any
better when Man knew no more than the mumbo-jumbo he had before 1950.  Since
then real results occur. But  they  only  occur  when  the  actual  tech  of
Dianetics and Scientology is correctly applied.

The same situation existed in the field of the Third Dynamic.  The  pretense
was that "business" tech was successful, to name  one.  But  17  out  of  19
businesses fail every year and the whole of  the  business  world  is  under
threat from the ideology of communism.  Strikes,  legislation,  banking  and
other catastrophes daily remain unhandled by  "business  tech."  So  there's
only pretense that "business tech" applies to groups successfully. It is  at
best a dying technology.

The failure is that previous Third Dynamic Tech did not seek out  and  learn
the basic laws on which it must have existed.

You have seen the First Dynamic Tech of auditing develop  over  the  decades
to a highly precise and very workable body of knowledge. The current  search
began in about 1931. By 1970 it was in full practice over the world.

The need of organizations to serve the First Dynamic Tech beginning in  1949
forced further and further into view the absence of Third Dynamic  Tech  and
its vital need.





With much hard experience the data now contained in HCO Policy  Letters  was
won. In 1965 1 began an active  search  for  the  basic'laws  of  the  Third
Dynamic. What has been found since  then  has  been  recorded  on  tapes  or
published in HCO Pol Ltrs.

If auditing took 38 years to bring to a highly polished state, then  the  20
years of experience of which only 5 were devoted  to  an  active  effort  to
locate the basic laws can be seen to be an incomplete study.

But incomplete or not, the data and drills contained in HCO  Policy  Letters
are a great advance over what Man had.

For instance, in 1950-51, using the crude organizational tech Man then  had,
the first board of directors of Dianetics Foundations  failed  utterly.  Any
and all off-on-thewrong-foot moves which became later woes to us  were  laid
in at that time by some of the finest legal, accounting and PR  experts  one
could retain.

Twenty years later our  organizations,  traveling  on  our  developed  Third
Dynamic Tech (and even now poorly  known  by  staffs)  have  enabled  us  to
survive in the teeth of old vested interests and not only that to expand  as
well.

This is due to the practical know-how we have dredged up and used and  which
you find in HCO Policy Letters.

Naturally, we have not had time to develop Third Dynamic  Drills  for  every
situation. We have not had time even to train all our staffs.

But the basic knowledge is there, recorded on tape and on HCO Pol  Ltrs  and
when known,  understood  and  used  it  gives  us  survival,  expansion  and
prosperity. When it isn't known or understood or used, only then do we sag.

If a study of our Third Dynamic Tech is approached from the  viewpoint  that
it is for use and when known, understood and used that it  will  deliver  an
expected result, then one has a proper framework for the study of it.

If one thinks it is a series of orders, or just some random ideas, then  one
will not have the use of it.

The short span of men's lives inhibits  the  full  development  of  any  one
subject in one lifetime. Thus there is a lot of room for  further  expansion
of our Third Dynamic Tech. But the basic laws can be found in  it  and  many
exact drills are contained in it and it has  great  value  in  any  zone  of
application.

What we now know and  use  of  our  Third  Dynamic  Tech  is  all  that  has
forwarded our survival so far.

Thus its wider understanding and use in our own organizations is the key  to
prosperity and expansion.

An "old experienced Scn executive" (who has a lot of this know-how)  can  go
into a collapsing org and boom it. The data he is  using  is  all  in  these
policy letters. He knows it is there for use and he uses it in action.

The elements he uses are in HCO Policy Letters.

The data encompasses Third Dynamic Tech. It is applied very  much  like  one
applies the First Dynamic Tech to the individual.

In its present state of development, like  early  auditing  material,  Third
Dynamic Tech is used to think with, and only the bright  mind  will  achieve
its full potential in action.

L. RON HUBBARD

LRH:dz.cden.nf   Founder





2



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 26 APRIL 1970R

Remimeo     REVISED 15 MARCH 1975

Data Series IR

THE ANATOMY OF THOUGHT

There are many types of thought. Unless one knows these types  he  can  make
serious errors on administrative lines.

In the unpublished work "Excalibur" (most of  which  has  been  released  in
HCOBs, PLs and books) there was an important fundamental truth. This was

SANITY  IS  THE  ABILITY  TO   RECOGNIZE   DIFFERENCES,   SIMILARITIES   AND
IDENTITIES.

This is also intelligence.

Two or more facts or things that are totally unlike are DIFFERENT. They  are
not the same fact or same object.

Two or more facts or things that have something in common with  one  another
are SIMILAR.

Two or more facts or things that have all their  characteristics  in  common
with one another are IDENTICAL.

SEMANTICS

In a subject developed by Korzybski a great deal of stress is given  to  the
niceties of words. In brief a word is NOT the thing. And an  object  exactly
like another object is different because it occupies a different  space  and
thus "can't be the same object."

As Alfred Korzybski studied under psychiatry and  amongst  the  insane  (his
mentor was William Alanson White  at  Saint  Elizabeth's  insane  asylum  in
Wash., D.C.) one can regard him mainly as the father of confusion.

This work, 'general semantics," a corruption of semantics,  (meaning  really
"significance" or the "meaning of words") has just enough  truth  in  it  to
invite interest and just enough curves to injure one's ability to  think  or
communicate. Korzybski did not know the formula of human  communication  and
university professors teaching semantics mainly ended up  assuring  students
(and proving it) that no one can  communicate  with  anyone  because  nobody
really knows what anybody else means.

As this "modern" (it was known to the Greeks, was a  specialty  of  Sophists
and was  also  used  by  Socrates)  penetration  into  culture  affects  all
education in the West today, it is no wonder that current  communication  is
badly strained.  Schools  no  longer  teach  basic  logic.  Due  to  earlier
miseducation in language and no real education  in  logic  much  broken-down
"think" can occur in high places.

A system of thinking derived from a  study  of  psychotics  is  not  a  good
yardstick to employ in solving problems. Yet  the  "thinking"  of  heads  of
states is based on illogical and irrational rules. Populations,  fortunately
less "well-educated," are assaulted by the irrational (kooky) "thinking"  of
governments. This "thinking" is faulty mainly because it  is  based  on  the
faulty logic shoved  off  on  school  children.  "You  must  study  geometry
because that is the way you think" is an idiocy that has  been  current  for
the past two or three decades in schools.

I have nothing against Korzybski. But the general impact of "general
semantics"

3



has been to give  us  stupified  schoolboys  who,  growing  up  without  any
training  in  logic  except  general  semantics  are  giving  us   problems.
Increasingly we are dealing with people who have never been taught to  think
and whose native ability to do so has been hampered by a false "education."

ADMINISTRATIVE TROUBLE

At once this gives an administrator trouble. Outside and inside  his  sphere
of influence he is dealing with people who not only  can't  think  but  have
been taught carefully to reach irrational conclusions.

One can make a great deal of headway and  experience  a  lot  of  relief  by
realizing the way things are and not getting  exasperated  and  outraged  by
the absurdities that he sees being used as "solutions." He is  dealing  with
people who in school were not only  not  taught  to  think  but  were  often
taught the impossibility of thinking or communicating.

This has a  very  vast  influence  on  an  administrator.  Things  that  are
perfectly obvious to him get so muddled when passed for decision  to  others
that an administrator tends to go into apathy or despair.

For instance it is completely logical to him that some activity must  either
cut its expenses or make more money before it goes broke. So he passes  this
on as an order demanding that  the  activity  balance  up  its  income-outgo
ratio. He gets back a "solution" that they "get a huge sum  each  week  from
their reserves" so they will be "solvent." The administrator  feels  rattled
and even betrayed. What reserves? Do they have reserves? So  he  demands  to
know, has this activity been salting away reserves he  knew  nothing  about?
And he receives a solemn reply-no they don't  have  any  reserves  but  they
consider the administrator should just send them money!

The idiocy involved here  is  that  the  "logic"  of  the  persons  in  that
activity is not up to realizing that you cannot take more out  of  something
than is in it.

And the activity mentioned is not alone. Today the  "assets"  of  a  company
are said by "competent economists" to be its property-good  will-cash  added
to its debts! In short, if you have ten pennies  and  owe  E1000  then  your
assets are E1000-0-10!

Yes, you say, but that's crazy! And you're right.

For an example of modern "think" the Ford Foundation  is  believed  to  have
financially supported the arming of revolutionary groups  so  they  will  be
dependent upon the capitalistic system and won't overthrow  it  even  though
the revolutionary group could not exist without Ford Foundation support!

A war is fought and continued for years to defend  the  property  rights  of
landlords against peasants although the landlords are mostly dead.

Electronic computers are exported under government license and paid  for  by
the exporter and shipped to  an  enemy  who  could  not  bomb  the  exporter
without them in order to prevent the enemy from bombing the exporter.

Yes, one says. That's treason. Not  necessarily.  It  is  the  inability  to
think! It is the result of suppressing the native ability by  false  systems
of "logic."

PROPER DEFINITIONS

People who annoy one with such weird "solutions" do not know certain

differences.

Thoughts are infinitely divisible into classes of thought.

In other words, in thought there are  certain  wide  differences  which  are
very different indeed.

A FACT is something that can be proven to exist by visible evidence.

An OPINION is something which may or may not be based on any facts.

      4



Yet a sloppy mind sees no difference between a FACT and somebody's opinion.

In courts a psychiatrist (who is an AUTHORITY) says "Joe Doakes  is  crazy."
Joe Doakes is promptly put away for ten years, tortured or killed. Yet  this
statement is just an OPINION uttered by somebody whose sanity is  more  than
suspect and what's more is taken from a  field  "psychiatry"  which  has  no
basis in fact since it cannot cure or even detect insanity.

A vast number of people see no difference at all in FACTS and  OPINIONS  and
gaily accept both or either as having equal validity.

An  administrator  continually  gets  opinions  on  his  lines   which   are
masquerading as facts.

If opinion instead of facts is used in solving problems then  one  comes  up
with insane solutions.

Here is an example: By opinion it  is  assumed  there  are  3000  pounds  of
potatoes available in a crop. An order  is  therefore  written  and  payment
($300 at 100 a pound) is  made  for  the  crop.  One  sack  of  potatoes  is
delivered containing 100 pounds. That sack was thefact. Loss is 2900  pounds
of potatoes,

An administrator runs into this continually. He sends somebody  to  find  an
electric potato peeler "just like the one we had." He  gets  back  a  paring
knife because it is the same.

The administrator orders a similar type of shirt and gets overcoats.

The  administrator  feels  he  is  dealing  with  malice,  sharp   practice,
laziness, etc., etc. He can lose all faith in honesty and truthfulness.

The ACTUAL REASON he is getting such breakdowns is

SANITY  IS  THE  ABILITY  TO   RECOGNIZE   DIFFERENCES,   SIMILARITIES   AND
IDENTITIES.

The people with whom he is dealing can't think to such a  degree  that  they
give him insane situations. Such people are not  crazy.  Their  thinking  is
suppressed  and  distorted  by  modern  "education."   "You   can't   really
communicate to anybody because the  same  word  means  different  things  to
everyone who uses it." In other words, all identities are different.

A BASIC LAW is usually confused by students with an  INCIDENTAL  FACT.  This
is conceiving a similarity when one, the law, is so far senior to  the  fact
that one could throw the fact away and be no poorer.

When a student or an employee cannot USE a  subject  he  studies  or  cannot
seem to understand a situation his disability is that basics  are  conceived
by him to be merely similar to incidental remarks.

The law, "Objects fall when dropped," is just the same to him as the  casual
example "a cat jumped off a chair and landed on the floor." Out of  this  he
fixedly keeps in mind two "things he read"-objects fall when dropped, a  cat
jumped off a chair and landed on the floor.  He  may  see  these  as  having
identical value whereas they are similar in subject but widely different  in
VALUE.

You give this person a brief write-up of company policy. "Customers must  be
satisfied with our service," begins the write-up. Of  course  that's  a  law
because it has been found to be catastrophic to  violate  it.  On  down  the
page is written, "A card is sent to advise the customer  about  the  order."
The employee says he understands all this and goes off apparently  happy  to
carry out his duties. A few weeks later Smith and Co.  write  and  say  they
will do no more business with you. You hastily  try  to  find  out  WHY.  If
you're lucky enough to track it down, you find the shipping clerk sent  them
a card saying, "Your order was received and we don't intend to fill it."

You have the clerk in. You lay down the facts. He looks at you glumly and
says

5



he's sorry. He goes back and pulls another blooper.  You  threaten  to  fire
him. He's now cost the company $54,000. He is contrite.

All he understands is that life is confusing and that  for  some  mysterious
reason you are mad at him, probably because you are naturally grouchy.

What he doesn't know is what the administrator seldom taps.  It  isn't  that
he doesn't know "company policy." It's that he doesn't know  the  difference
between a law and a comment!

A law of course is something with which one thinks. It is a thing  to  which
one aligns other junior facts and actions. A law lets one  PREDICT  that  if
ALL OBJECTS FALL when not supported, then of course cats, books  and  plates
can be predicted in behavior if one lets go of them. As the employee  hasn't
a clue that there is any difference amongst laws,  facts,  opinions,  orders
or suggestions he of course cannot think as  he  doesn't  have  anything  to
which he can align other data or with which to predict consequences.

He doesn't even know that company policy is, "Too many goofs equals  fired."
So when he does get sacked he thinks "somebody got mad at him."

If you think this applies only to the "stupid employee," know that  a  whole
government service  can  go  this  way.  Two  such  services  only  promoted
officers to high rank if they sank their own ships or got their men  killed!
Social acceptability was the only datum used for promotion and  it  followed
that men too socially involved (or too drunk) of course lost battles.

An organization, therefore, can itself be daffy if it  has  a  concept  that
laws and facts and opinions are all the same thing and so has  no  operating
policies or laws.

Whole bodies of knowledge can go this route. The  laws  are  submerged  into
incidental facts. The incidental facts are held  onto  and  the  laws  never
pointed up as having the special value of aligning other data or actions.

An administrator can call a  conference  on  a  new  building,  accidentally
collect people who can't differentiate  amongst  laws,  facts,  opinions  or
suggestions-treating them of equal value-and find himself  not  with  a  new
building but a staggering financial loss.

As the world drifts along with its generations  less  and  less  taught  and
more and more suppressed in thinking, it will of course experience more  and
more catastrophes in economics, politics and culture and so go boom. As  all
this influences anyone in any organization it is an important point.

PERSONNEL

In despair an administrator  enters  the  field  of  choosing  personnel  by
experience with them. He embraces a very cruel modern system that  fires  at
once anybody who flubs.

Actually he is trying to defend himself against some hidden  menace  he  has
never defined but which haunts him day by day.

The majority of people with whom he deals-and especially  governments-cannot
conceive of

1. differences,

2. similarities,

3. identities.

As a result they usually can't tell a FACT  from  an  OPINION  (because  all
differences are probably identities and all  identities  are  different  and
all similarities are imaginary).

A=A=A

We have a broad dissertation on this in Dianetics:  The  Modern  Science  of
Mental Health as it affects insane behavior. Everything is everything  else.
Mr. X looks at a

6



horse knows it's a house knows it's a school teacher.  So  when  he  sees  a
horse he is respectful.

When anyone in an org is sanely trying to get things done he sometimes
feels like

he is spinning  from  the  replies  and  responses  he  gets  to  orders  or
requests. That's because observation was faulty or think was faulty  at  the
other end of the comm line. As he tries to get  things  done  he  begins  to
realize (usually falsely) that he is

regarded as odd for getting impatient.

THE WAYS OUT

There are several ways out of this mess.

a.    One is to issue orders that demand close observation and execution.
Issuance of

clear orders provides no faintest opportunity of error, assumption or
default.

b.    Another is to demand that an order is fully understood before it is
executed.

C.    A third is to be sure one totally understands any order one receives
before one

goes off to do it or order it done.

d.    One is to deal only in ORDERS and leave nothing to interpretation.

e.    Another is to pretest personnel on one's lines for ability to observe
and conceive

differences, similarities and identities.

f.    The effective way is to get the personnel processed.

g.    A useful way is to educate people with drills until they can think.

h.    Another way is to defend one's areas by excluding insofar as possible
adjacent

areas where crippled think is rampant.

i.    A harsh way is to plow under zones whose irrationality is destructive
(such as

psychiatry).

THOUGHT CONFUSIONS

Wherever you have thought confusions (where FACT = OPINION, where

Suggestion = Orders, where an observation is taken  as  a  direction,  etc.,
etc., etc.) an administrator is at serious risk.

Misunderstoods pile up on these short circuits. Out of misunderstoods come

hostilities. Out of these come overwork or destruction.

The need for all discipline can be traced back to the inability to think.
Even when

appearing clever, criminals are idiots;  they  have  not  ever  thought  the
thought through. One can conclude that anyone on management lines,  high  or
low, is drastically

affected by irrational think.

Individuals to whom differences are identities and identities are
differences can

muddle up an operation to a point where disaster is inevitable.

These are the third dynamic facts with which an organization lives daily.

The fault can be very subtle so as to nearly escape close search or it can
be so very

broad so that it is obvious and ridiculous. But on all admin lines, the
point that fails has

not achieved the basic law

SANITY IS THE ABILITY TO RECOGNIZE DIFFERENCES, SIMILARITIES

AND IDENTITIES.

L. RON HUBBARD

Founder

LRH:nt.nf , 1975

7



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I I MAY 1970

Remimeo

Data Series 2

LOGIC

The subject of logic has been under discussion for at least  three  thousand
years without any clean breakthrough of real use  to  those  who  work  with
data.

LOGIC means the subject of reasoning. Some  in  ages  past  have  sought  to
label it a science. But that can be discarded as pretense and pompousness.

If there were such a "science" men would be able to think. And they can't.

The term itself is utterly forbidding. If you were to read a text  on  logic
you would go quite mad trying to figure it  out,  much  less  learn  how  to
think.

Yet  logic  or  the  ability  to  reason  is  vital  to  an   organizer   or
administrator. If he cannot think clearly he will not be able to  reach  the
conclusions vital to make correct decisions.

Many agencies, governments, societies, groups, capitalize upon this lack  of
logic and have for a very long time. For the bulk of the  last  2,000  years
the main western educator-the Church-worked on the theory  that  Man  should
be kept ignorant. A population that is unable to  think  or  reason  can  be
manipulated easily by falsehoods and wretched causes.

Thus logic has not been a supported subject, rather the opposite.

Even western schools today seek  to  convince  students  they  should  study
geometry as "that is the way they think." And of course it isn't.

The administrator, the manager, the  artisan  and  the  clerk  each  have  a
considerable use for logic. If they cannot reason they make costly and time-
consuming errors and  can  send  the  entire  organization  into  chaos  and
oblivion.

Their stuff in trade are data and situations. Unless they  can  observe  and
think  their  way  through,  they  can  reach  wrong  conclusions  and  take
incorrect actions.

Modern Man thinks mathematics can serve  him  for  logic  and  most  of  his
situations  go  utterly  adrift  because  of  this  touching  and  misplaced
confidence. The complexity of human problems and the vast number of  factors
involved make mathematics utterly inadequate.

Computers are at best only servomechanisms (crutches) to the mind.  Yet  the
chromium-plated civilization today has a childish faith in them. It  depends
on who asks the questions and who reads the computer's answers whether  they
are of any use or not. And  even  then  their  answers  are  often  madhouse
silly.

Computers can't think because the rules of live logic aren't fully known  to
Man and computer builders. One false datum fed into a computer gives  one  a
completely wrong answer.

If people on management and work lines do not know  logic  the  organization
can go adrift and require a fabulous amount of genius to  hold  it  together
and keep it running.

Whole civilizations vanish because of lack of logic in its rulers, leaders
and people.

So this is a very important subject.

8



UNLOCKING LOGIC

I have found a way now to unlock this subject. This is a breakthrough  which
is no small win. If by it a formidable and almost impossible subject can  be
reduced to simplicity then correct answers to situations  can  be  far  more
frequent and an organization or a civilization far more effective.

The breakthrough is a simple one.

BY ESTABLISHING THE WAYS IN WHICH  THINGS  BECOME  ILLOGICAL  ONE  CAN  THEN
ESTABLISH WHAT IS LOGIC.

In other words, if one has  a  grasp  of  what  makes  things  illogical  or
irrational (or crazy, if you please) it is  then  possible  to  conceive  of
what makes things logical.

ILLOGIC

There are 5 primary ways for a  relay  of  information  or  a  situation  to
become illogical.

1.    Omit a fact.

2.    Change sequence of events.

3.    Drop out time.

4.    Add a falsehood.

5.    Alter importance.

These are the basic things which cause one to have an incorrect idea of a
situation.

Example: "He went to see a communist and left  at  3:00  A.M."  The  omitted
facts are that he went with 30 other people and that  it  was  a  party.  By
omitting the fact one alters the importance. This  omission  makes  it  look
like "he" is closely connected to communism! When he isn't.

Example: "The ship left the dock and was  loaded."  Plainly  made  crazy  by
altering sequence of events.

Example: "The whole  country  is  torn  by  riots"  which  would  discourage
visiting it in 1970 if one didn't know the report date of 1919.

Example: "He kept skunks for pets" which as an added falsehood makes  a  man
look odd if not crazy.

Example: "It was an order" when in fact it was only a suggestion,  which  of
course shifts the importance.

There are hundreds of ways these 5 mishandlings of data can then give one  a
completely false picture.

When basing actions or orders on data which contains one of the  above,  one
then makes a mistake.

REASON DEPENDS ON DATA.

WHEN DATA IS FAULTY (as above) THE ANSWER WILL BE WRONG AND LOOKED  UPON  AS
UNREASONABLE.

There are a vast number of combinations of these 5 data. More than  one  (or
all 5) may be present in the same report.

Observation and its communication may contain one of these 5.

If so, then any effort to  handle  the  situation  will  be  ineffective  in
correcting or handling it.

9



USE

If any body of data is given the above 5 tests, it is often exposed as an
invitation to acting illogically.

To achieve a logical answer one must have logical data.

Any body of data which contains one or more of the above faults can lead
one into illogical conclusions.

The basis of an unreasonable or unworkable order is a conclusion which is
made illogical by possessing one or more of the above faults.

LOGIC

Therefore logic must have several conditions:

1.    All relevant facts must be known.

2.    Events must be in actual sequence.

3     Time must be properly noted.

4.    The data must be factual, which is to say true or valid.

5.    Relative importances amongst the data must be recognized by comparing
the facts with what one is seeking to accomplish or solve.

NOT KNOW

One can always know something about anything.

It is a wise man who, confronted with conflicting data, realizes that he
knows at least one thing-that he doesn't know.

Grasping that, he can then take action to find out.

If he evaluates the data he does find out against the five things above, he
can clarify the situation. Then he can reach a logical conclusion.

DRILLS

It is necessary to work out your own examples of the 5 violations of logic.

By doing so, you will have gained skill in sorting out the data of a
situation.

When you can sort out data and become skilled in it, you will become very
difficult to fool and you will have taken the first vital step in grasping
a correct estimate of any situation.

L. RON HUBBARD

Founder

LRH:dz.nf

10



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I I MAY 1970-1

Remimeo     ADDITION OF 23 SEPTEMBER 1977

Data Series 2-1

FURTHER ILLOGICS

Data Series 2, "Logic," lists the 5 primary points of illogic. There are 3
more points of illogic that evaluators should know well and use.

These are

ASSUMED "IDENTITIES" ARE NOT

IDENTICAL

ASSUMED "SIMILARITIES" ARE NOT

SIMILAR OR SAME CLASS OF THING

ASSUMED "DIFFERENCES" ARE NOT

DIFFERENT

Knowledge and study of Data Series I R "Anatomy of Thought" and Data Series
2 "Logic" will give one an understanding of what these outpoints, above,
mean and how to recognize and use them in evaluation.

L. RON HUBBARD

Founder

Assisted by

Lt. Og) Suzette Hubbard

AVU Verif Officer

LRH:SH:nt.nf , 1977

I I



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 MAY 1970

Remimeo

Data Series 3

BREAKTHROUGHS

There are two breakthroughs, actually, that have been made here in the  age-
old philosophic subject of logic.

The first is FINDING A DATUM OF COMPARABLE MAGNITUDE TO THE SUBJECT.

A single datum or subject has to have a  datum  or  subject  with  which  to
compare it before it can be fully understood.

By studying and isolating the principles that  make  a  situation  illogical
one can then see what is necessary to be logical. This gives  us  a  subject
that could be called "Illogicality Testing" or "Irrationality Location"  but
which would be better described as DATA ANALYSIS. For it subjects  data  and
therefore SITUATIONS to tests which establish any falsity or truth.

The other breakthrough consists of the discovery that no rules of logic  can
be valid unless one also includes the  data  being  used.  The  nearest  the
ancients came to this was testing the premise or basis of an argument.

Trying to study logic without also  having  the  answers  to  data  is  like
describing everything about an engine without mentioning what fuel  it  runs
on; or making a sentence like "He argued about" or  "She  disliked"  without
completing it.

Logic concerns obtaining answers. And answers depend  on  data.  Unless  you
can test and establish the truth and value  of  the  data  being  used,  one
cannot attain right answers no matter what Aristotle may have said  or  what
IBM may have built.

The road to logic begins with ways and means of  determining  the  value  of
the data to be employed in it.

Without that step no one can arrive at logic.

Two things that are equal to each other and to which a third  is  equal  are
all equal to one another. If A equals B and B equals C,  then  C  equals  A.
Great. This is often disputed as a theorem of logic and has been ever  since
Aristotle said so. There is even a modern cult of non-Aristotelian logic.

The facts are that the ancient theorem is  totally  dependent  on  the  DATA
used in it. Only if the DATA is correct does the theorem work.

Lacking emphasis on the data being used, this theorem can be proven true  or
false at will. The philosophers point out the fallacy  without  ever  giving
emphasis to data evaluation.

DATA ANALYSIS

Unless you can prove or disprove the data you use in any logic  system,  the
system itself will be faulty.

This  is  true  of  the  IBM  computer.  It  is  true  of  CIA  intelligence
conclusions. It is true of Plato, Kant, Hume and your own personal  computer
as well.

12



DATA ANALYSIS is necessary to ANY logic system and always will be.

Ships run on oil, electric motors on electricity and logic runs on data.

If the data being stuffed into a computer is incorrect, no matter  how  well
a computer is planned or built or proofed up against faults you  can  get  a
Bay of Pigs.

In mathematics no formula will give an answer better  than  the  data  being
used in it.

VALID ANSWERS MAY ONLY BE ATTAINED IN USING VALID DATA.

Thus, if the subject of data analysis is neglected or imperfect  or  unknown
or unsuspected as a step,  then  wild  answers  to  situations  and  howling
catastrophes can occur.

If data analysis becomes itself  a  codified  subject,  regardless  of  what
formula is going to be used, then right answers can only then be attained.

THE MIND AS A COMPUTER

The mind is a remarkable computer.

It is demonstrable that a mind which has the wrong answers removed  from  it
becomes brighter, IQ soars.

Therefore for our purposes we will consider the mind capable of being
logical.

As processing improves the mind's ability to reach right  answers,  then  we
can assume for our purposes that if a person can straighten out his data  he
can be logical  and  will  be  logical  and  can  attain  right  answers  to
situations.

The fallacy of the mind is that it can operate on wrong data.

Thus if we specialize in the subject of DATA ANALYSIS we can assume  that  a
person can attain right answers.

As an administrator (and anyone else) has to reach conclusions in  order  to
act and has to act correctly to ensure his  own  or  his  group's  continued
survival, it is vital that he be able to observe and conclude  with  minimal
error.

Thus we will not be stressing HOW to think but  how  to  analyze  that  with
which one thinks-which is DATA.

This gives us the importance and use of data analysis.

L. RON HUBBARD

Founder

LRH:nt.rd.nf Copyright ID 1970

13



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 15 MAY 1970

Remimeo

Data Series 4

DATA AND SITUATION ANALYZING

The two general steps one has to take to "find out what is really going on"
are

1.    Analyze the data,

2.    Using the data thus analyzed, to analyze the situation.

The way to analyze data is to compare it to the 5 primary points and see  if
any of those appear in the data.

The way to analyze the situation is to put in its smaller areas each of  the
data analyzed as above.

Doing this gives you the locations of greatest error or disorganization  and
also gives you areas of greatest effectiveness.

Example: There is trouble in the Refreshment Unit. There  are  3  people  in
the unit. Doing a data analysis on the whole  area  gives  us  a  number  of
outpoints. Then we assign these to A, B and C who work in the unit and  find
B  had  the  most  outpoints.  This  indicates  that  the  trouble  in   the
Refreshment Unit is with B. B can be handled in various  ways  such  as  his
hat, his attendance, etc. Note we analyzed the data of  the  main  area  and
assigned it to the bits in the area, then we had an analyzed  situation  and
we could handle.

Example: We analyze all the data we have  about  the  Bingo  Car  Plant.  We
assign the data thus analyzed as out (outpoints) to  each  function  of  the
Bingo Car Plant. We thus pinpoint what function is the worst  off.  We  then
handle that function in various  ways,  principally  by  organizing  it  and
grooving in its executives and personnel.

There are several variations.

WE OBTAIN AN ANALYSIS OF THE SITUATION BY ANALYZING ALL  THE  DATA  WE  HAVE
AND ASSIGNING THE OUTPOINT DATA TO THE AREAS OR PARTS. THE AREA  HAVING  THE
MOST OUTPOINTS IS THE TARGET FOR CORRECTION.

In confronting a broad situation  to  be  handled  we  have  of  course  the
problem of finding out what's wrong before we can correct it. This  is  done
by data analysis followed by situation analysis.

We do this by grading all the data for outpoints (5  primary  illogics).  We
now have a long list of outpoints. This is data analysis.

We sort the outpoints we now have into the principal  areas  of  the  scene.
The majority will appear in one area. This is situation analysis.

We now know what area to handle.

Example: Seventy data exist on the general scene. We find 21 of  these  data
are irrational (outpoints). We slot the 21 outpoints  into  the  areas  they
came from or apply to. Sixteen came from area G. We handle area G.

14



0007"

EXPERIENCE

The remarkable part of such an exercise is that the  data  analysis  of  the
data of a period of I day compares to 3 months operating experience.

Thus data and situation analysis  is  an  instant  result  where  experience
takes a lot of time.

The  quality  of  the  data  analysis  depends  on  one  knowing  the  ideal
organization and purpose on which the activity is based. This means one  has
to know what its activities are supposed to be from a  rational  or  logical
viewpoint.

A clock is supposed to keep running and indicate time and  be  of  practical
and pleasant design. A clock factory is  supposed  to  make  clocks.  It  is
supposed to produce enough clocks cheaply enough that are good enough to  be
in demand and to sell for enough to keep the place solvent. It consumes  raw
materials, repairs and replaces its tools and equipment.  It  hires  workmen
and executives. It has service firms and distributors. That is the  sort  of
thing one means by ideal or theoretical structure of the clock  company  and
its organization.

Those are the rational points.

From the body of actual current today data on the clock  company  one  spots
the outpoints for a DATA ANALYSIS.

One assigns the outpoints to the whole as a SITUATION ANALYSIS.

One uses his admin know-how and  expertise  to  repair  the  most  aberrated
subsection.

One gets a functioning clock factory that runs closer to the ideal.

Military, political and PR situations, etc., are handled all in the same
way.

We call these two actions

DATA ANALYSIS,

SITUATION ANALYSIS.

DEFINITIONS

SITUATION - The broad general scene on which a body of current data exists.

DATA - Facts, graphs, statements, decisions,  actions,  descriptions,  which
are supposedly true.

OUTPOINT - Any one datum that is offered as true that is in  fact  found  to
be illogical when compared to the 5 primary points of illogic.

PLUSPOINT - A datum of truth when  found  to  be  true  compared  to  the  5
points.

L. RON HUBBARD

Founder

LRH:dz.mrb.mes.nf

15



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 15 MAY 1970

                                  Issue 11

Remimeo

Data Series 5

INFORMATION COLLECTION

It is a point of mystery how some obtain their  information.  One  can  only
guess at how they do it and looking at results  wonder  if  it  is  actually
done at all.

Obtaining information is necessary for any analysis of data.

If one obtains and analyzes some information he  can  get  a  hint  of  what
information he should obtain in what area. By obtaining more  data  on  that
area he can have enough to actively handle.

Thus how one obtains information becomes a very important subject.

Nations have whole mobs of reporters sent out by newspapers, radio,  TV  and
magazines to collect information. Politicians go jaunting around  collecting
information. Whole spy networks are maintained at  huge  expense  to  obtain
information.

The Japanese in the first third of the 20th century had two maxims: "Anyone
can

spy." "Everyone must spy." The Germans picked this up. They had their whole

populations at it. The Russian KGB numbers hundreds of thousands. CIA
spends

billions. MI-6   well you get the idea.

It is not amiss however to point out that those 2 nations that  devoted  the
most effort to espionage (Japan and Germany) were BOTH DEFEATED HORRIBLY.

Thus the QUANTITY of data poured in is not any guarantee of understanding.

Newspapers today are usually devoted to propaganda,  not  news.  Politicians
are striving  to  figure  out  another  nation's  evil  intentions,  not  to
comprehend it.

The basic treatise on data collection and handling  used  to  found  the  US
intelligence data system ("strategic intelligence") would make one  laugh-or
cry.

All these elaborate (and expensive) systems of  collecting  information  are
not only useless, they are deluding. They get people in plenty of trouble.

A copy of Time magazine (US) analyzed for outpoints runs so  many  outpoints
per page when analyzed that one wonders how any  publication  so  irrational
could continue solvent. And what do you know! It is going broke!

Those countries that spend the most on espionage are in  the  most  trouble.
They weren't in trouble and then began to spend money.  They  began  to  spy
and then got into trouble!

News media and intelligence actions are not themselves bad.  But  irrational
news media and illogical intelligence activity are psychotic.

So information collection can become a vice. It can be overdone.

If one had every org in a network fill out a  thousand  reports  a  week  he
would not obtain much information but he sure would knock them out of comm.

16



There is a moderate flow of information through any network so  long  as  it
is within the capability of the comm lines and the personnel.

Thus we get a rule about collecting data in administrative structures.

NORMAL ADMIN FLOWS CONTAIN ENOUGH DATA TO DO A DATA AND SITUATION ANALYSIS.

And

THE LESS DATA YOU HAVE THE MORE PRECISE YOUR ANALYSIS MUST BE.

And

INDICATORS MUST BE WATCHED FOR IN ORDER TO UNDERTAKE A SITUATION ANALYSIS.

And

A SITUATION ANALYSIS  ONLY  INDICATES  THE  AREA  THAT  HAS  TO  BE  CLOSELY
INSPECTED AND HANDLED.

Thus, what is an "indicator"?

An indicator  is  a  visible  manifestation  which  tells  one  a  situation
analysis should be done.

An indicator is the little flag sticking out that shows there is a  possible
situation underneath that needs attention.

Some indicators about orgs or its sections would be-dirty or  not  reporting
or going insolvent  or  complaint  letters  or  any  nonoptimum  datum  that
departs from the ideal.

This is enough to engage in a data  and  situation  analysis  of  the  scene
where the indicator appeared.

The correct sequence, then, is

1.    Have a normal information flow available.

2.    Observe.

3.    When a bad indicator is seen become very alert.

4.    Do a data analysis.

5.    Do a situation analysis.

6.    Obtain more data by direct inspection of the area indicated by the
situation analysis.

7.    Handle.

An incorrect sequence, bound to get one in deep trouble is

A. See an indicator,

B. ACT to handle.

17



This even applies to emergencies IF ONE IS  FAST  ENOUGH  TO  DO  THE  WHOLE
CORRECT CYCLE IN A SPLIT SECOND.

Oddly enough anyone working in a familiar area CAN do it all in a split
second.

People that can do it like  lightning  are  known  to  have  "fast  reaction
time." People who can't do it fast are often injured or dead.

Example of an emergency cycle: Engineer  on  duty,  normal  but  experienced
perception. Is observing his area. Hears a hiss  that  shouldn't  be.  Scans
the area and sees nothing out of order but a  small  white  cloud.  Combines
sight and hearing. Moves forward to  get  a  better  look.  Sees  valve  has
broken. Shuts off steam line.

Example of an incorrect action. Hears hiss. Pours water on the boiler
fires.

ADMIN CYCLE

When you slow this down to an Admin Cycle it becomes very easy.  It  follows
the same steps.

It is not so dramatic. It could string out over months unless  one  realized
that the steps I to 7 should be taken when the first signs show up. It  need
not. However it sometimes does.

Sometimes it has to be done over and over, full cycle, to get a full scene
purring.

Sometimes the "handle" requires steps which the area is too broken  down  to
get into effect and so becomes "Handle as possible and remember  to  do  the
whole cycle again soon."

Sometimes "handle" is a program  of  months  or  years  duration;  its  only
liability is that it will be forgotten or thrown out  before  done  by  some
"new broom."

DATA COLLECTION

But it all begins with having a normal flow  of  information  available  and
OBSERVING. Seeing a bad indicator one becomes alert  and  fully  or  quickly
finishes off the cycle.

BAD INDICATOR

What is a "bad indicator" really?

It is merely an outpoint taken from the 5 primary outpoints.

I

It is not "bad news" or "entheta" or a rumor. The "bad news" could easily
be a falsehood and is an outpoint because it is false bad news!

"Good" news when it is a falsehood is an outpoint!

RELIABLE SOURCE

Intelligence services are always talking "reliable sources." Or about
"confirmed observation."

These are not very reliable ways of telling what is true. The master double
spy Philby as a head MI-6 adviser was a Russian spy. Yet for 30 years he
determined "reliable sources" for the US and England!

If three people tell you the same thing it is not necessarily a fact as
they might all

18



have heard the same lie. Three liars don't make one fact-they make three
outpoints.

So it would seem to be very difficult to establish facts if  leading  papers
and intelligence services can't do it!

Yes it is tough to know the truth.

But the moment you begin to work with them, it is rather easy to locate
outpoints.

You are looking for outpoints. When they are analyzed and the  situation  is
analyzed by them you then find yourself looking at the truth if  you  follow
the cycle I to 7.

It's really rather magical.

If you know thoroughly what the 5 primary outpoints are they leap into  view
from any body of data.

Oscar says he leads a happy married life. His wife is usually  seen  crying.
It's an outpoint-a falsehood.

The Omaha office is reported by Los Angeles to be doing great. It  fails  to
report. The LA datum does not  include  that  it  is  6  months  old.  Three
outpoints, one for time, one for falsehood, one for omitted datum.

Once you are fully familiar with the 5 primary outpoints they are very
obvious.

"We are having pie for supper" and "We have no flour" at least shows out  of
sequence!

It is odd but all the "facts" you protest in  life  and  ridicule  or  growl
about are all one or another of the outpoints.

When you spot them for what they are then you can actually estimate  things.
And the pluspoints come into view.

L. RON HUBBARD

Founder

LRH:nt.rd.nf

19



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 17 MAY 1970R

Remimeo     REVISED 16 SEPTEMBER 1978

(Revisions In th1s type style)

                      (Revised to correct typographical

                     errors in paragraphs 2 and 4 under

                             'FAULTS" section.)

Data Series 6R

DATA SYSTEMS

Two bad systems are in current use on data.

The first is "reliable source." In this system a report is  considered  true
or factual only if the source  is  well  thought  of.  This  is  a  sort  of
authority system. Most professionals working with data collection use  this.
Who said it? If he is considered  reliable  or  an  authority  the  data  is
considered true or factual. Sources are graded from A to D. A is highest,  D
lowest. The frailty of this system is at once apparent. Philby,  as  a  high
British intelligence official, was a Russian spy for 30 years. Any  data  he
gave the UK or US was "true" because he was  a  "reliable  source."  He  had
every Western agent who was being sent into communist areas  "fingered"  and
shot. The West became convinced you could not enter or  overthrow  communist
held areas and stopped trying! Philby was the top authority! He  fooled  CIA
and MI-6 for years!

Psychiatrists are "authorities" on the mind. Yet  insanity  and  criminality
soar. They are the "reliable sources" on the mind.

Need I say more?

The other system in use is multiple  report.  If  a  report  is  heard  from
several areas or people it is "true." The Russian KGB  has  a  Department  D
that forges documents and plants them in several parts of  the  world.  They
are then "true."

Propaganda spokesmen located all over the world say the same  thing  to  the
press on every major occasion. This becomes "public opinion"  in  government
circles and so is "true" because it is published  and  comes  from  so  many
areas.

Five informants could all have heard the same lie.

Thus we see these two systems of evaluation are both birdbrain.

TWO PROBLEMS

The two problems that information collection agencies have are

1.    Data evaluation and

2.    How to locate the areas they should closely investigate.

For (1), data evaluation, they use primarily reliable source and multiple
report.

EVERY ITEM RECEIVED THAT IS NOT "RELIABLE" OR "MULTIPLE" IS WASTE-BASKETED.

They throw out all outpoints and do not report them!

Their agents are thoroughly trained to do this.

20



As for (2), areas to investigate, they cannot  pinpoint  where  they  should
investigate or even what to  investigate  because  they  do  not  use  their
outpoints.

Using outpoints and data and situation  analysis  they  would  know  exactly
where to look at, at what.

ERRORS

The above data errors are practiced by the largest data collection  agencies
on the planet-the "professionals." These advise their governments!  And  are
the only advisers of their governments. Thus you can see how dangerous  they
are to their own countries.

Naturally they have agents who have what is called "flair."  These,  despite
all systems, apply logic. They are so  few  that  Eisenhower's  intelligence
adviser, General Strong, said in his book that they are too  scarce  so  one
is better off with a vast organization.

These agencies are jammed with false reports and false estimations.

An event contemporary with this writing where the US invaded Cambodia  shows
several data  and  situation  errors.  Yet  the  Viet  Cong  HQ  were  using
computers. Yet their HQ was wiped out. The US President used CIA data  which
does not include, by law, data on the US.  So  the  info  on  which  the  US
President was acting was 50% missing! He  was  only  told  about  the  enemy
evidently. When he ordered the invasion the US blew up!

A rather big outpoint (omitted facts) don't you think?

FAULTS

The reason I am  using  intelligence  examples  is  because  these  are  the
biggest human data collection "professionals" in the world.

The collection and use of data to  estimate  situations  to  guide  national
actions and the data collection by a housewife going shopping are  based  on
the same principles.

Mrs. Glutz, told by a "reliable  source,"  Nellie  Jones,  that  things  are
cheaper at Finkleberries and told by enough TV admen she should  buy  KLEANO
tends to do just that. Yet Blastonsteins is really cheaper  and  by  shaving
up laundry soap and boiling it she can have ten dollars worth of KLEANO  for
about fifty cents.

Errors in national data collection give us war and high taxes and  for  Mrs.
Glutz gives her a busted budget and stew all week.

So at top and bottom, any operation requires a grasp of data evaluation  and
situation estimation.

Those who do it will win and those who don't, go up in  a  cloud  of  atomic
particles or divorce papers!

Logic and illogic are the stuff of survive and succumb.

There are those who wish to survive.

L. RON HUBBARD

Founder

Revision assisted by

Pat Brice

LRH Compilations Unit I/C

LRH:PB:nt.dr.nf , 1978

21



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 MAY 1970

Remimeo

Data Series 7

FAMILIARITY

If one has no familiarity with how a scene (area) ought to  be,  one  cannot
easily spot outpoints (illogical data) in it.

This is what also could be called  an  IDEAL  scene  or  situation.  If  one
doesn't know the ideal scene or situation then one is not likely to  observe
non-ideal points in it.

Let us send a farmer to sea. In a mild blow, with yards and  booms  creaking
and water hitting the hull, he is sure the ship is about to sink. He has  no
familiarity with how  it  should  sound  or  look  so  he  misses  any  real
outpoints and may consider all pluspoints as outpoints.

Yet on a calm and pretty day he sees a freighter come  within  500  feet  of
the side and go full astern and thinks everything is great.

An experienced officer may attempt madly to  avoid  collision  and  all  the
farmer would think was that the officer  was  being  impolite!  The  farmer,
lacking any familiarity with the sea and having no ideal as to  what  smooth
running would be, would rarely see real outpoints unless he drowned. Yet  an
experienced sailor, familiar with the scene in all its changing  faces  sees
an outpoint in all small illogicals.

On the other hand, the sailor on the farm would completely miss rust in  the
wheat and an open gate and see no outpoints in a farm that the  farmer  knew
was about to go bust.

The rule is

A PERSON MUST HAVE AN IDEAL SCENE WITH WHICH TO COMPARE THE EXISTING SCENE.

If a staff hasn't got an idea of how a real org should run, then  it  misses
obvious outpoints.

One sees examples of this when an  experienced  org  man  visiting  the  org
tries to point out to a green staff (which  has  no  ideal  or  familiarity)
what is out. The green staff grudgingly fixes up what  he  says  to  do  but
lets go of it the moment he departs. Lacking familiarity and an ideal  of  a
perfect org, the green staff just doesn't see  anything  wrong  or  anything
right either!

The consequences of this are themselves illogical.  One  sees  an  untrained
executive shooting all the producers and letting the  bad  hats  alone.  His
erroneous ideal would be a quiet org, let us say. So he  shoots  anyone  who
is noisy or demanding. He ignores  statistics.  He  ignores  the  things  he
should watch merely because he has a faulty ideal and no  familiarity  of  a
proper scene.

OBSERVATION ERRORS

When the scene is not familiar one has to  look  hard  to  become  aware  of
things. You've noticed tourists doing this. Yet the old resident "sees"  far
more than they do while walking straight ahead down the road.

22



It is easy to confuse the novel with the "important fact." "It  was  a  warm
day for winter" is a useful fact  only  when  it  turns  out  that  actually
everything froze up on that day or it indicated some other outpoint.

Most errors in observation are made because one has no ideal for  the  scene
or no familiarity with it.

However there are other error sources.

"Being reasonable" is the chief offender. People dub-in a missing  piece  of
a sequence, for instance, instead of seeing that  it  IS  missing.  A  false
datum is imagined to exist because a sequence is  wrong  or  has  a  missing
step.

It is horrifying to behold how easily people buy dub-in. This is because  an
illogical sequence is uncomfortable. To relieve the discomfort they  distort
their own observation by not-ising the  outpoint  and  concluding  something
else.

I recall once seeing a Tammany Hall group (a New York political bunch  whose
symbol is a tiger) stop before the tiger's cage  in  a  zoo.  The  cage  was
empty and they were much disappointed. I was there and said  to  them,  "The
tiger is out to lunch." They told those on the  outer  edge  of  the  group,
"The tiger is out to lunch." They all cheered up, accepted  the  empty  cage
and went very happily on their way. Not one said "Lunch?" Or "Who are  you?"
Or laughed at the joke. Even though it was sunset! I pitied  the  government
of New York!

ACCURATE OBSERVATION

There are certain conditions necessary for accurate observation.

First is a means of PERCEPTION whether by remote  communication  by  various
comm lines or by direct looking, feeling, experiencing.

Second is an IDEAL of how the scene or area should be.

Third is FAMILIARITY with how such scenes are when things are going well  or
poorly.

Fourth is understanding PLUSPOINTS or rightnesses when present.

Fifth is knowing OUTPOINTS (all 5 types) when they appear.

Sixth is rapid ability to ANALYZE DATA.

Seventh is the ability to ANALYZE the SITUATION.

Eighth is the willingness to INSPECT more closely the area of outness.

Then one has to have the knowledge and imagination necessary to HANDLE.

One could call the above the CYCLE  OF  OBSERVATION.  If  one  calls  HANDLE
number 9 it would be the Cycle of Control.

If one is trained to conceive all variations  of  outpoints  (illogics)  and
studies up to conceive an ideal and gains  familiarity  with  the  scene  or
type of area, his ability to observe and handle things would  be  considered
almost supernatural.

L. RON HUBBARD

LRH:dz.nf   Founder





23



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 MAY 1970

Remimeo

Data Series 8

SANITY

An observer has to be sane to sanely observe.

This has been so far out in the society that  the  word  "sane"  itself  has
come to mean "conservative" or "cautious." Or something you can agree  with.
The 19th century psychologist decided  he  could  not  define  "normal"  and
there weren't any normal people. The 14th century psychiatrist is  the  20th
century "authority" on sanity. Yet an examination of such shows them  to  be
unable to demonstrate it personally or bring it about, much less define it.

Dictionaries  say  it  is  "health,  soundness  of  body  or  mind;   level-
headedness, reasonableness."

Yet sanity is vital to accurate observation.

FIXED IDEAS

The "id6e fixe" is the bug in sanity.

Whenever an observer himself has fixed ideas he tends to look  at  them  not
at the information.

Prejudiced people are suffering mainly from an "id6e fixe."

The strange part of it is that the "id6e fixe" they think  they  have  isn't
the one they do have.

An example of this is the social "scientist" with a favorite theory. I  have
seen tons of these birds pushing a theory as though it was the  last  theory
in the world and valuable as a ten-pound diamond. Such throw away  any  fact
that does not agree with theory. That's how  19th  century  psychology  went
off the rails. All fixed ideas and no facts.

The physical sciences in Hegel's time did the same thing. There was  no  8th
planet in the solar system, even when found in a telescope,  because  "seven
is a perfect number so there can only be seven planets."

History is  full  of  idiocies-and  idiots-with  fixed  ideas.  They  cannot
observe beyond the idea.

A  fixed  idea  is  something  accepted  without  personal   inspection   or
agreement. It is the perfect "authority knows best."  It  is  the  "reliable
source." A typical one was the intelligence report accepted by the whole  US
Navy right up to 7 Dec. 1941, the date of destruction of  the  US  fleet  by
Jap  planes.  The  pre-Pearl  Harbor  report,  from  unimpeachably  reliable
sources was "the Japanese cannot fly-they have no  sense  of  balance."  The
report overlooked that the Japs  were  the  world's  greatest  acrobats!  It
became a fixed idea that caused the neglect of all other reports.

A fixed idea is uninspected. It blocks the existence of any contrary
observation.

Most reactionaries (people resisting all progress or action)  are  suffering
from fixed ideas which they received from  "authorities,"  which  no  actual
experience alters.

That British red-coated infantry never took cover was another one.  It  took
a score or two of wars and fantastic loss of life to finally break it  down.
If any single fixed idea  destroyed  the  British  Empire,  this  one  is  a
candidate.

NORMAL SCENE

The reason a fixed idea can get so rooted  and  so  overlooked  is  that  it
appears normal or reasonable.

24



And somebody or a lot of somebodies want to believe it.

Thus a fixed idea can become  an  ideal.  It  is  probably  a  wrong  ideal.
Incapable Jap pilots would be a wish for a navy. It would be wonderful! Red-
coated infantry were supposed to be brave and unflinching.

In both cases the ideal is irrational.

A rational ideal has this law:

THE PURPOSE OF THE ACTIVITY MUST BE PART OF  THE  IDEAL  ONE  HAS  FOR  THAT
ACTIVITY.

A navy that has an ideal that the enemy can't fly is stupidly  avoiding  its
own purpose which is to fight.

British infantry had the purpose of winning wars, not just looking brave.

Thus one can analyze for a sane ideal by simply asking, "What's the  purpose
of the activity?" If the ideal is one that forwards  the  purpose,  it  will
pass for sane.

There are many factors which add up to an ideal scene. If  the  majority  of
these forward the purpose of the activity, it can  be  said  to  be  a  sane
ideal.

If an ideal which does not forward the activity in  any  way  is  the  ideal
being stressed then a fixed idea is present and had better be inspected.

This could be said to be a very harsh utilitarian view of things. But it  is
not. The artistic plays its role in any ideal. Morale has its  part  in  any
ideal.

An ideal studio for an artist could be very beautiful or very ugly  so  long
as it served him to produce his art. If it was very beautiful  yet  hindered
his artistic activities it would be a very crazy ideal scene.

A handsome factory that produced would be a high ideal. But its nearness  to
raw materials, transport and worker housing are the more  important  factors
in an ideal  of  a  factory.  And  its  location  in  a  country  where  the
government made an atmosphere in which production could occur  could  be  an
overriding part of an "ideal scene."

You have to look at what the area is for before you can say  whether  it  is
ideal or not.

And if its area is too limited to produce or too  expensive  for  it  to  be
solvent, then it isn't a sane scene.

URGESTOIMPROVE

Sometimes the urge to improve  an  activity  is  such  that  it  injures  or
destroys the activity.

If one is familiar with the type of  activity  he  must  also  realize  that
there is a law involved.

THE FACT THAT SOMETHING IS ACTUALLY OPERATING AND SOLVENT CAN  OUTWEIGH  THE
UNTESTED ADVANTAGES OF CHANGING IT.

In other words, an ideal scene might be  vastly  different  but  the  actual
scene IS operating.

So the factor of OBSESSIVE CHANGE enters. Change can destroy with ferocity.

Whole areas of London, jammed with small  but  customer-filled  shops,  have
been swept away to make room for  chromium  high-rent  modern  stores  which
stand empty of buyers.

Birmingham, where you could get anything made, had all its tiny craft  shops
swept away and replaced with  high-rent  huge  new  buildings  all  on  some
progress-crazy psychotic break.

Possibly the new stores and the huge new  shops  fitted  somebody's  "ideal"
but they did not match an actual operating environment.

It is this difference between an ideal scene and  a  practical  scene  which
brings down many old businesses and civilizations.

Therefore, to have an ideal, familiarity with what works is desirable.

      25



It is quite possible  without  any  familiarity,  to  imagine  a  successful
ideal. BUT IT MUST NOT HAVE ANY FIXED IDEAS IN IT.

It is the fixed idea that knocks a practical  operating  living  environment
in the head.

Do-gooders are always at this.  They  see  in  a  row  of  old  shacks,  not
economic independence and a lazy life but P-0-V-E-R-T-Y. So they get  a  new
housing project built, shoot taxes into the sky, put total control on a  lot
of people and cave in a society.

The do-gooder is pushing the  19th  century  fixed  idea  of  the  Comte  de
SaintSimon-to gear the whole economy down to  the  poorest  man  in  it.  In
other words to reward only the downstat. Everyone becomes a slave of  course
but it sure sounds good.

Newspapermen are probably the world's worst observers. They observe  through
the fixed ideas of the publisher or  the  prevailing  control  group.  Their
stories are given them before they leave the office. Yet their  observations
advise the public and the government!

The outpoints to be found in any contemporary newspaper brand  most  stories
as false before one proceeds more than a paragraph.

Yet this is what the world public is expected to run on.

Naturally it distorts the scene toward raving insanity. This conflicts  with
the native logic of people so the public thinks the world a lot madder  than
it really is.

In two cities all newspapers were suspended from  publication  for  quite  a
period. In both, crime dropped to zero! And resumed  again  when  newspapers
were again published.

The ideal scene of the citizen in his workaday  world  is  vastly  different
than the scene depicted in a newspaper.

The difference between the two can make one feel quite weird.

Thus there should not be too wide a difference between  the  ideal  and  the
represented scene. And not too wide a difference between the ideal  and  the
actual scene.

R (reality) consists of the is-ness of things. One can improve upon this is-
ness to bring about an ideal and lead  the  R  up  to  it.  This  is  normal
improvement and is accepted as sane.

One can also degrade the R by dropping the representation  (description)  of
the scene well below the actual. In the black propaganda work  traditionally
carried on by many governments this latter trick of corrupting the R is  the
means used to foment internal revolt and war.

Both actions of upgrade and downgrade are outpoints when reported as  facts.
"We made E1000 in reserves  this  week"  is  as  crazily  outpoint  as  "the
government went broke this week" when either one is not the truth.

When the report says, "we should plan a higher income," it is leading  to  a
higher idea! and is not an outpoint mainly because it  is  not  representing
any fact but a hopeful and ambitious management.

5 POINTS

When none of the outpoints are present, yet you  do  have  reports  and  the
scene is functioning and fulfilling its  purpose  one  would  have  what  he
could call a sane scene.

If all 5 points were absent yet the scene was not  functioning  well  enough
to live, it would be such a departure from the ideal that that itself  would
be outpoint in that importance was altered. What is out here  is  the  whole
situation! The situation analysis would be instantly visible.

But in practice this last  happens  only  in  theory,  not  in  practice.  A
collapsing situation is forecast by outpoints in its data.

Organisms and organizations tend to survive.

A decline of survival is attended also by outpoints.

26



SANITY IS SURVIVAL

Anything not only survives better when sane but it is true that  the  insane
doesn't survive.

Thus survival potential can be measured to  a  considerable  degree  by  the
absence of outpoints.

This does not mean that sane men can't be shot or sane  organizations  can't
be destroyed. It means only that there is far  less  chance  of  them  being
shot and destroyed.

So  long  as  men  and  organizations  are  connected  to  insane  men   and
organizations, wild things can and do happen unexpectedly.

But usually such things can be predicted by outpoints in others.

When sane men and organizations exist in a broad  scene  that  is  convulsed
with irrationality, it takes very keen observation and a good grip on  logic
and fast action to stay alive. This is known as  "environmental  challenge."
It can be overdone! Too much challenge can overwhelm.

The difference between such happening to a sane man or organization  and  to
the insane would be that the failure did not itself become a fixed idea.

INSANITY

The 5 primary illogics or outpoints as  we  call  them  are  of  course  the
anatomy of insanity.

In their many variations the insanity of any scene can be  sounded  and  the
nucleus of it located.

By locating and then closely inspecting, such a point of insanity  can  then
be handled.

When you know what insanity really is you can then confront  it  and  handle
it. One is not driven into a huge generality of "everything is insane."

By detecting and eliminating small insane areas, taking care not to  destroy
the sane things around it, one  can  gradually  lift  any  situation  up  to
sanity and survival.

By seeing what is insane in a scene and seeing why it is insane, one has  by
comparison also found what is sane.

By locating and understanding outpoints one finds the  pluspoints;  for  any
given situation.

And that is often quite a relief.

L. RON HUBBARD

Founder

LRH:nt.rd.nf

27



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 23 MAY 1970

Remimeo

Data Series 9

ERRORS

Many who begin to use "illogics," who have not drilled on them so  they  can
rattle them off, choose errors instead of outpoints.

An error may show something else. It is nothing in itself.

An error obscures or alters a datum.

Example: Asking someone  to  spot  the  outpoints  in  a  Russian  passenger
vacation cruise liner in a foreign port, the answers were, "The  hammer  and
sickle are upside down." "The courtesy flag is not flying  right  side  up."
These aren't outpoints. The hammer and sickle weren't  backwards  so  saying
it was an outpoint.  The  actual  outpoint  was  passenger  vacation  cruise
liner. There is no Russian idle class. It was too big to be  giving  cruises
to winning tractor drivers. Russian and vacation cruise liner just don't  go
together. Either the reports of Russian refusal to let  Russians  travel  is
false or it wasn't a vacation  cruise  liner  but  it  was.  Hence  it's  an
outpoint.  An  omitted  datum.  Two  contrary  data  means  one  is   false.
Investigation disclosed it was Russian  all  right  and  a  vacation  cruise
liner all right. BUT IT WAS  CHARTERED  TO  AN  ITALIAN  COMPANY  THAT  SOLD
CRUISES TO ITALIANS!

But this leads to a new outpoint. How come the workers paradise is  building
huge ships for capitalist pleasures?

If anyone like a Martian was tracing down what's out on  this  planet,  this
one outpoint would lead to others.

A situation  analysis  would  indicate  an  investigation  of  Russia  where
outpoints abound and the Martian would know a lot of  what's  wrong  on  the
planet,

In doing so he would find a lot of capitalistic outpoints which  would  lead
him to investigate the so-called West and he  would  have  the  basic  "cold
war" of communism versus capitalism.

This would lead him into new data the two have in common (economics)  and  a
data analysis of  economics  would  discover  the  screwiest  bunch  on  the
planet, the international banker playing off both sides.

He would have analyzed the planet.

Given that he knew or could translate languages, it might take him  a  week,
starting with a Russian luxury cruise liner, to run down the  planetary  bad
spot.

Now if he reversed his investigation and used  PLUSPOINTS  he  would  arrive
with a situation analysis of what group would be  strong  enough  to  handle
the down spot and by investigation possibly pinpoint  what  could  tip  over
the bad spot.

If he just used "errors" he would get no place.

The ideal he would have to be working from would be a planet at peace  where
individuals could go about their affairs and be  happy  without  threats  of
immediate

28



arrest or destruction. It would be a very simple ideal or it would be  based
only on how planetary populations and cultures survive and that  is  already
laid down in an earlier rule in this series.

Ask somebody to look at a table used for meals at the  end  of  a  meal  and
indicate any outpoints. Usually he'll point out a dirty plate or  crumbs  or
an ashtray not emptied. They are not outpoints. When  people  finish  eating
one expects dirty plates, crumbs and full ashtrays. If none of these  things
were present there might be several outpoints to note. The  end  of  a  meal
with table and plates all clean would be a reversed sequence. That would  be
an outpoint. Evidentially the dinner has been  omitted  and  that  would  be
quite  an  outpoint!  Obviously  no  meal  has  been  served  so  there's  a
falsehood. So here are three outpoints.

It is best to get what outpoints are  down  pat.  One  does  this  first  by
thinking up examples and then by observing some body of  data  and  then  by
looking at various scenes.

It will be found that outpoints are really few unless the activity is very
irrational.

Simple errors on the other hand can be found in legions in any scene.

Child's games often include, "What's wrong with this picture?" Usually  they
are just errors like a road sign upside down. But if you had a brown  rabbit
in winter holding down a man with its front paws and  a  caption,  "Japanese
parasols attack ," you'd have some real outpoints.

A lot of people would try to figure it out and supply new  outpoints  (being
reasonable). A learned professor could point out the symbolism.  Some  would
laugh it off. Some would be annoyed by it. And the reason anybody  would  do
anything about it is that it is sort of painful to confront  the  irrational
so instead of seeing its is-ness of illogics an effort is made  to  make  it
logical or to throw it away.

The reason misunderstood words or typographical errors were not regarded  as
a barrier to study was that people  converted  them  or  not-ised  them.  In
actual  fact  a  word  one  does  not  understand  made  a  missing   datum.
Reasonableness or nonconfront enter in and one drops the book.

Errors do not count in pluspoints either.

That a factory has a  few  errors  is  no  real  indicator.  A  factory  has
pluspoints to the degree it attains its  ideal  and  fulfills  its  purpose.
That some of its machinery needs repair might not even be  an  outpoint.  If
the general machinery of the place is good for enough years to  easily  work
off its replacement value there is a pluspoint.

People applying fixed or wrong ideals to scene are only pointing  up  errors
in their own ideals, not those of the scene!

A reformer who had a  strict  Dutch  mother  looks  at  a  primitive  Indian
settlement and  sees  children  playing  in  mud  and  adults  going  around
unclothed. He forces them to live cleanly and cuts off the  sun  by  putting
them in clothes-they lose their immunities required to live and die off.  He
missed the pluspoint that these Indians had survived hundreds  of  years  in
this area that would kill a white man in a year!

Thus errors are usually a comparison to  one's  personal  ideals.  Outpoints
compare to the ideal for that particular scene.

L. RON HUBBARD

LRH:nt.cc.nf     Founder





29



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 23 JUNE 1970

Remimeo

Data Series 10

THE MISSING SCENE

The biggest "omitted data" would be the whole scene.

A person who does not know how the scene should be can thereafter miss  most
of the outpoints in it.

An example is the continual rewrite of the International Code (signaling  by
flags between ships) by some "convention" composed of clerks who have  never
gone to sea. Not knowing the scene, the International Code  of  Signals  now
contains "How are your kidneys?" but nothing about lifeboats.

College education became rather discredited in Europe  until  students  were
required to work in areas of actual  practice  as  part  of  their  studies.
Educated far from reality students had "no scene." Thus  no  data  they  had
was related by them to an actual activity. There was even an  era  when  the
"practical man" or "practical engineer" was held in contempt. That was  when
the present culture started to go down.

On the other hand one of the most long-lived activities around is  the  wine
industry of Portugal. It has almost no theory trained. It  is  total  scene.
Every job in it is by apprenticeship for years.  It  is  very  constant  and
very successful.

A good blend would be theory and practical in balance. That gives  one  data
and activity. But it could be improved by stressing also the ideal scene.

BODIES OF DATA

Data classifies in similar connections or similar locations.

A body of data is associated by the subject to which it is applicable or  by
the geographical area to which it belongs.

A body of data can also be grouped as to time, like an historical period.

Illogic occurs when one or more data is misplaced into  the  wrong  body  of
data for it.

An example would be "Los Angeles smog was growing  worse  so  we  fined  New
York." That is pretty obviously a misplace.

"Cars were no longer in use. Bacterial warfare had taken its toll."

"I am sorry madam but you cannot travel first class on a third class
passport."

Humanoid response to such displacements is to be  reasonable.  A  new  false
datum is dreamed up and put into the body of data to explain why that  datum
is included. (Reasonableness is  often  inserted  as  explanation  of  other
outpoints also.)

In the smog one, it could be dreamed up that New York's exports  or  imports
were causing LA smog.

30



In the car one, it could be imagined that bacteriological warfare had  wiped
out all the people.

In the train one, it could be inserted that in that country, passports  were
used instead of tickets.

The brain strains to correctly classify data into its own zones and is  very
rejective or imaginative when it is not.

Intelligence tests accidentally use this one very often.

It remains that an outpoint can occur when a datum belonging to one zone  of
data, location or time, is inserted into another zone where it doesn't.

Algebra is sometimes hard to learn for some because NUMBERS are  invaded  by
LETTERS. 2x = 10. X is of course 5. But part of a new  student's  mind  says
letters are letters and make words.

Primitive rejective responses to foreigners is a mental reaction to  a  body
of people, in this case, being invaded by a person not of that tribe.

If the scene is wholly unknown, one doesn't know what data  belongs  to  it.
Thus a sense of confusion results. Recruits can be sent for ruddy  rods  for
rifles and apprentice painters can be  ordered  to  get  cans  of  sky  blue
lampblack.

A sense of humor is in part an ability to  spot  outpoints  that  should  be
rejected from a body of data. In fact a sense of  humor  is  based  on  both
rejection and absurd outpoints of all types.

Reasonable people  accept  displacements  with  an  amazing  tranquility  by
imagining connecting links or assuming they do not know the ideal  scene.  A
reasonable person would accept a pig in a parlor  by  imagining  that  there
was a good reason for it. And leave the pig in the parlor and  revise  their
own ideal scene!

Yet pigs belong to a body of data including  barns,  pens,  farms,  animals.
And parlors belong  to  a  body  of  data  including  teacups,  knickknacks,
conversation and humans.

Possibly Professor Wundt who "discovered" in 1879 that humans  were  animals
had seen too many pigs in parlors! And based the whole of "psychology" on  a
confusion of bodies of data!

Murder in a hospital, as done by psychiatry, would be a confusion of  bodies
of actions. Actions belong to their own bodies of data.

One drives a car, rides a horse. One doesn't ride a car but one can drive  a
horse. But the action, the motions involved with, driving a horse  are  very
different than those used in driving a car. This  is  a  language  breakdown
called a "homonym." One word means two  different  things.  Japanese  is  an
easy language except for its use of the  same  word  for  several  different
things. Two Japanese  talking  commonly  have  to  draw  Chinese  characters
(Japanese is written with Chinese characters) to each other to unravel  what
they mean. They are in a perpetual struggle to pry apart bodies of data.

" 1234 Red 789 P 987 Green 432 Apple" as a statement would probably  tie  up
CIA codebreakers for weeks as they would  know  it  was  a  code.  The  same
statement would tie up a football coach as he  would  know  it  was  a  team
play. A mathematician would know it fitted into  some  other  activity  than
his. Hardly anyone would classify it as  a  totally  meaningless  series  of
symbols.

So there is a reverse compulsion-to try to fit any  datum  found  into  some
body of data.

The mind operates toward logic, particularly in classes of things.

31



The  sensible  handling  of  data  of  course  includes  spotting  a  datum,
terminal, item, action, grouped in with a body of data wrong for it. And  in
spotting that a datum does not have to belong anywhere at all.

Included in mental abilities is  putting  similar  data  into  one  type  of
action, items, or data. Car parts, traffic rules, communications,  are  each
a body of data in which one can fit similar data.

When a person has some idea of the scene involved,  he  should  be  able  to
separate the data in it into similar groups.

An org board is an example of this. Sections are broad classes of action  or
items into which one can fit the related data.  Departments  are  a  broader
body of related data, actions, items. Divisions are even broader  but  still
cover related classes of data. The whole org is a very broad class of  data,
determined in part by the type of product being made.

If a person has trouble relating data to its proper  body  of  data  (if  he
were unaware or "reasonable") he would have an awful lot of trouble  finding
his way around an org or routing despatches or  getting  things  or  wearing
his own hat.

Orders are a broad class of data. Orders from proper sources is  a  narrower
body of data. If  a  person  cannot  tell  the  difference  he  will  follow
anyone's orders. And that will snarl him up most thoroughly.

I once knew a carpenter so obliging and so unable to  classify  orders  that
he built knickknacks, cabinets, shelves, for any staff member who asked  and
wasted all the time and materials and orders from  his  boss  that  were  to
have built a house! The house materials and money and the  carpenter's  time
and pay were all expended without anything of value  to  show  for  it!  Not
only was he unable to relate orders to their own classes but  also  couldn't
relate materials and plans to a house!

In most miscarriages of projects it will be found that someone on  the  line
cannot relate data or actions to their own classes.  Along  with  this  goes
other illogics.

So the ability to spot illogics in a known  scene  can  directly  relate  to
efficiency and even to success and survival.

A switch intended for a house put into an airplane  electrical  system  cuts
out at 30,000 feet due to the wrong metal to withstand cold and  there  goes
the airplane. A part from one class of parts is included wrongly in  another
class of parts.

So there is an INCORRECTLY INCLUDED  DATUM  which  is  a  companion  to  the
OMITTED DATUM as an outpoint.

This most commonly occurs when, in the mind, the  scene  itself  is  missing
and the first thing needed to classify data (scene) is not there.

An example is camera storage  by  someone  who  has  no  idea  of  types  of
cameras. Instead of classifying all the  needful  bits  of  a  certain  view
camera in one box, one  inevitably  gets  the  lens  hoods  of  all  cameras
jumbled into one box marked "lens  hoods."  To  assemble  or  use  the  view
camera one spends hours trying to find its parts  in  boxes  neatly  labeled
"camera backs," "lenses," "tripods," etc.

Here, when the scene of what a set up view camera looks  like  and  operates
like, is missing, one gets a closer  identification  of  data  than  exists.
Lens hoods are lens hoods. Tripods are  tripods.  Thus  a  wrong  system  of
classification occurs out of scene ignorance.

A traveler unable to distinguish one uniform from  another  "solves"  it  by
classifying all uniforms as "porters." Hands his bag to an  arrogant  police
captain and that's how he spent his vacation, in jail.

32



Lack of the scene brings about too tight  an  identification  of  one  thing
with another. This can also exclude a vital bit making a disassociation.

A newly called-up army lieutenant passes right on by an  enemy  spy  dressed
as one of his own soldiers. An experienced sergeant right behind  him  claps
the spy in jail accurately because "he wasn't wearing 'is 'at the way we  do
in the Fusileers!"

Times change data classification. In  1920  anyone  with  a  camera  near  a
seaport was a spy. In 1960 anyone  not  carrying  a  camera  couldn't  be  a
tourist so was watched!

So the scene for one cultural period is not the scene for another.

Thus a class of data for  a  given  time  belongs  broadly  or  narrowly  to
itself. Including a datum in it or from another time or  excluding  a  datum
from it, or forcing a datum to have a class can in any  combination  produce
an illogical situation.

Some knowledge of the scene itself is  vital  to  an  accurate  and  logical
assembly or review of data.

The scene therefore, knowledge of, is the basic "omitted data."

The remedy of course is to get more data on what  the  scene  itself  really
should consist of. When the scene is missing  one  has  to  study  what  the
scene is supposed to consist of, just not more random data about it.

L. RON HUBBARD

Founder

LRH:sb.nf

33



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 30 JUNE 1970

Remimeo

Data Series 11

THE SITUATION

Probably the hardest meaning to get across is the definition of
"SITUATION."

One can say variously, "Isolate the actual situation" or "Work out what  the
situation is" and get the most remarkable results.

To some, a despatch is a situation. A small error to others is a situation.

Yet, if one wishes to know and use data and  logic  one  must  know  exactly
what is meant in this logic series by SITUATION.

English has several meanings for the one word.  In  the  dictionary  it's  a
"place," a 64state or condition of affairs,"  "a  momentous  combination  of
circumstances," "a clash of passions or  personalities,"  or  "a  job."  One
gets the feeling that people are fumbling around for  a  meaning  they  know
must be there.

For our purposes we had better give an exact definition of what is meant  by
SITUATION. If we are going to do a situation analysis by doing  an  analysis
of data, then WHAT is a situation?

We can therefore specifically define for our  purposes  in  logic  the  word
SITUATION.

A SITUATION IS A MAJOR DEPARTURE FROM THE IDEAL SCENE.

This means a wide and  significant  or  dangerous  or  potentially  damaging
CIRCUMSTANCE or STATE OF AFFAIRS which means that the IDEAL SCENE  has  been
departed from and doesn't fully exist in that area.

THEIDEALSCENE

One has to  work  out  or  know  what  the  ideal  scene  would  be  for  an
organization or department or social strata or an activity to  know  that  a
wide big flaw existed in it.

To be somewhat overly illustrative about it, let us take a town that has  no
one living in it.

One would have to figure out what was the ideal scene of a town.  Any  town.
It would be a place where people lived, worked,  ate,  slept,  survived.  It
could be pretty or historical or well designed  or  quaint.  Each  of  these
would possibly add purpose or color to the town.

BUT this town in question has NO people living in it.

That is a departure from the ideal scene of towns.

Therefore THE SITUATION would be NO PEOPLE LIVE IN THIS "TOWN."

Data analysis would lead us to this by noting outpoints.

34



6 P.M. - No smoke from house chimneys. (omitted item)

9 P.M. - No lights. (omitted item)

Dawn - No dogs. (omitted terminals)

1910 election poster. (wrong time)

That would be enough.  We  would  then  realize  that  a  SITUATION  existed
because data analysis is also done against the ideal scene.

We would know enough about it to look more closely.

No people! That's the SITUATION.

HANDLING

Thus if one were responsible for the area one would now know what to
handle.

How he handled it depends upon (a) the need, (b) availability of  resources.
and (c) capability.

Obviously if it's supposed to have people in it and  if  one  needs  a  town
there one would have to get a bright idea or  a  dozen  and  eventually  get
people to live there. How fast it could be done depends on the  availability
of resources-those there or what one has  (even  as  little  resource  as  a
voice, paper, pen, comm lines).

One's own capability to get ideas or work or the capabilities of people  are
a major factor in handling.

But so far as the SITUATION is concerned, it exists whether it is handled
or not.

HOW TO FIND A SITUATION

When you are called upon to  find  out  if  there  IS  a  situation  (as  an
inspector or official or soldier or cat or king, whatever)  you  can  follow
these steps and arrive with what the situation is every time-

1.    Observe.

2.    Notice an oddity of any kind or none.

3.    Establish what the ideal scene would be for what is observed.

4.    Count the outpoints now visible.

5.    Following up the outpoints observe more closely.

6.    Establish even more simply what the ideal scene would be.

7.    The situation will be THE MOST MAJOR DEPARTURE FROM THE IDEAL SCENE.

HANDLING

Just as you proceed to the MOST MAJOR SITUATION-go big,  when  it  comes  to
handling it usually occurs that reverse is true-go small!

It is seldom you can handle it all at one bang. (Of course that happens
too.)

But just because the SITUATION is big is no real reason the solution must
be.

Solutions work on gradient scales. Little by more by more.

35



When you really see a SITUATION it is often so big and so appalling one  can
feel incapable.

The need to handle comes first.

The resources available come next.

The capability comes third.

Estimate these and by getting a very bright  workable  (often  very  simple)
idea, one can make a start.

An activity can get so wide of the ideal scene the people in it are just  in
a confusion. They do all sorts of odd  irrelevant  things,  often  hurt  the
activity further.

Follow the steps given 1-7 above and you will have  grasped  the  SITUATION.
You will then be able to do (a), (b), (c).

That begins to make things come right.

In that way most situations can be both defined and handled.

INTERFERENCE

Lots of people, often with lots of authority,  get  mired  into  situations.
They do not know they are in anything that could  be  defined,  isolated  or
stated. They bat madly at unimportant dust motes  or  each  other  and  just
mire in more deeply.

Whole civilizations uniformly go the route just that way.

So do orgs, important activities and individuals.

One can handle exactly as above, if one practices up so  he  can  really  do
the drill on life.

The only danger is that the situation can be so  far  from  any  ideal  that
others with fixed ideas and madness can defy the most accurate and  sensible
solutions.

But that's part of the situation, isn't it?

Data analysis is done to make a  more  direct  observation  of  exactly  the
right area possible. One can then establish the exact SITUATION.

It's a piece of freedom to be able to do this.

L. RON HUBBARD

Founder

LRH:sb.cden.gm Copyright 10 1970

36



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 5 JULY 1970

Remimeo

Data Series 12

HOW TO FIND AND ESTABLISH AN IDEAL SCENE

In order to detect, handle or remedy  situations  one  has  to  be  able  to
understand and work out several things.

These are defining the ideal scene itself, detect  without  error  or  guess
any departure on it, find out WHY a departure occurred and work out a  means
of reverting back to the ideal scene.

In order to resolve a situation fully one has to get the real reason  WHY  a
departure from the ideal scene occurred.

"What was changed?" or "What changed?" is the same question.

That "change" is the root  of  departures  comes  from  a  series  of  plant
experiments I conducted. (The type  of  experimentation  was  undertaken  to
study cellular life behavior and reaction to see if it was a different  type
of life-it isn't. The experiments themselves were later repeated in  various
universities and were the subject of much press for them over the world.)

In setting up conditions  of  growth  I  observed  that  plants  on  various
occasions greatly declined suddenly. In each case I was able  to  trace  the
last major CHANGE  that  had  occurred  and  correct  it.  Changes  made  in
temperature, water  volume,  humidity,  ventilation,  greatly  affected  the
plants in terms of wilt, decreased growth rate, increase in parasites, etc.

When THE change was isolated and the condition reverted  to  that  occurring
during the previous healthy period, a recovery would occur.

At first glance this may seem obvious. Yet in actual practice it was not
easy to do.

Gardeners' records would omit vital data or alter  importance  or  drop  out
time, etc. A gardener might seek  to  cover  up  for  himself  or  a  fellow
worker. He tended to make  himself  right  and  would  enter  falsehoods  or
reassurance that was a falsehood into the analysis.

A new gardener would seem to affect the plants greatly and one  could  build
a  personality  influence  theory  on  this-until  one  found  that,   being
untrained in the procedure used, he would enter  even  more  outpoints  than
usual.

At such a juncture one would of course train the gardener. BUT  that  didn't
locate WHAT had been changed. And one had to locate that to get  the  plants
to recover. The conditions in use were  extreme  forcing  conditions  anyway
and lapse of duty was very apparent.  Sixteen-foot  hothouse  American  corn
from seeds usually furnishing 5-foot stocks, 43 tomatoes to the truss  where
5 is more usual were the demands being met.  So  any  change  showed  up  at
once.

The fact of change itself was a vital point as well. One discovery was  that
life does best in a near  optimum  constancy-meaning  that  change  just  as
change is usually harmful to plant life.

The fact of isolating change in the environment as the  sole  harmful  cause
was one discovery.

37



That one had to isolate THE change in order  to  obtain  full  recovery  was
another discovery.

Change itself was not bad but in this experimental  series  conditions  were
set as optimum and  the  beneficial  changes  had  already  been  made  with
remarkable results. Thus one was observing change from the optimum.

This would be the same thing as "departures from the ideal scene."

The action was always

1.    Observe the decline.

2.    Locate the exact change which had been made.

3.    Revert THE change.

4.    A return to the near ideal scene would occur if one were maintaining
the ideal scene meanwhile.

THEIDEALSCENE

There are two scenes:

A.    The ideal scene

B.    The existing scene,

These of course can be wide apart.

How does one know the ideal scene?

At first thought it would be very difficult for a person not  an  expert  to
know the idealscene.

For years certain "authoritarian" people in  the  field  of  mental  healing
fought with lies and great guile to obscure the fact that  the  ideal  scene
in mental healing can be known to anyone. Such imprisoned and  tortured  and
murdered human beings with the excuse that they  themselves  were  the  only
experts. "It takes 12 years  to  make  a  psychiatrist."  "Expert  skill  is
required to kill a patient."

The existing scene these "experts" made was  a  slaughterhouse  for  asylums
and the insanity and crime statistics soaring.

They fought like maniacs to obscure the ideal scene and  hired  and  coerced
an army of agents, "reporters," "officials," and such to  smash  anyone  who
sought to present the ideal scene or ways to attain  it.  Indeed  it  was  a
world gone mad with even the police  and  governments  hoodwinked  by  these
"experts."

Yet any citizen  knew  the  ideal  scene  had  he  not  been  so  propaganda
frightened by the existing scene.

By constantly pounding in the "naturalness" of an existing scene  consisting
of madness, crime, torture, seizure and murder, these mad "experts" PUT  THE
IDEAL SCENE SO FAR FROM REACH THAT IT APPEARED INCREDIBLE. It was so  bad  a
situation that anyone proposing the ideal scene was actively resisted!

Yet the ideal scene is so easy to state that any citizen could  have  stated
it at any time. And often believed it was occurring!

The ideal  scene  of  an  asylum  would  be  people  recovering  in  a  calm
atmosphere,  restored  to  any  previous  ability,  emerging  competent  and
confident.

The ideal scene in the  society  would  be,  probably,  a  safe  environment
wherein one could happily make his way through life.

38



Of course, the technology of the mind was the missing data. But the  experts
in charge of that sector of life paid out hard cash to hoods to prevent  any
such technology developing-a matter fully documented.

The gap between the ideal scene and the existing scene can be very wide  and
in any endeavor elements exist that tend to prevent a total closure  between
the two.

However, approached on a gradient with skill and determination, it can be
done.

DEPARTURE

The mental awareness that something is wrong with a scene is  the  point  at
which one can begin reverting to the ideal scene.

Without this awareness on the part of a GROUP  then  an  individual  can  be
much impeded in handling a situation.

The mental processes of the person  seeking  to  improve  things  toward  an
ideal scene or change them back to an ideal scene  must  include  those  who
are also parts of the scene.

Seeing something wrong without seeking to correct it degenerates  into  mere
faultfinding and natter. This is about  as  far  as  many  people  go.  That
something, real or imagined, is wrong with  the  scene  is  a  not  uncommon
state  of  mind.  Not  knowing  what's  intended  or  being  done,  or   the
limitations of resource or the magnitude and complexity of  opposition,  the
armchair  critic  can  be  dreadfully  unreal.  He  therefore  tends  to  be
suppressed, particularly by reactionaries (who try to keep it all as  it  is
regardless).

Unfortunately, the continual battle of life then is between the  critic  and
the reactionary. As this often blows up in pointless destruction, it can  be
seen there could be something wrong with both of them.

Particularly the inactive carping critic is at fault on three counts.

A.    He isn't doing anything about it.

B.    He is not conceiving or broadcasting a real ideal scene.

C.    He is not providing any gradient approach to actually attain an ideal
scene.

The reactionary of course simply resists any change  regardless  of  who  is
suffering providing the reactionary can retain what position and  possession
he may have.

A revolutionary of course usually

I . Is doing something about it even if violent.

2.    Is conceiving and broadcasting his version of the ideal scene, and

3.    Is planning and acting upon some means of bringing about his own
idealscene.

History and "progress" seem to be the revolutionary making  his  version  of
progress over the dead bodies of reactionaries.

And although  it  may  be  history  and  "progress"  the  cycle  is  usually
intensely destructive and ends up without attaining an ideal scene and  also
destroying any scene existing.

The ancient world is  filled  with  ruins  over  which  one  can  wander  in
contemplative and philosophic reverie. These attempts to make  and  maintain
an ideal scene certainly left enough bruised masonry around.

So it is really not enough to natter and it's  rather  too  much  to  thrust
violent change down on the heads of one and all including the objectors.

39



Violent revolution comes about when the actual  ideal  scene  has  not  been
properly stated and when it excludes significant parts of the group.

It's no good having a revolution if  the  end  product  will  be  a  FURTHER
departure from the ideal scene.

The pastoral nonsense of Jean Jacques Rousseau was about  as  wide  from  an
ideal scene as you could get, and it and other efforts, also  wide,  brought
on the French Revolution.

The Russian 1917 revolution had already  been  preceded  by  the  democratic
Kerensky revolt. But it failed because  Russia  being  Russia  was  about  a
century and a half late.

Also the French Revolution was late.

And in both cases those who should have led didn't. Lesser  ranks  overthrew
command.

These and countless other human  upheavals  mark  the  fluttering  pages  of
history and history will be written in  similar  vein  again  and  again  to
eternity unless some sense and logic gets into the scene.

Revolt is only an expression of too long unmended departures from the  ideal
scene of society.

Usually the stitches taken to mend the growing social  order  are  too  weak
and too hastily improvised to prevent the cultural fabric  from  being  torn
to rags.

Street battles and angry infantry are the direct opposite of the ideal
political scene.

What was needed in such a case was an awareness of departure from the  ideal
scene, the discovery of WHY a departure occurred and a  gradient,  real  and
determined program to return the scene closer to the ideal.

The elements of improved mechanical arts and progress in the humanities  may
be utilized to effect the recovery. In any event (which  is  missed  by  the
reactionary and his "good old days") cultures do change  and  those  changes
are a part of any new ideal scene. So one does not achieve  a  reversion  to
the ideal by turning back the clock. One must be bright  enough  to  include
improvements in a new ideal scene.

IDEAL SCENE AND PURPOSE

Let us look this over, this concept of the ideal scene, and see that  it  is
not a very complex thing.

One doesn't have to be much of an expert to see what an ideal scene would
be.

The complex parts of the whole may not make up the whole, but they  are  not
really vital to conceiving an ideal scene for any activity, as  small  as  a
family or as big as a planet.

The entire concept of an ideal scene for any  activity  is  really  a  clean
statement of its PURPOSE.

All one has to ask is "What's the purpose of this?" and one will be able  to
work out what the ideal scene of "this" is.

To give a pedestrian example let  us  take  a  shoe  shop.  Its  purpose  is
obviously to sell or provide people with shoes. The ideal  scene  is  almost
as simple as "This activity sells or provides people with shoes."

Now no matter how complex may be the business or economics  of  shoe  sales,
the fact remains that that is almost the ideal scene.

Only one factor is now missing: TIME.

40



The complete ideal scene of  the  shoe  shop  is  then,  "This  activity  is
intended to provide people with shoes for (time)." It can be always  or  for
its owner's lifetime or for the duration of the owner's stay in the town  or
the duration of the state fair.

Now we can see departures from the ideal scene of this shoe store.

One has to work out fairly correctly what the purpose of an activity is  and
how long it is to endure before one  can  make  a  statement  of  the  ideal
scene.

From this one can work out the complexities which compose  the  activity  in
order to establish it  in  the  first  place  including  the  speed  of  the
gradient (how much shoe store how fast) and also how to  spot  the  fact  of
departure from the ideal scene.

This process would also work on any portion of the shoe store  if  the  main
ideal is not also violated. The  children's  department,  the  cashier,  the
stock clerk also have their sub-ideal  scenes.  And  departures  from  their
ideal scenes can be noted.

It doesn't matter  what  the  activity  is,  large  or  small,  romantic  or
humdrum, its ideal scene and its sub-ideal scenes  are  arrived  at  in  the
same way.

METHODS OF AWARENESS

Statistics are the only sound measure of any production or any job or any
activity.

The moment that one goes into  any  dependence  on  opinion,  he  goes  into
quicksand and will see too late the fatal flaw in restoring anything.

If the fact that anything can be given production statistics seems  too  far
out, it is visible that even a guard, who would at first glance seem  to  be
producing nothing but giving only security, is actually  producing  minutes,
hours, weeks, years, of continued production TIME.

Probably the most thoughtful exercise is not conceiving the ideal scene  but
working out what the production statistic of it is. For here,  the  activity
or subactivity must be very correctly  staticized  to  exactly  measure  the
ideal scene of any activity or the  statistic  will  itself  bring  about  a
departure!

Just as the purpose from which the ideal scene is taken must be correct,  so
must the statistic be all the more thoughtfully correct.

As an example, if the ideal scene of the  shoe  store  is  given  the  total
statistic of its income then three things can happen:

1.    It may cease to provide people with shoes that persuade them to come
back for more.

2.    It may sell shoes without enough profit to cover overhead and cease
to exist.

3.    It may conduct itself with more interest in the cashier than the
customer and lose its trade.

Probably its statistic is "percentage of citizens  in  the  area  profitably
shod by this store."

Working out how long it takes to wear out an average pair of shoes, any  ex-
customer would be retired from the  percentage  after  that  time  span  had
elapsed from buying his last pair.

Given a fairly  accurate  and  realistically  updated  census  figure,  that
statistic would probably tell the tale of the ideal  scene,  which  has  its
element of continuance.

The sole fixation on making money can depart from the scene. Abandonment  of
making any money would certainly cause a departure of the shoe store.

A commando battalion would have just  as  serious  an  examination  for  its
ideal scene and statistic as a shoe store! And it would give  a  very,  very
effective activity if

41



Mmlr~

fully worked out. You'd really have to work out, probably  better  than  the
generals who think they have, the  real  purpose  of  a  commando  battalion
(which is probably "to disperse enemy  preparations  by  unexpected  actions
and overinvolve enemy manpower in expensive guarding"). The statistic  could
be something like "our individual  soldiers  freed  from  opponents"  and/or
"casualties not occurring by reason of interrupted enemy preparations."

In effect the commando battalion would be "producing." The results would  be
an effective increase in men under arms for their own side.

WHY

Knowing, then, the ideal scene  and  its  statistic,  one,  by  keeping  the
statistic, can notice without "reasonableness" or somebody's report or  some
fifth column propaganda, an immediate departure from the ideal scene.

Remember, violent change only becomes seemingly  vital  when  the  departure
from the ideal scene is noticed too late .

Opinion, reports, subject to outpoints as they  almost  always  are,  seldom
tell one more than somebody else's prejudices or his  efforts  to  cover  or
failures to observe.

Now that a departure is seen (because the statistic drops) one  can  quickly
go about noticing when and so get at WHY.

When he has the WHY of the departure he can proceed to handle it.

The statistic, guarded against false  reports,  and  verified,  is  a  clean
statement not as subject to outpoints as other types of statements.

Whole activities have been smashed by not having a statistic of success  but
taking  an  opinion  of  trouble,  and  reversely,  by  having  a  statistic
indicating disaster but a broadcast opinion  of  "great  success."  Probably
the latter is the more frequent.

It is not possible to locate WHY the departure soon enough to remedy  unless
one takes the most reliable datum available-which is the datum  most  easily
kept clean of outpoints-which is a statistic.

You don't really  even  know  there  is  a  Why  unless  there  has  been  a
departure. And the departure may be very hard to spot without a statistic.

I have seen a group producing like mad, doing totally great, but  which  had
no statistic, become the subject of wild outpoints and even contempt  within
itself.

If an activity lacks an ideal scene and a correct statistic for it,  it  has
no stable datum with which to rebuff opinion and outpoints. To  that  extent
the group goes a bit mad.

Group sanity depends. then. upon an ideal scene.  correct  sub-ideal  scenes
and statistics to match.

One of the calmest safest groups around had a  bad  reputation  with  fellow
groups because it did not have or make known its ideal  scene  and  did  not
have or release its statistics.

And it  had  a  hard  time  of  it  for  quite  a  while,  meantime  working
exhaustedly but dedicatedly.

Planet,  nation,  social  groups,  businesses,  all  their  parts  and   the
individual have their ideal scene and their statistic, their departures  and
successes and failures. And none fall outside these data.

L. RON HUBBARD

Founder

LRH:sb.cden.nf   ALL. RIGHTS RESERVED

42



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 6 JULY 1970

Remimeo

Data Series 13

IRRATIONALITY

Any and all irrationality is connected to departures from an ideal scene.

Therefore outpoints indicate departures.

It must follow then that rationality is connected to an ideal scene.

These three assumptions should be studied, observed and fully grasped.

They are very adventurous assumptions at first glance for if they  are  true
then one has not only  the  definition  of  sanity  in  an  organization  or
individual  but  also  of  neurosis  and  psychosis.  One  also  sees   that
organizations or social groups or companies or any third dynamic  (the  urge
to survival as a group) activity can be neurotic or psychotic.

It therefore would follow that the technology of the ideal  scene,  existing
scene, departures, outpoints and statistics would contain  or  indicate  the
means  of  establishing  sane  groups  or  individuals  or  measuring  their
relative sanity or re-establishing relative sanity in them.

THE PLAGUE OF MAN

Man has been harassed by  irrationality  in  individual  and  group  conduct
since there has been Man.

The existing scene of Man's activities is  so  immersed  in  departures  and
outpoints that at first survey there would seem to be no  possible  handling
of the situation.

Most people have accepted the existing conditions as "inevitable"  and  toss
them off with a "that's life."

This is of course an overwhelmed attitude.

And it is true that the departure  from  any  ideal  is  so  distant  as  to
obscure any feeling of reality about possibly achieving an ideal scene  even
in a limited area.

Philosophies exist to "prove" that chaos is needful  to  furnish  challenge.
That is like saying "Be glad you're crazy" (as  19th  century  psychologists
did say). Or "Suffering refines one," as the playwrights of the  early  20th
century so fondly used in their plots.

One whole religious order preached the necessity to accept Man as he is.

Thus Man is plagued with defeatism, has lacked technology, and  civilization
after civilization has succumbed, either in a flash of flame and war  or  in
the slow erosion of grinding distress.

Most men, it has been said, live lives of quiet desperation.

One doesn't have to live through several wars to  learn  that  Man  and  his
leaders are something less than sane.

Every sword-waving conqueror has exploited Man's seeming inability to  avoid
brotherly slaughter and no conqueror or army  seems  to  have  noticed  that
wars only rarely shift boundaries no matter how many are killed. Europe  for
centuries has

43



excelled in the development of marble  orchards  and  failed  remarkably  to
establish any lasting political scene at all.

In other lands government leaders, who should have at least a  partial  duty
of preserving their citizenry have sat raptly listening  to  the  advice  of
madmen for some centuries now. US leaders lately have  taken  to  acting  on
the mental health guidance of many civilian committees, each  one  of  which
contains at least one  member  of  an  organization  directly  connected  to
Russia! The country most interested  in  fomenting  US  civil  commotion!  A
former head of CIA once cracked for a joke, "What if there  were  a  Russian
KGB  agent  inside  CIAT'  The  shudder  of  horror  that  went  through  US
politicians was interesting to see.  Yet  every  new  employee  of  CIA  was
"vetted" before employment by members  of  two  organizations  connected  to
Russia!  The  "American"  Psychological  Association  and   the   "American"
Psychiatric Association are directed  by  the  World  Federation  of  Mental
Health founded by Brock Chisholm, the companion of Alger Hiss and  Whittaker
Chambers, the famous US communist traitors. And the US government  pays  the
WFMH to hold congresses which are attended by  Russian  KGB  delegates.  And
all intelligence given the President on Vietnam, where the US was  "fighting
communism" was passed through the hands of a  man  whose  parents  are  both
Russian born communists. And the US Defense Department intelligence  on  the
same war was led and "coordinated" by another communist-connected employee.

With  that  many  outpoints  showing  up  in  their   social   welfare   and
intelligence scene, the US government seems something less  than  bright  in
wondering, "What riots?" "Why drugs?" "Why defeats?"

The statistics of the US welfare and social scene under  the  domination  of
the World Federation of Mental Health are soaring insanity, crime  and  riot
graphs. It is so bad that Russia will never have to  fight  an  atomic  war.
The US  economic,  political  and  social  scene  will  deteriorate  and  is
deteriorating so rapidly that the US will have lost any  will  to  fight  or
any economic or social power to resist Russia.

(In case you wonder as to the factualness of data given above, it is all
documented.)

I have given this existing scene so that you  can  see  the  outpoints.  The
deteriorated state of public safety in the US is well known.  The  fantastic
sums it spends are well known.

I have given visible outpoints.

One glance at  psychiatric  and  psychological  statistics  (which  are  all
negative) would tell any sane person that they must be doing something  else
as they were given all the money, political power and authority ever  needed
to handle  the  scene.  But  it  got  worse!  So,  checking  the  scene  for
outpoints, one finds them directly connected to the No. I  US  enemy.  Their
data is marvellous for outpoints. Paid to serve  the  US,  their  literature
discusses mainly abolishing boundaries and the Constitution.

The US official, so drowned in the chatter and confusion of double-talk  and
false  intelligence  and  situation  reports,  apparently  cannot  see   any
solution.  And  heaps  money  on  his  traitors  and  finances  their   avid
destruction of the country.

Yet, outpoints are so many and so visible that even the  citizen  sees  them
while the official remains apparently numb and inactive.

Very well, Man can and does get drowned in his own  irrationality.  And  his
civilizations rise and fall.

Man's primary plague is irrationality. He is not in the  grip  of  a  "death
wish," nor is he having a love affair with destruction. He has  just  lacked
any road out or the technology to put him on it.

RESOLVING THE SCENE

All the US would have  to  do  is  count  up  the  outpoints,  look  at  the
statistics, drop their passionate affair with Russian  psychiatry,  conceive
an ideal scene of a  productive  America,  re-channel  welfare  monies  into
decent public works to give people jobs and

44



improve productivity per capita, knock off foreign funds and wars, give  the
money to increasing the value of American resources  and  even  now  the  US
would become all right. National production would catch up with  destructive
inflation, money would return to value and an ideal national scene would  be
approached.  Even  the  militaryindustrial  clique  would  be  happy  making
bulldozers instead of tanks and youth would have a future in  sight  instead
of a foreign-made grave. The odd part of it is, even the  Senate  and  House
would vote for such a program as their  own  statistic  today  is  how  much
federal money can they bring home to their own states.

The only ones that would resist are the people who are the ones causing  the
above outpoints and who knowingly or unknowingly serve  other  masters  than
the US. And that's a simple security problem after all.

I have put the example on a large canvas just to  show  that  the  steps  of
handling departures are the same for all situations large or great.

When done this  way,  by  the  steps  mentioned  in  the  Data  Series,  big
situations can be analyzed as well as little ones.

Available resources and all that play a part in getting  the  solution  into
effect. But the cost in time and action of the original effort to  introduce
the cycle of revertment to an ideal scene is not anywhere near as costly  as
letting the departure continue.

The EASIER thing to do in all cases is to work out the ideal  scene,  survey
the existing scene for outpoints, work out  statistics  that  should  exist,
find out WHY the departure, program a gradient solution back to  the  ideal,
settle the practical aspects of it and go about it.

LOSING ONE'S WAY

One's direction is lost to the degree one fails to work out the ideal
scene.

It is so easy to toss off an "ideal scene" that is not the ideal scene  that
one can begin with a false premise.

As he tries to work with an incorrect "ideal scene" for an activity  he  may
fail and grow discouraged without recognizing that  he  is  already  working
with an omitted datum-the real ideal scene for that activity.

This is a major reason one can lose one's way in handling a situation.

Also in trying to find a WHY of departure  one  may  refuse  to  admit  that
something he himself did was the reason for the departure-or why  the  ideal
scene never took place. It requires quite a bit of  character  to  recognize
one's own errors; it is much easier to find them in  a  neighbor.  Thus  one
may choose the wrong WHY, for this and other reasons.

Failures to examine the scene, reasonableness which causes blindness to  the
obvious, errors of penetration and defensive reasons not  to  admit  it  all
impede a proper analysis.

The existing scene may be missing in one's view because one  doesn't  really
look at it or because one has no correct ideal scene for it.

Many would rather blame or justify  than  be  honest.  Others  would  rather
criticize than work.

But this all adds up to outpoints in the examination itself.

If one keeps at it one will however arrive at the right answers with  regard
to any scene.

BUILDING THE IDEAL SCENE

To suppose one can instantly hit  upon  an  ideal  scene  for  any  activity
without further test is to be very fond of one's own prejudices.

45



There is however a test of whether you have the ideal scene or not.

Can you staticize it?

Strangely, but inevitably, since we live  in  the  physical  universe  where
there is both time and association of beings with beings  and  the  physical
universe and the physical universe  with  itself,  there  is  a  production-
consumption factor in all living.

There seems to be a ratio between producing and consuming, and  establishing
it would probably resolve  that  strange  subject,  economics,  as  well  as
social welfare and other things.

It seems to be fatal to consume without producing. Many social  observations
teach us this.

Evidently one cannot,  at  the  physical  universe  level,  produce  without
consuming. And it seems that it is destructive to produce only  and  consume
too little. One can produce far more  than  one  consumes.  apparently,  but
cannot consume far more than one produces.

This seems to be true of groups.

Some dreamers puffing on a hash pipe of unreality believe one can really  be
happy producing nothing and consuming everything. The  idyllic  ideal  of  a
paradise where no one produces has been tried.

In interviewing secretaries in New York I found the  larger  percentage  had
the personal ideal scene of "marrying a millionaire." Aside from  there  not
being that many millionaires, the dream of idle luxury forever  was  so  far
from any possible ideal scene that it  was  busy  ruining  their  lives  and
giving their current male escorts a  life  of  critical  hell.  One,  having
married a boy who was fast on the road to becoming  a  millionaire,  was  so
dissatisfied with him not being one right now that she ruined his  life  and
hers.

In short, it sounds nice, but having met a few who did  marry  millionaires,
I can attest that they were either not producing and failing  as  beings  or
were working themselves half to death.

These no-production dreams, like  the  harp  in  heaven,  lead  at  best  to
suicidal boredom. Yet Madison Avenue's ads would have one believe  that  one
and all should own all manner of cloth, wood and metal just to be alive.

A whole civilization can break down, flop, on propaganda  of  no-production,
total consumption. The sweat that flies  off  a  "workers'  paradise"  would
rival the Mississippi!

There is some sort of balanced ratio and it  favors  apparently,  for  pride
and life and happiness, higher production  of  something  than  consumption.
When it gets too unbalanced in values, something seems to happen.

The unhappiness and tumult in current society  is  oddly  current  with  the
Keynesian economic theory of creating want. It's  a  silly  theory  and  has
lately become to be abandoned. But it was in vogue forty years or  more,  as
I recall. It produced the "welfare era" of the psychiatrist  and  the  total
slavery of the taxpayer!

So, whatever the economics of it, an ideal scene apparently has  to  have  a
statistic or the whole thing caves in, either from  lack  of  continuity  in
time, from disinterest, or from plain lack of supply.

Death is possibly, could be in part, a cessation of interested production.

Hard pressed, a living being dreams of some free time.  Give  him  too  much
and he begins to crave action and will go into  production  and  if  blocked
from doing so will tend to cave in. Loss of a job depresses people  way  out
of proportion and subsequent declines often trace back to it.

Destructive activities carry their own self-death.  The  state  of  veterans
after wars is not always traced to wounds  or  privation.  Destructive  acts
put a brand on a man.

46



Some of this is answered by the absence of production.

IDEAL SCENE AND STAT

Whatever the facts and economic rules may be about production and the  ideal
scene, it would seem to be the case, sufficient at least for  our  purposes,
that this rule holds good:

THE CORRECTLY STATED IDEAL SCENE WILL HAVE A PRODUCTION STATISTIC.

The way one defines "production" in this is not necessarily so  many  things
made on an assembly line. That's an easy one.

It isn't just pairs of shoes. Production can be defined  as  the  regulation
or safeguarding of it, the planning or the designing of it, a lot, lot,  lot
of things.

A stat is a positive numerical thing that  can  be  accurately  counted  and
graphed on a two-dimensional thing.

To test the correctness of an ideal scene, one should be able to  assign  it
a correct statistic.

If one can't figure  out  a  statistic  for  it,  then  it  probably  is  an
incorrectly stated ideal scene and will suffer from departures.

Wrong stats assigned the ideal scene will  wreck  it.  A  wrongly  conceived
ideal scene will derail the activity quickly.

To understand something it is  necessary  to  have  a  datum  of  comparable
magnitude. To understand logic one needs to be able  to  establish  what  is
illogic. One then has two things for comparison.

The ideal scene can be compared to an existing scene. This  is  one  way  to
establish the ideal scene. But both need a factor to keep them in reality.

To test the ideal scene for correctness one needs to be  able  to  formulate
its statistic.

The exercise of testing the statement of the ideal scene, to  keep  it  real
and not airy-fairy and unattainable, is to work out  a  realistic  stat  for
it.

One can go back and forth between the statistic and the stated ideal  scene,
adjusting one, then the other until one gets an  attainable  statistic  that
really does measure the validity of the stated ideal scene.

A statistic is a tight reality, a stable point.  which  is  to  measure  any
departure from the ideal scene.

In setting a statistic one  has  to  outguess  all  efforts  to  falsify  it
(predict possible outpoints in collecting it) and has to  see  if  following
the statistic would mislead anyone from the ideal scene.

So let's walk back to the shoe store.

Test statement of ideal scene: to make money.

Test statistic: pairs of shoes sold.

Now if you tried to marry up those two you'd get a prompt  catastrophe.  The
potential departure would be immediate.

We sell shoes at no profit to raise the stat, we make no money. We try  only
to make money, we sell cheap shoes at high  cost  and  our  customers  don't
come back and we don't make money.

So those two are both no good.

47



Departure would occur, indeed it already exists right in  the  badly  worked
out ideal scene and the stat.

Test ideal scene: Cobblers are entitled to the shoes they make.

Test statistic: how many shoes cobbler makes.

So that's loopy!

Test ideal scene: all citizens furnished with shoes.

Test statistic: number of shoes given away.

Well, that's bonkers for a shoe store in any economic set-up.  The  citizens
for sure would have  no  shoes  once  the  shoe  store  was  empty,  for  if
everything is given away, who'd raise cows  for  hides  or  drive  nails  in
soles unless he had a gun held on him so what  workers'  paradise  is  this?
Slave state for sure. So that's no ideal scene for a shoe  store  no  matter
how "ideal" it looks to a do-gooder. Too airy-fairy. Since  no  shoes  would
exist to be given away.

Test ideal scene: shoes for any worker who has coupons.

Test statistic: number of coupons collected.

Well, maybe. In some society. But can the  shoe  store  get  shoes  for  the
coupons? Maybe if there's enough economic police.

But then this would have to be a monopoly shoe store and the  quality  would
not be a factor,

So this must be an army quartermaster depot  or  a  state  monopoly.  If  no
incentive were needed it would work. Sure would be hard on the corns but  it
would barely work. Rather insecure though.

But this is a shoe store where people buy.

Test ideal scene: to provide workers with good shoes that  can  be  replaced
from suppliers.

Test statistic: ??? Number of shoes from suppliers given to workers . . .  .
Happy workers. . . ??? Amount of control that can be exerted on suppliers  .
. . ??? Ah. Number of shoes supplied well-shod workers.

Okay, that's a QM depot. Now what's a shoe store?

And we probably get what was given in an earlier example:

Ideal scene: to provide people with  shoes  and  continue  in  business  for
owner's lifetime.

Statistic: percentage of citizens in area profitably shod by this store.

But even this would need to be played back  and  forth.  And  if  this  shoe
store was in a socialist country both might require  amendment.  And  if  it
was  in  a  beach  resort  thronged  with  tourists  who  were  also  mostly
foreigners  the  ideal  scene  and  statistic  would  suffer  an   immediate
departure and the store would fail,  crash  if  the  ideal  scene  were  not
correctly stated and the statistic real. The class of tourist would  have  a
bearing on it.

Maybe the state has currency control demands  on  shopkeepers  and  requires
them to get in foreign currency or no new stock!

Thus You could get:

Ideal scene: engendering acquisitiveness for novelty footwear made in this
country.

Statistic: pairs of gift shoes bought by foreigners.

48



That sure would shift the whole atmosphere of the store!

Thus one plays the ideal scene against the statistic.

Maybe one can't find any ideal scene for the activity and  no  statistic  of
any significance to anyone. Could be that the activity is totally  worthless
even to oneself as a hobby. Although this opens the door to  cynicism  or  a
lazy way of not doing anything about anything, it  just  could  be.  Even  a
"reporter" who writes nothing could have an ideal scene and  statistic.  But
it would have to be really real even then. Like,

Ideal scene: unsuspected as a spy while accepted as a "reporter."

Statistic: cash collected for reports undetectedly delivered to my
government.

If that seems unreal as a scene the staff of TIME magazine recently  held  a
mass meeting protesting the use of TIME credentials for  government  spying.
"Nobody will talk to us anymore," the staff of that  dying  WFMH  mouthpiece
wept.

So anything could have an ideal scene, even a police state.

Idealism has nothing to do with it.

VIABLE

The word "viable" means capable of living, able  to  live  in  a  particular
climate or atmosphere.

Life over a period of time requires VIABILITY, or the ability to survive.

Any organism or any group or any part of a group must have  a  potential  of
survival. It must be viable-life-able.

This is true of  any  ideal  scene.  The  statistic  measures  directly  the
relative survival potential of the organism or its part.

This tells you the plain fact that life contains the  essential  purpose  of
living, no matter how many misguided philosophers  or  generals  may  decree
otherwise.

The planetary population  is  now  not  fully  viable  since  weapons  exist
capable of making it a billiard ball at the whim of some madman.

The  potential  survival  of  the  whole  is  of  course  an  influence  and
limitation on its parts.

Men who live "only for self" don't live.

An organism or group can  live  a  dangerous  life  in  that  it  risks  its
survival. But is more of a threat than its enemies if it does  not  know  or
adjust its ideal scene.

A military company, told on posters the ideal scene is all brag in  the  bar
with girls on each arm,  who  find  in  fact  that  their  actual  scene  is
military police outside every bar with clubs and a  real  short  life  under
the  orders  of  sadistically  disinterested  and  inexpert  government,  is
presented with an instantly visible departure.

The government believed such posters were needful to get  recruits  and  did
not realize that  a  truthfully  stated  scene  and  an  effort  to  promote
survival to commanders would also have recruited  and  conscription  needn't
be resorted to as the end product of lies.

Men will become part of the most onerous  and  dangerous  groups  imaginable
providing the purpose is  there  and  stated  and  they  have  a  chance  of
survival.

The ideal scene of a nation worshipping death is that of a nation that  will
not survive anyway. At least not as that nation.

A group or an organism must be viable. The state is  relative  to  the  time
the group needs to live to accomplish its purpose.

49



Each part of a group, in any ideal scene,  should  contribute  viability  to
the whole group.

Production of something is mandatory on any part of a group if the group  is
to be fully viable.

Painting,  writing,  music,  all  have  positive  roles  in  a  society.  So
productivity, as is viability, can be seen as a very broad inclusive term.

The sub purposes of any group make up the sub-ideal scene of its various
parts.

In other words each part of a broad group has its own ideal  scene  and  its
own statistic.

These combined bring about the broad group's ideal scene.

The statistics each lead to viability of the part and then the whole group.

In reverse, with so many parts of a  planet  desirous  of  extinguishing  so
many other parts, the viability of the planet becomes questionable.

In an organization each part has its own ideal scene and its  own  statistic
on up to the main ideal scene and the main statistic.

In practice one works back from the  ideal  scene  of  the  group  into  its
smallest part, so that all lesser ideal scenes and lesser  statistics  mount
up to and bring about the main ideal scene and statistic.

Examining the lesser ideal scenes and statistics,  one  can  find  outpoints
first in how the whole thing is organized and then the main ideal scene  and
the statistics and how the lesser ones bring it about.

Dominant is the viability of the whole. Where  any  part  does  not  support
total viability it is an outpoint. Contributive is  the  viability  of  each
part and cohesive is the scheme in which the lesser  ideal  scenes  and  the
lesser statistics bring about the BIG ideal scene and the BIG statistic.  If
this does not occur the nonsupportive lesser ideal scene or statistic is  an
outpoint.

Groups that falter have to  have  all  this  restudied.  As  departures  did
occur, the organization itself, as part of any action,  must  be  reexamined
against experience and new greater and lesser ideal  scenes  and  statistics
must be worked out for it and put into use.

Agreement of the group is a necessary  ingredient  as  many  reformers  have
learned, often too late, and as many groups have seen,  also  generally  too
late.

The trick is to correct the ideal scene and statistic and  all  lesser  ones
of the group while it is still alive.

After that one can have better dependence upon them and keep the  statistics
up and the purpose going forward.

L. RON HUBBARD

Founder

LRH:sb.rd.nf

50



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 7 JULY 1970

Remimeo

Data Series 14

WORKING AND MANAGING

By actual experience in working and managing in many activities I can  state
flatly that the most dangerous worker-manager thing to  do  is  to  work  or
manage from something else than statistics.

Interpersonal relations with many strata of many  societies  in  many  lands
with many activities  demonstrates  plainly  that  Man's  largest  and  most
unjust fault consists wholly of acting on opinion.

Opinions can be as varied as the weather in  Washington,  all  on  the  same
subject. When one says "opinion" one is dealing with that  morass  of  false
reports and prejudices which make up the chaos of current social orders.

Some seek an answer in status. "If one has STATUS one is safe" is  about  as
frail  as  a  house  of  cards.  Ask  some  recently  deposed  dictator   or
yesterday's idol what his status was worth. Yet many  work  exclusively  for
status. In Spain it is enough to have an executive degree. One doesn't  have
to do any executiving. Work at it? Caramba no!

In capitalisms it is enough to be an heir  and  in  communisms  it  is  only
necessary to be the son of a commissar. Work? Nyet.

Revolts are protests against idle status. Where are the kings of
yesteryear?

Riding along on the last generation's statistics is as fatal as a diet of
thin air.

Undeserved status is a false statistic. Nothing is more  bitterly  resented,
unless it is a statistic earned without status by those who live  by  status
alone!

William Stieber, the most skilled intelligence chief of  the  19th  century,
who won the Franco-Prussian war for Bismarck, was hated by  German  officers
because he was not a proper officer but a civilian!

When German officers took over German intelligence they lost two wars  in  a
row and the caste is very unlamentedly dead.

So long as "character" can be reviled, so long  as  "opinion"  is  used,  so
long as governments run on rumors and false reports, the social  scene  will
continue to be a mess.

You will not believe it but governments think newspaper stories are  "public
opinion." One US President was astounded to be given a  wildly  enthusiastic
public reception at an airport. The press had been hammering him for a  year
and the poor fellow  thought  it  was  "public  opinion."  Texts  on  public
relations remark this strange governmental fixation on believing the press.

That means all a  nation's  enemies  have  to  do  is  bribe  or  hire  some
underpaid reporters or sernibankrupt publishers, and  voila!  it  can  steer
the government any way it wishes!

Do a survey on any personality or subject and the conflicts in  opinion  are
revealed as fantastic.

Seven witnesses to one street accident will even give seven conflicting
accounts.

Thus this whole field of "opinion" and "reports" is a quicksand  endangering
both personal repute and management skill.

It is so bad that wars  and  revolutions  stem  directly  from  the  use  of
opinion and the neglect of statistics.

In a chaos it is necessary to set up one point or terminal which  is  stable
before one can really decide anything much less get anything done.

51



A statistic is such a stable point. One can proceed from it and  use  it  to
the degree that it is a correct statistic.

One can detect then, when things start to go wrong well before they crash.

Using opinion or random rumors or reports one can go very wrong  indeed.  In
fact, using these without knowing the statistics one can  smash  a  life  or
crash a group.

The US Navy operates on the social attainments  and  civilized  behavior  of
their people.

. naval officer is promoted on the basis of his amiability  and  the  social
skill of his wife!

. clerk is promoted because he marries the boss's daughter.

. governor is elected because he could play a guitar!

This is a whirlwind of chaos because of the falseness of the statistics
used.

So the stat used is itself an outpoint in each case. PREDICTION

Outpoints are more than useful in prediction.

The whole reason one does a data analysis and a situation analysis is to
predict.

The biggest outpoint would be a missing ideal scene, the next biggest  would
be a correct statistic for it.

If these are  missing  then  prediction  can  become  a  matter  of  telling
fortunes with bamboo sticks.

One predicts  in  order  to  continue  the  viability  of  an  organism,  an
individual, a group, an organization, a state or nation  or  planet,  or  to
estimate the future of anything.

The more outpoints the less future.

A disaster could be said to be a totality of outpoints in final  and  sudden
culmination.

This gives one a return to chaos.

The closer one approaches a disaster the more outpoints will turn  up.  Thus
the more outpoints that turn up the closer one is approaching a disaster.

When the outpoints are overwhelming a condition of death is approached.

By being able to predict, the organism or individual or  group  can  correct
the outpoints before disaster occurs.

Each sphere of activity has its own prediction.

A group of different activities with a common goal can be predicted  by  the
outpoints turning up in parts of the general activity.

In theory if all parts of a main group or organization had  an  ideal  scene
for each, a statistic and an  intense  interest  in  maintaining  the  ideal
scene and statistic of each part, the survival would be infinite.

Any group or organism or individual  is  somewhat  interdependent  upon  its
neighbors, on other groups and  individuals.  It  cannot  however  put  them
right unless it itself has reached some acceptable level of approach to  its
ideal scenes.

The conflict amongst organisms, individuals and groups does not  necessarily
add up to "the survival of  the  fittest,"  whatever  that  meant.  It  does
however mean that in such conflict the best chance of survival goes  to  the
individual, organism or group that best approaches and maintains  its  ideal
scene, lesser ideal scenes, statistic and lesser statistics.

L. RON HUBBARD

Founder

LRH:sb.ntm.nf

52



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 8 AUGUST 1970

Remimeo

Data Series 15

WRONG TARGET

There is an additional specific outpoint.

It is WRONG TARGET.

This means in effect AN INCORRECT SELECTION OF AN OBJECTIVE  TO  ATTEMPT  OR
ATTACK.

Example: Josie Ann has been sitting in the house reading. Her brother  Oscar
has been playing ball in the yard.  A  window  breaks.  Josie  Ann's  mother
rushes into the room, sees Josie Ann and  the  ball  on  the  floor,  spanks
Josie Ann.

This outpoint contains the element, amongst other things of injustice.

There is another version of this:

Example: A firm has its premises flooded. The manager  promptly  insists  on
buying fire insurance.

Example: The people of Yangville are starving due to food  scarcity  in  the
land. The premier borrows 65 million pounds  to  build  a  new  capital  and
palace.

Example: The  government  is  under  attack  and  riot  and  civil  disorder
spreads. The government officials campaign to put down all  "rightists"  for
trying to establish law and order.

Example: A man is beaten and robbed on  the  main  street  of  a  town.  The
police demand to know why he was there and  put  him  in  jail  for  a  long
period of investigation.

Example: The multibillion dollar drug cartels push out  65  tons  of  habit-
forming hard drugs. A government campaigns against cigarettes.

Example: A boy wants to be an accountant. His family forces him to join  the
army as a career.

It is noted that the very insane often attack anyone who seeks to help
them.

This outpoint is very fundamental as an illogic and is very useful.

L. RON HUBBARD

Founder

LRH:rr.rd.nf

53



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 19 SEPTEMBER 1970

                                   Issue I

Remimeo

Executive Hats

Ethics Hats

Data Series 16

INVESTIGATORY PROCEDURE

Correction of things which are not wrong and  neglecting  things  which  are
not right puts the tombstone on any org or civilization.

In auditing when one reviews or "corrects" a case that is running well,  one
has trouble. It is made trouble.

Similarly on the third dynamic, correcting situations  which  do  not  exist
and neglecting situations which do exist can destroy a group.

All this boils down to CORRECT INVESTIGATION. It is not a slight  skill.  It
is THE basic skill behind any intelligent action.

SUPPRESSIVE JUSTICE

When justice goes astray (as it usually does) the things that have occurred
are

1.    Use of justice for some other purpose than public safety (such as
maintaining a privileged group or indulging a fixed idea) or

2.    Investigatory procedure.

All suppressive use of the forces of justice can be traced back  to  one  or
the other of these.

Aberrations and hate very often find outlet by  calling  them  "justice"  or
"law and order." This is why it can be said that Man cannot be trusted  with
justice.

This  or  just  plain  stupidity  brings  about  a  neglect  of  intelligent
investigatory procedures. Yet all third dynamic sanity depends upon  correct
and  unaberrated  investigatory  procedures.  Only  in  that  way  can   one
establish causes of things. And only by establishing causes  can  one  cease
to be the effect of unwanted situations.

It is one thing to be able to  observe.  It  is  quite  another  to  utilize
observations so that one can get to the basis of things.

SEQUENCES

Investigations become necessary in the face of outpoints or pluspoints.

Investigations can occur out of idle curiosity or particular interest.  They
can also occur to locate the cause of pluspoints.

Whatever the motive for investigation the action itself is conducted by
sequences.

If one is incapable mentallv of tracing a series of events or  actions,  one
cannot investigate.

Altered sequence is a primary block to investigation.

54



At first glance, omitted data would seem to be the block. On  the  contrary,
it  is  the  end  product  of  an  investigation  and  is  what   pulls   an
investigation along-one is looking for omitted data.

An altered sequence of actions defeats any investigation. Examples: We  will
hang him and then conduct a trial. We will assume who did it and  then  find
evidence to prove it. A crime should be provoked to find who commits them.

Any time an investigation gets back to front, it will not succeed.

Thus if an investigator himself has any trouble with seeing  or  visualizing
sequences of actions he will inevitably come up with the wrong answer.

Reversely, when  one  sees  that  someone  has  come  up  with  a  wrong  or
incomplete answer one can assume that  the  investigator  has  trouble  with
sequences of events or, of course, did not really investigate.

One can't really credit that Sherlock Holmes would  say  "I  have  here  the
fingerprint of Mr. Murgatroyd on the murder weapon. Have the  police  arrest
him. Now, Watson, hand me a magnifying glass and ask Sgt. Doherty to let  us
look over his fingerprint files."

If one cannot visualize a series of actions, like a  ball  bouncing  down  a
flight of stairs or if one cannot relate in proper order  several  different
actions with one object into a proper sequence,  he  will  not  be  able  to
investigate.

If one can, that's fine.

But any drilling with attention-shifting drills will improve  one's  ability
to visualize sequences.  Why?  Stuck  attention  or  attention  that  cannot
confront alike will have trouble in visualizing sequences.

INVESTIGATIONS

In HCO Policy Letter I I May 1965 Ethics Officer Hat, HCO  Policy  Letter  I
Sept 1965 Issue VII, HCO Policy Letter I Feb 1966 Issue 11 and pages  3,  4,
5 and 6 of the Manual of Justice, the subject of  investigation  as  applied
to justice is given.

It will be noted that these are sequences of actions.

Neglect of these items or a failure to know and follow  them  led  here  and
there to suppressive uses of justice or to permitting orgs to be  suppressed
by special interest groups in the society.

Indeed, had these been in and followed we would have had a great  deal  less
trouble than we did.

But investigation is not monopolized by law and order.

All betterment of life  depends  on  finding  out  pluspoints  and  why  and
reenforcing them, locating outpoints and why and eradicating them.

This is the successful survival pattern of living. A primitive who is  going
to survive does just that and a scientist who is worth  anything  does  just
that.

The fisherman sees seagulls clustering over a point on the sea.  That's  the
beginning of a short sequence, point No. 1. He predicts a  school  of  fish,
point No. 2. He sails over as  sequence  point  No.  3.  He  looks  down  as
sequence point No. 4. He sees fish as point No. 5. He  gets  out  a  net  as
point No. 6. He circles the school with the net, No.  7.  He  draws  in  the
net, No. 8. He brings the fish on board, No. 9. He goes to port, No. 10.

55



He sells the fish, No. 11. That's following a pluspoint-cluster of
seagulls.

A sequence from an outpoint might be: Housewife serves dinner.  Nobody  eats
the cake, No. 1, she tastes it, No. 2, she recognizes soap  in  it,  No.  3.
She goes to kitchen, No. 4. She looks into cupboard, No. 5.  She  finds  the
soap box upset, No. 6. She sees the flour below it, No. 7. She  sees  cookie
jar empty, No. 8. She grabs young son, No. 9. She shows him the set-up,  No.
10. She gets a confession, No. 11. And No. 12 is too painful to describe.

Unsuccessful investigators think good fish catches are sent by God and  that
when cake tastes like soap it is fate. They live in unsuccessful  worlds  of
deep mystery.

They also hang the wrong people

DISCOVERY

All discoveries are the end product of a sequence of  investigatory  actions
that begin with either a pluspoint or an outpoint.

Thus all knowledge proceeds from pluspoints or outpoints observed.

And all knowledge depends on an ability to investigate.

And all investigation is done in correct sequence.

And all successes depend upon the ability to do these things.

L. RON HUBBARD

Founder

LRH:sb.rd.nf

56



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 19 SEPTEMBER 1970

                                  Issue 11

Remimeo

Data Series 17

NARROWING THE TARGET

When you look at a broad field or area it is quite overwhelming to  have  to
find a small sector that might be out.

The lazy and popular way is  to  generalize  "They're  all  coniused."  "The
organization is rickety." "They're doing great."

That's all very well but it doesn't get you much of anywhere.

The way to observe so as to find out what to observe is by discarding
areas.

This in fact was the system I used to  make  the  discoveries  which  became
Dianetics and Scientology.

It was obvious to me that it would take a few million years to  examine  all
of life to find out what made it what it was.

The first step was the tough one. I looked for  a  common  denominator  that
was true for all life forms. I found they were attempting to survive.

With this datum I outlined all areas of wisdom or  knowledge  and  discarded
those which had not much assisted Man to survive.

This threw  away  all  but  scientific  methodology,  so  I  used  that  for
investigatory procedure.

Then, working with that, found  mental  image  pictures.  And  working  with
them, found the human spirit as different from them.

By following up the workable one arrived at the  processing  actions  which,
if applied, work, resulting in the increase of ability and freedom.

By following up the causes of destruction one arrived at  the  points  which
had to be eradicated.

This is of course short-handing the whole cycle enormously. But that is  the
general outline.

Survival has been isolated as a common  denominator  to  successful  actions
and succumb has  been  found  as  the  common  denominator  of  unsuccessful
actions. So one does not have to reestablish these.

From there, to discover anything bad or good, all one has to do  is  discard
sterile areas to get a target necessary for investigation.

One looks broadly at the whole scene. Then  discards  sections  of  it  that
would seem unrewarding. He will then find himself left with  the  area  that
contains the key to it.

This is almost easier done than described.

Example: One has the statistics of a nine division org.  Eight  are  normal.
One isn't. So he investigates the area of that  one.  In  investigating  the
one he discards all normal bits. He is left with the abnormal  one  that  is
the key.

This is true of something bad or something good.

A wise boy who wanted to get on in  life  would  discard  all  the  men  who
weren't getting on and study  the  one  who  was.  He  would  come  up  with
something he could use as a key.

57



A farmer who wanted to handle a crop menace would disregard all  the  plants
doing all right and study the one that wasn't. Then,  looking  carefully  he
would disregard all the should be's in that  plant  and  wind  up  with  the
shouldn't be. He'd have the key.

Sometimes in the final look one finds the key not right there but  way  over
somewhere else.

The boy, studying the successful man, finds he owed his  success  to  having
worked in a certain bank seven states away from there.

The farmer may well find his hired man let the pigs out into the crop.

But both got the reason why by the same process of discarding wider zones.

Pluspoints or outpoints alike take one along a sequence of discoveries.

Once in a purple moon they mix or cross.

Example: Gross income is up. One  discards  all  normal  stats.  Aside  from
gross income being up only one other stat is down-new  names.  Investigation
shows that the public executives were off post all week on a tour  and  that
was what raked in the money. Conclusion-send out tours as well  as  man  the
public divisions.

Example:  Upset  is  coming  from  the  camp  kitchen.  Obvious   outpoints.
Investigation discloses a 15-year-old cook  holding  the  job  solo  for  39
field hands! Boy is he pluspoint. Get him some help!

DRAWN ATTENTION

Having attention  dragged  into  an  area  is  about  the  way  most  people
"investigate." This puts them at effect throughout.

When a man is not predicting he is often subjected to  outpoints  that  leap
up at him. Conversely when outpoints leap up at one  unexpectedly  he  knows
he  better  do  more  than  gape  at  them.  He  is  already  behindhand  in
investigating. Other signs earlier existed which were disregarded.

ERRORS

The usual error in viewing situations is not to view them widely  enough  to
begin with.

One gets a despatch which says Central Files don't exist.

By now keeping one's attention narrowly on that, one can miss the whole
scene.

To just order Central Files put back in may fail  miserably.  One  has  been
given a  single  observation.  It  is  merely  an  outpoint:  Central  Files
omitted.

There is no WHY.

You follow up "no CF" and you may  find  the  Registrar  is  in  the  Public
Division and Letter Registrars never go near a  file  and  the  category  of
everyone in CF is just ---beentested." You really investigate and  you  find
there's no HCO Exec Sec or Dissem Sec and there hasn't been one for a year.

The cycle of "outpoint, correct, outpoint, correct, outpoint, correct"  will
drown one rapidly and improve nothing! But it sure makes a  lot  of  useless
work and worry.

WISDOM

Wisdom is not a fixed idea.

It is knowing how to use your wits.

L. RON HUBBARD

Founder

LRH:sb.rd.nf

58



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 19 SEPTEMBER 1970

                                  Issue III

Remimeo

Data Series 18

SUMMARY OF OUTPOINTS

OMITTED DATA

An omitted anything is an outpoint.

This can be an omitted person, terminal, object, energy, space, time,  form,
sequence, or even an omitted  scene.  Anything  that  can  be  omitted  that
should be there is an outpoint.

This is easily the most overlooked outpoint as it isn't  there  to  directly
attract attention.

On several occasions I have found situation analyses done which  arrived  at
no WHY that would have made handling possible but which  gave  a  false  Why
that would have upset things if used. In each case the  outpoint  that  held
the real clue was this one of an omitted something. In a dozen cases it  was
omitted personnel each time. One area to which orders were being issued  had
no one in it at all. Others were undermanned, meaning people  were  missing.
In yet another case there were no study  materials  at  all.  In  two  other
cases the whole of a subject was missing in the area. Yet no one in  any  of
these cases had spotted the fact that it was an omitted something  that  had
caused a whole activity to decay. People were working frantically to  remedy
the general situation. None of them noticed  the  omissions  that  were  the
true cause of the decay.

In crime it is as bad to omit as it is  to  commit.  Yet  no  one  seems  to
notice the omissions as actual crimes.

Man, trained up in the  last  century  to  be  a  stimulus-response  animal,
responds to the  therenesses  and  doesn't  respond  as  uniformly  to  not-
therenesses.

This opens the door to a habit of deletion or shortening  which  can  become
quite compulsive.

In any analysis which fails to discover a WHY one can  safely  conclude  the
Why is an omission and look for things that should be there and aren't.

ALTERED SEQUENCE

Any things, events, objects, sizes, in a wrong sequence is an outpoint.

The number series 3, 7, 1, 2,  4,  6,  5  is  an  altered  sequence,  or  an
incorrect sequence.

Doing step two of a sequence  of  actions  before  doing  step  one  can  be
counted on to tangle any sequence of actions.

The basic outness is no sequence at all. This leads  into  FIXED  IDEAS.  It
also shows  up  in  what  is  called  disassociation,  an  insanity.  Things
connected to or similar to each other are  not  seen  as  consecutive.  Such
people also jump about subjectwise without relation to an obvious  sequence.
Disassociation is the extreme case where things that  are  related  are  not
seen to be and things that have no relation are conceived to have.

Sequence means linear (in a line) travel either through space or time or
both.

59



A sequence that should be one and isn't is an outpoint.

A "sequence" that isn't but is thought to be one is an outpoint.

A cart-before-the-horse out of sequence is an outpoint.

One's hardest task sometimes is indicating an inevitable sequence  into  the
future that is invisible to another. This is a consequence. "If you saw  off
the limb you are sitting on you will of course fall." Police  try  to  bring
this home often to people who have no concept of sequence; so the threat  of
punishment works well on well-behaved citizens and not at all  on  criminals
since they often are criminals because they  can't  think  in  sequence-they
are simply fixated. "If you kill a man you will be hanged," is an  indicated
sequence. A murderer fixated on revenge cannot think in  sequence.  One  has
to think in sequences to have correct sequences.

Therefore it is far more common than one  would  at  first  imagine  to  see
altered sequences since persons who do not think  in  sequence  de  not  see
altered sequences in their own actions or areas.

Visualizing sequences and drills in shifting attention  can  clean  this  up
and restore it as a faculty.

Motion pictures  and  TV  were  spotted  by  a  recent  writer  as  fixating
attention and  not  permitting  it  to  travel.  Where  one  had  TV  raised
children, it would follow, one possibly would have people  with  a  tendency
to altered sequences or no sequences at all.

DROPPED TIME

Time that should be noted and isn't would be an outpoint of "dropped time."

It is a special case of an omitted datum.

Dropped time has a peculiarly ferocious effect that adds up to utter
lunacy.

A news bulletin from 1814 and one from 1922 read consecutively without  time
assigned produces otherwise undetectable madness.

A summary report of a situation containing events strung over  half  a  year
without saying so can provoke a reaction not in  keeping  with  the  current
scene.

In madmen the present is the dropped  time,  leaving  them  in  the  haunted
past. Just telling a group of madmen to  "come  up  to  present  time"  will
produce a few miraculous "cures." And getting the date of an  ache  or  pain
will often cause it to vanish.

Time aberrations are so strong that dropped time well qualifies as an
outpoint.

FALSEHOOD

When you hear two facts that are contrary, one is a falsehood or both are.

Propaganda and other activities specialize in falsehoods and  provoke  great
disturbance.

Willful or unintentional a falsehood is an outpoint. It may be a mistake  or
a calculated or defensive falsehood and it is still an outpoint.

A false anything qualifies for this outpoint. A false being, terminal,  act,
intention, anything that seeks to be what it isn't is  a  falsehood  and  an
outpoint.

Fiction that does not pretend to be anything else is of course not a
falsehood.

So the falsehood means "other than it appears" or "other than represented."

One does not have to concern oneself to define philosophic truth or  reality
to see that something stated or modeled to be one thing is  in  actual  fact
something else and therefore an outpoint.

60



ALTERED IMPORTANCE

An importance shifted from its actual relative importance, up  or  down,  is
an outpoint.

Something can be assigned an importance greater than it has.

Something can be assigned an importance less than it has.

A number of things of different importances can be assigned  a  monotone  of
importance.

These are all outpoints, three versions of the same thing.

All importances are relative to their actuality.

WRONG TARGET

Mistaken objective wherein one believes he is or should be  reaching  toward
A and finds he is or should be reaching toward B is an outpoint.

This is commonly mistaken identity. It is also mistaken purposes or goals.

If we tear down X we will be  okay  often  results  in  disclosure  that  it
should have been Y.

" Removing the slums" to  make  way  for  modern  shops  kills  the  tourist
industry. Killing  the  king  to  be  free  from  taxation  leaves  the  tax
collector alive for the next regime.

Injustice is usually a wrong target outpoint.

Arrest the drug consumer, award the drug company would be an example.

Military tactics and strategy are  almost  always  an  effort  to  coax  the
selection of a wrong target by the enemy.

And most dislikes and spontaneous hates in  human  relations  are  based  on
mistaken associations of Bill for Pete.

A large sum of aberration is based on wrong targets,  wrong  sources,  wrong
causes.

Incorrectly tell a patient he has ulcers when he hasn't and he's  hung  with
an outpoint which impedes recovery.

The industry spent on wrong objectives would light the world for a
millennium.

SUMMARY

These are the fundamental outpoints required in data analysis and  situation
analysis.

They have one infinity of variation. They  should  be  very  well  known  to
anyone seeking third dynamic sanity.

They are the basic illogics.

And while there may be others, these will serve.

L. RON HUBBARD

Founder

LRH:sb.rd.nf

61



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 13 OCTOBER 1970

                                  Issue 11

Remimeo

Data Series 19

THE REAL WHY

"WHY" as used in logic is subject to noncomprehension.

WHY = that basic outness found which will lead to a recovery of stats.

WRONG WHY = the incorrectly identified outness which when applied  does  not
lead to recovery.

A MERE EXPLANATION = a "Why" given as THE Why that does not  open  the  door
to any recovery.

Example: A mere explanation: "The stats went down because of  rainy  weather
that week." So? So do we now turn off rain? Another mere  explanation:  "The
staff became overwhelmed  that  week."  An  order  saying  "Don't  overwhelm
staff" would be the possible "solution"  of  some  manager.  BUT  THE  STATS
WOULDN'T RECOVER.

The real WHY when found and corrected leads straight back to improved
stats.

. wrong Why, corrected, will further depress stats.

. mere explanation does nothing at all and decay continues.

Here is a situation as it is followed up:

The stats of an area were  down.  Investigation  disclosed  there  had  been
sickness 2 weeks before. The report came in: "The stats  were  down  because
people were sick." This was a mere  explanation.  Very  reasonable.  But  it
solved nothing. What do we do now? Maybe we accept this as the correct  Why.
And give an order, "All people in the area  must  get  a  medical  exam  and
unhealthy workers will not be accepted and unhealthy ones  will  be  fired."
As it's a correction to a wrong Why, the stats really crash. So  that's  not
it. Looking further we find the real WHY. In the area there is  no  trained-
in org bd and a boss there gives orders to  the  wrong  people  which,  when
executed, then hurt their individual stats.  We  org  board  the  place  and
groove in the boss and we get a stat recovery and even an improvement.

The correct WHY led to a stat recovery.

Here is another one. Stats are down in a school. An investigation  comes  up
with a mere explanation: "The  students  were  all  busy  with  sports."  So
management says "No sports!" Stats go down again. A new investigation  comes
up with a wrong Why: "The students are  being  taught  wrongly."  Management
sacks  the  dean.  Stats  really  crash  now.  A  further   more   competent
investigation occurs. It turns out that there were  140  students  and  only
the dean and one instructor! And the dean had other duties! We put the  dean
back on post and  hire  two  more  instructors  making  three.  Stats  soar.
Because we got the right Why.

Management and organizational catastrophes and successes are  ALL  explained
by these three types of Why. An arbitrary is probably just a wrong Why  held
in by law. And if so held in, it will crash the place.

62



One really has to understand logic to  get  to  the  correct  WHY  and  must
really be on his toes not to use and correct a wrong WHY.

In world banking, where inflation occurs, finance regulations  or  laws  are
probably just one long parade of wrong Whys. The value of the money and  its
usefulness to the citizen  deteriorate  to  such  an  extent  that  a  whole
ideology can be built up (as in Sparta by Lycurgus who invented  iron  money
nobody could lift in order to rid Sparta of money evils) that  knocks  money
out entirely and puts nothing but nonsense in its place

Organizational troubles are greatly  worsened  by  using  mere  explanations
(which lead to no remedies) or wrong Whys  (which  further  depress  stats).
Organizational recoveries come from finding the real WHY and correcting it.

The test of the real WHY is "When it is corrected,  do  stats  recover?"  If
they do that was it. And any other remedial  order  given  but  based  on  a
wrong Why would have to be cancelled quickly.

L. RON HUBBARD

Founder

LRH:sb.rd.nf

63



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 NOVEMBER 1970

Remimeo

Data Series 20

MORE OUTPOINTS

While there could be many many oddities  classifiable  as  outpoints,  those
selected and named as such  are  major  in  importance  whereas  others  are
minor.

WRONG SOURCE

"Wrong Source" is the other side of the coin of wrong target.

Information taken from wrong source, orders taken  from  the  wrong  source,
gifts or materiel taken from wrong source all add up to  eventual  confusion
and possible trouble.

Unwittingly receiving from a  wrong  source  can  be  very  embarrassing  or
confusing, so much so that it is a favorite intelligence trick.  Dept  D  in
East Germany, the Dept of Disinformation,  has  very  intricate  methods  of
planting false information and disguising its source.

Technology can come from wrong source.  For  instance  Leipzig  University's
school of psychology and psychiatry  opened  the  door  to  death  camps  in
Hitler's Germany. Using drugs these men apparently gave Hitler to the  world
as their puppet. They  tortured,  maimed  and  slaughtered  over  12,000,000
Germans in death camps. At the end of World War 11 these  extremists  formed
the "World  Federation  of  Mental  Health,"  which  enlisted  the  American
Psychiatric  Association  and   the   American   Medical   Association   and
established "National Associations for Mental Health" over the world,  cowed
news media, smashed any new technology and became the sole advisors  to  the
US government on "mental health, education and welfare" and  the  appointers
of all health ministers  through  the  civilized  world  and  through  their
graduate Pavlov dominated Russian communist "mental health." This source  is
so wrong that it is destroying  Man,  having  already  destroyed  scores  of
millions. (All statements given here are documented.)

Not only  taking  data  from  wrong  source  but  officialdom  from  it  can
therefore be sufficiently aberrated as to result in planetary insanity.

In a lesser level, taking a report from a known bad hat and acting  upon  it
is the usual reason for errors made in management.

CONTRARY FACTS

When two statements are made on one  subject  which  are  contrary  to  each
other, we have "contrary facts."

Previously we classified this illogic as a falsehood, since one of them
must be false.

But in doing data analysis one  cannot  offhand  distinguish  which  is  the
false faQt. Thus it becomes a special outpoint.

"They made a high of $12,000  that  week"  and  "They  couldn't  pay  staff"
occurring in the same time period gives us one or both as false. We may  not
know which is true but we do know they are contrary and can so label it.

64



In interrogation this point is so important that anyone giving two  contrary
facts becomes a prime suspect for  further  investigation.  "I  am  a  Swiss
citizen" as a statement from someone who has had a German passport found  in
his baggage would be an example.

When two "facts" are contrary or contradictory we  may  not  know  which  is
true but we do know they can't both be true.

Issued by the same org, even from two different  people  in  that  org,  two
contradictory "facts" qualifies as an outpoint.

These two will be found useful in analysis.

L. RON HUBBARD

Founder

LRH:sb.rd.nf

iw

65



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 15 MARCH 197 IRA

Remimeo     Issue 11

Admin RE-REVISED 21 SEPTEMBER 1981

      Students

Tech

Qual  (Re-revised to return to original issue due

C/Ses to reinstatement of HCOB 28 Aug 70RB

HGCs  HC OUTPOINT PLUSPOINT LISTS RB.

Cramming    HCOB 24 July 70 DATA SERIES remains

      Officerscancelled.)

(Revisions not in a different type style)

Data Series 21RA

DATA SERIES AUDITING

References:

HCOB 28 Aug 70RB HC OUTPOINT PLUSPOINT

Rev. & Reins.    LISTS RB

27 Jan 81

HCO PL 30 Nov 76R      ONLY SSO CAN TIP

Rev. 25 Apr 79

Whenever a student cannot grasp or retain the data of the DATA SERIES
policy letters, he must be audited on the HC OUTPOINT PLUSPOINT LISTS.

The reason for this is that he himself has OUTPOINTS and it is necessary to
audit him on this subject.

When the student has outpoints, it has been found that he has a terrible
time grasping or retaining the Data Series material.

This does not mean the student is in any way crazy. It just means he is
illogical and has outpoints in his thinking.

This will reflect as well in his other studies.

At the discretion of the SSO and C/S, the student may also be programmed
for Method One Word Clearing, the PRD, the Study Green Form or any of the
various student repairs, New Era Dianetics, etc. He can also be given Super
Power when released.

An individual program is worked out for the student using the available
tech so that he can master the Data Series material.

L. RON HUBBARD

Founder

Updated by

Mission Issues Revision

Accepted by the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:JM:bk.gm Copyright@ 1971, 1981

66



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 31 JANUARY 1972

Remimeo

Data Series 22

THE WHY IS GOD

When beings operate mainly on illogics,  they  are  unable  to  conceive  of
valid reasons for things or to see  that  effects  are  directly  caused  by
things they themselves can control.

The inability to observe and find an actual useable WHY is the  downfall  of
beings and activities. This is factually the WHY of people not finding  WHYs
and using them.

The prevalence of historical  Man's  use  of  "fate,"  "kismet"  (fatalism),
superstition, fortune telling, astrology and mysticism confirms this.

Having forgotten to keep seed grain for the spring, the farmer  starves  the
following year and when asked WHY he is starving says it is the  Gods,  that
he has sinned or that he failed to  make  sacrifice.  In  short,  unable  to
think, he says "The Why is God."

This condition does not just affect primitives or backward people.

All through the most modern organizations you can find "The WHY is  God"  in
other forms.

By believing that it is the fault  of  other  divisions  or  departments,  a
staff member does not look into his own scene. "The  reason  1  cannot  load
the lumber is because the Personnel Section will not find and hire  people."
It does not seem to occur to this fellow that he is using  a  WHY  which  he
can't control so it is not a  WHY  for  his  area.  It  does  not  move  the
existing to the ideal scene. Thus it is not a WHY for him. Yet he  will  use
it and go on nattering about, it. And the  lumber  never  gets  loaded.  The
real WHY for him more likely  would  be,  "I  have  no  right  to  hire  day
laborers. 1 must obtain this right before my area breaks down  totally,"  or
"My department posts are too specialized. 1 need  to  operate  on  all-hands
actions on peak loads."

A Course Supervisor who says, "I haven't got  any  students  because  Ethics
keeps them for weeks and Cramming for months" is using a "The WHY  is  God."
As he cannot control Ethics or Cramming from his post his WHY is  illogical.
The real WHY is probably "I am not  mustering  all  my  students  daily  and
keeping them on course. If they are ordered to Ethics or Cramming they  must
be right here studying except for the actual minutes  spent  in  Ethics  and
Cramming."

But this does not just apply  on  small  activities.  It  applies  to  whole
nations. "The reason  we  Germans  cannot  advance  is  because  England  is
against us." This wrong WHY has killed many tens of millions  in  two  world
wars.

Intelligence organizations are often almost dedicated to "the  Why  is  over
there." It seldom is.

Most staffs of orgs, when pay is poor,  are  completely  addicted  to  over-
thereness.  In  one  org,  the  Finance  Banking  Officer  was  continuously
hammered to "give more money" by the people who were responsible for  making
the money and yet who were not raising a finger to do so. An  actual  survey
of four org staffs showed that only 2% were aware that  their  pay  depended
upon the org gross income!

67



Thus survival is very closely tied to logic. If  one  finds  he  is  sinking
into apathy over his inability to get his job done, it is  certain  that  he
is operating on self-conceived wrong WHYs in areas that he cannot ever  hope
to control.

And in living any life, most major points of decline can be  traced  to  the
person's operating on Whys that do not allow him to improve his own scene.

The Greek cut open the guts of  birds  to  find  the  WHY.  He  called  this
"divination" or "augury." Don't look now. but  that  civilization  has  long
been dead!

Just as anyone will be whose illogic leads him to over-thereness to find
his Whys.

Strength and power in the individual consists of  being  logical  enough  to
find WHYs he can use to advance his existing scene toward the ideal scene.

The Why is NOT God. It lies with YOU and your ability to be logical.

God helps those who help themselves.

L. RON HUBBARD

Founder

LRH:ne.rd.nf

68



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 17 FEBRUARY 1972

Remimeo

Data Series 23

PROPER FORMAT AND CORRECT ACTION

When doing an evaluation, one can become far too fixated  on  outpoints  and
miss the real reason one is doing an evaluation in the first place.

To handle this, it is proper form to write up an evaluation so  as  to  keep
in view the reason one is doing one.

This is accomplished by using this form SITUATION:

DATA:

STATS: WHY: IDEAL SCENE:

HANDLING:

CONSISTENCY

The whole of it should concern itself with the same general scene, the  same
subject matter. This is known as CONSISTENCY. One does not have a  situation
about books, data about bicycles, stats  of  another  person,  a  WHY  about
another area, a different subject for ideal scene and handling  for  another
activity.

The situation, whether good or bad, must be about a certain subject,  person
or area, the data must be about the same, the stats are of that same  thing,
the WHY relates to that same thing, the ideal scene is about  the  scene  of
that same thing and the  handling  handles  that  thing  and  especially  is
regulated by that Why.

A proper evaluation is all of a piece.

SITUATION

First, to do an evaluation, some situation must have come to  notice.  There
is a report or observation that is out of the ordinary.

This "coming to notice" occurs on any line.  Usually  it  is  fairly  major,
affecting a large portion of the area, but it can be minor.

So OBSERVATION in general must be continuous for situations to be noted.

To just note a situation and act on it  is  out  of  sequence  as  it  omits
evaluation. You can be elated or shocked uselessly  by  noting  a  situation
and then not doing any evaluation,

It is the hallmark of a rank amateur or idiot to act on reports without  any
evaluation.

So, the first step is noting, from general alertness, a situation exists.

A situation is defined as a not expected state  of  affairs.  It  is  either
very good or it is very bad.

69



If it is very good it must be evaluated and a Why  found  so  one  can  even
upgrade an ideal scene.

If it is very bad, it must be evaluated and a Why found so that  it  can  be
handled to more closely approach the ideal scene.

DATA

Data is the information one has received that alerts one to the situation.

Intelligence systems use various (mainly  faulty)  methods  of  "evaluating"
data so as to "confirm it." They do this uniformly from reports.  No  matter
how many reports one may see there is always a question as to  their  truth.
Intelligence chiefs have started most wars (US vs. Germany 1917)  or  failed
to start them in time (US vs. Japan 1936)  by  depending  on  "authoritative
sources," "skilled observers," "valid documents"  and  other  confetti  they
class as "reports" or "documents."

As noted above, the "raw document" or "raw materials"  as  they  are  called
have led, when  accepted,  to  the  most  terrifying  catastrophes.  British
Admiral Hall, without permission  of  the  British  government,  leaked  the
famous "Zimmerman telegram" to US President  Wilson  and  stampeded  the  US
into World War 1. The alleged German "instructions" to their  US  Ambassador
"intercepted" by Hall were passed on with confidence  tricks  and  President
Wilson, elected to keep the US out of the war,  being  no  great  evaluator,
dived overboard on one flimsy questionable report and carried  America  into
the disaster of two world wars and a communist supremacy.

The US was lulled by  false  Japanese  assurances  and  false  data  on  the
smallness of Japanese armaments and considered the country  no  danger.  The
true situation would have led to a US declaration of  war  in  1936!  Before
Japan could sink the whole Pacific fleet in one raid and  cause  41/2  years
of war and open all of China to communist supremacy.

These are just a couple of  the  thousands  of  disasters  in  international
affairs brought about by a pathetic reliance on reports or documents.

If you knew the game well, with  a  half  a  dozen  agents  and  a  document
factory, you could have  half  the  countries  of  the  planet  in  turmoil.
Because they  rely  on  reports  and  "authoritative  sources"  and  "expert
opinion" instead of data as viewed in this Data Series.

If one does not court disaster and failures one does NOT  rely  on  reports,
but an absence of reports or a volume  of  reports  carefully  surveyed  for
outpoints and counted.

To do this one must be VERY  skilled  at  spotting  outpoints.  Most  people
confuse simple errors with actual outpoints.

You can get so good at this you can recognize outpoints and pluspoints at  a
fast glance over reports.

Essentially, "data" regarded from the  angle  of  outpoints  is  a  lack  of
consistency. "Our Div 2 is doing very well" doesn't  go  with  gross  income
$2.

This gives  you  a  guideline,  the  "string  to  pull"  (see  investigation
checksheet on following down things you just  don't  understand,  the  first
emergence of the Data Series).

So the DATA you give is not a lot of reports. It is a brief summary  of  the
"strings pulled" on the outpoint or pluspoint route to finally get the Why.

Example: (from a situation where an  org  was  going  broke)  "The  sign-ups
reported for service and new names to  Central  Files  were  both  high  yet
gross income was down. An  investigation  of  the  service  area  showed  no
backlogs and no new customers with the staff idle. Tech Services  was  fully
staffed. Examining complement showed no one in  the  Department  of  Income.
People were signed up but there was no one to receive the  money."  The  WHY
of course was a wrong complement particularly NO CASHIER  and  an  Executive
Director neglecting his duties.

Example: (on a situation of a stat soaring) "The Promo Dept  had  very  down
stats with no promo going out. Bulk mail was low. Div 6 was  idle,  yet  the
GI was soaring. Nothing in the  org  could  be  found  to  account  for  it.
Investigation of what promo incoming public had, showed that the  promo  was
coming from a lower level org promoting itself as a  route  to  upper  level
services." The WHY of course was  an  effective  promo  campaign  being  run
OUTSIDE the org. And one could bolster that up and get the org active too.

70



DATA, then, is the Sherlock Holming of the trail that gave the  WHY.  It  at
once reflects the command the evaluator has of the DATA SERIES. And his  own
cleverness.

Sometimes they come in a sudden blue flash a yard long, a piece  of  insight
into what MUST be going on  if  these  outpoints  add  up  this  way.  Rapid
investigation of further data on this trail proves or  disproves  the  flash
of insight. One does NOT run on insight alone (or crystal balls).

To one not trained and practiced in evaluation the finding  of  a  REAL  WHY
may look as mysterious as an airplane to an aborigine.

It is a fact that people who do not understand evaluation can get  the  idea
that management acts on personalities or whims or that management has  spies
everywhere to know that the Distribution Secretary never came to work.

To the expert it is easy. To the ignorant it looks very supernatural.

It is the TRAIL followed that counts.

This is what is required under "DATA."

STATS

Situations and DATA trails are supported by statistics.

Where statistics are not in numeral form this may be harder. Where they  are
outright lies, this is an outpoint itself.

A person or nation without any statistic  may  be  a  puzzle  at  first  but
statistical approximations can exist and be valid.

Statistics of CIA would be very hard to dig up. They don't even let  the  US
Congress in on it. But the deteriorating overseas influence of the US  would
show that CIA was not batting any high average and  that  its  data  fed  to
policy-makers (its  avowed  purpose)  might  well  be  false  or  misleading
causing policy errors that cause a deteriorating scene.

So statistics can be estimated by the  scene  itself  even  when  absent  in
numerical form.

England has lost its whole empire in a  quarter  of  a  century,  without  a
single defeat in war. This gives an adequate statistic for the  government's
good sense or lack of it. It is at this writing losing  even  parts  of  the
homeland and is itself joining what might be called the Fourth Reich and  so
will soon cease to exist as a  political  sovereignty.  This  statistic  can
even be drawn as a dive-bombing down curve.

A deckhand's statistic may not exist on a chart but the areas  he  tends  do
exist for view.

One either has a numerical statistic or a direct observation. One can use
both.

I once answered the question, "Why  are  paid  completions  high  and  gross
income low?" by finding that the "paid" completions stats were false.

So one statistic can be compared to another.

Three or more stats can be compared to each other and  often  lead  directly
to a WHY.

The main point is DON'T ACT WITHOUT STATISTICAL DATA.

After a fine data analysis, one may well find the  stats  are  quite  normal
and there is NO situation.

One may have a great PR PR PR data  analysis  and  collide  with  statistics
you'd need a submarine to read.

And one may have data that says the whole staff of  Keokuk  should  be  shot
without waiting for dawn and then discover that,  by  stats,  they're  doing
great.

And one can also do a data analysis that shows somebody should be  commended
and prove it by stats and then discover belatedly the stats  are  false  and
the guy should have been shot.

However, if one looks at all available stats after  doing  a  data  analysis
one may find they look good at a glance but are sour as  green  apples.  One
could see a high lot of stats, GI, etc., and  then  see  a  cost  stat  that
shows someone is making $2 million at a cost of  $4  million  and  that  the
place is going straight into the garbage can.

71



DO NOT give a Why  or  recommend  handling  without  inspecting  the  actual
stats. And DO NOT be thrown off a situation  you  are  sure  exists  without
looking at ALL the stats. (Example: High hour interns' stats throw  one  off
interfering until one sees NO interns graduating and NO  programs  completed
by them.)

THE WHY

This is the jewel in the crown, the main dish at dinner, the  gold  mine  in
the towering mountains of mystery.

A real WHY must lead to a bettering of the existing scene or  (in  the  case
of a wonderful new scene) maintaining it as a new ideal scene.

Therefore the WHY must be something you can do  something  about.  (See  THE
WHY IS GOD policy letter.)

Thus the Why is limited by what you can control.  It  is  NEVER  that  other
division or top management or the bumps on the moon.

Even if all this were true, the WHY must be something which

YOU CAN DO  SOMETHING  ABOUT  YOURSELF  FROM  YOUR  LEVEL  OF  AUTHORITY  OR
INITIATIVE that will lead to

THE IMPROVEMENT OF A POOR EXISTING SCENE TOWARD THE IDEAL SCENE.

The WHY is a special thing then.  It  is  a  key  that  opens  the  door  to
effective improvement.

It is not a prejudice or a good idea. It is where all the analysis led.

And a REAL Why when used and handled and acted upon is like a magic  carpet.
The scene at once becomes potentially better or gets maintained.

"Acting on a wrong Why" is the stuff of which coffins are made.

No matter how brilliant the program that follows, there it is, the same old
mud.

Wrong Whys work people half to death  handling  a  program  which  will  lay
ostrich eggs and rotten ones at that.

It will cost money and time that can't be afforded easily.

It will distract from the real tiger in the woods and let him roar  and  eat
up the goats while everyone is off chasing the  ghosts  which  "really  were
the cause of it all."

Wrong Whys are the tombstones of all great civilizations and unless  someone
gears up the think will be the mausoleum of this one.

Do not think you won't get them. It takes 28,000 casualties in battle,  they
say, to make a major general. Well it may take a few wrong Whys to  make  an
evaluator.

The evaluator who has done the evaluation is of course  responsible  for  it
being correctly done and leading to the right  conclusion  and  verified  by
stats to give the correct real WHY.

And the real ones are often too incredible to have been arrived  at  in  any
other way. Or they are so obvious no one noticed.

In one instance Whys were found by experts  for  six  months  on  a  certain
course without improving the flagrantly bad situation but  actually  messing
it up more until a huge real Why jumped out (the  students  had  never  been
trained on earlier levels) and the situation began to improve.

Using one Why for all situations  can  also  occur  and  fads  of  Whys  are
common.  True,  a  Why  often  applies  elsewhere.  That's  what  gives   us
technology including policy. But in any area of operation where a  situation
is very abnormal the Why is likely to be  very  peculiar  and  too  off  the
ordinary to be grasped at once.

There can be an infinity of wrongnesses  around  just  one  rightness.  Thus
there can be an infinity of wrong Whys possible with just one real Why  that
will open the door.

For the real Why does open the door. With it on a  good  situation  one  can
maintain it and with a bad situation one can improve it.

Thus the REAL WHY is the vital arrival point to which evaluation leads.

      72



THEIDEALSCENE

If a bad situation is a departure  from  the  ideal  scene  and  if  a  good
situation is attaining it or exceeding it, then the crux of  any  evaluation
is THE IDEAL SCENE for the area one is evaluating.

Viewpoint has a lot to do with the ideal scene.

To Russia a collapsed America is the ideal scene.  To  America  a  collapsed
Russia is an ideal scene.

To some have-not nations both Russia and the US competing  at  vast  expense
for the favor of a coy petty ruler is the ideal scene to that ruler.

To most other parts of the world both these major countries interested  only
in their own affairs would be an ideal scene.

So, with viewpoint the ideal scene can be "bad" or "good."

The ideal scene is not necessarily big and broad. An intelligence  evaluator
that gave the ideal scene as "a defeated enemy" on  every  evaluation  would
be very inexpert.

By CONSISTENCY the ideal scene must be one for that portion of  an  activity
for which one is trying to find the Why.

Example: (Situation: renewed activity  on  a  front  held  by  one  platoon.
Evaluation: No other points along the lines  are  active  and  a  tank  road
leads toward the front where the activity is. WHY: area being  prepared  for
a tank breakout.) IDEAL  SCENE:  an  uninhabitable  area  in  front  of  the
platoon. (Which could be done with napalm as there is a  wood  there  and  a
heavy crossfire maintained and a renewed supply of bazookas for the  platoon
if the napalm didn't work.)

Example: (Situation: a lot of silence from Plant 22. Evaluation:  no  trucks
arriving with materials, no raw materials being sent by  outside  suppliers,
suppliers irate. WHY: The accounting office forgot to pay the raw  materials
bill and the suppliers held up all further supplies.) THE IDEAL SCENE:  high
credit rating and good accounts PR  established  with  all  creditors.  (And
handling would include a recommendation for an evaluation of the  accounting
office as to why it forgot and why there is no high credit  PR  with  a  new
ideal scene for that accounting office, which might be  a  wholly  different
thing: IDEAL SCENE: an accounting office that enforces income  greater  than
outgo.)

By giving the IDEAL SCENE for every situation,  the  evaluator  is  not  led
into a fatal contempt for the competence of all work actually being done.

The ideal scene clarifies for one and all whither we are going.

But even more  important,  the  evaluation  that  includes  an  ideal  scene
postulates a win from the viewpoint of those for whom it is  being  done  or
for one's activities.

Sometimes when one gets to the ideal scene and writes it down he  finds  his
Why won't really lead to it, in which  case  he  must  get  another  Why  or
familiarize himself with the scene in general to find out what he is  trying
to send where.

In the case of an abnormally good situation one finds he has  exceeded  what
was formerly thought to be  the  ideal  scene  and  must  state  a  new  one
entirely with the WHY concerned with how to maintain it.

Anyone reading a full evaluation in proper form can better estimate  whether
the WHY and  handling  are  workable  if  the  IDEAL  SCENE  is  there.  And
sometimes it will be found that the evaluator  is  trying  to  do  something
else entirely than what everyone else thinks is a correct attainment.

Thus it is a very healthy thing to include the ideal scene. It serves  as  a
discipline and incentive for the evaluator and those executing the program.

HANDLING

Handling must be CONSISTENT with the situation, the evaluation, the Why  and
the ideal scene.

Handling must be WITHIN THE CAPABILITIES of those who will do the actions.

Handling must be WITHIN THE RESOURCES AVAILABLE.

Handling  quite  often  but  not  always  requires  a  BRIGHT  IDEA.  It  is
peculiarly true that the less the resources available the brighter the  idea
required to attain effective handling.

73



Handling must be SUPERVISED by one person who acts as a coordinator  of  the
program and a checker-offer and debug expert.

And last but most important handling must be EFFECTIVE AND FINAL.

The steps of handling are in program form. They are numbered 1-2-3, etc.  Or
A-B-C, etc.

They can be in the sequence they will be done but this is  mostly  important
when one person or one team is going to do the whole thing step by step.

These steps are called TARGETS.

Each part of the program (each TARGET) is assigned to someone to  do  or  to
get done.

      Care must be taken not to overload persons already loaded and where
this occurs

one appoints a special personnel or mission for that specific target.   t

The supervision must see that each target gets fully  done  and  no  targets
not-done and no targets half-done.

It is up to supervision to keep track of all completions on a MASTER sheet.

Supervision debugs those targets that bog or lag by finding in them  a  Why,
which may mean a rapid evaluation of that target to rephrase it  or  get  it
clarified without altering its intended accomplishment.

Supervision can reassign a target.

PROJECTS

It is expected that any complex or extensive  target  will  have  a  PROJECT
written for it by  the  person  to  whom  it  is  assigned  if  not  by  the
originator.

By completing this project the target is DONE.

Often these projects have to be passed upon by a senior before being begun.

COMPLIANCE

When the MASTER sheet shows all targets DONE (not  not-done  and  not  half-
done and not falsely reported) full situation handling can be expected.

REVIEW

When the supervisor reports all targets done, it is in  the  hands  of  fate
whether the situation will now be progressed  toward  or  attain  the  ideal
scene.

The accuracy of the data, the skill of the  evaluator,  the  correctness  of
the WHY, the competence of the supervisor and the skill of  those  executing
the targets and the willingness of those receiving the effects of  all  this
activity  (their  human  emotion  and  reaction)  determine   whether   this
evaluation approaches or attains the ideal scene.

All such evaluations should be REVIEWED as soon  as  the  actions  have  had
time to take effect.

An idiot optimism can suppose all is well and that it is needless to
review.

But if this WHY  was  wrong  then  the  situation  will  deteriorate  and  a
worsening situation will be apparent.

Thus a sharp watch has to be set. No thirst  for  "always  being  right"  or
arrogance about never being wrong must prevent an honest review.

WAS the ideal scene approached or attained?

Or was it a wrong Why and now is all Hades breaking loose?

Now we don't have just renewed insistence that the WHY was  right  and  that
the program must go in in spite of all.

We have a wrong Why.

MAGIC

IT WILL BE FOUND THAT WHERE YOU HAVE A REAL WHY PEOPLE  WILL  COOPERATE  ALL
OVER THE SCENE.

74



The only exception is where there are traitors around. But this is  an  easy
explanation, too often bought to excuse wrong Whys.

The Germans, when they found in World War II, how  ineffective  the  Italian
intelligence service was, couldn't believe it, tried to improve  it,  became
convinced they were traitors, probably shot them  in  scores  and  took  the
service over themselves. And lost Italy  even  more  rapidly.  Whatever  the
right Why was, the Germans had the wrong one. And so does any executive  who
has to shoot everybody-he just can't find the right Whys.

It is NO disgrace to find a wrong Why. It is only a  disgrace  not  to  keep
trying on and on until one does find it.  Then  the  clouds  open,  the  sun
shines, the birds pour out their souls in purest melody and the ideal  scene
is approached or reached.

So REVIEW is damnably important.

Situations have to be handled very fast.

And reviews have to be as quick as possible after effect can occur.

      WHOLE VIEW

So here you have the whole view.

The keynotes are OBSERVE, EVALUATE, PROGRAM, SUPERVISE and REVIEW.

The heart of Observe is accuracy.

The heart of Evaluate is a cool, cold knowledge of the Data Series.

The heart of Program is knowing the scene.

The heart of Supervise is getting it FULLY done.

The heart of Review is HUMILITY.

SUMMARY

If you cannot roll all this off rapidly then  misunderstood  words  in  this
series are in the way. Or one is battling with  some  outpoint  in  his  own
life.

The Data Series is for USE.

It works because it has unlocked logic.

In management one is very fortunate since he can program and handle.

In intelligence one is less fortunate as his handling can only be  suggested
and many an intelligence officer has watched a useless Battle of  the  Bulge
after he told them all about it and "they" had other  ideas.  But  the  Data
Series works in intelligence as well.

Data analysis was not developed in a  professorial  out  of  a  lost-to-the-
world tower. It was  evolved  by  attempting  to  explain  logic,  then  was
developed on one of the hottest cross-fire but successful  evaluation  posts
on  the  planet  against  a  background  of  blood,  sweat  and  tears   war
intelligence experience.

So it is itself REAL.

The key to it is handling DATA.

So here it is.

I do sincerely hope it serves you in helping to attain your ideal scene.

L. RON HUBBARD

Founder

LRH:mes.rd.nf

75



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 FEBRUARY 1972R

      Issue 11

Remimeo     REVISED 4 JULY 1977

(Revisions in this type style)

Data Series 24R

HANDLING

                           POLICY, PLANS, PROGRAMS

                         PROJECTS AND ORDERS DEFINED

The words "policy," 66plans," "programs," "projects" and "orders" are  often
used interchangeably one for the other, incorrectly.

To handle any confusions on the words and substance  of  "policy,"  "plans,"
44programs," "projects" and "orders" the following  DESCRIPTIVE  DEFINITIONS
(see Scn Logic No. 5) are laid down for our use.

POLICY.- By this is meant long-range truths or facts which are  not  subject
to change expressed as operational rules or guides.

PLANS:  Short-range  broad  intentions  as  to  the   contemplated   actions
envisaged for the handling of a broad area to remedy it or expand it  or  to
obstruct or impede an opposition to expansion. A plan is  usually  based  on
observation of potentials (or resources) and expresses a bright idea of  how
to use them. It always proceeds from a REAL WHY if it is to be successful.

PROGRAM: A series of steps in sequence to carry  out  a  plan.  One  usually
sees a program following the discovery of a Why. But in actual fact  a  plan
had to exist in the person's mind, whether written or not, before a  program
could be written. A program, thus, carries out the plan conceived to  handle
a found WHY. A plan and its program require  authorization  (or  okay)  from
the central or coordinating authority of the general activities of  a  group
before they can be invested in, activated or executed.

PROJECTS: The sequence of steps written to carry out ONE step of a  program.
Project orders often have to be written to execute  a  program  step.  These
should be written but usually do not require any approval and often are  not
generally issued but go to the person or persons who  will  accomplish  that
step of a program. Under the category of PROJECT  would  come  orders,  work
projects, etc. These are a series of GUIDING STEPS which  if  followed  will
result in a full and successful accomplishment of the program target.

ORDERS:  The  verbal  or  written  direction  from  a  lower  or  designated
authority to carry out a program step or apply the general policy.

In short:

POLICY = the rules of the game, the facts of  life,  the  discovered  truths
and the invariable procedures.

PLANS = the general bright idea one has to remedy  the  WHY  found  and  get
things up to the ideal scene or improve even that. (Approval.)

PROGRAM = the sequence of major actions needed to do the plan. (Approval.)

PROJECT = the sequence of steps  necessary  to  carry  out  one  step  in  a
program. (No approval.)

ORDERS = some program steps are so simple that they are themselves an  order
or an order can simply be a roughly written project.

76



Thus, by these definitions a data analysis would look like this:

POLICK (What brings the evaluation into existence in the first place.)

SITUATION: (Departure from or improvement of the ideal  scene  expressed  in
policy.)

DATA: (Observations leading to INVESTIGATION.)

STATISTICS: (The independent continuing survey of production or lack of
it.)

WHY- (The real reason found by the investigation.)

IDEAL SCENE: (The state of affairs envisioned by policy or  the  improvement
of even that.)

HANDLING:

A PLAN whether written in full or not based on the WHY to use the  resources
available to move the existing scene toward the ideal scene.

A PROGRAM: A sequence of broad steps to get the plan executed.

PROJECTS: Any sequence of steps ordered or written to  get  a  program  step
completed.

ORDERS: The program step itself or the verbal or written project to get  the
program step fully done.

Thus a handling could look like this:

HANDLING:

Plan: To use Bob Bartlett to replace the incompetent exec found in the WHY.

1.    Find a replacement for Bartlett. PERSONNEL.

2.    Program Bob Bartlett to get his incomplete cycles caught up. DIR OF
PERSONNEL ENHANCEMENT.

3.    Train Bob Bartlett. DIR OF TRAINING.

4.    Write Garrison Mission Orders for Bartlett. ACTION MISSION WRITER.

5.    Write recall orders for G. Zonk (the incompetent found in the WHY).
PERSONNEL.

6.    Send Bartlett to relieve Zonk. ACTION.

7.    On Zonk's return assign to bilge cleaner. PERSONNEL.

This of course is a very simple plan and simple program.

The orders are seen as "PERSONNEL," "DIR OF PERSONNEL ENHANCEMENT,"  "ACTION
MISSION WRITER," etc., at the paragraph ends. The program step itself is  an
ORDER to the person  or  unit  named  at  program  step  end.  But  IT  ALSO
AUTHORIZES THAT PERSON OR UNIT TO DO THE STEP OR  ISSUE  ORDERS  TO  DO  THE
STEP OR EVEN WRITE A PROJECT AND GET IT DONE.

77



Emorm",

That final end word on the program step is an AUTHORITY as well as being  an
order to the person or unit named.

ROUND-UP

A copy of a full program marked MASTER is placed in a folder. The folder  is
marked on the edge with the program name and number. The program  itself  is
stapled along its left edge to the inside left cover of the folder.

A "Flag Rep" is responsible for "LRH programs." A Deputy Executive  Director
or Deputy Commanding Officer is responsible for an ED's or C/O's programs.

The responsibility lies in seeing that each step is FULLY effectively DONE.

All related papers, copies of projects' orders, etc., are collected in  that
folder and as each done is reported and investigated as DONE  it  is  marked
off on the MASTER program sheet.

When all those projects or orders bred by the program steps  are  DONE  then
the PROGRAM is considered DONE.

One does not "report progress" but only DONES  and  when  something  is  NOT
done yet it is chased up  by  the  'Flag  Rep"  or  Deputy  ED  or  C/0  and
"debugged."

DEBUGGING

The word "bugged" is slang for snarled up or halted.

DEBUG is to get the snarls or stops out of it.

This itself requires an evaluation. The evaluation may be done at  a  glance
or it may take a full formal evaluation by form.

The ideal scene here is the program step DONE or even improved.

So the WHY here would be the REAL reason it was not being done  or  couldn't
be done and that may require hours to locate and sometimes days to remedy.

When "debugging" one usually finds the persons assigned the  target  already
have a "WHY" and it is usually a false Why for if it was the right  one  the
program step would get done.

Thus debugging usually begins with finding  "their  Whys"-which  is  to  say
reasons, excuses, apologies, etc. Getting these into view is a main part  of
the program step evaluation.

A project, often written, comes out of this DEBUG EVALUATION.

In extreme cases it will be found that the  whole  program  is  based  on  a
wrong WHY and rapidly needs redoing by the original authority. Example:  The
WHY found was that the JINX OFFICE WAS NOT MAKING MONEY. In doing  one  step
of the program: "3. Survey past invoices to find where money is coming  from
and why they don't get it now. MISSION," the mission sent finds Jinx  Office
was making money by the ton but it was being wasted by their  having  bought
a huge building whose rent is three times normal rental "in  the  hopes  new
subtenants would pay the rent but nobody wants the place."  Rapid  debug  is
needed because the target can't really be done. They ARE  making  money  and
they do get it now.

In such a case doing the program unearthed a new REAL WHY and scrubbed  that
program.

A super-frantic hysterical communication would be sent to the authority of
the

78



program, "New WHY found by Pgm 891 target 3 observation. Jinx Office  paying
$80,000 a quarter for skyscraper. Obvious  real  Why  ED  has  delusions  of
grandeur, is a bad business head. Suggest Pgm 891  redone  on  new  Why  and
suggest plan of mission here for instant  offload  of  this  skyscraper  and
office into proper quarters and replacement of ED." At which the 'Flag  Rep"
or Deputy ED or Deputy C/O will approach the authority for the  pgm  to  get
immediate cancellation of 891 and all program  targets  and  a  new  Program
891R based on the REAL REAL WHY.

Debug, however, is not always so dramatic. "We don't have anyone to  put  on
it" is the usual excuse as they sit lazily chatting amongst their  piled  up
dev-t.

So one evaluates the area against the program target and finds a  WHY  that,
executed as a project will get that target done.

The PERFECT DEBUG EVALUATION (a) gets the target done (b) improves the  area
(c) leaves no dregs of human emotion and reaction behind it.

Just plain screaming often works. But if one has to, there  is  a  real  WHY
there someplace that should be found, a project handed out and done.

HANDLING SUMMARY

You can find out all the SITUATIONS and WHYS  in  the  world  but  if  there
isn't a PLAN and PROGRAM and if these  are  not  DONE  fully,  then  nothing
beneficial will happen. Indeed the not-dones, half-dones and  backlogs  will
mount up (per HCO P/L 26 Jan 72, Admin Know-How 29, Executive Series 5)  and
set the whole thing a step backwards.

Bad programs and clumsy projects develop useless  traffic  (dev-t)  and  tie
people up all over the place, pull them off normal needful actions and  send
the existing scene even further from the ideal scene. They make people  very
busy but nothing beneficial is gained and as the  useless  actions  distract
from normal duties, the whole place is at risk.

Staffs subjected to  programs  that  are  not  based  on  sound  observation
evaluation, a REAL WHY and the points in Data Series  23,  become  apathetic
as they see no result.

So programs that are bad and programs that are right  but  don't  get  fully
done are alike deadly. THERE  IS  NO  SUBSTITUTE  FOR  CORRECTLY  DONE  DATA
ANALYSIS.

THERE IS NO EXCUSE FOR NOT GETTING CORRECT PROGRAMS DONE.

In this way and only in this way can one raise the existing scene toward  an
ideal scene.

Data analysis is a powerful tool. YOU CAN USE IT.

L. RON HUBBARD

Founder

Revision assisted by

Gelda Mithoff

LRH Comm Policy

Revision Project I/C

LRH:GM:ne.If/nt.nf , 1977

79



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 19 MARCH 1972

                                  Issue 11

Remimeo

Data Series 25

LEARNING TO USE DATA ANALYSIS

After one has studied data analysis he is expected to be  able  to  use  its
principles easily and swiftly,

The barriers to being able to use data analysis are, in the order of
frequency:

I .   Misunderstood words. One has not gotten the definitions of  the  words
used. This does not mean "new words." It is usually old common words. It  is
not just long words, it is more usually little  ones.  To  handle  this  one
takes each policy letter (or chapter) in turn and looks  it  over  carefully
to see what words he cannot rapidly define. To help in this one uses  an  E-
Meter and "Method 4" Word Clearing which is the method of using a  meter  to
see if-"Are there any words in this  policy  misunderstood?"  Any  upset  or
antagonism  or  boredom  felt  comes  only  from  a  misunderstood  word  or
misunderstood words.

2.    The person has himself an outpoint in his routine  thinking.  This  is
found and handled by what is called an "HC (Hubbard Consultant) List."  This
list assessed on a meter detects and handles this.

3.    Lack of knowledge of an existing or an ideal scene.  This  is  handled
by observing the existing scene directly or indirectly by  reports  and  for
the ideal, study of the basic policy  of  the  scene  which  gives  one  its
ideal, its expected products and form of organization.

4.    Not having studied the Data Series. Handled by studying it properly.

5.    Not having studied data analysis from the viewpoint of needing to
apply it.

6.    Thinking one already knows all about analyzing and  data.  Handled  by
looking  over  some  past  failures  and  realizing  they  could  have  been
prevented by a proper collection of data and analyzing it.

7.    Tossing off "reasons" personally on one's own personal area which  are
usually just excuses or justifications and not Whys. "I was too  tired,"  "I
should have been tougher," "They were just  bums  anyway,"  which  loads  up
one's own life with wrong Whys. Handled by being  more  alert  to  and  more
honest about the causes and motives of one's life and the scene,  and  doing
a better analysis.

8.    Confusing errors with outpoints. Handled by practice.

9.    Confusing outpoints with Whys. Handled by learning to observe and
better study of data analysis.

10.   Too narrow a situation. Handled by getting more data and observing
the scene more broadly.

11.   Missing "omitted data" or particles or people as a frequent outpoint.
Handled by knowing the ideal scene better. What should be there and isn't.

THE BEGINNER

When one begins to apply data analysis he is often still trying to grasp
the data

80



about data analysis rather than the outpoints in the data. Just become  more
familiar with the Data Series.

Further one may not  realize  the  ease  with  which  one  can  acquire  the
knowledge of an ideal scene. An outpoint is simply  an  illogical  departure
from the ideal scene. By comparing the existing scene with the  ideal  scene
one easily sees the outpoints.

To know the ideal scene one has only to work out the  correct  products  for
it. If these aren't getting out, then there is a  departure.  One  can  then
find the outpoints of the various types and then locate a WHY  and  in  that
way open the door to handling. And by handling one is simply trying  to  get
the scene to get out its products.

Unless one proceeds in this fashion (from product  back  to  establishment),
one can't analyze much of anything. One merely comes up with errors.

The definition and nature  of  products  is  covered  in  several  P/Ls  and
especially in HCO P/L 13 Mar 72 Establishment Officer Series No. 5.

An existing scene is as good as it gets out its products, not as good as  it
is painted or carpeted or given public relations boosts.

So for ANY scene, manufacturing or fighting a war or being a  hostess  at  a
party, there are PRODUCTS.

People who lead pointless lives are very unhappy people. Even the  idler  or
dilettante is happy only when he has a product!

There is always a product for any scene.

The analyst when he  begins  may  get  the  wrong  product.  He  may  get  a
doingness instead of something one can have. And he may  look  upon  a  half
completion or half-done thing as a completed product.

All this makes his data analysis faulty. As he can't  figure  out  an  ideal
scene, he then has nothing to compare the existing scene to. It is simply  a
matter of the cost and time involved  in  not  or  half  getting  a  product
compared to the ideal scene of  a  really  valuable  product  with  exchange
value and what it takes to get it. These two things  can  be  worlds  apart.
The trail that leads to a WHY that will close  the  gap  is  plainly  marked
with one kind or another of outpoints.  Where  the  most  and  biggest  are,
there is the WHY. Found, the real WHY and  actual  handling  will  move  the
existing toward ideal.

Hideously enough, what I say about  products  is  true.  Even  a  government
could have a product. Like "a prosperous  happy  country."  An  intelligence
agency often muffs its product such as, "a properly briefed head of  state."
But to do it the head of state would  have  to  have  a  product  concerning
other nations like, "friendly, cooperative allies which are a  help  and  no
threat," or some other product. Otherwise the agency  would  wind  up  going
straight out of the intelligence business and being required to conduct  its
business by assassination  of  foreign  notables  or  other  actions  to  do
handlings based on wrong Whys.

As there would be no product, there could not really be an ideal  scene.  If
there is no ideal scene then there is no way to compare the existing  scene.
Thus, outpoints would expose situations but no WHY would really be  possible
as there's no ideal scene to approach. One has often heard  some  agency  or
activity say, "Where the hell are we going anyway?"  Translated  this  would
be, "We haven't had any ideal scene set up for us." And translated  further,
"The policy-makers have no product in view." So they aren't going any  place
really and lack of an objective would cause them to go down and  lack  of  a
product would cause them to be miserable.

That's the way life has been running.

Parents and others often ask children, "What will you do when you grow  up?"
Or "What are you going to be?"  This  is  not  baffling  for  a  5-year-old,
perhaps, but it is a confuser for a child of 12. There are BE, DO  and  HAVE
as three major conditions of

81



existence. One must BE in order to DO and DO in order to HAVE. A product  is
the Have. It is not the DO. Most people give "Do" as  "product."  A  product
is a  completed  thing  that  has  exchange  value  within  or  outside  the
activity.

If one asked a 12-year-old, "What product are you going  to  make  when  you
grow up?" he'd likely give you the  exchange  reward  as  the  answer,  like
"money." He has omitted a step. He has to have a  product  to  exchange  for
money.

To "make money" directly he'd have to be  the  Secretary  of  the  Treasury,
superintendent of the mint or a counterfeiter!

Only if you cleared up product and exchange  with  him  could  he  begin  to
answer the question about what's what with growing up.

Let's say this is done and he says  he  is  set  on  making  photographs  of
buildings. The DO now falls into line-he'd have to photograph  things  well.
The BE is obviousarchitectural photographer. The exchange  of  architectural
photographs for salary or fee is feasible if he is good.

So now we find he is a poor boy and no chance of schooling  or  even  a  box
camera. That's the existing scene.

The ideal scene is a successful architectural photographer  making  pictures
of buildings.

You see the gap between the existing scene and the ideal scene.

Now you can follow back the outpoints and get a WHY.

It isn't just that he's poor. That's no WHY as it  opens  no  doors  to  get
from existing scene to ideal scene.

We investigate and find his "father" is very religious but an alcoholic  and
that the boy is illegitimate and his "father" hates his guts.

So we find a WHY that his "father," much less helping him, is not  about  to
let him amount to anything whatever ever.

This opens a door.

Handling often requires a bright idea. And we  find  the  local  parson  has
often shown interest in the boy so an obvious handling is to get the  parson
to persuade the "father" to let the boy apprentice in the local photo  store
and tell the boy what he has to do to make good there.

Situations cannot be handled well unless a real WHY is found.

And a real WHY cannot be found unless the product  is  named  and  an  ideal
scene then stated. This compared to the existing scene gives us, really  the
first outpoint.

In going the other direction, to find a WHY of sudden improvement,  one  has
to locate poor existing scenes that suddenly leap up  toward  ideal  scenes.
This is done by locating a high product period (by stats or other  signs  of
production) and comparing IT as  an  ideal  scene  to  the  existing  scenes
before it (and just after if there was a slump) and looking into that for  a
WHY. But one is looking for pluspoints. And these lead to  a  real  WHY  for
the prosperity or improvement.

A "Who" will often be found. Like "James  Johnny  was  shop  foreman  then."
Well, he's dead. So it's not a Why as  it  leads  nowhere.  What  did  James
Johnny DO that was different? "He got out products" leads nowhere.  We  keep
looking and we find he had a scheduling board and really kept it  up-to-date
and used it as a single difference. Aha "The WHY is  a  kept  up  scheduling
board!" The handling is to put a clerk on doingjust  that  and  hatting  the
current foreman to use it or catch it. Result, up go the stats  and  morale.
People can look at it  and  see  what  they're  producing  today  and  where
they're at!

82



So not all WHYs are found by outpoints. The good situations  are  traced  by
pluspoints.

If the high peak is current, one has to find a Why, in the same way, to
maintain it.

STANDARD ACTION

A beginner can juggle around and go badly adrift if he doesn't follow the
pattern:

1.    Work out exactly what the (person, unit, activity) should be
producing.

2.    Work out the ideal scene.

3.    Investigate the existing scene.

4.    Follow outpoints back from ideal to existing,

5.    Locate the real WHY that will move the existing toward ideal.

6.    Look over existing resources.

7.    Get a bright idea of how to handle,

8     Handle or recommend handling so that it stays handled.

This is a very sure-fire approach.

If one just notes errors in a scene, with no product or ideal with which  to
compare the  existing  scene,  he  will  not  be  doing  data  analysis  and
situations will deteriorate badly because he is finding wrong Whys.

THINKING

One has to be able to think with outpoints. A crude way of  saying  this  is
"learn to think like an idiot." One could also add "without  abandoning  any
ability to think like a genius."

If one can't tolerate outpoints at all or confront them one can't see them.

A madman can't tolerate pluspoints and he doesn't see them either.

But there can be a lot of pluspoints around and no production. Thus one  can
be told how great it all is while the place  edges  over  to  the  point  of
collapse.

An evaluator who listens to people on the scene and takes their WHYs runs  a
grave risk. If these were the Whys then things would be better.

A far safer way is to talk only insofar  as  finding  what  the  product  is
concerned and investigating.

One should observe the existing scene through data or through  observers  or
through direct observation.

An evaluator often has to guess what the WHY might  be.  It  is  doing  that
which brings up the phrase "Learn to think like an idiot." The WHY  will  be
found at the end of a trail of outpoints. Each one  is  an  aberration  when
compared to the ideal scene. The biggest idiocy which then explains all  the
rest and which opens the door to improvement toward the ideal scene  is  the
WHY.

One also has to learn to think like a genius with pluspoints.

Get the big peak period of production (now or in the past).  Compare  it  to
the existing scene just before.

Now find the pluspoints that were entered in. Trace these and you arrive  at
the WHY as the biggest pluspoint that opened the door to improvement.

83



But once more one considers resources available and has to get a bright
idea.

So it is the same series of steps as above but with pluspoints.

VETERAN

A veteran evaluator can toss off evaluations  in  an  hour  or  two,  mainly
based on how long it takes him to dig up data.

A big tough situation may require days and days.

Sometimes luck plays a role in it. The data that  was  the  key  to  it  was
being sat on by someone not skilled in the subject and who had  no  idea  of
relative importances. Sometimes  the  datum  pops  up  like  toast  from  an
electric toaster. Sometimes one has it all wrapped up and  then  suddenly  a
new outpoint or pluspoint  appears  that  changes  the  whole  view  of  the
evaluator.

Example: A firm's blacklist has just been published in a newspaper or  as  a
scandal. Evaluator: "They do what?" in a voice of  incredulity.  "They  ship
their security files to Memphis in open crates? Because they are  saving  on
postage?" Wrath could dangerously shoot a wrong somebody. The idiocy is  not
believable. But a new datum leads to  personnel  who  hired  a  reporter  in
disguise because it no longer requires or looks up references.

Example: Situation where stats soared. "They  used  schoolchildren  to  pass
out literature?" That's just a point but a strange one. Turns out they  also
hired a cashier and had NEVER HAD ONE ON POST BEFORE! Why?  Nobody  to  take
money.

Man gets dedicated to his own pet theories very  easily.  A  true  scientist
doesn't fixate on one idea. He keeps looking until he finds  it,  not  until
his pet theory is proven. That's the test of an evaluator.

STATISTICS

One always runs by statistics where these are valid.

Statistics must reflect actual desired PRODUCT. If they do not they are  not
valid. If they do they give an idea of ideal scene.

From a statistic reflecting the  desired  products  one  can  work  out  the
departure from the ideal scene.

A backlog of product production must reflect in a  stat.  As  a  backlog  is
negative production.

From such tools an evaluator can work.

The use of data analysis is relatively easy compared to learning  a  musical
instrument.

You have the hang of how it is done.

So why not just be a veteran right now and DO IT.

L. RON HUBBARD

Founder

LRH:nt.mes.rd.nf

84



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 JUNE 1972

Remimeo

Data Series 26

Establishment Officer Series 18

LENGTH OF TIME TO EVALUATE

It will be found that long times required to do an evaluation can be traced
each time to AN INDIVIDUAL WHY FOR EACH EVALUATOR.

These, however, can be summarized into the following classes of Whys:

This list is assessed by a Scientology auditor on a meter. The handling
directions given in each case are designations for auditing actions as done
by a Scientology auditor and are given in the symbols he would use.

1.    Misunderstood words.

(Handled with Word Clearing [Method I and Method 4 of the Word Clearing
Series].)

2.    Inability to study and an inability to learn the materials.

(Handled by a Study Correction List HCOB 4 Feb 72.)

3.    Outpoints in own thinking.

(Handled by what is called an HC [Hubbard Consultant] List HCOB 28 August
70.)

4.    Personal out-ethics.

(Use P/L 3 May 72 by an auditor. Has two listing and nulling type lists.)

5.    Doing something else.

(2-way communication on P/L 3 May 72 or reorganization.)

6.    Impatient or bored with reading.

(Achieve Super-Literacy. LRH Executive Directive 178 International.)

7.    Doesn't know how to read statistics so doesn't know where to begin.

(Learn to read stats from Management by Stat P/Ls.)

8.    Doesn't know the scene.

(Achieve familiarity by direct observation.)

9.    Reads on and on as doesn't know how to handle and is stalling.

(Get drilled on actual handling and become Super- Literate.)

85



10. Afraid to take responsibility for the consequences if wrong.

(HCOB 10 May 72 Robotism. Apply it.)

11. Falsely reporting.

(Pull all withholds and harmful acts on the subject.)

12. Assumes the Why before starting.

(Level IV service facsimile triple auditing.)

13. Feels stupid about it.

(Get IQ raised by general processing.)

14. Has other intentions.

(Audit on L9S or Expanded Dianetics.)

15. Has other reasons not covered in above.

(Listing and nulling to blowdown F/N item on the list.)

16. Has withholds about it.

(Get them off.)

17. Has had wrong reasons found.

(C/S Series 78.)

18. Not interested in success.

(P/L 3 May 72 and follow as in 14 above.)

19. Some other reason.

(Find it by 2-way comm.)

20. No trouble in the first place.

(Indicate it to person.)

When this list is assessed one can easily spot why the person is having
trouble with the Data Series or applying it. When these reasons are
handled, one can then get the series restudied and word cleared and
restudied and it will be found that evaluations are much easier to do and
much more rapidly done.

L. RON HUBBARD

Founder

LRH:ne.rd.nf

86



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 25 MAY 1973

Remimeo

Data Series 27

SUPPLEMENTARY EVALUATIONS

(Starrate all evaluators)

If one knows how to evaluate an existing scene  correctly  (which  means  by
the purest and most exacting application of the Data Series) and still  does
not achieve an improvement toward the ideal scene,  several  things  may  be
the reason.

First amongst these  is  of  course  poor  evaluation.  Second  would  be  a
considerable disagreement in the evaluated scene with  the  WHY,  especially
if it is interpreted as condemnatory. Third would be  a  failure  to  obtain
actual compliance with the  targets  in  the  evaluation.  Fourth  would  be
interference points or areas  which,  although  affecting  the  scene  being
evaluated, are not looked at in relationship to it.

In any scene being evaluated, there are two areas which are  not  likely  to
get much attention from the evaluator as they may not be remarked on in  any
of the reports or data being used in his  evaluation.  These  two  types  of
area are (1) LOCAL ENVIRONMENT  and  (2)  RELAY  POINTS  AND  LINES  BETWEEN
POLICY AND ORDER SOURCE AND THE SCENE ITSELF.

These two areas may be looked at as (1)  the  plane  upon  which  the  scene
exists and (2) the upper stages of authority under which the scene reacts.

THE LOCAL ENVIRONMENT

The surrounding area to the scene being evaluated in the matter or a  person
would be the general third dynamic or other  dynamic  in  which  he  or  she
lives his day-to-day life and which  influences  the  person  and  therefore
influences his hat or post. The search for the WHY which exactly causes  Joe
or Joanna to fail to hold post or wear a hat and  which  when  handled  will
greatly better Joe or Joanna may well be their reactions to environments  at
their level and which may be or may  not  be  there  with  them.  Family  or
distant friends, not visible to an evaluator, or the work environment or on-
the-job friends of Joe or Joanna may greatly influence Joe or Joanna.

This might prove too inviting for the evaluator  to  blame  environment  for
the state of the existing scene and a caution'would have to  be  introduced:
that any WHY must lead to a bettered scene and must not just explain it.

EVAL BY RELAY PTs.

Thus, in such a problem it should be understood that one  has  TWO  existing
scenes, one, the person and two,  his  environment;  that  they  interrelate
does not make them just one scene. Thus two evaluations about Joe or  Joanna
are possible, each with its program. To go about it otherwise is  likely  to
prove as unsuccessful as the original evaluation of  the  person.  Life  and
orders are reaching Joe  or  Joanna  through  relay  points  which  are  not
ordinarily taken into consideration. Thus those areas should  be  separately
evaluated. Usually, in the case of a person,  something  would  have  to  be
done to those areas, on  the  same  plane  as  the  person,  by  the  person
himself. So the program might include  what  the  person  himself  could  do
about them.

The local environment of a material object, such as a machine or  an  office
or a vehicle, may also be evaluated as well as the machine or the office  or
vehicle itself.

In short, there are relay points of difficulties  that  produce  situations,
on the same plane as the person or thing being  evaluated.  And  these  make
ADDITIONAL evaluations possible and often profitable  to  the  evaluator  in
terms of bettered ideal scenes. Yet at  first  glance,  or  using  only  the
usual reports, it may seem that there is only  one  situation  such  as  the
person himself.

87



Completely in the interests of justice, it is unfair to put  down  a  target
in some greater area situation like "Remove Joe." It may well be that  stats
did go down when Joe was appointed to a post. Well, that  may  be  perfectly
true. But by only then evaluating Joe and not  the  greater  zone  of  Joe's
personal scenes, one may very well come up with a very wrong and abrupt  and
unjust target. WHO in other words, when found, may not solve  the  scene  at
all even when one only targets it as "specially train"  or  "audit"  without
removal. There may be another scene that is having an effect on  Joe  which,
if not evaluated properly with a  proper  program  of  its  own,  will  make
nonsense out of any program about Joe himself related only to  his  post  or
position. Another scene may be relaying fatality to Joe which  if  unhandled
will unsuit him to any other post of any other kind.

Thus Joe and Joanna would have, each of them, TWO or more  full  evaluations
possible. What the person is failing at or not doing on the job may  have  a
plain enough WHY that can be corrected by programming and moved to an  ideal
scene or at least toward it. What is hitting the person at an  environmental
or familial or social  level  might  be  an  entirely  different  situation,
requiring its own evaluation, with a proper  WHY  and  program  for  Joe  or
Joanna to carry out themselves or even with some help from others.

In a broader case, we have, let us say, an organization or division that  is
in a situation. One, of course, can evaluate it as itself, finding a  proper
WHY and a nice bright idea and a program'. And one  can  also  do  a  second
evaluation of the local  environment.  This  might  be  the  society  or  an
adjacent division or even another organization. And this  will  require  the
location of a situation and finding its WHY and working  out  a  program  to
handle that can be done by the org or the division itself or with help  from
outside.

The local environment outside the scene being evaluated  is  then  a  proper
subject for another evaluation.

It is a serious error to only evaluate the  local  environment  as  all  too
often the person or org or division  will  insist  that  that  is  the  ONLY
situation and also that it  is  totally  beyond  any  remedy  by  their  own
actions. Thus, if the evaluator is going to evaluate the  local  environment
of a subject that is in a situation, he does it AFTER he has  evaluated  the
subject on its own ground totally.

EVALUATION OF ECHELONS

On any command or communication channel there are always  a  certain  number
of points extending from source through  relay  points  down  to  the  final
receipt or action point. These may be very numerous. Some may be beyond  the
authority of any evaluator. But each is capable of having ITS OWN  SITUATION
that will cause an evaluation of the receipt or action point to fail.

These can be called "echelons"  or  step-like  formations.  The  receipt  or
action point that is to comply finally with the program may be  the  subject
of hidden sources of effect in the relay points of any program or order.

Thus, as in the case of a dangerous decline of some activity  somewhere,  an
evaluator has several evaluations possible and probably necessary.

It would be, by experience, a severe error to  try  to  evaluate  all  these
different scenes (such as many echelons each in a  different  area)  in  one
evaluation and find a WHY for the lot as one is attempting to find a  single
WHY for several different scenes in  different  places  which  violates  the
strict purity of evaluation procedure.

One may find the exact and correct WHY for the point  of  action  and  do  a
splendid program only to find that somehow it  didn't  come  off  or  didn't
last. Yet it was the right WHY for that  scene.  Hidden  from  view  is  the
influence on that  scene  from  one  or  more  upper  echelons  which  have,
themselves, an individual situation and need their own  WHY  and  their  own
program. Only then can the influence on the action point  be  beneficial  in
its entirety.

There is a system by which this is done.

1.    One recognizes that there is a situation in  an  area  which  has  not
responded well to previous evaluation or  has  not  maintained  any  benefit
received very long.

88



2.    One realizes that there are several,echelons above the point being
evaluated.

3.    One draws these points without omission. This makes a  sort  of  graph
or command chart. It includes every command or comm relay  point  above  the
level of the point being evaluated.

4.    The points, if any, BELOW the point under consideration as in I above
are then added to the chart below it.

5.    One now undertakes a brief study of EACH of  these  points  above  and
below to see if any have a situation of its own  that  could  influence  the
success or failure of the original point evaluated as in I above.

6.    One does a full separate evaluation of each of  these  echelon  points
where any situation seems to exist. Each of the evaluations done  must  have
its own local situation, WHY and program. Care is taken not to  evaluate  "n
o- situations." Care is also  taken  to  keep  this  SERIES  of  evaluations
consistent with the main idea of remedying I above.

7.    The evaluations are released as a series and executed as feasible.

In  doing  such  a  series,  brand  new  data  may  leap  out  as   to   the
interrelationship of all these relay points  and  this  may  bring  about  a
recommendation for a change of organization requiring new policy.  But  this
would be another evaluation entirely as it is in  effect  an  evaluation  of
basic organizational policy and may even require  that  tech  be  issued  or
withdrawn.

Take a case where the area which has not bettered or sustained a  betterment
has in actual fact two echelons below it and six above.  The  area,  let  us
say, is a continental management office of  an  international  hotel  chain.
Below it are its state offices and below that the hotels on that  continent.
Above  it  is  the  international  comm  relay  center,  the   international
headquarters executive at international  headquarters  for  that  continent,
above that the international management organization, above that  the  chief
executive of the  international  management  organization,  above  that  the
advisors to the board and above that the board itself.

By drawing these out as  a  series  of  echelons  one  sees  that  there  is
potentially  a  series  of  eight  evaluations  in  addition  to  the   main
evaluation  of  that  continental  office  which  is  where  the   situation
originally was. By scanning over all these eight  other  influencing  areas,
one may find one or more of them which have situations of real influence  on
the original evaluation subject.

One then evaluates separately and handles separately WHILE  STILL  GOING  ON
HANDLING THE ORIGINAL SUBJECT.

One can then also do  the  local  environment  evaluation  of  the  original
subject if there seems to be a situation there.

No evaluation is done where there is no situation. But one should assert  in
a covering note to the series that there are  no  known  situations  in  the
remaining points.

Doing a series of evaluations  and  local  environment  evaluations  can  be
extremely fruitful only so long as one realizes that they comprise  separate
situations which only by their influence are preventing an ideal scene  from
being achieved in the original area where betterment cannot be  attained  or
maintained.

Supplementary evaluations, when necessary and when done, can rescue  a  long
series of apparently  fruitless  evaluations  of  a  subject  and  move  the
evaluator himself toward a more ideal and happier scene of success.

L. RON HUBBARD

Founder

LRH:sr.rd.nf

89



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 19 SEPTEMBER 1973

      Issue IR

Remimeo     REVISED 22 JUNE 1975

Data Series 28R

(Data Series 28 is cancelled because it could be misinterpreted and I did
not authorize its release. The data contained in it would have been written
by me as a P/L had I considered them vital to evaluation.)

CHECKING EVALS

In checking over the evaluations of  others,  there  is  no  substitute  for
following the hard and fast rule of insisting upon

a.    Purity of evaluation

b.    Consistency

C.    Workability

d.    Authenticity of the data.

There are no small rules. To quote one  of  these,  "The  situation  is  the
direct opposite of the ideal scene." This is not  necessarily  true  and  is
not a precise definition. A situation is the most major departure  from  the
ideal scene. That's purity by definition.

A Why is not necessarily opposite to an ideal scene. But it is of  the  same
order of thing.

Example: Stat of Income Divided by Staff sunk to 150.

Ideal scene: Staff producing under competent management.

Sit: Execs not coming to work.

Why: The ED has forbidden any exec to be paid.

If you look this over it is consistent. But it is not reversals or
opposites.

The stat found the area, the ideal scene was easy. Search of data found  the
sit as the biggest departure. Further search found the Why.  Further  search
and knowledge of the existing scene would get a  bright  idea  (which  would
not be sacking the ED who is probably the only one coming to work, but  more
likely getting the ED and execs into a hello-okay session and resolve  their
hates and ordering execs be paid at once).

THE COMMON BUG

(Orders of Day Item 24 Feb 75)

"I found that getting the sit was a common bug. Evidently people don't do  a
real stat analysis and get an ideal scene, look for its  furthest  departure
and get the sit and then look for data and find the Why.

"There are many ways to go about it but the above is easy, simple and
foolproof.

"It would look like this on a worksheet:

90



"GDS analysis to find the area and a conditional guess.

"Ideal scene for that area.

"Biggest depart from it for the SITUATION.

"Stats Data Outpoint counts Why Ethics Why WHO Idealscene Handling Bright
idea.

"If you're very good your GDS analysis will get confirmed by data.

"The real Why opens the door to handling.

"And you can handle.

"This doesn't change eval form. It's just a working model.

"All good evals are very consistent-all on same railroad track. Not pies,
sea lions, space ships. But pies, apples, flour, sugar, stoves.

"I think evaluators get dispersed and Q and A with data, lacking any
guideline. And so take a near forever.

"Last one I did, the GDS analysis gave the whole scene and then it got
confirmed, all on the same outline as above. That org is still booming!

"It took 61/2 hours, including doing the majority of the targets!

"It doesn't take days or weeks, much less months!

"It takes hours."

L. RON HUBBARD

Founder

LRH:nt.nf Copyright ID 1973, 1975

91



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 19 SEPTEMBER 1973-1

Remimeo     ADDITION OF 20 MARCH 1977

Data Series 28R-1

                            CHECKING EVALUATIONS

                                  ADDITION

(In January 1976 LRH began work on sorting out the fact that evaluators
were not evaluating situations. What follows is taken from LRH notes.)

MULTIPLE SITUATIONS

"Somebody has evaluators on a 'whole org' kick  where  the  evaluation  must
handle the whole org. Evidence of this is 'the Why' lately  was  defined  as
something that handled all outpoints. The initial step of the stat  analysis
to find the area and then find its situation and its Why is not being  done.
Hence individual  org  situations  do  not  get  spotted  or  evaluated  and
evaluations take forever."

(One of  the  org  evaluations  submitted  to  LRH  was  returned  with  the
following note.) "This evaluation has almost  no  outpoints  in  it.  Almost
every paragraph is a situation requiring evaluation.

"A situation is something that affects stats or survival of the org.

"An outpoint is something that contributes to a situation and should not  be
in the situation area.

"A Why is the real basic reason for the situation which, being found,  opens
the door to handling.

"Evaluators who are trying  to  embrace  the  whole  org  of  world  in  one
evaluation are missing all the real situations or landing only  in  Division
Seven."

(The following is a despatch  written  by  LRH  in  May  1976  regarding  an
earlier evaluation done on an org which LRH was evaluating at the time.)

"That  evaluation,  that  was  to  pull  in  the  CO,  had  one   of   these
'philosophical Whys,' 'The CO and HCO have prevented execs from  being  made
by omitting actions that  would  accomplish  this  (i.e.  choosing  suitable
ones, hatting, training and apprenticing them) which has led  to  blows  and
19th century solution of transfers and removals and eventually no  execs  at
all.' That's all fine but you can ask of it, 'How come they're  doing  thatT
so it couldn't be a bottom level Why. Anytime you can ask a 'How  comeT  you
haven't got a Why, you have a situation.

"Just an off-the-cuff Why better than that  would  be  'Day  and  Foundation
staff are the same, allowing no time to hat and train'  or  another,  'There
is no HCO staff' or another 'Only a handful make the GI and the rest of  the
org is considered superfluous'-yet none of these are the Why either  as  you
can also again ask 'How comeT And the org is delivering.

"So this is what I am working on now. The new type of evaluation would use
telex

92



lines and FRs to ask a lot of questions AFTER one had found the real
situation. It would go: Find the situation area from stats, find the
situation from data files, get some sort of a Why (that will now become the
situation) and burn the telex lines or send a mission from the FOLO to find
out how come that situation. You would then get the real Why and could do a
program. This would make evaluations pretty real!"

Compiled from LRH notes of January 1976 and May 1976

L. RON HUBBARD

Founder

Assisted by

Louise Kelly

Flag Mission 1710 I/C

LRH:LK:lf.nf Copyright 10 1973, 1976, 1977

93



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 19 SEPTEMBER 1973-2

Remimeo     ADDITION OF 2 OCTOBER 1977

Data Series 28R-2

MULTIPLE SIT EVAL FORMAT

For multiple situation evaluations, the following is the correct format to
use in the final evaluation write-up:

SITUATION ONE

POLICY.

SITUATION.

S TA TS:

DATA:

OUTPOINT COUNT.

PLUSPOINT COUNT. (As applicable)

WHE.

ETHICS WHY. (As applicable)

WHO: (As applicable)

IDEAL SCENE:

HANDLING:   (For a multiple sit eval, the plan is written here,
e.g."HANDLING: Find and train executives...." etc.)

SITUATION TWO

POLICK

(And so on, as per above)

The above format is repeated for as many situations as were evaluated.

Then:

PROGRAM

1.    (First target)

2.    (Second target)

And so on.

The program targets to specifically handle the Whys of each situation
should be divided up as follows:

94



SITUATION ONE TARGETS

4.    (Or whatever number, in sequence, after any beginning general
targets) Make up a list....

5.    Go through the org....

6.    Go and see. .

(Etc.)

SITUATION TWO TARGETS

19.   (Or whatever number, in sequence, following the Sit One targets) See
that....

20.   Call on ....

21.   Get the ....

(Etc.)

One does this for as many situations as were evaluated.

When writing and issuing a set of program orders or mission orders separate
to the eval itself, the usual program or mission order format is used,
except the operating targets get divided up as shown above.

Compiled from AO 536-10 and FMO 1672 as the proper format per direction
from LRH as given in ED 270 FB

L. RON HUBBARD

Founder

Assisted by

S. Hubbard

AVU Verifications Chief

LRH:SH:pat.nf , 1977

95



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 30 SEPTEMBER 1973

                                   Issue I

Remimeo

Data Series 29

OUTPOINTS, MORE

1 recently surveyed a number of possible new outpoints. Almost all  of  them
were simply the basic outpoints in a different guise and needed  no  special
category.

However, two new outpoints did emerge that are in addition to the basic
number.

The new outpoints are

ADDED TIME. In this outpoint we have the reverse of dropped time.  In  added
time we have, as the most common example, something taking  longer  than  it
possibly could. To this degree  it  is  a  version  of  conflicting  data  =
something takes three weeks to do but it is reported as taking  six  months.
But added time must be called to attention as an outpoint in its  own  right
for there is a tendency to be reasonable about it and not see that it IS  an
outpoint in itself.

In its most severe sense, added time becomes a very serious  outpoint  when,
for example, two or more events occur at the same moment involving,  let  us
say, the same person who could not have experienced both.  Time  had  to  be
ADDED to the physical universe for the data to be true. Like this:  "I  left
for Saigon at midnight on April 2 1 st, 1962, by ship from  San  Francisco."
"I took over my duties at San Francisco on April 30th, 1962." Here  we  have
to add time to the physical universe for both events  to  occur  as  a  ship
would take two or three weeks to get from San Francisco to "Saigon."

Another instance, a  true  occurrence  and  better  example  of  added  time
happened when 1 once sent a checklist of actions it would take  a  month  to
complete to a junior executive and received compliance in full in  the  next
return mail. The checklist was in her hands only one  day!  She  would  have
had to add 29 days to the physical universe for the compliance report to  be
true. This is also dropped time on her part.

ADDED  INAPPLICABLE  DATA.  Just  plain  added  data  does  not  necessarily
constitute an outpoint. It may be someone being thorough. But when the  data
is in no way applicable to the scene or situation  and  is  added  it  is  a
definite outpoint.

Example: Long, long reams of data on an eval  write-up,  none  of  which  is
giving any clue to the outpoints on the  scene.  By  actual  survey  it  was
found that the person doing it  did  not  know  any  Why  (not  having  used
outpoints to find it) and was just stalling.

Often added data is put there to cover up neglect of duty  or  mask  a  real
situation. It certainly means the person is obscuring something.

Usually added data also contains other types of outpoints like wrong  target
or added time.

In  using  this  outpoint  be  very  sure  you  also  understand  the   word
inapplicable and see that it is only an outpoint if the.  data  itself  does
not apply to the subject at hand.

There is more about another already named outpoint:

WRONG SOURCE. This is the opposite direction from wrong target.

96



An example would be a president of the  United  States  in  1973  using  the
opinions and congratulations of  Soviet  leaders  to  make  his  point  with
American voters.

A more common version of this, not unknown in  intelligence  report  grading
for probability, would be a farmer in Iowa reporting  a  Mexican  battleship
on Mud Creek. The  farmer  would  be  a  wrong  source  for  accurate  naval
reports.

A private taking an order from a sergeant that countermands an order he  had
from a lieutenant would be an example of wrong source.

What is sometimes called a  "Hey  You"  "organization"  is  one  that  takes
orders from anyone = a repeating outpoint of wrong source.

There are many examples of this outpoint. It must  be  included  as  a  very
important outpoint on its own. It produces a chaos of  illogical  ideas  and
actions when present.

PLUSPOINTS

CORRECT TIME or the expected time period is a pluspoint.

ADEQUATE DATA is a pluspoint.

APPLICABLE DATA is a pluspoint.

CORRECT SOURCE is a pluspoint.

L. RON HUBBARD

Founder

LRH:nt.jh.nf

97



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 30 SEPTEMBER 1973

                                  Issue 11

Remimeo

Data Series 30

SITUATION FINDING

There is an ironbound rule in handling things:

                      WHERE YOU FIND OUTPOINTS YOU WILL

                        THERE ALSO FIND A SITUATION.

If several outpoints come to view in any scene (or even one),  if  you  look
further you will find a situation.

There is not any real art to finding situations if you can see outpoints.

The sequence is simple. (1) You see some  outpoints  in  a  scene,  (2)  you
investigate and "pull a  few  strings"  (meaning  follow  down  a  chain  of
outpoints) and (3)  you  will  find  a  situation,  and  (4)  then  you  can
evaluate.

Statistics are leaders in pointing the way. They should be X, they  are  not
X. That is conflicting data. Behind that you will find a situation.

If anyone has any trouble finding situations then one  of  three  things  is
true (a) he cannot recognize outpoints when he sees them, (b)  he  does  not
have any concept of the ideal scene or want it, or (c) he does not know  how
to pull strings, which is to say ask for or look for data.

On the positive side,  to  find  situations  one  has  to  (A)  be  able  to
recognize outpoints, (B) has to have some idea of an ideal  scene  and  want
it, and (C) has to be able to "pull strings."

Evaluation is very much simpler when  you  realize  that  the  art  lies  in
finding situations. To then find a  Why  is  of  course  only  a  matter  of
counting outpoints and recognizing what (that can be handled)  is  retarding
the achievement of a more ideal scene.

REASONABLENESS

One often wonders why people  are  so  "reasonable"  about  intolerable  and
illogical situations.

The answer is very simple: they cannot recognize  outpoints  when  they  see
them and so try to make everything seem logical.

The ability to actually see an outpoint for what it  is,  in  itself  is  an
ability to attain some peace of mind. For one can realize it is what it  is,
an outpoint. It is not a matter for human emotion  and  reaction.  It  is  a
pointer toward a situation.

The moment you can see this you will be able to handle life a lot better.

The human reaction is to REACT! to an outpoint. And  then  get  "reasonable"
and adopt some explanation for it, usually untrue.

You can safely say that "being reasonable" is a symptom of being  unable  to
recognize outpoints for what they  are  and  use  them  to  discover  actual
situations.

NATIVE THINK

It may come as a surprise  or  no  surprise  at  all  that  the  ability  to
evaluate as given in this Data Series is not necessarily native to a being.

98



In a native state a being detests illogic and rejects it. He seldom uses  it
for any other purposes than humor or showing up a rival in debate as a  fool
or using it in justice or a court of law to prove the other  side  wrong  or
guilty.

A being is dedicated to being logical and he does, usually, a wonderful job
of it.

But when he encounters illogic he often feels angry or frustrated or
helpless.

He has not, so far as I know, ever used illogic as a systematic tool for
thinking.

Certain obsolete efforts  to  describe  Man's  thinking  processes  stressed
"associative thought" and various other mechanisms  to  prove  Man  a  fully
logical "animal." The moment they tried to deal with illogic  they  assigned
it to aberration and sought drugs, tortures or executions that  would  "cure
it." None of them ever thought of  using  illogic  as  a  tool  of  rational
thinking! Thus they did not  advance  anyone's  intelligence  and  conceived
intelligence as unchangeable and fixed.

The only Greek school of philosophy that dealt with illogic was the  Sophist
school. But even they had no real idea of the illogic.  They  were  employed
by politicians to make their political acts seem reasonable!

Even humorists have no real idea of illogic.  Reading  their  ideas  of  the
theory of humor shows them to be off the mark. They don't really  know  what
is "funny."

Laughter is rejection, actually.

And humor you will find usually deals with one or another  outpoint  put  in
such a way that the reader or audience can reject it.

The groan of most humorists is that too often their  hearers  go  reasonable
on them. PAT. "Who was that hobo I saw you with  last  night?"  MIKE:  "That
wasn't no oboe, that was my fife." LISTENER (puzzled): "But maybe it  was  a
very slender hobo."

The tendency of a being is to try to keep it reasonable, logical,  rational.
And that is of course a very praiseworthy impulse or  all  life's  endeavors
might unhinge.

The fear of being illogical is a secret fear of being crazy or insane.  (Not
an idle fear when psychiatry was roaming around  loose.)  Or  at  the  least
being thought a fool or dullard or at the very  very  least,  unworldly  and
uneducated.

To evaluate and be a fine evaluator is to be able to prevent a slump  toward
a painful collapse. And to be able to  steer  the  way  from  the  non-ideal
present to the ideal future.

A person who feels queasy about his  sanity  really  doesn't  dare  look  at
outpoints or confront and use illogic. Yet it is  the  way  to  full  sanity
itself.

The ability to evaluate puts one at cause over both the mad  and  ideal.  It
places a being at a height it is unlikely he has ever before enjoyed in  the
realm of commanding the situations of life.

Evaluation is a new way to think.

It is very worthwhile to acquire such an ability as it  is  doubtful  if  it
ever before has been achieved.

L. RON HUBBARD

Founder

LRH:ntjh.nf

99



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 25 NOVEMBER 1973

      Issue I

Remimeo     CORRECTED AND REISSUED 17 MAY 1974

Data Series 31

FINAL TARGETS

The first, foremost and most usual reason evaluations fail  is  because  the
programs to handle are not done.

The evaluator, with all the study for an ideal scene, the exhaustive  search
for data and the collection and count of outpoints and pluspoints, with  the
discovery thereafter of the right Why and the brightest of ideas  to  handle
may yet be totally defeated by the simple fact that no one  ever  chases  up
the target execution and gets the program really and honestly DONE.

He can even  have  someone  who  is  responsible  for  getting  his  program
executed only to  find  they  are  themselves  issuing  additional  or  even
contrary orders. Or even issuing whole new programs which have  no  relation
to evaluation at all.

Circumstances have been found where  a  person  with  the  duty  of  getting
targets done was so deficient in the ability to confront  that  he  accepted
any excuse at all and was even pushed over into other subjects.  The  remedy
for this of course is HCOB 21 Nov 73, "The Cure of Q &  A,  Man's  Deadliest
Disease."

It can be so bad that persons entrusted with target execution did  not  even
speak to or approach any person who had a target to do while  not  reporting
at all or reporting marvelous progress with the program!

So, sad to have to relate, it is not enough  to  be  a  fantastic  and  able
evaluator. If the program is never truly done, the evaluation  is  merely  a
mental exercise.

The ability to supervise and obtain cooperation and execution  is  mandatory
for the skill of any evaluator.

HCO P/L I Sept 73, "Admin Know-How No. 30" and HCO  P/L  15  Oct  73,  Admin
Know-How Series 31, "Administrative Skill," give the evaluator some  of  the
additional data he needs to obtain execution of his programs.

One can say right here that the thought,  "Oh  well,  I'm  just  a  sort  of
technician here and it's really not up to me to RUN things. I just  evaluate
and it's up to 'them' to see that they carry it  out,"  is  very  likely  to
occur.

But if one's repute as an evaluator is to be established, it will come
about because

THE EXISTING SCENE MOVED UP MARKEDLY TOWARD OR BECAME THE IDEAL SCENE.

If that does not occur, then seniors or workers don't blame the  supervisors
or communicators. They blame  the  evaluator.  "Oh  him!  He  evaluated  the
building situation and look, the whole situation went to hell."

No justice at all. The data and Why and all the rest were quite  right.  The
on-paper evaluation was perfect. It would have "handled  the  hell"  out  of
it. But lamentably the program just  was  never  done.  Altered  or  falsely
reported or untouched, the targets just weren't done.

So the test of an evaluation is

DID IT MOVE THE EXISTING SCENE TOWARD OR ATTAIN THE IDEAL SCENE?

100



mnlr~

And that cannot occur without the program being fully and totally and
correctly done.

See also HCO P/L 26 Jan 72, "Not-dones, Half-dones and Backlogs" for more
data on this.

Thus it is VITAL that four final targets exist on every evaluation,

These are

(Fourth from last number of the evaluation program.)  Verify  from  personal
inspection of the existing evidence or the scene itself  that  every  target
has been fully done without omission, alteration, falsehood  or  exaggerated
reports. EVALUATOR.

(Third from  last  number  of  the  evaluation  program.)  Look  at  current
statistics and the results of the above  inspection  and  the  SITUATION  of
this evaluation as written above AND SEE IF THE SITUATION  IS  NO  LONGER  A
THREAT. EVALUATOR.

(Second from last number of the  evaluation  program.)  Look  again  at  the
IDEAL SCENE as written above.  Then  look  at  the  above  two  targets  and
further investigate and SEE IF THE IDEAL SCENE HAS NOW BEEN APPROACHED  MORE
CLOSELY OR ATTAINED. EVALUATOR.

(Last numbered target of the evaluation program.) (A)  If  the  above  three
targets do not show a favorable approach toward or attainment of  the  IDEAL
SCENE, gather new data, investigate further and RE-EVALUATE or  (B)  If  the
IDEAL SCENE has been more  closely  approached  or  attained  the  following
commendations or awards are assigned:

EVALUATOR.

This signifies the conclusion of the evaluation.

(Note: The last four targets may be made available on a mimeograph sheet
for the use of an evaluator in ending off his evaluation.)

By using this program ending, it is abundantly clear to all those concerned
with the evaluation including the evaluator that

THE PROGRAM AND ITS SUCCESSFUL EXECUTION ARE AN INTEGRAL PART OF AN
EVALUATION.

Unless the program is fully, truthfully and successfully done, an
evaluation alone cannot remedy any situation and the ideal scene will not
be attained.

The reason for and the final objective of any evaluation is the approach
toward or attainment of the IDEAL SCENE.

L. RON HUBBARD Founder LRH:clb.jh.nf Copyright 19 1973, 1974

[Note: The 17 May 1974 reissue corrected a typographical error in the
original mirneo.]

101



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 25 NOVEMBER 1973-1

      Issue I

Remimeo     CORRECTED AND REISSUED 17 MAY 1974

Data Series 31 Addition

FINAL TARGET ATTACHMENT

To save the evaluator writing the final targets longhand this sheet is
provided. It can be filled in with the proper numbers and data,
inapplicable lines crossed out and this sheet stapled to the end of any
eval.

(Fourth from last number of the evaluation program.)  Verify  from  personal
inspection of the existing evidence or the scene itself  that  every  target
has been fully done without omission, alteration, falsehood  or  exaggerated
reports. EVALUATOR.

(Third from  last  number  of  the  evaluation  program.)  Look  at  current
statistics and the results of the above  inspection  and  the  SITUATION  of
this evaluation as written above AND SEE IF THE SITUATION  IS  NO  LONGER  A
THREAT. EVALUATOR.

(Second from last number of the  evaluation  program.)  Look  again  at  the
IDEAL SCENE as written above.  Then  look  at  the  above  two  targets  and
further investigate and SEE IF THE IDEAL SCENE HAS NOW BEEN APPROACHED  MORE
CLOSELY OR ATTAINED. EVALUATOR.

(Last numbered target of the evaluation program.) (A)  If  the  above  three
targets do not show a favorable approach toward or attainment of  the  IDEAL
SCENE, gather new data, investigate further and RE-EVALUATE, or (B)  If  the
IDEAL SCENE has been more  closely  approached  or  attained  the  following
commendations or awards are assigned:

EVALUATOR.

LRH:ntmjh.nf

, 1974      L. RON HUBBARD

      Founder



[Note: The 17 May 1974 reissue corrected a typographical error in the
original mirneo.]

102



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 DECEMBER 1973

Remimeo

Data Series 32

TARGET TROUBLES

TARGETS JUNIOR TO POLICY

A target given on an evaluation may  not  set  aside  management  policy  or
technical releases.

Where such a target is written or misused to supplant policy  a  great  deal
of trouble can follow.

Example: Org policy in authorized issues states that accounts for  the  week
must be finalized at 2:00 P.M. Thursday. Someone writes  an  evaluation  and
puts a target in it to end the week  on  Sunday.  People  doing  the  target
actions change to Sunday. This is out of phase with all  other  actions  and
chaos results.

People tend to take orders from anyone and anything in a poorly organized
area.

When they use evaluation or project targets  instead  of  policy  the  whole
structure may begin to cave in.

NO EVAL TGT IS SENIOR TO  OFFICIAL  ISSUES  AND  WHERE  THESE  CONFLICT  THE
TARGET HAS THE JUNIOR POSITION.

The only way a target can change policy is to propose that such and  such  a
policy be officially reviewed on proper channels or that  a  new  policy  be
written and passed upon properly by those in actual authority.

Someone attempting to do a target who finds that it  conflicts  with  policy
or official technical releases and yet goes on and does  the  target  is  of
course actionable.

TARGETS OUT OF CONTEXT

CONTEXT- "The interrelated conditions in which something exists or occurs."

OUT OF CONTEXT: Something written or done without relation to the  principal
meaning of a work.

Targets must be written within the meaning of the whole evaluation.

Example: The evaluation is about pie. There is a target that says to  polish
shoes just because the evaluator happened to think of  it  and  squeezed  it
into the program. A program written to  increase  pies  winds  up  with  the
ideal scene of polished shoes. No  pies  get  increased  so  the  evaluation
fails.

Targets must be DONE within the context of the evaluation.

Example: An evaluation is done to increase central  office  collections.  It
calls for another evaluation to be done on a  statistic.  The  person  doing
that target reduces the number of items collected upon and  crashes  central
office collections.

The person DID NOT READ OR UNDERSTAND THE WHOLE  EVALUATION  before  he  did
the target and so did it in  a  way  that  accidentally  defeats  the  ideal
scene.

103



Example: An evaluation is  done  to  fill  up  a  big  hotel  of  450  guest
capacity. One of its targets calls for project orders sending a team to  the
hotel. The person who writes  the  project  orders  does  not  look  at  the
evaluation or the hotel plans and specifies 30 guests must  be  gotten!  The
evaluation is defeated.

FALSELY EVALUATING

A person who evaluates a situation without chasing up all the data  or  even
looking at the data in his files can bring about a false evaluation.

Example: A person has come back into an organization at a  high  level.  The
place crashes. The evaluator does not examine personnel changes at the  time
of the crash and comes up with "too many football games" as his Why and  the
evaluation fails.

FALSE DONES

False reports that a target has been done when it has not  been  touched  or
has been half done at best is actionable in that he is  defeating  not  only
the evaluation but the organization.

Example: The evaluator has an ideal scene of  repaired  machines  that  will
increase production. The mechanic reports all machines repaired now when  he
has not even touched them. The evaluator sees production remains low,  looks
around for a new Why. But his Why is falsely reported dones on his  accurate
eval!

PERSONAL CONTACT

Targets seldom get done without personal contact.

Evaluations should carry the name or post  of  the  person  who  is  overall
responsible for the completion of the program.

Sitting at a desk while one is trying to get people to do  targets  has  yet
to accomplish very much. One can have messengers or  communicators  or  Flag
Representatives getting the targets done but these in turn must depend  upon
personal contact.

A person assigned responsibility for getting a whole  program  done  is  not
likely to accomplish much without personal contact being made.

This can be done on a via. Mr.  A  in  location  A  remote  from  Mr.  C  in
location C can get a target done reliably only if he has a  Mr.  B  in  that
area whose sole duty it is to personally contact Mr. C and have  Mr.  C  get
on with it despite all reasons why not. That is how targets get  done.  That
is also how they can be reviewed.

Target troubles  are  many  unless  the  program  is  under  direct  contact
supervision. Even then targets get "bugged"  (stalled).  But  the  evaluator
can find out why if personal contact is made and the target  can  be  pushed
through.

SUCCESS

Therefore the success of an evaluation in attaining an ideal  scene  depends
in no small measure on

1.    Both evaluator and target  executor  realizing  policy  and  technical
materials are senior to targets in programs and  that  targets  do  not  set
senior policy aside. One of the best ways to prevent this  is  to  know  and
refer to policy and technical issues in targets.

2.    Targets must be written in context with the  evaluation  and  done  in
context with the ideal scene. The best way to achieve  this  in  writing  an
eval's targets is to make them consistent with the Why and ideal scene.  The
best way to be sure that targets will be DONE in context is to require  that
anyone doing a target must first read the  whole  evaluation  (and  be  word
cleared on it) before he does his target so that he does  his  target  in  a
way to improve the existing scene in the eval not some other scene.

104



3.    To prevent  false  evaluation  one  may  require  that  the  evaluator
attests that all pertinent data and statistics have  been  examined  and  to
discipline such failures whenever an evaluation fails.

4.    To prevent false dones one must  review  the  evidence  of  dones  and
statistics  after  the  program  is  complete  and  discipline  all  falsely
reporting persons and reassign the targets or in any way possible  get  them
actually done.

5.    The way to get a whole program done,  target  by  target,  is  through
personal contact. Supervise it by personal contact with those  assigned  the
targets. Or use a communicator or messenger.  Where  the  people  doing  the
targets are remote from the evaluator one must have someone there to do  the
personal contact. And be sure THAT person isn't just sitting at a  desk  but
is actually doing personal contact on targets. Thus all evaluations, on  the
issue itself or by organizational  pattern,  should  have  someone  who  can
personally contact people getting the targets done fully and completely.

If these points about evaluations and their  programs  are  understood,  one
can and only then can move things toward the ideal scene.

L. RON HUBBARD

Founder

LRH:nt.ts.nf

105



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 3 JULY 1974RB

Remimeo     RE-REVISED 6 NOVEMBER 1978

      RE-REVISED 29 JANUARY 1979

      (Only revision is addition of items Y and Z)

(Revisions in this type style)

Data Series 33RB

EVALUATION, CRITICISM OF

There are six duties of a person who is responsible for passing
evaluations:

1.    To see that the evaluation is correct and that it can accomplish or
approach the ideal scene,

2.    That those doing evaluations, by the process of the criticism itself,
become trained and better evaluators,

3.    That persons doing evaluations become correctly and well-trained by
the process of training, cramming and, as needed, ethics,

4.    To see that evaluations do occur on existing situations,

5.    To see that unevaluated situations do not exist and,

6.    To make sure that the Data Series is used to its full potential.

When an evaluation is rejected, care must be taken  that  the  criticism  is
correct and not capricious.

If one gives out-tech criticisms of evaluations, no  evaluator  will  really
ever learn evaluation. He will  just  become  confused  and  desperate.  The
quality of evaluations will deteriorate and the Data Series  potential  will
be defeated.

Therefore the only criteria  that  may  be  used  in  calling  attention  to
outnesses in an eval, a requested rewrite or correction are

A.    Purity of form (all parts of an eval included).

B.    Verification of stats.

C.    Date coincidence correct and proven on graphs, using all graphs that
have to do with the situation.

D.    GDS analysis supporting the eval (stat management P/Ls apply).

E.    Exactly offered data not borne out by an inspection of files.

F.    No situation.

G.    Insufficiently broad situation.

H.    Inconsistent - policy - situation - stats - data - Why -  ideal  scene
-handling - tgts, not on same subject. The inconsistency must  be  precisely
pointed out.

106



1.    Outpoints in the eval itself-such as in bright idea or handling,  etc.
The outpoint must be precisely  noted  and  named.  This  does  not  include
outpoints in the data section which are the outpoints on which the  eval  is
based.

J.    Not all pertinent or available data applicable or needed was  examined
by the evaluator. The excluded data must be exactly stated as to what it  is
and where found. Not looking at all applicable or important data makes it  a
partial eval.

K.    Wrong Why.

L.    Weak handling.

M.    Handling does not include targets to handle directly or indirectly
the more serious outnesses found in the data mentioned.

N.    Absence of ethics handling on serious ethics matters found in the
data mentioned or of the ethics Why.

0.    No method of implementing the evaluation or maintaining the scene  and
getting its targets done. Such as a broken line between evaluator and  scene
or omitted terminals or ethics Who(s) depended upon to do the targets.

P.    Sequence of handling incorrect or omitted. A  production  target  must
come first. Errors of solid organize  for  many  early  consecutive  targets
without production in them, no organizing at all are flunks.

Q.    Vague generalities in postings which do not name the new person or
the person to replace the person being moved up.

R.    Musical chairs-

S.    No resources or ways to get them or nonutilization of known resources
or excessive use of resources for no real gain.

T.    Off-policy orders or orders that set policy.

U.    No target or targets to get in the policies mentioned under "Policy."

V.    Unreadable or illegible presentation of the eval for criticism or
review.

W.    Failure to return eval promptly with corrections.

X.    Bright idea isn't bright enough.

Y     No eval.

Z.    No data trail, incorrect data trail.

If the reviewer, corrector or critic  of  evaluations  does  the  above  AND
NOTHING ELSE he will be rewarded with better and  better  evaluations,  less
and less time spent correcting, more and  more  gain  by  use  of  the  Data
Series and a happier and more productive scene entirely.

L. RON HUBBARD

Founder

LRH:nt.dr.clb.nf , 1978, 1979

107



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 JULY 1974

Remimeo

Data Series 34

SITUATION CORRECTION

I have just reviewed a number of attempted evaluations  and  was  struck  by
the similarity of errors in them.  None  of  these  evaluations  would  have
reached any ideal scene or even improved the existing scene.

The real reason for  this  is  that  the  majority  of  them  had  a  highly
generalized situation such as "Bidawee Biscuit Company  failing"  or  "Stats
down from last year." They then proceeded on a data trail and got a "Why."

In these cases the Why they found was actually the situation!

Each of them had failed to use the data trail to find  the  situation.  They
were using the data trail to find a Why!

The evals then had no Why.

The handling was just a bunch  of  orders  that  were  in  fact  unevaluated
orders since no real Why had been found,

Like in playing a game these evaluators had started  50  feet  back  of  the
starting line and when they got to the starting line  (the  situation)  they
assumed it was the finish.

If you look at an "evaluation"  that  has  a  generalized  "situation"  like
"continental products getting fewer" you will find in a lot  of  cases  (not
always accurately) that what was put down as  the  "Why"  was  in  fact  the
situation. This left the "eval" without a Why. Thus the  ideal  scene  would
be wrong and the handling ineffective.

Example:  (not  in  form)  "Situation:  Gus  Restaurant   failing."   "Data:
Customers refusing food, etc., etc." "Why:  The  food  isn't  good."  "Ideal
scene: A successful Gus Restaurant." "Handling: Force Gus  to  serve  better
food, etc., etc." That isn't an eval. That is an  observation  that  if  Gus
Restaurant is to survive  it  better  get  evaluated.  It  is  being  evaled
because it isn't surviving. Now look at this: The data  trail  led  to  "the
food isn't good." That's a situation. Why isn't  it  good  enough?  Well  it
turns out the cook got 15% commission from the store for buying bad food  at
high prices. And Gus didn't know this. So bang, we  handle.  Gus  Restaurant
achieves ideal scene of "Gus Restaurant serving magnificent chow."

In this example if you used the situation for a Why the Who  would  probably
be Gus!

The data trail of outpoints from a highly general "situation" (that is  only
an observation like failing stats) will lead one to the situation  and  then
a closer look (also by outpoints) will lead one to the real Why  and  permit
fast handling.

DATA TRAIL

People can get too fixated on the history of something. They can  call  this
a "data trail." Well, all right, if it's a trail of outpoints.

108



But significances of history have little to do with evaluation.

Let us say you see the machine division is failing.

Now if you simply take masses of data about it and just start  turning  over
10 or 12 sheets at a time looking for outpoints only and  keep  a  tally  of
what they are and to whom they belong, you will wind up with your  situation
area and probably your situation without reading any significances at all.

Now that you have your area  and  situation  in  it  You  can  start  really
reading all about it and get that existing scene's data and  its  outpoints.
And your Why leaps at you.

SUBSTITUTION

You can't substitute stats for a situation or a situation for a Why.

But substitution of one part of an eval for another is a common fault.

Substituting a general hope for the ideal scene you really would  and  could
achieve makes a sort of failed feeling in an  eval.  "Gus  Restaurant  being
best in town"  is  nice  but  "Lots  of  customers  very  well  fed  so  Gus
Restaurant survives" is what you are trying to achieve. That can  occur  and
will be reached if you find the real Why.

L. RON HUBBARD

Founder

LRH:rhc.act.ts.nf

109



000C.-M

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 JULY 1974

Remimeo

Data Series 35

EVAL CORRECTION

An evaluation submitted for an okay is only  reviewed  to  the  first  major
outness (see HCO P/L 3 July 74, Data Series 33) and  is  then  returned  for
correction.

Only when no major correction is necessary does one then verify all data  or
go to an extensive review of the whole eval.

This makes the line very fast. It also saves a great deal of work by one
and all.

If the stats are incorrectly given, that's it. Reject. If the Why is  really
the situation, that's it.

On the reject one gives the letter of Data Series 33  that  is  not  correct
and any reference to the Data Series that would seem helpful.

An evaluation corrector will see how well this rejection system  works  when
you find that the eval, let us say, has no situation on it,  but  only  some
stats. Why verify anything as a whole new  body  of  data  may  have  to  be
found.

In correcting evals, if a situation is given, I usually call  for  the  main
stats of the unit being evaluated to see if these show any reason to  handle
it at all. I recently found an activity had had its chief removed  when  his
stats were in Power. The activity then crashed. And that was the  situation.
It was made by an evaluator and an eval corrector not looking at the stats!

If no error exists in situation or stats I read  the  eval  down  to  bright
idea and look especially at the Why, ideal scene and handling to see if  one
would make the others.

If that's okay, I look at the targets of handling and the resources.

If those are okay, I look at data and outpoints. If these are  all  okay,  I
then verify the data.

But if at any of these steps I find an error, I  then  reject  at  once  for
immediate correction.

Often, by using only basic things to  reject,  the  whole  eval  has  to  be
redone as the basics are so far wrong.

If you try to correct the whole thing before rejecting  or  if  you  correct
tiny little things instead of the big ones, the whole line slows.

Eval correction should be a fast, helpful line, strictly on-policy, no
opinion.

That way the job of correction becomes easier and easier.

L. RON HUBBARD

Founder

LRH:nt.ts.nf

110



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I I AUGUST 1974

Remimeo

Data Series 36

ENVISIONING THE IDEAL SCENE

If one cannot envision the ideal scene, one is not likely to be able to  see
a situation or get one.

A SITUATION IS THE MOST MAJOR DEPARTURE FROM THE IDEAL SCENE.

Thus:

ONE MUST BE ABLE TO ENVISION AN IDEAL SCENE TO FIND A SITUATION.

A lot of "ideal scenes" you see are just glib. An afterthought.

Some people know the proper scene so well they  at  once  recognize  that  a
departure from it has occurred, which  is  fine.  But  such  people  do  not
realize, when they are teaching evaluation or correcting evals, that  others
may not know the proper scene well enough to get an idea of what  the  ideal
scene should be. Thus, a wrong  target  occurs.  The  teacher  or  corrector
keeps putting attention on the incorrectness of the situation given  in  the
eval instead of noticing that the ideal scene is adrift.

An ideal scene is FUTURE.

When one is stuck on the time track it may seem pretty difficult to
envision a

future.

In politics this is called "reactionary" or "conservative." These mean any

resistance to change even when it is an improvement. The bad old days seem
to be the

good old days to such people. Yet the old days will not come again. One has
to make

the new days good.     $

"Liberals," "socialists" and such make great propaganda out  of  this.  They
inveigh against  (criticize)  conservatives  and  say  the  future  must  be
reckoned with. And they hold up some often incredible future scene  and  say
the way to it is by "revolution" or destroying everything that was.

Both viewpoints could be severely  criticized.  The  conservative  tries  to
stick on the time track with no reality on  the  fact  that  today  will  be
yesterday in 24 hours. The super-liberal skips tommorrow entirely  and  goes
up the track 5 or 10 years to a perfect state which can never  exist  or  is
falsely represented as possible.

In between these two viewpoints we have the attainable.

And we come to an ideal scene that is possible and will occur if the Why  is
right and handling is correct and done.

Envisioning an attainable future requires some connection with reality.

There is no harm at all in dreaming wonderful dreams for  the  future.  It's
almost the bread of life.



But how about giving oneself a crashing failure by disconnecting from any
reality?

Some laborers do this to themselves. Taking no  steps  to  attain  it,  they
daydream themselves as kings or some other grand identity. Well, all  right.
But that isn't an "ideal scene." That's a delusion engaged  upon  for  self-
gratification in a dream world.

One can not only dream a possible ideal scene but he can attain it.

So an ideal scene is SOMETHING THAT CAN BE ATTAINED.

It should be quite real.

Some people setting unreal quotas are really setting some  impossible  ideal
scene. "Complete this work in I hour!" to someone  working  hard  on  a  job
that will take 4 days is delusory. It is setting,  without  saying  so,  the
ideal scene of having a worker who is really a magician! Well, maybe  if  he
were audited and hatted he would be. But that's sure some ideal  scene!  The
here and now is a guy sweating it out and trying. And that's an ideal  scene
that is missed!

And so are many ideal scenes missed. The offices neat and orderly might  not
even be imagined by someone who has seen them in a mess for  two  years.  He
may think that's the way they're supposed to be! And be quite  incapable  of
envisioning the offices in any other condition!

Thus, if one cannot see the offices should be clean, he does  not  see  that
they are dirty and messy as a situation. Thus when he  is  told  the  public
won't come into the place, and even if he finds the place  is  full  of  old
dirty junk, he can't evaluate it as a  clean  orderly  place  would  not  be
envisioned by him. So he doesn't get "dirty  place"  as  a  valuable  datum,
doesn't get "a clean orderly place that is inviting to  the  public"  as  an
ideal scene, doesn't get "office so dirty the public won't go near it" as  a
situation and so cannot find a Why to lack of public! And so  as  he  didn't
find Why it was so dirty and disorderly, it wouldn't handle. So there  would
be a failed eval.

Yet the teacher or evaluation corrector would not realize the  person  could
not envision an ideal scene and so keep  telling  the  person  to  find  the
situation whereas the ideal scene was what was out.

You can get some very beautiful ideal scenes  AND  attain  them-if  you  can
evaluate!

L. RON HUBBARD

Founder

LRH:nt.rd.nf

112



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 AUGUST 1974

Remimeo

Data Series 37

WHYS OPEN THE DOOR

You can really understand a real Why if you realize this:

A REAL WHY OPENS THE DOOR TO HANDLING.

If you write down a Why, ask this question of it: "Does this open  the  door
to handling?"

If it does not, then it is a wrong Why.

Backtracking to find how it is wrong, one examines the ideal scene  and  the
situation one already has.

The outpoints  should  be  checked.  The  completeness  of  data  should  be
checked. One may find he is in a wrong area of the scene.

Correct that, correct the ideal scene, correct the situation and look for
more data.

With the outpoints of more data one can achieve the real Why that will  open
the door to handling.

Quite often an "evaluator" "knows" the Why before he begins. This is  fatal.
Why evaluate?

Some of the most workable Whys I've ever found surprised me!  So  usually  I
also ask, did I know this? Am I surprised? The chances are, if I  "knew"  it
already (and the situation still exists)  it  is  a  wrong  Why.  And  needs
proper evaluation.

When you have a right Why, handling becomes simple.  The  more  one  has  to
beat his brains for a bright idea to handle, the more likely it is  that  he
has a wrong Why.

So if you're not a bit surprised and if the handling  doesn't  leap  out  at
you THE WHY HAS NOT OPENED THE DOOR and is probably wrong.

I have seen evaluators take weeks to do an evaluation. In  such  cases  they
went on and on reading as they  did  not  know  how  to  find  a  real  Why.
Actually they did not know what one was.

By going through  the  total  current  files  of  an  activity  looking  for
outpoints just by randomly glancing at data sheets  from  all  sources,  you
can find the AREA. Outpoints lead you straight to it.

An ideal scene for that smaller AREA is fairly easy to envision.

The type of outpoint will generally give you how the departure is.  One  can
then get the situation.

By looking over (in detail now) the data of that smaller area  and  counting
the outpoints, one can find the Why.

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nnmr~

The Why will be how come the situation is such a departure  from  the  ideal
scene and WILL OPEN THE DOOR TO HANDLING.

If it doesn't, then review the whole thing, do the steps again.  Don't  just
sit and sag!

Let's say we find outpoints of added inapplicable data in all  reports.  And
they lead to Reception. The ideal scene of  Reception  is  easy:  attractive
pleasant atmosphere, welcoming in the public.

We find more detailed reports that the place is full of junk and filthy  and
we get our situation, "public repelled by filthy messy Reception."

Now why?

So back to the real data and  we  find  the  janitor  never  cleans  it.  Or
anything else. The easy out is just sack the janitor  (and  leave  the  post
empty). But that won't handle so we have no Why.

So we dig and dig and suddenly we find that the staff refer to  the  janitor
in lowly and  disrespectful  terms:  "Janitor  has  no  status."  Well,  the
outpoints all say so. And it opens the door to a handling.

So we handle by transferring the janitor org board  position  from  treasury
where it went as he "looks after assets" to  the  Office  of  the  President
with the president's secretary as his direct senior.

We write up a program for clean offices.

Magic!

The offices get clean!

The public again comes in.

The ideal scene is attained.

(You may think this example is pretty unreal. But actually it once  happened
and worked!)

So a right Why opens the door to handling.

If it doesn't, look harder.

THERE IS ALWAYS A REASON FOR THINGS.

And if your ideal scene and situation are correct, you  can  find  the  real
Why that opens the door.

L. RON HUBBARD

Founder

LRH:nt.rd.nf

114



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 3 OCTOBER 1974

Remimeo

Data SerieN 38

PLUSPOINT LIST

The following is a list of PLUSPOINTS which are used in evaluation.

Needless to say, pluspoints are very important in evaluation  as  they  show
where LOGIC exists and where things are going right or likely to.

RELATED FACTS KNOWN. (All relevant facts known.)

EVENTS IN CORRECT SEQUENCE. (Events in actual sequence.) TIME  NOTED.  (Time
is properly noted.)

DATA PROVEN FACTUAL. (Data must be  factual,  which  is  to  say,  true  and
valid.)

CORRECT RELATIVE IMPORTANCE. (The important and  unimportant  are  correctly
sorted out.)

EXPECTED TIME PERIOD. (Events occurring  or  done  in  the  time  one  would
reasonably expect them to be.)

ADEQUATE DATA.  (No  sectors  of  omitted  data  that  would  influence  the
situation.)

APPLICABLE DATA. (The data presented or available applies to the  matter  in
hand and not something else.)

CORRECT SOURCE. (Not wrong source.)

CORRECT TARGET. (Not going in some direction that would  be  wrong  for  the
situation.)

DATA IN SAME CLASSIFICATION. (Data from two or  more  different  classes  of
material not introduced as the same class.)

IDENTITIES ARE IDENTICAL. (Not similar or different.)

SIMILARITIES ARE SIMILAR. (Not identical or different.)

DIFFERENCES ARE DIFFERENT. (Not made to be identical or similar.)

The use of the word "pluspoint" in an evaluation without  saying  what  type
of pluspoint it is, is a deficiency in recognizing the different  pluspoints
as above. It would be like  saying  each  outpoint  is  simply  an  outpoint
without saying what outpoint it  was.  In  doing  evaluations  to  find  why
things got better so they can be repeated, it is vital  to  use  the  actual
pluspoints by name as above. They can then be counted and handled as in  the
case of outpoints.

Pluspoints are, after all, what make things go right.

L. RON HUBBARD

Founder

LRH:nt.nf

115



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 OCTOBER 1974

Remimeo

Data Series 39

WHO-WHERE FINDING

You may now and then see an eval that winds up with a Who. Very  rarely  you
also find one that winds up in a Where. Sometimes you  find  an  "evaluator"
who only finds Whos or Wheres.

If this puzzles you when you see  such  "evals"  or  if  you  land  in  that
situation yourself while evaluating, remember this:

AN "EVA12'THAT ONLY HAS A WHO OR A WHERE AS ITS WHY IS INCOMPLETE.

What has happened is this: The "evaluator" does an outpoint count  only  for
Who or Where. He does not then really investigate or dig up  the  real  data
on that Who or Where but lets it  go  at  that.  He  says-WHY:  Dept  I  not
functioning. WHO: Director of Personnel. IDEAL SCENE: A functioning Dept  1.
HANDLING: Shoot the Dir Personnel.

Such evals do NOT raise statistics. They do not work. Because they  are  not
complete!

In any eval you have to do an  outpoint  count  to  find  where  or  who  to
investigate. This prior outpoint count does not appear, always, on the  eval
form. It's just where to look.

Having gotten the Who or Where you NOW do a full read out, lift  the  rocks,
pry into the cracks and find the Why.

It can even get  worse.  Having  seen  something  wrong,  one  puts  down  a
situation. He does a preliminary outpoint count for a Where or Who and  then
discovers a  more  basic  or  even  worse  situation.  In  other  words  his
situation can change!

Example: No personnel being hired leads one to Dept  1,  Personnel.  So  one
writes the situation: "No one being hired." Then one can  easily  dash  off,
"Why: Dept I inactive. Ideal scene: An active Dept I hiring personnel."  And
write up a handling: "Hire people."

Great, easy as pie.  But  somehow  six  months  later  there  are  still  no
personnel! The reason is simple: The "evaluator" never went beyond the  Who-
Where. He put down a Who-Where as his Why.

Real evaluation would go this way: First observed situation,  "no  personnel
being hired." The Who-Where comes up as Dept 1. Now and only now do we  have
something to evaluate. So our situation has changed.  It  becomes,  "Dept  I
inactive." And we investigate and lo and behold there  is  no  one  in  that
whole division! Again we could go off too early.  It  is  tempting  to  say,
"Why: No one in it!" And say, "Handling: Put somebody in it!"

But actually "no one in it" is just data! Certainly the execs who should  be
screaming for personnel know there is no one in Dept 1. After all, they  get
cobwebs on their faces every time they pass the  door!  So  it  is  just  an
outpoint, not a Why as it does

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not securely lead to solution. So we look further. We  find  seven  previous
orders to put on a Director of Personnel! The writers of  these  orders  are
not the  Whos  but  who  they  were  given  to  are  elected.  That's  seven
noncompliances by the executive in charge of organizing! And this turns  out
to be Joe Schmoe. Now we have a Who. So what's with this Joe Schmoe?  So  we
go to anything connected with  Schmoe  and  we  locate  board  of  directors
minutes of meetings and herein he has been stating for  2  years  repeatedly
that "The organization only makes  so  much  money  anyway  so  if  we  hire
anybody to deliver service we might go broke." As the organization has  been
going broke for those two years and the last Dir  Personnel  was  fired  two
years ago we now also have our DATE COINCIDENCE. But this is still  just  an
outpoint-contrary facts, as one has to deliver to stay solvent. So  we  look
up Joe Schmoe even further and we find he is also the chief  stockholder  in
a rival company! So here is our Why: "Organization being suppressed  by  the
chief stockholder in the company's rival." "Who: Joe  Schmoe.  Ideal  scene:
Organization hiring personnel needed to  deliver."  Now  for  the  handling.
Well, Joe Schmoe could mess things up further if wejust  fired  him.  So  we
better know what we're doing. We have found our  organization  controls  the
tin Joe Schmoe's company needs for its cans. So we shut off the  tin  supply
and when Schmoe's stock falls we buy it up, merge  the  companies  and  fire
Joe. Or so a businessman would do. THAT handles it!

Shallow evals that stop with a  Who-Where  on  the  first  inspection  don't
succeed. Outpoints are usually aberrated and the people  there  around  them
usually handle things unless they have depth of mystery.

You have to have a Who-Where to begin  your  investigation.  Once  you  find
your Who or your area, now the outpoints begin to count.

Very few situations in actual fact are caused by active Whos. Usually it  is
inactive Whos, confronted with situations they have not  grasped  and  don't
see any way through.

A classic case was a situation that did not resolve for over  a  year  until
very close investigation discovered a statistic was wrongly worked  out  and
which targeted an area in the wrong direction. One could  have  shot  "Whos"
by the dozen without ever solving it!

So when you see a Who-Where as a Why,  you  know  one  thing:  The  eval  is
incomplete.

You can cure someone doing this chronically by making  him  first  list  the
outpoints that show Who-Where to look. And then make  him  go  on  with  the
evaluation outpoints that lead to a Why, giving  two  counts  of  outpoints.
The light will dawn.

L. RON HUBBARD

Founder

LRH:nt.nf



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 12 MARCH 1975

Remimeo     Issue 11

Evaluators

DSEC Students    Data Series 40

Execs

Flag Bureaux     THE IDEAL ORG

FOLOs

      (First appeared as LRH ED 102 INT,

      20 May 70, referring to evaluation.)

The ideal org would be an activity where people came to achieve freedom  and
where they had confidence they would attain it.

It would have enough space in  which  to  train,  process  and  administrate
without crowding.

It would be located where the public could identify and find it.

It would be busy looking, with staff in motion, not standing about.

It would be clean and attractive enough not to repel its public.

Its files and papers, baskets and lines would be in good order.

The org board would be up-to-date and where the public  could  see  who  and
what was where and which the staff would use for routing and action.

A heavy outflow of letters and mailings would be pouring out.

Answers would be pouring in.

Auditors would be auditing in Div IV HGC and Qual would be rather empty.

Supervisors would be training students interestedly and 2-way comming all
slows.

The HCO Area Sec would have hats for everyone. And checked out on everyone.

There would be a pool of people in training to take over new admin and  tech
posts.

The staff would be well-paid because they were productive.

The Public Divisions would be buzzing with effective action and  new  people
and furnishing a torrent of new names to CE

The pcs would be getting full grades to ability attained  for  each,  not  8
minutes from 0 to IV, but more like 30 processes. And they would be  leaving
with high praises.

The students would be graduating all on fire to audit.

One could look at this ideal org and know that this  was  the  place  a  new
civilization was being established for this planet.

The thousand or more actions that made it up  would  dovetail  smoothly  one
with another.

And the  PR  Area  Control  would  be  such  that  no  one  would  dream  of
threatening it.

Such an ideal org would be built by taking what one has  and  step  by  step
building and smoothing, grooving in and  handling  each  of  its  functions,
with each of its divisions doing more and more of its full  job  better  and
better.

The business is always there-the skill with which  it  is  handled  and  the
results on pcs and students is the single  important  line  which  makes  it
possible to build the rest.

The ideal org is the image one builds toward.  It  is  the  product  of  the
causative actions of many. Anything which is short of an  ideal  org  is  an
outpoint that can be put right. The end product is not  just  an  ideal  org
but a new civilization already on its way.

L. RON HUBBARD Founder LRH:nt.nf

118



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 15 MARCH 1977R

Remimeo     REVISED 17 SEPTEMBER 1977

Data Series 41R

                                 EVALUATION:

                                THE SITUATION

(Later developments on situations are contained in Data Series 28R, 28R-1,
34 and 39. However the data following, compiled from an LRH taped
conference in 1972, is of sufficient importance to include as part of the
Data Series.)

There are bad situations, good situations and no situations. A situation  is
something that applies to survival and if you evaluate the word  "situation"
against survival, you've got it.  A  good  situation  is  a  high  level  of
survival; a bad situation is a threatened survival and  a  no  situation  is
something that won't affect survival.

We've gone ahead of the whole show of intelligence with the Data Series.

NOTE: We are using intelligence as an example solely and only because it  is
the most inclusive system Man has developed for  collection  and  evaluation
of data.

We have greatly  refined  this  system.  Espionage  and  other  intelligence
activities and skills  have  no  part  in  our  application.  We  are  using
intelligence as an example of data usage systems, that is all.

You are out in an area of greater simplification  and  far  more  use.  This
doesn't necessarily make anyone an intelligence officer, but a general or  a
head of something or a general manager or an executive  who  does  not  know
how to evaluate a situation will make nothing but mistakes. The mistakes  of
history are made by people who can not evaluate, by which we mean  determine
the situation-which even more simplified would be find  out  the  situation.
From this given body of data,  from  that  indicator  we  can  find  a  good
situation, or a bad situation or a no situation. And this  is  what  one  is
trying to determine. The more skilled one becomes  in  doing  it,  the  less
work it is. It is a matter of skill.

To give you an idea:  If  you  tried  to  play  every  note  of  a  concerto
separately by having to look up each note in the chord and  then  strike  it
on the piano, you wouldn't have much of a tune, right? But  the  longer  you
did that, the more likely you were to begin  to  approximate  some  sort  of
something that sounds like music. But it would take a lot of practice.

Now you can get so  all-fired-good  at  evaluation  that  you  can  take  an
isolated indicator and know immediately where it fits into because you  know
it fits into the plan of things and because you know it is or isn't part  of
an ideal scene. It's better than the existing scene or it is  too  far  from
an ideal scene. You can pick up an indicator in this  way-and  it  sometimes
probably looks magical to you how  I  will  suddenly  pick  up  an  isolated
instance and look down the line and we find a roaring hot situation  at  the
other end of it.

Now that is done out of an economy of data. It is done because one  has  not
the time to investigate or read all of the data which might  exist  on  this
particular subject being investigated. So one learns to  do  something  that
looks absolutely intuitive and when you're terrifically hot at  this  it  is
called "flair."

Prediction from data is an essential part of evaluation. "This datum  is  an
outpoint-it shouldn't be, peculiar." Now it will predict more data.

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You have to be so hot that you will notice something is an  outpoint-it's  a
wild outpoint of some kind or another-accept its magnitude, size  of  datum,
how important is this datum. The evaluation of  importance  is  one  of  the
more difficult things people have to do. They have a  tendency  to  consider
things a monotone importance. You have to train yourself out of that.

What do we get here then as a qualification for an evaluator?  You  have  to
know all the outpoints in sight. You have to know what  outpoints  are.  But
that's rather thinking backwards because  you  should  know  that  something
shouldn't be. And as soon  as  you  get  a  "shouldn't  be"  you  can  do  a
prediction. And that leads you into an investigation-by viewing other  data.
In other words you find this terrific outpoint or these  outpoints  and  you
find out where they exist, it leads you into, very directly, the point  that
you should be investigating.

DEFINITION OF EVALUATION

This is as close as the dictionary comes to the  definition  of  evaluation:
"to examine and judge concerning the worth, quality,  significance,  amount,
degree or condition of." (The  Third  Webster's  International  Dictionary.)
Now to edit that down, it's "to  examine  and  judge  the  significance  and
condition of."

An evaluation: "the act  or  result  of  evaluating,  judgement,  appraisal,
rating, interpretation."  And  an  evaluator  is  "one  that  evaluates.  An
intelligence officer is supposed  to  be  a  professional  evaluator."  (The
Third Webster's International Dictionary.)

This word is a technical word which isn't given in  these  dictionaries.  It
is an action which is basically an intelligence action.

The actual meaning which is supposed to be  embraced  in  the  word  is  "to
examine the evidence in order to determine the situation" and  that  is  the
intelligence meaning and then it could have, further: "so  as  to  formulate
policy or planning related thereto. In other words 'What is the enemy  going
to doT So the general can say 'Therefore we should. . . .' "

WHAT IS EVALUATION

Here is an example of what evaluation is, the type of thing expected  of  an
evaluator.

I was looking at an org's graphs, all of a sudden I  see  a  drift  down  of
reserves and a level of bills. The bills are level, level, level-drift  down
of reserves, until all of a sudden it's about to cross and this was  an  org
where we just changed the CO, so I say "Hey whoa!  Wait  a  minute,  wait  a
minute! This organization is spending more than its income obviously by  the
looks of this graph. So let's look into this just a bit further."  I  looked
further and got more  data  and  I  found  out  that  the  org  was  running
insolvent. The Data Bureau already had a report on this; I picked it  up  on
another line. I just picked it up off graphs.

Further investigation found out that the new CO had taken over from the  old
CO and had inherited an extremely backlogged org-included backlogged  bills.
And the new CO had been sent in there on a set of Garrison  Mission  Orders-
and they just contained standard COing actions when they  should  have  been
MOs designed to handle the insolvency scene-forcing the org to  promote  and
make income; then making an announcement that no POs will be  signed  except
promotion, wages and  utilities;  then  get  in  the  date-line  paying  and
forcing Accounts to dig it up out of all  their  mouseholes  and  all  those
bills that have been in there for a year or two and the  stuff  they  didn't
file and get a date-line paying system in. Then  you  start  surveying  like
mad to  find  out  what  the  organization  can  sell  and  then  you  start
delivering, beef up your delivery lines and so on.

It wasn't any surprise to me to learn that that graph was  a  false  report,
of course. But this  is  no  explanation.  It  doesn't  mean  the  situation
doesn't exist but the graph is a

120



false report. That is an outpoint all in itself. It's actually backed up  by
other data but you could have taken it this way: You  could  have  seen  the
graph declining-that is reserves going down, bills staying the same and  you
find out it's a false report. At that moment, by Data Series, you charge  in
and investigate the heck out  of  it.  Here's  an  indicator,  then  another
indicator that's a false report.

Where did I count outpoints? I was  counting  them  all  the  time.  One  is
enough-a declining reserves graph and a holding debts  graph-well  that  was
enough. So the counting was "one," and as I looked a little  further  I  got
"two" and then as I looked a little further I got a  "three"  and  a  "four"
and a "five" and a "six." We did a handling and more  outpoints  showed  up.
Right as you are handling the thing more  and  more  outpoints  show  up  so
there is a point where you neglect any more outpoints, you can go  on  as  a
lifetime profession finding outpoints in one of these areas. It's enough. '

We have actually done something with the Data Series which has never  before
been done. Other data evaluation systems have to do with the reliability  of
the observer, which determines if the reported fact  is  a  "proper  datum."
But all of their work is done on computers and  those  computers  are  built
against logic systems  developed  by  the  Greeks.  But  it  is  data,  data
validity of, which monitors logic.

A black propaganda operation is almost totally concerned with feeding  wrong
data into the  population  and  therefore  the  population  cannot  come  to
correct conclusions and their actions will be peculiar.  There  are  experts
in black propaganda and they're fully trained in it and they do it  all  the
time.

Back of wrong data  you  will  normally  find  an  impure  intent.  So  that
somebody is giving you false reports is an evaluation in itself.

An evaluation first requires data. The  absence  of  data  you  should  have
would give you an evaluation. We knew  something  was  wrong  with  an  area
because all of a sudden somebody found out they  weren't  sending  in  their
reports. The absence of  data  is  an  adequate  evaluation  that  there  is
something wrong. And in one such case it actually took  weeks  to  find  out
what was wrong.

If you find the outpoint, you're into evaluating a  situation.  You're  just
looking at data-you find an outpoint, you investigate that.  You  find  more
outpoints, you go along and say, "It's the thing that we're looking at  now,
what the heck. . . " because you're obviously traveling away from the  ideal
scene or you've found something that went much closer to the ideal scene  or
something that didn't change it. You then look it over and say,  "It's  this
point," and at that moment you can figure out why this  is  occurring.  "Now
why is this occurring?" And that requires quite a bit of data. "Why is  this
occurring?" Therefore when you can say "Why," now you can handle.

What you want is the outpoint and an outpoint is a departure from the  ideal
scene. That tells you that there is an  area  to  investigate  and  you  can
investigate it simply by going and finding more data and more outpoints  and
then as your data  accumulates  you  can  get  why  it's  a  departure.  The
accuracy of your Why then gives you the point which you will have to  handle
which is all very neat and there comes in your recommendation.

This is the trick on evaluation: You have to  learn  what  is  an  outpoint,
what is this outrageous thing and then that cones you down.  Now  you  could
find all kinds of little points.

REVIEW

Having handled the thing or having done something about  it,  don't  be  too
surprised to now and then find a lot more data suddenly emerge. In  fact  it
is almost usual now that you've started to handle something  for  more  data
to emerge. But you have to look it over. You have  to  say,  "Well,  have  I
handled it? Does this data confirm our Why or doesn't it confirm  our  Why?"
And that's all you do with that data-it's confirmatory.

Sometimes you get data after the fact, after you've taken action. That is a
review

121



of your evaluation. When the data comes in after the fact,  there's  another
step involved here.

You review the situation and all of a sudden you find out you  were  looking
at a heck of a wrong Why. One of the first things that  will  tell  you  you
operated on a wrong Why is that the  stats  went  down-because  it  departed
further from the ideal scene.

You get injustices and that sort of thing coming out of  wrong  evaluations,
so this is one of the reasons why you watch an evaluation in  your  line  of
country-you watch an evaluation after the fact. Was it true?  So  there's  a
confirmatory step which isn't mentioned in the  Data  Series-"Was  that  the
right Why?" The Data Series does mention it's whether or not the  stat  goes
up. But it's worse than that: "Did you have the  right  Why?"  or  "Did  you
shoot down the wrong man?"

FAMILIARITY

We  have  a  considerable  amount  of  technology  which  is  administrative
technology, which gives us an  ideal  scene,  and  with  which  we  must  be
familiar in order to evaluate and handle. We would have to be  as  practiced
in this as in the building  of  armament  factories  or  running  navies  or
building toy balloons or trying  to  get  housing  furnished  to  the  great
unhoused if that's what we were doing-you  have  to  have  some  familiarity
with the type of scene which you're handling.

If you're good at this you don't go on wasting your  time  and  energy.  You
find the right Why, you set it up, you make sure that it does  get  set  up-
but there's nothing more you have to  do  with  it  and  then  that's  that.
Sometimes that takes quite a while  but  note  that  if  you're  immediately
pressing down this Why all the rest of the way and you go on past the  point
where you corrected it-the thing is  corrected-now  you're  handling  a  no-
situation.

If  you  didn't  have  evaluation  you  would  find  yourself  handling  no-
situations and neglecting tough situations and not taking advantage of  good
situations.

CLOUDING UP A SITUATION

Occasionally you'll find a scene wherein a person's or area's PR is  greater
to him than his production-PR, personal PR, means more than production.  And
that is a characteristic of a suppressive. He'll fog the situation  up  with
big PR about how good it is so it can't be handled.

THE WHY

You have to know when you don't have a Why. It is very,  very  important  to
know you don't have a Why.

The end product of your evaluation could be said to be "What do we do  about
this?" In other words, your recommendation could  be  said  to  be  the  end
product. Actually that's a short circuit. As far as your  investigation  and
your data analysis is concerned your first target, the Why, if skipped  will
defeat the end product of your evaluation. If that Why  is  found  then  you
can handle.

A Why is just this: It is the reason there has been a  departure  or  closer
approach to or an exceeding of the ideal scene.

What will defeat you continuously is trying to find Whys  in  no-situations.
You won't find a Why. If you can't find a Why readily then you can  possibly
suspect that you have a no-situation.

A Why, by essence, is something you can do  something  about.  You  have  to
have a recommended action on top of the Why.

The Why is something which departed from, the reason  it  departed  from  or
the reason why it bettered the ideal scene or got closer to it. It is a  Why
you can use and which will bring you a better scene.

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Therefore the definition of a Why  is:  It  must  be  something  which  will
permit you to bring about a better scene-not  necessarily  bring  about  the
ideal scene.

You might  actually  have  a  better  scene  than  the  ideal  scene.  We've
described the ideal scene as so and so and all of a sudden  a  Why  suddenly
emerges which actually makes the ideal scene look  pale.  Taking  the  ideal
scene of a moderately affluent org-we might all of  a  sudden  move  into  a
situation where the ideal scene was quite something else and we found out---
Howcome all of a sudden Keokuk has made 8 million dollars  in  the  last  13
days?" How come? We don't have an ideal scene anymore.

IMPORTANCE OF HAVING A WHY

We have a system of data handling which is superior to that  of  other  data
collection and evaluation organizations of today. 1 can say that  because  1
know their systems. Systems? And they  don't  hold  good.  Imagine  somebody
saying "Well, we shouldn't pay any attention to  Agent  622's  reports  from
Kobongo because they're false." Oh? That'd mean one had a  turned  agent  or
an agent that wasn't working. In other words,  it  isn't  meaningless,  it's
not something you discard into the wastebasket. Now a good  data  collection
and evaluation officer doesn't always discard this.  He  says,  "Well,  it's
false data so therefore it's probably been taken over by the enemy"  and  he
does make some sort of hit at it.

But there are other outpoints that they would never have noticed.  "A  datum
is OK. . . " this is the general think-not just of the generals but this  is
general intelligence think. "Of the data we receive, a great deal of  it  is
not useful because it doesn't come from reliable observers." Well  that's  a
hell of an outpoint in itself. If an enemy battleship was seen on the  coast
it wouldn't matter who saw it-intelligence organizations would not  pick  it
up unless it had been observed by a trained officer.  ---Thetown  could  not
have been shelled because no reliable observer put a report in-there was  no
artilleryman to tell us whether or not. . . ."

So our system doesn't begin with "The Slobovians are building 85,000  Panzer
tanks, and that's by a reliable observer because  Agent  462  has  given  us
factual reports in the past and it's confirmed  by  aerial  observation  and
satellite pictures. . . ." So what! The intelligence would be " Why are  the
Slobovians building this many Panzer tanks? Now, is this a lot  more  Panzer
tanks than Slobovians normally build?" because maybe Slobovians go in for  a
lot of building Panzer tanks so they can call them T-something-or-other  and
say they were invented in Slobograv. Why? And  we  right  away  have  a  new
brand of intelligence-Why? Why are they building these Panzer tanks? One  is
the fact that they're building these Panzer  tanks,  is  that  an  outpoint?
Well, is it a lot more Panzer tanks than they have built  before?  Is  it  a
lot less? Did they build a million a year and are only  building  200,000  a
year now?

Now the officer evaluating this hasn't any Why, he  hasn't  anything  so  he
makes the supposition that the Slobovians are now easing  off.  "Yeah,  well
general, the Slobovians are  now  easing  off."  "Yes,  Mr.  President,  the
Slobovians are now easing off and everything  is  going  to  be  fine."  The
fool! What's the Why?  Where's  the  Why?  He  assumed  something-he  didn't
investigate further. He didn't look all over the place and find a whole  lot
of political or such ramifications and add it all up and so forth. Now,  had
he known about it he would have looked from that data to more outpoints  and
he would have found something or other-building the tanks for  Bongoland  so
that they could knock out their  neighboring  country.  Why9  Why~9  Because
they have a contract with Bongoland to furnish them with tanks. He  could've
found something like that.

You get these unwarranted conclusions because they don't have the  mechanism
of asking "Why?" and they don't investigate it until they have  an  adequate
Why that explains it. When you've got a Why you can handle.

THECHANGE

One more tip on this whole scene. If you can't find the Why, you  revert.  1
learned this about life out of plant research. 1 found  out  that  you  went
back to the point of major change in a greenhouse or a garden and  corrected
it the second you saw the

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plants dying. You required, then, a logging of everything that was done.  If
you had a log of everything that was done you could get  the  date  and  the
change. You knew the date they started to wilt so  what  change  was  around
the vicinity of that date. And you inevitably and invariably  found  a  huge
change had taken place. Not a small one, and the tip is  that  if  all  else
fails, why just go back to your major change and you can do that  by  stats,
go to major change, and so on.

You won't always be right but you're operating on a general Why-there was  a
change. Every once in a while you'll be scattering  around  trying  to  find
this.

This works in almost all situations to some degree, what change  was  there.
It has a liability. It tends to wipe out improvements. If  you  go  back  to
the point of high stuff all the time, all the time,  all  the  time,  you're
pegging yourself into a pattern where, as a  matter  of  fact,  there  might
have been better patterns. There might have been a better Why in there  than
just a change of pattern.

NEW WHY

Once in a while you'll have found a Why and handled that, but find it  keeps
slipping out again. For example, an org having to be told to keep in its  FP
No. 1. FP No. I resulted from an evaluation of financial difficulties.  That
was a Why at one time and has since become a standard action-but  where  you
keep having to say to an area "Get your FP No. I in"-now WHY do you have  to
keep getting in FP No. P The Why is not that FP No. I is out-we have  gotten
that in as a practiced action. Why does it keep sliding out  in  this  area?
There could be several things actually.

If you have to keep saying "Get in C/S Series 25 so that you do have a D  of
P so that people do come  in  and  are  invoiced  and  so  forth,"  you  are
obviously running into a Why of why something keeps sliding out.

WHAT IS A RECOMMENDATION

What is  a  recommendation?  Actually-usually-it  would  be  recommended  if
somebody else were going to execute it. You have a recommended  program  and
then from a recommended program you have an executed  program,  so  at  that
moment you shifted your hat.  You're  no  longer  an  evaluator,  you're  an
executor or an executive.

If your evaluations, that wind up in Whys that wind up  in  recommendations,
are going to autonomously function-that is to  say,  singly  and  by  itself
function-without regard to any other entity or activity, the next thing  you
know you're going to have fourteen or fifteen programs which are  in  direct
collision which will produce sufficient confusion to reduce the stats.  Then
you, yourself, will wonder if you've found the right Why because  it  didn't
work. Whereas the reason could be entirely different.  The  reason  is  your
recommendation was in collision with other Whys and recommendations  and  so
operated  to  block  other  actions  which  were  vital  to  the  continuous
operation of an activity. You can kill your own recommendation.

If you were in a position where you were going  to  independently  of  other
evaluators execute all your actions, you might wind up  with  a  mess-you've
got your neck out as an evaluator.

The essence of a recommendation  is  "agreed-upon"  and  after  there  is  a
recommendation, there is an "agreed-upon" before there is execution.

An agreed-upon action means that you'd have to agree with  other  bodies  of
data which people had-not their personality-other bodies  of  data.  If  you
have data which is contrary to an action which is being proposed, you  could
be put in a position of canceling or trying  to  cancel  or  recommending  a
cancellation of a senior's order. Therefore one has  to  have  "agreed-upon"
before execution.

When you are collecting data you have a torrent of data coming in.  You  are
collecting data, collecting data, collecting data, collecting data. If  that
data is not evaluated, it is useless. It is  just  a  useless  expense.  The
only way that data is of any value at all is if evaluations are done on it.

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Any independent order given without the benefit  of  the  other  evaluations
would be a risk. It isn't agreed upon person to  person,  it's  agreed  upon
data to data. The only agreement would be on whether there  is  a  situation
or a no-situation, a good situation or a bad situation  or  a  no-situation.
There'd have to be agreement on that point and there would  have  to  be  an
agreement on the Why. Only then could you get a coordinated recommendation.

EVALUATE

You've got to  do  evaluations.  If  you  don't  do  evaluations  you'll  be
insufficiently informed to be a competent agreer  or  disagreer.  You'll  be
insufficently informed to be sufficiently efficient to get the show  on  the
road.

Take advantage of the tremendous volumes of  data  which  come  in  and,  by
doing evaluation, provide  a  sufficient  running  record  of  any  and  all
existing situations in your line of country so that there is a general  view
of what is going on so that the data can be looked at, looked up and one  is
sufficiently informed so that he can make efficient judgments-and that  will
decrease the amount of work done on  this  and  that,  that  doesn't  really
handle anything.

And it amounts to fewer orders which can then be  enforced.  It  amounts  to
prosperity because one of the Whys we find on occasion  is  that  there  are
too many orders drifting around which haven't been executed.  One  winds  up
operating on somewhat of a jammed communication line just jammed by  volume.
The guy that's reading all this stuff is out there and he's  got  noise  and
he's got this and they've got bill collectors and he's  got  something  else
and so on. He never has time to read it. He doesn't know what the  situation
is and so forth.

One could also, without proper evaluation, easily issue  an  order  into  an
area with a hidden Why-which could destroy it.

And the speed of action determines the degree of loss-and that  is  a  rule.
The speed of action also determines the degree of  gain.  And  speed  has  a
price. An organization which is not  doing  well,  its  Why  not  accurately
found for eight months is a loss for eight months each succeeding  week.  If
an organization should be  making  fifteen  thousand  dollars  and  is  only
making two thousand dollars you're losing thirteen  thousand  a  week  every
week that you don't handle it. It's speed of gain or loss.

Compiled from

LRH taped conference to

Staff Aides, "Evaluation"

720ITC02 SO

L. RON HUBBARD

Founder

Assisted by

Louise Kelly

FMO 1710 I/C

Revised and reissued by

AVU Aide

AVU Verif and

AVU Evals Chief

LRH: LK: M H:SH: M W:ifpat.nf

125



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 17 MARCH 1977R

Remimeo     REVISED AND REISSUED 15 JULY 1977

Data Series 42R

DATE COINCIDENCE

STATS AS THE FIRST INDICATOR

The first indicator is usually stats. You can take a stat  book  of  an  org
and look over its GDSes  and  know  their  interrelationship  and  find  the
outpoint, and then from that outpoint you will know what part of  the  org's
folder to read. If you are doing evaluations by reading  the  whole  folder,
you're being silly. You're not interested  in  that.  You're  interested  in
this outpoint, because that's  your  first  outpoint.  Your  first  outpoint
usually occurs in stats.

One outpoint, from stats, was  tremendous  quantities  of  bulk  mail  being
mailed at vast cost after the stats had been  brought  up  by  regging,  and
then the stats collapse. That was the first oddity  that  was  noticed  from
some Dissem stats. So it was a stat oddity. They were busy regging and  they
made a lot of money, and then they spent it on bulk  mail  and  went  broke.
Because there was a stat oddity here. It meant the  GI  did  not  match  the
bulk  mail.  So  it's  an  outpoint.   It's   inconsistent.   Contradictory.
Something's false. So right there, you're looking at a  great  big  cracking
outpoint. One or the other of those facts is a lie,  or  something's  wrong.
And we find out the real outpoint underlying it is wrong target.  It's  just
number of pieces being sent out. They were mailing out fliers several  times
a week-sending scraps and calling it bulk mail.

Now just the fact that an org's stats are down is an outpoint.

Having found a downstat you look to see if the org ever did make  money?  If
it was ever affluent. Just taking it from the standpoint  of  GI,  was  this
org ever affluent? If the org was ever affluent, it  must  have  been  doing
something right so you've got something that approximates its ideal scene.

You haven't approached data files yet. That's why stats  are  separate  from
the data files.

LOCATING A COMPARATIVE

So here's two conditions:  (1)  the  stats  are  down,  and  (2)  you  can't
evaluate one thing, as you learn in the  Data  Series,  unless  you  have  a
comparative thing. You have to compare it with something. So you can find  a
period when their stats were up.

You find out that in July of 1969 Kokomo was really  booming.  It  had  nice
climbing stats and they went up and up and up and up and up. And  that  rise
started on the 6th of June. What did they do? In May and June of  69?  Those
are the two folders you want. Anything you can find out about  that  org  of
May/June 69. That gives you something dimly resembling an  ideal  scene.  It
isn't the ideal scene, but it is certainly an upstat scene. That  gives  you
a comparative.

If you were hot you would use your  telex  lines  to  fill  in  the  missing
holes. For instance, if you don't understand  something,  or  if  it  looked
like they moved in 1970 and you can't find out locally, and you  don't  seem
to know whether or not they didlocation  seems  to  be  something  important
here-you could send a telex to somebody who might know and say, "Where  were
you located in June of 69? Where was this org  located?  Can  you  find  out
from anybody?" It might be important you see. This is just a

126



collection of a little bit more data.  You  know  that  the  org  was  doing
something, at that time, that it isn't doing now.

I did just this when I wrote the PL "Selling  and  Delivering  Auditing."  I
looked back when HGCs were really making the money and wrote that  PL.  This
PL is in use in one org and they're really going to town. They're using  the
same system. A guy comes in to sign up, they say, "No you can't sign up  for
one intensive, thank you, you'll have to buy seven,"  or  something.  So  he
does, he pays  the  money  on  the  barrelhead.  That  PL  comes  out  of  a
comparative-a comparative of HGCs not selling much  auditing  and  having  a
hard time doing so, and what they were doing in an earlier period.

So, when doing an evaluation (1) look at your stats, (2) find your  outpoint
in the stats, (3) find some comparative-find some period  of  affluence  for
the org, if you can, to give  you  some  ideal  scene  for  that  org.  That
requires something of a pluspoint evaluation. Now you can do  your  outpoint
evaluation. Because you've already got the outpoint, you don't have to  read
8,752 folders.

ETHICS SITUATION

A while back, I asked the Data  Bureau  for  the  folders  of  a  particular
downstat org. The first folder came up, that wasn't even a complete  month's
folder. I looked through the folder, read scraps  of  what  I  was  reading,
picked out the reports I wanted. Scanned them. Pulled the outpoints  out  of
them. Counted up the outpoints as to where they were going.  And  the  thing
just fell apart. The CO was unaware of the fact that Personnel  was  letting
him down. That was their admin Why. And obviously the CO had  to  take  that
person in there off. And obviously there was something wrong with  this  CO.
Now every eval done on that org since is  grooving  on  straight  down  that
same Why. We've tried to make orders, and we've tried to do this  and  we've
tried to do that. But now an ethics  situation  has  developed  out  of  the
thing. We got the admin Why all right. But an ethics situation developed  as
we tried to get this in. And notice that THE ETHICS SITUATION DEVELOPS  WHEN
YOU TRY TO GET IN THE ADMIN OR TECH WHY.

In another area the ethics situation developed to  such  a  degree  that  it
then emerged-after an observation mission, after a  handling  was  done  and
orders were issued-that they did not execute a  single  one  of  them.  They
were told to revert. They did not. Therefore an ethics Why was looked for.

Now I've just found out why people can't put  in  ethics.  They  don't  know
investigatory tech, and possibly in some cases their own ethics are out.  If
you put their own ethics in, they will get in  ethics  further.  The  reason
they assign broad conditions and the reason there are so many  Comm  Evs  is
they don't know how to investigate.

WHO WHEN

Someone was given an evaluation to do and had been on that for five days.  I
kept asking all this time-where's this evaluation?  People  must  think  I'm
rushing them. Evaluators are slow because the evaluation is not  being  done
in this sequence: (1) stats, (2) who was on where.

I gave an order to an evaluator to find out exactly when did a CO of an  org
come to Flag, and when did this person go back, because that would give  you
a stat comparison. That was how I found this person was the  man-of-all-work
and the scooting genius of that org. Now you're talking about  ethics.  It's
the police action called date coincidence. It's how you locate geniuses  and
murderers. Body found in swamp. Her cousin arrived in town on Tuesday.  Body
found on Wednesday. Guy departed on Thursday. That's all  the  police  need.
That's called date coincidence. That's old  time  investigatory  tech.  It's
still with us.

So, when were they gone out of the org, and when did  they  arrive  back  in
the org, and'what happened during that period of time? Important!

127



In the case of this particular CO, I found out that two  other  execs  could
leave the org and return and nothing happened-but  when  the  CO  left,  the
roof fell in, the front steps collapsed under everybody, and the staff  went
on vacation. I traced this down and I found  out  that  this  CO  would  run
around the org wearing hats in rotation. She dived into Tech  and  wore  the
Tech Sec hat for a while, and then she dived  into  another  area,  and  she
wore that hat for a while, and the stats would go up. In  other  words,  she
supported that area by punching one area at a time. That  was  the  way  she
was operating. So if she was all over the org like that,  her  obvious  post
was D/CO. We put her on that post, and the org has done well ever since.

Now that's a sort of ethics  action  in  reverse.  That's  looking  for  who
really pushes it. You don't just keep on  looking  for  tigers.  Tigers  are
probably more numerous than  geniuses.  But  you  could  find  that  certain
people have a vast effect on stats. This is how  you  evaluate  a  personnel
scene. In another org, a guy took over and the place has been  crashed  ever
since and it was right square on the  stats.  There  is  your  most  obvious
ethics investigation by stats.

When you don't know, you've got to send an investigatory  mission  and  it's
got to be run well. Otherwise they just wind  up  shooting  all  the  people
that the staff complain about.

If you don't operate  on  a  comparison  every  time-comparison  admin  Why,
comparison on the stats, ethics comparisons-if you're trying to  operate  on
a single datum, that single datum won't buy you  any  pie.  Because  it  has
nothing to compare with.

SUMMARY

What the Data Bureau gives us is experience. And that is huge files full  of
experience, but you've got to recognize what you're reading. You don't  read
everything! If you do you're omitting  an  analysis  of  the  GDSes  and  an
analysis of who went on where. At a good time and a bad time.

What are you looking for? You're looking for the  stat-look  at  your  GDSes
(this is for your admin Whys), tells you the big outpoint,  tells  you  what
information you're looking for in the files-and you're  only  interested  in
that information. You start counting up that type  of  information  and  see
where it lands, and the Why will practically jump out  at  you  out  of  the
folder. It is so easy! It just leaps right out. But you have  to  know  what
you're looking at.

In writing up one eval, an evaluator verbally gave  me  more  valuable  data
than she had put into the eval. She was quoting reports. All you want to  do
is quote the steps of your investigation.

The Why has got to be specific. If a  Why  is  insufficiently  specific,  it
just can't be operated.

There's an admin Why, which is the normal one that you're trying to  handle.
There'll be an admin or tech Why and below that there'll be  an  ethics  Why
and above that there'll be a bright idea.

You have a  criterion  when  you've  got  your  evaluation  all  done,  your
handling has got to be bright-it's got  to  be  a  bright  idea,  that  will
actually drive those stats up-and something which can be  operated.  And  if
you do an evaluation that cannot be operated at  this  stage  of  the  game,
you're just wasting your time. Look at your resources. What can you do  with
what you've got? While you improve what you've got. It will all have  to  be
done by a gradient. So the worse off things are the  brighter  you  have  to
be.

When you do evaluations, you've got to be  able  to  operate  the  resulting
actions. If you write something that can't be operated nothing will  happen.
That at once tells  you  whether  you  have  a  good  evaluation  or  a  bad
evaluation.

128



Do your evaluations in such a way that they are dead on-bang! bang!
bang!and then, that being the case, they have got to be something that can
be operated. And the next thing you know your stats will go up.

Compiled from LRH taped conference to Staff Aides "Current and Future
Operations Actions" 7205TC 18SO

L. RON HUBBARD

Founder

Assisted by

Louise Kelly

Flag Mission 1710 I/C

Revision assisted by

AVU Aide,

AVU Evals Chief,

AVU Verif

LRH:LK:MH:MW:SH:lf.pt.nf , 1977

129



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 18 MARCH 1977R

Remimeo     REVISED 8 OCTOBER 1977

Data Series 43R

EVALUATION AND PROGRAMS

CAUSING STATS

I've learned this over the years: The entirety of our stats  are  internally
caused. WE CAN CAUSE STATS AT WILL. External actions don't affect them.

A newspaper can write reams of entheta and it doesn't affect  our  stats  at
all. We get  good  publicity-it  doesn't  affect  our  stats.  It's  totally
internal.

The public demand is apparently exactly as great as we put  the  wherewithal
in their hands with which to  demand-apparently  exactly  proportional.  You
get as great a response as you require.

Therefore, the more efficient your org is, the  greater  response  you  will
get. It's that elementary.

The test of an evaluator or executive is: "Can you get  your  org  to  do  a
constructive thing at once without any flashback or any nonsense,  and  will
it occur in such a way as to increase stats promptly? If so, you're  a  good
administrator. If you can't do that, we have all kinds of paint to scrape."

It's just that: The guy can produce an effect or he can't.

And if you run a managing body that way, all of a sudden the staff will  get
happy and  cheerful  producing  effects;  everything  will  be  fine-because
they'll become at cause.

That is the essence of hatting. The person can then come  up  to  cause  and
he'll get sane, productive and cheerful.

Actually, it takes  a  very  able  guy  to  do  an  administrative  line.  A
ditchdigger has to have a solid line of his arm and a shovel, and that's  as
far as he can produce an effect. That's why he's a ditchdigger.

Now for a guy to produce an effect at 7,000 miles without any solid  beam-he
has to be right on the ball. He has to know his business.

SPEED OF EVALUATION

There was once a situation in an org which was very interesting.  Apparently
the ED was stopping the reports of the LRH Comm and Flag Rep, so no one  was
about to find out what was going on in that org.  But  if  the  manager  had
been on the ball, all he would have had to do was to look at that data  file
and find those reports missing and know that there was  something  wrong-and
it would have been detected a long time before.

What you're up against is that most of your evaluation is on  omission,  and
the toughest outpoint for anybody who is not  familiar  with  the  scene  to
recognize is an omission.

130



THE SPEED OF RECOGNIZING OUTPOINTS DETERMINES THE SPEED WITH WHICH  ONE  CAN
EVALUATE.

You wonder why it takes people so long to evaluate. It is simply  that  they
are too slow in recognizing an outpoint.

THE INABILITY TO RECOGNIZE AN OUTPOINT IS REASONABLENESS.

It's that thing, reasonableness. We've been  talking  about  it  for  years.
That's just the inability to recognize an outpoint.

There was a fellow out in the field saying "I think we have done  all  right
in  the  past"-meaning  "without  the  Data  Series"-"in  our  thinking  and
planning." He  didn't  think  he  had  to  take  a  Data  Series  course  or
something. Whereas I was literally getting rivers of outpoints from him  and
his area. He didn't recognize them as such.

Well, what he didn't  appreciate  is  that  this  is  a  brand  new  way  of
thinking. Man prides himself on being logical so that  he  has  never  based
any system on illogic-except humor. You have to learn  to  think  backwards-
you learn to think backwards, and boy can you think forwards.  It's  like  a
dichotomy, positive-negative. If everybody omits the negative all the  time,
they never get to the positive.

A lot of people are on a stuck flow of  being  sensible  and  sane-and  that
winds up in stupidity. So they get reasonable. Their confront of evil  isn't
up to it-basically, their confront of outpoints.

THE ABILITY TO  RECOGNIZE  OUTPOINTS  WILL  EXACTLY  MONITOR  THE  SPEED  OF
EVALUATION AND THE ABILITY TO HANDLE THE SCENE.

An evaluator cannot say, when  he  hasn't  received  any  reports  for  21/2
months, that he doesn't know what to  do  because  he  hasn't  received  any
reports . . . he'd better be able to recognize an  omitted  report  when  he
sees one and that there is a situation and he  had  better  take  action  to
remedy that situation NOW.

INACTIVITY

Now, nobody ever does nothing. They never  do  nothing.  You  have  to  look
around to find out what he IS doing.

If it's an exec who can't get juniors  to  produce,  he  could  probably  be
putting a stop on production lines. A Why is findable to such  a  situation.
That's probably an ethics scene. But you still will find a Why.  You  always
find a Why for the situation. In other words, he's in a  personal  situation
of some kind or another. He might be able to function, himself, as a  junior
or he might not-but for a guy  to  sit  there  with  completely  idle  staff
members and not notice it, with their areas wrapped around a telegraph pole-
quite reprehensible.

In investigating one inactive Esto, I found out she was operating  under  an
order that she was not to Bait and Badger until she was  trained  on  it-and
there were probably many other things she "was not  permitted  to  do."  She
accepted an illegal order not to do certain Esto  actions.  Found  out  one,
probably if we had investigated further, why we  would  find  more.  In  the
first place, if anybody has read the Esto Series, he'd  find  out  that  you
are an Esto (it says it right in the beginning) and that's  it.  It  doesn't
matter if the guy has studied it or not studied it, he's an  Esto  and  he's
supposed to do the job. So it was a violent  policy  violation  as  well  as
keeping someone from doing her job.

EXPANSION PROGRAM

An expansion program  is  for  getting  an  org  built.  It's  based  on  an
evaluation for that org. There is a way you could  go  about  this.  Suppose
you wrote Kokomo and said,



"What should be done about Kokomo?" You get a  bunch  of  answers  from  the
whole staff-compulsory answer, not a couple  of  guys.  Evaluate  from  that
what their level and tone and that sort of thing  is.  And  you  could  then
form up, based  squarely  on  policy  and  forming  the  org,  an  expansion
program.

The expansion program is actually a very basic org  rudiment  function,  but
which would be adapted to that org, and within  the  reality  of  that  org.
Highly specialized-and it's terminable. The person  executing  it,  when  he
gets through with the thing-that's the  end  of  that  one.  Now  let's  get
another entirely new program.

You could actually do it on a blanket basis where each org  was  treated  as
an individual org. Then you'd know what policies to get in in this org.  You
just ask them, "What should be done about  Kokomo?"  "What  should  be  done
about Keokuk?"they'll tell you. Then you could go down to  your  Data  Files
and do an evaluation for the expansion program.

You can thus use knowledge of the org's troubles and  the  staff  interviews
as the basis for an evaluation.

There has to be an immediate organization for production, according  to  the
Prod-Org system. However, long-range, long-term  organization  actions  have
got to be done by somebody because the  Prod-Org  system  tears  an  org  to
ribbons. There's got to be somebody putting an org there who's not  directly
involved in that immediate scene. He's got to put it there  adroitly  enough
so that what he puts there expands its production  so  as  to  pay  for  the
additional organization.

It's quite neat, that type of program. As they get executed along the  line,
they wind up with an increased production. Every three or four targets  that
are done, why all of a sudden you've got more  production.  There  could  be
some good long-range targets like "Get 30 auditors" -probably could  take  a
year or more to exhaust such a target.

But note-such an expansion program wouldn't go on  your  production  program
execution lines at all. Your long-term organizational actions go on  another
line than your immediate production actions.

PRODUCTION PROGRAM

Such a program is something concerned with handling an  immediate  situation
which had to do with immediate production. Right now. Such as:

WHY.- Division 6 doing all the sign-ups for Division 2.

HA NDLING: 1. Get a Registrar on post in Division 2, right now.

2.    Then get an Advanced Scheduling Registrar on post immediately.

3.    Then get three letter writing Registrars on post at once.

4.    Get them functioning, production, immediately.

It's a "right now" scene.

A short-term production program ought to expire within  30  days-it  becomes
staledated within 30 days. Some of them become staledated within  10  or  15
days. So you need a very hot, very fast line of very quick compliance.

It already takes quite a while for the reports to get to the  files  through
the mail so that you know what the situation  is.  You're  already  10  days
behind the gun-10 days, 2 weeks late. And then  it's  going  to  take  maybe
another week to get it assembled-to know  that  there  is  a  situation  and
evaluate it and get it through and ready. So you're operating on about a  3-
week average comm lag. You have to make up for it at the other

132



end of the line-get this thing done now-now-now.

And you've got to have someone there to get it done.

The eval probably will not save the bacon of an org for the next two  years.
It will be lucky  if  it  keeps  the  stats  bolstered  for  six  weeks-then
something else will go out. By  that  time,  why  Div  6  will  have  become
completely confused because it is not now being  permitted  to  do  all  the
registration of the org, so therefore it would have gone out  of  existence,
and the Registrar would have left, so now we  would  have  to  evaluate  and
handle Division 6.

It goes tick-tock. From one situation to another.

There  are  different  types  of  evaluation.  There'd   be   a   divisional
evaluation. There could even be a departmental evaluation.  There  could  be
an org evaluation. An executive stratum evaluation. And so on.

You could have several evaluations going at the same time,  but  they  would
have to be different divisions or areas, otherwise you'd cross up like  mad.
Normally speaking and in theory, that would  be  possible.  But  in  fact  a
competent evaluation would find the imbalance between divisions.

The  operative  word  is  current  evaluation.  You  could  push  a  current
evaluation. How wide is present time? Well, that's  a  matter  of  judgment,
but a year-old evaluation would be pretty much not current.

FIRST TARGET

Your first program target must always be a production target-but you  can't,
in actual fact, write a pure production target. It would  be  impossible  to
write a pure production target because somebody would have  to  do  it,  and
the moment that you have somebody there to do it you have  organization.  So
there is a certain amount of organization that comes into it.

If I were evaluating an org right now, say its  Dept  7,  1  would  have  to
include in it as its second target, beefing up Dept 7.  First  target  would
be for Dept 7 to do anything it could to handle  its  collections.  And  the
second target would be to beef up  that  department  forthwith,  bang  bang!
Otherwise the production would not continue. It would break.

So, as mentioned earlier, there has to be immediate organization for
production.

TERMINABLE TARGETS

Now how do you like a target like this: "Maintain  friendly  relations  with
the environment." How do you like that target? It is utterly completely  not
a doingness target. It isn't a target at all!

Now if it said: "Call on so and so, and so and so and  make  them  aware  of
your presence . . ." and so forth, it could have a DONE on it.

Targets should be term inable-doable, finishable, completable.

REPEATING TARGETS

There is such a thing as a repeating target.  You  can  accomplish  it  many
times-it's like when you do org rudiments. Every time they do one  of  those
targets a compliance is added to the compliance stat.

This is especially true of some targets in expansion programs.

FOUR-PRONGED ACTION

In operating orgs, you've got a four-pronged action. A division of duties.

133



- Somebody gunning these orgs up to expand.  You  have  to  get  in  certain
structural functional actions for  an  org  to  expand.  You  have  to  have
somebody working on founding and expanding the org against  production,  for
real. You could do an evaluation for an expansion  program,  and  have  this
person beat it in. This is your long-term organization.

- Somebody driving in  the  production  programs  that  remedy  the  current
situation and production actions. Those programs are  based  on  evaluations
of the current status of an org from the viewpoint of production.  Not  from
a viewpoint of its organization. You do have  to  do  a  certain  amount  of
organization to get any production, but it's short-term organization.

- You've got the general org being run on its day-to-day basis by  what  was
once known as the Assoc Sec and is now the ED.

- You've got the Guardian Office handling the  public  and  indispensibility
of Scientology. Handling the  public,  handling  legal  and  handling  other
things. They're outward facing.

There you have your four-pin structure of your org  drive.  Those  lines  go
very sleek.

Compiled from

LRH taped conference

"Programs Bureau and

FB Lines and Functions"

7309TC27 SO

L. RON HUBBARD

Founder

Assisted by S. Hubbard

AVU Verifications Chief

LRH:SH:dr.nf , 1977

134



      HUBBARD COMMUNICATIGNS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 18 MARCH 1977-IR

      ADDITION OF 20 MARCH 1977

Remimeo     REVISED 14 JUNE 1977

Data Series 43-IR

EVALUATION SUCCESS

To show that evals on individual orgs and getting programs done  DOES  raise
stats the following brief review is published:

Around mid-July I got on the eval approval lines for about a  week  and  had
orgs of one continent evaluated by some Flag evaluators.

We got several evals through, severely according to the Data Series rules.

Here are the results of 7 of them.

I . Program was reported fully done. Stats went up.

2.    18 July eval. Pgm was almost fully done. Finance got bugged. Org
crashed 22 August 74.

3.    22 July eval. By 15 Aug stats had gone UP.

4.    21 July 74 eval but not started on until 26 Sept 74 as Study Manuals
were

delayed on which eval depended. Org stats after eval began to be done went

UP and by the end of Oct hit highest ever almost across the boards.

5.    20 July 74 eval. Started on 10 Aug 74. Half-done. By 24 Oct stats
went UP.

6.    23 July 74 issue. Bugged. Not completed. Stats went up first couple
weeks. Org crashed 24 Oct 74. (Eval was also cross-ordered by removal of
CO.)

7.    23 July 74. Three-quarters done. Stats went UP.

Thus 5 out of 7 of the above evals were successful.

The two that failed were obviously insufficiently  broad  as  other  matters
got in the  way  of  them.  The  evaluator  could  not  have  had  the  real
situation. Means not enough preliminary work to find the  area  that  should
have been evaluated.

VERBAL TECH

Verbal tech on a DSEC should be severely handled if found.

Note that the evals as above were very purely supervised referring only to
departures from the Data Series P/Ls.

Pure eval per Data Series 33R was the push on getting the evals done. I was
simply demanding full Data Series P/L application.

The reason for verbal tech is Mis-U words!

135



FAILING EVALS

-It is pretty easy to tell if an eval is getting done or if it  is  failing.
The two poor evals in  the  7  just  weren't  watched  fast  enough  by  the
evaluators. You cancel a failing eval fast and do a better one.

Failing to cancel or redo a failing eval on an org would be the real  reason
for that org continuing to go down.

SUMMARY

If you got 5/7ths of all our orgs purely evaluated, no nonsense with  verbal
tech, you would have booming Int stats!

Just like pcs-unprogrammed pcs fail-and pcs audited with hearsay tech  fail!
Orgs without evaluated, pushed programs for  that  org  tend  to  fail.  And
evaluations done on hearsay tech are a waste of paper.

How about it?

A boom or crash?

It's up to YOU.

Compiled from

ED 552 Flag, by LRH

4 November 1974

EVALUATION SUCCESS

L. RON HUBBARD

Founder

As assisted by

AVU Flag

LRH:MH:MW:SH:lf.nf , 1977

136



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 20 MARCH 1977R

Remimeo     REVISED 15 JUNE 1977

                          (Taken from LRH OODs item

                             of 15 October 1973)

(Revisions in this type style)

Data Series 44R

SUPER EVALUATION

I have examined four evaluations recently and have found in each  case  that
the evaluator had not gone to the trouble of looking in obvious  places  for
data.

In each of these cases, personnel  whose  personnel  folders  had  not  been
looked into and whose ethics files had not been examined were concerned.  In
the last one, a person was being proposed for promotion to a high  executive
position in an org while the stats for the past week demonstrated  that  his
area was seriously downstat, the matter even being mentioned on the  current
battle plans.

It is not how much you read, it is where you look. In  the  Data  Files,  if
one is examining the statistics of a division, one does not read all  manner
of reports from other divisons and other personnel. One has to be  selective
and right target to get his data.

Statistics (as  fully  outlined  in  statistical  management  PLs)  are  the
dominant factors in an evaluation, and most evaluations begin on  the  basis
of statistics which are either sufficiently high to merit examination so  as
to be reinforced, or are too low to be viable.  These  read  in  conjunction
with other statistics usually give you an org situation.

When one discovers a series of outpoints, there  is  generally  a  situation
underlying them.

From the statistical trail, or the gross outpoint trail, one  can  locate  a
situation, The situation is then evaluated by looking for  and  finding  the
exact data which applies to that situation. From this one can find his  Why,
and once this is found he can get a bright idea.

A program can then ensue which terminatedly handles that situation.

Evaluations cannot be done in any other  way.  The  moment  that  you  apply
humanoid think to the subject of evaluation, you lose.

In the last evaluation I looked over, the evaluator obviously had  not  gone
to personnel files, data files or any other files but had simply  read  some
PR despatches written by the guy himself and had  taken  single-source  data
and decided to promote the person to the  control  of  an  area.  Statistics
demonstrated at once that  the  person's  stats  were  down,  that  practice
evaluations done  on  that  very  org  existed,  and  that  the  ethics  and
personnel files of that person would never have suggested any promotion  and
on the contrary would have suggested demotion. This would have made  a  very
dangerous situation in the area, would have victimized  a  great  many  good
people, and would have played hell with Flag statistics.

Persons "evaluating" without having looked at the vital data concerned

137



with their evaluation, are subject to a Court of Ethics  on  the  charge  of
FALSE EVALUATION.

While this might be looked on some as a deterrent to evaluating at a//  when
evaluations are vital, remember that it is better to handle one person,  the
evaluator, than to tie up and maul a thousand people with  a  program  based
on a false Why

Evaluations not only can be done but are quite magical  in  handling  things
when the evaluator knows what  he  is  doing  and  when  he  looks  for  the
information he needs to  evaluate  in  the  places  where  that  information
exists.

It is out of correct and brilliant evaluation that high stats are made.

We have superlative tools, we must use them right.

Compiled from

LRH OODs item

15 October 1973

"Super Evaluation"

L. RON HUBBARD

Founder

Assisted by AVU Aide, Evals Officer and AVU Verif Off, Flag

LRH:MH:MW:SH:lf.dr.nf , 1977

138



EEWMM40

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 SEPTEMBER 1978

Remimeo

Data Series 45

EXAMINING RESOURCES

One of the reasons evaluations fail is because the evaluator does  not  take
stock of resources.

It is vital that you examine resources when  evaluating  before  you  plunge
into any  handling,  and  resources  belongs  just  above  handling  on  the
evaluation form.

Resources sometimes turn out not what they seemed, so when  I  say  "examine
resources" I mean look into them searchingly. Were you ever  sure  that  you
had $50.00 in the bank and $20.00  in  a  teapot  only  to  find  on  closer
examination that you were overdrawn at the bank and the teapot contained  an
IOU whose signature you couldn't read?

Sometimes you think you have resources you don't have  even  when  there  is
total agreement on every hand that you have  resources.  Take  for  instance
clerk X. It is "common knowledge" that he has  been  around  "Department  5"
for years and is a "good clerk." So you make  him  head  of  the  department
without going down and  inspecting  his  area.  What  will  happen  to  your
evaluation  and  "Department  511  if  that  undone  inspection  would  have
revealed unfiled backlogs 10 feet high, lost supplies and equipment  and  an
office mainly used for plotting mutinies. This may be an  extreme  case  but
some shadow of it lies behind most failed evaluations.  The  evaluator  just
didn't examine his resources and thought he had what he didn't have.

There is one type of program you can always predict will fail, it begins
"Hire a

11 or "Recruit a       " When sending a mission out on such orders

you know you won't hear from them for 6 months because the program has
said, in

effect, "acquire nonexisting resources."

If you do an evaluation on almost any subject and  omit  an  examination  of
resources and the resources section, your  evaluation  may  lay  an  ostrich
egg. "Appoint Joe Blow, who is a trained Personnel Officer," may  trip  over
the fact that he left the company 5 months ago and has not been  heard  from
since. The eval will bug at  this  point.  That  is  because  the  evaluator
didn't examine resources.

You sometimes have to gear down your bright  idea  and  handling  from  "Buy
Wall Street" to "Set up a peanut vender stand on Bleaker  Street."  But  the
point is your evaluation will succeed where otherwise it will fail.

Almost all evaluations actually have  the  overall  goal  of  preserving  or
acquiring resources. So don't omit an examination of the  resources  you  do
have to work with and their accurate and exact character from your evals.

L. RON HUBBARD

Founder

LRH:mf.nf

139



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 4 JANUARY 1979

Remimeo

Data Series 46

THE IDEAL IDEAL SCENE

Have you realized that if you have an incorrect ideal  scene,  your  program
will be wrong?

In using the Data Series, some evaluators tend to toss off the  ideal  scene
as a sort of afterthought-possibly because it is part of the form of  evals.
To do so can be quite fatal to the success of the eval-and it can result  in
the wrong ideal scene!

So always work out the ideal scene with care. THAT is what  you  are  trying
to achieve with your eval.

HOMEWORK ON THE IDEAL SCENE

We know that homework may be necessary for the data section.  But  have  you
ever thought that the ideal scene may also require homework?

I recall a ship's galley once that couldn't get itself unscrambled.  So  the
cooks and stewards were sent over on a tour of a  posh  cruise  liner.  They
were amazed at what a real ship's galley could look like. They had  seen  an
ideal scene. Until then they didn't know why they were  being  harrassed  by
the officers. They got it.

If you can imagine Sitting Bull, the famous  Indian  war  chief,  trying  to
evaluate "Queen Victoria's last grand  ball  failed"  as  a  situation,  you
would see that his eval was likely to be rejected. For he wouldn't have  had
a clue what the ball SHOULD have looked like. But, as  Sitting  Bull  was  a
pretty smart Indian, if he had done his homework on the  ideal  scene  of  a
Queen's grand ball, I am sure the eval would not only have  passed  but  the
NEXT grand ball would have been a howling success!

So homework is often quite vital on the ideal scene.

Not only can a person establish what an ideal scene SHOULD be, he  can  also
establish what it COULD be and that may be a long way ahead of old  accepted
ideal scenes.

EVALING FROM THE IDEAL SCENE

It is possible (and often very necessary) to "evaluate backwards";  that  is
to say, to START with the ideal scene.

If you  have  something  you  want  to  bring  about-some  ideal  scene  you
desireand simply shuffle off toward it, don't be surprised if you never  get
there or achieve it. The realities and conflicts of life  have  a  habit  of
intervening. What they call the "vanishing illusions of youth" occur  simply
because youth, thirsting to be a movie star or a great lover or  a  fireman,
seldom sits down and does a thorough eval  first  that  finds  the  barriers
that will permit a program that will work.

If one sets up an ideal scene as an ambition-such as the org booming-it  may
just stay an ambition one remembers in his old age  instead  of  a  concrete
occurrence UNLESS one does a backwards eval on it.

One does one of these "backwards evals" without any situation  in  mind.  In
other words, one does not have to have a sit in order  to  start  the  eval.
(And you are aware of

140



course that most evals begin because a sit leaps up and has to be  handled.)
So, without a sit, one simply puts down the ideal scene one  is  hopeful  of
achieving. Then he finds the most glaring departure from  the  ideal  scene.
That is his sit. And he also may find as he works that he gets several  sits
and several versions of the principal ideal scene which in turn  become  THE
ideal scene he had in mind in the first place.

There is a simple view of it: Just set the ideal scene,  find  the  furthest
departure from it, use that as the sit and then, gathering data and doing  a
regular eval, he will find WHY that ideal scene  hasn't  occurred  or  won't
occur, then he can realistically program it to handle and  the  ideal  scene
WILL occur if the program is done.

One can take the more complex view of it: One sets the  ideal  scene,  finds
the furthest departure from it, follows a data  trail,  discovers  there  is
more than one sit and so has a multiple-sit eval, each one with a  different
version of the ideal scene but these ideal scenes adding up to his  original
concept of the ideal scene.

Let us take a simple  example.  The  major  purpose  of  a  directive  to  a
salesman is "Sell the ballpark." Now if we simply told him to  do  that,  we
would be relying on his charm and luck and while these might be  quite  good
we are likely to get a failed salesman. A more sensible  approach  would  be
to convert that major purpose to the ideal scene of "The ballpark sold at  a
profit." Then find and take the  widest  departure  from  that  ideal  scene
which possibly is "We have been trying to sell the ballpark  for  two  years
with no takers." Then we employ the standard steps of the  Data  Series  and
find the real Why, which could be  "Nobody  ever  compiled  a  list  of  the
people who buy ballparks or approached them." And we do a program  based  on
the Why and ideal scene and THEN we can give the salesman that  program  and
that major target and BANG, we sell the ballpark at a profit.  As  it  could
have been any one of a  thousand  Whys  we  could  have  gotten  a  thousand
different programs, all of which  would  probably  have  failed  BECAUSE  no
evaluation was done.

So do not send to find why missions fail or projects collapse.  Just  notice
that one didn't take what was desired and make it into an  ideal  scene  and
evaluate it backwards.

To always need a catastrophic sit in order to evaluate is to  ask  for  more
and more sits to  occur  as  it  is  sort  of  an  outpoint-correct  but  by
evaluation. Of course, when sits exist, it is vital to  evaluate  them.  But
realize also that when you don't see what you consider an ideal  scene,  you
can simply set it and evaluate back from it as above.

And realize, too, that this is a great way to make dreams come true.

L. RON HUBBARD

Founder

LRH:clb.nf Copyright 10 1979



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 19 JANUARY 1979

                                  Issue 11

Remimeo

Data Series 47

CANCELLATION

BTB 2 Sept 72R Issue II, WHY FINDING DRILL-TWO, is CANCELLED.

The Personal Office of Evaluation and Execution, Cramming Officers, AVC and
any other evaluating activity are not permitted to use this BTB.

This BTB contains false tech and invites verbal tech by the coach who may
or may not already have MUs on the subject of evaluation.

Any entry of this BTB on a checksheet is to be deleted and students
informed of such.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:clb.nf

142



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

1 10

      HCO POLICY LETTER OF 7 JUNE 1979R

      Issue I

Remimeo     REVISED 14 JUNE 1979

(Revisions in this type style)

Data Series 48

DATA SERIES PLs, USE OF

It is hereby illegal to randomly place Data Series PLs on a checksheet of
any kind.

The Data Series PLs must be studied in sequence.

L. RON HUBBARD

Founder

Assisted by

LRH Pers Comm

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:JM:dr.kim.nf

143



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 DECEMBER 1979

Remimeo DSEC Evaluators

Data Series 49

EXECUTION OF EVALUATIONS

It is hereafter mandatory that every eval must carry in the policy section
the following statement:

NOTHING IN THIS EVAL MAY BE INTERPRETED TO VIOLATE OR ALTER  OR  CHANGE  HCO
PLs OR HCOBs. ANYONE EXECUTING A TARGET IN THIS EVAL IN SUCH  A  WAY  AS  TO
VIOLATE OR ALTER ANY HCO PL OR HCOB WILL  BE  ACTIONABLE  BY  COMM  EV.  ANY
RECOMMENDATION IN THIS EVAL OR CHANGE OF POLICY OR TECH MUST BE  CLEARED  BY
THE WATCHDOG COMMITTEE (WDC) BEFORE BEING PLACED IN THE  EVAL  AS  A  TARGET
AND RESULTING PL OR BULLETIN MUST BE REVIEWED  BY  THE  FOUNDER  PERSONALLY.
ALL DATA OR HANDLINGS WHERE THEY REFER TO POLICY OR BULLETINS MUST GIVE  THE
POLICY OR BULLETIN NUMBER AND ITS LOCATION AND TEXT VERBATIM.

Any violation of this policy will be actionable by Comm Ev. This policy is
retroactive to all published evals whether they are remimeoed or not.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:dr.nf

144



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 3 SEPTEMBER 1980

                                   Issue I

Remitneo

      (The contents of this policy have been taken from an LRH

      OODs item of 15 May 71 and are now being issued in policy

      form to bring forth the wealth of data formerly issued in the

      Flag "Orders of the Day.")

Admin Know-How Series 38

Data Series 50

Esto Series 42

Org Series 42

OUT OF SEQUENCE

Out of sequence is the  most  common  outpoint  according  to  a  survey  of
despatches and projects a couple months ago.

The thing which gets most commonly out of sequence is  the  pattern  of  the
Key Ingredients as covered in HCO PL 14 Sept 69.

The correct  sequence  for  a  piece  of  work  would  be  to  plan,  obtain
materials, and then work.

If this is  made  into  work-plan-materials,  everyone  works  hard  but  no
product will result.

As production is what morale depends upon, a smash of morale would occur  if
the Key Ingredients were thrown out of sequence.

Omitted data runs a close second to out  of  sequence  as  the  most  common
outpoint.

When the sequence of a work  project  is  thrown  out  and  then  data  like
technology of how to do it is omitted, a group could  work  itself  half  to
death and have down morale as well from no product.

The right way to go about it is to have the tech of a job, plan it, get  the
materials, and then do it. This we call organizing.

When this sequence is not followed, we have what  we  call  cope.  Too  much
cope will eventually break morale. One  copes  while  he  organizes.  If  he
copes too long without organizing he will get a dwindling or no product.  If
he organizes only he will get no product.

Coping while organizing will bit by bit get the line and  action  straighter
and straighter and with less work you get more product.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS

ofthe CHURCHES OF SCIENTOLOGY BDCS:LRH:SA:bk.nf , 1980

[Note: The original mitneo copies of this policy letter incorrectly  labeled
it as "Admin Know-How 36" which has been corrected above.]

145



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 2 SEPTEMBER 1980

Rernitneo

                          (Originally LRH OODs item

                               of 6 June 1970)

Data Series 51

PERPETUATING AN ORDER

Several recent instances of abuse of orders or misuse have appeared lately.

Giving an order for a given TIME does not make a perpetual order of it.

Example: "Put the box on the deck." Interpretation, "This box can't be
stowed away because it was ordered to be put on the deck last year. So we
always put boxes on the deck and that's why you can't walk across the
deck."

An order given to fit one situation that is extended to all situations is
an outpoint of magnitude and is the source of arbitraries.

Judgment is actually the ability to reach a conclusion without entering
outpoints

into it.

      L. RON HUBBARD

      Founder

      Compiled and issued by

      Sherry Anderson

      Compilations Missionaire

BDCS:LRH:SA:bk.nf      for the

, 1980      BOARDS OF DIRECTORS

      of the

      CHURCHES OF SCIENTOLOGY

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 23 SEPTEMBER 1980

                                  Issue 11

Remimeo

                          (Originally LRH OODs item

                             of 30 October 1973)

Data Series 52

FACTS

There is a world of difference between hopeful opinions and facts.

One can only operate on facts.

It is better to have real situations in clear view and being handled than
hidden and left to blow one's head off unexpectedly. One can confront real
facts and real situations far better than imaginary fantasies. In facts and
real situations there is at least something to confront, not a vague unease
of blind hope.

Things only go sane when facts and situations are in view.

      L. RON HUBBARD

      Founder

      Compiled and issued by

      Sherry Anderson

      Compilations Missionaire

BDCS:LRH:SA:dr.nf      Accepted and approved by the

, 1980      BOARDS OF DIRECTORS

      of the

      CHURCHES OF SCIENTOLOGY

146



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 6 OCTOBER 1980

                                  Issue IV

Remimeo

                          (Originally LRH OODs item

                             of 4 December 1971)

Data Series 53

OUTNESSES

How far off policy can a course get?

Why, not to gather up the students at all! Just let them  be  all  over  the
place and no classroom.

When you try to  find  the  WHY  of  some  situations  that  won't  resolve,
remember the outness is usually so HUGE that it isn't easily imagined.

Like: I wonder why Division 6 in that org doesn't  function.  So  you  order
checksheets and projects and almost everything else you can  think  of  with
no improvement. And then you find out there is not a single  person  in  the
division!

Like: A big org was having income and delivery trouble a couple  years  back
and after all sorts of work on it, it was found there was only I  person  in
the whole Tech Division! But 89 on staff!

The outnesses that won't resolve are usually big  ones  and  are  omissions.
And not being there they aren't seen as there's nothing to see.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.nf , 1980

147



            CANCELLED

HUBBARD COMMUNICATIONS OFFICE See footnote

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 7 DECEMBER 1981

Remimeo

Data Series 54

EVALUATION

(LRH OODs item from 27 June 1974)

Evaluation is a solid brand new technology. It  is  contained  in  the  Data
Series. It is a high skill. An evaluator takes very hard training  and  lots
of practice and a purity of view that has not previously existed.

At this writing it is doubtful if there  are  half  a  dozen  truly  skilled
evaluators on the planet. There are a few hundred who  know  of  the  system
and can use it to some degree. There are a few thousand who know  the  title
of it and use some of its words  loosely.  More  are  being  made.  For  the
direct observed results in using the system  are  incredibly  improved  over
and above any past effort to resolve organizational,  social  or  any  other
type of problem.

A good evaluation gives the magic key to open the road to betterment in  any
endeavor. From it alone comes the diamond-valued program  which,  done  step
by step, will take one forward to certain result.

While evaluation is as yet so little known that it can be looked on  by  the
uninitiated as just another program, or something you write up because  "you
know the Why" of the situation, respect is growing as evidence of its  magic
increases and awe has begun to appear here and there where black  night  was
turned to broadest day.

So where there were half  a  dozen,  there  will  be  many  dozen.  And  any
planner, command or policy-making personnel who cannot use the  Data  Series
are very likely to fail in this organization.

Based on the works of

L. RON HUBBARD

Founder

Accepted and issued by

WATCHDOG COMMITTEE

for the

BDCSI:LRH:WDC:bk.gm    BOARD OF DIRECTORS

, 1981      of the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

[Note: This policy letter has been cancelled by HCO PL  7  Dec.  1981,  DATA
SERIES 54 EVALUATION CANCELLED which reads as follows:

"HCO PL 7 December 1981, Data Series 54, EVALUATION, is hereby cancelled  as
it was erroneously issued as the wrong issue type per HCO  PL  24  Sept.  70
RA, ISSUES, TYPES OF and HCO PL 5 Mar. 65, Iss II, POLICY, SOURCE OF.

It is being reissued as a C130, C130 731 INT, EVALUATION."]

148



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 7 MARCH 1972

Remimeo     (Revised 13 Apr 72)

                      (Cancels HCO P/L 8 Feb 72 of same

                     title which was only an ASHO pilot

                       and original HCO PIL 7 Mar 72).

                        Establishment 0 er Series IR

                                     Vic

THE ESTABLISHMENT OFFICER

PURPOSE

The Establishment Officer system evolved from the Product-Org  system  where
it was found the HAS alone could not  establish  the  org.  The  Product-Org
Officer system is entirely valid  and  is  not  changed,  Tapes  up  to  and
including No. 7 of the Prod-Org system (also  ca//ed  the  FEBC  tapes)  are
correct From No. 8 onward, the Prod-Org  tapes  are  replaced  by  the  Esto
Series tapes. It is important to know that when the Org Officer  is  removed
from a unit "because it now has an Esto" it  will  practically  destroy  the
unit and crash its stats. Taking the Org Officer out of a  division  or  org
and making him the Esto is a guarantee of a crash. The Esto is an  extension
of the original HCO system as an Esto performs a// the functions of HCO  for
the activity to which he is assigned PLUS his own tech of being an Esto.

The purpose of Establishment Officers  is  to  ESTABLISH  and  MAINTAIN  the
establishment of the org and each division therein.

The term "Esto" is used for abbreviation as "EO" means Ethics Officer.

It has been found that the whole reason for any lack  of  prosperity  of  an
org is INTERNAL. The surrounding area of the public has very  little  to  do
with whether stats are up or down. An org, by "delivering" out-tech and  its
own conduct, upsets its area but it can also straighten it out PROVIDING  IT
DOES ITS JOB. So this too is an internal cause.

Thus if an org is well established so that each staff member  is  doing  his
exact function, stats will go up and the org will  prosper  because  it  has
been handled internally

All booms and depressions of an org are due to its being expertly  built  up
and then, having a peak period, is not maintained in  that  well-established
condition and disintegrates.

In the vital flurry of getting the product and expanding,  the  org  becomes
disestablished.

In the Product-Org Officer system of 1971 it was  found  uniformly  that  as
soon as the org began to boom,  the  HAS  was  wholly  unable  to  establish
rapidly enough and the boom collapsed. HCO  was  too  few  to  keep  an  org
established even when the HCO was  manned  because  THEY  WERE  NOT  WORKING
INSIDE EACH DIVISION.

The answer to these shortcomings is the Establishment Officer  system.  This
preserves the best in the Product-Org system and  keeps  pace  with  product
and expansion.

A well-trained, hard-working Esto  in  a  division  has  proven  to  be  the
miracle of org prosperity.

The system has already been tested and is in successful operation.

Establishment consists of quarters,  personnel,  training,  hatting,  files,
lines, supplies and materiel and all things necessary to establishment.

149



      Commanding Officer or Executive Director (coordinates)

      Product Officer (operates org)

      Org Officer (organizes for Prod Off)   0

            OQ

Executive Establishment Officer (operates Estos)        Cr

            C1.

Exec Esto Org Officer  combined   2)

      Esto Establishment Officer       M

            hat  w

      (Esto Course Supervisor)         1+

in

(Div Secs are in charge of Div and are Product Officers)

                                  El

                                  CD

7     2     3    4     5    6

            Dissem     Treas      Tech Qual  Dist       0

LRH Comm    HAS  Sec   Sec  Sec   Sec  Sec   -    R     - 0

DIV 7 ESTO  HCO ESTO   DEO  Tr EO TEO  QEO   PEO             0

0

CIO or ED Foundation

Org Off Fnd

                 Dissem     Treas Tech Qual  Dist

      LRH Comm   HAS   Sec  Sec   Sec  Sec   Sec

      Fnd   Fnd  Fnd   Fnd  Fnd   Fnd  Fnd

      Fnd Div    Fnd HCO    Fnd   Fnd  Fnd   Fnd  Fnd

      7          Dissem     Treas Tech Qual  Dist

(Same Esto covers same Div Day & Fnd.)



PRODUCTS

To understand what the Esto system is, you  have  to  understand  first  and
foremost the meaning of the word "PRODUCT " (The whole  system  breaks  down
where this one word is not understood and not understanding  this  one  word
and failing to get it understood has been found to be the  barrier  in  most
cases.)

PRODUCE (verb) = To bring into existence, make; to bring about; cause.

PRODUCT  (noun)  =  Someone  or  something  that  HAS  BEEN   brought   into
existence,, the end result of a creation; something or someone who has  been
brought into existence.

If you really know that definition you can then look over  HCO  PIL  29  Oct
1970 Org Series  10.  In  this  we  have  (1)  establishing  something  that
produces (Product 1), (2) operating that which produces in order  to  get  a
product (Product  2),  (3)  repairing  or  correcting  that  which  produces
(Product 3), (4) repairing or correcting that  which  is  produced  (Product
4).

Now in order to get an org there and make money and eat  and  get  paid  and
things like that, these things like products have to be understood  and  the
knowledge USED.

If we try to operate  an  org  that  isn't  there,  or  repair  it,  nothing
happens. No stats. No  money  The  Product  Officer  and  Org  Officer  have
nothing to run. They're like a pilot and  copilot  with  no  airplane.  They
don't fly.

So an Establishment Officer is there to put the airplane there AND  get  the
pilot and copilot to  fly  it  well,  without  wrecking  it,  to  everyone~3
benefit

So, the Establishment Officers put the org there  to  be  run  and  put  the
people there to run it  so  they  run  it  well,  without  wrecking  it,  to
everyone's benefit

POSTS AND TITLES

The org is commanded by the Commanding Officer (SO orgs)  or  the  Executive
Director (non-SO orgs). In the  triangular  system  of  the  Flag  Executive
Briefing  Course  (FEBC)  (Product-Org  Officer  system)  the  C/O   or   ED
COORDINATES the work of the  Product  Officer,  Org  Officer  and  Executive
Esto.

In most orgs the C/O or ED is also the PRODUCT OFFICER of the org  which  is
a double hat with C/O.

The Product Officer controls and operates the  org  and  its  staff  to  get
production. Production is represented by  the  gross  divisional  statistics
and valuable final products of the org.

The ORG OFFICER assists the Product Officer. He gets  production  lined  up,
grooves in staff on what they should be  getting  out  and  makes  sure  the
Product Officer~3 plans are executed.

(The duties of C/O or ED, Product Officer and Org  Officer  are  covered  in
the FEBC tapes 1 to 7.)

THE EXECUTIVE ESTABLISHMENT OFFICER is the one who puts the org there to  be
run.  He  does  this  by  having  Establishment  Officers  establishing  the
divisions, org staff and the materiel of the division. He is  like  a  coach
using athletes to win games. He sends them in and they put  their  divisions
there and maintain them. They also put there somebody to WORK them.

The EXECUTIVE ESTABLISHMENT OFFICER ORG OFFICER (Esto Org Officer) is the  E
Esto~3 deputy and handles his programs and the personal side of Estos.

The ESTABLISHMENT OFFICER'S ESTABLISHMENT OFFICER (the Estot  Esto)  is  the
one who trains and hats and checks out Estos and establishes the Esto

151



system. He also runs the Esto course that makes  Estos  and  is  the  Esto's
Course Supervisor. In practice, the hats of Esto  Org  Officer  (above)  and
Estot Est Officer are held as one hat  until  an  org  is  very  large.  The
person who holds this post has to be a very good Course Supervisor who  uses
study tech like a master as his flubs would carry  through  the  whole  Esto
system.

An  ESTABLISHMENT  OFFICER  IN-CHARGE  is  an  Esto  who  has  Establishment
Officers under him in an activity that has 5 or less Estos and  does  duties
comparable to an Executive Esto for that activity.

A CHIEF ESTABLISHMENT OFFICER + DIVISION is an Esto who, in a division,  has
Establishment Officers under him due to the numerousness of the division.

A  LEADING  ESTABLISHMENT   OFFICER   +   DEPARTMENT   is   a   departmental
Establishment  Officer  who  has  Section  Estos  under  him  due   to   the
numerousness of the section.

An ESTABLISHMENT OFFICER + SECTION is an Establishment Officer of a  section
where there is a departmental and divisional Esto.

The divisional Establishment Officers are as follows.  If  they  have  other
Estos under them in the division the title CHIEF is  put  in  front  of  the
title.

THE DIV 7 ESTABLISHMENT OFFICER (Div 7 Esto) for Division 7,  the  Executive
Division. He is not "The Executive  Esto."  He  carries  out  all  the  Esto
duties for this division.

THE HCO ESTABLISHMENT OFFICER (HCO Esto) establishes and maintains HCO.

THE DISSEMINATION ESTABLISHMENT OFFICER (DEO) establishes and maintains  the
Dissem Division.

THE TREASURY ESTABLISHMENT OFFICER (Tr EO)  establishes  and  maintains  the
Treasury Division.

THE  TECHNICAL  DIVISION  ESTABLISHMENT  OFFICER   (TEO)   establishes   and
maintains the Tech Division. This division amongst  all  the  rest  is  most
likely to have other Estos in the division.

THE QUALIFICATIONS ESTABLISHMENT OFFICER  (QEO)  establishes  and  maintains
the Qual Division.

THE  DISTRIBUTION  ESTABLISHMENT   OFFICER   (PEO   for   Public   Division)
establishes and maintains the Distribution Division.

The Exec Esto and Esto Org Officer and the Estols Esto and Esto  course  are
org boarded as in Dept 2 1.

The Estos themselves are in their own assigned divisions.

The C/O or ED, Product and Org Officer are org boarded in Dept 19.

HEAD OF ORG

The head of the org is the Commanding Officer or Executive Director.  He  is
usually also the PRODUCT OFFICER. He is senior to the Exec Esto.

DEPUTY C/O OR ED

The C/0's or ED's DEPUTY handles the program functions of the C/O or ED  and
is the orgt Org Officer.

He ranks with the Exec Esto.

152



HEAD OF DIVISION

The head of a division is  the  DIVISIONAL  SECRETARY.  He  is  the  PRODUCT
OFFICER of his division. His boss is the C/O or ED.

He is senior to the divisional Esto or Chief Esto.

He is NOT the divisional Esto~3 boss. The E Esto is.

DEPUTY DIVISION HEAD

The DEPUTY SECRETARY of a division is the Org Officer of that division.

He handles the programs of the division for the secretary.

He ranks with the divisional Esto or Chief Esto.

DEPARTMENT DIRECTOR

He is the PRODUCT OFFICER OF HIS DEPARTMENT.

The divisional Esto is senior to him.

The departmental director is senior to an Esto posted to his specific
department.

SECTION OFFICER

The officer in charge of a section is the PRODUCT OFFICER of that section.

He is junior to all Estos except an Esto posted directly to his specific
department.

STAFF

Staff members other than those who are Estos are all  considered  PRODUCT  2
and 4 PERSONNEL from the viewpoint of the Esto whose products are  1  and  3
(see above or Org Series 10 HCO PIL 29 Oct 70).

TEST

The test of the  successful  Esto  is  whether  he  increases  QUANTITY  and
QUALITY of PRODUCT TWO PER STAFF MEMBER AND AN ABSENCE OF  DEV-T  (developed
or unnecessary traffic).

SMALL ORGS

An Esto In-Charge in a small org (2 to 5 staff not counting Estos) would  be
one of two Estos.  He  would  handle  the  Esto  system  for  that  org  and
Divisions 7, 1 and 2 and the other Esto Divisions 3, 4, 5 and  6.  He  would
also run the Esto course as well as work the Estos.

With trained Estos actually functioning the production  of  this  small  org
would increase and one would have an evolution leading to an Esto  I/C,  one
Esto for 7, 1 and 2 and another for 3, 4, 5 and 6.

Further evolving there would be an Esto I/C, one for 7, 1 and 2, one for  3,
4 and 5 and another Esto for Div 6.

With additional expansion there would be an Esto I/C, one for 7,  1  and  2,
one for 3 and 5, one for 4 and one for 6.

Additional expansion would have an Esto I/C, one for 7 and  1,  one  for  2,
one for 3 and 5, one for 4 and one for 6. This reaches  the  stage  of  five
Estos for one Esto I/C.

We now upgrade the system to an Exec Esto and a  deputy  and  one  Esto  per
division.

153



Almost at once Tech will need a Chief TEO and a TEO. Then a  Chief  TEO  and
three Leading Estos for 4.

The system goes on evolving. One Esto to ten staff is  the  maximum  allowed
at this stage.

BUREAUX

Where bureaux are combined with the service org  the  divisional  Esto  also
has the duties of the bureau establishment.

In such a case there is an OPERATIONS ESTABLISHMENT  OFFICER  in  charge  of
the four operations bureaux which combined make up  the  Operations  Bureau.
He, as expansion occurs, will shortly become a  Chief  Esto  for  Operations
(or Chief Operations Esto) with an Esto in each  bureau-the  Action  Leading
Esto; the Data Leading Esto; the Management Leading Esto; and the  Ext  Comm
Leading Esto.

RULE OF EXPANSION

The Esto system may not be expanded nor may  the  org  be  expanded  without
comparable expansion of GI, delivery, completions and success statistics.

The quality and skill of Estos in acquiring  personnel,  training,  hatting,
supplying, FP conduct and other duties is directly reflected in  statistical
increase of GI, delivery, success and VIABILITY.

ESTO TRAINING

The  EXEC  ESTO  (or  Esto  I/C)  is  responsible  for   the   quantity   of
establishment done and the quality and performance of all  his  Estos.  EXEC
ESTOs or ESTO I/Cs are trained on Flag or as designated by Flag.

Exec Estos or Esto I/Cs are usually granted the right to  train  Estos.  For
this they must have the packs and equipment. The actual training is done  by
their Esto Org Officer or when one exists, the Esto~3 Esto.

The actual hatting and training of Estos comes under the  Esto~3  Esto,  the
Esto Org Officer generally wearing this hat

In a crush emergency in any one of the mentioned  divisions  the  EXEC  ESTO
goes in on Divs 7, 1 or 2 and the Deputy Exec Esto goes in on  Divisions  3,
4, 5 and 6.

An Esto usually works the full day  less  conference  time  and  studies  an
additional 5 hours minimum.

Where there is a Foundation, the  same  Estos  as  the  Day  org  cover  the
Foundation as well until both Day and Foundation are  too  large  to  be  so
handled, at which time a Foundation begins a separate  Esto  function  under
its own Esto //C. When a//  Foundation  divs  are  separately  covered,  the
Foundation has its own Exec Esto.

TRAINING OUTLINE

A full training outline of the skills required in an Esto follows:

An Exec Esto should be ideally a full FEBC. This  covers  the  OEC  and  the
Product-Org Officer system.

An Esto //C would have to know the OEC.

In addition to the above would be added these specific requirements:

Primary CORRECTION Rundown (HCOB 30 Mar 72).

Word Clearer-able to handle a meter and do Method 2  and  Method  4,  assess
prepared lists and do good TRs.

Vol 0 OEC (if not done on the OEC).

154



Vol 1 OEC (if not done on the OEC). Org Series PlLs Personnel Series PlLs
Data Series PlLs PR Becomes a Subject (FEBC tapes) Mini Course Super Hat.
(Full HPCSC for the Esto~s Esto.) ARC triangle materials Dianetics 55! FP
policy (finance pack) PTS phenomena HCOBs DB and SP HCOBs and PlLs
Psychosis HCOBs HCO investigatory tech Establishment Officer Tape Series
Establishment Officer Series PlLs LRH ED 174 INT (1972) HCO PIL 9 April 72

There is a difference in what the Esto himself has to know to be hatted and
what he must teach in his division. These are TWO different bodies of
knowledge.

The Esto must know all the hats and valuable final products of any division
he is hatting.

He should know the Product-Org Series tapes.

He should know quarters and housing materials.

He should know the operating manuals and how to operate any machine in the
division he is establishing.

On ships he should know the FOs.

Any FOs, FSOs and CBOs that may apply in a bureau.

The Esto becomes totally proficient in his own hat and makes others
proficient in theirs. He has to be able to read and pick up data on
another~s hat very rapidly.

CASE REQUIREMENTS

      (Not necessarily in pgm order)

TRs the Hard Way

Admin TRs

OCA not below center line

Physically well

Case gain

C/S 53 to F/N on list

If drugs full Drug RD

GF 40RR to F/N on list

The HAS Rundown

F/N on White Form

Study Corr List

WC No. I

HATTING CYCLE

The cycle of hatting of Estos and of staff members is HAT some and get
production, hat more and get production, hat more and get production. Hat
to total specialization, get production. Hat to more generalized skill and
get production. Hat an activity until it can do own and everyone else's hat
in the activity and get production.

Quarters, supply, equipment, space all follow this same gradient. Get it
in, get it producing, get more in, get it producing.

155



ESTO TRAINING

An Esto has 2 hats: (A) his own hat as an Esto in which he must  be  expert,
(B) the hats and skills he is grooving in on others.

The most skilled Esto learns his own  job  and  that  of  the  other  fellow
rapidly and thoroughly.

These two hats are separate and must be kept separate.

INVOLVEMENT

The Esto may not involve himself in the  production  cycles  of  a  post  or
division except to learn it himself so he can hat expertly or  get  the  HCO
P/Ls or tech applied to it understood by himself so he  can  hat  and  debug
the post.

The Esto must be an expert on Word Clearing  Method  3  tapes  and  then  WC
Method 4ing them.

He, in Europe, MUST KNOW FOREIGN LANGUAGE TRANSLATED TAPE  HCOBs,  P/Ls  AND
EXPERTISE.

HCO

HCO performs its normal duties per policy. It is not called on to  establish
the whole org, however, but is to back up Estos.

Personnel is obtained through Department I by Estos but these  do  not  have
to depend only on that but must clear personnel and changes through it.

EXEC ESTO's MAA

The Executive Esto has a MASTER-AT-ARMS in a large org.

The  MAA  musters  the   crew,   conducts   any   exercises,   does   ethics
investigations as needful especially by the Exec  Esto  and  helps  hat  the
Ethics Officers of the org. He does not replace these. He does other  duties
assigned.

PRODUCT CONFERENCE

The PRODUCT CONFERENCE is conducted by the C/O or ED  (or  his  deputy).  It
consists of the divisional heads of the org as each of these  is  a  PRODUCT
OFFICER.

It sets and reports on targets.

As the C/O or ED as PRODUCT OFFICER investigates and  does  evaluations  and
writes  programs,  some  of  the  actions  of  the  Product  Conference  are
furnishing data to debug. The Data Series and the OEC and FOs are  the  tech
used. (The primary reason for failures of such a conference  will  be  found
to be [A] operating on wrong WHYs, [B] lack of knowledge of conference  tech
which is mainly do homework for the conference [CSW1 before it  begins,  not
during it and do not monopolize conference time.)

Therefore Product Conference success depends upon

I . Finding and operating on correct WHYs.

2.    Getting targets for valuable final products of each div or department
that exchange with the society around them in return for income.

3.    Ensuring adequate preparation (intelligent programs).

156



4.    Debugging production programs.

5.    Getting DONES, not not-dones or half-dones as they will become hidden
backlogs in the org.

6.    Coming to conference prepared.

7.    Not monopolizing conference.

8.    Actually punctually holding them.

ITIS UP TO THE EXEC ESTO TO HATAND GET THE PRODUCT CONFERENCE OPERATING  AND
COMPETENT

ESTO CONFERENCE

The ESTABLISHMENT OFFICER CONFERENCE is  held  by  the  Exec  Esto  (or  his
deputy).

This conference handles Esto matters, debugs Esto targets worked out by  the
C/O-ED  or  Esto's  projects,  gets  in  reports  of  divisions  and   their
personnel, hatting, supply, spaces, quarters, etc.

The Esto Conference handles financial planning using FP policy in which  the
Esto must be proficient. (FP must be approved by the Treasury  Sec,  Finance
Banking Officer and Assistant Guardian. The org has to  be  run  on  FBO-A/G
allocations and these are the check signers of the org.)

This conference is governed by similar guide rules as a  conference  to  the
Product Conference,

The PRODUCT Conference is senior to the Esto Conference but cannot  overrule
its FP.

PROGRAMS

Estos as well as PRODUCT OFFICERS run on programs.

These are in accordance always with Data Series 23 and 24.

AIDES COUNCIL

An Aides Council or A/Aides (or International Secretary or Assistant
International Secretary) Council is held as

1. A Product Conference or

2. A Program Conference or

3. An Establishment Conference

but never 2 or 3 of these at the same time.

SUMMARY

The Esto system has already proven a success.

It will be successful in direct ratio to its

1.    Staying on policy

2.    Setting no independent policy

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3.    Operating only toward production

4.    Its Estos continuing to train and be well trained

5.    Consistently staying in the division and actively working in it to
establish and maintain, better establish and maintain

6.    Setting an excellent example to staff as competent helpful executives
and staff members.

L. RON HUBBARD

Founder

LRH:ne.nt.rnes.rd.grn

158



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 9 MARCH 1972

                                  Issue 11

Remimeo

Establishment Officer Series 2

HATTING THE ESTO

It will be found that hatting rules and procedures apply to the Esto
himself.

In orgs while under training he himself is hatted and produces  alternately,
doing better and better.

He must NOT be let off hatting until he is fully hatted.

And he shouldn't, especially when being trained in an org by  an  Esto  I/C,
be let off establishing on the excuse he is not yet fully hatted.

IMPORTANCE OF ESTO HAT

It will be found that some Estos back off from an area because "they do  not
know all the tech lines and hats in that area."

The reason they give for this back-off is the wrong Why. They  back  off  or
fumble when they are not hatted as Estos! Not because they  are  not  hatted
on the area's hats.

Just like the housewife who criticizes her neighbor  for  a  cluttered  back
yard while standing in a more cluttered one of her own,  hatting  begins  at
home.

If an Esto knows his business he could  straighten  up  a  huge  corporation
using the Esto system with never a whisper of their business!

It would be tough. But it shows where the importance lies.

There is Esto tech. When it is not known or used,  then  an  Esto  can  just
sink down into a division puzzled and apathetic, thinking its tech  is  what
is bogging him.

He daily sees and talks to people swamped  in  dev-t,  unsure,  nervous  and
wide-eyed with problems and questions.

If an Esto does not at all times KNOW HE IS AN ESTO and ACT LIKE AN ESTO  he
can   easily   slide   into   these   confusions   and   try    to    handle
productionperformance problems that are outside the Esto's line of duty.

FIRST, LAST AND ALWAYS IT IS THE ESTO HAT THAT MUST BE  WORN  IN  ANY  GIVEN
SITUATION.

Thus the A (own hat) and B (div  tech  and  hats)  differences  of  hats  is
important to know.

It's great to know and one should know a division's tech and hats. But  this
is something one learns as he goes along.

It's a matter of THE MOST VITAL IMPORTANCE that  the  Esto  wears  his  Esto
hat.

That's the hat he has to have down cold.

Then he will find that org and division confusion is nothing to him.

HE HANDLES THINGS LIKE THAT!

HE IS AN ESTO!

LRH:ne.rd.gm     L. RON HUBBARD

      Founder



159



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 9 MARCH 1972

                                  Issue III

Remimeo

Estabfishment Officer Series 3

DEV-T AND UNHATTEDNESS

The first thing an Esto runs into in an area that is  not  hatted  is  DEV-T
(developed unnecessary traffic).

People in an org can be  working  frantically,  totally  exhausted  and  yet
produce nothing of value. The  reason  is  that  their  actions  are  almost
totally dev-t.

The WHY of this is UNHATTEDNESS.

The people on the posts do not know their own hats or even if some  do  they
are dealing in the "NOISE" of other people who don't know their own hats.

Few if any of these people know the other hats or duties of the org  and  so
don't know where to go for service or who to approach or despatch for what.

So it's not an org or a division. It's a nonproductive chaos.

The answers are three:

1. Get dev-t understood and

2. Get the staff at least instant hatted at once.

3. Chinese school (staff or div staff all together in front  of  a  big  org
board chanting together the hats, duties and products of the org as  visible
on the org board).

In order to get anything done at all or  even  begin  this  an  Esto  Ethics
Officer function has to be in.

A schedule has to be posted including exercise,  post  time  and  study  and
staff has to be mustered and  handled  at  these  periods.  This  gets  some
awareness of the org group as a team of people with similar purposes.

DEV-T

Dev-t packs are made up. These consist of

HCO P/L 2 Jul 59 "Dev-t-The Delirium Tremens of

      Issue 11   Central Orgs"

HCO P/L 29 May 63 "How to Handle Work"

HCO P/L 21 Nov 62 "Completed Staff Work"

HCO P/L 17 Nov 64 "Off-line and Off-policy, Your Full In-basket"

HCO P/L 31 Jan 65 "Dev-t"

HCO P/L 8 Feb 65 "Dev-t Analysis"

160



HCO P/L 13 Oct 65 "Dev-t Data"

HCO P/L 5 Jan 68 "Dev-t Series, Part of-Overfilled In-basket"

HCO P/L 27 Jan 69 "Dev-t Summary List"

HCO P/L 30 Jan 69 "Dev-t Summary List Additions"

      Issue 11

HCO P/L 27 Oct 69 "Admin Know-How No. 23-Dev-t"

HCO P/L 4 Nov 69 "Dev-t Graphed"

HCO P/L 23 Jul 71      "Telex Comm Clarity-Dev-t Series"

HCO P/L 25 Oct 71 "Comm Routing"

      Issue I

HCO P/L 27 Feb 72 "Exec Series 9-Routing"

HCO P/L 29 Feb 72 "Exec Series 10-Correct Comm"

These packs are issued to staff members and they are required to check out
on them.

Each staff member keeps a dev-t log and writes down the name of anyone he
is getting dev-t from and also issues dev-t chits.

HATTING

The staff at the least are instant hatted at once-place on the org board,
work space, supplies, what his title is and what it means, org comm system,
what he is supposed to produce on his post.

He is gotten producing what he is supposed to produce in some volume at
once.

Hat checklists and packs are verified as there or are gotten ready.

A full hat checkout can then begin.

Courses he needs are done in staff study time.

Actually hat study and checkout is done on the post a bit each day.

This is in fact "on-the-job training" as he is expected to go on producing
while he is being hatted.

ORG BD

Org bds are rapidly gotten up or up-to-date in the org (in HCO) and (full
org bd) in each division.

Each division is Chinese schooled first on its own org bd, then on the org
as a whole, in such a way that they know the duties of divisions,
departments and posts and the flow lines of the org.

Wherever an org or even a division falls apart or slows up, this campaign
is repeated.

161



SAMPLE ORG ED

This is a sample Executive Directive (ED) giving a program written for an
actual

org where the above was done to cure dev-t and get the org hatted and
producing:

ED-   Date-

TOP PRIORITY

Takes priority over all other EDs

(as they can then be gotten done!).

CORRECT COMM PGM

SITUATION:

It has been very difficult to handle the org.

DATA:

A long and intensive collection of data has finally culminated in
discovering, through reports on comm and inspections by showing why the org
appears fantastically busy and overworked while producing very little even
when it was found the org was insolvent.

Ethics has been very heavy for some time and has not led to any spectacular
recovery.

But the comm line reviews and analysis reveal

INVESTIGATION:

The org and all its units are drowning in DEV-T. HCO is even generating it.
This makes an appearance of frantic action and overload while little is
produced.

And an analysis has produced a

WHY:

The org is almost totally unhatted and untrained.

DEV-T comes only from AN UNHATTED UNTRAINED ORG.

S TA TS:

Out the bottom and below the briny bedrock of the sea so far as finished
products per man-hours and as far as GI by reason of the org are concerned.

IDEAL SCENE:

A whole staff and the org fully hatted and producing only correct comm
without dev-t and at work actually producing things of real value which
will exchange for value.

HANDLING:

THE ESTO SYSTEM AND DEV-T P/Ls HANDLE THIS.

I .   Admin Cramming and each ESTO to be furnished with packs of dev-t
policies at once including last Exec Series P/L Routing and new dev-t P/L
Correct Comm. ALL HANDS DISSEM.

162



2.    FULL Esto setup to be gotten on post at once. They go on duty and
part-time train. HAS.

3.    Existing Estos and those to be put  on  at  once  to  hammer,  hammer,
hammer all posts on off-line, off-origin and other points of dev-t  so  they
are UNDERSTOOD. EXEC ESTO.

4.    Big paper org bd with new complement to be gotten up at once in HCO.
HCO ESTO.

5.    Big paper org bds from it to be gotten up in  each  div  and  the  div
Chinese schooled on it. Specializing in the div but also covering the  whole
org so people know where they are and what  each  handles  and  where  other
terminals in the org are so they can properly route to or  go  to  them  for
the exact service of that exact post. DIV ESTOs under EXEC ESTO.

6.    Straighten out the comm lines of each post. EXEC ESTO. DIV ESTOs.

7.    Report to his div Esto (see org  bd)  or  Ethics  Officer  any  person
originating off-line, off-origin traffic or failing to  originate  from  his
post paper or body or remark. Report by "Dev-t Chit." EVERYONE IN THE ORG.

8.    Send flagrant offenders to Admin Cramming. EXECUTIVES.

9.    Put in

1. Instruct, and if no improvement,

2. Cram, and if no improvement,

3. Retrain and if no improvement,

4. Offload

where hatting continues to fail to  produce  rapid  comprehension  of  dev-t
and/or persistent inability to actually DO his hat. Court of Ethics or  Comm
Ev on request to remedy any injustice. ESTOs.

10.   Excuses concerning hatting and arbitraries like  "only  study  hat  in
hatting college" to be wiped out and any barriers to getting on-policy,  on-
FO-FSO wiped out by ethics action or cramming. ESTOs.

11.   Instant hat every staff member. DIV ESTOs.

12.   Chinese school every division. DIV ESTOs.

LETS MAKE THIS A CRACK ORG WE CAN BE PROUD OF!

EXECUTIVE DIRECTOR

The above program can be completed in a few days.

It is followed by further programs to get in lines of the org, full
hatting, and proper comm setups for each staff member, etc.

If the program falls out or dev-t flares again, (A) REHAT Estos, and (B) do
the program once more.

The org will come right and begin producing PRODUCTS WHICH EXCHANGE FOR
VALUABLES.

163



The org will become solvent.

Only the Esto system makes such a program possible.

We have long had the tech as you can see by the P/L dates.  Dev-t  tech  has
existed since the mid-1950s. But it could not be gotten  in  swiftly  enough
to make a startling change in the org morale or stats until  ESTOs  were  on
post in an org.

If it does not go in rapidly even with Estos then some of the Estos are  not
well enough or firmly enough hatted as ESTOs and the answer of an EXEC  ESTO
or Esto I/C is  to  very  rapidly  cram  his  Estos  or  following  the  (1)
instruct, (2) cram, (3) retread,  (4)  offload  pattern,  improve  his  Esto
team.

Fully done the program works like a beautiful breeze bringing  peace  and  a
cheerful staff.

L. RON HUBBARD

Founder

LRH:ne.gm Copyright cl 1972

164



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 10 MARCH 1972

Remimeo

Establishment Officer Series 4

EXEC ESTO HATTING DUTIES

An Esto I/C or Exec Esto has as his primary duty the  hatting  and  handling
of ESTOs.

It will be found that an  Esto  tends  to  get  pulled  into  operating  the
division when (a) he is too new at it and (b) he fails to establish.

Such hatting actions usually require a repeat checkout or  harder  assertion
of the P/Ls relating to HCO such as "musical chairs ... ..  don't  unmock  a
working installation." Such P/Ls cover the host  of  errors  that  HCOs  and
HASes have made.

Usually the  Esto  In-Training  just  doesn't  know  the  material  or  even
believes it's all "old" because it came before the Esto  system.  The  prime
cause of alter-is is just not knowing or understanding the material.

The system of (1) instruct, (2) cram, (3) retread, applies to Estos In-
Training.

WHYs

Like in auditing the situation may look so desperate that  unusual  remedies
are thought to be needed.

The skill of an Esto in rapidly finding a WHY (as in investigation tech  and
the Data Series) and quickly handling is what makes a real Esto.

Dreaming up new solutions not  in  policy  usually  comes  from  not  really
investigating and finding a WHY.

Finding WHYs is like seeing real gold for the first  time.  Until  a  person
really finds a REAL Why that promptly unravels the whole  knot  he  is  like
the tourist in the gold field who can be sold any yellow  glitter  as  being
gold. But when he sees real GOLD for the first time he never  after  can  be
fooled-

Usually first WHYs an Esto I/T finds about a post or a class or a  line  are
usually so shallow and so narrow  that  they  are  just  dev-t.  They  would
resolve nothing.

The Exec Esto will have to keep an Esto I/T at it,  looking  again,  looking
again, looking again.

An Esto I/T will first think of  removals.  Then  he  will  think  of  doing
musical chairs. Then he will think of having  only  the  BEST  people.  He's
going along the old worn ruts of human prejudice and impatience. He  is  not
really looking for a WHY there in front of  him  but  at  his  or  another's
dreams.

An Esto I/T usually buys whatever WHY the person on the post gives  him.  He
mistakenly believes "but he has more experience with the scene"  and  "I  am
so green on this scene that. . . ."

This piece of tech applies IF THE WHY THE PERSON OR AREA HAS WERE THE  RIGHT
WHY THERE WOULD BE NO TROUBLE THERE.

165



This comes from "the problem a pc thinks he has isn't the  problem  he  has.
If it were it would as-is and he wouldn't have it."

WHYs are obtained by observing the obvious (obnosis) closely enough to  find
the biggest OUTPOINT that explains all the nearby outpoints (always  a  lack
of production or low production per high man-hours).

WHYs are traced back from the PRODUCT, its absence  or  lack  of  volume  or
quality.

So an Esto I/T has to be sent in again and again and again  until  he  finds
THE Why. And then the post unsnarls rapidly.

Example: TR Course product horrible, slow and upsetting the  inflow  of  new
people. Esto I/T was ordered to hat the TR Supervisor. After  much  blowoff,
apathy, TR Super in tears, the Esto I/T said HE would take over the  course.
Wrong answer. It couldn't be more wrong. Esto I/T bypassed,  an  experienced
Esto investigated students, Super and area and within about  3  hours  found
it. The Super was so unhatted that What Is a Course?  P/L  was  wholly  out.
The TR students had no packs of their own, could not read those and  weren't
being supervised either and  just  struggled  on  with  the  unhatted  Super
falsely reporting how great the  students  were  doing  (while  they  didn't
finish and wanted to blow).

Now what did this Esto I/T do wrong?

He didn't work out the product: successfully completed exultant students.

He didn't then start hatting the Super with just standard  HCOBs  about  TRs
and supervising.

He didn't check the course as a COURSE against What  Is  a  Course?  P/L  to
know what was missing on it.

Had he just done his job as an Esto he would have found the WHY.

The course, of course, resolved at once and got the product.

BEWARE

A person training to be an Esto himself can be very guilty of dev-t  to  his
senior Esto.

By bringing a problem to a senior without having resolved  it,  HE  CAN  GET
HIS SENIOR UPSET, ALARMED, DESPERATE AND PULLED INTO THE DIVISION!

These solutions of "transfer this one or that," "Comm Ev this one or  that,"
"this situation is so ghastly that" (and there follows  some  wild  solution
that sounds like "stand the pc on  his  head")  are  simply  abandonment  of
standard actions.

As the observation is bad, the Why is not found. Then  the  situation  looks
unusual. So unusual remedies are urged.

And a senior can be dragged right in!

CORRECT ACTION

Anyone handling Estos In-Training has to use the standard action of

1. Get the packs of that post! (or area or div) he's  trying  to  handle  or
proposes the unusual solution for.

2. Look over the policy materials! (May include discard of "former occupant
hat

166



write-ups" and looking into P/L or FO or files for the real materials  about
it. May include Word Clearing 4 or a clay demo or a WHY as to why  the  Esto
can't dig them.)

3. Work out the product of that post! (or course or section or dept  or  div
or even the org). (May require getting the word  PRODUCT  understood  or  Wd
Clearing Method 4 on the Esto I/T, or even the  "Management  Power  Rundown"
or cram on products or any other standard action such as  even  finding  WHY
he can't dig  products.)  (And  it  may  require  "detective"  work  on  the
materials of the post to find out what is continually talked  ABOUT  so  one
can figure out from that what the product would have to be.)

4. Be sure it is the major EXCHANGE product of that post! (or  dept  or  div
or area). (May require reviewing the Esto I/T on EXCHANGE, its P/Ls and  the
Esto tapes.)

5. Check it with the Product Officer! (the head of the dept or div or  org).
(And don't be startled if he has a  cognition  on  it  or  if  he  violently
disagrees with it while  having  his  own  product  wildly  nonexchangeable!
which opens up a whole new situation! Or he may simply  suggest  a  revision
of the wording. BUT THIS POINT HAS TO BE CLEARED  or  the  Estos  will  find
themselves going east while the Product Officers go west!)

6. Go to your area! (This may include making the Esto I/T do  TR  0  on  the
area or running him on bodily reaching and withdrawing  from  it  and  other
drills or even a 3rd party investigation.)

7. Observe the scene! (which may mean having to wait until  it  has  traffic
or action in progress). (It may mean a microphone plant as on an auditor  or
a tape of an interview with a voice start-stop operated  recorder  to  catch
the traffic, but it generally means just  looking  and  comparing  what  one
sees to the key P/L about it or an ideal scene as would have to be in  order
for a product to occur in it.)

8. Find the WHY! (And that means investigation tech and the Data Series.  It
can be formally written up or just there it is!)

9. Get it accepted! (which can mean argument or H, E and R  or  violence  or
blows off post if it isn't the right WHY or the person is  just  plain  SP).
(The right Why brings in GIs almost always. It's usually  as  obvious  as  a
bass drum in the middle of the floor once seen.)

10. Have (him, her or them) GET IT IN! (which can  mean  a  project  written
per Data Series 23 & 24 or it can be just "do it").

11. Straighten up the (spaces, lines, materiel, personnel) indicated by the
WHY.

12. Hat the person (personnel) to get production! (Could mean begin to  hat,
wholly hat, could mean train further, could mean find  the  WHY  that  stops
him or them from being hatted, but it means get better hatting DONE.)

13. Review to find if production increased! (Means look it over again to  be
sure it was the right Why found as a Why must lead to a nearer  approach  to
ideal scene. Usually means INCREASED STATS for the area.)

14. Train the Esto I/T better.

DOGGEDNESS

The protection of an Esto I/C or Exec Esto is his own insistence  along  the
lines of the above.

The moment he comes off of holding  this  line  of  hatting  his  Estos  and
keeping them at it, the less successful he will be.

167



If he doesn't do this,  the  next  thing  he  knows  he  will  be  in  total
exasperation with the org and will be pulled right into it himself.

AUDITORS

We've been through all this before training auditors in '55-'58-Ds of P and
1.

They often had unusual solutions. They also  would  say  they  had  "already
done that" so we had a trick-" What did you do?" And we'd  hear  some  other
thing than what was ordered.

We know all about that.

And today when we apprentice them in orgs, boy they really come out as  real
auditors!

So we know all about getting standard actions really done.

And there IS a thing called standard tech.

And there is a thing called STANDARD ADMIN.

Above is the I to 14 of making a real Esto and thereby a real org.  This  is
really 3rd dynamic auditing for production.

RULE

The EXEC ESTO or his deputy must okay every major action any Esto  means  to
take to be sure it is ON-POLICY, ON-LINES.

HOLD THE FORM

The one thing an Esto I/C or Exec Esto ALWAYS DOES  is  hold  the  form  and
lines of the org.

EQUIPMENT

An Esto I/C or Exec Esto should have a 1-14 checklist with a  blank  at  the
top for the Esto's name and date and time.

When a solution is brought in he enters the Esto's name and date and a note
of it.

Then he or his deputy keeps tabs on it by checking off the dones.

Such an action as 1-14 takes little time, actually. Twenty-four hours is an
AGE.

He will find that some of his Esto I/Ts can't complete them rapidly, a  rare
one can't complete at all. This needs a Why itself. And maybe a retread  or,
that failing, a replacement.

A policy and HCOB library like the Qual library is a  necessity.  You  can't
hold the form of an org with no record of the form.

FAITH

Faith in the system comes first, then faith in  the  Esto  I  /Ts  and  then
faith in the org will prevent a lot of shooting.

But a few right WHYs then  show  that  it  usually  isn't  evil.  It's  just
outpoints. AND THAT THESE CAN BE HANDLED. The real gold of REAL WHYS.

This restores one's faith. Rapidly.

168



SIGN

And on his desk, facing outward, the Exec Esto should have a sign:

                             THE ANSWER TO YOUR

                        OFF-POLICY SOLUTION IS "NO!"

FIND THE WHY.

HAT HAT HAT

An Esto is busy hatting staff, handling lines. He is being hit with weird
solutions. Product Officers talk to them about how it should really be
established (while not themselves producing or getting anything produced).

Someone has to hold the Esto stable as an Esto.

That's the senior Esto of the org.

He hats Estos while they establish. He demands establishment.

And he gets it if he hats, hats, hats Estos and keeps them establishing. He
IS the real holder and expander of the form of the org. Via his Estos.

L. RON HUBBARD

Founder

LRH:ne.gm

169



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 13 MARCH 1972

Remimeo

Establishment Officer Series 5

PRODUCTION AND ESTABLISHMENT

ORDERS AND PRODUCTS

The situation one often finds in an org, after  one  has,  to  some  degree,
conquered dev-t, is that PEOPLE REQUIRE ORDERS.

For years 1 wondered why this was so. Well, 1 found it.

WHEN PEOPLE DO NOT  CLEARLY  KNOW  WHAT  THEIR  PRODUCTS  ARE  THEY  REQUIRE
CONSTANT ORDERS.

To the Establishment Officer, this reflects most visibly in  trying  to  get
program targets DONE.

Some people have to be ordered and ordered and ordered  and  threatened  and
howled at. Then, in a bewildered way, they  do  a  target,  sometimes  half,
sometimes nearly all.

Behind this apparent blankness lies an  omitted  datum.  When  they're  like
that they don't know what their product is or what it adds up  to.  Or  they
think it's something else or should be.

That blankness can invite overts.

It is very seldom that malice or resentment or refusal to work  lies  behind
the inaction. People are seldom that way.

They usually just don't understand what's wanted or why.

Because they don't know what a PRODUCT is!

A whole Ad Council of a downstat org was unable even to define the word.

They had required orders, orders, orders and even then didn't carry them
out.

HAT SURVEY FOR ORDERS

A staff member who requires orders may  also  think  that  any  order  is  a
policy and lasts forever. If you look into hats you will  even  find  casual
"close the  door"  type  of  orders,  given  on  one  occasion  to  fit  one
circumstance are  converted  over  into  STANDING  (continual)  ORDERS  that
forever keep a certain door closed.

An Esto surveying the hats of a unit may very well find all manner  of  such
oddities.

It is a standard Esto action to survey hats.

In hats you will find despatches giving specific orders  or  quoted  remarks
preserved instead of notes on what one has to know to produce a product.

In auditors' hats, directions for 1 specific pc in 1960, never published
and from no

170



tape or correct source, held onto like death like it was to  be  applied  to
every pc in the world!

A dishwashing hat may have orders in it but not how to wash  dishes  rapidly
and well.

This is all a symptom of a unit or activity that  does  not  know  what  its
products are.

DISESTABLISHMENT

Where  you  find  lots  of  orders  kicking  around,  you  will  also   find
disestablishment by bypass, command channels  not  held  and  staff  members
like to take their orders from anyone but those  in  authority-any  passerby
could give them orders.

This is rampant where an executive has not been well on post.

By counting such orders up and seeing who they are from  one  can  determine
the unhattedness of staff, their org bd  weaknesses  and  principally  their
lack of knowledge of their products.

HATTING FOR PRODUCT

If an Esto is to hat so as to get the staff member to get his  product  out,
then the Esto has to know how to clear up "products."

Now an Esto is an Establishment Officer? There  are  Product  Officers.  The
product of an Esto  is  the  establishment.  Then  what  is  he  doing  with
products?

Well, if he doesn't hat so staff members get out products then the org  will
be a turmoil, unhappy and downstat.

Production is the basis of morale.

Hattedness is a basic of 3rd dynamic sanity.

But if you don't HAT  SO  AS  TO  GET  THE  STAFF  MEMBER  YOU  ARE  HATTING
PRODUCING YOU WILL HAT AND HAT AND IT WILL ALL BE IN VAIN. The person  won't
stay hatted unless he is hatted so as to be able to produce.

The Product Officer should be working to get the products out.

So if you don't hat for the product then  the  staff  member  will  be  torn
between two sets of orders, the Esto's and the Product Officer's.

Only when you hat to get product will you get agreement with Product
Officers.

If you are in disagreement with Product  Officers,  then  the  Esto  is  not
hatting to get production.

RIGHT WAY TO

There is a right direction to hat. All others are incorrect.

1.    CLEAR UP WHAT THE PRODUCT IS FOR THE POST AND HAT FROM THERE.

2.    HAT FROM THE TOP OF THE DIVISION (OR ORG) DOWN.

These are the two right directions.

All other directions are wrong.

171



These two data are so important that the failure of an  Esto  can  often  be
traced to violation of them.

You can have a senior  exec  going  almost  livid,  resisting  being  hatted
unless you hat by first establishing what the  product  is.  If  PRODUCT  is
first addressed and cleaned up then you can also hat from the top down.

If this is not done, the staff will not know where they  are  going  or  why
and you will get silly unusual situations like, "All right.  So  you're  the
Establishment Officer. Well, I give up. The division can have 21/2  hours  a
day establishment time and then get the hell out of here so  some  work  can
be done! . . ." "Man, you got these people all  tied  up,  stats  are  down!
Can't you understand. . . ."

Well, if you don't do one and two above you'll run  into  the  most  unusual
messes and "solutions" you ever heard of, go sailing off policy  and  as  an
Esto wind up at your desk doing admin instead of getting your  job  done  in
the division. And an Esto who is not on his feet working in the division  is
worth very little to anyone.

So see where the basic errors lead and

Hat on product before doing anything else and

Hat from the top down.

STEPS TO CLEAR "PRODUCT"

This is a general rundown of the sequence by which product  is  cleared  and
recleared and recleared again.

This can be checklisted for any exec or staff  member  and  should  be  with
name and date and kept in the  person's  "Esto  file  folder"  for  eventual
handing to his new Esto when the person is transferred out of  the  division
or in personnel files if he goes elsewhere.

1.    Clear the word PRODUCT.

2.    Get what the product or products of the post should be. Get it or any
number of products he has fully fully stated, not brushed off.

3.    Clear up the subject of exchange. (See HCO PL 27 Nov 71 Exec Series 3
and HCO PL 3 Dec 71 Exec Series 4.)

4.    Exchange of the product internal in the org. For what valuable?

5.    Exchange external of the valuable with another group  or  public.  For
what valuable? (Person must come to F/N VGIs on these above  actions  before
proceeding or he goes to an auditor to get  his  Mis-Us  and  out-ruds  very
fully handled.)

6.    Does he want the product? Clean this up fully to F/N VGIs or yourself
get E/S to F/N or get an auditor to unsnarl this.

7.    Can he get the products (in 2 above) out? How will he? What's he need
to know? Get him fully settled on this point.

8.    Will it be in volume? What volume? Is that enough to  bother  with  or
will it have to be a greater volume?  Or  is  he  being  optimistic?  What's
real? What's viable?

9.    What quality is necessary9 What would he have to do to attain that?
To attain it in volume?

172



10.   Can he get others to want the product or products (as in 2 above)?
What would he have to do to do this?

11.   How do his products fit into the unit or section or department or
division or the org? Get this all traced.

12.   Now trace the blocks or barriers he may believe are on this line. Get
what HE can do about these.

13.   What does he have to have to get his product out? (Alert for
unreasonable "have to have before he can do" blocks.)

14.   Now does he feel he can get his product or products out?

Signature of Esto or Clearer

NOW he really can be hatted.

BRUSH-OFF

Quickie handling is a very very  bad  fault.  "Quickie"  means  a  brush-off
"lick and a promise" like wiping the windshield on the  driver's  side  when
really one would have to work at it to get a whole clean car.

So don't "quickie" product. If this is poorly done on them  there  goes  the
old balloon. Hatting won't be possible.

Orders will have to be poured in on  this  terminal.  Dev-t  will  generate.
Overt products will occur, not good ones. And it won't be worthwhile.

DISAGREEMENT

There can be a lot of disagreement amongst Product  Officers  and  Estos  on
what products are to be hammered out.

In such a case, or in any case, one can get a Disagreements  Check  done  in
Dept of Personnel Enhancement (who should look up how to do one).

This is a somewhat extreme way to settle an argument and should  only  be  a
"when all else fails."

It is best to take the whole product pattern  of  the  org  apart  with  the
person, STARTING FROM THE BIGGEST PRODUCT OF THE ORG  AND  WORKING  BACK  TO
THE PERSON'S PRODUCT.

Almost always there will be an outpoint in reasoning.

An exec who only wants GI can be a trial as he is violating EXCHANGE. As  an
org is paid usually before it delivers,  it  is  easy  to  get  the  org  in
trouble by backlogs or bad repute for nondelivery. An org  that  has  credit
payments due it that aren't paid maybe  didn't  deliver.  But  Div  III  may
soften up collections for some reason like that and  then  where  would  the
org be?

Vol 0 of the OEC Course gives an excellent background of  how  a  basic  org
works. As one goes to higher orgs, lower orgs are depended upon to  continue
to flow upward to them. (See HCO PL 9 Mar 72 Issue I Finance Series No. I  I
"Income Flows and Pools.")

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A study of Vol 0 OEC and a full understanding of its basic flows and
adapting these to higher orgs will unsnarl a lot of odd ideas about
product.

The Esto has to be very clear on these points or he could mis-hat a person.

Usually however this is very obvious.

PRODUCT OFFICERS

Heads of orgs and divisions have had to organize so long they get stuck in
it.

They will try to order the Esto.

This comes about because they do not know their products or the Esto is not
following 1 and 2 above and does not know his own product.

The Product Officer may try to treat the Esto as a sort of "organizing
officer" or a "program officer" if

A. The Esto is not hatting to get production.

B. The Product Officer is not cleared on product.

So it comes back to the 1 and 2 first mentioned.

You can look over it now and see that if one is not doing these two things,
dev-t, nonviability and orders will occur.

So where you have dev-t, down stats and orders flying around you know one
thing that will resolve it:

SOMETHING WILL HAVE TO BE IRONED OUT ABOUT PRODUCT.

When it all looks impossible, go to this point and get to work on I and 2.

L. RON HUBBARD

Founder

LRH:ne.rd.gm

174



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 14 MARCH 1972

                                   Issue I

Remimeo

Establishment Officer Series 6

SEQUENCE OF HATTING

I.    The Executive Establishment Officer or Establishment Officer In-
Charge hats and keeps Estos working in their areas.

2.    The Estos work in their areas hatting and establishing.

3.    The Product Officers get production.

In that way the org is built or expands stably.  In  that  way  the  org  is
prosperous, the staff is happy.

If some other sequence is being tried or other  things  are  happening  then
the org is likely to be slow, upset or nonviable.

When an org has both an Exec Esto and an Esto I/C or Chief Estos or  Leading
Estos the Exec Esto shall hat (a) all the Estos and  the  I/C  or  Chief  or
Leading Estos especially until they can safely be trusted  to  become  a  IA
relay point in the above where I would be "The  Exec  Esto  hats  all  Estos
I/C, Chief and Leading Estos until they in turn can  hat  and  handle  their
Estos as per 2."

SPEED

Power is proportional to  the  speed  of  particle  flow.  This  applies  to
despatches, bodies,  materiel  and  anything  else  that  can  be  called  a
particle.

What then slows things down?

UNCERTAINTY.

Many things can cause uncertainty. Threats, transfers, rumors.

People want their posts. Leave one without one awhile and see what happens!

Firm establishment, unchanging orders, give certainty.

Nothing however causes more uncertainty than what one's product is.

Or if he can get someone to get out a product.

As certainty becomes firm on the product of a post or org,  the  ability  to
get it out, then all else falls into place and establishment has occurred.

BYPASS

It is easy for an Exec Esto or Esto I/C or any  Esto  to  imagine  he  could
make it all right by just bypassing and doing the product job.  If  he  does
that he fails as an Esto and the staff becomes uncertain as they  feel  they
can't get out the product

SPEED UP

If you want to speed up an org just do the usual 1, 2, 3 as given above.

The org will become certain.

It will speed up.

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ESTO DESKS

Estos who do lots of admin are not being Estos. They belong  on  their  feet
or at best sitting with a staff member hatting him.

When an Esto has given up he begins to do admin.

Of course one has  to  do  org  boards  and  CSWs  for  posting,  lines  and
materials. And one does have despatches. But if these require  more  than  a
couple hours a day something is very wrong.

The Esto is the only one who MUST bring a body.

ASSISTANT MASTER-AT-ARMS

In a very large org there are at least two Esto Masters-at-Arms.

Both have crew mustering, exercises, etc. Their functions can interchange.

But the senior is the Exec Esto's MAA for investigation and finding Whys.

The Assistant MAA is the one who helps handle the Estos and  crosschecks  on
them and helps them and acts as liaison between them and the Ethics  Officer
or HCO terminals of the org.

Estos do NOT go to the HCO Esto  for  HCO  PRODUCTS.  They  go  to  the  HCO
terminals involved or, far better, put it via the Asst Exec Esto's  MAA-"the
Esto's MAA." And he does not go to the HCO Esto either  but  to  the  proper
terminals in HCO.

The Assistant MAA should know at any given moment where to find any Esto  in
the org. This is so he can get them for the Exec Esto or locate them due  to
emergencies.

He is their personal troubles terminal.

He verifies their presence at any muster.

He is in fact keeping the lines in. between the Exec Esto and the Estos.

It is all done by body traffic, not by any despatch.

In an exact division of duties the Senior Exec Esto MAA is  responsible  for
the whole staff as people. And how they influence org form.

The Assistant Esto MAA is responsible for the Estos as Estos on post and  as
people. And how they infuence the Esto pattern of  operations  1,  2  and  3
above.

SUMMARY

Thus the pattern can be held.

If it is, the wins are fantastic.

It is an easy pattern to hold.

It can be done.

ORGS ARE BUILT OF PEOPLE.

ESTOs WORK DIRECTLY WITH PEOPLE.

And the pattern of the work is 1, 2 and 3 above.

L. RON HUBBARD

Founder

LRH:mes.rd.gm Copyright 10 1972

176



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 14 MARCH 1972

                                  Issue Il

Remimeo

Establishment Officer Series 7

FOLLOW POLICY AND LINES

About the fastest way Estos can unmock an org is pursue the fatal course  of
Org Officers in the first Product Officer-Org Officer system.

These Org Officers  bypassed  all  normal  lines  for  personnel,  materiel,
spaces and supplies and by disestablishing in that  fashion  tore  more  org
apart than they built. This made it almost impossible for the lonely HAS  to
establish anything.

An Exec Esto especially and any Esto must

1.    Get personnel on usual channels.

2.    Get materiel only by proper procurement.

3.    Get and use spaces only according to standard CSW to the authorities
involvedusually the C/O or ED.

4.    Get supplies only by the exact Purchase Order and supply channels.

5.    Follow the exact admin lines designed to achieve establishment.

For, after all, those lines ARE a major part of establishment.

If these lines are not in they must be put in.

If the Exec Esto and Estos cannot or  do  not  follow  the  exact  procedure
required in policy or routing forms or admin patterns THEY WILL TEAR  THINGS
UP FASTER THAN THEY CAN BE GOTTEN IN.

Estos must be drilled on these lines until they are truly in and effective.

It is up to them to set the example to others.

LINES

Lines that cross from one division to  another  such  as  public  lines  are
under the control of Dept 2 HCO.

They are dummy run by the Dir Comm under the guidance of the  HCO  Esto  and
with the cooperation of the Esto Conference.

These lines are vital to an org.

This is also true of personnel lines, supply lines  and  routing  forms  for
new staff or transfers or any other  action  that  may  involve  2  or  more
divisions.

Lines within a division are the business of the Estos of that division.

Where departmental  Estos  exist,  the  lines  linking  up  departments  are
handled by the Esto Conference of that division.

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INVISIBLE

Lines are invisible to many people. They disregard them and chaos results.

Thus Estos of all people must  see  that  edges  are  put  on  those  lines,
usually in the form of HCO routing forms and ethics actions for violations.

AN ORG WHOSE ADMIN OR BODY LINES ARE BEING VIOLATED WILL DISESTABLISH.

What is gained in sudden action is  lost  in  disestablishment.  The  seized
desk without permission, the grabbed space without  proper  allocation,  the
ripped off supplies for  lack  of  chits  and  supply  lines,  the  suddenly
transferred personnel all end up with a headache for somebody  else  and  an
unmocked area.

WORKING INSTALLATION

DO NOT DISESTABLISH A WORKING INSTALLATION!

Example: An exec spends months building up a producing Qual  Div.  The  Qual
Sec  is  suddenly  ripped  off  without  replacement  and  apprenticing  the
replacement. The div collapses. There went months of work. It was  far  more
economical to have a Qual Sec In-Training under that Qual Sec  for  a  month
or two before the transfer.

Using the wrong personnel pools for want of proper recruiting  and  training
is the downfall of most orgs.

Because it wrecks working installations.

This applies as well to org machinery. Don't wreck  one  machine  to  get  a
part for another. And don't ever take one apart that is running well.

OPERATIONAL

The definition of OPERATIONAL is running without further care or attention.

Anything that needs constant fiddling or  working  at  to  make  it  run  is
nonoperational! It must be repaired fully or replaced.

Man-hours and time waste easily eat up any value of the inoperational
machine.

Further, a machine that is forced to run that does not  run  well  may  then
break down utterly and expensively. The time to repair is soon,  the  moment
it cannot be run without great care or attention.

OPERATIONAL is a key definition that answers many problems.

It is also true of people.  Those  who  need  continual  pushing  around  or
rounding up cannot be considered operational. They can absorb  time  totally
out of proportion to worth.

This is no license to shoot staff down. But it is a warning that  where  too
much time is absorbed trying to make a staff member functional he cannot  be
considered OPERATIONAL.

If an Esto spent 100% of his time for weeks on just  one  staff  member  and
let the rest go hang, he'd soon find he was rewarding a downstat as well  as
violating the definition of operational.

RIGHT TARGET

A working unit that is getting on well, has an already established activity
even to

178



internal training, is not the right target for an Esto to reorganize.

His whole activity should be to get it support and new trainees for it. His
internal functions should be minimal so long as it runs well.

He helps it without hindering it.

Putting a unit there that is already there is a bit foolish

The right thing to do is get it help and support!

Example: An exec who really turns out the production. Seven Esto should
groove in his communicator and support lines and hat hell out of them.

Example: A Mimeo Section that runs like a bomb. The Esto recruits new in-
trainings for it, eases its supply problems and better establishes the
outside lines into it.

You keep what's established going.

New brooms may sweep clean. New Estos know their scene. And then establish
what isn't established, or its support lines. To do otherwise can hurt a
working unit or activity.

SUMMARY

Know what disestablishes.

Then you won't accidentally tear down faster than you build up.

The hallmark of the good Esto is

ESTABLISH AND MAINTAIN.

Sometimes he is unlucky and has disestablishing going on.

Sometimes he is very lucky and only has to maintain!

L. RON HUBBARD

Founder

LRH:mes.rd.gm

179



                        HUBBARD COMMUNICATIONS OFFICE

                  Saini Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 16 MARCH 1972

                                   Issue I

Remimeo

Establishment Of

      .J

.Ticer Series 8

LOOK DON'T LISTEN

An Establishment Officer who stands around or sits around  just  talking  to
people or seniors is dev-t.

If these people knew what was wrong the stats would be in Power. So if  they
aren't, why gab?

Questions, sharp and pointed, as in an investigation, yes.

But an Esto who just talks, no.

A GOOD ESTO LOOKS.

The scene is in the hats or lack of them. The scene is on the org bd or
lack of it.

THE SCENE IS RIGHT BEFORE ONE'S EYES.

It is moving or it is not

Its graphs are rising or they are level or falling  or  they  are  false  or
don't reflect the product or they aren't kept or they aren't posted.

Products are appearing or they are not.

Overt products are occurring or good products.

The lines are followed or they aren't.

The mest is okay or it isn't.

It is a SCENE. It is in  three  dimensions.  It's  composed  of  spaces  and
objects and people.

They are on a right pattern or they aren't.

A person is on post or he is moving onto one or moving off  or  isn't  there
at all or he is dashing in and out.

None of these things are verbal.

Few are in despatches. Quantities of despatches, types of  despatches,  yes.
Content? Only good for investigation, not for  adjusting  the  lines,  types
and volumes.

Example: Overloaded exec. Examine his traffic. Don't talk  to  him.  Examine
his traffic. Look to see if he has an in-basket for each  hat  he  wears,  a
folder for each type or area. Find a WHY. It can be as blunt as  he  doesn't
know the meaning of the word  "despatch."  Use  the  WHY.  Handle.  Hat  his
communicator on comm procedures. Hat him on  comm  procedures.  Examine  his
org bd. Find where it's wrong. Adjust it. Get his agreement.  And  the  load
comes off and product goes up.

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Now there are  moments  in  that  example  when  one  talks.  But  they  are
concerned with ACHIEVING THE PRODUCT OF AN ESTABLISHED PRODUCING EXECUTIVE.

If the Esto doesn't himself know, name, want and  get  and  get  wanted  his
Product I (an established thing) or Product 3  (a  corrected  establishment)
he, will talk, not look. (See P/L 29 Oct 70 Org Series 10  for  Products  1,
2, 3, 4.)

You can't know what's happening in a kitchen by talking to a  cook.  Because
he's not cooking just then. You can't know how  good  the  food  is  without
tasting it. You don't know really how clean a floor  is  without  wiping  at
it. You don't know how clean an ice box is without smelling it.

You don't know what a tech page is really doing without watching him.

You don't know how an auditor is auditing without listening to him,  looking
at the pc, the exam reports, the worksheets, the date and  progress  of  the
program. If you listened to him,  wow,  one  sometimes  hears  the  greatest
sessions that you ever could conceive.

To adjust a scene you have to LOOK AT IT.

ADMIN

An Esto or Esto I/C or Exec Esto who tries to do it with admin will fail.

Admin is S-L-O-W.

A Product Officer acts very fast if he is producing. The  flurry  to  get  a
product can tear the establishment apart.

You don't halt the flurry. That's exactly counter to the purpose of an
Esto.

The right answer is to ESTABLISH FASTER AND MORE FIRMLY.

It takes quickly found RIGHT Whys to really build something up.

And it isn't done by admin!

"Dear TEO. I have heard that you are in trouble with the D of P.  Would  you
please give me a report so I can bring it up at a meeting we are holding  at
the Hilton next week to see if we can get people to cooperate in sending  us
Whys about the insolvency of the org. My wife said to say hello and  I  hope
your kids are all right. Drop around some time for a game of  poker.  Seeing
you some time. Don't forget about the report. Best. Joe, Esto I/C."

Right there you'd have a Why of org insolvency. Not any  meeting.  But  that
it's on a despatch line. TOO DAMNED SLOW.

Already establishment is slower than production. It always  is.  And  always
will be. It takes two days to make a car on an assembly line and  two  years
to build a plant.

BUT when you make establishing even slower, you lose.

Esto admin is a spendid way to slow down establishment.

Let me give you some actual times.

1. SITUATION: Overloaded exec. Three periods  of  looking,  each  15  to  20
minutes. Time to inspect and find WHY, and handle  Mis-U  word  32  minutes.
Time to write cramming orders on a communicator 17 minutes.  Total  time  to
totally Esto handle: I hr and 49 minutes over a period of three days.

181



2. SITUATION:  Investigation  of  lack  of  personnel.  Collection  of  past
records I hour. Location of  peak  recruitment  period  by  record  study  7
minutes. Location of EDs and hats of that period 35 minutes. Study  of  what
they did. 20 minutes. Location of Why (dropped out unit) 10 minutes.  Orders
written as an ED to reestablish unit. Approval 9 minutes. Total Esto time  2
hours and  21  minutes.  Plus  time  to  form  unit  by  HAS,  I  day.  Unit
functioning in 36 hours and got first 3 products in 2 days.

3. SITUATION: Backlog on an auditor. Inspection of lines one half  hour.  Of
folders of all auditors and their times in session 2 hours. Finding WHY  and
verifying 25 minutes (other HGC auditors dumping their pcs  on  one  auditor
because he  had  a  slightly  higher  class  and  "they  couldn't  do  those
actions"), investigation of D of T 32 minutes (not  on  post,  doing  admin,
Supers doing admin). Writing  pgrn  35  minutes.  Locating  P/Ls  on  course
supervision, one hour. Writing cramming chits on 6 auditors,  Supers  and  D
of T I hour 15 minutes. Total time 6 hours and  17  minutes.  Check  of  Why
five days later found HGC stats up and auditor not backlogged.

4. SITUATION: Stats I/C goofing, making errors. Meter action  Method  4,  18
minutes. Found word "statistic"  not  understood.  Total  time  18  minutes.
Check back in 3 days, Stats I/C doing well, taking on all the duties of  the
hat.

5. SITUATION: Pc Admin only instant hatted.  Getting  her  mini-hatted.  M4,
demos, clay demos, 4 days at I hour per day and 15 minute check in late  day
to see if she is applying it to produce what it says, 5 hours.

6. SITUATION: Exec believes all his products are overt. Three hours  and  15
minutes completing 14 Steps of Esto Series  5  on  him,  locating  only  one
product was overt. Twenty minutes cleaning up how to  unbug  it.  Three  hrs
and 35 minutes.

These are typical Esto situations. They are not all  the  types  of  actions
Estos do. They would be typical total required time  involved  if  the  Esto
were right on his toes.

I do such Esto actions. They are very rapid and  effective.  So  what  I  am
writing is not just theory.

Not all actions are at once successfully resolved. I have been  involved  in
efforts to find a WHY in a very broad situation for months  before  all  was
suddenly revealed.

But where in all this was writing despatches about it?

F/N VGIs

One knows he is right when he looks and when he finds the  right  WHY.  It's
always F/N VGIs. Gung ho! ("Pull together.")

So one isn't only looking. He is looking to see the scene and find  the  WHY
and establish.

If the Esto has spotted, and named the product  he  wants,  then  he  has  a
comparison with the existing scene.

He cannot compare unless he looks!

Product named and wanted. Is it here in this scene? One can only see by
looking.

You start listening and you get PR, problems,  distractions,  3rd  partying,
etc., etc. An Esto gets into a cycle of

Outpoint, handle, outpoint, handle, outpoint, handle.

He hasn't looked and hasn't found a Why. So the scene will get worse.

You have then a busy, frantic Esto with the walls of  Jericho  falling  down
all over him because he listens to people blowing their own horns.

182



When you see an Esto standing and listening.  Okay.  If  you  see  it  again
elsewhere. What? What? This Esto is not doing his job.

If you see an Esto standing and  watching,  okay.  If  you  see  him  pawing
through old files, okay. If you see him sitting doing a checkout,  okay.  If
you see him working with a meter on somebody, okay. If you see  him  with  a
pile full of hats gazing into space tapping his teeth, okay. If you see  him
running, okay. If you see him reading policy, okay.

If you see him sitting at a desk  doing  admin,  no,  unless  it's  "today's
chits." As a habit all day, No No No No No No.

If you see him standing talking, standing talking, give him  a  dev-t  chit.
He's not being an Esto.

The real tale is told when a division or an org is established so  that  its
stats RISE and RISE.

When the staff looks happier and happier.

When the public being served is bigger and bigger and more and more
thrilled.

And the Esto achieves all that by LOOKING.

A good Esto has the eye of a hawk and can see an  outpoint  a  hundred  feet
away while going at a dead run.

A good Esto can find and know a real WHY in the time it takes a human  being
to wonder what he'll have for dinner.

A good Esto LOOKS. And he only listens so he can look.

And like Alice he knows he  has  to  run  just  to  keep  up  and  run  like
everything to get anywhere.

And so a good Esto arrives.

L. RON HUBBARD

Founder

LRH:ne.rd.gm

183



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 16 MARCH 1972

                                  Issue II

Remimeo

Establishment Officer Series 9

STUCK IN

An Esto, as well as being mobile, must not get "stuck in" on one point of  a
division or org.

Spending days hatting only one staff member and  letting  whole  departments
go is an example of what is meant by "getting stuck in."

This is why one "short cycles" an area. By  that  is  meant  doing  a  short
start-change- stop that COMPLETES that action.

This is why one (a) instant hats, (b) gets production, (c) does a  mini  hat
P/L on the person, (d) gets production,  (e)  does  another  P/L,  (f)  gets
production.

The Produce is a test to the Esto of whether or not he is winning on a
post.

You cover your whole area as an Esto with short cycles you can  complete  on
each person individually.

You do group drills of the whole group, little by little.

Gradient scales are at work here. (Look it up if you don't know it.)

Like, found one basic product for  each  in  the  div.  Then  handled  other
things. Then got product moved to Exchange  on  each  one.  Then  did  other
things. Etc., etc.

The other things are find a Why for a jam area  or  handle  a  blow  or  any
other Esto duty.

But don't spend 82 hours hatting Joe who then  doesn't  make  it  while  the
rest go hang.

Dev-t drops little by little and production rises IF you short cycle your
actions.

Don't get "stuck in." "I've been working on Dept I and  it  is  better  now.
Next month I go to Dept 2" is a wrong look.

Short cycles. Each staff member getting attention individually as well as a
group.

If one man was totally hatted and all the rest not, they'd  just  knock  his
hat off anyway.

Don't get stuck in on a dev-t terminal. Instruct, cram, retread, dismiss  is
the sequence.

Short cycles work. They show up the good as well  as  the  bad.  This  gives
upstats a reward.

Never have  a  situation  where  a  Product  Officer  can  say  to  you,  "I
appreciate all the trouble you're taking getting Oscar hatted. Let  me  know
some day when you've

184



finished so I can stop holding the div together and get on with my
product."

Little by little a whole group makes it. Drilled as a group as on org bds.
Hatted on one product or a P/L as an individual.

In between you work like mad to get up an org bd and groove in the new
staff member or find the WHY the Exec Esto is so anxious to get.

If 2 days pass and a staff member has not had any individual attention, no
matter how brief, from an Esto, that Esto has gotten "stuck in."

Stay unstuck!

Flow. Be mobile.

You can, you know. And be very effective too.

L. RON HUBBARD

Founder

LRH:mes.gm

185



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 MARCH 1972

Remimeo

Establishment Officer Series 10

FILES

The lowly and neglected item called FILES  is  the  cause  of  more  company
downfalls than desks and quarters and sometimes even personnel.

Because files are looked upon as  routine  clerical  work  they  seldom  are
given enough attention by executives. Yet the downfall  of  most  executives
is lack of information and FILES.

Files are often considered an area of  overwork  on  the  shoulders  of  one
person or a part-time action. This is the most  expensive  "saving"  an  org
can get itself into.

Example: One org (Jbg early '60's) did not  have  file  cabinets  or  proper
respect for files and kept losing their 6500 Central Files of  clients.  The
org remained in income trouble.

Example: Another org (SH '60) would not file into its bills  files  or  keep
them up and routinely overpaid creditors. In '64 for lack  of  these  proper
accounts files, it thought it owed E1000 when it actually owed f22,000!  And
don't think that didn't cause management overwork!

Example: An org didn't have its CF straight and its  Address  was  therefore
incorrect and not tabbed for publics. (AOLA 1971-72.)  This  cost  thousands
of dollars a week in (a) promo wasted to wrong addresses, (b)  low  returns,
(c) insolvent cash-bills.

I could go on and on with these examples. FSM pgms broken down as  Dept  18s
had no proper FSM file  or  any  real  selection  slip  file.  Inability  to
promote to correct publics because of no tabbed  address  plates.  Inability
to locate suppliers due to no purchaser  files.  No  personnel  obtained  as
personnel files nonexistent. And so on.

There are LOTS of files in an org. HCO P/L 23 Feb 1970 "The LRH Comm  Weekly
Report" lists the majority of these.

ORGANIZING FILES

The Establishment Officer will find all too often that in the flurry to  get
products, the file forming and maintenance function  is  bypassed.  He  will
find files are being pawed through and destroyed by frantic staffs.

He will seldom find similar attention being given to  files.  He  will  even
find local (and illegal) orders like,  "They  are  spending  too  much  time
organizing and too little time producing. So just produce, don't organize."

Such people are getting this week's stats at the expense of all next year's
income!

They even order files destroyed as "old" instead of setting up archives.

Half to two-thirds of an org's income comes from having a well kept  Central
Files and Address and FSM files and a  lot  of  credit  rating  and  correct
payment comes from bills files. P/L and HCOB files  almost  totally  monitor
training and processing and admin quality.

So files are FINANCIALLY VITAL TO AN ORG.

186



Efforts to block or cheapen files supplies and personnel must be  countered.
This is the first step of organizing files.

The next step is using a simple system that lets  one  recover  things  once
they are filed.

The next step is collecting everything to be filed whilefiling it.

The next step is completing the files (usually by extra hands).

The final step is MAINTAINING the files by keeping people  there  to  do  it
and having exact lines.

Independent files all over a division are  liable  to  file  out-of-date  or
lost. Therefore it is best to have DIVISIONAL FILES.  These  usually  go  in
the last dept and section of the division. Usually every  type  of  file  in
the div is kept there.

In this way you can keep a files person on the division's files.

A big deep FILES BASKET exists in the div comm center.

A log-out log-in book exists to locate where files have gone. This can be  a
large colored card that takes the place of the file.

A pre-file set of boxes A-Z sits above the files and is used, so  one  isn't
opening and closing file cabinets every time  one  files  in  one  scrap  of
paper.

Files personnel HAVE TO KNOW THEIR  ALPHABET  FORWARDS  AND  BACKWARDS  LIKE
LIGHTNING. This is the biggest cause of slow or misfiling,

All hands of the division actions can be taken for an hour or two a  day  to
catch a sudden inflow or backlog.

There are no "miscellaneous files" or catch all "that we put things in  when
we don't have another place for them."

Clerks must be able to get things out of files rapidly as well as file in.

The files location must not be so distant from the users (like Letter  Reges
or accountants) that use of them is discouraged by the  delay  or  the  time
lost. When this is true they start keeping their own independent files.

MEMORY

A person without memory is psychotic.

An org without files has no memory.

ESTOs

The Esto is responsible for organizing, establishing and  maintaining  files
even when there is a files I/C. The div head and dept heads are  in  command
of files and their use and over files people. But this does  not  excuse  an
Esto from having the div's files established.

If an Esto only did this file action well, the increased income  of  an  org
and the decreased cost would cover his and  the  file  clerk's  pay  several
times over!

FILES ARE VALUABLE TO AN ORG.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

187



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 23 MARCH 1972

Remimeo

Establishment Officer Series 11

                            FULL PRODUCT CLEARING

                                  LONG FORM

                        (Reference HCO P/L 13 Mar 72

                             Esto Series No. 5)

                           MUST BE DONE ON AN ESTO

                         BEFORE HE DOES IT ON STAFF

If you ask some people what their product is, you usually get a DOINGNESS.

There are three conditions of existence. They are BE. DO and HAVE.

All products fall under HAVE.

The oddities you will get instead of a proper product are many.

Thus it is possible to "clear products" without any real result.

PRODUCT CLEARING FORM

Org   Person's Name

Date

      Post

The 14 Points of Esto Series 5 are done in this fashion, with a meter used
to check

words.

STEP ONE

DO NOT TAKE FOR GRANTED THAT THE PERSON KNOWS WHAT "PRODUCT" MEANS. GET IT
AND EVERY WORD IN THE DEFINITION LOOKED UP.

(a)   Clear the word PRODUCT. Dictionaries give a  variety  of  definitions.
Make sure you get a useable  definition  that  the  person  understands  AND
WHICH HE UNDERSTANDS ALL THE WORDS IN. He can be hung up on "that"  or  "is"
in the definition itself believe it or not.

(b)   Have the person USE the word PRODUCT 10 times in sentences of his own
invention and use it correctly each time.

(c)   Now clear up BE, DO, HAVE, the conditions of existence.  People  often
think a BE is a product or a DO. It is always something someone can HAVE.

Clear the words BE, DO, HAVE by dictionary, especially HAVE.

188



(d)   Write these on a sheet of paper

BE

DO

HAVE.

Tell the person to name a product out in the world (a car, a book,  a  cured
dog, etc.).

Put an arrow into the word DO if he gives you a "do," into BE  if  he  gives
you a "be" instead of a HAVE.

Mark HAVE with an arrow each time he gives a right HAVE product.

When he can rapidly name a product that is  something  that  one  can  HAVE,
without a comm lag, go on to next step.

(e)   Clear up this question on a meter Method 4 (see HCOB 22 Feb 72, Word
Clearing Series 32, "Word Clearing Method 4"):

"Have 1 used any word so far you did not understand?"

Get it clean.

(f)   Now give the person a copy of HCO P/L 29 October 70 Org Series 10.

Have him read the policy letter.

(g)   Clear by Method 4 Word Clearing this question:

"Are there any words in the policy letter you did not understand?"

Get it cleaned up. If there were any, have  him  reread  the  policy  letter
until he says he has it.

(h)   Drill the pc on Products 1, 2, 3 and 4.

Write:

Product 1   Product 2

Product 3   Product 4

on a sheet of paper.

Let him retain and consult the HCO P/L 29 Oct 70 Org Series 10.

Put the point of your pen on one of the products (Product 1 or 2 or 3 or  4)
and say, "Name a Product U' "Name a Product 3." "Name a Product 4." "Name  a
Product 2." Do this until pc has it.

Now take the P/L away from him and repeat the drill.

When your Product 1, etc., is all blacked up with ballpoint  spots  and  the
person is quick at it, thank him. Tell him he has  it  and  go  on  to  next
step.

STEP TWO

(a)   Look up the hat and org board of the post of the person being  product
cleared and get some idea of what the post's product would  have  to  be  to
fit in with the rest of the scene. It won't necessarily be in

189



former hat write-ups. What the post produces must be worked out. Write  down
what it possibly may be.

(b)   Get the person to tell you what his post produces. Have him  work  the
wording around until it is totally satisfactory to him and is not  incorrect
by Step 2 (a).

Be very careful indeed that you don't get  a  wrong  product  or  you  could
throw the whole line-up of the org out,

Beware of "a high stat" or "a bonus" or "GF' as these are items received  in
exchange, not the person's produced product.

Once more resort to    BE

      DO

      HAVE

to be sure he is not giving  a  doingness.  And  point  this  out  until  he
actually has a HAVE.

Write down the product on the worksheet.

(c)   Ask if there are any more products to the post. If the person is
wearing several hats, he would have a product for each hat.

List each hat and get the product of each hat written after it.

(d)   Now take the principal product of the post and see  if  it  is  really
three products of different degrees or kinds. (Example: an auditor  has  [A]
a well pc [one who has been gotten over  a  psychosomatic  illness],  [B]  a
person who is physically active and well and will continue to be  well,  and
[C] a being with greatly increased abilities. A  Super  has  [A]  a  trained
student, [B] a course graduate, [C] a person who  successfully  applies  the
skills taught.) (Note: The above are rough wordings.)

The A, B, C you will notice fit roughly into (A) BE, (B) DO, (C) HAVE.

If the person has trouble with this, write BE, DO, HAVE on the worksheet.

(e)   Find out if the person has had these confused one with another or if
he is trying for A when his product was C, or any other mix-up.

See if he has to first get a BE, then a DO to finally achieve a HAVE.

When he has all this straight he should cognite on what product he is  going
for on his post, with VG1s.

(f)   Tell the person that's it for the step and verify the products with  a
Product Officer. (Be sure it's a Product Officer who  has  had  his  Product
Clearing. If this is THE Product Officer of the org, see if it  compares  to
the valuable final products of an org [see HCO P/L 8  Nov  73RA,  revised  9
Mar 74, 7he VFPs and GDSs of the Divisions of an Org"].)

If the products are not all right check the person on  a  meter  for  Mis-Us
and do Steps 1 and 2 again. If okay, proceed to Step 3.

STEP THREE

(a)   Give the person HCO P/L 27 Nov 71, Executive Series No. 3 and

      HCO P/L 3 Dec 71 Executive Series 4. Have him read them.

190



(b)   Return and do Method 4 on the P/Ls and clean up any misunderstood
word. If these are found and looked up and used, then have the person read
the P/Ls again.

(c)   Now that the person has it, exchange objects with him.

Have him now explain exchange until he sees clearly what it is.

STEP FOUR

(a)   Now write his product on the left-hand side of your worksheet and
draw an arrow from it to the right:

His product

And one to the left below it

Have him tell you what, internally in the org, he could get in exchange for
producing his product and getting it out.

Have him clear up why he might not get that.

(b)   Have him look at a worksheet picture:

      Overt Act  Injury

      Injury *   Overt Act

SELF  No Product OTHERS

      Nothing o  Nothing

as a cycle. Be sure he grasps that.

(c)   Have him look at a worksheet picture:

Overt Product    Upset

Upset *     Overt

And have him grasp that cycle,

(d)   Now have him draw various such cycles having to do with the products
he has been getting out. Such as:

Bad Product      Dissatisfied

Bad Feelings     Ethics

But using various versions of products.

Do this until he has it untangled and feels good.

(e)   Have him write down his product on the left, arrow to the right, what
comes back on the right and what occurs on the left.

If he has this now, tell him that's fine.

STEP FIVE

(All in Big Clay Demos)

(a)   Have him work out what theft is in terms of exchange, and arrows.

191



(b)   Have him show how his product contributes to the org's product.

(c)   Have him work out how the org's product as relates to his division is
then exchanged with society outside the org and Scri and what society
exchanges back to the org.

(d)   Have him work out how his product contributes to org's product
outward and outside the org and Scri and then from the society outside back
to the org and org back to him.

This may have more than two vias each way.

(e)   Have him work out the combined staff products into an org product and
then out into the society and then the exchange back into the org and to
CLOs and upper management and to org staff.

(f)   When the demos are all okay and BIG, tell him that's fine and go on
to next step.

STEP SIX

(Metered)

(a)   Find out if person wants his product? (not the exchange).

If not find out who might suppress it? and E/S times.

Who might invalidate it? and earlier times.

Two-way comm it to F/N Cog VGIs.

(b)   Establish now if the person wants his product.

(If bogs turn over to a C/S and auditor for ruds and completion.)

STEPSEVEN

(Metered)

(a)   Can the person get his product out?

(b)   Handle by 2wc E/S to F/N.

STEP EIGHT

(Metered)

(a)   What will his product be in volume?

Is that enough to bother about or will it have to be in greater volume?

What would be viable as to volume?

Clean up RUSHED or failures.

To F/N Cog VGIs.

STEP NINE

(Metered)

(a)   What quality would be necessary?

Get various degrees of quality stated.

What would he have to do to attain that quality?

What volume could he attain?

192



What would he have to do to attain that?

To F/N Cog VGIs.

STEP TEN

(Metered)

(a)   Can he get others to want the products he put out?

What would he have to do to attain this?

                                 STEP ELEVEN

                                (In BIG Clay)

                      (This is a progressive clay demo

                           added to at each step.)

(a)   How does his product  or  products  fit  into  the  framework  of  his
section? Requires he work out the section product if his  is  not  it.  Then
fit his to it.

(b)   How does his product fit into the department?  Requires  he  work  out
the department's product and fit  his  to  it  if  his  is  not  the  dept's
product.

(c)   How does his product fit into the division's products?  He  will  have
to work out the div's product or consult HCO P/L 8 Nov 73RA, Revised  9  Mar
74, 7he VFPs and G DSs of the Divisions of an Org. "

(d)   How does the division's product exchange with the public? And for
what?

(e)   What happens to the org on this exchange?

STEP TWELVE

(In Big Clay)

(a)   What blocks might he encounter in getting out his product?

(b)   What can HE do about these?

STEP THIRTEEN

(Two-way Comm)

(a)   What does he have to have to get his product out? (Beware of too  much
have before he can do. Get him to cut it back so he is more causative.)

STEP FOURTEEN

(Written by Pc)

(a)   What is his product on the Ist dynamic-self?

How does it fit in with what he is doing?

(b)   What is his product on the 2nd dynamic-family and sex?

How does it fit in with what he is doing?

(c)   What is his product on the 3rd dynamic-groups?

How does it fit in with what he is doing?

193



(d)   What is his product on the 4th dynamic-m an kind?

How does it fit in with what he is doing?

(e)   What is his product on the 5th dynamic-animal and vegetable kingdom?

How does it fit in with what he is doing?

(f)   What is his product on the 6th dynamic-the universe of matter,
energy, space and time?

How does it fit in with what he is doing?

(g)   What is his product on the 7th dynamic-beings as spirits-thetans?

How does it fit in with what he is doing?

(h)   What is his product on the 8th dynamic-God or the infinite or
religion?

How does it fit in with what he is doing?

(i)   What is his post product?

0)    Can he get it out now?

Esto or Product Clearer

Note this long form has to be run on leading executives  and  eventually  on
all staff. The short form in Esto Series 5, 14 Points,  serves  as  a  rapid
action. Where there is any hang-up on the short form, send the person to  an
auditor. Where there is a hang-up on the long form, send the  person  to  an
auditor. The auditing action is to fly ruds on the RD  and  assess  any  key
words the pc is upset about and do an  18  button  prepcheck  carrying  each
prepcheck button to F/N.

Where the TA is already high do not attempt the short or long form.

Where the person turns on a rock slam check for rings on the hands.  If  so,
remove rings. Note if R/S continues.

In either case the person should be  programmed  for  TA  trouble  with  C/S
53RRR and handled, and then given a GF40RR Method 3  (F/Ning  each  question
that reads) and then running the engrains with drugs run first.

Product Clearing is best done after Word Clearing No. 1 is successfully
done.

An Esto who can use a meter and Method 4 WCing and knows  clay  demoing  can
do it.

HCO Bulletins are planned to be issued on this RD  to  handle  it  on  rough
ones or repair it as needed in the hands of an expert auditor.

L. RON HUBBARD Founder LRH:mes.rd.gm

[Note: The original issue of the above Policy Letter contained  a  reference
to HCO PL 24 Mar 72, The VFPs of an Org, in paragraph (f) on  page  190  and
part (c) of Step Eleven on page 193. This PL was never issued.  The  correct
reference is as given in this edition in a different type style.]

194



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I APRIL 1972

Remimeo

Establishment Officer Series 12

Executive Series 11

MAKING AN EXECUTIVE

FLOW LINES

If an executive has his flow lines wrong he will NEVER be a Product  Officer
but only a comm clerk.

For some poor reason executives get themselves onto all comm lines in  their
area. Probably it is an individual Why for each one. But  the  fact  remains
that they do do it!

And they promptly cease to be useful to anyone. While they "work" like mad!

Basically they have confused a comm line with a command line. These are  two
different things. A comm line is the line on which  particles  flow,  it  is
horizontal. A command line is  a  line  on  which  authority  flows.  It  is
vertical.

Here  is  an  example  of  a  divisional  secretary  who  can  get   nothing
accomplished while sweating blood over her "work."

Secretary being a relay messenger clerk

ALL org traffic to Div In and Out

6ept  Dept  lie~t

Wrong

Now quite obviously this secretary  is  suffering  from  "fear  of  juniors'
actions" or "having to know all." Exactly nothing will  happen  because  the
person is plowed under with paper. No real actions are taken. Just relays.

One such secretary of a division even acted as the relay point  on  all  out
and in BODY traffic. In short, just a divisional receptionist.

No product. Nothing happening at vast expense.

195



Here is another example. The correct one.

Div Secretary as Product Officer

Right

.4

10,

No

This is known as horizontal flow.

It is a fast flow system.

The correct terminals in each department are addressed by terminals outside
the dept, directly. And are so answered.

Now we have a divisional secretary who is a PRODUCT OFFICER and whose duty
is to get each department and section and unit producing what it is
supposed to produce.

MISROUTE

So long as a command line is confused with the comm line an org will not
produce much of anything but paper.

INFORMATION

It is vital that an executive keep himself informed.

The joker is, the despatch line does NOT keep him informed. It only absorbs
his time and energy.

The data is not in those despatches.

The data an executive wants is in STATISTICS and REPORTS and briefings.

Statistics get posted and are kept up-to-date for anyone to look at,
especially but not only the executive. They must ACCURATELY reflect
production, volume, quality and viability.

Reports are summaries of areas or people or situations or conditions.

The sequence is (a) statistic goes unusually high, (b) an inspection or
reports are required in order to evaluate it and reinforce it.

196



Or (a) the statistic dives a bit  and  (b)  an  inspection  or  reports  are
needed to evaluate and correct it.

Thus an executive is NOT dealing  with  the  despatches  or  bodies  of  the
division's inflow  and  outflow  lines  but  the  facts  of  the  division's
production in each section.

An executive makes sure he has comm lines, yes. But  these  are  so  he  can
make sure stats get collected and posted,  so  reports  can  be  ordered  or
received and so he can receive or issue orders about these situations.

Despatch-wise that is all an executive handles.

INSPECTIONS

Personally or by representative, an executive INSPECTS continually.

His main duties are

OBSERVATION

      EVALUATIONS      (which includes

            handling orders)

and SUPERVISION.

All this adds up to the production of  what  the  division  is  supposed  to
produce. Not an editing of its despatches.

A good executive is all over the place getting production done.

On a product he names it, wants it, gets it, gets it  wanted,  gets  in  the
exchange for it.

He cannot do this without doing OBSERVATION by (1) stats, (2)  reports,  (3)
inspections.

And he can't get at what's got it bugged without evaluation.  And  he  can't
evaluate without an idea of stats and reports and inspections.

Otherwise he won't know what to order in order to SUPERVISE. And once  again
he supervises on the basis of what he names, wants, gets,  gets  wanted  and
gets the exchange for.

THESCENE

This is the scene of an executive.

If he is doing something else he will be a failure.

The scene is an active PRODUCTION  SCENE  where  the  executive  is  getting
what's wanted and working out what will next be wanted.

ABILITY

An actual executive can work.

A real fireball can do any job he has getting done  under  him  better  than
anyone he has working for him or under him.

He can't be kidded or lied to.

He knows.

197



Thus a wobble of a stat has him actively looking in the exact  right  place.
And evaluating knowingly on reports. And getting the exact  right  WHY.  And
issuing the exact right orders. And seeing them get done. And  knowing  it's
done right because he knows it can be done and how to do it.

Now that's an ideal scene for an exec.

But any exec can work up to it.

If he does a little bit on a lower job each day, "gets his hands  dirty"  as
the saying goes, and masters the skill, he soon will know  the  whole  area.
If he schedules this as his 1400 to 1500 stint  or  some  such  time  daily,
he'll know them all soon. And if he burns the midnight oil  catching  up  on
his study.

And he knows he must watch stats and then rapidly get  or  do  observations,
so he can evaluate and find real WHYs quickly and get the correction in  and
by supervision get the job done.

That's the ideal scene for the exec himself where he's  head  of  the  whole
firm or a small part of it.

If he can't do it he will very likely hide himself on a relay despatch  line
and appear busy while it all crashes unattended.

An exec of course has his own admin to do but they don't spend hours  at  it
or consider it their job for it surely isn't. Possibly an hour a day at  the
most handles despatches unless of course one doesn't  police  the  dev-t  in
them.

Most of their evaluations are not written.  They  don't  "go  for  approval"
when they concern somebody's post jam. They are  done  by  investigation  on
the spot and the handling is actual, not verbal.

A desk is used (a) to work out  plans,  (b)  catch  up  the  in-basket,  (c)
interview someone, (d) write up orders. Two-thirds of their time is  devoted
to production. Even if a thousand miles away they still only spend 1/3rd  of
their time on despatches.

An executive has to be  able  to  produce  the  real  products  and  to  get
production. That defines even an Esto  whose  product  has  to  do  with  an
established person or thing.

Any  department,  any  division,  any  org,  any  area  responds  the   same
wayfavorably-to such competence.

ANALYSIS

To attain this ideal scene with an  executive,  one  can  find  out  WHY  he
isn't, by getting him to study this P/L and then find WHY  he  can't  really
do it and then by programming him to  remedy  lack  of  know-how  and  other
actions increase his ability until he is a fireball.

If you are lucky you will have a fireball to begin with. But only the  stats
and the truth of them tell that!

Esto action: Can you do all this and these things? If the answer  is  no  or
doubtful or if the executive isn't doing them, find the Why and remedy.

L. RON HUBBARD

Founder

LRH:nt.mes.bh.ts.gm

198



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 3 APRIL 1972

Remimeo

Establishment Officer Series 13

DOING WORK

The basic Esto problem is getting somebody to do his job.

This is not just executives nor "bad staff." It tends to be rather
prevalent in our modern culture.

The basic question really is "Why can't you do what you are supposed to be
doing?"

An Esto will find many people "busy," but really not doing their post hat.

As the Esto's own stat depends on people actually doing their jobs, and as
the pay and well-being of those people also depend on it, it amounts to
quite a problem.

You can do a Product Rundown to cognitions. But then in some cases nothing
happens.

You hat and still nothing happens.

ABERRATION

To understand this you have to understand "aberration."

Get the idea of a being doing wholly what he is doing. You get this:

e

A.

I I I I Task

It is a straight line of attention.

Now get the idea of somebody "doing a job that is not doing what he is
doing."

We get

e     Being 'v

B.    '\.X

, 111 Tas

This is aberration. Which means "not in a straight line."

      199



So in example A, the person does what he is doing.

In example B, he is doing but he is not doing what  he  is  doing  MENTALLY.
Mentally he is doing something else while he is doing what he  seems  to  be
doing.

SCHIZOPHRENIA

The most prevalent "mental disorder" is supposed to be  schizophrenia.  This
means "SCISSORS" or 2 plus "head." A two-head in other words.  And  in  this
case two heads are not better than one (joke).

You see this in institutions. A person is changing valences  (personalities)
clickclick-click, one to the next.

But the condition is a gradient one that  worsens  between  sanity  and  the
bottom of the scale.

Midway, the condition is common but almost never noticed. It  is  so  common
today that it passes as normal humanoid.

The person is not doing what he is doing.

      Examples of this are-people who do not like a job with responsibility
because

      they "like to do mechanical things so they can dream of something
else while working";

persons who "have to do something else before they can  59; persons

who are out of area; persons who continually make dev-t.

There is also the person who rams sideways into  the  work  of  others  with
"mistakes," "demands," and prevents them from  doing  what  they  are  doing
while himself not doing what he is doing.

One can't say these people are crazy. Not today. But one can say  they  make
problems which are very difficult unless you know how to unlock the riddle.

BARRIERS

Study Series No. 2 HCOB 2 June 1971 Issue I  "Confronting"  and  the  drills
given in the Esto tape series can push  their  way  through  an  astonishing
mass of barriers.

For this is what the condition is-an effort to get through barriers.

The reason example  B  above  occurs  is  that  the  person's  attention  is
misdirected by mental barriers each time he tries to do A above.

Yet only if he can do A will he have any self-determinism and power.

It does not mean he is crazy. It means he  is  incapable  of  directing  his
attention straight. Each time he does, he hits something  that  deflects  it
(sends it off at an angle).

All this will seem very reasonable to him because  it  is  the  way  it  has
always been. And like the little girl who never knew she had had a  headache
from the time of birth, and only knew it  when  it  quit  suddenly,  such  a
person does not realize he cannot control his attention.

Such think about lots of other things while apparently thinking  about  what
they are doing. And they do lots of other things.

MISUNDERSTOODS

Misunderstood words prevent them being in communication  with  materials  or
others. Thus they do not read or listen. They maunder  (which  means  wander
about mentally).

200



This is the inflow side of it.

The outflow side are barriers of odd fears and peculiar ideas.

Such people appear rather weak and dispersed. Or too heavy and  stubborn  to
make up for it.

They have fixed ideas and other  outpoints  because  their  thoughts  detour
instead of running along a highway.

HAPPINESS

To get someone to actually do what he is doing when  he  is  doing  it  will
sound cruel to some people. That's because they find it painful to  confront
and would  rather  withdraw  and  maunder,  sort  of  self-audit  themselves
through life.

They are not happy.

Happiness comes from self-determinism, production, and pride.

Happiness is power and power is being able to do what one is doing when  one
is doing it.

COMPETENCE

When a person is competent, nothing can  shake  his  pride.  The  world  can
yell. But it doesn't shake him.

Competence is not a question of one being being more  clever  than  another.
It is one being being more able to do what he is doing than another is.

Example A is competence.

Example B is incompetence.

MORE THERE

You could say a competent person was "more there." But this is really  "more
able to put his attention on what he has his attention on."

WHY

Anyone who is not a fireball on his post could be described by this WHY:

Unable to do his post for an individual WHY for each person.

Thus there are two ready remedies an Esto can use.

1. He can find the WHY a person cannot do his post and then handle it.

2. He can do Esto drills on the person.

In finding the WHY the observation itself that his stats are  low  may  find
the person a bit defensive.

It just could be that he does do what he is  doing.  But  if  so  his  stats
would be high and he would be moving fast.

Thus one has to find his personal WHY. If it is  the  right  one  he  should
have very good indicators and speed up and do his job. If it  is  not  quite
the right one he may feel degraded or ashamed.

201



The test of any right WHY is does it raise the  existing  scene  toward  the
ideal with existing resources.

Thus you can get a WHY that is not wholly acceptable until handled.  But  if
you really are spot on it should blow a lot of the barriers.

Thus a real WHY blows a lot of  the  barriers,  when  handled,  between  the
being and his job.

The drills then push it on through.

The drills sometimes blow through the WHY. The  WHY  sometimes  blows  right
through any need of drills.

So these two actions interact.

If you see someone feeling very guilty after  the  WHY  "is  found,"  better
check it over. It could be a wrong WHY and in this case,  just  find  a  new
one.

THIRD ACTION

The Primary Rundown, HCOB 30 Mar 72,  should  be  done  on  a  staff  member
thoroughly.

Otherwise he will remain to some degree out of comm. He will not be able  to
take in data quickly if he cannot communicate with words.

PROCESSING

Of course processing removes all the barriers  eventually.  But  it  is  not
necessarily aimed at doing a job.

Ability potential is enormously increased by processing.

But traditionally we do not rely on processing to handle staff.

We handle people and we handle cases.

But auditors and staff members, simply  because  we  do  handle  people  and
cases, must not have cases on post. We do not admit that  they  have  cases.
This raises necessity level.

And it is quite amazing how high that necessity level can be raised and  how
a person can function despite his case.

If we admitted that staff had cases we couldn't handle  public  cases.  It's
that simple.

So an Esto does not advise or use  auditing  on  staff  members  as  a  post
remedy nor accept case as a WHY.

Of course "case" is a WHY. But when you accept it you retreat  from  example
A above and at once get a B.

You will be amazed how a person can begin to do what he is doing by  finding
his WHY and doing drills.

And of course you also have to handle the fellows who jam in from  the  side
at every turn and  disperse  the  staff  member's  attention.  He  too  (and
especially) isn't doing what he is doing.

The same procedure (WHY and drills) handles him as well.

202



In sum, if a staff member isn't doing what he is doing he is doing
something else. They never do nothing.

Ask "What is the reason you do not fully do your post?" or any such
version. Find the real WHY. And handle the person.

That's the major part of an Esto's job.

And don't be surprised if you get a cheerful "but I am!" And find he is.

But his stats and speed tell the whole story.

L. RON HUBBARD

Founder

LRH:mes.bh.gm

203



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 4 APRIL 1972

Remimeo

Establishment Officer Series 14

ETHICS

The normal level of an unhatted dev-t nonproducing org is out-ethics.

The reason you see so many  heavy  ethics  actions  occurring-or  situations
where heavy ethics actions should occur if they aren't-in  such  an  org  is
that it has its EXCHANGE flows messed up.

It is important to know this fact as this  factor  alone  can  sometimes  be
employed to handle persons in the area whose ethics are out.

CRIMINALITY

Unless we want to go on living in a far nowhere some of the facts of  scenes
have to be confronted.

An  inability  to  confront  evil  leads  people  into  disregarding  it  or
discounting it or not seeing it at all.

Reversely, there can be a type of person who,  like  an  old-time  preacher,
sees nothing but evil in everything  and,  possibly  looking  into  his  own
heart for a model, believes all men are evil.

Man, however, (as you can read in HCOB 28 Nov 70 C/S  Series  22  Psychosis)
is basically good. When going upon some evil course he attempts to  restrain
himself and caves himself in.

The Chart of Human Evaluation in Science of Survival was right  enough.  And
such people also can be found by the  Oxford  Capacity  Analysis  where  the
graph is low and well below a center line on the right.

This sort of thing can be handled of course by auditing but  the  Esto  does
not depend on that to handle his staff's problems.

Criminal actions proceed from such people  unless  checked  by  more  duress
from without not to do an evil act than they themselves have  pressure  from
within to do it.

Criminality is in most instances restrained by just such an imbalance of
pressures.

If you have no ethics presence in an org, then criminality shows its head.

Such people lie rather than be made  to  confront.  They  false  report-they
even use "PR" which means public relations to  cover  up-and  in  our  slang
talk "PR" means putting up a lot of  false  reports  to  serve  as  a  smoke
screen for idleness or bad actions.

Unless you get ethics'in, you will never get tech in. If you can't get  tech
in you won't get admin in.

So the lack of ethics permits the criminal impulse to go unchecked.

Yes, it could be handled with tech. But to get money you have to have admin
in.

204



Unless there is ethics and ways to get it in, no matter how  distasteful  it
may seem. you will never get tech and admin in.

Of course there is always the element of possible  injustice.  But  this  is
provided against. (See HCO PL 24 Feb 72 Injustice.)

When ethics  is  being  applied  by  criminal  hands  (as  happens  in  some
governments) it can get pretty grim.

But even then ethics serves as a restraint to just outright slaughter.

Omitting to handle criminality can make  one  as  guilty  of  the  resulting
crimes as if one committed them!

So criminality as a factor has to be handled.

It is standardly handled by the basic ethics P/Ls and the Ethics Officer
system.

EXCHANGE

The unhatted unproducing staff member, who  is  not  really  a  criminal  or
psychotic, can be made to go criminal.

This joins him to the criminal ranks.

The ethics system also applies to him.

However there is something an Esto can do about it that is truly Esto tech.

This lies in the field of EXCHANGE.

If you  recall  your  Product  Clearing,  you  will  see  that  exchange  is
something for something.

Criminal exchange is nothing from the criminal for something from another.

Whether theft or threat or fraud is used,  the  criminal  think  is  to  get
something without putting out anything. That is obvious.

A staff member can be coaxed into this kind of thinking by

PERMITTING HIM TO RECEIVE WITHOUT HIS CONTRIBUTING.

This unlocks, by the way, an age-old riddle of the philosophers as to  "what
is right or wrong."

HONESTY is the road to SANITY. You can prove that  and  do  prove  it  every
time you make somebody well by "pulling his withholds." The insane are  just
one seething mass of overt acts and withholds. And they are very  physically
sick people.

When you let somebody  be  dishonest  you  are  setting  him  up  to  become
physically ill and unhappy.

Traditional Sea Org ethics labeled noncompliance as Liability  and  a  false
report as Doubt.

And it's true enough.

When you  let  a  person  give  nothing  for  something  you  are  factually
encouraging crime.

Don't be surprised that welfare districts are full of  robbery  and  murder.
People there give nothing for something.

205



When exchange is out the whole social balance goes out.

Every full scholarship ever given by an org wound up in a messy scene.

When you hire  a  professional  pc  who  just  sits  around  making  do-less
motilons while people audit him and contribute to him DO  NOT  BE  SURPRISED
IF HE GETS SICKER AND SICKER.

He is contributing nothing in return and winds up in overwhelm!

Similarly if you actively prevented someone from contributing in return  you
could also make him ARC broken and sick.

It is EXCHANGE which maintains the inflow and outflow that  gives  a  person
space around him and keeps the bank off of him.

There are numbers of ways these flows of exchange can be unbalanced.

It does not go same out as comes in. Equal amounts are no  factor.  Who  can
measure good will or friendship? Who can actually  calculate  the  value  of
saving a being from death in each lifetime? Who can measure  the  reward  of
pride in doing a job well or praise?

For all these things are of different values to different people.

In the material world the person whose exchange factor is out may  think  he
"makes money." Only a government or a counterfeiter "makes money."  One  has
to produce something to exchange for money.

Right there the exchange factor is out.

If he gives nothing in return for what he gets the money does not belong to
him.

In Product Clearing many people it was  found  that  some  considered  their
food, clothing, bed and allowance were not  theirs  because  they  produced.
They were theirs "just by being there." This funny "logic"  covered  up  the
fact that these people produced little or nothing on  post.  Yet  they  were
the first to howl when not  getting  expensive  (to  the  org)  auditing  or
courses or tech!

Thus such a person, not hatted or made to produce, will get ill.

It is interesting that when a person becomes productive his morale
improves.

Reversely it should be rather  plain  to  you  that  a  person  who  doesn't
produce becomes mentally or physically ill. For his exchange factor is out.

So when you reward a downstat you not only deprive upstats,  you  also  cave
the downstat in!

I don't think welfare states have anything else in mind!

The riots of the ancient city of Rome were caused by  these  factors.  There
they gave away corn and games  to  a  populace  that  eventually  became  so
savage it could only enjoy torture and gruesome death in the arena!

A lot of this exchange imbalance  comes  from  child  psychology  where  the
child is not contributing anything and is not permitted to contribute.

It is this which first overwhelms him with feelings  of  obligation  to  his
parents and then bursts out as total revolt in his teens.

Children who are permitted to contribute (not as a cute thing to do but
actually)

206



make noncontributing children of the same age look like raving  maniacs!  It
is the cruel sadism of modern times to  destroy  the  next  generation  this
way. Don't think it isn't intended. I have examined the OCAs of parents  who
do it!

So if a person is brought up this life with the exchange all awry, the  Esto
has his hands full sometimes!

He is dealing with trained-in criminality!

WHAT HE CAN DO

The remedy is rather simple.

First one has to know all about EXCHANGE as covered in the Product  Clearing
policy letters.

Then he has to specially clear this up with people who do not produce.

He should get them to work on it as it relates  to  ALL  THEIR  DYNAMICS  IN
RELATIONSHIP TO EVERY OTHER DYNAMIC.

That means he has to clear up the definitions  of  dynamics  with  care  and
then have the person draw a big chart (of his own) and  say  what  he  gives
the first dynamic and what it gives him.  Then  what  he  gives  the  second
dynamic and what it gives him. And so on up the dynamics.

Now, have him consider "his  own  second  dynamic."  What  does  his  second
dynamic give his first dynamic?  What  does  his  second  dynamic  give  the
second dynamic and what does it give him?

And so on until you have a network of these exchange arrows, each both
ways.

Somewhere along the way, if your TRs are good and  you  have  his  attention
and he is willing to talk to you he will have quite a cognition!

That, if it's a big one, is the end phenomena of it.

And don't be surprised if you see a person now and then change his  physical
face shape!

CONDITIONS BY DYNAMICS

An Ethics type "action" can be done by  giving  the  person  the  conditions
formulas (pages 189, 237, 245, 247, 249 of Vol 0, Basic Staff  Hat.  HCO  PL
14 Mar 68-page 247-gives one the table.)

Method 4 the person on the  table  of  conditions  and  pick  up  any  other
misunderstoods.

Have the person study theformula of each of these conditions  in  the  table
so that he knows what they are and what the formulas are.

When he has all this now with no misunderstood words, you must clear up  the
words related to his dynamics I to 8 and what they are.

Now you're ready for the billion dollar question,

Ask him what is his condition on the  first  dynamic.  Have  him  study  the
formulas. Don't buy any glib PR.

Don't evaluate  or  invalidate.  When  he's  completely  sure  of  what  his
condition really is on the first dynamic he will cognite.

207



Now take up the second dynamic by its parts-sex,  family,  children.  Get  a
condition for each.

Similarly go on up each one of the dynamics until you have a  condition  for
each one.

Now begin with the first dynamic again.

Continue to work this way.

You will be amazed to find he will come out of false high down  to  low  and
back up again on each dynamic.

Somewhere along the line he will start to change markedly.

When you have a person in  continual  heavy  ethics  or  who  is  out-ethics
(ethics bait, we say) and who is floundering around, you can do an S & D  on
him and quite often save his future for him.

When you have such a person  you  do  this  one  first  before  you  do  the
Exchange by Dynamics.

In other words, you use this on "ethics bait" and then when  he's  come  out
of such, you do Exchange by Dynamics on him.

SUMMARY

When all looks black, and you are getting  false  reports,  and  the  things
said done were not done and what was really being done were  overt  products
and despite all your work, the stats just won't go up, you still have  three
answers:

1. GET IN ETHICS ON THE ORG.

2. GET EXCHANGE DONE ON INDIVIDUALS.

3. GET IN CONDITIONS BY DYNAMICS ON THE ETHICS BAIT,

And after that keep a strong, just Division I Dept 3.

You'll be amazed!

L. RON HUBBARD

Founder

LRH:sb.rd.gm

208



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 6 APRIL 1972

Remimeo

Establishment Officer Series 15

PRODUCT CORRECTION

If you find the wrong product for a post, you knock the staff member's hat
off.

Example: Get the janitor a product of "a well established business" and
he's the Exec Esto!

When all the "products" have been "found" you can have bits of trouble here
and there. This would be very mysterious unless you realize that a certain
percentage of products found will be

(a) Incorrect

(b) Too few

(c) Incompletely worded

(d) Are doingnesses not havingnesses

(e) Can't be worked into a stat.

There will also be a certain small number who were upset by a poor Product
Rundown and will have to have auditing to handle (usually the bypassed
charge list L I C on the Product Rundown or what is called a Green Form or
even a Word Clearing Correction List).

The majority probably will be all right so that's a pluspoint.

But these flubbed rundowns become themselves a WHY.

So let's see how to correct one.

1.    Did the product add up to a havingness?

2.    Was it exchangeable?

3.    Did it match the actual hat?

4.    Were there more for the same post?

5.    Is the person really wearing several hats, each of which has a
product?

6.    If more than one found did they go together with each other?

7.    Does it give the person a different hat?

8.    Did it give the person somebody else's hat?

9.    Were there misunderstood words in the rundown?

10.   Does the person have contrary orders from some other person?

11.   Was it just an exercise to the person?

12.   Did doing the rundown make the person ARC broken or otherwise put
ruds out?

209



13. Didn't the person agree with it?

14. Was the person really trying to do some other job?

15. Was the person about to leave present post or wanted to?

16. Was the Product Rundown really not done?

17. Is the person unhappy on post?

18. Is the person taking illegal orders?

19. Is the person connected to antagonistic people (PTS)?

20. Wrong post for the product?

21. Wrong org bd?

22. Crossed over into another department?

23. Crossed over into another division?

The questions, assessed on a meter, should be handled if they read.

And when that is done (assessed and handled), the door is  open  to  finding
the WHY called for in Esto Series 13. The above questions could be  the  Why
or part of it but usually that's just a symptom of the real Why  called  for
in Esto No. 13.

But in any event the questions correct the Product Rundown  and  it's  vital
to do that.

HATS AND ORG BD

EXISTING ORG BD

The routine action with a post is to get the  person  to  list  on  separate
cards WITH CORRECT EXACT WORDING each hat  the  person  wears  or  has  been
wearing no matter how small. This is NOT copied from a P/L. It's  an  honest
"What hats do you really wear?"

The list may be as long as 35 or 40.  The  higher  you  go  on  the  command
channel, the more of these hats.

Having done that for every member in a division you wind up with either

(1) Completely expressed division hats or

(2) Woefully missing functions or

(3) Badly adjusted work loads.

(4) A totally cross-hatted scramble.

You put these cards (identified as whose by the writing) onto  a  blank  org
board. You now have AN EXISTING ORG BD.

NEXT ACTION

The following is an entirely separate action.

Now you take the 1965 org bd or FEBC org board or whatever org  board  is  a
model and see if the "hats" you have go under the functions  listed  on  the
board.

You adjust the hats around to cover the actual functions of the division.

You write up cards to cover the missing functions.

You put these new cards on the org board.

210



FUNCTION BOARD

You write up the functions of the org board of the division  by  departments
on a separate model and add the valuable final products per HCO  PI,  4  Mar
72.

This gives you the functions to get out the VFPs expected.

These functions will or won't get out the VFPs.

What functions are needed to get them out?

By blocking in these you have now a FUNCTION ORG BOARD.

TITLE ORG BD

From this function org board you can now make up a TITLES ORG BD.

Each title has some of these functions. The functions must be  of  the  same
general type for the title.

When you have done this (with divisional secretary, divisional  Org  Officer
and divisional Esto and department heads), you now have a TITLES ORG BD.

POSTING

The main failure in putting names on an org bd is that people take the  easy
way out and try to put a different person's name on each title.  This  gives
you a 100 person division "absolutely vital" while the production  is  about
5 man!

You take the names you have NOW in the division and post those to cover  all
the functions and titles.

You post from the top down. YOU NEVER POST FROM BOTTOM  UP.  And  you  NEVER
LEAVE A GAP BETWEEN PERSONS ON LOWER POSTS AND HIGH POSTS. Either  of  these
faults will raise hell in the division's functioning and are grave faults.

Having done this you now have a POSTED ORG BOARD.

MATCHING

Now the hat lists you have are probably wildly different than your posted
org bd.

Take the cards of hats they were wearing and try  to  fit  these  onto  your
POSTED ORG BD.

You now at once "before your very eyes" will  see  what's  wrong  with  your
product and what might be right with it.

You will have one of these:

(1) Completely expressed division hats

(2) Woefully missing functions

(3) Badly adjusted work loads, OR

(4) A function not on the POSTED BD but done by someone that is getting  the
product!

You will see that the board made from the  hat  cards  they  wrote,  doesn't
usually compare with your posted org bd!

AND THAT'S A POSSIBLE WHY YOU COULDN'T GET PRODUCT RUNDOWNSDONE!

211



Hats don't add up to product. Or the actions really being done  are  totally
unproductive.

You now have it before your eyes.

CAUTION

By an excess of purity you can crash a division or an org by removing a  key
function someone is doing that's NOT on the posted org  bd  but  IS  getting
the product!

We had a Phone Reg recently removed because he wasn't  allowed  for  on  the
org bd and "had to be Dir Reg but wouldn't." When he was forced  into  line,
the stats promptly crashed!

The stats recovered promptly  when  his  removal  was  spotted  and  he  was
ordered back on post.

You don't juggle an org board lightly. You can destroy a  division  or  unit
by juggling hats.

The rule is DON'T DISMANTLE A WORKING INSTALLATION. NEVER!

You can build around it, support it, put in another one like it. But don't
touch it!

It is heartbreaking to build a successful upstat  division-takes  months-and
have somebody crash it by musical chairs, musical functions.

So always look at stats. And look at the PAST points of high stats  of  that
div in past years and see what was  its  organization  when  it  was  really
upstat.

You could do no better than to rebuild that old structure.

But if your div or activity was  a  working  installation  that  was  really
getting out the product don't monkey with it. Study it instead.

RECLEARING PRODUCT

If Product Clearing wasn't good, and the unit isn't doing well, then do  the
above org bd exercises to see what gave.

And you probably will now see that you didn't have the right products.

Try to get your division or dept standard if its stats are low. Standard  is
your 1965 SH org bd for a big org. That  org  really  ran!  Most  policy  is
built on it.

But a little org builds up from "Org Program No. I" LRH  ED  49  INT  9  Dec
1969. And can go through the 6 dept stage of London,  LA  and  DC  in  their
glory ('56-'62). They  had  an  HCO,  a  Registration,  Accounts,  Training,
Processing and a Department of Personnel Efficiency (public). These did  all
the functions. There was an HCO Sec and an Association Sec. But Org Pgm  No.
I phases into it with a person in full charge of public.

Or a little org can build a big org from Org Pgm Number I right on into  the
'65 org bd.

The approximate products of HCO PL 4 Mar 72 are  being  worked  for.  I  say
approximate as there may be more and the wording may be better adjusted.

When you have the hats getting out the subproducts (those necessary to  make
the VFPs of the org) you will get the VFPs.

CORRECTED ORG BD

You may find it necessary to correct your posted org board to get the VFPs.

212



Remember, it has the staff it has, plus any new ones it manages to get  plus
any field technical persons it can get in to go on staff.

YOU HAVE TO SET IT UP TO GET OUT THE VFPs NOW NOW NOW.

An org can't stand idle to be organized. It can die if it is hatted just to
establish.

So you post the people you have to do the functions that must be done.

Then you Product Clear.

You clear from the top down.

You HAT to produce.

There isn't anything more important than this step.

EASY WAYS

The easy way to do this is to do 2 of the short form steps quickly  on  EACH
staff member from the top down.

Then take the next two on ALL the staff, each one.

If a Product RD has been done already but it  isn't  running  well,  correct
it, with above list.

And do it with two steps and go on to the next staff member.

NEGLECTING TO CLEAR PRODUCTS

The biggest omission is not clearing products at all.

The next biggest omission is failing to clear from the top down.

The next is not clearing them all through the div two at a time.

The next is not clearing products on the new people coming into the div
promptly.

CRISSCROSSING PRODUCTS

A div can be tangled by having the wrong products for the hats.

So product is always suspect when stats are down or lines tangle.

BIGGEST WHY

The biggest Why of products not getting cleared is an Esto I/C  in  a  small
org or an Exec Esto who does not run and train his Estos. If  an  Exec  Esto
listens to "but I can't use a meter," "my TRs are out," "she  won't  let  me
hat her," "I have Mis-Us on the P/Ls  so  don't  read  them"  and  does  not
handle his Estos the way a coach  handles  a  hot  football  team,  products
won't get cleared.

Naturally if products are not cleared on an Esto I/C or an Exec Esto  or  if
they aren't cleared on the Estos they will flounder.

Once again it's a two-step- at-a-time action round and round  while  getting
other things done between each two steps.

EXAMPLE OF PRODUCTS

An example of Product Clearing that throws things out is crossing  the  hats
of the Esto MAAs.

The Exec Esto's MAA is responsible for the schedule and getting to work  and
exercise and activities of STAFF MEMBERS.

213



The Assistant Esto MAA is responsible for Estos.

If their products are incorrectly cleared  they  will  flounder  around  and
their posts may look of little value.

The Exec Esto's MAA probably has a product like  "effective  post  hours  of
each staff member." Each staff member on post one  hour  is  a  product.  He
also therefore has a welfare  sort  of  function  that  leads  to  a  lesser
product that leads to the main one. Like, "a staff member in  good  physical
condition for the day." And this gives another  lesser  product,  "a  secure
staff member for that day." And so it goes. This is not a list nor an  exact
wording of his products. But do you see that they all fit? They  are  ethics
type stats so they have time in  them  because  they  preserve  and  measure
survival. They could not be graphed without time in  them.  They  would  not
vary.

The Esto's MAA has "an Esto on post with ethics in that day." He has  lesser
products of "a defended or secure Esto that day" and "an Esto assisted  with
liaison with HCO." Do you see that the products mesh? If an  Esto  has  out-
ethics he can't be defended because he can be hit from above.

Also the Exec Esto's MAA has the staff and the Esto's MAA has the  Estos  so
"both sides" are supported.

Now if you product cleared the Exec Esto's MAA as having  "a  working  Esto"
as his product he would be at once  the  Exec  Esto!  While  called  "Esto's
MAA." He wouldn't be able to make head nor tail of his post.

If the org's HCO Ethics Officer had the same products as the Esto MANs  (or,
lord help us, all three had wrong products) whole zones of ethics  would  be
missing in the org and  out-ethics  would  occur.  The  Ethics  Officer  has
several products but as HCO is a production division, he has "an  out-ethics
person whose ethic level has been made acceptable." It would not be  "Ethics
Orders issued" as that isn't the whole product of the E/O nor would  "people
hit by ethics" be a product because it isn't a product.  The  product  would
have to include public and if it didn't the whole public zone would be  out.
Students would get into an E/O section jammed with staff backlog  and  would
be kept off course and maybe blow. Decent investigations couldn't  be  made.
So ethics would go out in the area.

But an Esto having trouble with a staff member would know, if products  were
right and published, to send him to the Exec Esto's MAA!

And what of files? It's useless to duplicate files so HCO Ethics  Files  has
all Ethics files and the Exec Esto MANs files and the Esto MANs files,

So, just with this example, you can see that products  can  be  very  neatly
coordinated. AND MUST BE FROM STAFF MEMBER TO STAFF MEMBER in a  section,  a
department, a division, an org. Then it all FLOWS. Somebody is in charge  of
each internal product in the org that it takes to make a VFP and  in  charge
as well of that VFP loosely (incorrectly called) the GI (GI  is  really  the
valuable FINAL REWARD for which the VFPs are exchanged).

Thus, an org properly product cleared RUNS, PRODUCES  VFPs  in  high  volume
and quality and is  rewarded  with  GI  and  other  things  for  which  VFPs
exchange.

And that's the org you want!

L. RON HUBBARD

Founder

LRH:nt.mes.gm

214



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 24 APRIL 1972

Remimeo

Establishment Officer Series 16

HATTING THE PRODUCT OFFICER

OF THE DIVISION

Estos have been told "hat from the top down."

Why? Because the head of a div or org or the Product Officer of the  org  is
the one who gets other people to work.

If the Product Officer is not hatted to get people to work there will be  no
products, the stats will be very low and that Esto could be  very  mystified
and look bad as an Esto.

For if he does not do this one thing first then whatever else he does will
be wasted.

An Esto who gets drawn in and given orders by  a  div  head  or  who  cannot
confront the div head will wind up withdrawing from the div  or  just  being
inactive.

The first major failure of an Esto would be a failure  to  hat  the  Product
Officer of the org or div.

FIRST SITUATION: There is no head of div (or org).  Correct  action:  Get  a
head of div (or org) fast and rapidly org  board  the  div.  The  number  of
people in the div (or org) does not  matter  at  this  stage.  First  things
first. Get a head of div (or org). And rapidly org bd the place.

SECOND SITUATION: You have a head of div (or org). Correct action:  Hat  him
with HCO P/L 28 July 71 Admin Know-How No. 26. Tell him you will  attend  to
the hatting IF he will get them  producing.  He  is  responsible  for  their
production. Get him to know this P/L. (Method 4  WC.)  Tell  him  he  is  in
Phase 1. So let's see some production.

      THIRD SITUATION.- The head of div or org flies about, looks busy or
just sits

      there. He is not getting out production. He will tell you all about
"not being hatted,"

      "doesn't know the tech" on and on, excuses excuses. But no production
from him or

      staff. Correct action: He has to be made to understand that he isn't
doing his job no

      matter how busy he looks or how many reasons he has. He probably has
not noticed

      and does not know that he is faking work. People with low confront
don't see. If he is

      really doing his job and getting out his products and forcing any
staff to get out theirs,

      you have a pearl. Cherish him, and don't consider doing this third
action on him. But

      one is easily fooled. Only real products tell the tale. A busy exec
or division is not

      necessarily a producing exec or div. So if no products from him or
staff for whatever

      reason, he's below Danger. You don't have a head of div or org if you
don't have

      products coming off and exchange occurring. Only these, not excuses
or motions, tell

      the tale. You can get "PR" and glowing (but false) reports. You can
get all sorts of

      things. But where are the products? So you bait (tease) and badger
(nag) the head of div

      (or org) to IMPINGE ON HIM (draw his attention) until he snarls or
cries or screams

      AND SPITS OUT AN OUTPOINT. You don't ask him like repetitive commands

      "Why aren't you working?" You ask in many ways "Where are the
products?" And

      he'll eventually tell you an outpoint. Like "But I can't get out any
products because

      they aren't products until they are back home telling people how good
we are so how

can 1 .19 Or "I just keep running around here and nothing happens." Or

      some other nonsense that is nonsense. That's his Why. So you tell
him,"Look,

215



you don't get out products because you don't think you  can!"  Or  "You  are
just trying to look busy so you won't be thought idle." And if you're  smart
and on the ball, that will be it. The exec will cognite and go  into  smooth
2WC at once and you got him out of the Esto  P/L  Series  13  state  into  a
confront.  This  is  "Bait  and  Badger"  to   get   him   broken   out   of
nonconfronting. That's all that's wrong with him really. He doesn't look.

SITUATION FOUR: The exec won't let an Esto near him.  Snaps,  snarls.  Don't
avoid him. Correct action: Bait and Badger.  He's  already  halfway  through
Situation Three above. Finish it up.

SITUATION FIVE: The exec goes into shock. This is a symptom of no  confront.
He won't fight back. He will propitiate. But he won't  do  anything  either.
Correct action: Get a new exec. Tame execs who won't fight  and  can't  work
will never get a staff to work. After getting a new exec,  salvage  the  old
one with processing. Do Steps One to Four on the new one.

SITUATION SIX: Having gotten the original or a new exec this far,  you  will
find he is usually outpointy in  his  actions  even  if  producing.  Correct
action: Run Confront in his area. Run Reach and Withdraw in his  area.  Then
product clear him on every section and department he has as though he's  the
head of it.

SITUATION SEVEN: Gets out volume but quality  suffers.  This  is  a  general
nonconfront. Correct action: Bring him personally up through  each  dynamic,
through the conditions per Esto Series No. 14. Get him in normal  or  higher
on each dynamic. Now do Dynamic Exchange, Esto Series No. 14.

SITUATION EIGHT-  He  is  active,  producing  but  isn't  forcing  staff  to
produce. Correct action: Recheck him on HCO P/L 28 July  71  Admin  Know-How
26 and look for a Why that he can't pull himself out of Phase I  into  Phase
11. Get this  VGled.  Tell  him,  "Preach  to  them  that  dones  come  from
effective doingness. If they don't do things that are  effective  they  will
not get a done. Demand DONES."

SITUATION NINE: He really doesn't know his job.  Correct  action:  Begin  to
hat him. Don't start hatting him further than  an  instant  hat  before  you
have worked it up to Situation Eight. His confront will not be  good  enough
to apply the material even if he knows it. So only  at  this  stage  do  you
start to really hat. And at this stage you hat by observing what he  doesn't
know that he needs to know and you look up and  select  P/Ls  that  fit  his
current state of unhattedness and check him out on only these.  You  keep  a
log of what he's checked out on so he gets credit for it.

SITUATION TEN: The executive skids back. He  roller-coasters  or  gets  ill.
Correct action: Recognize this as a PTS situation. Get  him  interviewed  by
the D of P. Get the PTS situation HANDLED and don't buy "It's just the  flu"
or whatever. He's PTS and that's trouble. (See HCOB 17  Apr  72  C/S  Series
76.)

SITUATION ELEVEN: The exec does not seem to remember what he's been  checked
out on or apply what he knows. He is glib or he is  foggy.  Correct  action:
Get him word cleared  Method  1.  Then  word  clear  him  Method  4  on  the
materials he has covered. (See Word Clearing Series HCOBs.)

HOW MUCH TIME

How much time do you spend with an exec?

Well, effective or not his time is valuable.

Do not use peak load post time or  he'll  be  going  mad  with  the  PTP  of
unhandled actions needing to be done. So you won't get anywhere.

Try to do these actions on an exec during his study time.

Observe him on post to know what to do in his study time.

216



If he has no study time, you must get the Study  Correction  List  (HCOB  14
Jan 72 Study Series 7) done on him and handled as in Situation Thirteen.  An
exec who can't study can't see either.

If this conflicts with your own study  time,  make  other  arrangements  for
that portion of yours. But get yours IN too.

SITUATION TWELVE: Has study time in addition to working hours but  does  not
study. Correct action: See that study time is run per "What  Is  a  Course?"
HCO P/L 16 Mar 71 and "What Is a Course-High Crime" HCO P/L 16  Mar  72  and
LRH ED 174 INT 72.

SITUATION THIRTEEN: Even though staff course exists does not study.  Correct
action: Have a Study Corr List HCOB 14  Jan  72  Study  Series  7  done  and
properly handled.

REST OF STAFF

What do you do with the rest of staff?

These thirteen situations cover as well any staff member.

You could do no worse than do these things on each one as beginning
actions.

There are many Esto actions that can be done but  if  you  don't  get  these
done you won't get far.

But on staff below dept head, Situations One, Two and Eight do not apply.

SITUATION ONE STAFF: Major post not posted. Correct  action:  Force  a  Dept
One into existence via the Exec Esto and get it producing staff and get  the
post posted. (Don't do an incorrect action and use other parts  of  the  org
as personnel pools and dismantle working installations  or  rob  tech.)  Get
the org bd up and the person on it.

SITUATION TWO STAFF: You have a person on the post. Correct action:  Instant
hat him. Get him programmed for training for post.  Unbug  his  study  time.
See that he studies per pgm.

SITUATION EIGHT STAFF: He is active  and  producing  but  isn't  moving  his
products or is backlogging and/or gets in jams. Correct action: Volume 0  of
OEC Course, get in its comm sections, drill him on org bd and show  him  the
other terminals he is supposed to be in  comm  with.  Make  him  follow  his
product physically through lines and then make  him  follow  the  routes  of
things that should come to him. While doing this you will find bugs  in  the
lines or in his own lines. Smooth them out. Drill the person further.

THIS P/L AS A CHECKLIST

You can use this P/L as a checklist.

Get a cardboard folder. Put the person's name on it.

Write the person's name in at the top of this P/L.

When each action is done, mark the dates  it  is  being  worked  on  in  the
margin beside the situation with your initial.

When fully done mark it DONE with date. Beware of NOT-DONES or HALFDONES  or
BACKLOGS. (See Admin Know-How 29, Executive Series 5, both are  HCO  P/L  26
Jan 72 Issue 1.)

Don't skip about on this one.

217



THE GENERAL WHY OF INACTIVITY OR NONPRODUCTION IS: LOW CONDITION ON  ONE  OR
MORE  DYNAMICS  MAKING  A  NONALIGNMENT  WITH  OTHER  DYNAMICS  CAUSING   AN
INABILITY TO CONFRONT.

Most beings are not there as a being as  they  are  below  existence.  As  a
being plus body they have social responses and can do orders or will  do  at
something when attention is called to it.  Otherwise  they  are  blind  with
their eyes wide open. They are not malicious. They just don't SEE.

If they are not there they won't have to be responsible for  what  they  do,
will they? They do not think they have lived  before  or  will  live  again,
which is why the population is fixed on a one life idea.

As a result the above situations do occur. And the handling has been  tested
and works.

Do not say, "Why haven't you seen - - " this or that outness. Say,  "Do  you
see this -" outness. And they will look in  that  direction.  But  sometimes
have to be shown further  evidence.  Then  they  see  it.  Until  the  above
situations are handled, you are working with social machinery.

When you have handled these situations as  above  correctly  as  noted,  you
will get toward full application of HCO P/L 5 May 1959 "Policy  on  Sec  EDs
and Hats" page 64, Vol 0 of  OEC.  Call  the  above  "correct  actions"  the
modern processes plus many other Esto actions and you can bring the exec  to
CAUSE so that he CREATES his post.

Until you have handled, using his social  machinery  as  per  the  situation
handlings above, he is not being bad, he just can't see.

This is how you get an exec functioning.

It is no overt act to get him functioning as only until you do will he  have
any morale at all.

SITUATION FOURTEEN.- An exec or staff member may try to use the Esto  as  an
Org Officer or to get the Esto to get involved in the  division's  products.
BOTH are fatal Esto errors. Correct action: Explain Esto functions  to  them
briefly so they know the Esto's product is THEM.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

[Note.- The following data is taken from a Founder advice of April 1972.

"The Org Officer gets the CO's programs logged and done. This is in
addition to his FEBC Org Officer duties, less interviewing staff.

The first product of a Product Officer is an Org Officer but the first
product of an Org Officer was the HAS and is now the Exec Esto.

The first product of an Exec Esto is a divisional Esto working on Products
I and 3 in the division."-LRH

Further data on the above is given in the FEBC Tapes and Esto Tapes.]

218



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 13 MAY 1972

Remimeo

Study Series 4

Establishment Officer Series 17

Language Series 4

CHINESE SCHOOL

As very few westerners have ever seen a Chinese or Arab school in  progress,
it is very easy for them to miss the scene when one says "Chinese school."

The term has been used  to  designate  an  action  where  an  instructor  or
officer, with a pointer, stands up before an  assembled  class  and  taps  a
chart or org board and says each part of it.

It is very funny to one who knows or has heard a real Chinese school to  see
the class sitting there silently. This is strictly a Western  pattern.  This
is how teacher does it in Omaha or Cornell. But never in Shanghai!

A Chinese class sings out in  unison  (all  together)  in  response  to  the
teacher. They participate!

The only Western near equivalent is a German beer hall  where  the  audience
choruses items sung out by the song leader.

Chinese school, then, is an action of class vocal  participation.  It  is  a
very lively loud affair. It sounds like chanting.

In a real Chinese school the response is so timed that  although  spoken  by
many voices it is quite easy to tell what answer is being chorused.

It is essentially a system that establishes  instant  thought  responses  so
that the student, given "2x2" thinks instantly "4."

For example, the instructor, tapping a big multiplication chart cries,  "Two
times two." The class in one voice cries, "Four."  Instructor:  "Five  times
two." Class: "Ten." And so on and on and on by the hour.

This gets more complex when, let us say, the maxims of good conduct  or  the
Koran are being taught. In such cases the tablets  or  scrolls  are  on  the
wall. The teacher calls chapter and verse and the students chant it.

You could teach the laws of listing and nulling, The Auditor's Code,  axioms
and so on in this way.

The tools are the same-an instructor, a pointer, a chart or set of  pictures
or big scrolls, a class.

There are two steps in such teaching.

A. The instructor taps and says what it is. Then asks the class what  it  is
and they chant the answer.

B. When the class has learned by being told and  repeating,  the  instructor
now taps with the pointer and asks and the class chants the correct answer.

DRILL

The instructor himself has to grasp the drill.

Here is how it would go on an org bd.

219



A.

Instructor taps Div 1. "This is Division I HCO Division."

Class chants, "Division I HCO Division."

Instructor taps Div 6. "This is Division 6 Distribution Division."

Class: "Division 6 Distribution Division."

And so on until all divisions have been named a few times.

B.

Instructor taps Div 1. "What is this?"

Class: "Division I HCO Division."

Instructor taps Div 4. "What is this?"

Class: "Division 4 Tech Division."

And so on and on. The divisions are then considered trained-in on the
class.

Next one would go to departments. Then to philosophic names of  departments.
Then to sections. Then one would go to the titles  of  each  division  head.
Then to dept heads, etc., etc.

If one had a function org board of what each div  and  department  and  post
did one would go on with the same thing.

A Chinese school drill run for a  short  period  each  day  will  eventually
cover an enormous amount of org bd.

Newcomers to the drill have to be schooled-in to catch up or join a new
class.

Anything can be taught by Chinese school that is to be learned by rote.  The
parts and actions are always the same.

There is also a version that uses a text, preferably with a copy  of  it  in
each student's hands. It sounds the same.

One is limited only by what he can put on a chart or even in  a  text  where
each student has a copy of the text open before him.

Crude charts are easy to draw up with a felt (heavy ink) pen. The size of  a
chart is determined by the ability of the students furthest away to  see  it
easily.

Cloud types, pictures to be named in a  foreign  language,  even  slides  of
airplane types, anything can be Chinese  schooled  that  is  to  be  learned
verbatim. And you'd be surprised how many things  should  be.  And  if  they
aren't the person has a shaky foundation under the subject.

Care should be taken to define  strange  words.  But  it  is  not  really  a
problem or exercise in Word Clearing. It is verbatim rote teaching.

And it works.

And is lots of fun.

L. RON HUBBARD

Founder

LRH:nt.gm

220



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 JUNE 1972

Remimeo

Data Series 26

Establishment Officer Series 18

LENGTH OF TIME TO EVALUATE

It will be found that long times required to do an evaluation can be traced
each time to AN INDIVIDUAL WHY FOR EACH EVALUATOR.

These, however, can be summarized into the following classes of Whys:

This list is assessed by a Scientology auditor on a meter. The handling
directions given in each case are designations for auditing actions as done
by a Scientology auditor and are given in the symbols he would use.

I . Misunderstood words.

(Handled with Word Clearing [Method I and Method 4 of the Word Clearing
Series].)

2.    Inability to study and an inability to learn the materials.

(Handled by a Study Correction List HCOB 4 Feb 72.)

3.    Outpoints in own thinking.

(Handled by what is called an HC [Hubbard Consultant] List HCOB 28 August
70.)

4.    Personal out-ethics.

(Use P/L 3 May 72 by an auditor. Has two listing and nulling type lists.)

5.    Doing something else,

(2-way communication on P/L 3 May 72 or reorganization.)

6.    Impatient or bored with reading.

(Achieve Super-Literacy. LRH Executive Directive 178 International.)

7.    Doesn't know how to read statistics so doesn't know where to begin.

(Learn to read stats from Management by Stat P/Ls.)

8.    Doesn't know the scene.

(Achieve familiarity by direct observation.)

9.    Reads on and on as doesn't know how to handle and is stalling.

(Get drilled on actual handling and become Super- Literate.)

221



10. Afraid to take responsibility for the consequences if wrong.

(HCOB 10 May 72 Robotism. Apply it.)

11. Falsely reporting.

(Pull all withholds and harmful acts on the subject.)

12. Assumes the Why before starting.

(Level IV service facsimile triple auditing.)

13. Feels stupid about it.

(Get IQ raised by general processing.)

14. Has other intentions.

(Audit on L9S or Expanded Dianetics.)

15. Has other reasons not covered in above.

(Listing and nulling to blowdown F/N item on the list.)

16. Has withholds about it.

(Get them off.)

17. Has had wrong reasons found,

(C/S Series 78.)

18. Not interested in success.

(P/L 3 May 72 and follow as in 14 above.)

19. Some other reason.

(Find it by 2-way comm.)

20. No trouble in the first place.

(Indicate it to person.)

When this list is assessed one can easily spot why the person is having
trouble with the Data Series or applying it. When these reasons are
handled, one can then get the series restudied and word cleared and
restudied and it will be found that evaluations are much easier to do and
much more rapidly done.

L. RON HUBBARD

Founder

LRH:ne.rd.nf

222



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 13 JUNE 1972

Remimeo

Establishment Officer Series 19

PROGRAM DRILL

A majority of people cannot follow a written program. Yet all legal
projects are in

program form.

The reasons are various. But when programs are not understood they can be

cross-ordered, abandoned, left half done and the next  thing  you  know  you
have a backlog (HCO  P/L  26  Jan  72,  Issue  1,  Not-Dones,  Half-Dones  &
Backlogs).

There can be (and usually are) other situations that prevent the doing of a

program. Out-ethics (P/L 3 May 72), PTS or  SP  (P/L  5  Apr  72),  lack  of
understanding of a product or exchange, an unmanned or undermanned area  are
the commonest reasons. But when all these have been handled,  there  can  be
two other reasons-the written project itself is bugged so it can't  be  done
(needs special equipment or finance or is outpointy  or  doesn't  apply)  or
THE PERSONS CONCERNED JUST CAN'T DO A PROJECT. The former of  these  reasons
is seized upon all too often to excuse  the  latter  WHICH  USUALLY  IS  THE
CASE. They can't execute a project  and  prefer  cross  orders  because  the
orderliness of a project or what it is. is  not  understood.  Therefore,  to
handle this we have the following project drills.

The person is just to do these, honestly, each one, from targets I on.
DUMMY PROJECT I

PURPOSE: To learn to do a project.

MAJOR TARGET. To get it done.

PRIMARY TARGETS:

1.    Read this P/L down to "Dummy Project L"

2.    Check off each one when done.

VITAL TARGETS:

1.    Be honest about doing this.

2.    Do all of it.

OPERATING TARGETS:

1.    Take off your right shoe. Look at the sole. Note what's on it. Put it
back on.

2.    Go get a drink of water.

3.    Take a sheet of paper. Draw three concentric circles on it. Turn it
over face down.

Write your name on the back. Tear it up and put the scraps in a book.

4.    Take off your left shoe. Look at the sole. Note what is on it. Put it
back on.

5.    Go find someone and say hello. Return and write a despatch to your
post from

yourself as to how they received it.

6.    Write a despatch from your post to yourself in proper despatch form
Volume 0

OEC correcting how you wrote the despatch in 5 above. File it in your hat.

7.    Take off both shoes and bang the heels together three times and put
them back on.

8.    Write a list of projects in your life you have left incomplete or not
done.

9.    Write why this was.

10. Check this project carefully to make sure you have honestly done it
all.

      223



11.   List your cognitions if any while doing this project.

12.   Decide whether you have honestly done this project.

13.   Hand all written papers including the scraps in the book over to your
Esto or senior with a proper despatch on top Dummy Project No. I
Completion.

END OF PROJECT

DUMMY PROJECT 2

PURPOSE: To learn about production.

MAJOR TARGET- To actually produce something.

PRIMARY TARGETS:

1.    Get a pencil and 5 sheets of paper.

2.    Situate yourself so you can do this project.

VITAL TARGETS:

1.    Read an operating target and be sure to do it all before going on.

2.    Actually produce what's called for.

OPERATING TARGETS:

1.    Look very busy without actually doing anything.

2.    Do it again but this time be very convincing.

3.    Work out the valuable final product of your post. Get help from your
Esto or senior as needed.

4.    Straighten up the papers in your in-basket.

5.    Take sheet I as per primary targets above. Write whether or not No. 4
was production.

6.    Pick over your in-basket and find a paper or despatch that doesn't
contribute in any way to your getting out your own product.

7.    Answer it.

8.    Take the second sheet called for in the primary target. Write on it
why the action in 7 is perfectly reasonable.

9.    Take the third sheet of paper and draw the correct comin lines of
your post.

10.   Get out I correct product for your post, complete of high quality.

11.   Deliver it.

12.   Review the operating targets and see which one made you feel best.

13.   Take the 4th sheet of paper and write down whether or not production
is the basis of morale.

14.   Take the 5th sheet of paper, use it for a cover sheet and write a
summary of the project.

15.   Realize you have completed a project.

16.   Deliver the whole project with papers to your Esto or senior.

END OF PROJECT

L. RON HUBBARD

Founder

LRH:nt.gm

224



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 JUNE 1972

Remimeo

Establishment Officer Series 20

SUPERVISOR TECH

(Reference: HCO P/L 25 June 72, Recovering

      Students and Pcs.

      LRH ED 174 INT 29 Mar 72.

      LRH ED 178 INT 30 May 72.)

It should be very plain to an Esto that if the materials  of  Dianetics  and
Scientology are not available and not taught, all his work will be in vain.

The TRAINING and HATTING of Course Supervisors  is  not  a  Product  Officer
function. It belongs to HCO Dept I or the E Esto or his TEO.

A failure on course supervision (and Cramming Officer functions) will  throw
out the whole tech delivery of an org and staff  and  defeat  everything  an
Esto is trying to do.

Public and staff courses are both of  vital  importance.  After  these  come
auditing. But where training fails, auditing won't  occur  as  the  auditors
won't be able to audit.

Further an Esto often trains and he should have these points down  as  well.
And he should get them in on Supers NO MATTER WHAT DIVISION HE IS ESTOing.

If he doesn't, a training breakdown will defeat all  his  best  laid  plans.
Bad Supers? So who gets trained?

MATERIALS

First and foremost is materials. If you don't have these on the  course  for
that course, what course?

Always check the available materials and then move  mountains  to  get  them
remedied where out or missing or too few.

SCHEDULES

Next is schedules.

These must be real and KEPT BY THE SUPER AS WELL.

PRESENCE

Next is the existence or presence of the Super.

There may be none, he may be there part-time, he may be there but doing
something else.

Get the Super on the course supervising the course, not doing admin or
folders. (With a course co-auditing the D of T whose job it is, dumps it on
the Super or fails to get a C/S and then there's no Super.)

So get a Super supervising the course properly as his hat and duty.

225



SUPER ASSISTANCE

Two extremes can happen in course supervision:

1. No attention to the student.

2. Bothering the student and stopping his progress.

The point one has to grasp is "OBNOSIS." This is a  coined  (invented)  word
meaning OBSERVING THE OBVIOUS. There is no English  or  any  other  language
precise equivalent for it.

Man just does not seem  to  observe  the  obvious.  The  reason  for  it  is
misunderstood words. Not understanding the symbol (word)  the  actual  thing
can become somewhat less visible.

The real job of the Course Supervisor is to get the  puzzled  or  doping  or
bogged student going.  And  to  protect  the  student  who  is  flying  from
interference including the Super's own.

To do this the Course Supervisor has to observe the obvious.

Is the student going okay?

Is the student bogged?

What is an F/Ning student? Is he chortling and  gurgling  and  slapping  his
knee? No. He is just calmly going right along.

What is a bogged student? Is he stretched out on the floor snoring?  No,  he
is groggy or puzzled or frowning or even  emotionally  upset  by  his  Mis-U
words. When not caught and handled he will go to sleep or  just  stare  into
space.

Should a student's fingers be wiggling? No. He should  do  demos  fully  and
with full attention only when he has something to demo  in  order  to  grasp
it.

Should two students be chattering about a date they had? No.  They  are  not
F/Ning students even if they are F/Ning gossipers.

When the Super does not know the  key  words  of  his  post,  his  power  of
observation is low. To remedy this one does Word Clearing Method  6  on  him
(HCOB 21 June 72 Issue 11).

And one gets him to look.

To keep from looking a Super can develop systems  like,  "Every  36  minutes
I'll check up on every class member for it  takes  just  36  minutes  to  go
around them all."

When an F/Ning student is interrupted  by  the  Super  he  can  be  given  a
"withhold of nothingness." The student may say, "No, I've just been  checked
up" and the Super goes away. But the student now wonders, "Am  I  trying  to
hide something?" "Am I really doing all right?" etc. A W/H of nothingness.

To keep students from blowing, BOTH these points have to be looked into.

OBNOSIS is the drill required on the Super.

And a Method 6 on the key words of his post.

And Product Clearing and his own study Why.

Study tech does work but must be applied!

226



A Supervisor must be a Super-Literate to be of real use.

Apply LRH ED 174 INT of 29 Mar 72 and LRH ED 178 INT of 30 May 72.

BLOWN STUDENTS

See HCO P/L of 25 June 72, Recovering Students and Pcs, for check items of
how to get students back on course.

SUMMARY

An Esto backed up by good courses and course supervision will eventually
bring it all straight.

L. RON HUBBARD

Founder

LRH:nt.gm

227



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 JUNE 1972

Remimeo

Establishment Officer Series 21

FILES ACCURACY

As files are the vital operational line it is of the GREATEST IMPORTANCE
that

A LL FILING IS A CC URA TE.

. misfiled particle can be lost forever.

. missing item can throw out a whole evaluation or a sale.

Items get misfiled for four reasons:

1. Ignorance of the alphabet

2. Ignorance of geography

3. Ignorance of the vital role of the files

4. Personal out-ethics.

The remedies therefore are

1. ALL FILES PERSONNEL (a) MUST BE ABLE TO RATTLE OFF THE ALPHABET  FORWARDS
AND BACKWARDS. (b) They must be drilled then to be able to give  the  letter
ahead of and behind each letter in the alphabet.

2. GEOGRAPHY must be known to files personnel,  particularly  the  locations
of orgs, cities, states and continents. This is done by drilling them  on  a
map that has key locations related to files.

3. Method 6 WCing should be done  on  words  connected  with  the  post  and
action of filing. Then the value  and  purpose  of  the  files  they  handle
should be done by them,

4. Persons with out-ethics or on an ethics cycle should not be given  filing
as an amends as they are not drilled and are out of PT to say the least.

ETHICS ACTION

Anyone finding a misfiled particle should report it to  the  Ethics  Officer
or Master-at-Arms.

He must then quickly make every effort to locate who is misfiling  and  take
rapid action.

The first action is to hat them as above.

Any repeat is an ethics offense handled by a Court.

If the E/0 cannot find the person or does not act he himself must  comb  all
files and straighten up the particles.

SUMMARY

It is of vital interest both in ease of work and financially that all files
are straight.

L. RON HUBBARD

Founder

LRH:nt.gm

228



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 14 JULY 1972

                                  Issue 11

Remimeo

                       Establishment Officer Series 22

                             Executive Series 14

                                Org Series 30

ESTO FAILURES

For several months I have been studying the Esto  system  in  operation  and
have finally isolated the exact points  of  any  failures  so  they  can  be
turned to successes.

PUTTING IN THE SYSTEM

An Esto returning to an org can crash it.

The exact reasons for this are

A. The execs who heretofore did organizational work  say,  "Ah,  here's  the
Esto system at last," and promptly drop their organizational  and  personnel
actions.

Yet here is this lone E Esto, no divisional Estos, no one trained to
support him.

The right answer is when an E Esto goes into  an  org  where  there  are  no
Estos or only a TEO or QEO, he must gather up the execs  and  tell  them  it
will take him weeks to recruit and train Estos and that THEY  MUST  CONTINUE
ANY ORGANIZATIONAL ACTIONS  THEY  ARE  DOING  and  that  the  HAS  IS  STILL
ESTABLISHING THE ORG.

Otherwise they let go their lines.

B. The new E Esto takes key production personnel from the  divisions  to  be
Estos and they crash.

The answer to this is to RECRUIT the new Estos.

This is easier than it looks if you recruit idle area auditors to be Estos.

If you do this remember that they went idle as  auditors  because  they  had
out-ethics, were PTS, had misunderstoods and out TR 0. To get them you do  a
3 May 72 P/L, a 5 April 72 P/L, Method 4 on their courses and make  them  do
real TRs, especially Zero. And they'll be ready.

You get a list of area auditors and contact them and do the  above  on  them
and you'll have Estos who are half-trained already.

Failing this or in addition to it just plain recruit.

C. The first post a new E Esto should take is Dept 1.

He does NOT "hat the HAS" or "just do programs." He  rolls  up  his  sleeves
and WORKS as director of Dept 1.

He recruits, he posts up Dept 1. He hats the hell out of Dept 1.

He makes a Department I that really really flows in personnel, puts  up  org
bds and hats.

WHEN he has a Department I FUNCTIONING he can  begin  to  recruit  Estos  as
well as other org staff.

If he can't get a Dept I whizzing he has no business being an Esto, does
he?

229



00mr-

He does NOT put in Dept 2 or act as Dept 3. He makes the HAS handle these.

With a strong, working Dept 1, an Esto system can then go in.

D. Musical chairs is the commonest reason any org collapses.

A "new broom sweeps clean" complex will wreck any org.

An E Esto on arrival, taking over Dept 1, FREEZES ALL PERSONNEL TRANSFERS.
He does not permit even one transfer.

The only exception would be where a musical chair insanity has just
occurred. If this was followed by a stat crash then one REVERTS THE ORG TO
THE UPSTAT PERIOD and then FREEZES PERSONNEL TRANSFERS.

But before one reverts one must evaluate the earlier period by stats  to  be
sure it WAS the upstat period.

By freezing personnel one protects what he is building.

Almost all musical chairing is the work of a suppressive except when  it  is
the work of an idiot.

E. Anyone trying to hold Dept I in a perso nnel- starved org  is  holding  a
hot seat as any HAS or Personnel Director can tell you.

Body traffic to this dept in any medium-sized org defies belief.

It looks like Grand Central Station at the rush hour.

9916

      "I have to have  Where is my Course Super   etc.,

etc., etc., is the constant chant.

You can spend the whole day interviewing staff execs and get nothing done.

There is a right way to do all these things and a billion wrong ways.

Obviously the answer to all their problems is to get and train  new  people.
Yet how can one in all the commotion?

Ninety percent of these requests are from people who  are  not  hatting  and
using the people they already have.

The right way is on any new personnel demanded one gets  Dept  3  to  do  an
Inspection and Report Form for people in the area  of  the  exec  doing  the
demanding.  You  will  find  very  often  unhatted,  untrained  and   wasted
personnel and many outnesses.

You hold the line on  personnel  by  saying:  "Handle  these  unutilized  or
halfworking staff or these outnesses. You are here on my  procurement  board
as entitled to the (give priority, 3rd, 8th) person we hire or recruit."

And get industrious in recruiting, using all standard actions  for  that  is
the only way things can be solved.

Most orgs would run better on less people  because  the  personnel  are  not
hatted or trained. One org, two years before this writing, made  four  times
as much money on half the personnel it now has.

Unhatted, the staff is  slow  and  uncertain.  Unproducing,  the  div  heads
demand little.

But they sure can scream for more personnel!

No org ever believes it is overmanned.

F. Some divisions (like the usual Treasury or Dissem)  can  be  undermanned.
Key income posts most often are empty.

When one mans up an org one sets priorities of who gets personnel.

This is done by PRODUCTION paralleling. One mans up against production.

230



New people come in through Div VI. They are signed up by  Div  11.  Delivery
is done by Div IV. Money is collected by Div 111. That gives you a  sequence
of manning up.

You man income and delivery posts with new hirings.

The E Esto is trying to get in a Dept I so of course he gives this .1
priority as well.

Until the income is really rolling in and  the  delivery  rolling  out,  one
does very little about other areas.

Having gained VOLUME, one now begins to man up for  quality.  This  means  a
Cramming and a WC Section in Qual. It means more HCO.

One now hits for future quantity  by  getting  auditors  in  training,  more
upper execs in training.

When the org is so built and running and viable it is time  the  whole  Esto
system got manned up.

G. Every 5th person hired on an average should be put in Dept I as a Dept  I
extra personnel who does Dept I duties and trains part-time as an Esto.

This gives the E Esto additional personnel in Dept 1.

It also begins an Esto right.

His most essential duties as an Esto are Dept I type duties.

You eventually have a  bulging  Dept  1.  You  have  a  basic  Dept  I  that
functions well and will continue so. You have  the  Esto  trainees  who  are
working in Dept I as Dept I personnel. And  you  have  of  course  some  new
people who are HCO Expeditors until they  get  in  enough  basics  for  real
regular posting.

This makes a fat Dept I and proves one can Esto!

SUCCESS

If an E Esto introduces the Esto system exactly as above  and  in  no  other
way, he will be a success.

Like an auditor varying processes or  altering  HCOBs,  a  new  E  Esto  who
varies the above will bring about disaster.

Where E Estos have gone into orgs other ways or where the  system  has  been
varied, stats have crashed.

By going in this way, as above, it can be a wild success.

How fast can you put in an Esto system? It takes months  of  hard  work.  It
depends really on how good the E  Esto  is  at  recruiting,  org  bding  and
hatting.

If he's good at these things the time does not stretch out to forever.

For comparison, it took half a year each to build DC,  Johannesburg  and  SH
to their highest peaks. They were all built  from  a  Dept  I  viewpoint  of
recruiting, org bding and hatting hard enough to get production.

So this is the oldest pattern we have-Dept I evolves the org.

When the org gets too big Dept I loses touch. You extend it  into  each  div
and you have the Esto system. And you have Estos.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

231



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 23 JULY 1972R

Remimeo     REVISED 20 DECEMBER 1978

(Revisions in this type style)

                      Establishment Officer Series 23R

                            Executive Series 15R

                               Org Series 31R

THE VITAL NECESSITY OF HATTING

On a graph analysis of past stats, my campaign on hatting where a hat was  a
checksheet  and  pack  apparently  introduced   a   steady   rise   of   the
international gross income.

Studying this further I discovered a new basic, simple fact:

HATTING = CONTROL

A person who is hatted can control his post.

If he can control his post he can hold his position in space-in  short,  his
location. And this is power.

When a person is uncertain, he cannot control his post.  he  cannot  control
his position. He feels weak. He goes slow.

If he can control his post and its actions he feels confident. He  can  work
effectively and rapidly.

The key is CONTROL.

Control is the ability to START, CHANGE and STOP.

When he is hatted he knows the tech of HANDLING things. Thus he can  control
them. He is at CAUSE over his area.

If you have an org  composed  only  of  weak  wobbly  posts,  they  tend  to
collapse in on each other. There is no POWER.

The org then cannot be CAUSE over its environment because it is composed  of
parts which are not cause. The whole is only the sum of its parts.

If all the parts are each one at cause, then the  whole  will  be  at  CAUSE
over its environment.

Only an org at CAUSE can reach and CONTROL.

Thus a fully hatted org can be at cause over its environment. can reach  and
control its fates and fortunes.

THUS THE PRIMARY TARGETS OF AN ESTO ARE

A. ESTABLISHED ORG FORM and

B. FULLY HATTED PERSONNEL.

BASIC SEQUENCE OF HATTING

1. Recruited or hired. Signs contract

232



2. Posted in HCO Expeditor pool or division if divisional recruit  (per  HCO
PL 2 Sept 74R RECRUITING AND HIRING).

3. In SO new recruit goes directly onto Product Zero in the Estates  Project
Force and upon graduation from EPF goes to HCO Exoeditor pool (Ref: FO  3727
PRODUCT TRAINING LINE-UP).

4. Staff Status Zero.

5. Eligible for student auditing but must have a stat  and  demonstrated  he
has produced on post.

6. Staff Status I.

7. Staff Status //.

8. Posting as other than an HCO Expeditor.

9. Full hatting with a checksheet and pack with Word Clearing M6, M7 and
M4.

10. Method 1 Word Clearing, Primary Rundown or Primary Correction Rundown.

11. Administrative or tech training (OEC or auditing).

No one should have any other training much less  full-time  training  before
Step 10 in the above. Flag Orders in the Sea Org  may  change  this  line-up
slightly but it is basically the same.

There are time limits placed on how long it takes to  do  SSI  and  SSII.  A
person who can't make it is routed  to  Qual  where  he  is  offloaded  with
advice on how to get more employable. (In the SO it is Fitness Board.)

TIME-TESTED

The above is the route that has been tested by time and found good.

Other approaches have NOT worked.

Granting full-time training at once is folly. The  person  may  get  trained
but he'll never be  a  staff  member.  This  is  the  biggest  failure  with
auditors-they don't know the org. Admin training with no org  experience  to
relate it to is a waste of time.

This was how we built every great org. And  when  it  dropped  out  the  org
became far less powerful.

Old-timers talk of these great orgs in their great days. And they will  tell
you all about the org boarding and hatting that went  on.  How  the  Hatting
Officer in HCO and the Staff Training Officer in Qual worked as a team.  And
how fast the lines flew.

The above steps have stood the test of time and are proven by stats.

RECRUITING AND HIRING

You never recruit with a promise of free courses or free auditing. Not  even
HASes or HQSes. You recruit or hire somebody to be part of the team.

OPEN GATE

If any opinion or selection is permitted as to who is going  to  be  let  on
staff, all recruitment and hiring will fail.

By actual stats when you let anyone say "No! Not him!  Not  her!"  the  gate
shuts, the flow stops. And you've had it.

Requirements and eligibility fail. The proof is that when they have  existed
in orgs, the org wound up with only PTSes and no-case-gains!

233



The right answer is FAST FLOW hiring. Then you have so many that  those  who
can't make it drift low on the org board or off. You aren't trying  to  hold
posts with unqualified people "who can't be spared."

In a short-staffed org "looking only for the best  people"  the  guy  nobody
will have gets  put  on  an  empty  "unimportant"  department.  He's  now  a
director!

It only happened because you didn't have dozens.

The answer is NOT lock the gate or have requirements. The answer is HAT.

An org that isn't hatted goes weak and criminal.

Don't be selective in hiring or recruiting. Open the gates and HAT!

Follow the steps given above and you have it.

Don't spend coins like training or auditing  (or  travel)  on  people  until
they have proven their worth. No bonuses or high pay for anyone  until  they
have reached and attained Step 8 (a good stat). The cost of such  fast  flow
hiring is not then a big factor.

The only trouble I ever had with this  was  getting  div  heads  to  UTILIZE
their staff. A FIRST JOB FOR AN EXECUTIVE IS TO GET THINGS  FOR  HIS  PEOPLE
TO DO. AND KEEP THEM BUSY AT PRODUCTIVE THINGS.

So I used to have to go through the org that did FAST FLOW HIRING  regularly
and get people to use their new people. And to move off those who could  not
work.

This was ALL the trouble I had with the system.

And until I enforced FAST FLOW  HIRING  there  was  always  some  effort  by
someone to close the gate.

ALL the great executives in Scientology came up in such orgs.

With a flow of people the best move on up. The worst, if any, drop off.

Only orgs with restricted hiring or recruiting give trouble.

IN A FAST FLOW HIRING ORG THE HAS  AND  ESTOs  MUST  BE  ON  THE  BALL.  THE
BREAKDOWN OCCURS WHEN THEY DO NOT HAT AND  KEEP  ON  TOP  OF  THE  PERSONNEL
SCENE.

Fast flow hiring only breaks down and gets protested  where  HCO  and  Estos
are not doing a top job. They have to  really  handle  the  personnel,  post
them, hat them, keep the form of the org.

A fully formed org in a heavily populated location would  need  hundreds  of
staff. It would make hundreds of thousands.

But only if it is fast flow hiring, hatting, holding the form  of  the  org,
and only then could it produce.

L. RON HUBBARD

Founder

Revision as assisted by

Arden Hansen

FMO 2025 I/C

LRH:AH:nt.jk.gm , 1978

234



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 25 JULY 1972

Remimeo

EstabUshment Officer Series 24

THE FORM OF THE ORG

You often hear that one should "hold the form of the org."

What is it?

Some people think it is making sure the command channel Ounior to senior  to
senior's senior or on down) is held. This is only a small  part  of  an  org
form.

In any new group of a few people, each and every one  wears  all  the  hats.
This is not an org form.

An org form is that arrangement of specialized terminals which  control  and
change the  production  and  organization  particles  andflow  lines  of  an
activity.

A terminal for this purpose is something that has  mass  and  meaning  which
originates, receives, relays and changes particles on a flow line.

SPACE

To have any form at all, an org must have space.

The space must be located where it can have particles  and  flows  or  where
the particles and flows with which it deals can easily be gotten to  it  and
sent out from it and  where  it  can  conduct  its  activity  without  undue
disturbance and at a  velocity  and  volume  with  exchange  that  makes  it
viable.

There are a number of factors involved as noted in  the  above  requirement:
located, can have particles and flows, can get them in  and  out,  no  undue
disturbance, velocity and volume, exchange and viability.

Although this looks complex, it is actually very simple as it involves  just
those  elements  and  others  are  relatively  unimportant.  When  you   add
aesthetics of building and grounds, and carpets and desks you  can  get  too
far off the definition of space  requirement  when  these  are  given  first
priority. These are something you build up to. Clean and neat are closer  to
importance after the basic definition is met.

So one has a space. It has to be big enough for the traffic  volume  it  has
to handle to be viable. This is  usually  smaller  than  people  think.  The
space is a building or other structure.

So we have a space as an essential of org form.

Potential   Departing

Traffic     Traffic

Inflow

235



TRAFFIC GUIDE

Traffic, particles, flows, have to be guided. They have to be pulled in  (as
per Div 6, Div 2 Reg, Div 2 Letter Reg, ASR,  D  of  Tech  Services,  etc.).
These are reaches out into the potential traffic that pulls  it  up  to  the
space entrance point. In essence these posts work on the  potential  traffic
and get it up to the door. So org form can start  way  out  with  a  general
approach,  a  magazine  book  ad,  word-of-mouth,  PR,  an  FSM,  a   ticket
distributor, a book, etc. A specialized approach to specific  names  as  per
the tour, the Letter Reg working CF,  the  Phone  Reg,  etc.  One  generally
directs the whole "general public" toward the space  and  also  specifically
directs specific people in it toward the space.

This is the org form at work that functions outside the  org  space.  If  it
doesn't function the org space itself gets no inflow.

Departing traffic must also be guided-and is too  often  neglected.  An  org
without its CF up-to-date and used is neglecting its departing traffic.

England, for instance, loses a  huge  percent  of  its  car  sales  business
because it has no decent spare  parts  stockpiles  (government  taxes  spare
parts on the shelf). The  customer  who  purchases  often  gets  no  follow-
through.

Orgs that neglect departed traffic wind up with ARC broken fields.

So org form must include its own space  and  the  spaces  of  its  potential
traffic and its departed traffic as they relate to the org's activity.

ROUTING

When particles arrive at the org space proper they must be routed  AND  MUST
CONTINUE TO BE ROUTED FROM THE MOMENT THEY ENTER UNTIL THEY  LEAVE  THE  ORG
SPACE.

Thus there must be a Reception for bodies, for mail, for phone, for  telexes
and for messages in general.

There must also be an exit point for all these things and  someone  to  send
them on their way out of the org space.

Lack of a Reception that can and does route can break an org of any type  or
kind and has done so.

When bodies can't contact the org they assume the org is  dead.  And  so  it
dies. The org can be so mislocated for its type of  traffic  that  it  can't
get anyone in or out. Then too the org will seem dead.

No matter the INTERNAL form of the org, its external form can be  so  remote
that success is impossible to maintain. Thus org form does  not  begin  with
reception and routing. This is an action  that  occurs  after  the  external
requirements are met.

But once the particle (body, despatch, raw materials, whatever)  is  at  the
door RECEPTION must establish the routing.

This is done usually with an each-step-signed-off ROUTING  FORM  that  gives
the full road map of the particle.

Without this, particles don't  enter,  jam  up,  get  lost,  go  astray  and
DESTROY THE INTERNAL ORG FORM by making confusions.

Thus Reception has to have a very good idea of particle  types  and  orgform
even to be able to issue the right routing form.

INTERNAL LINES

Routing forms often carry a particle into the org but not out.

This becomes a serious problem in getting anything completed. The  start  is
on the form and not the exit. Thus the particle doesn't exit  but  piles  up
some place.

When you see a mass of paper (in-baskets, pending, etc.) or a jam of  bodies
(Reg waiting room, D of Ts, etc.) or piles of  unused  pamphlets  or  unsold
books you know two things at once:

A. Routing is unknown or not done or incomplete but in any event is faulty.

236



B. The internal org form is bad.

TERMINALS

To say internal lines are out, one must also be saying internal terminals
are faulty.

Ideally, the internal org form is designed for flows with the target of
production.

The internal space has to be so allotted and arranged that the lines flow.

The lines flow to terminals in the sequence of change required in each
particle.

The principal particle, meaning the most important one for that org has  the
total priority for design of space and terminals.

If wheat were being processed, then the whole space and terminal  allocation
of the plant or org, to have orgform would have to deal with wheat.

In a Scientology org it is public bodies. Thus the  whole  design  of  space
and flows must deal with public bodies.

This is easily violated and when it is it makes a terrible confusion.

You have to trace such a flow with what is called a DUMMY  RUN.  This  means
going through the place pretending to be the principal particle.

When you first try this in most plants or orgs you really  begin  to  wonder
how anything happens ever.

The answer is correction of location, either  of  the  whole  space  or  the
terminals in the space.

One can dummy run as anything. First dummy run the  principal  particle  and
lay that out by what has to be done to adjust the  space  and  terminals  to
it. Then as a telex, then a despatch, then as a piece of money, then  as  an
invoice, etc.

When you've done all these you'll really know what you're doing in terms  of
space and terminals. Until then it's all guess work.

You will find you can't get in, you can't get handled,  you  can't  stay  in
and you can't get out!

So you adjust space and terminals for the main particle  and  then  for  the
lesser particles.

You will achieve a near optimum compromise.

Then you arrange it and drill it in on the terminals.

After that things will speed up and stats will go up.

HOLDING THE FORM

You now and only now have the FORM OF THE ORG.

It must be drawn up as org boards  and  flow  plans  and  terminal  location
plans (3 quite separate things). These three plans give you the form of  the
org.

Then you have to drill-in EACH OF  THE  THREE  PLANS  usually  with  Chinese
school.

You do the routing forms.

Now by HATTING you give each terminal control over his portion of the line.

The terminals will thereafter interact to bring about the needful flows.

And if your product is good and desired, the place will boom.

And that's what's really meant by the FORM OF THE ORG.

L. RON HUBBARD

Founder

LRH:nt.gm

237



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 JULY 1972

Remimeo

Establishment Officer Series 25

FORM OF THE ORG

AND SCHEDULES

Those parts of the org engaged upon similar functions must be  on  the  same
schedule.

In essence, you can't play a ball game with different members  of  the  team
appearing at different times. It would look pretty  silly  to  have  a  goal
keeper show up in the last third of the game.  By  that  time  it  would  be
lost.

If over a 24-hour period people on public lines  showed  up,  each  one,  at
different hours, there would be no public line. Thus there would be  no  org
form. For there could be no flow of the major particle.

If an activity is open for business at 0900, let us say, the persons on  key
posts would have to be there at 0830 or at least 0845 in order to "open  for
business" (which means open for flow) at 0900.

Precision of schedule is determined by the type of particle the org form  is
set up to handle.

A service org handles bodies. A  management  org  handles  messages  as  the
principal flow particle. A refinery would handle crude  oil.  A  flour  mill
wheat, etc.

Of all particle types bodies tend to be the most random and are most  likely
to erode or knock out org form.

Thus a service org handling bodies has to be established and hatted about  a
dozen times more than one which handles inert particles.

This is one of the reasons "standard business  practices"  do  not  work  in
setting up an org. They are not strong enough or fast enough,

Schedules become very important in  orgs  which  handle  bodies.  The  lines
rapidly jam up and  make  considerable  confusion  wherever  the  line  goes
faulty.

As almost every part of an org requires  internal  cooperation  from  almost
every other part of an org, lack of schedules, unreal schedules  or  failure
to keep a schedule are,  after  hatting  and  line  establishing,  the  most
likely causes of confusion or nondelivery.

It is important to start as a team and it is also important to stop  as  one
if there is a "next shift" as in a Foundation. As the  staffs  collide,  the
students collide and the space tangles.

Operating a number of schedules at the same time for different parts of  the
org can get complicated. Governments do this  to  ease  off  automobile  and
commuter traffic but then they (governments) do  not  produce  much  and  it
doesn't matter. Half a dozen daily schedules running at the  same  time  for
one org can cause a considerable confusion.

The best schedules are very simple ones. You can have a  schedule  that  has
so many times in it, so many musters, that it is a full day's work  just  to
keep the schedule!

238



A grave fault in schedules is  not  allowing  any  slack  between  two  time
points. Example: Class ends 1600, next class, three blocks away,  begins  at
1600! Either one class has to let out early or everyone is late to the  next
class!

Schedules commonly omit any time spaces to take  care  of  things.  Example:
0900 on post. 0900 public lines open. Well, it's going to  take  15  minutes
or more to get a post set up, so the schedule gets violated.  Thus  we  have
it saying 0900 when it can only be 0915! This makes  schedules  look  unreal
to people, so they drop out. A correct version would be 0840 on  post.  0850
open for business checklist collected. 0900 public lines open.

CLOSING LINES

Closing of lines costs a great deal. An extreme example is  closing  an  org
for 2 weeks "so everyone can have a vacation." African orgs used to do  this
and would often lose their higher stats for months.

Closing orgs "during a congress" can cost.  During  one  national  congress,
several franchises closed for a week and had  to  fight  crashed  stats  for
months.

Closing an org at noon or for supper can ball up lines and can have a  heavy
effect on stats.

All this "closing" is simply saying "we're dead."

Lines have a tendency to keep flowing when flowing and remain  stopped  when
they are stopped.

If an org began at 0900  and,  with  a  Foundation  or  second  and  weekend
shifts, ran continuously until 2300 seven days  their  general  stats  would
improve out of proportion to the additional time open.

Management orgs run very raggedly on schedules as their traffic  loads  vary
so greatly.

It takes good observation and skill to write a good schedule for an org.  If
an unreal schedule exists or if one is too complex, it  will  not  be  kept.
Peak loads have to be taken into account and their  approximate  times  have
to be established. There are also no-load times and to cover  these  with  a
full org is to fail to have an adequate org there for the peak loads.

Careful, real study, on the ground, watching traffic flows, has to  be  done
to make a real schedule that will be kept and which boosts production.

A schedule which does not boost production or a schedule just to  have  one,
are a waste of everyone's time.

So select the principal particle the org handles. Use it  to  determine  the
times of peaks and no-loads, study what goes on in  actual  fact.  And  then
write the schedule. And see that it is kept.

This will greatly improve org form.

L. RON HUBBARD

Founder

LRH:nt.sb.bh.gm

239



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 JULY 1972

Remimeo

                       Establishment Officer Series 26

                             Executive Series 16

                                Org Series 32

                                ESTABLISHING

                         HOLDING THE FORM OF THE ORG

If a person who could not play a piano sat down at a piano  and  hit  random
keys, he would not get any harmony. He would get noise.

If the head of a division gave orders to his staff  without  any  regard  to
their assigned posts or duties, the result would be confusion and noise.

That's why we say a division head "doesn't know how to play the piano"  when
he knows so little about org form that he continually violates it by  giving
his various staff members duties that do not match their hats or posts.

But even if one could play the piano, one would have to have a piano to
play.

SPECIALISTS

Each org staff member is a specialist in  one  or  more  similar  functions.
These are his specialties.

If he is fully trained to do these he is said to be HATTED.

The combined specialties properly placed and being done add up to  the  full
production of an org.

The org form is then the lines and actions and spaces and flows  worked  out
and controlled by specialists in each individual function.

These specialists are grouped in departments which have certain  actions  in
common.

The departments having similar functions are grouped into divisions.

The divisions combine into the whole org form.

It is far less complex than it looks.  It  would  be  very  complicated  and
confusing  if  there  weren't  divisions  and  departments  and  specialized
actions. Without these you would get noise and very limited  production  and
income, and at great strain.

Take a theater as an example. There are people who advertise it;  these  are
the public relations people; they are  hatted  to  get  publicity  and  make
people want to come to the play; call them the PR Division.  There  are  the
producers and directors; they are hatted to present a performance  and  make
it occur; call them the  Production  Division.  There  are  the  actors  and
musicians; call them the Artists Division. There are the property men;  they
are hatted to  get  costumes  and  items  needed;  call  them  the  Property
Division. There are the stage hands and electricians  and  curtain  and  set
men; call them the Stage Division. There are the ticket  sellers  and  money
handlers and payroll  and  bills  payers;  they  are  hatted  on  money  and
selling; call them the Finance Division.

240



There are the people who clean the theater and  show  people  to  seats  and
handle the crowds; call them the House Division. And there are the  managers
and playwrights  and  score  writers  and  angels  (financiers);  call  them
loosely the Executive Division.

Now as long as they know their org board, have their flows plotted out,  are
hatted for their jobs and do a good  job,  even  a  half-good  play  can  be
viable.

But throw away the org board, skip the flows, don't  hat  them  and  even  a
brilliant script and marvelous music will play to  an  empty  house  and  go
broke.

Why? Because an org  form  is  not  held.  Possibly  an  untrained  unhatted
producer will try to make the stage hands sell  tickets,  the  actors  write
the music, the financiers show people to their seats. If he didn't know  who
the people were or what their hats were he might do just that.

And there would be noise and confusion even  where  there  was  no  protest.
People would get in one another's road. And the general  presentation  would
look so ragged to the public they'd stay away in droves.

ESTO ACTION

Now what would an Esto (or an Executive Director) have to do  with,  let  us
say, an amateur, dilettante theatrical company that was about to bog.

Probably half the people had quit already. And even if there were people  in
the company they would probably need more.

The very first action would be to Esto Series 16 the top men to make money
quick.

The first organizing action would be to kick  open  the  hiring  door.  This
would begin with getting out hiring PR and putting  someone  there  to  sign
people up who came to be hired  (not  to  test  and  audition  and  look  at
references, but just to sign people up).

The next action would be to do a flow plan of public bodies  and  money.  So
one sees where the org form reaches. Then a schedule.

The next action would be to do an org board. Not a 3-week job. (It takes  me
a couple hours to sketch one with a  sign  pen  for  posting.)  AND  GET  IT
POSTED.

One then takes the head of each of these divisions and hats him on what  his
division is supposed to do and tell him to do it. NOW.

You make and post the flow plan, org bd and  terminal  location  plan  where
the whole company can see them.

Chinese drill on a flow plan to show them what they're doing  and  what  has
to be done.

Chinese drill on the org board including introducing each  person  named  on
it and getting it drilled, what he does and who he is.

You Chinese drill the terminal locations where each of  these  persons  (and
functions) is to be found.

You get agreement on schedules.

You now have a group that knows who specializes in what and what's  expected
of each.

You get the head of the whole company to work with and hat the heads of  his
divisions.

241



Now you get the heads of divisions to hat their own staffs while you help.

And you get them busy.

You then put the polishing  touches  on  your  own  Dept  I  (personnel  PR,
personnel hiring,  personnel  placement,  org  bds,  hat  compilations,  hat
library and hatting hatting hatting).

And by hatting and insisting on each doing his specialized job  and  getting
seniors to HOLD THE FORM OF THE ORG by ordering  the  right  orders  to  the
right specialists and targeting their production  and  MAGIC!  This  amateur
theatrical company gets solvent and good enough  to  wind  up  on  Broadway.
It's gone professional!

You say, yes, but what about  artistic  quality?  What  about  the  tech  of
writing music and acting. . . .

Hey, you overlooked the first action. You kicked the  door  open  on  hiring
and you hatted and trained. And you let go those who couldn't get a stat.

Eventually you would meet human reaction and emotion  and  would  put  in  a
full HCO and a full Qual particularly Cramming.  But  you'd  still  do  that
just to be sure it kept going.

Yessir, it can't help but become a professional  group  IF  you,  the  Esto,
established and made them HOLD THE FORM OF THE ORG and  produce  while  they
did it.

An Executive Director can do all this and produce too.  The  great  ones  do
things like this. But here it is in full view.

A Scientology org goes together just like that. Which could be why, when  we
want to get something started, we say:

"Get the show on the road!"

But there is no show until it is established and the FORM OF THE ORG is
held.

You are luckier than the amateur theatrical company's Esto. You have  policy
for every post and a book  of  it  for  every  division  and  all  the  tech
besides.

So there is no valid reason under the sun  you  cannot  establish  and  then
hold the form of the org.

L. RON HUBBARD

Founder

LRH:nt.bh.ts.gm

242



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 21 AUGUST 1972

Remimeo Hatting Officer Hats

Establishment Vficer Series 27

EFFECTIVE HATTING

Here is a report from the  Ship  Programs  Chief  on  Flag  of  the  results
obtained from following my orders on how to get Estos to hat people.

It should be noted that the procedure  laid  down  by  my  despatch  on  the
second half of this PL was exactly how I operated to develop the  data  used
for Esto Series No. 16. (HCO PL 24 April 72 HATTING THE PRODUCT  OFFICER  OF
THE DIVISION.)

THE REPORT

"Dear Sir,

"We have been having trouble getting Hatting Officers in Dept I to  actually
produce. They don't complete cycles of action to a result,  they  don't  hat
from the top down or hat for production. They don't seem to  understand  why
they are hatting and what are the results they should achieve in hatting.

"This was the same problem we had back in May of this year in getting  Estos
to do effective hatting.

"At that time you sent me the attached despatch addressed to the Exec  Esto.
I used it faithfully and, with it, actually got hatting to occur.

"The results are still evident on the ship. With the DEO  hatting  per  this
despatch the then Dissem Division came right up in production and  is  still
producing very well as the PR and Consumption Bureau.

"The Treasury Division improved markedly. Some improvement was  attained  in
the Steward's Dept, Electronics and Qual Div  where  all  Estos  hatted  per
this despatch.

"All of these Estos had big wins hatting because I used  the  data  on  this
despatch and forced them to persist with a hatting action to a RESULT.

"I kept a big log book with each hatting cycle noted down.  I  insisted  the
Esto kept at that cycle until it was complete.

"Each division had its own program for hatting from the top down.

"Each exec and staff member had his or  her  own  personal  hatting  program
kept by the Esto. These were followed and checked off as they were done.

"A number of the blue chip FSO crew now so valuable for Flag stability  were
made by heavy hatting last spring.

"I know the data on your despatch works if it is done.

"The Estos under me at the time first  had  to  be  forced  to  hat  and  to
continue hatting to a result. Apparently their lack of confront  had  to  be
overcome by a hard driving senior.

243



"Generally, once they started getting results, they  no  longer  had  to  be
forced. They knew that  Esto  tech  worked  and  willingly  went  ahead  and
applied it with vigor.

"Their confront was improved as well by doing Esto No.  16  drills  on  each
other and running TRs 6-9 on each other every evening for at least an hour.

"Only by applying the principles laid out by you on  the  attached  despatch
was I able to get real hatting done by others,

"As we are having the same problem now with Hatting Officers in  Dept  1,  1
feel that if this data were released as policy I could  force  it  into  use
and get the ship hatted up faster."

GETTING HATTING DONE

Here is the despatch I wrote to the Exec Esto on Flag back in May of this
year:

Inspections do not show Estos being industrious  in  their  divs.  They  are
more active than they were.

They are not hatting from the top down and not hatting to get production.

Basically they do not parallel the current push. They do little cycles  down
the org board.

A general grasp of what's needed and  wanted  is  missing.  Thus  Estos  are
actually in or below Non-Existence and have not achieved upgrade from a  new
post or new system condition.

They are getting individual results in some cases. They are  not  integrated
into the scene with what they are doing.

They would have to upgrade their handlings about 500% in order  to  actually
effect a marked change in the org.

Inspections show only a small % of Estos do Esto actions for a small  period
of time each day. They have other fish frying or are acting a bit confused.

If you had that many auditors and found  them  auditing  pcs  as  seldom  as
Estos are found doing Esto actions the HGC stat would be nearly zero WDAH.

I know what I'm talking about here because I am piloting the system to  find
out why it isn't producing marked changes. I find that, with 2 messengers  a
watch of 6 hours, working myself part-time on it, I have been  able  to  get
areas working. They were NOT  producing  under  the  attention  of  existing
Estos.

The difference is, I force those I find not working at the top  to  actually
produce and demand production from their staffs.

In doing this I have never crossed or found an Esto working on  it.  I  have
found 2 div heads who were refusing to be gotten  going.  Both  of  these  I
later got going.

Thus from my viewpoint

(a) It can be done with untrained Esto Commodore's messengers.

(b) I find messengers who know  little  of  a  meter  can  use  one  without
coaching or training-

(c) Production can be achieved by getting people to work.

(d) That Estos have to be run and exactly ordered to do exactly so and so.

244



(e) That in running Estos one has to keep track of what one is doing with
them so one doesn't get a lot of half-dones. One has to make up for a lack
of persistence.

Therefore 1 conclude

A. One has to know what he is trying to build.

B. One has to target and direct its building.

C. One has to force in a persistence.

1 also conclude that training of Estos is secondary to getting them to DO
and that 1ack of training" is an excuse not to do.

This is what 1 am learning about the system from actually working it.

The current on-board application of the system lacks planning, direction
and persistence, does not hat from the top down and does not hat toward
production. It MUST BEGIN.

L. RON HUBBARD

Founder

LRH:FH:nt.gm

245



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 23 JULY 1981

Remirneo    Issue 11

                                   CANCELS

                         BPL 4 Oct 72R Esto Ser 28R

                           Rev. & Reiss. 9 Jul 74

                            CANCELS AND REPLACES

                      BPL 4 Oct 72R CANCELLED 22 Jan 77

                          Esto Ser 28RA, Same Title

Establishment Officer Series 28RB

                         HANDLING PTS AND OUT-ETHICS

                             PERSONNEL CANCELLED

REFERENCES:

HCOB 10 Aug 73   PTS HANDLING

HCOB 24 Apr 72 1 PTS INTERVIEWS

HCO PL 3 May 72R ETHICS AND EXECUTIVES

HCOB 20 Apr 72 11      PRODUCT PURPOSE AND WHY AND WC

      ERROR CORRECTION

HCO PL 16 May 80 1     ETHICS-PTS TYPE A POLICY ON HANDLING

      ANTAGONISTIC SOURCES

BPL 4 October 72R, Esto Series 28R, HANDLING PTS  AND  OUT-ETHICS  PERSONNEL
is hereby CANCELLED.

This BPL stated that before doing a 3 May PL or  PTS  handling  on  a  staff
member one should verify that a situation does  exist  by  STATISTICS.  This
brought about the false idea that a PTS staff member had to have down  stats
before he could receive any PTS handling.

In an effort to do away with this false idea, BPL 4  Oct  72R  CANCELLED  22
Jan 77, Esto  Series  28RA,  HANDLING  PTS  AND  OUT-ETHICS  PERSONNEL,  was
written to cancel Esto Series 28R. In doing so, however, no explanation  was
given as to why this issue was being cancelled.  Therefore  BPL  4  Oct  72R
CANCELLED  22  Jan  77,  Esto  Series  28RA,  HANDLING  PTS  AND  OUT-ETHICS
PERSONNEL, is CANCELLED and REPLACED by this policy letter.

PTS tech has helped salvage many staff members. Its full use is to be
encouraged.

The  correct  policies  and  bulletins  for  handling  PTS  and   out-ethics
personnel are given in the reference section above.

L. RON HUBBARD

Founder

Assisted by

Bill Morey

Mission Issues Revision 2nd

Flag Compilations Bureau

As accepted by the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:BM:dr.gm

246



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 24 JUNE 1973R

Remimeo     REVISED 23 OCTOBER 1975

      (The revision is the signature.)

      Establishment Officer Series 29R

      Personnel Series 27R

The concept of what is a "complement" is probably  generally  misunderstood.
This means the officially allowed  number  of  persons  and  the  officially
designated posts for an activity, whether an org or a ship.

Without these basic complements orgs get misposted. Instead of ten  auditors
they have one auditor and nine admin personnel somewhere else.

This general concept of complement is generally missing  and  underlies  the
reason why org boards are, to some degree, in disuse.

In any org which is not doing well you may find  not  enough  personnel  and
too many personnel. You may also find  that  the  personnel  there  are  not
posted onto the post necessary to be held.

Designating the post necessary to be held is what is meant by  "assigning  a
complement."

I never realized the concept was hard to get across until recently.  In  the
dictionary it says that a complement is simply a full list of  the  officers
and men of a ship. This falls so far short of the actual definition that  it
generates confusion.

A complement is the full list of posts and where  they  belong  on  the  org
board, which must be held. This gives you a slightly different idea of  what
is meant by 66complement."

One org, for instance, didn't have a standard complement. It simply had  all
possible posts which could be held in the org. This does not tell  you  what
posts should be held in the org.

Therefore, personnel control is not possible.

In the case of another org there was a maximum  allowed  complement  but  it
was never filled up.

There is a complement for every separate and individual org.

Until the complement of an org is laid out, known and filled, there will  be
continual trouble with personnel and difficulties in handling it.

The sooner this is straightened out, the easier time there will be for all.

L. RON HUBBARD

Founder

LRH:mg.gm , 1975

247



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 22 NOVEMBER 1973

Remimeo

Esto Series 30

All persons doing Esto work may only use the title "Esto I/T" (In-Training)
until he has successfully and honestly completed:

1. HCOB 21 Nov 73 "The Cure of Q and A."

2. The PRD (Primary Rundown).

3. The OEC.

4. The Esto Series.

5. Has shown on post the ability to see situations and handle them
terminatedly.

6. Gets staff members actually producing by increased stats.

Any reasons for failure of the Esto system anywhere have derived from (a) a
dishonest "completion" of the PRD and (b) Qing and Aing instead of seeing
and handling situations terminatedly.

An Esto must be at CAUSE.

L. RON HUBBARD

Founder

LRH:nt.gm

248



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 9 MAY 1974

Remimeo

PROD-ORG, ESTO AND OLDER

SYSTEMS RECONCILED

In the last three  years  there  have  been  two  new  organization  systems
developed. These were THE PRODUCT-ORG OFFICER SYSTEM and  the  ESTABLISHMENT
OFFICER SYSTEM.

Reviewing these I find that these  systems  not  only  reconcile  with  each
other but also with the HCO Exec  Sec  and  Org  Exec  Sec  system  and  the
Supercargo, Chief Officer system of the Sea Org.

TOP DOWN

In '67 1 found that an organization must always be posted from the top
down.

This means it cannot be posted with gaps between the top or lower levels  on
the org board.

The org, of course, must always have a top.

And there must not be a gap between the top and the next lower post. Or  any
gaps on the way down.

Example: Orgs run by a committee but without a head of org seldom succeed.

Example: An org with a CO or ED, no HAS but only a Master-at-Arms or  Ethics
Officer in the HCO Division will not function but disintegrate.

Example: A musical group with an I/C and all the rest  just  musicians  will
deteriorate.

Example: A small vessel with three men aboard will  not  function  with  one
the Captain, another the cook and another the deckhand.

In the first example, there has to be  someone  responsible  for  the  whole
organization whether above or below the committee.

In the second example, an org without an HAS or HCO Exec Sec or  Supercargo,
there is no one to take all those lower functions  and  they  settle  on  an
overloaded top.

In the musical group  the  I/C  finds  himself  with  many  juniors  and  no
specialized organizational handling of anything.

In the small vessel all the functions  of  the  first  three  divisions  are
mainly abandoned and the last four as well.

All these and many more are lessons learned the hard way.

249



The seven division org board is present  even  in  organizations  that  know
nothing of it! And not knowing it or using it can bring chaos.

EARLIEST SYSTEM

In early days there was an HCO Sec in charge of the functions of  the  first
3 divisions (Exec, HCO, Dissem) and an Assoc Sec in charge of the  functions
of the last four divisions. These functions were  not  fully  known  as  the
seven division board had not been developed.

The org board evolved further and the HCO Exec  Sec  became  the  person  in
charge of the functions of the first three divisions and the Org  Exec  Sec,
the last four.

In the Sea Org these titles became Supercargo  and  Chief  Officer  but  the
functions were similar.

PROD-ORG SYSTEM

Then, within the last four years, the Product Officer/Org Officer system
was developed.

The Executive Director or Commanding Officer had (or was) a Product
Officer. The Product Officer was supported by an Org Officer to keep the
place organized.

THE ESTO SYSTEM

The Establishment Officer system or "Esto tech" was developed in the same
time period as the Prod-Org system.

The Esto kept the place established and organized for production and
despite heavy production demands.

RE-EXAMINATION

Looking over these systems, I find they fall into place naturally one with
the other.

The realization is that an  org  with  only  one  Product  Officer  and  Org
Officer has a gap-the HCO Exec Sec!

Actually an org needs TWO senior Product Officers-one to  get  the  products
of Divisions 7, 1 and 2 and one to get the products of 3, 4, 5 and 6!

When this gap exists, no one in real practice is functioning over Divs 7,  1
and 2 and so there is an imbalance of the org board. The org tends  to  fall
apart. It does  not  rapidly  expand  as  it  has  no  Product  Officer  for
expansion or dissemination.

ESTO SYSTEM

The Esto system with its powerful tech is really the Org Officer system.

The duties of the Org Officer in the Prod-Org system were not as fully laid
out as they might have been.

The tech of the Org Officer is really the Esto tech!

250



LRH

      Board of Directors

0     0

.C

            Flag Representative   Executive Director (Commanding Officer)

      0

0.    c

            HCO Exec Sec (Supercargo,        Org Exec Sec (Chief Officer,

            Product Officer Divs 7, 1, 2)         Product Officer Divs 3,
4, 5, 6)

0     9)    et

            .1.m

                 HCO Exec Sec's Org Officer  Org Exe, Sec's Org Officer

0.4

                 (HCO Exec Esto)  (Org Esto)

0

      U     0

0     $.

      -54        1     1    ---1  1    1     1    1

      ed    z    LRH Comm   HCO Sec          Dissem Sec Treasury Sec
Tech See    Qual Sec   Public Exec

      E     !~

            4.   Div 7 Div 1           Div 2 Div 3      Div 4      Div 5
Sec

0

Div 6

0

            1                     1

Usual Usual      Usual Usual      Usual           Usual Usual

Depts Depts      Depts Depts      Depts           Depts Depts

0

0     U



So where you have a Product Officer and Org Officer  to  the  org,  you  are
missing two posts and so are not posted from the top down!

You should have TWO Product Officers, one who is also the HCO Exec  Sec  (or
Supercargo) and one who is the Org Exec Sec (or Chief Officer).

And each of these has an Org Officer who is also an Esto and who uses Esto
tech.

This gives the ED (or CO) FOUR terminals  he  is  directly  operating  with,
even though the O/Os are also junior to and under their Product Officers.

SUMMARY

This ties together all existing systems.

It finds and fills an unnoticed gap in posting from the top down.

It prevents Estos from working independently from the side into the org  off
command chain.

In posting Product Officers use the old titles: HCO  Exec  Sec  (Supercargo)
and Org Exec Sec (Chief Officer), remembering that  these  are  now  Product
Officers operating on the Prod-Org system into their own divisions.

Post any Esto as an Org Officer under one or the other of these  executives,
one the "HES Org Officer" the other the "OES Org Officer." And  insist  they
use Esto tech and consider themselves Estos.

Size of org has little to do with it. A one-man org would  simply  have  all
these titles and functions. A ten-man org would be posted from the  top  and
all other functions directly below them not posted or  held  by  them  would
also be performed by them.

IMPORTANCE

Failing to post the top and from the top down is the main failure  point  in
ANY organization (not just ours).

Finding this gap is important and filling it will raise stats.

L. RON HUBBARD

Founder

LRH:ntm/ams.gm

252



            CANCELLED

HUBBARD COMMUNICATIONS OFFICE See page 255

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 12 NOVEMBER 1974

Remimeo     (Suspends HCO P/L 9 May 74)

IMPORTANT

PROD-ORG REINSTATED

As very few orgs have been able to effectively institute HCO P/L  9  May  74
which posted Org Officers as Estos under the HES and OES, mainly  due  to  a
scarcity of actual trained Establishment Officers and executives, HCO P/L  9
May 74 is suspended.

Orgs should revert to an ED or CO-Product Officer-Org Officer posting.

The Product Officer may retain the title of Chief Officer or  Org  Exec  Sec
and the Org Officer may retain the title of Supercargo or HCO Exec  Sec  but
their functions are exclusively that of the Product Officer and Org  Officer
of the org respectively, covering all divisions.

The CO or ED, Product and Org Officers form the Executive Council.

Anyone holding the post of HES 0/0 or OES 0/0 should take posts  in  HCO  or
revert to their last successful posts.

In a very small org the CO or ED is double-hatted as the Product Officer.

At this time it is FAR more important to cover HCO and make HCO do  all  its
functions in each HCO department.

The head of every division is a Product Officer for that division.

Such division heads can have an Org Officer who has essentially  the  duties
of an Esto as well as an Org Officer for that  division.  A  divisional  Org
Officer  also  has,  today,  recruiting  and  hatting  functions  for   that
division.

The Prod-Org system was very workable and attention must  be  directed  back
to it as it has tended to drop out.

The following materials and tapes give the data for the Prod-Org system:

FEBC Tape 2, 18 Jan 71. 710IC18SO Side 2

PR Becomes a Subject

FEBC Tape 3, 18 Jan 71, 710IC18SO Side I

The Org Off-Prod Off System, Part I

FEBC Tape 4, 18 Jan 71, 710IC18SO Side 2

The Org and Prod Off System, Part 2

FEBC Tape 5, 23 Jan 71, 7 10IC23SO Side I

How to Post an Org

FEBC Tape 6, 23 Jan 71, 7 10 1 C23SO Side 2

The Org Off and His Resources, Part I

FEBC Tape 7, 23 Jan 71, 710IC23SO Side I

The Org Off and His Resources, Part 2

FEBC Tape 8, 24 Jan 71, 7 10 1 C24SO Side 2

Viability and the Role of the HAS

253



FEBC Tape 9, 24 Jan 71, 7 10 1 C24SO Side I Prediction and the Resources of
the HAS

FEBC Tape 10, 24 Jan 71, 710IC24SO Side 2 The HAS and the Coins of the
Organization

These can be obtained from FLAG.

HCO

A VERY STRONG FUNCTIONING HCO IS VITAL TO BACK UP THE PRODORG SYSTEM.

When there is no HCO recruiting people  who  will  stay,  hatting  them  and
apprenticing them and keeping their ethics in, there is a lot  of  commotion
generated in an org as fast production requires not only an Org Officer  but
an HAS (and HCO Cope Officer) who put the org there rapidly and thoroughly.

Full use of the Prod-Org system, combined with a strong HCO  that  does  its
recruiting and hatting job brings about high stats.

L. RON HUBBARD

Founder

LRH:nt.gm Copyright 'a, 1974

254



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 7 DECEMBER 1974

Remimeo

HCO P/L 9 MAY 74 RE-ESTABLISHED

                      CANCELLATION OF HCO P/L 12 NOV 74

                            "PROD-ORG REINSTATED"

PROD-ORG, ESTO AND OTHER SYSTEMS

RECONCILED REINSTATED

HCO P/L of 12 Nov 74 suspended HCO P/L 9 May 74 which put an Executive
Council back into an org.

The suspension was temporary.

What happened was that, at least in some orgs, the Product Officer
immediately began to product officer GI only. Delivery stats crashed in
those orgs.

Obviously the OES is vital as a Product Officer of Divisions 3, 4, 5 and 6.

Thus any org that reverted to having only a Product and Org Officer and no
HES or OES must reinstate the HES and OES and, as available, their Org
Officers.

Delivery alone provides the exchange for GI and GI which is not at once
earned is a liability.

There obviously must be an OES to ensure volume and quality delivery and,
through Div 6, new people into the org.

Orgs must become exchange oriented.

L. RON HUBBARD

Founder

LRH:nt.gm

255



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 AUGUST 1976

Remimeo     Issue I

All Execs

All Purchasers

      Admin Know-How Series 33

      Esto Series 31

      PRODUCT/ORG OFFICER SYSTEM

      NAME YOUR PRODUCT

The Product/Org Officer system, covered fully  in  Flag  Executive  Briefing
Course tapes, contains the key phrase for any Product Officer. This is

NAME, WANT AND GET YOUR PRODUCT.

Breaking this down into its parts we find that the most  common  failure  of
any Product Officer or staff member or Purchaser lies  in  the  first  item,
NAME YOUR PRODUCT!

On org boards and even for sections, one has  products  listed.  Departments
have valuable final products. Every staff member has one or more products.

IF PRODUCTION IS NOT OCCURRING, THE ABILITY TO NAME THE PRODUCT IS  PROBABLY
MISSING.

Misunderstood post titles were collected once on a wide survey. Whenever  it
was found a staff member did not seem to be able  to  do  his  job,  it  was
checked whether he knew the definition of the  word-or  words-that  made  up
his post title. It was found, one for one, that he could not define it  even
though no unusual or  special  definition  was  being  requested.  In  other
words, the first thing about the post could not be defined-the  post  title.
This may seem incredible, but only until you yourself check it out on  staff
that habitually goof.

The ability to NAME the product required goes  further  than  a  mere,  glib
definition. Some engineers once drove a Purchaser halfway  up  the  wall  by
glibly requesting "one dozen bolts." The Purchaser kept  bringing  back  all
different thicknesses and lengths and types  of  bolts.  The  Purchaser  was
going daffy and so were the engineers. Until the engineers  were  forced  to
exactly name what  they  were  seeking  by  giving  it  ALL  its  name.  The
Purchaser trying to purchase could not possibly obtain his  product  without
being able to FULLY name it. Once this was done, nothing was easier.

A Product Officer can ask, beg, plead, yell for his product.  But  maybe  he
isn't naming it! Maybe he isn't naming it fully. And maybe even  he  doesn't
know the name of it. A Product Officer should spend some  time  exactly  and
accurately  naming  the  exact  product  he  wants  before  asking  for  it.
Otherwise he and his staff may be struggling around over many  misunderstood
words!

When you see a staff whirling around and dashing into walls and  each  other
and not producing a thing, calmly try to find out if any of  them  or  their
Product Off icer can NAME what products they are trying to produce.  Chances
are, few of them can and maybe the Product Officer as well.

Handle and it will all smooth out and products will occur.

L. RON HUBBARD

Founder

LRH:nt.gm

256



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 AUGUST 1976

Remimeo     Issue 11

All Execs

All Purchasers

      Admin Know-How Series 34

      Esto Series 32

                         PRODUCT/ORG OFFICER SYSTEM

                              WANT YOUR PRODUCT

A Product Officer has to name, WANT and get his product.

Where no real or valuable production  is  occurring,  one  has  to  ask  the
question, does the Product Officer really WANT the product he is  demanding?
And does the staff member or members he is dealing with WANT the product?

The reason that a psychotic or otherwise evilly  intentioned  person  cannot
achieve anything as a Product Officer or staff member is that  he  does  NOT
want  the  product  to  occur.  The  intentions  of  psychos  are  aimed  at
destruction and not at creation.

Such persons may SAY they want the product but  this  is  just  "PR"  and  a
cover for their real activities.

People who are PTS (potential trouble sources by reason of connections  with
people antagonistic to what they are doing in life) are all  too  likely  to
slide into the valence of the antagonistic person who definitely  would  NOT
want the product.

Thus, in an org run  by  or  overloaded  with  destructive  persons  or  PTS
persons, you see a very low level of production if you see any at  all.  And
the production is likely to be what is called "an overt product," meaning  a
bad one that will not be accepted or cannot be traded or exchanged  and  has
more waste and liability connected with it than it has value.

One has to actually WANT the product he  is  asking  for  or  is  trying  to
produce. There  may  be  many  reasons  he  does  not,  none  of  which  are
necessarily connected with being  psycho.  But  if  it  is  a  creative  and
valuable product and assists his and the survival of  others  and  he  still
does not want it, then one should look for PTSness or maybe even  a  bit  of
psychosis. And at the least, some withholds.

One does not have to be in  a  passionate  mystic  daze  about  wanting  the
product. But one shouldn't be moving mountains in the road of a  guy  trying
to carry some lumber to the house site either.

The question of WANT the product has to be included in  any  examination  of
reasons why a person or an org isn't producing.

L. RON HUBBARD

Founder

LRH:nt.gm

257



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 7 AUGUST 1976

Remimeo     Issue III

ALL EXECS

                          Admin Know-How Series 35

                               Esto Series 33

PRODUCT/ORG OFFICER SYSTEM

TO GET YOU HAVE TO KNOW HOW TO ORGANIZE

A Product Officer and ESPECIALLY an Org Officer has to know  how  to  GET  a
product.

All science and technology is built around this  single  point  in  the  key
phrase  "Name,  want  and  get  your  product."  Managers   and   scientists
specialize in the HOW TO GET part of it and very often neglect the rest.

There are many Product Officers who do NOT know  enough  about  organization
to organize things so they  actually  GET  their  product.  These,  all  too
often, cover up their ignorance on how to organize or their inability to  do
so by saying to one and all "Don't organize, just produce!"  When  you  hear
this you can suspect that the person saying it actually does  not  know  the
tech or know-how of organizing or how to put an  organization  together.  He
may not even know enough about organizing to shove aside other paper on  his
desk when he is trying to spread out and read  a  large  chart-yet  that  is
simple organization.

A bricklayer would look awfully silly trying to  lay  no-bricks.  He  hasn't
got any bricks. Yet there he is going through the motions of laying  bricks.
It takes a certain economic and purchasing and transport  tech  to  get  the
bricks delivered-only then can you lay bricks.

A manager looks pretty silly trying to order a  brick  wall  built  when  he
doesn't have any bricks or bricklayer  and  provides  no  means  at  all  of
obtaining either one.

A Product Officer may be great at single-handing  the  show.  How  come?  He
doesn't realize that building a show comes before  one  runs  it.  And  even
though economics demand at least a small show  before  one  builds  a  large
show, a very bad Product Officer who can't  really  organize  either,  will,
instead of making the small show bigger, make  the  small  show  smaller  by
trying to run a no-show.

There is a HOW of organization. It is covered pretty well in the Org  Series
and elsewhere. Like you can't put in comm lines unless you put in  terminals
for them to connect  with.  Like  you  can't  get  particles  flowing  in  a
profitable way unless they have something for them to run on. That's  simply
the way things go in the universe in which you are operating. Now of  course
you could build a new universe with different laws but  the  fact  is,  that
would require a knowledge of organization as well, wouldn't it?

The tech of how to produce something can be pretty vast.  One  doesn't  have
to be a total expert on it to be able to manage the  people  doing  it,  but
one has to have a pretty good idea of how it goes  and  how  enough  NOT  to
stop the guys who do know how to make bricks when one wants bricks.

If the product is to get somebody to come in to see you, then  you  have  to
have some means of communication and some tech of  persuasion  to  make  him
want to come in to see you. Brute  force  may  seem  okay  to  cops  but  in
organization it seldom works. There is more tech to it than that.

258



If a Product Officer does not know there is tech  involved  in  GETTING  the
product, then he will never make his staff study it or teach anybody  to  do
it. And he will wind up with no product. So beware the Product  Officer  who
won't give time off for hatting! He doesn't know one has to  know  the  tech
of getting his product. What do you think the OEC (Org Exec Course)  Volumes
and the technical bulletins are all about?

One  has  to  spend  some  time  organizing  in  many   different   ways-the
organization itself, the hatting, the technical skill  staff  members  would
have to have, to get anywhere in GETTING a product.

Sure, if you only organize  and  never  produce  you  never  get  a  product
either. But if you only produce and never  organize,  the  only  brick  wall
you'll ever see is the one you run into.

L. RON HUBBARD

Founder

LRH:nt.gal.gm , 1979

[Note: There is no Esto Series 34.]

259



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 26 MARCH 1979RB

Rernitneo   REVISED 2 SEPTEMBER 1979

                       (Also issued as an HCO Bulletin

                         of same date, same title.)

(Revisions in this type style)

Esto Series 35RB

Word Clearing Series 6ORB

Product Debug Series 7R

MISUNDERSTOOD WORDS AND CYCLES OF ACTION

MISUNDERSTOOD WORDS AND NO PRODUCT

A misunderstood word can prevent a person from understanding  the  remainder
of what is heard or written.

I have now discovered  that:  A  MISUNDERSTOOD  on  any  given  subject  CAN
PREVENT THE COMPLETION OF A CYCLE OF ACTION related to that subject.

Therefore those people who  don't  complete  cycles  of  action  on  certain
subjects have a misunderstood word on them.

This then results in no-product situations,

Therefore when you are getting no product, look for the  misunderstood  word
on the subject no matter how long and arduous it is. It's  there.  And  when
it's found the person can go on and complete a cycle of  action  and  get  a
product.

CA UTION.- Make sure the person actually does have an inability to  complete
a cycle of action before  you  get  into  handling  him.  You  don't  handle
somebody who is completing cycles of action that result in production.

MISUNDERSTOODS AND PERCEPTION

Misunderstoods can also act  as  perception  shut-offs.  They  can  actually
interrupt a person's perception.

It is quite astonishing that perceptions  such  as  sight,  sound  and  even
touch can be shut off by Mis-U words.

This opens the door to the fact that people apparently  do  not  see,  hear,
notice or handle outnesses when they have Mis-Us on them.

This also may open the door to people who have perceptic shut-offs, such  as
poor eyesight, deafness or other perception difficulties.

MISUNDERSTOODS AND COMPLEXITY

Misunderstoods lead to complexity. People who have Mis-Us  in  an  area  are
inclined to develop vast complexities.  They  can  generate  confusions  and
complexities beyond belief.

260



People do this because, having misunderstoods,  they  do  not  confront  and
duplicate in the area and so get into a lot of think-think  and  unnecessary
significance. Their ability to get things done in that area  dwindles  as  a
result. And at the bottom of all this is simply misunderstood words.

MISUNDERSTOODS AND TOTAL ORGANIZE

When you see an area that is organizing only, you know that area  is  loaded
with misunderstoods.

When people have incomplete cycles due to Mis-Us they get bogged  down  into
organization,

You can tell when people have Mis-Us-they are totally involved in  organize.
organize, organize. They don't know what they are doing.

There is a level below this-they have overts  and  withholds  which  prevent
even organizing.

Below that level people are PTS.

Lacking a sense of organization actually lies below this. It  is  below  the
level of Mis-Us, overts and withholds  and  PTSness-and  you'd  have  to  go
north through PTSness and overts and withholds to even get to the Mis-Us.

MISUNDERSTOODS AND NO ORGANIZE

There can also exist a condition where someone does not organize any  corner
of his area or work or organizations or  lines.  This  manifests  itself  by
irrational demands to only produce and to prevent any organization  so  that
production can occur. At the bottom of this you  are  very  likely  to  find
misunderstood words, particularly on the purpose of the  production  or  why
one is producing. It is in this sector that  you  get  overt  products  most
frequently.

HANDLING

The exact procedure for handling these Mis-Us is given in HCOB  17  June  79
CRASHING MIS-Us: THE  KEY  TO  COMPLETED  CYCLES  OF  ACTION  AND  PRODUCTS.
Crashing Mis-U finding is done as part of HCO PL 23 Aug  79  /  DEBUG  TECH.
Additional data on the location of Crashing Mis-Us is found in HCOB  14  Aug
79 CRASHING MIS-Us, BLOCKS TO FINDING THEM and HCOB 16 Jul 79 THE  "ELUSIVE"
MIS-U OR CRASHING MIS-U.

With this knowledge we can now handle  all  the  factors  that  prevent  the
completion of cycles of action and products.

L. RON HUBBARD

Founder

LRH:gal.dr.gm

261



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 7 AUGUST 1979

Remimeo

Sups  (Also issued as

Tech  HCOB 7 Aug 79

Qual

Execs FALSE DATA STRIPPING)

ALL STAFF

Product Debug Series 8

Esto Series 36

FALSE DATA STRIPPING

(Ref. The Study Tapes

      Dianetic Auditor's Bulletin Vol I Numbers 1-2

                 STANDARD PROCEDURE

                 Tech Vol 1, pgs. 15-20

      Dianetic Auditor's Bulletin Vol I Number 3

                 HOW TO RELEASE A CHRONIC

                 SOMATIC

                 Tech Vol 1, pgs. 24-26

      NOTES ON THE

            LECTURES   Pgs. 52-66,112-113)

When a person is not functioning well on his post, on his job  or  in  life,
at the bottom  of  his  difficulties  will  often  be  found  unknown  basic
definitions and  laws  orfalse  definitions,  false  data  and  false  laws,
resulting in an inability  to  think  with  the  words  and  rules  of  that
activity and an inability to perform the simplest  required  functions.  The
person will remain unfamiliar with the  fundamentals  of  his  activity,  at
times appearing idiotic, because of these not-defined  and  falsely  defined
words.

Verbal hatting is the main source  of  false  definitions  and  false  data.
Someone who "knows" tells someone else a definition or a datum.  The  person
now thinks he knows the definition (even though nothing in the  field  makes
any sense to  him).  The  word  may  not  even  read  on  the  meter  during
misunderstood checks because the person "thinks he knows."

A politician is told by an advisor, "It doesn't matter how  much  money  the
government spends. It is good for the society."  The  politician  uses  this
"rule" and, the next thing you  know,  inflation  is  driving  everybody  to
starvation and the government to bankruptcy. The politician, knowing he  was
told this on the very best authority, does not spot it as  false  data,  but
continues to use it right up to the point where the angry mobs stand him  up
in front of a firing squad and shoot him down. And the pity of  it  is  that
the politician never once suspected that there was anything false about  the
data, even though he couldn't work with it.

There is no field in all the  society  where  false  data  is  not  rampant.
"Experts," "advisors," "friends," "families," seldom  go  and  look  at  the
basic texts on subjects, even when these are known to exist, but indulge  in
all manner of interpretations  and  even  outright  lies  to  seem  wise  or
expert. The cost, in terms of  lost  production  and  damaged  equipment  is
enormous. You will see it in all sectors of  society.  People  cannot  think
with the fundamentals of their work. They goof. They ruin things. They  have
to redo what they have already done.

You'll find people whose estimate of the environment  is  totally  perverted
to the point they're walking around literally in a fog. The guy looks  at  a
tree and the reality of the tree is blurred by the "fact"  that  "trees  are
made by God" so he won't take care of the tree because he is convinced.

262



What we're trying to cure in people is the inability  to  think  with  data.
This was  traced  by  me  to  false  data  as  a  phenomenon  additional  to
misunderstood words, although the misunderstood word plays a role in it  and
will have to be allowed for.

When a person is having difficulty in an area or on a post,  when  he  can't
seem to apply what he has "learned" or what he is studying or when he  can't
get through a specific drill or exercise  in  his  training  materials,  you
will suspect he has false data in that area or on those materials. If he  is
to use it at  all  effectively  he  must  first  sort  out  the  true  facts
regarding it from the conflicting bits and pieces of information or  opinion
he has acquired. This eliminates the false data and lets  him  get  on  with
it.

INABILITY TO HAT

We are looking here at a brand new discovery I have made which  is  that  it
can be nearly impossible to hat anyone who is sitting on false data  on  the
subject you are trying to hat him on. This  is  the  primary  reason  people
cannot be hatted and False Data Stripping therefore enables a person  to  be
hatted even though other approaches have failed. This  is  a  very  valuable
discovery-it solves the problem of inability to hat or train.

SOURCES

False data on a subject can come from any number of sources. In the  process
of day-to-day living people encounter and often  accept  without  inspection
all sorts of ideas which may seem to  make  sense  but  don't.  Advertising,
newspapers, TV and other media are  packed  with  such  material.  The  most
profound false data can come out of texts such as  Stanislavsky  (a  Russian
actor and director); and even mothers have a hand in it, such  as  "children
should be seen and not heard."

Where  a  subject,  such  as  art,  contains  innumerable  authorities   and
voluminous opinions you may find that  any  and  all  textbooks  under  that
heading reek with false data. Those who have studied study tech will  recall
that the validity of texts is an important factor in study. Therefore it  is
important  that  any  supervisor  or  teacher  seeking  to  use  False  Data
Stripping must utilize basic workable texts. These are most often  found  to
have been written by the original discoverer of  the  subject  and  when  in
doubt avoid texts which are interpretations  of  somebody  else's  work.  In
short, choose only textual material which is closest to the basic  facts  of
the subject and avoid those which embroider upon them.

It can happen, if you do False Data  Stripping  well  and  expertly  without
enforcing your own data on the person, that he can  find  a  whole  textbook
false-much to his amazement. In such a case, locate a more fundamental  text
on the subject.  (Examples  of  false  texts:  Eastman  Kodak;  Lord  Keynes
treatises on economics; John Dewey's texts  on  education;  Sigmund  Freud's
texts on the mind; the texts derived from the "work" of Wundt (Leipzig 1879-
Father of Modern Psychology); and (joke) a textbook on "Proper  Conduct  for
Sheep" written by A. Wolf.)

USE OF FALSE DATA STRIPPING

False Data Stripping should be used extensively in all hatting and  training
activities. Current society is riddled with false data  and  these  must  be
cleared away so that we can hat and train people. Then they will be able  to
learn useful data which will enable them to understand  things  and  produce
valuable products in life.

False Data Stripping can be done on or off the meter. It can be done  by  an
auditor in session, by a Supervisor, Cramming Officer or Word Clearer or  by
an exec, Esto or any administrator. Students and staff can be trained to  do
it on each other.

Not a lot of training is required  to  deliver  this  procedure  but  anyone
administering it must have checked out on this HCOB/PL and have  demoed  and
drilled the procedure. If it is going to be done  on  the  meter  (which  is
preferable) the person doing it must have an OK to operate an E-Meter.

263



GRADIENTS

It will be found that false data actually comes off in gradients.

For example, a student handled initially  on  false  data  on  a  particular
drill will appear to be complete on it. He goes  on  with  his  studies  and
makes progress for a while and then sometimes he will hit a bog or  slow  in
his progress. This is usually an indication that more false  data  has  been
flushed up (restimulated  or  remembered  as  a  result  of  actually  doing
studies or drills). At that point more basic false data will come  off  when
asked for. The reason for this is: when you first give a student false  data
handling he doesn't know enough about the subject to know  false  data  from
the true. When he has learned a bit more about the subject he then  collides
with more false data hitherto buried. This can happen several times,  as  he
is getting more and more expert on the subject.

Thus the action of stripping off false data can and must be checked for  and
used in any training and hatting. The rundown has  to  be  given  again  and
again at later and later periods, as a student or staff member may  come  up
against additional faulty data that has been not-ised. It  can  be  repeated
as often as necessary in any specific area of training until the  person  is
finally duplicating and is able  to  use  the  correct  tech  and  only  the
correct tech exactly.

THEORY

There is a philosophic background as to why getting  off  false  data  on  a
subject works and why trying to teach a correct datum over a false datum  on
the subject does not work. It is based on  the  Socratic  thesis-antithesis-
synthesis philosophical equation.

Socrates: 470 B.C.-399 B.C. A great Greek philosopher.

A thesis is a statement or assertion.

Antithesis: opposing statement or assertion.

The Socratic equation is mainly used in debate  where  one  debater  asserts
one thing and the other debater asserts the opposite. It was the  contention
of Socrates and others that when two forces came into collision a  new  idea
was born. This was the use of the equation in  logic  and  debate.  However,
had they looked further  they  would  have  seen  that  other  effects  were
brought into play. It has very disasterous effects when it  appears  in  the
field of training.

Where the person has acquired a false thesis (or datum), the true datum  you
are trying to teach him becomes an antithesis. The true  datum  comes  smack
up against the false datum he is hanging on to, as it is counter to it.

In other words, these two things collide, and neither  one  will  then  make
sense to him. At this point he can try to make sense out  of  the  collision
and form what is called a synthesis, or  his  wits  simply  don't  function.
(Synthesis: a unified whole in which opposites, thesis and  antithesis,  are
reconciled.)

So you wind up with the person either

(a) attempting to use a false, unworkable synthesis he has formed, or

(b) his thinkingness locks up on the subject.

In either case you get an impossible-to-train, impossible-to-hat scene.

GLIBNESS

Probably we have here the basic  anatomy  of  the  "glib  student"  who  can
parrot off whole chapters on an examination paper and yet in  practice  uses
his tools as a door stop. This student has been a mystery to  the  world  of
education for eons. What he has probably done in order to get by, is set  up
a circuit which is purely memory.

264



The truth of it is his understanding  or  participation  is  barred  off  by
considerations such as "nothing works anyway  but  one  has  to  please  the
professor somehow."

The less a person can confront, the more false data he has  accumulated  and
will accumulate. These syntheses are simply additives and  complexities  and
make the person complicate the subject beyond belief  Or  the  collision  of
false data and true data, without the person knowing which is  which,  makes
him look like a meathead.

Therefore, in order to cure him of his additives, complexities,  apathy  and
apparent stupidity on a subject, in addition to  cleaning  up  misunderstood
words, it is necessary to strip the false data off the subject. Most of  the
time this is prior to the true data and so is  basic  on  the  chain.  Where
this is the case, when that basic false data is located  and  stripped,  the
whole subject clears up more easily.

FALSE DATA PRONE

Some people are prone to  accepting  false  data.  This  stems  from  overts
committed prior to the false data being accepted. The false data  then  acts
as a justifier for the overt.

An example of this would be a student studying past  Mis-Us  on  a  subject,
cheating in the exam and eventually  dropping  the  subject  entirely.  Then
someone  comes  along  and  tells  him  that  the  subject  is  useless  and
destructive. Well, he will immediately grab hold of this datum  and  believe
it as he needs something to justify his earlier overts.

This actually gets into service facsimiles as the person will use the  false
data to make the subject or other people wrong.

So if you see someone who is  very  prone  to  accepting  false  data  on  a
particular subject or in general, the answer is  to  get  the  prior  overts
pulled. Then the person will not need to justify  his  overts  by  accepting
any false data that comes his way.

PROCEDURE

You may not easily be able to  detect  a  false  datum  because  the  person
believes it to be true. When False Data Stripping is done  on  a  meter  the
false datum won't necessarily read for the same reason.

You therefore ask the person if there is anything he has run across  on  the
subject under discussion which he couldn't think with, which didn't seem  to
add up or seems to be in conflict with the material one is trying  to  teach
him.

The false datum buries itself and the procedure itself handles this
phenomenon.

When the false datum is located it is handled with elementary  recall  based
on 1950 Straightwire. Straight memory technique or Straightwire  (so  called
because one is stringing a line between present time and  some  incident  in
the past, and stringing that line directly  and  without  any  detours)  was
developed originally in 1950 as  a  lighter  process  than  engram  running.
Cleverly used, Straightwire removed locks  and  released  illnesses  without
the pc ever having run an engram.

Once one had determined whatever it was  that  was  going  to  be  run  with
Straightwire, one would have the pc recall where and when it  happened,  who
was involved, what were they doing, what was the pc doing, etc.,  until  the
lock blew or the illness keyed out.

Straightwire works at a lock level. When overdone it can key  in  underlying
engrams. When properly done it can be quite miraculous.

STEPS

A. Determine whether or not the person needs this procedure by checking  the
following:

265



1.    The person cannot be hatted on a subject.

2.    No Crashing Mis-Us can be found on a subject yet it is obvious they
exist.

3.    The person is not duplicating the material he has studied as he is
incorrectly applying it or only applying part of it, despite Word Clearing.

4.    He is rejecting the material he is reading or the definition of the
word he is clearing.

5.    You suspect or the person originates earlier data he has encountered
on the materials that could contain false data.

6.    The person talks about or quotes other sources or obviously incorrect
sources.

7.    He is glib.

8.    The person is backing off from actually applying the data he is
studying despite standard Word Clearing.

9.    He is bogged.

10.   He cannot think with the data and it does not seem to apply.

B.  Establish  the  difficulty  the  person  is  having-i.e.  what  are  the
materials he can't duplicate or apply? These materials must be to  hand  and
the person must be familiar with the basic true data on  the  subject  being
addressed.

C. If the action is being done metered, put the  person  on  the  meter  and
properly adjust the sensitivity with a proper can squeeze.

D. Thoroughly clear the concept of false data  with  the  person.  Have  him
give you examples to show he gets it. (This would be done if the person  was
receiving False Data Stripping for the first time.)

E. The following questions are used to detect and uncover  the  false  data.
These questions are cleared before they are  used  for  the  first  time  on
anyone. They do not have to read on a meter and may not do so as the  person
will not necessarily read on something that he believes to be true.

1.    "Is there anything you have run across in (subject under discussion)
which you couldn't think with?"

2.    "Is there anything you have encountered in (subject under discussion)
which didn't seem to add up?"

3.    "Is there something you have come across in (subject under
discussion) that seems to be in conflict with the material you are trying
to learn?"

4.    "Is there something in (subject under discussion) which never made
any sense to you?"

5.    "Did you come across any data in (subject under discussion) that you
had no use for?"

6.    "Was there any data you came across in (subject under discussion)
that never seemed to fit in?"

7.    "Do you know of any datum that makes it unnecessary for you to do a
good job on this subjectT'

8.    "Do you know of any reason why an overt product is all right?"

266



9.    "Would you be made wrong if you really learned this subject?"

10.   "Did anyone ever explain this subject to you verbally?"

11.   "Do you know of any datum that conflicts with standard texts on this
subject?"

12.   "Do you consider you really know best about this subject?"

13.   "Would it make somebody else wrong not to learn this subject?"

14.   "Is this subject not worth learningT'

The questions are asked in the above sequence. When an area  of  false  data
is uncovered by one of these questions one  goes  straight  on  to  Step  F-
handling.

E When the person comes up with an answer to  one  of  the  above  questions
locate the false datum as follows:

1.    Ask "Have you been given any false data regarding this?" and help  him
locate the false datum. If this is being done on the meter, one can use  any
meter reads one does get to steer the person. This  may  require  a  bit  of
work as the person may believe the false data he has to be true. Keep at  it
until you get the false datum.

If the person has given you the false datum in Step E then  this  step  will
not be needed: just go straight on to Step G.

G. When the false datum has been located, handle as follows:

1.    Ask "Where did this datum come from?" (This could be a person, a
book, TV, etc.)

2.    "When was this?"

3.    "Where exactly were you at the time?"

4.    "Where was (the person, book, etc.) at the time?"

5.    "What were you doing at the time?"

6.    If the false datum came from a person ask: "What was (the person)
doing at the time?"

7.    "How did (the person, book, etc.) look at the time?"

8.    If the datum has not blown with the above questions ask: "Is there  an
earlier similar false datum or incident on (the subject under  discussion)?"
and handle per Steps 1-7.

Continue as above until the false datum has blown. On  the  meter  you  will
have a floating needle and very good indicators.

DO NOT CONTINUE PAST A POINT WHERE THE FALSE DATUM HAS

BLOWN.

If you suspect the datum may have blown but the person  has  not  originated
then ask: "How does that datum seem to you now?" and either continue  if  it
hasn't blown or end off on that datum if it has blown.

H. When you have handled a particular false datum to a blow,  going  earlier
similar as necessary, you would then go back and repeat the question from  E
(the detection

267



step) that uncovered the false datum. If there are any more answers  to  the
question, they are handled exactly as  in  Step  F  (location)  and  Step  G
(handling).

That particular question is left when the person has no more answers.  Then,
if the person is not totally handled on the subject  under  discussion,  one
would use the other questions from Step E and handle them in the  same  way.
All the questions can be asked and  handled  as  above  but  one  would  not
continue past a point where the whole subject has been cleared  up  and  the
person can now duplicate and apply the  data  he  has  been  having  trouble
with.

1.    CONDITIONAL: If False Data Stripping is being done in conjunction
with

Crashing Mis-U Finding one would now proceed with the Crashing Mis-U
Finding.

J.    Send the person to the Examiner.

K. Have the person study or restudy the true data on the  subject  you  have
been handling.

END PHENOMENA

When the above procedure is done correctly and fully on an area  the  person
is actually having difficulty with,  he  will  end  up  able  to  duplicate,
understand and apply and think with the data that he  could  not  previously
grasp. The false data that was standing in  the  road  of  duplication  will
have been cleared away and the person's thinking will have  been  freed  up.
When this occurs, no matter where in the procedure, one ends off  the  False
Data Stripping on that subject and sends the  person  to  the  Examiner.  He
will have cognitions and VGIs and on the meter you will have  an  F/N.  This
is not the end of all False Data Stripping for that person. It  is  the  end
of that False Data Stripping on the person at that particular time.  As  the
person continues to work with and study the subject  in  question,  he  will
learn more about it and may again collide with false data at which time  one
repeats the above process.

NOTE

False data buries itself as the person may firmly believe that it  is  true.
Sometimes the person will have such faith  in  a  particular  person,  book,
etc., that he cannot conceive that any  data  from  that  particular  source
might be false. One artist being  false  data  stripped  had  received  some
false data from a very famous painter. Even though the  data  didn't  really
add up and actually caused the artist  tremendous  problems,  he  tended  to
believe it because of where it came from. It took persistence  on  the  part
of the person administering the False  Data  Stripping  to  eventually  blow
this false datum with a resulting freeing up  of  the  artist's  ability  to
think and produce in the area.

MISUNDERSTOODS

Misunderstoods often come up during  False  Data  Stripping  and  should  be
cleared  when  they  do.  One  would  then  continue  with  the  False  Data
Stripping. One person being false data stripped knew he had some false  data
from a particular  source  but  the  false  data  was  a  complete  blank-he
couldn't remember it at all. It was discovered that  he  had  a  Mis-U  just
before he received the false data and as soon as  this  was  cleared  up  he
recalled the false data and it blew. This is just one example  of  how  Word
Clearing can tie in with False Data Stripping.

REPEATED USE

False Data Stripping can be done over and  over  as  it  will  come  off  in
layers as mentioned before. If False Data  Stripping  has  been  done  on  a
specific thing and at some later point the person is having difficulty  with
a drill or the materials, the stripping of false data should be done on  him
again. In such a case  it  will  be  seen  that  the  person  recognizes  or
remembers more false or contrary data he  has  accumulated  on  the  subject
that was not in view earlier. As he duplicates  a  drill  or  his  materials
more and more exactly, former "interpretations" he had  not-ised,  incorrect
past flunks that acted as invalidation or evaluation, etc., may crop  up  to
be stripped off.

268



CAUTIONS

CODE. False Data Stripping is done under the  discipline  of  the  Auditor's
Code. Evaluation and invalidation can be particularly harmful  and  must  be
avoided. All points of the code apply.

RUDIMENTS. One would not begin False Data Stripping on someone  who  already
has out-ruds. If the person is  upset  or  worried  about  something  or  is
critical or nattery, then you should fly his ruds or get them  flown  before
you start False Data Stripping.

OVERRUN. One must be particularly careful not to overrun the person  past  a
blow of the false datum. The stress in recall is that it is a  light  action
which does not get the person into engrams or heavy charge. Keep  it  light.
If you overrun someone past the point of a blow, he may  drop  into  engrams
or heavy charge. Just take the recall step to a  blow  and  don't  push  him
beyond it.

DATEILOCATE. Date/Locate is another way of getting something to blow.  If  a
false datum does  not  blow  on  the  recall  steps  despite  going  earlier
similar, then it could be handled with Date/Locate in session as ordered  by
the C/S. This would normally be done as  part  of  a  False  Data  Stripping
Repair List. Date/Locating false data would never be done except in  session
as ordered by the C/S or as directed by  the  False  Data  Stripping  Repair
List. The auditor must  be  totally  starrated  on  Date  and  Locating  and
practised in it before he attempts it.

FALSE DATA STRIPPING REPAIR LIST. The False Data Stripping  Repair  List  is
used in session by an auditor when False Data  Stripping  bogs  inextricably
or the person is not F/N GIs at Exams or gets in trouble  after  False  Data
Stripping has been done. A bogged  False  Data  Stripping  session  must  be
handled within 24 hours.

NEW STUDENTS. Students who are  new  to  Scientology  should  not  use  this
procedure on each  other  as  they  may  be  insufficiently  experienced  to
deliver it competently. In this case the  Supervisor  or  someone  qualified
would administer False Data Stripping to those students who need it.

SUMMARY

The problem of the person who is unable to learn or who is unable  to  apply
what he learns has never been fully  resolved  before.  Misunderstoods  were
and are a major factor and  Word  Clearing  must  be  used  liberally.  Now,
however, I have  made  a  major  breakthrough  which  finally  explains  and
handles the problem of inability to learn and apply.

Man's texts and education systems are strewn with false  data.  These  false
data effectively  block  someone's  understanding  of  the  true  data.  The
handling given in this HCOB/PL makes it possible to remove  that  block  and
enable people to learn data so they can apply it.

With the ability to learn comes stability and  the  production  of  valuable
products. With stability and the production of valuable products  comes  the
achievement of one's purposes and goals, high morale and happiness.

So let's get to work on stripping away the false  data  which  plagues  Man,
clogs up his ability to think and  learn  and  reduces  his  competence  and
effectiveness. Let's increase the  ability  of  individuals  and  the  human
race.

L. RON HUBBARD

Founder

LRH:gal.gm

269



      HUBBARD COMMUNICATION

      Saint Hill Manor, East Grinstead

      HCO POLICY LETTER OF 23 AU

      Issue I

Remimeo

Product Officers

Org Officers

Execs

All Staff

Programs Chiefs

Project Operators

Mission Operators

Missionaires

Assistant Guardians    Product Debug Series I

Flag Representatives

LRH Communicators      Esto Series 37

Cramming Officers

Review

      DEBUG TECH

Ref.  LRH ED 302 INT   DEBUG TECH BREAKTHROUGH

      HCO PL 23 Aug 79 11   DEBUG TECH CHECKLIST

      HCOB  23 Aug 79 11    PRODUCT DEBUG REPAIR LIST

      HCOB  17 Jun 79  URGENT, IMPORTANT-CRASHING

                 MIS-Us: THE KEY TO COMPLETED

                 CYCLES OF ACTION AND PRODUCTS

      HCOB  7 Aug 79   FALSE DATA STRIPPING

HCO PL 26 Mar 79RA     MISUNDERSTOOD WORDS AND

      CYCLES OF ACTION-MU

      WORDS AND NO PRODUCTS

HCOB 23 Aug 79 1 CRASHING MUs, BLOCKS TO

      FINDING THEM

When I wrote LRH ED 302 DEBUG TECH BREAKTHROUGH in February of this  year  I
promised that there would be a policy letter issued covering the  tech  more
fully. Well, there have been further breakthroughs in the area of  debugging
production. The tech given in that LRH ED has been acclaimed by hundreds  to
be miraculous. This policy reissues that tech and brings it up-to-date  with
the new discoveries.

HISTORY

Recently I noticed quite a few programs  were  not  progressing  rapidly.  I
found many targets bugged. Project operators did not seem to  know  what  to
do and were getting losses  and  becoming  frustrated.  Their  targets  were
"bugged."

"Bugged" is slang for snarled up or halted.

"Debug" means to get the snarls or stops out of something.

I had always been given to believe somebody had  developed  and  written  up
debug tech. People would often tell me they had debugged this  or  that,  so
of course I assumed that the tech existed and that  issues  and  checksheets
existed and were in  use.  Yet  here  were  people  operating  projects  who
couldn't get the targets done by themselves or others.

I didn't recall ever having written any policy letter  containing  the  tech
of debugging programs or targets.

So I called for the various "debug checksheets" and "debug issues" they
were

270



using and found something very astonishing. None had any real tech  on  them
to debug something. They just had various quotes that  did  not  necessarily
apply.

I did a study of the subject based on what people trying to debug should  be
doing and what they were not doing and developed a fast,  relatively  simple
system. Some project operators were located in very bugged areas  which  had
brought them to apathy and even tears of frustration.  The  new  debug  tech
was put into their hands and they came streaming back  in  wild  excitement.
It worked! Their areas were rolling!

I am releasing this tech to you as it is vital  that  programs  are  quickly
executed and that production occurs.

This debug tech is tested, fully valid and for immediate use.

Debug tech is a vital executive tool. Anyone who is responsible for  getting
targets and programs executed, getting production  out,  turning  insolvency
into solvency and  generally  making  a  better  world  frankly  can't  live
without it.

Debug tech is used to debug program targets, programs, a lack of  completion
of the cycles of action which lead to  production  and  in  short,  whenever
there is any insufficiency of viable products coming from an  area,  org  or
individual.

THE TECH

1.    INSPECTION

The first action in debugging an area is an inspection to see what is  going
on in terms of production. In inspecting the area you do the following:

1.    You look for what products have been gotten out in the past.

2.    You look for products that are there completed.

3.    You look for what products can be attained in the immediate future.

4.    You look for the value of the products produced as compared to the
overall

cost  of the production organization.

5.    You look for overt products or cycles where products continuously
have to

be redone, resulting in no or few products.

The full volume of data on how to  do  an  investigation  is  given  in  the
Investigations Checksheet on page 175 of The Volunteer Minister's Handbook.

When you first inspect an area for  products  you  just  look.  Policies  on
"Look Don't Listen" apply (HCO PL 16 Mar  72,  Esto  Series  8,  LOOK  DON'T
LISTEN). Don't listen to how they are going to get 150 products,  just  look
and walk around with a clipboard.

If you don't see 150 products waiting to  be  shipped  or  invoices  showing
they have been, they don't exist. If you don't see receipts for 150  shipped
products, they don't exist and never have. The product is  either  there  or
there is ample shipping or departure or  finance  evidence  that  they  have
just left or been shipped. Products that are only in  people's  heads  don't
exist.

Dreams are nice-in fact they are essential in  life  but  they  have  to  be
materialized into the physical universe before they exist as products.

The most wide trap the debugger can fall into is, "But next week   since

      experience will tell you that next week's production may never
arrive. The definition of

      product is something that can be exchanged for a valuable product or
currency. They

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have subproducts. These are necessary. A subproduct can  also  be  an  overt
product and block final products.

When you have ~done your product inspection, you then look over  the  period
of time from a  viewpoint  of  time  and  motion.  This  is  to  answer  the
question, "Are things arranged so that there is no time  wasted  in  useless
motions which are unnecessary?" This includes poor placement of materiel  on
a flow line or tool sheds five miles from the site of work so that  one  has
to go there every time one wants a hammer, out-ofsequence flows or waits.

One  counts  up  the  amount  of  wasted  time   simply   because   of   the
disorganization of a place. It isn't enough to say a place is  disorganized.
How  is  this  disorganization  consuming  time  and  motion  which  is  not
resulting in a higher quantity of production? Examples  of  this  are  quite
gross.

When you have done this study, during which of course you have  made  notes,
you will have the raw materials necessary  to  make  an  estimation  of  the
area.

If there is not an adequate and even spectacular record of products  getting
out and if products have to be redone or if no products are coming out,  you
proceed as follows:

11.   PERSONAL HANDLING

Find a product that can be gotten out, any product, and insist that  it  and
products like it or similar cycles be gotten out flat out  by  the  existing
personnel.

Do not let this debug act as an excuse for them not to  produce.  The  first
step of this handling is to demand production.

When you have gotten them on that, you enter  in  upon  a  second  stage  of
debug. This consists essentially of finding if the  place  is  knowledgeable
enough and able enough to produce what is  actually  required  and  what  is
actually valuable or being needed from it.

This is accomplished as follows:

(Note: You should not attempt to find Crashing MUs, etc.,  until  the  above
inspection and the Steps A to H below have been done.)

A. Where are the orders relating to this target (or  project  or  production
area)?  (Can  include  policies,  directives,  orders,  bulletins,   issues,
despatches, tapes, valid texts and previous debugs and any and all files.)

Handling: Collect up all of the orders relating to this target  (or  project
or production area). This includes the orders and  policies  the  person  is
operating off of as well as all those he should  be  operating  off  of.  At
this  point  you  may  need  to  employ  the  "How  to  Defeat  Verbal  Tech
Checklist":

1 . If it isn't written it isn't true.

2.    If it's written, read it.

3.    Did the person who wrote it have the authority or know-how to order
it?

4.    If you can't understand it, clarify it.

5.    If you can't clarify it, clear the MUs.

6.    If the MUs won't clear, query it.

7.    Has it been altered from the original?

272



8.    Get it validated as a correct, on-channel, on-policy, in-tech order.

9.    Only if it holds up this far, force others to read it and follow it.

IF IT CAN'T BE RUN THROUGH AS ABOVE IT'S FALSE! CANCEL IT! And  use  HCOB  7
Aug 79 FALSE DATA STRIPPING as needed.

B.    Have you read the orders?

Handling: If he has not read  them  then  have  him  read,  word  clear  and
starrate them.

Ca.   Do you have MUs on these orders?

Handling:  Get  the  orders  word  cleared  using  M4,   M9   or   M2   Word
Clearingwhatever Word Clearing is needed to fully clear any MUs he has.

Cb.   Do you have false data on these orders?

Handling: Strip off  the  false  data  per  HCOB/PL  7  Aug  79  FALSE  DATA
STRIPPING,

Handle this step (Ca and Cb) until the person has duplicated the orders  and
issues relating to this production area.

D.    Are there financial or logistics problems on them?

Handling: Debug using HCO PL 14 Mar 72, Issue  II,  Esto  Series  7,  FOLLOW
POLICY AND LINES and Flag  Divisional  Directive  of  25  Aug  76  FINANCIAL
PLANNING MEMBER HAT CHECKSHEET.  Debugging  this  may  require  getting  the
whole FP Committee through the FP pack.

E.    Are there personnel problems?

Handling: Debug this using HCO PL  16  Mar  71,  Org  Series  25,  Personnel
Series 19, LINES AND  HATS  and  the  Personnel  Series,  as  given  in  The
Management Series.

It may be necessary to do this debug on the HAS or  any  person  responsible
for getting the products of staff members who produce.

F.    Are there hatting problems?

Handling: Handle this using full Word Clearing and False Data Stripping  and
get the scene debugged using HCO PL 29 Jul  71,  Personnel  Series  21,  Org
Series 28, WHY HATTING? and HCO PL  22  Sep  70,  Personnel  Series  9,  Org
Series 4, HATS and HCO PL 27 Dec  70,  Personnel  Series  16,  HATS  PROGRAM
PITFALLS.

Hatting problems may include the total and utter lack of  a  hatting  course
for the staff or a hatting course where WHAT IS A COURSE? PL  is  flagrantly
not in and if you find this you have gotten to  the  root  of  why  you  are
working hard debugging all over the place  and  it  had  better  be  handled
quick.

It may also be that the area senior doesn't make  sure  his  staff  puts  in
study time off production hours and in this you may find  the  senior  is  a
failed student himself and this you would also have to handle.

Note: A person who cannot be hatted at all  has  false  data.  The  handling
would be to strip off the false data.

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G. Is there exterior influence  stopping  the  production  which  cannot  be
handled in the production area?

Handling: Handle using HCO PL 31 Jan 72, Data Series 22, THE WHY IS GOD  and
HCO PL 25 May 73, Data Series 27, SUPPLEMENTARY EVALUATIONS and  HCO  PL  30
Dec 70, Org Series 20, ENVIRONMENTAL CONTROL.

When  told  that  these  exterior  influences  exist   the   wise   debugger
immediately verifies. The simplest way to verify is to ask  the  person  who
is supposed to be putting stops on the line if he has  issued  such  orders.
You commonly find out he hasn't. But if he has, then  you  have  started  to
locate your area to handle.

You commonly run into verbal tech at  which  moment  you  use  the  "How  to
Defeat Verbal Tech Checklist."

H.    What other excuses exist?

Handling: As per HCO PL THE WHY IS GOD, HCO PL 19 May  70,  Data  Series  8,
SANITY, HCO PL 30 Sep 73, Data Series 30, SITUATION  HANDLING  and  HCOB  19
Aug 67, THE SUPREME TEST.

And once any obvious ones in the above have  been  handled,  and  production
still isn't rolling, you have

1.    Routine finding of MUs per Word Clearing Series.

J. Crashing MU tech  per  HCOB  17  Jun  79  CRASHING  MIS-Us:  THE  KEY  TO
COMPLETED CYCLES OF  ACTION  AND  PRODUCTS.  Crashing  MU  Finding  is  done
exactly per this HCOB. Crashing MUs can be buried or suppressed  as  covered
in HCOB 23 Aug 79, CRASHING MUs, BLOCKS TO  FINDING  THEM.  The  factors  as
listed in that HCOB which can cause a  Crashing  MU  to  remain  hidden  and
unknown may have to be handled before the Crashing MU appears.

K. Do they have any idea  at  all  that  they  should  be  getting  out  any
products? Or do they pretend to but don't?

Handling: Simply two-way comm of why the guy was there. It might come  as  a
startling realization that he is supposed to get out products. This  can  be
backed up with Exchange by Dynamics, HCO  PL  4  Apr  72,  Esto  Series  14,
ETHICS and Short Form Product Clearing, HCO PL 13 Mar  72,  Esto  Series  5,
PRODUCTION AND ESTABLISH MENT-ORDERS AND PRODUCTS or HCO PL 23 Mar 72,  Esto
Series 11, FULL PRODUCT CLEARING LONG FORM.

There is also such a thing as a person who will  not  complete  a  cycle  of
action. This is normally true of what we  call  a  "suppressive  person"  or
even an insane person.

Handling: Get the person's case looked into by a competent C/S and  also  by
the Ethics Officer for background.

But as PTS people are in suppressive persons' valences he may only be PTS.

Handling: See Section P below for de-PTSing.

L. Wrong stat. The person has been given a stat that has nothing to do  with
what he is supposed to produce.

Handling: Get the right stat figured out so that it agrees with what  he  is
supposed to produce and actually measures his actual production.

M.    Wrong VFP or wrong product? Do they have the idea of VFP right? (or
does

274



the org think it's the award rather than the product, i.e.  GI  rather  than
an audited paying pc or a trained paying student?).

It of course can occur, amazingly, that the person or department,  etc.,  is
trying to turn out a product that has no  exchange  value.  This  can  occur
because what they do produce  is  so  flubby  as  to  be  called  "an  overt
product" which nobody can use further on up the line or even at the  end  of
the line. You handle this by coming  down  on  their  sense  of  fitness  of
things. Overt products waste  resources  and  time  and  personnel  and  are
actually more destructive than on first glance.  They  cannot  be  exchanged
but they also waste resources as well as lose any expected return.  You  can
remedy this sort of thing by improving  their  tech  so  they  do  turn  out
something decent and useful.

They can also be turning out a type of product  nobody  wants-such  as  1819
buggy whips in a Space Age. They may be great buggy  whips  but  they  won't
exchange because nobody wants them.

They may also be getting out products of excellent quality  but  never  telf
anybody they have or do them. This can apply as narrowly as one  worker  who
doesn't tell anybody he is having or doing  them  or  a  whole  organization
which, with complete asininity, never markets or advertises their products.

It is also possible that a combination of all three things above may be
found.

It also may be they have all sorts of products they could get out  but  they
never dreamed of getting them out yet their life blood may depend upon it.

Handling: HCO PL 24 Jul 78,  SUBPRODUCTS,  which  tells  how  to  compile  a
subproducts list and attain VFPs. Exchange by Dynamics per HCO PL 4 Apr  72,
Esto Series 14, ETHICS and Full Product Clearing Long Form  on  the  correct
and actual VFP (as well as any other products the person or area may  have),
as well as marketing and PR tech.

N.    Never figured out what they would have to do to get a product?

Handling: Handle this using HCO PL 7 Aug 76, Issue  1,  11  and  111,  Admin
Know-How Series 33, NAME YOUR PRODUCT, Admin Know-How Series 34,  WANT  YOUR
PRODUCT, Admin Know-How Series 35, TO GET YOU HAVE TO KNOW HOW TO  ORGANIZE,
HCO PL 24 Jul 78, SUBPRODUCTS and HCO PL 14 Jan 69, OT ORGS.

0.    Out-ethics?

Handling: Determine the situation and handle with O/W write-ups or  auditing
and ethics conditions or  correction  of  past  conditions  and  the  ethics
policies that apply.

P.    Is the area or individual creating problems and demanding solutions
to

them?

Handling: Give the person PTS handling as per ethics policies. If  and  when
available, get the personnel de-PTSed using  Clay  Table  De-PTSing  as  per
HCOB CLAY TABLE DE-PTSing-THEORY AND ADMINISTRATION. (Note: Clay  Table  De-
PTSing can only be done on  someone  by  a  person  who  has  had  the  step
himself.)

Q.    Total organize? (Is the area organizing only?)

Handling:  This  is  an  indicator  of  many  misunderstoods  in  the  area,
especially on the part of its senior. The senior and the  personnel  in  the
area need full Word Clearing on the materials  to  do  with  the  production
area, including Crashing MU Finding as  in  J  (ref.  HCO  PL  26  Mar  79RA
MISUNDERSTOOD WORDS AND

275



CYCLES OF  ACTION-MU  WORDS  AND  NO  PRODUCTS)  off  production  hours  and
meanwhile make them produce what they can.

R. Organization adequate to get the product?

Inadequate organization:

Handling: Debug the organization per HCO PL 13 Sep 70, Org Series  1,  BASIC
ORGANIZATION, HCO PL 14 Sep 70, Org Series 2, COPE AND ORGANIZE, HCO  PL  14
Sep 70, Org Series 3, HOW TO ORGANIZE AN ORG, HCO PL 8 Oct  70,  Org  Series
8, ORGANIZING AND PRODUCT, HCO PL 29 Oct 70, Org Series 10, THE ANALYSIS  OF
ORGANIZATION BY PRODUCT.

No organization:

Handling: This is the situation where someone does not organize  any  corner
of his area or work or organizations or  lines.  This  manifests  itself  by
irrational demands to only produce and to prevent any organization  so  that
production  can  occur.  The  handling  is  to  clear   the   misunderstoods
(including Crashing MUs) in the area, particularly on  the  purpose  of  the
production and why one is producing.

Lacking a sense of organization?

Handling: Lack of a sense of organization  lies  below  the  level  of  MUs,
overts and withholds and PTSness-and you have to go  north  through  PTSness
and overts and withholds to even get to the MUs.

The handling would be de-PTSing as in Step P. Then  handle  any  overts  and
withholds and then clear the M Us in the  area  being  addressed  (including
Crashing MUS).

Debug tech is laid out as a checklist in HCO PL 23 Aug 79, Issue  11,  DEBUG
TECH CHECKLIST. It is a very useful checklist as the points of debug can  be
assessed on a meter by an auditor (or any person trained to use an  E-Meter)
or be administratively used by anyone wishing to debug an area.

HCOB 23 Aug 79, Issue II, PRODUCT  DEBUG  REPAIR  LIST  is  for  use  by  an
auditor to repair someone who has been  messed  up  by  somebody  trying  to
debug his area. As faulty debugging can mess a person up, this  repair  list
has been written to remedy that, should it occur.

Normally, in an area that is  very  bogged  and  not  producing,  the  first
question or two will deliver the reasons right into  your  hands.  They  are
trying to produce blue ruddy rods but the order they finally dig up after  a
fifteen minute search says specifically and directly that green  fingleburns
are what are wanted here and that blue  ruddy  rods  are  forbidden.  It  is
usually outrageous and large. As you go down the  list  you  will  find  out
that you are running into things which open the door  to  justification.  So
you take very good care to notice the justifications which are  being  used.
The handling of justifications is indicated in HCOB  23  Aug  79,  Issue  1,
CRASHING MUs, BLOCKS TO FINDING THEM and the HCOB of JUSTIFICATIONS, 21  Jan
AD10.

WHAT TO HANDLE

Handling of course is indicated by what you find and the  above  references.
But handling must always be in the direction of  at  least  50%  production.
Even while debugging do not go for an all-organize handling. Also do not  go
for an all-production handling.

A person, once trained on the data as contained  in  this  PL,  Crashing  MU
tech, False Data Stripping and Product Clearing, will be able to get  almost
any area

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debugged and producing. It is important to remember that debug tech  applies
from the very small expected action to the huge expected project.

THE EP OF DEBUG

The above debug actions are never  carried  on  past  the  point  where  the
target or area or individual or org has been debugged.

Once production has been debugged  and  desirable  products  are  now  being
gotten for real in adequate quantity, the debug has been accomplished.

This could occur at any one of the above steps. And when  it  does  you  let
the area get on with producing the products they are now able to produce.

EVALUATION AND PROGRAMMING

There is a whole different technology called evaluation. The  full  tech  on
how to execute and program is contained in the  Data  Series  and  the  Data
Series Evaluator's Course and BPL 4 Jul  78  ELEMENTARY  EVALUATOR'S  COURSE
and the Target Series HCO PLs: 14 Jan 69 OT ORGS, 16 Jan 69  TARGETS,  TYPES
OF, 18 Jan 69, Issue 11, PLANNING AND TARGETS, 24 Jan 69, TARGET  TYPES,  24
Jan 69, Issue 11, PURPOSE AND TARGETS and HCO PL 4 Dec 73, Data  Series  32,
TARGET TROUBLES. One is expected to know how to  evaluate.  But  even  after
you have evaluated, evaluations contain targets. And targets get bugged.  So
you will need debug tech even when you are an accomplished evaluator.

With the debug tech and the added steps of Crashing MU Finding,  overts  and
withholds, False Data Stripping, Product Clearing, etc., you  will  be  able
to crack the back of the most resistive  nonproducing  areas  and  get  them
into roaring, high-morale production.

Between February 79 and  23  August  79,  1  have  spent  a  great  deal  of
development time on  the  technology  needed  to  completely  debug  people,
projects,  targets  and  production.  A  very  large  number  of   missions,
researches and pilots were undertaken to discover and polish up  this  tech.
It can now be considered a completed development cycle.

The above IS the tech.

USE IT!

L. RON HUBBARD

Founder

LRH:kjm.gm

277



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 23 AUGUST 1979

      Issue II

Remimeo

Tech

Qual

All Execs

All Staff

Programs Chiefs

Project Operators

Mission Operators

Missionaires

AGs

LRH Comms   Esto Series 38

FRs

Product Debug Series 2

DEBUG TECH CHECKLIST

Ref:  HCO PL 23 Aug 79 DEBUG TECH

      Issue I

      HCOB 23 Aug 79   PRODUCT DEBUG REPAIR LIST

      Issue 11

The Product Debug Series

This checklist is clarified by HCO PL 23 August 79, Issue 1, DEBUG TECH,
and is used in conjunction with that PL.)

Production is the basis of morale. People who don't get products have low
morale.

Executives and responsible people have the task  of  getting  out  products.
When they don't get them out, the unit or organization fails.

It is extremely upsetting and puzzling to a staff member and to his  seniors
when he can't get  out  the  products  expected  of  him.  I  have  seen  an
executive going around in circles for weeks trying to  guess  why  such  and
such a staff member couldn't get out the products of his post area.  I  have
seen staff members actually in tears because they  were  unable  to  achieve
the products of their post. I have also seen people  busy,  busy,  busy  and
totally unaware of the fact that they were producing absolutely nothing.

LRH ED 302 was a breakthrough. It has now been written into HCO  PL  23  Aug
79, DEBUG TECH and contains a considerably expanded tech  on  how  to  debug
products. People have had very great success in applying it.

To give them even greater successes, I have  rewritten  LRH  ED  302-1  into
this PL. The whole object of this checklist is to debug a lack  of  products
and accomplishments of an org or post.

This Debug Checklist is used in conjunction  with  HCO  PL  DEBUG  TECH.  It
gives the person doing the debug a list of things that could be standing  in
the way of production. The sequence of handling is as laid out in the  Debug
Tech PL. The first action is an  inspection  of  the  area.  Then  come  the
personal handling steps.

This sequence must be followed in any debug action.  For  instance,  if  you
haven't done the inspection then how would you  know  what  it  is  you  are
trying to debug?

This checklist can be assessed on a meter or be administratively  used  (off
the meter) by  mission  operators,  program  operators,  project  operators,
evaluators, executives and anyone else needing to debug a  cycle  of  action
or lack of products, including any staff member or student himself.

278



When assessed on a meter, each reading line would be taken to F/N  by  doing
the handling given for that line.

When doing  this  checklist  the  individual  should  have  the  issues  and
references he may need to carry out the handlings along with him.

THE EP OF DEBUG

Debug actions are never carried on past the point where the target  or  area
or individual or org has been debugged.

Once production has been debugged  and  desirable  products  are  now  being
gotten for real in adequate quantity, the debug has been accomplished.

This could occur at any one of the steps. And when it does you let the  area
get on with producing the products they are now able to produce.

PRODUCT DEBUG REPAIR LIST

In case of a bog or trouble on the following checklist use HCOB 23  Aug  79,
Issue 11, Product Debug Series 10, PRODUCT DEBUG REPAIR LIST to  repair  the
person so he can continue with the debug actions.

INSPECTION

00.   The first action in debugging an area is an inspection to see what is
going on in terms of production. In inspecting the area you do the
following:

1.    You look for what products have been gotten out in the past.

2.    You look for products that are there completed.

3.    You look for what products can be attained in the immediate future.

4.    You look for the value of the products produced as compared to the
overall cost of the production organization.

5.    You look for overt products or cycles where products continuously
have to be redone, resulting in no or few products.

Full data on how to do this inspection is given in HCO PL 23 Aug  79,  Issue
1, DEBUG TECH.

0.    Find a product that can be gotten out, any product, and insist that
it and products like it or similar cycles be gotten out flat out by the
existing personnel.

THE CHECKLIST

Section A:

A 1. NO ORDERS?

(Find out if (a) he's needing orders due to not knowing his hat  or  if  (b)
he's not getting any direction or guidance from his senior.  Handle  (a)  by
getting him hatted, or (b) by doing this checklist on his senior.)

A2.   NEVER RECEIVED THE ORDERS?

(Have him get the orders and handle any cut line  that  isn't  relaying  the
orders.)

A3.   CROSS ORDERS?

(Find out what and handle per HCO  PL  13  Jan  AD29,  ORDERS,  ILLEGAL  AND
CROSS.)

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A4.   ILLEGAL ORDERS?

      (Find out what and handle per HCO PL 13 Jan AD29, ORDERS,

      ILLEGAL AND CROSS.)

A5.   VERBAL TECH?

      (Find out what and handle per the "How to Defeat Verbal Tech

      Checklist" and HCO PL 7 Aug 79, FALSE DATA STRIPPING.)

Section B:

B 1.  HASN'T READ THE ORDERS?

      (Have him read, word clear and starrate the orders.)

B2.   AVOIDANCE OR NEGATION OF POLICY?

      (Pull the O/Ws per W/H system. Then clear up his MUs on the

      relevant policy.)

B3.   POLICY UNKOWN?

      (Determine what applicable policy is unknown to him and have him

      read, word clear and starrate it.)

B4.   NO POLICY?

      (Have him work out what the policy should be and submit it for

      approval.)

B5.   LACK OF TECH?

      (Have him get familiar with the exact problem he's encountering and

      make him work out a solution that will handle it.)

Section C:

C 1.  MISUNDERSTOODS?

      (Find and clear the MUs.)

C2.   MISUNDERSTOODS ON THE ORDERS? (Find and clear the MUs.)

C3.   DOESN'T UNDERSTAND THE ORDERS? (Handle with Word Clearing and False
Data Stripping.)

C4.   FALSE DATA ON THE ORDERS?

      (Handle with HCO PL 7 Aug 79, FALSE DATA STRIPPING.)

C5.   OUT OF AGREEMENT WITH THE ORDERS?

      (Handle any out-ruds. Then handle with Word Clearing and False

      Data Stripping.)

C6.   LACK OF INTEREST?

      (Find out if it's out-ruds or MUs or past failures and handle

      accordingly.)

C7.   NO INTEREST?

      (Find out if it's out-ruds or MUs or past failures and handle

      accordingly.)

C8.   LACK OF VALUE OF THE CYCLE OF ACTION ITSELF? (Find his MUs and
handle. Have him demo out the cycle of action.)

Section D:

D 1.  FINANCE BUGS?

      (Find out what and get it debugged and also if it amounts to that,
get

      the whole FP Committee through the FP pack.)

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D2.   LOGISTICS PROBLEMS?

(Find out what it is and handle with HCO  PL  14  Mar  72,  Issue  11,  Esto
Series 7, FOLLOW POLICY AND LINES, and any other debug tech needed.)

D3.   NO EQUIPMENT?

(Find out what is needed, if it is really needed, and if so debug it  per  D
I  and  D2  above  so  it  is  gotten.  Remember  that  there  are  enormous
percentages of people who absolutely have to have before they  can  possibly
do and use that usually as an excuse not to produce.)

Section E:

E 1. SCARCITY OF PERSONNEL?

(Indicate it and then investigate and handle HCO which is usually up to  its
ears in personnel requests and busy on them instead of putting an HCO  there
that properly recruits, hats and utilizes personnel.  This  may  mean  doing
this Debug Checklist on the HAS or any person responsible for that  division
or activity because they aren't getting the products of  staff  members  who
produce.)

E2.   SOME OTHER PROBLEM WITH PERSONNEL?

(Debug this using HCO PL 16 Mar 71, Org  Series  25,  Personnel  Series  19,
LINES AND HATS and the Personnel Series as given in The Management Series.)

Section F.-

Fl.   ABSENCE OF HATTING?

(Find out if it's (a) lack of a hatting course for the staff, (b) a  hatting
course where WHAT IS A COURSE? PL is flagrantly not in, (c) the area  senior
doesn't make sure his staff put in study time off production  hours  or  (d)
some other reason why he does not go to  study.  Handle  according  to  what
comes up and HCO PL 23 Aug 79, Issue 1, DEBUG TECH.)

F2.   DOESN'T ATTEND STUDY?

(Find out if it's (a) lack of a hatting course for the staff, (b) a  hatting
course where WHAT IS A COURSE? PL is flagrantly not in, (c) the area  senior
doesn't make sure his staff put in study time off production  hours  or  (d)
some other reaon why he does not go  to  study.  Handle  according  to  what
comes up and HCO PL 23 Aug 79, Issue 1, DEBUG TECH.)

F3.   ABSENCE OF DRILLING?

      (Get any needed drilling on equipment and actions done.)

F4.   ABSENCE OF CRAMMING?

(Get the subject cramming is needed on and send him to Cramming.)

F5.   FALSE CRAMMING?

(Handle per HCO PL 7 Aug 79, FALSE  DATA  STRIPPING.  Assess  and  handle  a
Cramming Repair List if necessary.)

F6.   A DISASSOCIATION BETWEEN THE DEFINITION AND THE PHYSICAL UNIVERSE?

(Have him demonstrate-in clay if necessary-and give  real  examples  of  the
definition. Program him  for  M8  and  M9  program  and  the  Disassociation
Rundown.)

F7.   FALSE DATA ON THE HATTING MATERIALS? (Handle with False Data
Stripping.)

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F8. LACK OF TECHNICAL KNOW-HOW?

(Locate the area of  technical  know-how  he  is  lacking  in  and  get  him
studying and drilling the tech on it.)

F9. UNABLE TO BE HATTED?

(Strip off the false data in the area with False Data Stripping.)

Section G:

G1. EXTERIOR INFLUENCE STOPPING THE PRODUCTION

WHICH CANNOT BE HANDLED IN THE PRODUCTION AREA?

(Handle per Section G of HCO PL 23 Aug 79. Issue 1, DEBUG TECH.)

Section H.-

H 1. OTHER EVENTS?

(Find out what and handle per HCO PL 23 Aug 79, Issue 1, DEBUG TECH.)

H2. OTHER REASONS?

(Find out what and handle per HCO PL 23 Aug 79, Issue 1, DEBUG TECH.)

H3. HUGE PRODUCTION BUG?

(Find out what and use full debug tech to handle.)

H4. TIME?

(Find out if there'sjust NOT ENOUGH time to do what he has to do or if  he's
wasting time by not being organized or is being dev-ted and handle.)

H5. LACK OF PROXIMITY TO THE SCENE?

(Have him get on the correct comm lines and  get  in  ARC  with  the  scene.
Handle ruds if necessary.)

H6. NO COMM LINES?

(Determine whether this is from W/Hs or MUs and handle accordingly.)

H7. INABILITY TO COMMUNICATE?

(Pull his W/Hs. Make him do Reach and Withdraw on the people and objects  of
his area. Program him for the M8 and M9 program course.)

H8. ABSENCE OF ALTITUDE?

(Have him read HCO PL 4 Oct 68, ETHICS PRESENCE and Exec Series I and 2  and
have him demo how he can use them.)

H9. BAD HEALTH?

(Send him to the MO on an MO routing  form  and  get  it  handled.  Get  any
needed PTS handling done.)

HIO. LUCK?

(2WC his considerations on it and bring his cause level up  by  getting  him
to look at what he can do about it.)

Section I.-

11. MISUNDERSTOODS IN THE PRODUCTION AREA?

(Routine Word Clearing per the Word Clearing Series.)

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12.   MISUNDERSTOODS ON WHAT IS SUPPOSED TO BE DONE? (Routine Word Clearing
per the Word Clearing Series.)

13.   CONFUSIONS IN THE AREA?

      (Routine Word Clearing per the Word Clearing Series.)

Section J_-

J 1. CRASHING MISUNDERSTOOD?

(Crashing MU Finding per HCOB  17  June  79,  CRASHING  MISUs:  THE  KEY  TO
COMPLETED CYCLES OF ACTION AND PRODUCTS.)

J2.   TROUBLE COMPLETING CYCLES OF ACTION IN THE PRODUCTION AREA?

(Crashing MU Finding per HCOB  17  June  79,  CRASHING  MISUs:  THE  KEY  TO
COMPLETED CYCLES OF ACTION AND PRODUCTS.)

Section K..

KI.   NO IDEA AT ALL THAT PRODUCTS SHOULD BE GOTTEN OUT?

(Simply two-way comm of why the guy is there. It might come as  a  startling
realization that he is supposed to get out any products. This can be  backed
up by Exchange by Dynamics-HCO PL 4 Apr 72,  Esto  Series  14,  ETHICS,  and
Short Form Product Clearing per HCO PL 13 Mar 72, Esto Series 5,  PRODUCTION
AND ESTABLISHMENT-ORDERS AND PRODUCTS or HCO PL 23 Mar 72, Esto  Series  11,
FULL PRODUCT CLEARING LONG FORM.)

K2.   PRETENDING TO KNOW THAT PRODUCTS SHOULD BE GOTTEN OUT BUT DON'T?

(Simply two-way comm of why the guy is there. It might come as  a  startling
realization that he is supposed to get out any products. This can be  backed
up by Exchange by Dynamics-HCO PL 4 Apr  72,  Esto  Series  14,  ETHICS  and
Short Form Product Clearing per HCO PL 13 Mar 72, Esto Series 5,  PRODUCTION
AND ESTABLISHMENT-ORDERS AND PRODUCTS or HCO PL 23 Mar 72, Esto  Series  11,
FULL PRODUCT CLEARING LONG FORM.)

K3.   WON'T COMPLETE A CYCLE OF ACTION?

(Get the person's case looked into by a competent C/S and an Ethics  Officer
for background. If you are dealing with  a  suppressive  or  insane  person,
handle per ethics policies. If it is PTSness, get the person de-PTSed.)

Section L:

Ll.   WRONG STAT.?

(Get the right stat figured out so that it agrees with what he  is  supposed
to produce and actually measures his actual production.)

L2.   DOES THE STAT HAVE NOTHING TO DO WITH WHAT IS SUPPOSED TO BE BEING
PRODUCED?

(Get the right stat figured out so that it agrees with what he  is  supposed
to produce and actually measures his actual production.)

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Section M:

M I. WRONG VFP9

(Use HCO PL 24 July 78,  SUBPRODUCTS  and  Exchange  by  Dynamics  and  Full
Product Clearing Long Form on the correct and  actual  VFP-as  well  as  any
other products the person or area might have.)

M2. WRONG PRODUCT?

(Use HCO PL 24 July 78,  SUBPRODUCTS  and  Exchange  by  Dynamics  and  Full
Product Clearing Long Form on the correct and  actual  VFP-as  well  as  any
other products the person or area might have.)

M3. NO IDEA OF THE PRODUCT?

(Get a complete and accurate statement of the correct  product  and  Product
Clear him on it. See also HCO  PL  7  Aug  76,  Issue  1,  Esto  Series  31,
PRODUCT/ORG OFFICER SYSTEM, NAME YOUR PRODUCT.)

M4. UNSURE OF WHAT THE PRODUCT IS?

(Get a complete and accurate statement of the correct  product  and  Product
Clear him on it. See also HCO  PL  7  Aug  76,  Issue  1,  Esto  Series  31,
PRODUCT/ORG OFFICER SYSTEM, NAME YOUR PRODUCT.)

M5. THINKING IT'S THE AWARD RATHER THAN THE PRODUCT.? (Use HCO  PL  24  July
78, SUBPRODUCTS and Exchange by Dynamics  and  Full  Product  Clearing  Long
Form on the correct and actual VFP-as well as any other products the  person
or area might have.)

M6. DOES THE PRODUCT HAVE NO EXCHANGE VALUE?

(Use HCO PL 24 July 78,  SUBPRODUCTS  and  Exchange  by  Dynamics  and  Full
Product Clearing Long Form on the correct actual VFP-as well  as  any  other
products the person or area might have, and per HCO PL 23 Aug 79,  Issue  1,
DEBUG TECH, Section M.)

M7. OVERT PRODUCTS?

(Handle any W/Hs connected with this. Then handle per  HCO  PL  DEBUG  TECH,
Section M.)

M8. IS THE PRODUCT A PRODUCT THAT NOBODY WANTS?

(Handle any W/Hs connected with this. Then handle per  HCO  PL  DEBUG  TECH,
Section M.)

M9. NO MARKETING OR ADVERTISING OF THE PRODUCT?

(Handle any W/Hs connected with this. Then handle per  HCO  PL  DEBUG  TECH,
Section M.)

Section N:

NI.   NEVER FIGURED OUT WHAT WOULD HAVE TO BE DONE TO GET A PRODUCT?

(Handle per HCO PL DEBUG TECH, Section N.)

Section 0:

01.   OUT-ETHICS?

(Determine the situation and handle  with  O/W  write-ups  or  auditing  and
ethics conditions or correction of past ethics  conditions  and  the  ethics
policies that apply.)

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02.   ACTIVE CO UNTER- INTENTION?

(Pull the O/Ws and then locate the MUs. Then watch him and remove him if  he
remains Cl.)

03.   ACTIVE COUNTER-INTENTION ON THE PART OF OTHERS?

(Find out who. Handle any agreement he has with their CI as a W/H.  Get  the
person or persons who have CI handled  on  their  O/Ws  and  get  their  MUs
found. Remove if the person or persons remain CL)

04.   OTHER-INTENTIONEDNESS?

(Pull the O/Ws and then locate the MUs. Then watch him and remove him if  he
remains other-intentioned.)

05.   OTHER-INTENTIONEDNESS ON THE PART OF OTHERS?

(Find out who. Handle any agreement he has with their  otherintention  as  a
W/H. Get the person or persons who  have  otherintention  handled  on  their
O/Ws and get their MUs found. Remove if the person or persons remain  other-
intentioned.)

Section P:

Pl.   CREATING PROBLEMS AND DEMANDING SOLUTIONS TO THEM?

(Give the person PTS handling as per ethics policies. If and when  available
get the personnel de-PTSed with clay table de-PTSing, as covered in HCOB  28
Aug 79, CLAY TABLE DE-PTSINGTHEORY AND ADMINISTRATION.)

P2.   LOTS OF UNSOLVABLE PROBLEMS IN THE AREA?

(Give the person PTS handling as per ethics policies. If and when  available
get the personnel de-PTSed with clay table de-PTSing, as covered in HCOB  28
Aug 79, CLAY TABLE DE-PTSINGTHEORY AND ADMINISTRATION.)

P3.   CONNECTED TO SOMEONE OR SOMETHING ANTAGONISTIC?

(Give the person PTS handling as per ethics policies. If and when  available
get the personnel de-PTSed with clay table de-PTSing, as covered in HCOB  28
Aug 79, CLAY TABLE DE-PTSINGTHEORY AND ADMINISTRATION.)

P4.   PTS?

(Give the person PTS handling as per ethics policies. If and when  available
get the personnel de-PTSed with clay table de-PTSing, as covered in HCOB  28
Aug 79, CLAY TABLE DE-PTSINGTHEORY AND ADMINISTRATION.)

P5.   ACCIDENTS?

(Give the person PTS handling as per ethics policies. If and when  available
get the personnel de-PTSed with clay table de-PTSing, as covered in HCOB  28
Aug 79, CLAY TABLE DE-PTSINGTHEORY AND ADMINISTRATION.)

Section Q:

Ql.   ORGANIZING ONLY?

      (Handle his MUs in the area including any Crashing MUs.)

Q2.   TOTAL ORGANIZATION?

      (Handle his MUs in the area including any Crashing MUs.)

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Section R:

R I.  ORGANIZATION INADEQUATE TO GET THE PRODUCT? (Handle per Section R of
HCO PL 23 Aug 79, DEBUG TECH.)

R2.   LACK OF ORGANIZATION?

      (Handle per Section R of HCO PL 23 Aug 79, DEBUG TECH.)

R3.   NO ORGANIZING?

(Clear the misunderstoods, including Crashing MUs, in the  production  area,
particularly on the purpose of the production and why one is producing.)

R4.   LACK OF A SENSE OF ORGANIZATION?

(De-PTSing as covered in Section P. Then handle  any  overts  and  withholds
and then clear the MUs in the area, including Crashing MUS.)

R5.   NO GRASP OF THE CONCEPT OF ORGANIZATION?

(De-PTSing as covered in Section P. Then handle  any  overts  and  withholds
and then clear the MUs in the area, including Crashing MUS.)

L. RON HUBBARD

Founder

LRH:nc.gm

286



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 9 AUGUST 1979R

Remimeo     Issue 11

All Orgs    REVISED 19 NOVEMBER 1979

All Staff

      (Revisions in this type style)

      Establishment Officer Series 39

      Org Series 39

SERVICE PRODUCT OFFICER

(This HCO PL has been revised in order to show the importance of the

ProductlOrganizing Officer and Establishment Officer systems in relation

to the Service Product Officer. These systems are totally valid and

should be in full use in organizations.)

References:

The Flag Executive Briefing Course tape lectures

The Org Series

The Establishment Officer Series

HCO PL 9 Aug 79 1      CALL-IN: THE KEY TO FUTURE

      DELIVERY AND INCOME

HCO PL 7 Aug 761 NAME YOUR PRODUCT

HCO PL 7 Aug 76 Il     WANT YOUR PRODUCT

HCO PL 7 Aug 76 111    TO GET YOU HAVE TO KNOW HOW

      TO ORGANIZE

HCO PL 20 Nov 65 THE PROMOTIONAL ACTIONS OF

      AN ORGANIZATION

HCO PL 28 Jul 74 ADDITIONS TO PROMOTIONAL

      ACTIONS OF AN ORGANIZATION

HCO PL 28 May 72 BOOM DATA

HCO PL 15 Nov 60 MODERN PROCUREMENT LETTERS

HCO PL 14 Feb 61 THE PATTERN OF A CENTRAL ORG

HCO PL 21 Nov 68 SENIOR POLICY

HCO PL 28 Feb 65 DELIVER

HCO PL 23 Aug 79 1     DEBUG TECH

HCO PL 23 Aug 79 //    DEBUG TECH CHECKLIST

HCO PL 9 Aug 79 111 SERVICE/CALL-IN COMMITTEE

HCO PL 10 Jul 65 LINES AND TERMINALS ROUTING

The post of SERVICE PRODUCT OFFICER is hereby established in the  Office  of
the CO/ED, Dept 19, of all Class IV and Sea Org orgs. His direct  senior  is
the CO/ED.

Until such time as a SERVICE PRODUCT OFFICER is posted the  responsibilities
and duties are covered by the Service/Call-in Committee as  fully  laid  out
in HCO PL 9 Aug 79 1, CALL-IN: THE KEY TO FUTURE  DELIVERY  AND  INCOME  and
HCO PL 9 Aug 79 111, SERVICE/CALL-IN COMMITTEE.

The VALUABLE FINAL PRODUCTS of this post are (1) flawlessly serviced and

287



completed paid pcs and students who re-sign-up for their next  service,  and
(2) high quality promotional items in the hands of  volumes  of  public  who
come in, sign-up and start an org service.

The main statistics for the SERVICE PRODUCT OFFICER are

(1) Number of pcs and students completed and  re-signed  on  to  their  next
service. (This includes those actually routed on to the next upper  org  for
services and who do re-sign.)

(2) Number of public in and started onto a service.

Completion: By completion is meant those actions completed and  attested  at
C & A and accompanied by an acceptable success story.

Re-sign: By re-sign-ups are meant pcs and students who, after completion  of
a service, see the Registrar to sign up again for another service  while  in
the org.

Promotional  Items:  Those  items  which  will  produce   income   for   the
organization. By  promotional  items  are  meant  those  things  which  make
Scientology and our products known and will cause people to  respond  either
in person or by  written  reply  to  the  result  of  receiving  Scientology
commodities. These are tours, book outlets, Sunday services, events,  upstat
image, fliers, info packs, handouts, books,  ASR  packs,  specified  service
promotion, etc.

There are of course many  other  stats  that  reflect  the  SERVICE  PRODUCT
OFFICER'S subproducts and these are VSD,  TOTAL  GI,  INTENSIVES  COMPLETED,
BULK MAIL OUT, NUMBER OF PROMOTIONAL ACTIONS OF THE ORG IN, NUMBER OF  FULLY
AND PARTIAL PAIDS GOTTEN INTO THE ORG AND ON TO THEIR  NEXT  SERVICE.  These
are very important parts  of  the  SERVICE  PRODUCT  OFFICER  HAT,  as  they
reflect his subproducts which lead to his valuable final product.

                           SERVICE PRODUCT OFFICER

                         RESPONSIBILITIES AND DUTIES

The purpose of an organization is to deliver  service  to  the  public.  The
primary functions which add up to delivery  to  the  public  are  promotion,
sales, call-in, delivery itself and re-sign. The Service Product Officer  is
responsible for the flow of PRODUCTS through these areas. He  is  a  PRODUCT
OFFICER. He names, wants and gets products in these areas and  thus  ensures
that the organization  is  accomplishing  its  purpose  of  service  to  the
public.

The full technology of Product Officers is explained in the  Flag  Executive
Briefing  Course  lectures,  where  the  ProductlOrg  Officer   system   was
developed. This system is still fully valid and is, in  fact,  the  tech  of
the Service Product Officer. He is solely interested in products.  When  the
Service Product Officer comes across a situation that  requires  organizing,
he gets his Organizing Officer to handle it. The  0/0  (Organizing  Officer)
should actually be operating a  few  steps  ahead  of  the  Service  Product
Officer  at  all  times-organizing  for  immediate   production,   per   the
ProductlOrg system. A full study of the ProductlOrg system, as contained  in
the FEBC tapes, the Org Series and Esto Series 33, 34  and  35,  NAME,  WANT
AND GET  YOUR  PRODUCT,  is  recommended  in  order  to  attain  a  thorough
understanding of  the  actions  of  the  Service  Product  Officer  and  his
Organizing Officer.

The Service Product Officer is not a stopgap at any point of the  promotion,
sales, call-in, delivery and re-sign lines, where executives have failed  to
post  and  hat  staff.  This  would  be  the  responsibility  of  the   Exec
Establishment Officer per Esto Series 1.  Establishment  Officers  see  that
short and long-range establishment are occurring in the organization in  the
form of recruiting, hatting and training of  staff  The  Esto  system  is  a
necessary and very vital tool  for  the  Service  Product  Officer  and  the
organizationand should definitely be in full use.

288



The Service Product Officer has the authority  to  directly  order  or  work
with any terminal involved in the promotion, sales, call-in, delivery or re-
sign areas so long as he maintains direct liaison with their seniors.

The Service Product Officer must be fully aware of every  post  in  the  org
and what their jobs consist of. He must know who  handles  what  cycles  and
what cycles are on the lines. For instance, it is up to the Service  Product
Officer to be aware of all promotional actions occurring in the org and  who
is doing them, or if they aren't getting done. He  must  be  aware  of  what
public aren't getting serviced and he ensures  those  responsible  get  them
serviced. He doesn't do this himself  as  a  serious  goof  of  any  Product
Officer would be to go down the org  board  and  do  the  job  himself.  The
Service Product Officer must ensure others get the work done. Otherwise,  he
would wind up doing everyone's post and  not  getting  anything  done.  It's
actually pretty overwhelming to  think  of  a  Service  Product  Officer  as
responsible for doing everyone else's post duties. That's the sure-fire  way
to sink fast. Where a product isn't getting out the Service Product  Officer
debugs it using HCO PL DEBUG TECH, in order to get  production.  He  is  not
interested in first finding the person's MU or excuse, he is  interested  in
getting production occurring now. Let the Org Officer and Qual  worry  about
the staff member's MUs.

Divisional Secretaries are the Product Officers for their division  per  the
ProductlOrganizing Officer system. The Service  Product  Officer  sees  that
the Product Officers  over  the  whole  delivery  cycle  are  getting  their
products. He coordinates the flow of products from division to  division.  A
Service Product Officer doing his post fully and properly is, in  fact,  the
person that makes the org board work. He sees that products  aren't  jamming
up  at  one  point  of  the  line,  but  that  they  continue  through   the
organization.

The Service Product Officer walks into the Tech Div and finds the  Tech  Sec
sitting at his desk, shuffling  paper  and  the  pcs  are  piling  high  and
complaining about no service. The last thing  the  Service  Product  Officer
would do is start organizing the Tech staff around and scheduling  the  pcs.
No sir, that's a serious offense. The first thing he would do  is  find  out
what can be produced RIGHT NOW, what auditors can  be  gotten  into  session
right now and makes the Tech Sec do it and  GET  IT  DONE.  This  all  takes
about 15 minutes and he gets the area flowing again and then, WHAM!  .  .  .
he's out and into his next area. The Service Product Officer would  not  sit
down and just start word clearing or doing Exchange by Dynamics on the  Tech
Sec. He would unstick the flows and get them moving.  Then  he  would  alert
HCO and Qual to this serious  problem  of  unhattedness  and  demand  it  be
handled.

The basic sequence of the Service Product Officer on  getting  the  products
flowing off the lines is PUSH, DEBUG, DRIVE, NAME IT, WANT IT, AND  GET  IT.
That's the only way you ever get a product. Products don't happen  on  their
own.

This means he tells the Tech Sec to get  Joe  Blow  there  in  session  now!
There is no general "audit these pcs." You'd never get a product that way.

The ED/CO has no authority to order the Service Product Officer  to  perform
the total duties of any one post. The Service  Product  Officer  must  guard
against being stuck into one post after another, doing it all  himself.  Nor
is the Service Product Officer an "expeditor" for the CO/ED.

It is also very important that the Service Product  Officer  advise  seniors
that he is going into their areas so as not to  create  a  Danger  condition
and wind up having to run the entire org. He also does this by  getting  the
seniors to handle their juniors so a product is gotten. He does not walk  in
and cross-order the seniors of  areas  but  works  with  them  to  see  that
products are produced.

The Service Product Officer is one who comes up with BIG  IDEAS  on  getting
public flooded into the org and being serviced swiftly. He is  the  one  who
thinks along the  line  of  PRODUCTS  PRODUCTS  PRODUCTS.  By  spanning  the
divisions, he coordinates the product wanted and ensures  each  division  is
aware of its part in  getting  this  product  and  that  their  actions  are
uniform. Where the Service Product

289



Officer spots diversity, or lack  of  uniformity,  he  must  alert  his  Org
Officer or HCO. By doing the actions  of  coordination  for  a  product  and
product demand, the Product Officer creates  a  team  and  more  importantly
sets the pace of the org's production and morale.

ORG LINES AND THE SERVICE PRODUCT OFFICER

There are certain aspects of the  organization  which  the  Service  Product
Officer must be thoroughly trained in to do his job properly.

The Service Product Officer must be fully aware of all  the  Valuable  Final
Products (VFPs) of each department and each division  of  the  org.  Without
this the Service Product Officer can create havoc, as he would  be  ordering
Division 6 to recruit or the Reges to supervise. By  not  knowing  cold  the
org V17Ps, the  Service  Product  Officer  would  certainly  jam  the  flows
throughout the org board.

A serious fault in any executive is not knowing the functions  of  terminals
and the relation  of  one  terminal  to  another.  A  key  function  of  any
executive is that of routing. An  executive  that  misroutes  communications
and particles will tie his org in knots  and  wonder  why  no  products  are
coming out. Therefore, a Service Product Officer must know cold  every  post
function in the org and what particles belong on what lines.

He has got to know where a product comes from and where it goes in order  to
see it through the lines. A Product Officer's job is to name, want  and  get
a product. However, he must first know where that product is  to  come  from
and where it is to go. This is an incredibly fundamental point.

In order for org lines to flow, routing forms (RFs) must be used. A  routing
form is a full step-by-step road map on  which  a  particle  travels.  Every
point a particle (which could be a student, pc, mail, etc.) must go  through
to wind up at its destination must be listed on the routing form.

The Service Product Officer's Organizing Officer must ensure  routing  forms
exist and are in use for each and every line in an org he deals in. Both  he
and the Service Product Officer must know these forms cold and  be  able  to
instantly spot when a line is being abused or ignored so as to slam  in  the
correct routing.

A Service Product  Officer  must  fully  clay  demo  all  the  lines  of  an
organization for each and every product. This  must  include  each  particle
from entrance to the org and through all lines on which that particle  would
flow until it leaves the org.  Lines  are  the  most  fundamental  point  of
administration.  To  not  have  a  full  grasp  of  these  lines  would   be
detrimental to any Product Officer.

                           SERVICE PRODUCT OFFICER

                             SEQUENCE OF ACTIONS

It is very easy for the Service Product Officer to become wrapped up in  one
area while neglecting the others; however, this must not be done  as,  while
products might be getting through in one area, they may  well  be  seriously
bogging in others. The Service Product Officer is concerned with  promotion,
sales, call-in, delivery and re-sign. He begins his  product  officering  in
promotion and gets products out there or started and moves on to  sales  and
gets them on to getting  their  products  and  so  on  through  call-in  and
delivery and re-sign. He then  returns  to  the  beginning,  promotion,  and
follows up on what he started there and gets even more production out.  This
is basically how the Service Product Officer moves through the org.

Daily, the Service Product Officer must plan and battle plan  out  his  day.
He must list those products he intends to achieve in each one of  his  areas
and then gets them.

The Service Product  Officer  is  not  an  "information  courier"  or  "data
gatherer." He is ahead of the game and knows the data.  He  must  know  what
public haven't been regged in the org yet, he  must  know  who  hasn't  been
taken into session that day, or who

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has been stuck in Ethics for 3 days, and ensure these things get handled.
Therefore he must be quicker and faster than anyone else in the org and run
run run.

PROMOTION

Promotion is the first action of the SERVICE PRODUCT OFFICER. He must
ensure the many promotional pieces and actions are getting done. Some of
these are

1.    Selling of books.

2.    Staff selling books.

3.    Books placed in public bookstores.

4.    Selling of books to FSMs, franchises, distributors, retailers and
salesmen.

5.    Books sold on each public contact.

6.    Books advertised in mags, ads, posters, fliers, etc.

7.    ASR packs.

8.    Info packs.

9.    Div 6 handouts for lectures and free testing.

10.   Posters on major services in Div 6.

11.   Promo to field auditors, FSMs, gung ho groups, Dianetic study groups.

12.   Org mags.

13.   Flag shooting boards.

14.   Promo for future events and tours.

15.   The AUDITOR (for SHs).

16.   Clear News.

17.   ADVANCE! mag (for AOs).

18.   SOURCE mag (FSO).

19.   1 WANT TO GO CLEAR CLUB promo (AOs),

20.   SHSBC/NED/ INTERNSHIPS /NOTs /GRADES, etc., specified in promo.

21.   Promo at points of public inquiry.

22.   Free testing ads.

23.   Fliers inviting people to buy Scientology books.

24.   More-Info-Cards used in books.

25.   Ads in newspapers.

26.   Questionnaires to detect people's plans for training and processing.

27.   Enough letters to public so they come in.

28.   All promotional actions per HCO PL 20 Nov 65, PROMOTIONAL ACTIONS OF
AN ORGANIZATION.

29.   Book seminars, public campaigns and lectures.

30.   Public Reception display (books, posters, handouts, etc.).

31.   Tours and events, Sunday service.

32.   Free testing line.

33.   Handling of gung ho groups, keeping FSMs well supplied and
supervision of Dianetic study groups and FSMs.

34.   Test centers outside the org as an extension.

35.   Radio and TV advertisements.

36.   Dept 17 services.

37.   Reception greeting, handling, routing, chasing up people for
appointments and handling incoming calls with ARC and efficiency.

38.   Formation of Dianetic counseling groups.

39.   Weekly tape and film plays.

40.   Promotes the org and standard tech to Auditors Association.

41.   Contacts and sees any sign of ARC broken field and alerts Chaplain to
clean up the field.

The first thing a Service Product Officer would want to do is get out a
large volume of promo to at least get some activity occurring. This would
entail Dissern getting any promo laying around the org dug up and sent out
to students and pcs. They would get it out in letters and mailings, they
would get it handed out to students and pcs, they would pick up the half-
completed promo piece, have it fixed up and sent out. They would have promo
placed in Reception, in any public inquiry, etc. In other words, the
Service Product Officer ensures that the org fully utilizes what promo they
do have. He would also have specific promo pieces done to enlighten the
field on what services

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the org has. Where any of this bogged  he  would  push-debug-drive-name  it-
want it-and get it.

The Service Product Officer, in trying to  get  in  any  promotional  items,
must review what resources he has. For example, is there a Dir Clearing;  is
there a Receptionist; etc.? He must concentrate on getting  those  terminals
that already exist busy on promotional actions that will create the  largest
volume of inflow,  while  his  Organizing  Officer  works  on  getting  more
immediate resources to  increase  the  volume  even  further.  It  would  be
senseless to have the Dir Clearing running around trying to form  up  groups
in an inactive field, single-handing, when he  has  FSMs  that  need  to  be
gotten on to selecting and  driving  in  new  public.  The  Service  Product
Officer is concerned with priorities of  promotional  actions,  so  must  be
totally aware of all the promotional items  and  actions  that  an  org  can
produce.

Actions  such  as  "improved  org  appearance,"  "high  ARC  handling,"  and
"correct and efficient routing of public" can be put  in  instantly.  If  he
has 2 people in all of Dissem he  still  can  and  must  get  the  particles
flowing and products coming off the line.

SALES

The sales lines consist of enlightening the public,  having  lines  to  sign
people up, getting public into the org and signed up for service.

The following gives you an idea of some of the sales actions and lines in
an org:

1.    Body Reg phones and schedules public to come in for interview.

2.    Use of CF to produce business.

3.    Reges who accept advance registrations.

4.    D of T procurement of students.

5.    D of P procurement of pcs.

6.    Receptionist sells to public coming in.

7.    SHs in communication with the Class IV Org Tech  Secs  and  Registrars
and targeting them for public completing and routing on to the higher org.

8.    AO's and SH's case consultant actions.

9.    AO/SH events to Class IV Org academies to encourage upper level
auditor training.

10.   Use of FSMs, Auditors Associations, personal contact, etc., to get
public into the org and on to their next service.

11.   Fast lines so public are not left waiting to see the Reg.

The lines of routing a public person to the  Reg,  or  from  the  Reg  to  a
service must be tight so public aren't  lost,  and  the  Reg  is  kept  busy
continuously with the public. Therefore, the Service  Product  Officer  must
police these lines and where he notices any lack of uniformity he  gets  his
Org Officer  onto  it.  Nonuniform  or  slow  routing  interferes  with  the
product, so the Service Product Officer gets it  speeded  up  now  by  push-
debug-drive-name it-want it-and get it.

The first actions of the Service Product Officer in the sales  area  are  to
get all "in-the-org" public routed to the Reg on breaks or after course  end
to be further signed up for additional service.  He  can  also  have  Dissem
drilling done with Reges so as to increase sales in the org.  His  operating
procedure is products, products, products, now, now, now.  His  Org  Officer
or HCO and Qual can worry about organize, organize, organize.

CALL-IN

Call-in is the action of getting fully paids into the org on to  their  next
service. This also includes getting partially paids fully  paid  and  on  to
their next service. These functions are of  great  concern  to  the  SERVICE
PRODUCT OFFICER as undelivered services to the public can mess  up  a  field
and increase the chance of refunds. The Service Product Officer  should  see
to it that the Call-in Units are given stiff targets and

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that their  production  is  not  monitored  by  low  auditor  hours  or  low
producing training areas. The execution of needed programs  to  get  Call-in
Units fully operational is under the Service Product Officer per  HCO  PL  9
Aug 79 1 CALL-IN: THE KEY TO FUTURE DELIVERY AND INCOME.  This  same  policy
also lists out the functions of the Call-in  Units.  Call-in  falls  between
sales and delivery, as it deals with those either fully or partly  paid  and
needing only to finish payment and be called in and gotten onto service.

DELIVERY

The Service Product Officer must ensure that the service lines  of  the  org
are fast and 100% standard, that pcs and students do  complete  quickly  and
don't get lost off the lines.

The Service Product Officer is to have an alert line with the public set  up
whereby if a student or pc's study or auditing is slowed, or if  the  public
person is dissatisfied in any way, he can alert the Service Product  Officer
so it can be handled.

Some of the actions and  lines  to  be  product  officered  by  the  Service
Product Officer are as follows:

1.    Tech Services arranges housing, has the pc met when he is arriving
and generally operates as the pc's host while in the org.

2.    The many lines such as pc  to  Ethics,  pc  to  Examiner,  student  to
Ethics, student to Qual, C/S Series 25 line and pc to D of P  line  must  be
drilled so they are flawless and handled with ARC.

3.    The most senior policy applied to this area is HCO PL 21 Nov 68,
SENIOR POLICY "WE ALWAYS DELIVER WHAT WE PROMISE."

4.    There must be an adequate amount of auditors, Tech Pages and FESers,
Ds of P, Supervisors, Course Admins, etc.

5.    The auditing line must be fast so no pcs wait to be serviced.

6.    Use of all hands tech terminals in the org auditing when required to
handle backlogged service.

7.    Getting students through their courses and on to their internship at
which point they can audit in the HGC.

8.    Proper scheduling so every pc gets in 121/2 hours a week minimum.

9.    Recovering blown auditors, getting them fixed up and auditing.

The Service Product Officer ensures tech lines are  fast.  For  instance,  a
pc's folder not getting C/Sed for  days,  or  idle  auditors  and  Ds  of  P
"waiting" for pcs when they can be made to procure pcs, must be spotted  and
handled by the Service Product Officer.

The Service Product Officer must be kept briefed on what pcs,  and  students
arrive and how they are going to be handled. He must  get  around  to  these
areas (Training and HGC) to ensure that there are no slows  with  public  or
anything that would get in the way of public receiving top quality service.

Service to the public is the reason the org is there  and  service  must  be
kept fast and 100% standard and plentiful. This is a  primary  duty  of  the
Service Product Officer; he is there to ensure this occurs.

It is losses on service that keep public away, org income down and staff
pay low.

RE-SIGN-UP

The re-sign-up line is also very key to  an  organization's  prosperity.  It
brings further  income,  and  proves  conclusively  that  the  last  service
received by the public person was of high quality. This is why  the  Service
Product Officer must be very alert to the amount of re-signs.  Some  of  the
things that should be watched for are

1.    That the Reg is supplied with an upstat cert for his last completed
service to present to the student or pc.

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2.    That the Reg knows fully how to handle the public person that won't
re-sign (by sending them to Qual).

3.     The  Reg  must  be  provided  with  tech   estimates,   Grade   Chart
information, etc., so he is aware ahead of time of what the student or  pc's
next action is.

4.    Tech terminals are fully briefed and the line is in that every
completion gets routed to the Reg. This must be drilled.

The public person should be serviced  in  your  org  until  he/she  requires
upper level service that your  org  cannot  deliver,  at  which  point  they
should be directed to the next higher org.

PITFALLS

The Service Product Officer can lose his effectiveness if he takes any  "hey
you" orders or gets stuck in at various points. He is not an  expeditor.  He
is  not  an  information  and  full-time  coordinator  terminal.  He  is  an
executive, a Product Officer, and he is there to ensure the  entire  machine
runs.

He must be well versed on actions occurring in the org.  He  must  also  pay
strict attention to completing  actions  he  has  started  and  to  carry  a
handling through to a done. Otherwise he can  wrap  himself  around  a  pole
with incomplete cycles which will ball up the line and prevent  the  service
lines from flowing flawlessly.

Where the Service Product Officer post bogs it is undoubtedly due to a  lack
of an Organizing Officer, as with the  speed  in  which  a  Service  Product
Officer demands products, he requires a fast moving Org Officer.  So  it  is
essential this post be provided with an Org Officer as soon as possible.

Those personnel in the org who are responsible for  organization,  any  Esto
personnel, etc., are the people who put the units in the org  there.  It  is
not the duty  of  a  Service  Product  Officer  to  man  and  hat  the  org.
Therefore, it is a lot of sweat off the Service Product  Officer's  brow  to
have a fully functioning Esto team backing up his  actions  in  getting  the
flow of products out of the organization.

SUMMARY

The Service Product Officer ensures all the actions of getting public  into,
through and out of the org are accomplished with high quality results.

It is extremely important that this post be manned in each  and  every  org.
It doesn't just make the difference between a poor, empty  org  and  a  good
org. This post makes the difference between a good org and a booming org.

L. RON HUBBARD

Founder

LRH:dr.gal.gm

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                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 FEBRUARY 1980

Remimeo

Exec Hats

All Staff Hats

Esto Series 40

Org Series 40

Product Debug Series 9

ORDER versus DISORDER

(Ref: HCO PL 9 Feb 74R ETHICS-CONDITION BELOW

      Rev. 17.2.80     TREASON-CONFUSION FORMULA

            AND EXPANDED CONFUSION

            FORMULA

      HCO PL 30 Dec 70      ENVIRONMENTAL CONTROL)

I made a breakthrough recently, while  investigating  low  production  areas
and realized that a good deal more needs to be said on the subject of  order
and disorder.

Order is defined as a condition in which everything is in its  proper  place
and performs its proper function. A person with a personal  sense  of  order
knows what the things in his area are, he knows where  they  are,  he  knows
what they are for. He  understands  their  value  and  relationship  to  the
whole.

A personal sense of order is essential in getting out products in an area.

An orderly typist, for instance, would  have  all  the  materials  requiring
typing, she would have ample paper  and  carbons  within  arm's  reach,  she
would have her correction fluid to hand, etc. With all  preparatory  actions
done, she would sit down to type with an operational  typewriter  and  would
know what that typewriter was and what it was for.

She would be able to sit down and get her product, with no wasted motion  or
stops.

But let's say you had a carpenter  who  couldn't  find  his  hammer  and  he
didn't even know what a hammer was for  and  he  couldn't  find  his  chisel
because when he picked it up he put it down and couldn't find it  again  and
then he didn't know where his nails were. You give him a  supply  of  lumber
and he doesn't know what it's for, so he doesn't categorize it where he  can
put his hands on it.

How many houses do you think he would build?

The actual fact of the case is that a  disordered  person,  operating  in  a
disorganized area, makes a 10-minute cycle into a 3-week cycle (believe  it,
this is true) simply because he couldn't find his ruler,  lost  his  eraser,
broke his typewriter, dropped a nut and couldn't find it again  and  had  to
send off to Seattle for another one, etc., etc., etc.

BASICS

In working with a group of nonproductive technicians recently, I  discovered
something interesting: out-basics. I actually  found  a  lower  undercut  to
what we generally think of when we say "basics."

These technicians had reportedly researched a key  piece  of  equipment  and
had it all sorted out. But I found that they  didn't  even  know  the  basic
fundamental of what that machine was supposed  to  do  and  what  they  were
supposed to be doing in their area.

That told me at once that they had no orderly files, no research data.  They
were losing things.

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Now, if they were losing things, that opened  the  door  to  another  basic:
they couldn't have known where things were. They put down a tool over  there
and then when they needed it again they would have  to  look  all  over  the
place because they hadn't put it down where it belonged.

Their work was not organized so that it could be done  and  the  tools  were
not known.

So I checked this out. Were they logging the things they were using  in  and
out so they could find them again? Were they putting things away  when  they
were done with them? No, they weren't.

This is simply the basic admin  coupled  with  the  knowledge  of  what  the
things one is working with are. It's orderliness  and  knowing  what  things
are, knowing what  they  are  for  and  where  they  are,  etc.  That's  the
undercut.

If people don't have a true knowledge of what  the  things  they're  working
with are, if there are omitted tools, inoperational  tools,  if  they  don't
know what their tools are supposed to do, if there are no files or  if  once
used, files are not reassembled and put back in the file drawer,  if  things
get lost and people don't know where things are and  so  on,  they  will  be
running around spending 3 or 4 hours trying to  locate  a  piece  of  paper.
That isn't production.

If a person can't tell you what the things he works with are,  what  they're
for and where they are, he isn't going to get out any  product.  He  doesn't
know what he's doing.

It's like the carpenter trying to build a house without  knowing  what  he's
got to build it with, without understanding his tools and raw materials  and
the basic actions he must take to get his product. That's what  was  holding
up production in the area: disorderliness. And the basics were out.

This is  actually  far  below  knowing  the  tech  of  the  area-the  actual
techniques used to get the product. The person does not even know  what  his
tools and equipment are or what they're supposed  to  do.  He  doesn't  know
whether they are operational or inoperational. He  doesn't  know  that  when
you use a tool you return it to its proper place. When you have  a  despatch
you put it in a file where it can be retrieved. It  undercuts  even  knowing
the orders and PLs relevant to his hat.

What are the basics that are missine. The basics  of  sitting  down  to  the
table that one is supposed to sit down to, to do the  work!  The  basics  of
knowing what the tools, materials and equipment he works with are  and  what
he's supposed to do with them to get his product. Those are the basics  that
are missing.

We are down to a real reason why a person cannot turn out products.

That is what is holding up such a person's  production.  It  is  well  below
knowing the technique of his job.

Out-basics. Does the guy know where the file is? When he finishes with  that
file does he leave it scattered all over the place or does he  put  it  back
together and into the file where it can be found?

Now, a person who's working will have papers all over the  place,  but  does
he know where they are and is he then going to reassemble them and put  them
back in order or is he going to just leave them there  and  pile  some  more
papers on top of them?

If you find Project No. 2 scattered on  top  of  Project  No.  1,  you  know
something about that area. Basics are out.

This is a little piece of tech and  with  that  piece  of  tech  you've  got
insight. You would have to have an overall picture of what  the  area  would
look like when properly ordered and organized-how it would be  organized  to
get optimum production.

Then you could inspect the area and spot what's going on. You would  inspect
on the basis of: how does the area compare with how it should be  organized?
You would find out if the personnel didn't know what  the  things  in  their
area were or what they

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were for, you would see if they knew the value of things in the area  or  if
there were altered importances, omitted files or filing, actions being  done
out of sequence, inoperational tools or equipment,  anything  added  to  the
scene that was inapplicable to production, etc.

In other words, you can inspect  an  area  by  outpoints  against  this  one
factor of orderliness.

This sort of out-basics and disorderliness cuts production down to  nothing.
There just won't be any production at all. There will be no houses built.

What we are talking about here is an orderly frame of mind. A person with  a
sense of order and an understanding of what he is doing, sits down to  write
a story or a report and he'll have his paper to hand, he'll  have  it  fixed
up with carbons and he'll have his reference notes to hand.  And  before  he
touches the typewriter, he'll familiarize himself with what  the  scene  is.
He'll do the necessary preparatory work in order to get his product.

Now someone else might sit down, write something, then dimly remember  there
was a note someplace and then look for an hour to find where that  note  was
and then not be able to find it and then  decide  that  it's  not  important
anyway and then come back and forth a few times and finally  find  out  he's
typed it all up without a carbon.

There is a handling for this. Anyone trying to handle an  area  who  doesn't
understand the basics of what they're dealing with and is in an utter  state
of disorder must get a firm reality on the fact that until  the  basics  are
learned and the disorder handled, the area will not produce satisfactorily.

The following inspection is used in determining and handling  the  state  of
such an area-

INSPECTION

This inspection is done in order to determine an area's knowledge of  basics
and its orderliness. It can be done by an area's senior for the  purpose  of
locating and correcting disordered areas. It is also used as part  of  debug
tech as covered in HCO PL 23 Aug 79 DEBUG TECH. It is for use by anyone  who
is in the business of production and getting products.

The full inspection below would be done, clipboard in hand, with full  notes
made and then handlings would be worked out based on what was found  in  the
inspection (according to the Handling Section of this PL and  the  suggested
handlings given in parentheses below).

1.    DOES HE KNOW WHAT ORGANIZATION, FIRM OR COMPANY HE'S IN? DOES HE KNOW
WHAT HIS POST OR JOB IS?

This is a matter of does he even know where he is. Does  he  know  what  the
organization or company he works for is, does he know what the  post  he  is
holding is?

(If he is so confused and disoriented that he doesn't even know the  company
or org he's in or doesn't know what his post  is,  he  needs  to  apply  the
Expanded Confusion Formula, HCO PL 9 Feb 74R and then work  up  through  the
conditions.

Of course the person would also need to be instant hatted  on  his  post-the
organization, his post title, his relative position on the org  board,  what
he's supposed to produce on his post, etc.

If he is doing this handling as part  of  his  Expanded  Confusion  Formula,
simply have him get the instant hatting and  carry  on  with  his  Confusion
Formula.)

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2.    A SK THE PERSON WHA T HIS PR OD UCT IS.

Does he know? Can he tell you without comm lag or confusion?

You may find out that he has , no idea of what his product  is  or  that  he
has a wrong product or that he has confusions about his  product.  Maybe  he
doesn't even know he's supposed to get out products.

(If this is the case, he must find out what his product is. If the  person's
product is given in policy references, he  should  look  these  up.  If  his
product is not covered in tech or policy references, he'll have to work  out
what it is.)

3.    CAN HE RATTLE OFF A LIST OF THE BASIC  ACTIONS,  IN  PROPER  SEQUENCE,
NECESSARY TO GET OUT HIS PRODUCT OR DOES HE HEMANDHAWONIT?

Does he know what to do with his product once it is completed?

He may try to tell you what he does each day or how he handles this or  that
and what troubles he's having with his post. You note this, but what  you're
interested in is does he know the basic actions he has to take  to  get  out
his product. And does he know what  to  do  with  the  product  once  it  is
complete?

(If he can't rattle off the sequence of actions 1, 2,  3  then  he'd  better
clay demo the basic actions, in proper sequence, necessary to  get  out  his
product and then drill these actions until he can rattle  them  off  in  his
sleep. If he does not know what to do with his product once completed,  then
he'd need to find out and then drill handling the completed product.)

4.    ASK HIM WHAT HIS TOOLS ARE THAT ENABLE HIM TO GET THIS PRODUCT

Note his reaction. Can he name  his  tools  at  all?  Does  he  include  the
significant tools of his area? Does he include his hat pack as a tool?

(If he doesn't know what his tools are,  he'd  better  find  out  what  he's
operating with and what it does. A good workman knows his tools so  well  he
can use them blindfolded, standing on his head and with one arm tied  behind
his back.)

5.    ASK HIM TO SHO W YOU HIS TOOLS.

Are his tools present in the work area or does he have them  out  of  reach,
down the hall or in some other room?

(He may have to reorganize his work space  to  get  his  tools  within  easy
reach and to get in  some  basics  of  organization.  The  purpose  of  such
organization would be to make production easier and faster.)

6.    ASK HIM TO TELL YOU WHAT EACH OF HIS TOOLS ARE.

Can he define them? Does he know what each of them are and what they are
for?

(If he doesn't know, he'd better find out.)

7.    ASK HIM TO TELL YOU WHAT THE RELATIONSHIP IS BETWEEN EACH ONE OF HIS
TOOLS AND HIS PRODUCT

(If he can't do this, have him clay demo the steps he takes to get  out  his
products with each tool he uses, so he sees the  relationship  between  each
tool and his product.)

8.    ASK HIM TO NAME OFF THE RAW MATERIALS HE WORKS WITH. ASK HIM TO SHO W
YO U HIS MA TERIA LS.

Does he know what his raw materials are? Are they  in  his  work  area?  Are
they in order? Does he know where to get them?

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(He may have to find out  what  the  raw  materials  of  his  post  are  (by
defining them) and where they come  from.  He  should  drill  procuring  and
handling them and then run Reach and Withdraw on them.)

9.    DOES HE HA VE A FILE CA BINET? FILES? A SK HIM WHA T THE Y A RE.

Does he know what they are for? Does he know what a despatch is, etc.?

(He may have  to  be  brought  to  an  understanding  of  what  riles,  file
cabinets, despatches, etc., are and what they have to do with  him  and  his
product. He may have to clay demo the relationship between these things.  He
will have to set up a filing system. Ref. HCO PL 18 Mar 72, Esto Series  10,
FILES.)

10.   DOES HE HAVE A SYSTEM FOR LOCATING THINGS?

Ask to see it. Check his files. Does he have logs? Does he  log  things  out
and correct the logs when he puts them back? Are the comm  baskets  labeled?
Does he have a specific place for supplies? Ask him  to  find  something  in
his files. How long does it take?

Does he have an orderly collection of references  or  a  library  containing
the materials of his field? Is it organized so as to be usable?

(If he has no system for locating things, have him  set  one  up.  Have  him
establish a filing  system,  a  logging  system,  label  the  comm  baskets,
arrange supplies, etc. Get a reference library set up and  organized.  Drill
using the system he has.)

11.   WHEN HE USES AN ITEM DOES HE PUT IT BACK IN THE SAME PLACE? DOES HE
PUTITBACK WHERE OTHERS CANFIND 177

He'll probably tell you, yes, of course he does. Look  around.  Are  objects
and files lying about? Is the place neat or is it a mess? Ask  him  to  find
you something. Does he know right where it is, or does  he  have  to  search
around? Is there an accumulation of unhandled particles around?

(Have him clay demo why it might be advantageous to put things back  in  the
same place he found them.  Drill  him  on  putting  things  back  when  he's
finished with them. Have him clean up the place, handling  any  accumulation
of unhandled particles.)

12.   IF FEASIBLE, ACTUALLY GO WITH THE PERSON TO HIS PERSONAL LIVING AREA.

Is the bed made? Is the area clean? Are things  put  away?  How  much  dirty
laundry does he have? Is it stowed in a bag or hamper or is it strewn  about
the place? People who had  disorderly  personal  mest,  I  for  I  were  not
getting out any products on post-they had no sense of order.

(If  his  personal  quarters  are  a  mess  have  him-on  his  own  time  of
coursestraighten up his personal area and  keep  it  that  way  on  a  daily
basis. This will teach him what order is.)

HANDLING

Some areas, of course, will be found to be in excellent order and will  pass
the inspection. These will most likely be high production areas.

Other areas will be found to have only a few points out which would  correct
easily with the above handlings. These will probably  be  areas  where  some
production is occurring.

Where personnel have a concept of what order is  and  why  it  is  important
they will usually be eager to correct  the  points  of  disorder  that  have
turned up on the investigation and may need no further urging,  drilling  or
correction, but will quickly set about remedying outpoints. For many  bright
and willing staff members just reading this.policy will  be  enough  to  get
them to straighten out their areas right away.

299



There is, however, a sector which has no concept of order, and may not  have
the slightest notion of why anyone would  bother  with  it.  You  will  most
likly find them in apathy, overwhelm or despair with regard  to  their  post
areas. No matter what they do they simply cannot get their products  out  in
adequate quantity and quality. They try  and  try  and  try  but  everything
seems to be working against them.

When you find such a situation, know that the area is in Confusion. You  are
trying to handle an area which is in a  confirmed,  dedicated  condition  of
Confusion.

Such an area or individual would require the  application  of  the  Expanded
Confusion Formula (HCO PL 9 Feb 74R) including the handlings  above.  So  if
these things confirm in an area you must use the Expanded Confusion  Formula
and the handlings given above to full completion. Because, frankly, such  an
area or individual is in  a  condition  of  Confusion  and  will  remain  in
Confusion until the Expanded Confusion Formula including the full  handlings
from the inspection are applied.

Once out of Confusion the person would have to be  brought  up  through  the
rest of the conditions.

CAUTION

The condition of Confusion is a very  low  condition  and  should  never  be
assigned where it is not warranted. Where one or two  points  on  the  above
inspection were found to be out  in  an  area,  and  where  these  corrected
easily, there would be no purpose in assigning Confusion to  that  area.  In
fact it may worsen an area to assign an incorrect condition.

But where you have a long-term situation of  no  or  few  products  combined
with a state of  disorder,  know  that  the  area  or  individual  is  in  a
condition of Confusion and that the application  of  the  Confusion  Formula
plus the handlings given in this PL will bring the area out of the muck  and
up to square one where it can begin producing.

NOTE: If the inspection is done on a person or area and some of  the  points
are found to be out and handlings are done but no condition of Confusion  is
assigned the area must be reinspected about a week later. This way you  will
detect if an actual condition of Confusion was  missed,  as  the  area  will
have lapsed back into disorderliness or will have worsened.

SUMMARY

A knowledge of the basics of an area and having orderliness in an  area  are
essential to production.

When you find a fellow who is a light year away from the basics and  doesn't
have a clue on the subject of order and  he's  flying  way  up  in  the  sky
someplace instead of just trying to put together what he's supposed  to  put
together or do what he's supposed to do, you've got your finger on  his  Why
for no production.

With the inspection and handlings given in this policy  we  can  now  handle
any degree of disorderliness and disorganization.

And order will reign.

Nonproductive areas become capable of producing.

Already-producing areas increase their production.

And production will roll.

L. RON HUBBARD

Founder

LRH:gal.gm

300



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 27 APRIL 1980

Remimeo

LRH Comm    (Modifies HCO PL 9 May 1974 PROD-ORG,

      Hats  ESTO AND OLDER SYSTEMS RECONCILED)

Esto Hats

Execs

            Establishment Officer Series 41

ESTABLISHMENT OFFICER SYSTEM REVITALIZED

Ref-  HCO PL 7 Mar 72  Esto Series I R

            THE ESTABLISHMENT OFFICER

      HCO PL 14 Jul 72 Esto Series 22

            ESTO FAILURES

The Establishment Officer system, which has  never  fully  gone  in  in  the
past, is hereby revitalized and reconstituted.

It is a well-known fact that a postive way to expand an org is  to  get  the
org on-policy and in-tech. It is the most effective way of guaranteeing  the
expansion of Scientology.

It was the establishment of HCO and strong Department  Ones  which  preceded
the growth and eventual boom of the great orgs in 1973 and 1974 and  it  was
the unmock of HCOs and Department Ones that signaled the later downfall  and
crash of these orgs. Additionally all booms and depressions of  an  org  are
due to its being expertly built up and then, having a  peak  period,  it  is
not maintained in that well-established condition and disintegrates.

The handling for this is the ESTABLISHMENT OFFICER.

KEY TOOL

As the Esto system is a key tool through which the LRH Comm carries out  his
purpose of seeing that the org is established, the LRH Comm ensures that  an
Exec Esto is posted.

The HCO of the org is held responsible for getting the Exec Esto appointed.

EXPANSION

The purpose of the Establishment Officer is to ESTABLISH  and  MAINTAIN  the
establishment of the org and each division therein.

Therefore, the way to expansion is to get the Esto system truly  functioning
and guaranteeing the prosperity of the org.

DEPT ONE

The first duty of an Exec Esto is to put a strong Dept One  there  per  Esto
Series 22 ESTO FAILURES, and the Exec Esto must roll up his sleeves -and  do
the work in Dept One if he is to succeed. The Exec Esto and Estos under  him
should  be  out  in  the  org  actually  working  in  their  divisions   and
coordinating with the execs to back up org production. They are  not  hidden
away behind desks in some ivory tower. They are not the juniors of  the  org
execs. They have project orders,  provided  by  International  Headquarters,
which they follow and in coordination with org execs achieve  their  purpose
of establishment and thus an expanding org.

301



Once the Exec Esto is chosen and on post he must be rapidly  hatted  up  and
drilled on the Esto  Series  and  given  project  orders  to  start  putting
Department One there as per HCO PL 14 Jul 72 ESTO FAILURES. It  is  the  job
of the LRH Comm to ensure the Exec Esto follows his project orders and  does
not get cross-ordered or stopped in his duties of establishing HCO  and  the
org.

All existing Esto tech applies and is valid.

POSITION

The Exec Esto is org boarded in Department 21 in the  "Office  of  the  Exec
Esto" as per HCO PL 7 Mar 72 Esto Series IR THE ESTABLISHMENT OFFICER.  This
does not mean he is in the  LRH  Comm  Network  but  the  LRH  Comm  is  the
administrative  senior  of  the  Exec  Esto.  This  does  not   lessen   the
responsibility of the org and execs for seeing that the Exec  Esto  post  is
covered and the Esto system goes in, nor does it lessen  the  responsibility
of the Exec Esto to work in coordination  with  org  execs  to  achieve  the
needed org establishment.

It is up to the LRH Comm to act as arbitrator  on  any  conflicts  regarding
any Estos' duties and he sees that the  appropriate  policy  reference  from
the Esto Series or Esto tapes is followed.

PRECAUTION

The LRH Comm must not become "flap crossroads" for  personnel  and  any  and
all personnel demands from org terminals are  not  to  be  directed  to  the
Office of the Exec Esto or the LRH Comm. On-policy  personnel  requests  are
routed on standard lines to HCO and handled per policy.  The  LRH  Comm  and
Exec Esto must be allowed to get on with their jobs of establishing HCO  and
the org.

This system properly implemented can take your  org  to  higher  and  higher
levels of expansion and prosperity. It must be put in with a  vengeance  and
not allowed to be unmocked for  ANY  reason.  No  Esto  in  an  org  can  be
transferred or removed or disciplined  without  clearance  of  International
Headquarters and LRH Comms must see that this is rigidly enforced.

SUMMARY

The Esto system fully established will  make  the  true  difference  in  the
establishment of the org and each division therein. And you'll see  the  org
take off to greater and greater heights than ever before.

L. RON HUBBARD

Founder

As assisted by

Msm Barbara Price

LRH Comm International

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:BP:dr.gm

302



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 3 SEPTEMBER 1980

                                   Issue I

Remimeo

      (The contents of this policy have been taken from an LRH

      OODs item of 15 May 71 and are now being issued in policy

      form to bring forth the wealth of data formerly issued in the

      Flag "Orders of the Day.")

Admin Know-How Series 38

Data Series 50

Esto Series 42

Org Series 42

OUT OF SEQUENCE

Out of sequence is the  most  common  outpoint  according  to  a  survey  of
despatches and projects a couple months ago.

The thing which gets most commonly out of sequence is  the  pattern  of  the
Key Ingredients as covered in HCO PL 14 Sept 69.

The correct  sequence  for  a  piece  of  work  would  be  to  plan,  obtain
materials, and then work.

If this is  made  into  work-plan-materials,  everyone  works  hard  but  no
product will result.

As production is what morale depends upon, a smash of morale would occur  if
the Key Ingredients were thrown out of sequence.

Omitted data runs a close second to out  of  sequence  as  the  most  common
outpoint.

When the sequence of a work  project  is  thrown  out  and  then  data  like
technology of how to do it is omitted, a group could  work  itself  half  to
death and have down morale as well from no product.

The right way to go about it is to have the tech of a job, plan it, get  the
materials. and then do it. This we call organizing.

When this sequence is not followed, we have what  we  call  cope.  Too  much
cope will eventually break morale. One  copes  while  he  organizes.  If  he
copes too long without organizing he will get a dwindling or no product.  If
he organizes only he will get no product.

Coping while organizing will bit by bit get the line and  action  straighter
and straighter and with less work you get more product.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY BDCS:LRH:SA:bk.nf , 1980


[Note: The original mirneo copies of this policy letter incorrectly  labeled
it as "Admin Know-How 36" which has been corrected above.]

303



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 22 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                             of 23 August 1972)

Esto Series 43

Org Series 48

ACTIVITY

We are in the midst of a great deal of activity.

This means a certain amount of disestablishment occurs.

Such times are the times when Dept I has to go FLAT-OUT.

It has to actually produce.

It has to get new people in, org boards revised, hats collected, people on
new posts HATTED!

It has to somehow hold the form of the org and keep it producing.

This is no time for Dept I people to sit at a desk doing their in-baskets
all day or studying.

This is the time when the org form situation is continually reviewed and
beefed up and hatted.

A hat is NOT an explanation. It is a checksheet and pack and it gets DONE
right now.

This is the time when you make up for fewer numbers with better
utilization. And you make up for increased traffic with greater efficiency
on each individual post.

Esto trainees who don't know or can't do these things won't be worth
anything in their own orgs.

The question is, can they do it or can't they9

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

304



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                              of 8 March 1971)

                                Org Series 43

                               Esto Series 44

ORG OFFICER

Org Officers think they approach HASes to organize. They don't.

HCO has not formed because Org Officers keep making demands  on  it  instead
of doing their job. The organization it takes to get out a specific  product
is instant stuff. HCO is a long-term build of  the  establishment.  Entering
instant organization into HCO of course defeats its  purposes  and  prevents
it from the long-haul actions necessary to form a whole org.

If an Org Officer considered himself  the  Product  Officer's  expeditor  he
would begin to get the idea.

We have a Product Officer/Org Officer mission going in  to  expedite  FEBCs.
The Product Officer will get the product-a competent graduated  FEBC  on  an
airplane going home-being made and fired. The  Org  Officer  will  push  the
materiel and lines into shape to back up the Product  Officer.  Now,  what's
that have to do with HCO? Nothing.

The Org Officer makes sure there is a pack or tape or recorder or gets  them
(not by despatch) and the Product  Officer  checks  out,  verifies,  grooms,
solves FEBC problems, pushes cases.

The Course Super goes on supervising, Course Admin goes  on  admining.  What
they're doing right with the student gets pushed and done more of. And  what
organization there is gets more of from the Org Officer.

For instance,

SITUATION: Course numbers building up. You see this in orgs.

HANDLING: Put on a Prod-Org mission to get numbers completed and fired.

The Prod-Org team finds 3 who could be made ready to fire  at  first  glance
and gives the order GO-GO-GO, to Action.

The personal cope was fire three NOW. The medium-range was get a mission  on
it.

That is uptight production.

A Prod-Org team works in hours and days. Save an hour, save a day. Do it  in
hours, do it in days.

By doing it they learn line and materiel outnesses and their reform CSWs  of
lines and actions are written up when they're  completed  and  that's  their
first contact with the HAS and HCO.

305



Now with these reforms the general org action will be easier and faster and
a product backlog peak won't occur so fast again.

A Prod-Org team that writes despatches and harasses HCO just doesn't know
THAT THE PROD-ORG SYSTEM IS TO HANDLE BACKLOGS AND OMISSIONS IN PRODUCTS.
Having handled they can advise or order or get approval for line changes
and new recruitment, etc. These, the HAS can get in for the long haul.

Prod-Orgs WORK, they don't just order.

L. RON HUBBARD

Founder

Compiled and edited for issue by Sherry Anderson Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

306



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 18 SEPTEMBER 1980

                                  Issue III

Remimeo

                          (Originally LRH OODs item

                               of 24 Feb 1970)

Esto Series 45

ESTOs

An Esto has a definite job to do. He is not part of  the  division's  lines.
He hats, organizes, trains,  sets  up  files,  lines,  and  does  all  those
establishment actions  people  need  to  really  establish  a  division  and
maintain it.

If you want an Esto to go into gales of laughter, say "I am too busy to  get
hatted." Those papers and that enmest show that a 2 hours of hatting  a  day
save a year of dev-t nonproduction.

HCO over the world could not establish orgs.  It  can  do  its  departmental
functions. The answer is the Esto.

You'll be seeing a lot of this. Might as well know who these strange  people
are who keep insisting you find out about comm baskets and things.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm , 1980

307



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 21 SEPTEMBER 1980

                                  Issue VI

Remimeo

                          (Originally LRH OODs item

                              of I I June 1972)

Admin Know-How Series 40

Esto Series 46

PRODUCT OFFICERS

Worked last evening getting Tech to start shooting them through to
completions.

The P/L on Selling and Delivering Auditing (HCO PL 28  Sept  71)  tells  why
you have to audit a pc all at once whole program.  Dribbling  it  out  means
repairs due to life upsets before the guy made it.

So crowd it on and get a pc through. Then we'll have some products for our
coins.

A Product Officer has to name, want and get his products.

This means one says, "You there. Joe Blow. Want  him  completed.  All  right
get it DONE." Product by product. There is no  general  "Audit  these  pcs."
"Get up the hours." Hell, you never get a product that way.

      "You there, George Thunderbird. I want you through your Primary and
onto and

through course and classified. Get going, man, get going. Oh, you were told
to weedle

the toofle before you woofled by Dorance Doppler. Org Officer? Get that
name-to

F/MAA, get the cross orders the hell off my lines. Now you George
Thunderbird, I

want you through your Primary and onto and through course by I July. You
got it?

You got it now! Good. Well, get with it. Get going!" Note on clipboard: Org
Off to get

cross order by Dorance Doppler invest and report. "There's your slip." Note
on

progress bd. Geo Thunderbird HSDA I Jul. Now you Tobler Tomias, what's the
tale;

how are you going? . . . Well standing there smoking and looking at the
scenery isn't

going to do anything. If your girl doesn't like you anymore the thing to do
is drown

your sorrows in the Primary RD. . . . Okay you are to be an Exp Dn. All
right, that's

fine. I want you completed by 16 July. . . . I don't care if that's a 16-
hour day. Let's

see, Primary RD by - and Class IV Acad by - and _. Yes that's

16 July AT NOON. Man to hell with your PTPs. Get going, man." And on the
progress

board. And from the board - "And here's Bill Coal, he should be off the
Primary

today, where is he. All right Bill-ah, you made it that far. Now you're on
schedule.

That's great. HSDA. Get with it, man. You completed Primary 20 minutes ago
and

aren't on the next course. Super!* What the  .55

That's the way it goes for a Tech Prod Off. "We are  finishing  Agnes,  Trop
and Goshwiler today. Today. Yes today. Certified and off lines. Got it D  of
T? Well, do it!"

Push, debug, drive. Name it, want it, get it.

That's the only way you ever get a product.

Sad but true.

308



They don't ever happen by themselves.

      And all the public relations chatter in the world is not a product. I
know this

Product Officer beat-

It's a piece of cake.

But it has to be DONE.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm , 1980

*Supervisor

[Note: The original mitneo copies of this policy letter incorrectly labeled
it as "Admin KnowHow 38" which has been corrected in this issue.]

309



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 6 OCTOBER 1980

                                  Issue III

Remimeo

                          (Originally LRH OODs item

                              of 24 June 1972)

Personnel Series 35

Esto Series 47

POSTING

I am finding that persons not grooved in on new posts before being asked to
act have a high confusion level which is hard on the area. Estos should
groove people in hard on the duties and existing scene and if the person is
too confused or out-ethics, alert HCO and not place them.

A person needs a day or two to find his feet on the new ground before
acting or he'll be nervous and uncertain.

We want certain and competent people on post

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

310



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 17 OCTOBER 1980

Remimeo     Issue 11

                          (Originally LRH OODs item

                            of 8 September 1971)

Exec Series 28

Esto Series 48

INSTABILITY

You will find that persons who are having a rough time or giving others  one
are either just leaving or haven't arrived on the post. In other words  they
in some way are not actually ON post.

It is also an oddity that those who have to go to point  B  haven't  arrived
ever at point A in order to be able to leave for B.

The ability to BE something strongly shows  up  in  post  performances.  The
real stars can BE anything wholly and completely for short or long  periods.
They ARE what they are being. They aren't just arriving or leaving.

To BE OR UnBe, that is the ability! To not quite be or to WAS is the
aberration.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

311



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 30 OCTOBER 1980

Remimeo     Issue 11

      (Originally LRH OODs item of 22 June 1974.)

      Exec Series 30

      Esto Series 49

      TECH

Every action that results in a product has a certain tech.

One finds out about it or develops it.

When one adopts false tech he will then wind  up  with  confusion  as  false
tech will not deliver a product. It delivers a confusion-like psychiatry.

The more false tech you hold onto or apply the more confusions you will
get.

When real tech is invalidated then false tech can enter in. So the  test  of
false tech is does it give a confusion and the test of real tech is does  it
give a product.

A Mis-U word in real tech then can let false tech in.

If the tech is not available for a certain job one then has to  develop  it.
His development will be correct only if it delivers a real product.

When one busily develops tech  where  proven  tech  already  exists  and  is
available, one is wasting his time.

Technology is that part of knowledge that is used.

So it is not enough just to know. One also has to apply.

If one really knows his tech it is very  easy  to  apply  it.  When  one  is
uncertain. his application is uncertain.

Life in living forms depends upon real products.

When products take too long to bring about or  when  they  turn  out  to  be
overt products then they are not economical to produce.  Overdue  and  overt
products are both very costly in time and catastrophes.

If you find in any area you are taking too long to produce a  product,  then
it's time to review your tech. (A) Does  tech  exist?  (B)  If  yes,  "Am  I
applying it?" (C) If no, "Do I have to develop it?"

If it is (C), then one had better get  very  busy  sorting  it  out.  It  is
easier and less expensive to do  that  than  to  go  on  turning  out  overt
products.

Any product has its tech.

Do you know the tech to produce yours?

(Note: Also see HCO PL 23 August 1979, Issues  I  and  11,  DEBUG  TECH  and
DEBUG TECH CHECKLIST.)

L. RON HUBBARD Founder Compiled and issued by Sherry Anderson Compilations
Missionaire Accepted by the BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY
OF CALIFORNIA

BDCSC:LRH:SA:nc.gm , 1980

312



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 21 SEPTEMBER 1980

                                 Issue VIII

Remirneo

                          (Originally LRH OODs item

                               of 14 May 1972)

Exec Series 22

Esto Series 50

MORALE

Production is the basis of morale.

      If one can get a unit producing and actually accomplishing worthwhile
production,

then their morale will rise.      I

Thus, it does not matter too much how one starts a unit  producing  so  long
as it does get started.

I was given a good example of this with just one person who has been  on  MO
lines. She is actually well now. She is miserable. There  is  nothing  wrong
with her at all except she is  out  of  the  action  and  is  not  producing
anything.

This has been noted in other fields. The "idle rich" are the most  miserable
people you ever wanted to meet. "To Have and Have Not" or  some  such  title
by Hemingway talks about it for the best part of a book.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

[Note: The original mimeo copies of this policy letter incorrectly labeled
it as "Esto Series 41" which has been corrected above.]

313



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 3 NOVEMBER 1980

                                  Issue IV

Remimeo

                        (Originally LRH OODs items of

                    26 February 1971 and 24 August 1970.)

Org Series 61

Esto Series 51

DRILLS

Drills have several purposes. To groove in a team action is a principal
one. To test a system fully. To groove in lines.

Whenever postings are changed, the new post holders have to be grooved in
on their posts (hatted and on-post trained) and then the team. itself must
be drilled.

The two steps are always needed.

There's a maxim about all training that applies. It is this: TRAINING MUST
INCLUDE ALL THE ACTIONS AND APPROXIMATIONS OF THE ACTUAL.

This includes of course the whole cycle of an actual sequence of actions.
It's the sequence that counts.

The drilling of sequences of actions is a stable series of data that
prevents chaos from overwhelming one.

This applies to org lines as well. Dummy runs and dummy bullbait runs serve
as the drill.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARD OF DIRECTORS

of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:SA:dr.gm , 1971, 1980



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 4 MARCH 1981

Remimeo

                        (Originally taken from an ED

                          issued to a special film

                          project dated 15 January

                                   1979.)

(Amended to remove technical terms.)

Establishment Officer Series 52

MISTAKES

It isn't making mistakes that is actionable, it is  failing  to  learn  from
them and repeating them.

Four people recently taken out of a special unit of a  filming  project  not
only couldn't apply tech standardly on which  they  were  fully  hatted  but
also couldn't learn from their mistakes. As a consequence their redone  work
contained the same mistakes that were originally made.

A new piece of Esto tech has come into view,  those  who  cannot  be  hatted
also don't learn from their own mistakes  and  where  you  have  this  in  a
production unit it is better to replace the person rather than just hope.

L. RON HUBBARD

Founder

Assisted and amended by the Sea Org Lieutenant Council's Issue Project

Accepted by the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:LCIP:nc.gm , 1981

315



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 13 SEPTEMBER 1970

Remimeo     Issue 11

.Exec Dir Hat

HES Hat     Org Series I

HAS Hat

      BASIC ORGANIZATION

What is organization?

Most people have so many associated ideas with the word "organization" that
they think of one as an identity or a being, not as a dynamic activity.

Let's see what one really is.

Let us take a pile of red, white and blue beads. Let's organize them.

Now let us draw the org board.

Let us dump them all on top of in-charge, all mixed up in a confusion.

Obviously in-charge must route them to dig himself out. So we get

In-Charge

Red   White Blue

Beads Beads Beads

Thus we find out much of what an in-charge does. He routes. He separates
into types or classes of thing or action.

This so far is a motionless org.

We have to have products. Let's say its products are drilled beads, strung
beads, boxed beads.

We would get

,_--Red     - Driller - Stringer - Polisher

In-Charge   White - Driller - Stringer - Polisher

J:~:~Rlile  Driller - Stringer - Polisher

Or we would get

___~-Red

In-Charg    White~"~ Driller - Stringer      Pol

Blue

Or we would get

In-Charge

Bead  Bead  Bead Bead

Separation  Drilling   Stringing  Polishing

316



It is not particularly important which pattern of org board we use  so  long
as it handles the volume of beads.

If we only have I person in this "org" he would  still  have  to  have  some
idea of organization and a sort of org board.

If we have any volume to handle we have  to  add  people.  If  we  add  them
without an org board we will also add confusion.  The  organization  without
an org board will break down by  overload  and  cross  flows  and  currents.
These in conflict become confusion.

All a confusion is is unpatterned flow. The particles  collide,  bounce  off
each other and stay IN the area. Thus there is  no  product  as  to  have  a
product something must flow OUT.

We can now note two things. We have some stable items. These  are  posts  or
locations. And we have flow items. There are things undergoing change.

So an org's positions change flowing particles.

Particles flow in sequence.

Things enter an org, get changed, flow out of an org.

An org with one type of item only (red beads) is less complex than one  with
several types of items.

In-Charge

      Red   Red  Red   Red

      Clay  Bead Bead  Bead

      Procurer   Molder     Boxer Shipper

Any activity has a sequence of actions. It has to have stable  points  which
do not flow in order to handle things which do flow.

It is not necessary to have a stable terminal do only one thing. But  if  so
then it also has a correct sequence of actions.

All this is true of an engine room or a lawyer's office or any
organization.

In an engine room fuel flows in and is changed to motion  which  flows  out.
Somebody runs the machines. Somebody repairs the machines.  It  may  all  be
done by one person but as soon as volume goes up one has  to  plan  out  the
actions, classify them and put them on an org board which the  people  there
know and abide by or the place will not operate well.

This is done by dividing operation and repair into two actions,  making  two
activities on the same org board.

Chief E I ngineer

      Stores     Repair     Motormen

      and   Crew Watches

      Fuel

The Chief keeps the flows going and the terminals performing their actions.

317



In a lawyer's office we get different actions as a flow.

Head of Firm

            -7

Ambulance   Case            Court

Contactor   Preparation     Appearance

would be a flow pattern, possibly with a different person (with a different
skill) on each point.

Or we could have a sort of motionless org board.

Head of Firm

Crimina     Corporate  Trust

Clients     Clients    Dept.

But if we did that we would have to put the motion in vertically so that
flow would

occur.

Head of Firm

      Criminal   Corporate  Trust

      Dept. Dept.      Dept.

      I     I    I

      Contacts & Contacts & Contacts

      Interviews Interviews Inves I tment

      I     I

      Case  Preparations

      Preparation      I    Vaults

      I     Services

      Court

      Appearances

Org boards which only give terminals usually will not flow.

A typical army org board of yesteryear was

                                   General

                                      I

                                  Offi cers

Army

When they got into a lot more men they had to have a flow board.

General

Recruits    Equipment  Training   Army       Operations

318



So one organizes by

1. Surveying the types of particles.

2. Working out the changes desired for each to make a product.

3. Posting the terminals who will do the  changing  along  the  sequence  of
changes.

The board also must include a recognition of the types  in  1  which  routes
the types to the terminals who change them and to a further routing  out  as
products.

To be  practical  an  org  board  must  also  provide  for  pulling  in  the
materials, disposing of the product and being paid for the cycle  of  action
and its supervision.

A company has various actions.

It is essentially a collection of  small  org  boards  combined  to  operate
together as a large org board.

The basic principles you have to know to organize anything are contained  in
this policy letter.

To plan out any action one has to be  able  to  visualize  its  sequence  of
flows and the changes that occur at each point. One has to be  able  to  see
where a particle (paper, body, money) comes in and where it leaves.

One has to be able to spot any point it will halt and mend that part of  the
flow or handle it.

A proper org board is a perpetual combination of flows which do not  collide
with one another and which do enter and do  experience  the  desired  change
and which do leave as a product.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

[Note: The first line in paragraph 2 on this page which originally read,
"recognition of the types in A" has been corrected to read, "recognition of
the types in I".]

319



EN07-

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 SEPTEMBER 1970

Remimeo

Exec Dir Hat

HES Hat

HAS Hat

Executive Hat

Org Series 2

COPE AND ORGANIZE

It's perfectly all right to cope. One always must.

But one MUST organize things while he copes.

The mounting overload and overwhelm in an area  comes  entirely  from  cope-
copecope without organizing also.

Example: You have  to  handle  something  for  which  there  is  no  planned
organization. Like a mob at a congress. You can cope. But if you don't  take
the first available instant to grab 3 guys and  give  them  specific  duties
right then to mind doors and tickets it all just gets worse  and  worse  and
the cope catches up as overwhelm.

Any old org bd is better than no org bd at all.

A good org bd well grooved in, duties well apportioned,  permits  things  to
smooth out and increase in volume without strain.

In a flood if you can channel the water, you can handle the  flood.  If  you
just batter at water you drown.

ORGANIZATIONAL GENIUS IS COMPOSED ONLY OF ARRANGING SEQUENCES OF ACTION  AND
DESIGNATING CHANNELS FOR TYPES OF PARTICLES. THAT'S ALL IT IS.

Then you can handle flows and prevent stops.

So you must always organize as you cope.

National riots are just the inability of leaders  to  arrange  sequences  of
action and designate channels for types of particles.

One area which was never  organized  became  just  an  anthill  of  do-less,
useless motion.

If your in-basket is too high you cope  and  handle  it  AND  ORGANIZE  YOUR
LINES for the future.

      "I'm absolutely drowning    is the same as saying "I can't organize
worth a

damn!"

ORG BD

Every exec has his own personal org bd. Really it's at least 21 depts.

But you don't have to go that fancy.

320



I had an org bd once that was 8 folders, each representing  traffic  from  a
major org, reports placed in it latest on top, a communicator  who  did  the
placing, a greeter who handled bodies and an inspector  that  was  me.  Just
myself and one other. But it was an org. With that "org bd"  I  handled  all
the Scientology in the world at that  time,  lectured,  researched  and  had
ample time left over. It reduced full-time cope to a  part-time  job.  Later
100 staff members (WW) replaced me as Exec Dir and I moved  off  post.  They
were all very busy but they didn't even know they had an org  bd  they  were
on, no  individual  operated  his  own  personal  org  bd.  Their  cope  and
ignorance took the stats right on down. But they sure were busy coping!

The antithesis  (opposite)  of  an  org  bd  is  confusion.  The  amount  of
confusion present doesn't add up to production, even though  it  is  totally
exhausting. The end product one wants  is  not  exhaustion.  The  amount  of
energy expended does  not  measure  production.  Production  is  solely  the
amount of completed  cycles  that  occur.  The  more  they  are  planned  in
sequence  and  the  better  the  different  types  are  channeled  the  more
production will occur.

So cope by all means but don't forget to organize a  little  each  time  you
get a chance.

The end product of cope is drown.

The end product of organize is freedom.

L. RON HUBBARD

Founder

LRH:rr.cden.gm Copyright cl 1970

321



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 14 SEPTEMBER 1970

                                  Issue 11

Remimeo

Exec Dir Hat

HES Hat

HAS Hat

Org Series 3

URGENT

HOW TO ORGANIZE AN ORG

Let us assume that you have an org to run (or any part thereof).

How would you organize it and get it to function?

1.    You would count up and name the different vital actions necessary to
functioning.

2.    You would count up the persons needed for each function and give them
the post names.

3.    You would do a checksheet for each post to include its vital data.

4.    You would collect the material of each checksheet into a pack.

5.    You would recruit the minimal number to begin it, keeping in mind
finance and solving that.

6.    You would show one of them how to check the others out to get them
trained.

7.    You would then get the org running.

8.    You would expand it by single hatting vital posts.

9.    All the while you would cope with things as they came up.

10.   You would add to checksheets and packs things learned while
operating.

11.   You would add posts as they were found needful.

12.   You would never drop out the actions of recruiting, checksheets,
packs and training.

Naturally the org would have to have a function that was valuable and  would
have to execute it or produce and be paid or it would not  be  viable  (able
to live).

All right. All that seems straightforward enough.

Now let's see how it could go wrong.

Foremost would be a failure to function or produce  and  a  failure  to  get
paid for it. This  would  cripple  the  activity  and  bring  in  inadequate
operating funds, curtailing facilities and pay and  making  it  undermanned,
hurting its image and shutting off recruitment.

322



Recruiting to fill a new function could be incorrectly (destructively)  done
by using the production area as the  recruitment  pool.  Also  each  time  a
portion was operating well, it could be  used  as  a  recruitment  pool  and
emptied out and unmocked. This would destroy all training effort and  injure
the viability and reverse organization back to cope.

Or no recruitment could be done at all.

There could be no checksheets or packs.

There could be no training done even when checksheets and packs existed.

The checksheets or packs could be too short or unreal for the post. Or  they
could be too long or relate to another post.

The head of the org could fail to check out the heads of portions.

The heads of portions could fail to get their juniors hatted and checked
out.

The org staff could be unaware of their belonging to the org and be  unaware
of its purpose and general products.

The problems as listed above could  remain  obscured  and  ethics  could  be
substituted as an effort to get up production.

There are ten basic points that could go out. These are (1)  recruiting  (2)
training (3) training on post (4) utilization (5) production  (6)  promotion
of product (7) sale of product (8) finance (9) justice (10) morale.

It is assumed that the activity is worthwhile and the  potential  production
valuable. Given  that,  the  remaining  ten  points  are  the  points  where
organization breaks down as these  areas  are  the  most  aberrated  in  the
society.

The fundamental outnesses, however, would be failure  to  recruit,  to  have
checksheets and packs for each post, get training done on them and have  new
people on post serve on it in-training.

Let us suppose the head of an org or division never checked any  junior  out
on anything.

Looking at standard functions, everyone would be posting and routing  people
except Dept 1, intended for that. Everyone would  be  handling  comm  except
Dept 2, intended for that. Everyone would be inspecting and  handling  stats
except Dept 3. And so  on  down  the  line.  The  place  would  be  a  dog's
breakfast of total cope.

All right, let us say one does have a dog's breakfast  instead  of  an  org.
How would one straighten it out?

One would cope to maintain some semblance of viability.

One would throw together an org board and post it and drill people on it.

One would throw together hats and get them worn.

One would continue to cope but now also force others to help the coping  and
cope themselves as sernispecialists on their own posts.

Finally one would get checksheets and packs together for each post  covering
all its actions.

One would then get these checksheets and their packs  trained  on  for  each
post fully,

323



Thereafter one would insist  that  executives  made  sure  theirjuniors  had
checksheets and packs as their hats.

And one would continue  to  recruit  as  by  this  time  the  org  would  be
expanding and it would become upset by undermanning and go down hill again.

One would watch the ten aberrated points as they go out very easily.

People gather up all sorts of weird  solutions  to  running  a  disorganized
org. "We need more experienced people";  "We  can't  produce  so  should  be
subsidized," are two common ones.

When people on post do NOT have grooved-in hats they do  goofy  things.  The
goofiness is not confined just to their job  functions.  Lacking  a  purpose
and not conceiving the org purpose they can go utterly astray and do  things
that are quite mad. Like tearing  things  up.  Like  breaking  things.  Like
getting involved in goofy relationships.

You can detect an org where posts are  not  grooved  in  by  the  number  of
oddball things happening.

The way to put this sort of situation right is to start organizing as  given
in this rundown.

Working on organization as you cope, it will eventually make it come out
right.

When it sags just come back to this rundown and it will all straighten out
again.

L. RON HUBBARD

Founder

LRH:rr.eden.gm Copyrightc 1970

324



HUBBARD COMMUNICATIW

      Saint Hill Manor, East Grinstea

HCO POLICY LETTER OF 22 SEP

Remirneo

Exec Hats

Personnel Hats

Ethics Hats Personnel Series 9

Org Series 4

AN URGENT IMPORTANTAND STARRATE PL

HATS

HAT-A term used to  describe  the  write-ups,  checksheets  and  packs  that
outline the purposes, know-how and duties of a post. It  exists  in  folders
and packs and is trained-in on the person on the post.

HAT TECHNOLOGY

"Hats" developed in 1950 for use in Dianetic orgs as a  special  technology.
The term and idea of "a hat" comes from conductors or locomotive  engineers,
etc., each of whom wears a distinctive and different  type  of  headgear.  A
"hat" therefore designates particular status and duties in an organization.

A "hat" is a specialty. It handles or controls certain particles in  various
actions and receives, changes and routes them.

A "hat" designates what terminal in  the  organization  is  represented  and
what the terminal handles and what flows the terminal directs.

Every hat has a product.

The product can be represented as a statistic.

Any job or position in the world could have its own hat. The  reason  things
do not run well in a life, an org, a  group,  nation  or  the  world  is  an
absence of hats.

The reason why an org runs well when it does is hats.

Any protest of anyone against things not running  right  can  be  traced  to
lack of hats.

Any slump an org goes through can be traced  directly  and  at  once  to  an
absence of one or more hats being worn.

HAT CONTENT

A hat must contain

A.    A purpose of the post.

B.    Its relative position on the org bd.

C.    A write-up of the post (done usually by people who have held it
before relief and when so done it has no further authority than advice).

D.    A checksheet of all the policy letters, bulletins, advices, manuals,
books and drills applicable to the post. (As in a course checksheet.)

325



E.    A full pack of the written materials plus tapes of the checksheet
plus any manuals of equipment or books.

F.    A copy of the org bd of the portion of the org to which the post
belongs.

G.    A flow chart showing what particles are received by the post and what
changes the post is expected to make in them and to where the post routes
them.

H.    The product of the post.

1.    The statistic of the post, the statistic of the section, the
statistic of the department and division to which the post belongs.

STAFF HAT

There is also a general staff hat.

This hat contains

(a)   The overall purpose of the org, its aims, goals and products.

(b)   The privileges or rewards of a staff member such as auditing,
training on post, general training availability, pay, vacations or leave,
etc.

(c)   The penalties involved in nonproduction or abuse of post privileges
or misuse of the post contracts.

(d)   The public relations responsibilities of a staff member.

(e)   The interpersonal relations amongst staff members including courtesy,
cleanliness, attitudes to seniors and juniors, office etiquette, etc.

(f)   The mest of posts generally, its papers, despatches, files,
equipment.

(g)   The comm and transport system of the org.

GRADIENT SCALE OF HATS

A "gradient scale" means "a  gradual  increasing  degree  of  something."  A
nongradient scale would be telling someone to enter a skyscraper by  a  32nd
story window.

Thus there is a gradient scale of organizing.

A key to this is found in Problems of Work's theory  of  confusion  and  the
stable datum.

One in actual practice has to cope while organizing.

COPE means to handle whatever comes up. In the dictionary it means "to  deal
successfully with a difficult situation." We use it to mean "to  handle  any
old way whatever comes up, to handle it successfully and somehow."

IF YOU REMAIN IN COPE, THE DEMAND TO COPE INCREASES.

In that you have the key to "exhausted executives"  or  staff  members.  You
have why the President of the US ages about 20 years in one term  of  office
as you can see by comparing dated photographs  of  past  presidents.  He  is
totally on cope. His government has an org board that looks like a  pile  of
jackstraws. He  has  no  hat.  His  staff  have.  no  hats.  His  government
departments have no hat.  The  technologies  of  economics,  law,  business,
politics, welfare, warfare, diplomacy, have been lost or neglected (they  do
Axist to some extent).

326



The guy is on total cope. And the post has been on total cope since  it  was
created as an afterthought by the Constitutional  Congress  that  began  the
post in the 18th century. Even what it says in US civics  textbooks  is  not
found in practice.

So "difficult situations" are the order  of  the  day  and  are  handled  by
special actions and appointments.

The people who should handle them haven't got real hats.

This is all catching up with the country at this writing to  such  a  degree
that the citizen cannot benefit from a stable society or social  order.  The
country looks more like a war of insurgency.

In other words departures from hats has lead  into  total  cope  and  it  is
steadily worsening.

Any organization put in by one political party is knocked out  by  the  next
incumbent and who could totally organize a country in four years? (The  term
of a president.)

Yet it is hanging together some way and some way meeting increasing  demands
and pressures.

I have stated this in a large example so that it can be seen in a smaller
unit.

To handle this one would first have to want to straighten it  out  and  then
assemble the tech of admin to straighten it out. And then one would have  to
begin on a gradient scale of org bd and hats.

A cope sort of hat would be tossed off orders to some other people on  staff
who have some title of some sort.

Along with this would be a posted org bd that has little to do  with  duties
actually performed and used by a staff that doesn't know what it is.

One begins to move out of cope (as given in other series) by putting an  org
board together that labels posts and duties and getting people  on  them  to
handle the types of particles (bodies, mailings) of the org.

The next action would be brief write-ups of the posts and their  duties  and
checking people out on them.

Actually if you only got to the middle of the last  paragraph  with  an  org
the executives would remain in cope. So much know-how would  be  missing  in
the org's staff that every rough bit would shoot up  to  the  executive  for
special handling and that is cope.

Hats only in this far is not good enough as it still takes a genius to run
the place.

The next gradient scale is to get the hat to contain

(i) The post write-up itself

(ii) The theory and practical necessary to run it.

This is done by a preparation of checksheets of data and a pack matching  it
for key posts.

Naturally the org bd now has to  become  more  real  and  staff  has  to  be
checked out on it.

Then hats as post checksheets and packs are extended to the rest of the
staff.

327



The mechanisms of training have to exist by this time.

Seniors have to be made responsible that every junior below them has  a  hat
consisting of write-up, checksheet and pack.

Meanwhile one continues to cope.

Gradually, gradually staff begin to know (through checkouts) their hats.

New staff coming on are grooved in better.

Cope begins to diminish and the organization tends to smooth out.

Here and there competent handlings begin to show up brightly.

Now we find a new situation. With  everyone  throwing  together  checksheets
and packs for staffs we find nonstandard checksheets. Some messenger has  to
do the full checksheet of the HCO Division pages and  pages  long.  The  HCO
Sec has a checksheet with just 10 items on it.

So a central authority has to standardize post checksheets  and  survey  and
put in overlooked bits of data.

But that is way up the line. The org long since has become smooth and
prosperous.

So that is the gradient scale of getting in hats.

EXPERTS

Here and there you find an area of special expertise in  an  org  where  the
expertise is so expert in itself that it obscures the fact that  the  person
does not also have a full post hat.

A lawyer would be a case in point. It takes so long to  learn  law  in  some
law school that an org executive can overlook the fact that the post hat  is
missing. Org policy on legal matters and staff hat remain  unknown  to  this
legal post AND JAM IT UTTERLY, This came to light when  a  whole  series  of
cases was being neglected because  the  legal  staff  member,  an  excellent
lawyer, did not know how to make out a purchase order or that one  could  or
should. Investigation found no post or staff hat. Only a legal degree.

Orgs continually do this  with  auditors.  They  are  technical  experts  in
auditing. So they get assigned to posts in the HGC  WITH  NO  HAT.  Backlogs
occur, things goof up. Tech fails. All because it is  overlooked  that  they
are PART OF AN ORG and need staff and post hats and need to  be  trained  on
them.

Worse than that, a highly classed auditor is often  put  on  an  admin  post
without hat or training for it.

You would not take an admin trained  person  and  without  further  training
tell him to audit. So why take an auditor and tell him to  handle  an  admin
division?

Without his post write-up, checksheet and pack  FOR  THE  POST  and  without
training on it, the person just isn't qualified for it no matter what  other
line he is expert in.

It is great to have an  expert  who  has  been  specially  trained  in  some
profession. But lawyer, engineer or public relations, he must have  his  hat
for the org post and be trained on  it  or  he  will  goof!  Yet  one  won't
suspect why that area is goofing because "he's a Class VI isn't he?"

328



UTILIZATION

Personnel can recruit madly, answering every frantic  demand  for  personnel
and yet HAVE THEM ALL WASTED for lack of full  hats  and  full  training  on
those hats.

An investigation of blows (desertions)  from  orgs  shows  that  lack  of  a
grooved-in hat was at the bottom of it.

People come on a job. It is at once a great  mystery  or  an  assumption  of
total know-one or the other.

Either one continued leads them into a state of liability to the org.

People who don't know what they are doing and people  who  don't  but  think
they do are both NONUTILIZED PERSONNEL.

Pay and prosperity for the rest of the staff will go down unless this is
remedied.

The whole org can sag and even vanish under these conditions.

So Personnel has a vested interest in hats being complete and staff  trained
on them. For Personnel people cannot possibly cope with  "no  pay  so  can't
hire anyone" and "no people so can't produce."

The answer is H-A-T-S.

And a hat is a write-up, a checksheet and a pack.

And the staff member trained on them.

ETHICS

When a person has no hat he lacks purpose and value,

When he has no purpose and value he not only goofs, he will commit crimes,

It is apparently easier to hit with ethics than to program and give  someone
a full hat and get him trained on it.

Police action is not a substitute for having purpose and value.

This is so fundamental that one can even trace the unrest  of  a  nation  to
lack of purpose and value. A  huge  welfare  program  guarantees  crime  and
revolt because it gives handouts, not hats.

Even a field Scientologist should have a hat.

By doing only this over  the  world  we  would  own  the  planet  as  in  an
expanding population, individual purpose and value are the  most  vital  and
wanted commodities,

If there are no real hats there will soon be no money of any value and no
bread!

SUMMARY

ANY HAT IS BETTER THAN NO HAT according to the way a thetan seems to think.

But be that as it may, the downfall of any org can be  traced  directly  and
instantly to no recruiting or no org board, no hats or  unreal  hats  or  no
training on hats.

The sag of an org can be traced  directly  to  lack  of  hats  and  lack  of
training on hats.

329



The overload of any post can be traced directly to lack of  an  org  bd  and
lack of hats and no training on hats.

The way out is to organize the org board and hats while you cope.

If you do not your cope will become an overwhelm.  If  you  do  your  burden
will lighten and your prosperity increase.

It took 13 months of hard work and 20  years  of  org  experience  to  learn
that, given a product, lack of HATS was  the  WHY  of  departures  from  the
ideal scene and that working toward providing full  complete  HATS  was  the
way to get back toward the ideal scene.

L. RON HUBBARD

Founder

LRH:sb.cden.ts.gm

330



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 26 SEPTEMBER 1970

                                  Issue III

Remimeo Executive Hats

Org Series 5

ORG BD CUTATIVES

The most serious blunder in re-doing org boards is losing past functions
off them.

"Cutative" is an invented word to mean the impulse to shorten or leave out
or the thing left out.

THE RULE IS: ANY MAJOR FUNCTION, ACTION OR POST LEFT OFF AN ORG BOARD WILL
WRAP ITSELF AROUND THE IN-CHARGE LIKE A HIDDEN MENACE.

As the function is not expressed it is not recognized. But it forces itself
upward and can swamp an activity if not done.

Thus we get the laws:

1. Activity functions must all be expressed on the org board.

2. All functions below a personnel on an org bd are the responsibility of
that personnel, no matter what size the staff may be.

3. Functions omitted will act as invisible overloads.

EVOLUTION OF ORG BDs

Usually the first org board ever done for an activity is a dream up. It is
seldom real but better than no org bd at all.

Experience then refines it.

Some functions on it are not related to it, are unreal.

Some functions not on it rise up to haunt and overload the in-charge.

Actions done by an executive that are not on the org board in departments
get posted like small flags opposite the executive's name. (Like legal, VIP
greeting, etc.)

After a while these little flags are too many.

A reorganization occurs and the flags are put down into departmental
functions. This gets them off the executive's neck and gets them manned up.

So far so good. Now what happens is a catastrophe. A new executive who has
no experience with this org bd DREAMS UP A NEW ONE. This is out of sequence
in evolution. He is treating the place as though it had NO org bd simply
because he doesn't know the existing board.

This gives us the cutative. He drops functions off the board. These now
wrap around his neck. The place stalls.

331



YOU HAVE TO KEEP EVERYTHING ON THE ORG BD THAT WAS EVER ON THE ORG  BD  EVEN
IF IT WAS 3000 YEARS.

SALVAGE

It often occurs that one has to do a full, complete salvage of an org bd.

There is absolutely no reason except the org bd  writer's  laziness  not  to
put everything on an org bd!

There is a rule about posting an org bd. You don't post  a  name  for  every
post. That is folly. You post by work load.

All the functions below a person are handled by that  person.  If  they  are
too much you put in a new name and person on a heavy load function.

So why do a cutative? It means no more people. It just means more space  and
tape. What's saved but elbow grease? What's lost? The whole org can be  lost
and become nonviable.

Example: SH original board had 10 major divisions  on  it.  They  were  just
functions really. They were the 10 sources of income before  SH  trained  or
processed anyone. Some years ago I tore the place  apart  looking  for  that
old org bd. It was evidently thrown away. Today SH does not have but one  of
those  income  functions!  Nine  have  been  lost!  It  added  training  and
processing, it lost 9 functions capable of supporting  it.  They  should  be
looked up in the 1959-1960 accounts records, the old invoices  analyzed  and
gotten back and put on the WW org bd and manned. This is regardless of  what
is already on the org bd.

Other functions lost off that and the SH org bds should be  posted  back  on
them and at least held from above or double or triple-hatted.

Example: DC which had the original 6 dept org bd should recover those  posts
and put them on the 9 div org bd so early policy would make sense.

Example: London should recover its earliest org bds and put their posts  and
functions on its current org bd,

There comes a time when early org bds have to be salvaged  and  reposted  on
existing org bds.

BECAUSE THOSE FUNCTIONS ARE STILL THERE AND MOST OF THEM GONE INVISIBLE.

Example: A Division 2 org bd asked to  be  redone  threw  away  50%  of  its
functions and posts, was dreamed up brand new off a division  already  caved
in by loss of performance. The excuse was "other activities now  do  these."
Published, this org bd would have driven  its  executive  mad  with  omitted
duties that would come to him as invisible overloads.

The "We don't do that now" is like what once happened  to  tech.  One  could
say, "Maybe you think you don't do it now but the function  is  still  there
hidden. It was found once. Now you've lost it again."

OLD EMPIRES

The Egyptian, Greek and Roman Empires still try  to  operate!  I've  checked
it. The late British Empire may be gone on the British org bd  but  it  will
still function without expression until it  kicks  England's  head  in.  The
British public shovels money out by the scoopful to an empire  that  doesn't
exist!

Trying to kill an org takes years and years and years and it still tries to
survive.

332



When one takes responsibility for a function or area it still tends to
persist.

It is an odd phenomenon. The third dynamic track is that way. Changes  later
on  the  track  (short  of  auditing  individuals)  do  not  change  earlier
circumstances.

A thetan's intentions get very pale perhaps but a thetan never really gives
up.

All this expresses itself on the subject of org bds.

One can also willfully disregard an existing board, dream  up  a  new  board
that does not express the functions and get into real trouble.

A NEW LOOK

Examining this subject of org bds in the light of  very  current  experience
with asking people to redo them, these facts have emerged.

It gives us a new look.

The next full Sen org bd issue you see will have  on  it  all  functions  of
which we have any trace and the nine division board we are using.

The new board will have nine  divisions.  It  will  also  include  all  past
titles and functions in addition to all current titles  and  functions  with
the past titles in parenthesis.

Many org bds of other activities have never  become  expressed  at  all  and
have left a tangled history. The US still hangs flags around the  Office  of
the President and one hears "The Executive Branch is usurping the  power  of
Congress." Congress once had all those functions but didn't put them on  its
org bd. They still do them but lost the titles to  the  President.  Thus  an
appointee despotism rises in place of a democracy. It all  goes  back  to  a
lost congressional org bd.

It is necessary for a people or a staff to

(a) Have an org bd

(b) Know the org bd

(c) Have the org bd express the total functions and duties  that  have  ever
been held by any post even including the flags of yesteryear duly dated.

Don't cut functions off an org bd. If they have become known they have  been
found. Why lose them?

One can rearrange flow patterns.

One cannot abandon living functions on an org bd.

It's only the unknowns on an org bd that get anyone overloaded, confused  or
in trouble.

So why not keep it visible?

L. RON HUBBARD

Founder

LRH:sb.gm

333



      HUBBARD COMMUNICATION

      Saint Hill Manor, East Grinstea

      HCO POLICY LETTER OF 27 SEPI

      Issue I

Remimeo

Cashiers

Div Ills    Org Series 6

Pub Div Hats

Div 11 Hats

FSMs  CUTATIVE PRICES

F/Os

HCO PL of 27 Apr AD 15 "Organizational Price  Engram"  is  fully  valid  and
must be followed. It explains why price cuts damage orgs.

Price cuts are forbidden under any guise.

1. PROCESSING MAY NEVER BE GIVEN AWAY BY AN ORG.

Processing is too expensive to deliver.

2. BOOKS MAY NEVER BE GIVEN AWAY BY AN ORG OR BY PUBS

ORG.

They are too expensive to manufacture.

3. FSM COMMISSIONS MAY NEVER BE PAID ON DISCOUNTED OR

CUT-RATE ITEMS.

If an FSM can't sell for full value he does not rate any commission.

4. SCHOLARSHIPS FOR COURSES ARE LIMITED TO INTERNSHIPS,

HSDC AND ACADEMY LEVELS.

5. COURSE SCHOLARSHIPS ONLY MAY BE OFFERED FSM ON

CONTEST AWARDS.

6. SCHOLARSHIPS ARE ONLY AVAILABLE TO WORKING FSMs OF

PROVEN SELECTEE SUCCESSES.

7. ALL SCHOLARSHIPS AND AWARDS OUTSTANDING TERMINATE

IF NOT TAKEN BEFORE I JANUARY 1971.

8. FSM COMMISSIONS ARE PAID ONLY ON THE ARRIVAL OF A

STUDENT OR PC, NOT ON RECEIPT OF THE FEE.

Adv payments are sometimes refunded.

9. ONLY FULLY CONTRACTED STAFF IS AWARDED FREE SERVICE,

AND THIS IS DONE BY INVOICE AND LEGAL NOTE WHICH BECOMES DUE AND PAYABLE  IF
THE CONTRACT IS BROKEN.

10. FSM BONUS AWARDS TO ORGS MAY ONLY BE DELIVERED TO

CONTRACTED STAFF MEMBERS OF THAT ORG.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

334



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I OCTOBER AD 20

Remimeo HC Checksheet

Org Series 7

HATS AND COUNTER-EFFORT

When you are trying to get somebody to do something he should  do,  you  are
in effect trying to get him to wear his hat.

In trying to get things done you often feel you are running  into  "counter-
effort." (Contrary action or effort to your action or effort.)

The most usual counter-effort is NOT willfulness or  mutiny  or  out-ethics.
Most  people  consider  these  are  the  reasons  they  get  opposition   to
worthwhile actions.

The most usual counter-effort is lack of a hat, defining a hat as  a  write-
up, checksheet and pack on which the person is trained.

It looks like willful stupidity, waywardness, laziness,  mutiny,  antagonism
or what have you.

Whatever the reason for it may be it must include lack of a hat.

The variations are enormous, almost infinite.

Example: Mr. A is trying to get Mrs. A to be a  good  wife.  Mrs.  A  is  in
outright mutiny. Now it could be that Mr.  A  does  not  have  or  know  his
husband hat or Mrs. A has no wife hat or  the  neighbors  or  friends  don't
have neighbor or friend hats or Mr. B has no social hat  and  is  trying  to
estrange Mrs. A or he has no husband's hat of his own; but whatever  it  is,
it is a matter of hats. SOMEBODY (or all of them) in  this  is  not  wearing
their hat.

I had someone in marital trouble look at me thoughtfully once  and  say,  "I
don't have any idea what are the rights or duties. OF a wife."

Example: A Course Supervisor having trouble getting a student to  study.  He
pleaded and argued and wore himself out.

He never realized this student DID NOT HAVE A STUDENT  HAT.  He  could  have
saved all his energy spent in arguing and applied it to making up a  student
hat and getting it assembled and studied and would have gotten somewhere.

ORG BD

So we draw up an org board for an activity for several people.

It is all correct as to function and flows.

We put the names of the several people on it where they seem to be fitted.

The activity doesn't go.

So we explain and drill the org board on the people.

It comes up to a flubby sort of cope.

335



The missing point now is HATS. Each one has to have and  know  his  own  hat
and something about the hats of others.

Things will promptly get much better! The  activity  and  the  interpersonal
relations and the lives of these people are greatly improved.

Personally they are running into much  less  cross-flow  and  confusion.  So
they have a happier time, less effort and more production.

A badly organized, badly hatted, badly trained  group  is  at  each  other's
throats continually. To get anything done at all they  have  to  operate  at
the level of correction instead of production.

Any ripple of emergency in such a group operates as a major impact.

PROGRAMS

There is still a missing element when one has org  boarded  and  hatted  and
specialist trained an activity. This is PROGRAMS.

The sequence of flows and the changes or actions at each point plotted
against time are in fact the major sequences and programs of a group.

MANAGEMENT SUCCESS

Given a desired product a fully successful management can only be founded
on the actions inherent in

1.    A good org bd

2.    Hats as write-ups, checksheets and packs

3.    Hats trained-in

4.    Sequences and programs known and followed.

IT IS FAR FAR EASIER TO WORK ON AND ACCOMPLISH THOSE FOUR THINGS THAN IT IS
TO COPE AGAINST THE COUNTER-EFFORT GENERATED WITHOUT THEM.

Naturally while getting this done, anyone has to cope to keep things going.

SINGLE-HANDING

"Single-handing" means to handle things by yourself.

You can single-hand when you are all alone or you can single-hand in a
large group that is supposed to be working or helping.

When only one man, senior or junior, is doing all the controlling and work
of an activity he is said to be "single-handing."

The term derives from the sea (like so many English words). Single means
"one only" and "hand" means a sailor. "Handing" is the verb form of "single-
hand."

No other activity expresses so well the idea of "one man working" or "one
man controlling."

It is of course derogatory to others who are around and not working.

336



The  phenomenon  comes  about  by  having  non-org-boarded,   unhatted   and
untrained people.

Now the oddity of it is that it can occur (a) when there  are  other  people
who are also supposed to be working (b) when there is an org board (c)  when
there are hats and (d) when programs exist.

This of course looks like "bad morale," "apathy," even "mutiny."

The missing elements usually are

(a)   The other people don't know the purpose of the activity or what's
really going on.

(b)   The org bd is unknown to them even when it exists.

(c)   The hats are not checksheets and packs and have not been trained-in.

(d)   The sequences or programs that should occur are not drilled in and if
they were the no-hat situation would wreck them.

The point is even more amazing when a group with a purpose and an  excellent
potential product WILL BE POOR AND WILL FAIL if org bd, hats  and  sequences
and programs are not fully known and drilled.

Groups are like that.

This is why Man and his activities succeed only  in  the  presence  of  huge
affluences or extraordinary personal leadership.

Lacking org bds, hats, training, programs that he  knows  and  can  do,  Man
flounders.

UNHATTED LEADERS

Leaders who are not org boarded, hatted and trained and programmed can  make
a fantastic mess out of a formerly well-organized group.

It takes some doing. But no one can knock the known org board  apart  faster
than a senior. No one can knock off hats easier than  someone  in  authority
who does not himself know they exist.

Nero and his ilk destroyed the whole Roman  Empire.  That  civilization  was
about as well org boarded and hatted as any civilization on  the  planet  in
recent millenia. Nero  thought  he  was  a  lute  player  and  composer  and
charioteer. These were the only  hats  he  ever  wore  aside  from  that  of
murderer.

A few emperors like him and that was that.

The Christians had an org board, member hats and staff hats, post hats of  a
sort and constant training. And that was the end of  the  Roman  Empire  and
the beginning of the Holy Roman Empire.

Way up in Pope Alexander the Sixth's time  (the  days  of  Lucretia  Borgia)
when bishoprics were for sale and the member hats were forgotten,  the  Holy
Roman Empire failed.

So there is plenty of history and example, even though  the  full  tech  was
not even developed. You can see the dim counterparts of org boards and  hats
weaving their way through all Man's yesterdays.

The history of the world is not written by wars and violence. It is  written
against an unseen background of beneficial products,  org  board,  hats  and
programs.

337



The  fantastic  administrative  skill  of  Arthur  Wellesley  the  Duke   of
Wellington and the rigid org bd of  Nicholas  of  Russia  defeated  Napoleon
whose only skills were military genius and personal leadership and luck.

So when the head of something does not know  about  org  bds  and  hats  and
programs he can single-hand things perhaps into  temporary  power  but  will
wear himself out with cope and soon decline.

One can't just run things. One has to put something there and the  something
is a desirable product, and org bd  hats  and  programs  and  see  they  are
grooved in properly.

And looking over history the  most  valuable  product  of  an  executive  is
holding the form of his org and providing his staff members  with  hats  and
programs well grooved in.

It takes so much more time and effort to build up an org in terms of org  bd
and hats and get it to hold its form that one might  not  at  once  see  its
benefit. Trying to get  a  result  without  also  building  an  organization
inevitably winds  up  in  single-handing,  coping,  overwhelm  and  eventual
defeat.

The right answer is single-hand while you train up your people.

For one will wind up single-handing any post he has not org bded and  hatted
and programmed,

And that is true of even a junior member of a staff. If  HE  doesn't  hammer
away to get in org bds and hats and sequences and programs, HE will wind  up
single-handing  all  his  section-while  they  stand  around   making   life
miserable with inefficiency, goofs and flubs and obvious counter-effort.

It isn't labor against management or the people against government.  One  or
the other or both aren't on org bds and aren't wearing their hats.

And in an interdependent society or a complex activity the final  result  of
no org bd, no hats, no programs known is chaos. And  very  unpleasant  chaos
as well.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

[Note: Page 337, paragraph 14 has been corrected to read, "Pope Alexander
the Sixth's time." Earlier issues read, "Pope Alexander the Fourth's
time."]

338



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 8 OCTOBER 1970

Remimeo

Executives

Org Series 8

ORGANIZING AND PRODUCT

Disorganization gives a poor product.

Organization (providing tech exists to make  the  product)  will  produce  a
good product.

If a product is poor or spotty one must

(a) Organize

(b) Make the tech available and known.

You can literally have mobs of people working and excellent production  tech
and get a horrible product.

The missing ingredient is organization.

Organization consists of a real and functional org  board,  hats  consisting
of checksheets, packs and manuals and training of this material.

The most used org bd is the "hey you! org  bd."  In  other  words  just  tag
anyone to do anything.

This guarantees bad production and a lousy product.

One can have an org bd that isn't real and get a "hey you! org bd."

Or one can have a good org bd that isn't known and get a "hey you!  org  bd"
in actual practice.

A whole org can be org bded and hatted and trained and yet shatter  when  an
untrained senior turns it into a "hey you!  org  bd."  This  is  easily  the
commonest cause of org collapse.

LOSING AN ORG BD

When an org bd leaves out known vital functions these tend  to  wrap  around
the neck of the in-charge as unknown items of irritation.

The commonest fault in re-drawing an org bd is throwing  the  old  one  away
and without looking at or getting a full inspection of the actual  functions
being done, dreaming  up  a  brand  new  board.  This  produces  a  delusory
situation. It is in fact a disassociation of the real work and  the  org  bd
delusion.

MINIMUM FUNCTION

A post tends to dwindle down to the "irreducible minimum function."

A mail clerk will distribute mail as that is visible to others.  Logging  it
is less visible. Properly sorting it is less visible.

339



If "receiving, logging, sorting and distributing" are left off  the  org  bd
and "mail distribution" is all that is left on it, the other functions  tend
to vanish and the post slides to "irreducible minimum" of just grabbing  and
slinging out mail.

A galley org bd can be deficient and carry only "food,"  or  "cook";  you'll
get "food" and that's all. It will possibly be very lousy food  as  the  org
bd is down to an irreducible minimum. Says "food" so  they  just  sling  out
food any old way of any old kind. Bad product. The  answer  is  to  organize
it. What are the steps in sequence that it takes to  get  good  food  served
and the place cleaned up? If they are all on the org  bd  as  functions  you
have the SEQUENCE of actions expressed as functions which can be posted  and
delegated as duties.

OUT SEQUENCE and OMITTED HATS are the commonest fault in  programs  and  org
boards. (See Data Series.)

One person may have 35 separate hats,

If so, he needs 35 hat folders, checksheets and  packs  and  35  baskets  or
compartments for the flows.

Further, the hats must be in sequence of flow where they relate to one  type
of particle.

Thirty-five hats is large but many an executive unknowingly wears more.  And
the ones he doesn't see are his areas of upset.

The smaller the number of people in an activity, the more hats each has.

One girl holding down seven branches of  an  office  finally  got  untangled
just by having seven baskets, one for each  branch,  and  working  a  stated
time on each one each day.  She  sorted  the  inflow  into  the  baskets  by
branches and then did them in rotation that made an org bd of  the  baskets.
She suddenly got production where she had had just despair and chaos.

SUMMARY

To improve an existing product, ORGANIZE.

L. RON HUBBARD

Founder

LRH:sb.rd.gm Copyright cl 1970

340



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 OCTOBER 1970

Remimeo

Org Series 9

ORGANIZING AND HATS

"Org bd" is actually an abbreviation not for an  organization  (noun)  board
but an organizing (verb) board.

The org bd shows the pattern of organizing to obtain a product.

A board then is a flow  chart  of  consecutive  products  brought  about  by
terminals in series.

We see these terminals as "posts" or positions.

Each one of these is a hat.

There is a flow along these hats.

The result of the whole board is a product.

The product of each hat on the board adds up to the total product.

WORKING IT OUT

When asked to work out an org bd (or when the board there is  doesn't  work)
one might think the task very difficult.

In studying this subject so as to be able to communicate it, I made  several
small breakthroughs in the subject itself.

Several questions on this can be very easily answered now.

Does an org bd have any value?

Yes. Without an org bd there is no group product, there is only a mob.

Yes. When there is no org bd  there  is  much  greater  effort  involved  in
getting anything done.

Yes. The waste of people involved in no org  bd  and  the  loss  of  product
justify any amount of effort to work out, make known and use  a  proper  org
bd.

Man instinctively uses an org bd and protests the lack of  one.  The  rawest
recruit walking aboard a ship assumes the existence of an org bd, if  not  a
posted one, at least a known one. He  assumes  there  will  be  somebody  in
charge and that different activities will be under  different  people.  When
there is no known org bd he protests. He also feels insecure as  he  doesn't
know where he fits into this organization.

Almost all revolts are manned by people who have been excluded out  and  are
not  on  the  country's  org  bd.  This  is  so  true  that  the  ridiculous
circumstance recently occurred  in  the  US.  The  President  found  he  had
"professional relief receivers." Certain people had assumed  the  status  of
"government dependent" and were giving this as their profession. It  was  of
course a post of sorts. And because it wasn't admitted  as  a  post  by  the
government there were some riots.

341



The effort to belong or to be part of is expressed by an org  bd.  A  person
with no post is quite miserable. A person with an unreal post feels  like  a
fraud or a mistake.

Morale then is also considerably affected by the quality of  an  org  bd  or
its absence.

The overall test  for  the  group,  however,  is  its  viability.  Viability
depends on having an  acceptable  product.  Groups  which  do  not  have  an
acceptable product are not likely to survive.

The volume and acceptability of a product depends in no small measure  on  a
workable known org bd. This is true even of an individual product.

An individual or small group, to get anywhere at all, requires a very  exact
org bd. The oddity is that the smaller the group the more vital the org  bd.
Yet individuals and small groups are the least likely  to  have  one.  Large
groups disintegrate in the absence of an org bd  and  go  nonviable  in  the
presence of a poor one.

The quality of a product, usually blamed on individual skill  only,  depends
to an enormous extent upon the org board. For example, one disorganized  mob
that was trying to make a certain product was  worked  to  death,  harassed,
angry at one another and had a wholly unacceptable product  at  about  twice
the usual cost; when organized to the  degree  of  a  third,  still  without
proper schedules, still  largely  untrained,  they  began  to  turn  out  an
acceptable product at  about  half  the  effort-so  even  some  organization
worked,

The product volume and quality depends utterly  and  totally  upon  the  org
board and hats and their  use.  You  can  train  individuals  endlessly  but
unless they are operating on a workable org bd they will still have  a  poor
or small volume product.

The traditional reliance of British intelligence on star agents  instead  of
organization cost them (along with misused PR) their empire.

Lack of a known and real org bd can spell failure. And lack of knowledge  of
the subject of organization has to be substituted  for  by  pure  genius  at
every point.

Thus to make anything at all, to improve any  product,  sustain  morale  and
distribute work equitably and make it count, one has to have a  real  and  a
known org bd.

So how do you make one?

HATS

An org bd is made up of hats.

The definition of a hat is the "beingness and doingness that attains a
product."

Let us take a train:

The engineer wearing his engineer hat has the title of engineer. That's the
beingness.

He accepts orders, watches signals and general conditions, operates levers
and valves to regulate the operation of his engine and to start, change and
stop. That's the doingness.

He safely and on schedule moves the train passengers and/or freight from
one location to another. A moved train and load is the product.

So how do we find out there is a hat called engineer?

342



As people are continually accepting or viewing already existing posts,  when
you ask them to dream up an org bd they at first may not  realize  that  you
are asking them to invent the correct posts.

They don't have to invent "engineer." Everybody knows "an  engineer  runs  a
train."

So if you didn't know this, you'd have to figure it out.

One would do it this way. One would have to think along these lines.

The idea comes about because of a concept that people and goods have  to  be
moved over distances on land. Or that a new area building  up  has  to  have
transport of people and goods from and to it.

Ah. This will be viable in an economic framework because people will pay  to
be moved and pay for their goods to be moved.

Trains do this.

So let's use trains.

Arranging finance (or by prepayment) and obtaining a franchise for  a  right
of way, track is laid,  rolling  stock  and  stations  and  roundhouses  are
built.

Now it emerges that somebody has to drive the train. So somebody had  better
be hired to drive the train.

So there comes into view the post of engineer.

How do we know this? Because we have to have a product of moved  people  and
goods. That was what we were trying to do in the first place.

Therefore, the engineer hat.

So supposing now we did not have any org bd at all.

The engineer hat  would  be  the  only  hat.  So  he  collects  fares,  runs
stations, fixes his engine, buys fuel, loads the cars, sells stock. . . .

Wait a minute. If the engineer did all that the following would happen:

1.    He would be exhausted.

2.    His temper would be bad.

3.    He would have machinery breakdowns.

4.    He might have, wrecks.

5.    The railroad property otherwise unhandled would disintegrate.

6.    He would have a low volume of product.

7.    His product would be uneven and bad as he could maintain no schedule,

8.    There would shortly be no railroad.

Now let's go wog and "solve" this.

Let's appoint a person for each station and say "There we are!"

Well, it would still be a mess.

343



So let's hire more engineers and more station agents and more engineers  and
more station agents. . . and wind up with a confused mess,  a  huge  payroll
and a lousy product. That's how governments do it. And it  is  notable  that
current governments have no product but disaster.

No, we have to solve this in quite another way.

We do not get anywhere and we will not get a sensible  org  bd  and  nothing
will work or be viable unless WE COUNT THE PRODUCTS  CORRECTLY  AND  DEVELOP
HATS TO ATTAIN THEM.

When we have done this we can arrange the hats on an org bd so  there  is  a
flow and command channels and communication channels and we've  got  an  org
bd.

You cannot work out an org bd until you have counted products!

As volume increases you estimate the products before the final  product  and
hat those.

Quality of final product depends on a real org bd and hats,  both  complete,
real and trained-in and the functions DONE.

Let us see now how you break down a final product into the  products  which,
put together, comprise it.

We have the final product of a railroad-viably moved loads. How many  lesser
products go into the big product?

There is a matter of machinery here. Any machine has  2  products:  (a)  the
machine itself in good operating condition, (b) the product of the  machine.
A repairman and machine shop man and a roundhouse keeper each has a  product
under (a). That is just for the machine, the engine.

Under (b) we have what the machine itself produces  (hauled  trains  in  the
case of an engine).

Here we have  then  2  major  products-and  these  break  down  into  lesser
products, earlier in sequence to the final product.

There is even an earlier product to these-bought  engines.  And  an  earlier
product to that-finance for equipment.

As for the load itself, a delivered load, accepted by  a  consignee  at  the
end, as you back up the sequence you will  find  a  product-stored  freight.
And before thatunloaded freight. And before that-moved freight.  And  before
that-loaded freight. And before that-freight  assembled  for  shipment.  And
before that-freight contracts procured. And before  that-advertising  placed
in public view. And before thatsurveys of public  freight  requirement.  And
before that-survey for activities requiring freight service.

Each one of these products is a hat.

Surveying this again we see there's no  charges  or  money  involved  so  no
economic viability. Thus we have a product, money  made.  This  has  earlier
hats of course. The bewilderment of some people (and a  lot  of  executives)
who gape at a no-dough situation is laughable. They  aren't  product-minded.
They think money falls into a company's lap or out of a TV set.  They  can't
think the product-sequence necessary to obtain money. So they go  broke  and
starve. There are always a lot of  prior  products  to  the  product  MONEY.
Fixated people just fixate on money itself, have no product sequence and  so
go broke or are poor.

344



Someone has to have a desirable product that is sold for more than  it  cost
to produce and have to sell it and deliver it  to  have  money.  Money  even
makes money. And even a pool of money has to have a product sequence  or  it
vanishes.

Even in socialism or communism the how does it support itself question  must
be understood, answered, its product sequence identified,  org  boarded  and
hatted. In such a moneyless society the org boarding has to be much  tighter
as money adds flexibility and lack of it as a working factor makes  problems
that are hard to solve.

ORGANIZING

In order to organize something one only has to

1.    Establish what is the final product.

2.    Work backwards in sequence to establish the earlier products
necessary to make each next product and which all in a row add up to the
final product.

3.    Post it in terms of vertical greater and greater completeness of
product to get command channels.

4.    Adjust it for flows.

5.    Assign its comm sequence.

6.    Work out the doing resulting in each product. Write these as
functions and actions with all skills included.

7.    Name these as posts.

8.    Post it.

9.    Drill it to get it known.

10. Assemble and issue the hats.

11.   Get these known.

12.   Get the functions done so that the products occur.

This is what is called "organizing."

As a comment,  because  railroads  didn't  fully  organize  their  viability
decayed and they ceased to be so used.

Railroads think it's the  government  or  airplane  rivalry  or  many  other
things. It isn't.  They  had  too  many  missing  hats,  were  actually  too
disorganized to keep pace  with  the  society's  demands,  ceased  to  fully
deliver and declined. In fact  there  has  never  been  a  greater  need  of
railroads than today. Yet, disorganized, badly org boarded and hatted,  they
do not furnish the service  they  should  and  so  are  opposed,  government
regulated, union hammered and caved in.

To have a quality product, organize!

To raise morale, organize!

To survive, organize!

L. RON HUBBARD

Founder

LRH:sb.rd.gm

345



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 29 OCTOBER 1970

Remimeo

Exec Hats

Org Series 10

THE ANALYSIS OF ORGANIZATION BY PRODUCT

The different products involved in production are

1.    Establishing something that produces. (Product 1)

2.    Operating that which produces in order to obtain a product. (Product
2)

3.    Repairing or correcting that which produces. (Product 3)

4.    Repairing or correcting that which is produced. (Product 4)

Example: A typewriter is manufactured and located on a desk. This is
establishing something that produces as in (1). A typist operates or runs
the typewriter which thus produces typed sheets, stencils, etc., which are
the product produced. This satisfies (2) above. The typewriter from various
causes eventually requires repair in order to continue to produce. This
satisfies (3). The correction of things typed would satisfy (4).

These are the four basic PRODUCTS involved in production.

      Thus there are really four basic products necessary to a production
activity.

These are

1.    The established machine.

2.    The machine's product.

3.    The corrected machine.

4.    The corrected product.

That makes a minimum of 4 products for any production cycle.

Three major factors govern every product. These are

A.    Quantity

B.    Quality

C.    Viability

Quantity would be an acceptable, expected or useful volume.

Quality would be the degree of perfection of a product.

Viability would be the longevity, usefulness and desirability of the
product.

As each product in the four listed above has three factors in each product,
there are then 12 major points (4 x 3) regulating production.

346



Product I-Establishing the typewriter, contains

(i)   The quantity of typewriters established.

(ii)  The quality of the typewriters established.

(iii) The viability of the typewriters established.

Product 2-The product of the typewriter (typed things) also has three:

(iv)  The quantity of the typed things.

(v)   The quality of the typed things.

(vi)  The viability of the typed things.

Product 3-The repair of the typewriter itself also has three factors:

(vii) The quantity (amount) of the repair.

(viii)      The quality of the repair.

(ix)  The viability of the repair.

Product 4-The correction of the thing produced.

(X)   The quantity (amount) of the corrected product.

(xi)  The quality of the corrected product.

(Xii) The viability of the corrected product.

Thus to get a product, "typed things," there are actually 12 separate
factors.

This applies to all machinery. For instance  there  is  the  generator  that
produces and there is the thing (electricity)  produced  by  the  generator.
There is the repaired generator. And  there  is  the  corrected  electricity
(such as reducing its voltage or converting it).

Now if you did not know that you  were  handling  12  factors  in  producing
electricity the tendency would be to "just run  the  generator"  and  ignore
the actual factors governing production.

The results of this would be total operation only. The generator would  soon
go to pieces. The electricity furnished would vary all over  the  place  and
blow out other equipment. There would be no funds to repair or  replace  the
generator when it broke down. By paying little  attention  to  products  (as
the wog world often does) or  by  shifting  their  importances-giving  total
importance to running it-there would soon be no viability at  all.  The  end
result would be 2 wrong products-scrap metal that was once a  generator  and
no electricity.

Now, surprise, surprise! An organization composed of  people  is  influenced
by these same things!

Org Product 1 is putting it there.

Org Product 2 is what the org produces.

Org Product 3 is the repair of the org.

Org Product 4 is the correction of the org's product.

347



If we do not know these products and factors exist, continual  mistakes  can
be made just as bad as just running a  generator.  Instead  of  the  desired
final product, which is offered and sold and delivered, we get  scrap  paper
and insolvency.

To establish an org one has to put one there. This requires a desirable  and
economic product of the org envisioned, the technology of making  the  final
product, the technology of making and handling the org, the  procurement  of
a location, recruitment, an org bd, hats, and  training  and  the  equipment
and materiel needed to produce the final product and the  obtaining  of  the
raw materiel to make the final product. Thus established. it  must  be  done
so that

(i)   The amount of org is created proportionate to its final product
demand.

(ii)  The quality of the org itself-shabby, posh, active or lazy, etc.

(iii) The viability of the org (how long will it last economically, how
will it expand, does income exceed out-go, etc.).

The product of the org itself is regulated by

(iv)  The quantity of product produced (which must be of sufficient volume
to

satisfy demand).

(v)   The quality of the org's product or products (which must be adequate
to

satisfy those requiring and paying for the production).

(vi)  The viability of the org's product (how long does it last and is it
adequate

for its value).

The repair of the org itself must be

(vii) The quantity or amount of repair necessary to make the org  functional
(which may amount to simply giving it a new  letterhead  or  rebuilding  the
whole place, nearly the establishing product again).

(viii)      The quality or expertness of the repair (a bad one could
destroy the place).

(ix)  The viability of the repair (if the right WHY is  handled  the  repair
as a product will last a long time and if a  wrong  reason  for  decline  is
handled the place will just cave in again).

The correction of the org's product to obtain a uniformly satisfactory
product:

(X)   The quantity (proportion of the org's product that has to be
corrected

(which might require, if too high, the repair of some part of the org
itself).

(xi)  The quality of the correction (expert and can be afforded and itself

nondestructive). '

(xii) The viability of the product corrected. (Will it last and be nearly
as good as the better produced product?)

All these factors must be consulted.

ANALYSIS

If one understands these factors  and  realizes  they  are  all  present  in
running an eggbeater or the world's biggest oil company,  one  will  not  be
groping around in rags.

A checklist of the 12 factors influencing the 4 major products can  be  made
up and each point as it relates to an org can be studied about a  particular
org.

348



One has here the basics. From these there can arise a near infinity of
lesser items.

When  one  does  not  know  these  basics  one  flounders  endlessly   while
attempting to handle a post, a portion of an org or the whole org. One  gets
into a frantic correct the errors and outpoints or goes into  apathy  as  he
has no guidelines.

However, using these basics, one can easily check them off and so  see  what
he has to do to more closely approach the ideal.

In Dianetics and Scientology, for example, the  final  pc  product  of  Flag
auditors trained on the same HCOBs as field auditors,  on  rougher  pcs,  is
infinitely better than the pc-product elsewhere. This is a puzzle. The  clue
is not in auditing at all. It lies in an earlier product-training.  A  Class
V1 or a Class VIII auditor on Flag was trained (a) more  rapidly  (amounting
to as little as 1/6th of the time in an org), and  (b)  more  honestly,  and
(c) the Flag auditor is expertly corrected as a product when  he  begins  to
audit until the auditing product is perfect.  The  training  (quantity,  and
lasting quality) on the  course  is  better  and  the  training  extends  to
training on post until the auditor's product (the auditing  of  the  pc  and
the pc) need little or no product correction.  The  equivalent  used  to  be
required HGC training-on post training-for  a  staff  auditor  to  become  a
staff auditor. In no org did auditors go fresh  from  school  into  auditing
with  no  further  training.  This  went  out  in  some  orgs.  The  product
"corrected auditor" became a missing product. Thus Flag auditing produces  a
better product as that product-corrected auditor- exists on Flag.

This is given to show the use of the product factors-

Where any of these products or factors are missing,  the  viability  of  the
whole is shaken. By using them the whole becomes viable.

L. RON HUBBARD

Founder

LRH:rr.rd.gm

349



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I NOVEMBER 1970

Remimeo

Org Series 11

ORGANIZATION AND MORALE

Morale is a large factor in organizing.

An executive is utterly dependent upon the willingness of those who work
for him.

(How to Live Though an Executive.)

Willingness, while it is also a factor in morale, is also a manifestation
of morale.

Morale, the tone of a group,  is  the  target  of  "do-gooders,"  the  "one-
worlders," the labor agitator, the commie agent, the local  minister  and  a
general mixed company of often well-meaning but nevertheless deadly people.

"You poor fellow. They treat you so badly . . . we will take up  this  great
injustice . . .  workers  should  have  everything  free  .  .  .  communist
imperialist aggressors against poor working people . . . . You poor  fellow,
God will make you welcome in his heaven from this earthly toil . . . .  Kill
the managers. . . . Down with law and order. . . ."

Well, it all winds up in revolution eventually and mounds  of  dead  workers
and a few dead managers.

So let's look this over.

If you can do something about an  ill  situation  you  do.  If  you  can  be
effective you can at least make the situation easier. If you can't  do  that
you can sympathize.

Sympathy with the abused apparently not only does no good but  winds  up  in
revolt!

How?,

You have this young girl, see. She is wearing  last  year's  dress.  No  new
clothes. So you say, "You poor thing wearing last year's dress." Up  to  now
she wasn't worried about it. Now she says, "I wish I had some new  clothes."
And you say,  "You  poor  thing.  Doesn't  your  mother  ever  buy  you  new
clothes?" "No." "The beast!" She goes home and revolts.

Get it?

The UN says, "Every woiker, he got to have job, house, lotsa dough."  Worker
says, "Who? Me?" "Yes you poor down-trodden sod." And the UN  says,  "United
States. You rich. You pay!" US pitches out the foreign  aid.  The  countries
take the dough and revolt and elect a military junta that  chops  off  heads
every hour on the hour.

The one-world do-gooders in the US say, "US, you pay  poor  fired  woikers!"
US puts out sixty-three billions. You can't walk down  a  street.  Riot  and
insurrection.

Why?

Sympathy. But not one brain cell worth of organization. 350



People want to be part of things, part of life.

If the clod heads that pass  for  modern  politicians  had  the  ability  to
organize and handle an economy (in big  countries  or  small)  people  could
easily be part of things and build the place up. It  is  in  fact  a  highly
skilled activity. And currently quite beyond the heads of nations.  Or  they
wouldn't have unemployment, riots, inflation and future death.

Take Russia. (You take her, 1 don't want her.) She had  half  a  century  of
growing revolt. The oatmeal brained Romanoffs spent  their  roubles  on  war
and secret police. Up jumped Lenin, "You poor woikers!" Revolt.  Dead  Czar.
Dead Russia. Their "workers paradisC  can't  feed  itself.  The  Czars  were
supremely awful.  Their  commissars  weren't  even  that  good.  One  secret
policeman per worker was about the ratio in Stalin's day.

Let's be practical. Who is going  to  build  this  UN  house  for  the  poor
worker? Who is going to pay the billions except the worker?

And if, as we so glaringly see, the end product of all  this  "poor  worker"
is riot and civil commotion, insurrection and piles  of  dead  workers  then
mightn't there be something a bit awry with its morale value?

Sympathy is a morale depressant. And knowingly or not, a morale destroyer.

If the person who sympathized was good enough to do something  about  it  he
would.

There's nothing at all wrong with righting evil conditions. Far from it.

But if you want to better things KNOW HOW TO ORGANIZE.

Don't just stir up a revolt that will get workers machine gunned.

If the chronic moaner knew how to throw together  an  organizing  board  and
groove in the lines, as part of  the  state  or  the  opposition,  he  could
certainly change things for the better.

Organizing is the know-how of changing things.

Good morale is the product of good organization!

If you organize something well and efficiently you will  have  good  morale.
You will also have improved conditions.

Wherever morale is bad, organize!

A very careful survey of people shows that their basic protests are  against
lack of organization. "It doesn't run right!" is  the  reason  they  protest
things.

Inequalities of work load, rewards unearned, no havingness, these  are  some
of the things that are snarled about.

They are cured by organizing things.

Russia  Siberiaed  or  shot  all  her  managers,   thinking   managers   and
capitalists were the same thing. Then she couldn't feed her people.

And you can't even discuss morale as a subject when  a  country  has  to  be
held together with barbed wire frontiers to hold in its own  secret  policed
people!

The only thing 1 really have against communists is that  they  know  how  to
make a revolt but not how to make a country.

351



And the only thing I have against the capitalist do-gooder is that  all  the
corn and games in the world will not make a viable country.

Neither system winds up in happiness or high morale.

The physical universe is no rose bed. But it can be confronted  and  can  be
lived in by a group.

Whenever you see bad morale, behind it you will see chaotic
disorganization.

A nation or an org follows the same laws.

Disorganization  from  any  cause  deprives  people  of  wanted   beingness,
doingness and havingness.

When you deprive people of those things you're going to  have  pretty  awful
morale.

And  only  organization  and  very  good  organization  will   bring   about
beingness, doingness and havingness.

All three factors must be served. And purpose and reason must exist.

A bum with a handout sandwich is a bum with a handout  sandwich.  You  can't
change anyone upward with sympathy.  It  is  a  witch's  weapon,  a  devil's
curse. But you can change someone upward with organization.

Bad organization = bad morale.

Good organization equals good morale.

And good organization is something worked on by a group. not  ordered  under
pain of death.

The only tops that get blown when effective  organization  starts  going  in
are those who  don't  want  others  to  have  things  and  take  delight  in
suppression-in other words good organization is only opposed  by  those  who
have reason to fear others.  For  in  organization  lies  the  secret  of  a
group's strength.

A small group thoroughly organized can conquer  the  disorganized  billions.
And have excellent morale while they're doing it!

L. RON HUBBARD

Founder

LRH:sb.ka.rd.gm

352



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 2 NOVEMBER 1970

      Issue 11

Remimeo     CORRECTED AND REISSUED 7 NOV 70

Org Series 12

THE THEORY OF SCIENTOLOGY ORGANIZATIONS

This "HCO Bulletin" 21 Sept  58  explains  how  a  Scientology  organization
differs from "the industrial ideal."

The industrial idea of organization is a  cogwheel  type  organization  with
each member of it totally fixed on post, doing only exact duties,  with  all
cogwheels intending to mesh. The  industrial  idea  does  not  differentiate
between a machine and a human or live organization.

The product laws (Products 1, 2, 3 and 4 as given in the Org  Series)  apply
to  both  a  live  organization  and  a   machine   organization   and   any
organization. Since a live and a machine organization  hold  these  laws  in
common, the industrialist confuses the live  organization  and  the  machine
organization.

HCO P/L 29 October 70, Org Series No. 10,---TheAnalysis of  Organization  by
Product" also carries a mention of this difference  between  a  live  and  a
machine organization.

As the industrial idea has already been mentioned in this  Org  Series,  and
as this Org Series mainly applies to live (not machine)  organizations,  and
as people tend to fall into a machine organization pattern (and also to  use
a live organization to not know their  own  speciality  best)  this  earlier
issue on live organization is published in full:

HUBBARD COMMUNICATIONS OFFICE     FOR ALL STAFF MEMBER HATS

LONDON (Issued at Washington)

HCO BULLETIN OF SEPTEMBER 21,1958

THEORY OF SCIENTOLOGY ORGANIZATIONS

An organization is a number of  terminals  and  communication  lines  united
with a common purpose.

The actions of an organization can all be classified under  the  heading  of
particle motion and change.  To  analyze  a  post  or  a  department  or  an
organization, make a list of each particle  it  handles  (whether  types  of
bodies, types of comm or any other item)  and  follow  each  item  from  the
point it enters the post or department  or  organization  to  the  point  it
exits. If a particle isn't handled properly and passed along properly  there
is a confusion or a dead end. To  organize  an  organization  requires  more
than theory. One has to inspect and list the particles and get their  routes
and desired changes of character enroute. Then he has to see that  terminals
and comm lines exist to receive, change and forward the particle. All  types
of particles belong to somebody, are handled some way, come  from  somewhere
and go somewhere. There are no confusions when lines, terminals and  actions
exist for each type of particle.

353



Judgment and decision are needed in every staff post.  If  the  handling  of
items are just "petty details" then so is your fellow man a "petty detail."

There are no laborers in a Scientology organization. We are all managers  of
these particles.

Routes of handling are not orders to handle but directions to  go.  A  route
is not necessarily correct for all  cases.  It  is  only  correct  for  most
cases.  Robots  can't  handle  livingness.  Robot  organizations  and  robot
civilizations fail. They only seem to worklike the commie  empire  seems  to
work until you find out everyone is starving  to  death  in  it.  A  perfect
organization is not a machine but a pattern of agreements. A route  is  only
the agreed upon procedure. It is not only occasionally broken,  it  now  and
then should be. The terminals involved  make  the  agreement  or  the  route
doesn't work. A route along terminals that never agreed is no  route  but  a
labyrinth. People agree to postulates they can  understand  and  appreciate.
Hence, a route and handling begins with a particle, develops with a  theory,
comes to life with an agreement and continues to work  because  of  judgment
and decision.

The routing, the comm lines, the pattern of an organization do  not  do  the
work. The work is done by living beings using  good  sense  and  skill.  The
organizational pattern only makes their work easier  and  lessens  confusion
and overburden. Governments, armies, big research bureaus reduce  themselves
down to routes and titles. They don't work. They don't do work.  They  allow
for no human equation. Therefore, slave societies (composed only  of  routes
and unthinking terminals) are always  beaten  eventually  by  free  peoples.
There is a point where routes and exact procedures become  unworkable,  just
as there is a point, facing a volume of  work,  that  individuality  and  no
teamwork becomes unworkable.  An  optimum  organization  is  never  severely
either  one.  Total  individuality  and  total   mechanization   alike   are
impossible. So if you or your department or your  organization  seem  to  be
too heavily inclined to either one, yell  don't  talk.  A  bad  organization
will fire you and you can do something more profitable. A good  organization
will listen. BUT-always have a better idea than the one in  use.  Grumbling,
refusing to work, don't work. A better idea, talked over with the  terminals
on either side of you, put down in concise writing, submitted, will  be  put
into action in a good organization. Of course, there's always a chance  that
the new proposed handling throws something out  of  gear  elsewhere.  If  it
does, you have the right to know about it.

An "organization" doesn't get the work done. As an  orderly  plan  it  helps
its terminals get the work done. The staff as individuals do  the  work.  An
organization can help or hinder getting the work done.  If  it  helps,  it's
good. If it hinders, it should be examined thoroughly.

An organization can work wholly at "taking in  its  own  laundry."  All  the
work that gets done is the work generated inside the shop by  unreal  routes
and weird  changes  of  particles.  This  is  a  government  circa  mid-20th
century. Its highest skill is  murder  which  in  its  profundity  it  makes
legal.

A  totally  democratic  organization  has  a  bad  name  in  Dianetics   and
Scientology despite all this talk of agreement. It has been found by  actual
experiment (LA 1950) that groups of people called  on  to  select  a  leader
from among them by nomination and  vote  routinely  select  only  those  who
would kill them. They select the talkers of big deals and ignore the  doers.
They seem to select unerringly the men of average skill. That is never  good
enough in a leader and the people suffer from his lack of understanding.  If
you ever  have  occasion  to  elect  a  leader  for  your  group,  don't  be
"democratic" about it. Compare records as follows: Take the person who is  a
good auditor, not just says he is. Take the  person  who  has  a  good,  not
necessarily the highest, profile and IQ.  Take  the  person  who  can  grant
beirigness to others. And look at the relative serenity  and  efficiency  of
any past command he may have had. And even then you're taking a  chance.  So
always elect temporarily and reserve the  right  of  recall.  If  his  first
action is to fire people, recall him at once and  find  another  leader.  If
the organization promptly prospers, keep him and confirm the election  by  a
second one. If the abundance of the organization sags  in  a  month  or  so,
recall and find another. Popularity is some criterion-but it can be  created
for an election only, as in the US. Select in an election

354



or by selection as an executive the person who can get the  work  done.  And
once he's confirmed, obey him or keep  him.  He's  rare.  But  beware  these
parliamentary procedure boys and girls who  know  all  the  legal  and  time
wasting processes but who somehow never accomplish anything except chaos.  A
skilled,  successful  leader  is  worth  a  million   impressive   hayseeds.
Democracies hate brains and skill. Don't get in that  rut.  In  the  US  War
Between the States militia companies elected their officers with great  lack
of success in battle. They  finally  learned  after  tens  of  thousands  of
casualties that it was skill not popularity that counted. Why be a casualty-
learn first. Democracy is only possible in a nation of Clears-and even  they
can make mistakes. When the majority rules the minority  suffers.  The  best
are always a minority.

WHAT IS YOUR JOB?

Anything in an organization is your job if it lessens the confusion if you
do it.

Your being  exactly  on  post  and  using  your  exact  comm  lines  lessens
confusion. But failure to wear another hat that isn't  yours  now  and  then
may cause more confusion than being exactly on post.

The question when you see you will have to handle  something  not  yours  is
this: "Will it cause less confusion to handle it or to  slam  it  back  onto
its proper lines?"

Example: A preclear wandering around looking for  somebody  to  sell  him  a
book. You see him. The book sales clerk isn't  there.  The  books  are.  Now
what's the answer? You'll create a little confusion if you hand him a  book,
take his money and give it to the book sales later. You'll create  confusion
for you own post and the organization if you go  chasing  around  trying  to
find "book sales terminal." You'll create a  feeling  of  unfriendliness  if
you don't help the preclear get his book. Answer it  by  deciding  which  is
less confusing. You'll find out by experience that you can create  confusion
by handling another's particles but you will  also  discover  that  you  can
create confusion by not handling another's particles on occasion.

The only real error you can make in handling another's particles is to  fail
to tell him by verbal or written comm exactly what you did.  You  stole  his
hat for a moment. Well, always give it back.

Remember,  in  a  Scientology  organization  every  Scientologist  on  staff
potentially wears not just his own but every hat  in  the  organization.  He
has to know more jobs than his own. Particularly jobs adjacent to his  post.
He often has to do more jobs than his own because  those  jobs  have  to  be
done and he sees it. A non-Scientology member of  an  organization  is  only
limited in what he can do in the organization by lack of know-how.  But  the
limitation  is  applicable  only  to  instruction  and   auditing.   But   a
Scientologist: he may find himself wearing any hat in  the  place  including
mine. And others may now and then wear his hat.

A staff member gets the job done of (1) his own post,  (2)  his  department,
and (3) the whole organization.

People who are always off line and off post aren't  doing  their  own  jobs.
When we find somebody always off post and in our hair we know if we look  at
his post we'll find a rat's nest. So there are extremes here as well.

HOW TO HOLD YOUR JOB

Your hat is your hat. It is to be worn. Know it, understand it, do it.  Make
it real. If it isn't real it is yourfault since you are the one to  take  it
up and get it clean with an executive. If he doesn't  straighten  it  up  so
you can do it, it's still Your fault if it's not done.

You hold a job in a Scientology organization by doing your job. There are
no

355



further politics involved-at least if I find out about it there aren't. So
do your job and you've got a job. And that's the way it is.

But on post or off, we only fail when we do  not  help.  The  "public"  only
objects to us when we  fail  to  help  or  when  we  fail  to  answer  their
questions. So we have two stable data on which to operate whether  we're  on
post or not:

HELP PEOPLE!

ANSWER PEOPLE'S QUESTIONS EXACTLY!

When you don't you let everybody down.

NEATNESS OF QUARTERS

THE PUBLIC KNOWS US BY OUR MEST

A part of everyone's hats is keeping a  good  mock-up  in  people,  offices,
classrooms. quarters.

Keep your desk and your mest neat and orderly. It helps.

And when you see things getting broken-down or run-down or dirty,  fix  them
or clean them or if you can't, yell like hell on the right comm line.

THE DESPATCH SYSTEM

The despatch system is not there to plague you but to help you.

Except when you've got to have speed, never use  an  inter-office  phone  to
another terminal. And never write a despatch and present it and you at  some
other point at the same time. That's "off-line" just as  a  phone  is  "off-
line." A good use of the organization's lines reduces confusion.  The  other
guy is busy, too. Why interrupt him or her unnecessarily with  routine  that
should go on the lines? You'll usually get an answer in the same day  or  at
least in 24 hours. The organization's comm lines are pretty good. They  make
it possible for this small handful of us to get more  things  done  in  this
society  than  any  other  organization  on  Earth  in   terms   of   actual
accomplishment.

A comm line can be jammed in several ways. Principal of  these  is  entheta.
Ask  yourself  before  it  goes  on  the  lines-it's  bad  news  but  is  it
necessarily important? Another is OVERBURDEN. Too much traffic jams a  line.
Too long a despatch doesn't get read. Another is TOO LITTLE data.  That  can
jam a line but thoroughly. It takes more despatches to find out  what  goes.
Another way is to bypass the line itself-this jams the terminal.  The  final
way, in broad classes, to jam a comm line is to PUT ERRONEOUS DATA on it.

The last is a  pet  hate  of  Scientology  people.  Generally  its  form  is
"everybody knows." Example: "They say that George is doing a  bad  job,"  or
"Nobody liked  the  last  newsletter."  The  proper  rejoinder  is  "Who  is
Everybody?" You'll find it was one person who had  a  name.  When  you  have
critical  data  omit  the  "everybody"  generality.  Say  who.  Say   where.
Otherwise, you'll form a bad datum for somebody. When our actions  are  said
to be unpopular the person or persons saying so have names.

IN SUMMARY

A post in a Scientology organization isn't a job. It's a trust and a
crusade. We're free men and women- probably the last free men and women on
Earth. Remember, we'll have to come back to Earth some day no matter what
"happens" to us. If we don't do a good job now we may never get another
chance.

356



Yes, I'm sure that's the way it is.

So, we have an organization, we have a field we must support, we have a
chance.

That's more than we had last time night's curtain began to fall on freedom.

So we're using that chance.

An organization such as ours is our best chance to get the most done. So
we're doing it!

L. RON HUBBARD

rs:29.9.58 all staff members field offices

L. RON HUBBARD

Founder

LRH:rr.rd.gm , 1970

357



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 13 NOVEMBER 1970

Remimeo

Org Series 13

PLANNING BY PRODUCT

One of the cycles or correct sequences of action is

BE - DO - HAVE

This sequence is often altered in orgs and even in individuals. Be is  first
in the physical universe, Do is second, Have is third.

By getting it out of sequence a considerable confusion can be generated.

A lot of riddles of human behavior can be solved by realizing this goes  out
of sequence or gets omissions.

The Spanish peasant and the Spanish officials go to war at  the  drop  of  a
straw. Their history is jammed with revolts. The peasant knows  that  if  he
is a peasant (be) and does  his  work  (do)  he  should  have.  The  Spanish
official is stuck in BE. He has so he can be  and  he  doesn't  have  to  do
anything. Also a degree or title in Spain is a BE and there  is  no  do.  So
there is no have unless it comes from the peasant. The  two  altered  cycles
collide.

Juvenile delinquency and shattered lives in  the  West  stem  directly  from
corruptions of this cycle.

Children in the West are commonly asked "What are you going to BE  when  you
grow up?" It is a silly question and  can  drive  any  child  up  the  wall.
Because it's the wrong question-hits the wrong end of the  cycle.  He  can't
work out his personal org bd easily.

He is also asked "What are you going to DO in life?" That's just as bad.  It
is quite difficult to answer.

You have to do an org bd backwards-establish the product  (have),  find  out
what to do to achieve it and only then really can  you  accurately  discover
what one has to BE to accomplish this.

A lot  of  people  and  businesses  fail  because  they  don't  do  this.  A
beirigness taken first all too often winds up in  a  doingness  without  any
havingriess resulting.

If we asked children, "What do you  want  to  PRODUCE  in  life?"  we  could
probably get a workable answer. From that he  could  figure  out  what  he'd
have to do to produce that and from that he could know what he  had  to  BE.
Then. with a little cooperation he  would  be  able  to  lead  a  happy  and
valuable life.

Concentrating on BE, one finds him ready to BE all right but then he  stands
around the next 50 years waiting for his havingriess to fall out of the  sky
or slide to him via a welfare state.

The above data, missing in society,  contributes  to  juvenile  delinquency,
crime, the welfare state and a dying civilization.

It is a wrong personal org bd to BE only.

So it is with an activity or company.

What is the desired product that will also be  desired  by  others?  is  the
first question one asks in organizing. It must be answered  before  one  can
adjust or arrange finance or any org bd,

358



Then one asks what has to be done to produce that? And there may  be  a  lot
of dones figured out and put in sequence.

Now one can work on BE,

Thus you would have the basic ingredients of an org bd.

Here is a common altered cycle:

Mr. A has a truck-HAVE. He tries to figure out what to DO with it. He  works
it around to try to make money. He would usually go broke.  As  he  supposes
he already has a product-a truck,  and  he  needs  a  product-"  money,"  he
rarely backs it up to a BE.

Some people's "think" gets all involved in altered  sequences  or  omissions
of the BE - DO - HAVE cycle.

An activity has several final products. All of them must be worked  out  and
considered. Then one can work out the sequence of DOs (each with a  product)
in order to accomplish the final products. Only then can one  work  out  the
BE.

By omission or fixations on one of these points a person or an org can  fail
or perhaps never even get started.

Fixation on DO without any product in view leads to bored wandering  through
life.

Mothers even know this one. "Mama,  what  shall  I  do?"  is  a  long  drawn
refrain. Smart mamas often say "Make a cake" or "Make mud pies" or  "Make  a
house." Dumb ones say "Go and play and stop bothering me!"

Armies, with guard or death "products," get obsessed  with  DO  to  a  point
where officers and noncoms will state, "Get those  men  busy!"  No  product.
Meaningless, often frantic and useless DO.

It could be said that any developed traffic (dev-t) comes  from  people  who
have no product.

Immense bureaucracies can build up where there are  no  realized  or  stated
products.

Target policies and practice are successful because they state the desired
product.

Unless one organizes from the final product the organization can get  unreal
and useless.

Even Russia could learn this one. Their "workers" are all trying to  get  to
the university where they  can  BE.  The  Russian  government  was  recently
pleading with young people to become workers.  But  of  course  that's  just
another BE that implies DO. Russia has yet to realize her  product  was  and
is revolution. It's no wonder their main problem is how to feed  and  clothe
and house their people.

Unless an org or a person knows exactly what the final product  is  for  the
org or a post, there'll be a lot of busyness but not  very  much  havingness
for anyone.

The answer is to figure out the final product and work back through  the  do
of subprojects and you will then materialize a real org, a real beingness.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

359



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 NOVEMBER 1970

Remimeo

Org Series 14

THE PRODUCT AS AN OVERT ACT

When a product is nonexistent or bad it can be classified as  an  overt  act
against both the org and any customer.

You can estimate what the existing scene of a post really is by  looking  at
its product.

When a flubby product is observed, you can at once approximate the  existing
scene.

The time it takes to achieve the product is also an estimation. A long  time
to achieve a small flubby product gives one a  good  idea  of  the  existing
scene.

This also estimates the amount of "noise" in an area.

Example: Post X is supposed to sort ruddy rods. There are  no  sorted  ruddy
rods ready. That's an omitted action. The post has to  be  ordered  to  sort
ruddy rods. That's ordering  someone  to  wear  his  hat  which  is  altered
sequence as he should have been wearing it  already.  The  post  must  be  a
false terminal as it isn't wearing its hat. The product so far is no  sorted
ruddy rods.  You  order  them  sorted.  You  get  bent  tangled  ruddy  rods
furnished after a long time period filled with dev-t. Estimate  of  existing
scene-psychotic and an awful long way from any ideal scene.  Actual  quality
of product-an overt act.

When several org members are furnishing a poor individual product,  the  org
becomes difficult to  handle  as  the  person  in  charge  is  operating  as
correction not as establishment and org product.

Wherever an org's product is low in quantity and quality one must  recognize
that it contains several members who unconsciously  furnish  overt  acts  in
the guise of post products and begin to straighten things out accordingly.

The road to sanity for such a person or org is a good  grasp  of  organizing
and products, making known the  technology  needed  to  produce  a  product,
getting it properly done so that the person can then wear his hat.

If this still  doesn't  occur,  personal  processing  is  necessary  as  the
personnel may well be dramatizing overt acts (harmful acts) by  turning  out
a bad product.

The final product of an org is the combined products of all the  members  of
that org directed to accomplish the final products of that org.

Stupidity, lack of a worked out org bd, lack  of  recognition  of  what  the
final org products should be, lack of training, lack of  hats,  can  produce
poor final products. In an activity not doing well the  poor  final  product
or its lack of any product is the compound errors  in  subproducts.  An  org
where the product is pretty bad or nonexistent contains many elements-posts-
in it which have as their individual "post products"  not  products  at  all
but overt (harmful) acts.

Pride of workmanship is pride in one's own product.

Every post has some product. If the products of all  posts  in  an  activity
are good and the product sequence is good then the  final  products  of  the
org will be good.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

360



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 20 NOVEMBER 1970

                    CORRECTED AND REISSUED 29 AUGUST 1974

Remimeo

Personnel Series 12

Org Series 15

ORGANIZATION MISUNDERSTOODS

By Scientology study  technology,  understanding  ceases  on  going  past  a
misunderstood word or concept.

If a person reading a text comes to the word "Felix Domesticus" and  doesn't
know it simply means HOUSE  CAT,  the  words  which  appear  thereafter  may
become "meaningless,"  "uninteresting"  and  he  may  even  become  slightly
unconscious, his awareness shutting down.

Example: "Wind the clock and put out the  Felix  Domesticus  and  then  call
Algernon and tell him to wake you at 10:00 A.M.," read  as  an  order  by  a
person who didn't bother to find out that "Felix  Domesticus"  means  "house
cat" or "the variety of cat which has been domesticated" will  not  register
that he is supposed to  call  Algernon,  will  feel  dopey  or  annoyed  and
probably won't remember he's supposed to wake up at 10:00 A.M.

In other words, when the person hit  a  misunderstood  word,  he  ceased  to
understand and did not fully grasp or become aware of what followed after.

All this applies to a sentence, a book, a post or a whole organization.

Along the time  track  a  crashing  misunderstood  will  block  off  further
ability to study or apply data. It will also block further understanding  of
an organization, its org board,  an  individual  post  or  duties  and  such
misunderstoods can effectively prevent knowledge of or action on a post.

ALL THIS IS THE MOST COMMON CAUSE OF AN UNACCEPTABLE  POST  PRODUCT,  OR  NO
PRODUCT AT ALL.

The difficulties of an organization in functioning or producing stem from
this fact.

Personal aberration is the cause of products that are in fact overt acts.

Scientology technology today easily handles the personal aberration part  of
the problem, IF IT IS USED AND PROPERLY APPLIED. Leaving  an  org  unaudited
or being unable to figure out how to run a viable org so that it can  afford
to audit its staff members is asking for  post  or  org  products  that  are
overt acts.

Employing   persons   of   the   Leipzig,   Germany,   death   camp   school
(psychologists,  psychiatrists)  to  handle  personal  aberration  is   like
throwing ink in water to clean it  up.  Governments  stupidly  do  this  and
wonder why their final product  as  an  organization  is  riot,  war  and  a
polluted planet. The point is not how bad  psychology  and  psychiatry  are,
but that one does have to handle personal aberration in an organization  and
these schools were too vicious and incompetent to do so.

Those who are personally very aberrated are not about  to  produce  anything
but an overt act. They are difficult to detect as  they  are  being  careful
not to be detected. Things "just sort of go wrong"  around  them,  resulting
in a product that is in fact an overt act. But these constitute  only  about
10 or 20 percent of the population.

361



The remaining 80% or 90% where they are nonfunctional  or  bungling  are  so
because they do not understand what it's all  about.  They  have  in  effect
gone on by a misunderstood such as what the org is supposed  to  do  or  the
admin tech they use on their posts or where they are or what  their  product
is.

Earth organizations like governments  or  big  monopolies  get  a  very  bad
repute because of these factors:

1.    Personal aberration of a few undetected and unhandled.

2.    Inadequate or unreal basic education technology and facilities.

3.    Inadequate or unknown organization technology.

4.    Noncomprehension of the individual regarding the activities of which
he is a part.

5.    Noncomprehension of the basic words with which he is working.

6.    Purposes of the post uncleared.

7.    Admin of the post not known or comprehended.

8.    Technology in use not fully understood.

9.    A lack of comprehension of products.

Out of these nine things one gets organizational  troubles  and  the  belief
that it takes a genius to run one successfully. Yet all the  genius  in  the
world will fail eventually if the above nine things are not handled to  some
degree.

The common methods currently in use on the planet  to  handle  these  things
are very crude and time-consuming as the items themselves are  either  dimly
comprehended or not known at all.

IA. Personal aberration is met  by  torture,  drugs  or  death  when  it  is
detected. Yet only the very  serious  cases  who  are  obviously  screaming,
muttering or unconscious are singled out  whereas  the  dangerous  ones  are
neither detected nor handled  at  all  and  become  with  ease  generals  or
presidents or dictators, to say nothing of lesser fry. Ten  percent  to  20%
of any organization is stark staring mad, doing the  place  in  so  adroitly
that only their actual product betrays them.

2A. Basic education as  well  as  higher  general  education  has  become  a
massproduced area crawling with bad  texts  and  noncomprehension  and  used
mainly by hostile elements to overturn the state or  pervert  the  race  and
its ideals.

3A. Organizational technology is so primitive as  to  change  national  maps
and leading companies many times a century, an extremely unstable scene  for
a planet.

4A. Very few individuals on the planet have any  concept  of  the  structure
entities such as their country or state or company.  Persons  surveying  the
public in the US, pretending to advise acceptance of "new measures"  already
in the  Constitution  were  threatened  for  being  revolutionaries.  Hardly
anyone knew the basic document of the nation's organization  much  less  its
rambling structure.

5A. The basic words of  organization  are  glibly  used  but  not  generally
comprehended-words like "company .. .. management,"  "policy."  Vocabularies
have to be  increased  before  comprehension  and  communication  occur  and
misunderstoods drop out.

6A. Post purposes are often glibly  agreed  with  while  something  entirely
different is done.

362



7A.  Administrative  actions  involving   posts   are   often   only   dimly
comprehended and seldom well followed but in this matter  of  communication,
despatches, etc., the planet is not as deficient as in  others  except  that
these  functions,  being  somewhat  known  can  become  an  end-all-tons  of
despatches, no actual product. In some areas it is an obsession, an  endless
paper chain, that is looked on as a legitimate product even  when  it  leads
to no production.

8A.  The  planet's  technology  is  on  the   surface   very   complex   and
sophisticated but is so bad in actual fact that  experts  do  not  give  the
planet and its populations 30 years before the smoke  and  fumes  will  have
eaten up the air cover and left an oxygenless world.  (The  converters  like
trees and grass which change carbon dioxide  to  oxygen  are  inadequate  to
replace the oxygen and are  additionally  being  killed  by  air  impurities
coming out of factories and cities.) If the  technology  destroys  the  base
where it is done-in this case the planet-it is not adequate and may even  be
destructive technology.

9A. The whole idea of "product" is not in use except in commercial  industry
where one has to have a car that sells or a washing  machine  that  actually
washes.

THE HARD ROAD

It is against this primitive background that one is trying to run an
organization.

If it were not for improvements made on each one of these  points  the  task
could be hopeless.

I have gone to some length to outline the lacks in order to show the  points
where one must concentrate in (a) putting an org together  and  (b)  keeping
it viable.

In these nine areas we are dealing with the heart of it in running orgs.

Enthusiasm is a vital  ingredient.  It  soon  goes  dull  when  insufficient
attention is paid to resolving and getting in these nine points.

Bluntly, if they are not gotten in and  handled,  the  task  of  living  and
running a post or  an  org  will  become  so  confused  that  little  or  no
production will occur and disasters will be frequent.

THE WORDS

The by-no-means-complete list of words that have to  be  fully  cleared  and
understood  just  to  talk  about  organization  as  a   subject,   and   to
intelligently and happily work in an org EVEN AS ITS LOWEST EMPLOYEE is

A company A board of directors Top  management  Policy  Management  Programs
Targets Orders Technology Know-how Org bd Post Hat  Cope  Purposes  Organize
Duties A checksheet

363



. checklist

. comm channel

. command channel

. relay point

. stable terminal

Double-hatted

A product

Aberration

VIABILITY

This is key vocabulary. One could draw  up  a  whole  dictionary  for  these
things and no one studying it would be  any  wiser  since  it  would  become
salted with other words of far less importance.

The way to do this list is sweat it out with a meter until  one  knows  each
can't mean anything else than what it does mean.

Out of a full understanding of what is implied by each, a brilliantly  clean
view is attained of the whole subject of organization, not as a  fumble  but
as a crisp usable activity.

Unless one at least knows these words completely so that they  can  be  used
and applied they  will  not  buffer  off  confusions  that  enter  into  the
activity.

Glibness won't do. For behind these  words  is  the  full  structure  of  an
activity that will survive and when the words  aren't  understood  the  rest
can become foggy.

We do know all these needful things. We must communicate them and  use  them
successfully.

L. RON HUBBARD

Founder

LRH:kjm.rd.ts.gm

[Note: The 29 August 1974 reissue corrected the word test to text in the
second paragraph of this HCO PLJ

364



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 25 NOVEMBER 1970

Remimeo     (CORRECTED AND REISSUED 27 NOV 1970)

Org Series 16

POLICY AND ORDERS

Probably the greatest single confusion that can  exist  in  the  subject  of
organizing is the reversal of "policy" and "orders."

When definitions of these two things are not clearly understood they can  be
identified as the same thing or even reversed.

When they are not understood  plainly  then  staff  members  set  their  own
policy and demand orders from top management, totally reversing the roles.

Confusion thus generated  can  be  so  great  as  to  make  an  organization
unmanageable. It becomes impossible for staff to do its job  and  management
cannot wear its hat.

People in an organization obsessively demand orders from policy  source  and
then act on their own policy. This exactly reverses matters  and  can  be  a
continual cause of disorganization.

As policy is the basis of group agreement, unknown policy or policy  set  by
the wrong source leads to disagreement and discord.

Demanding or looking for orders from  policy  source  and  accepting  policy
from unauthorized sources of course  turns  the  whole  organization  upside
down. The bottom of the org board becomes the top of the  org  bd.  And  the
top is forced to act at lower levels (order issue) which pulls it  down  the
org bd.

But this is not strange as we are dealing here with  principles  rather  new
in the field  of  organization,  principles  which  have  not  been  crisply
stated. THERE IS NO EXACT ENGLISH WORD for either of these two functions.

POLICY as a word has many definitions in current dictionaries amongst  which
only one is partially correct: "A definite course or  method  of  action  to
guide and determine future decisions." It is also "prudence  or  wisdom"  "a
course of action" and a lot of other things according to the dictionary.  It
even is said to be laid down at the top.

Therefore the word has so many other meanings that the language  itself  has
become confused.

Yet, regardless of dictionary fog, the word means  an  exact  thing  in  the
specialized field of management and organization.

POLICY MEANS THE PRINCIPLE EVOLVED  AND  ISSUED  BY  TOP  MANAGEMENT  FOR  A
SPECIFIC ACTIVITY TO  GUIDE  PLANNING  AND  PROGRAMMING  AND  AUTHORIZE  THE
ISSUANCE OF PROJECTS BY EXECUTIVES WHICH IN TURN  PERMIT  THE  ISSUANCE  AND
ENFORCEMENT OF ORDERS THAT DIRECT THE ACTIVITY  OF  PERSONNEL  IN  ACHIEVING
PRODUCTION AND VIABILITY.

POLICY is therefore a principle by which the conduct of affairs can be
guided.

A policy exists, or should exist, for each broad field or activity in  which
an organization is involved.

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Example:  The  company  has  a  lunchroom  for  its  employees.  Top  policy
concerning it might be "To provide the employees cheaply with good food  and
clean fast service." From this the  lunchroom  manager  could  plan  up  and
program how he was going to do this.  With  these  approved  they  form  the
basis of the orders he issues.

Now let us say the manager of the lunchroom did not  know  organization  and
that he did not try to get a policy set or find if there was  one  and  made
up his own policy and planned and programmed and issued his orders on  that.
Only the policy he makes up is "To make dough for the company."

Now the wild melee begins.

Top management (the lunchroom manager's highest  boss)  sees  stenos  eating
cold lunches brought from home at their desks. And  begins  to  investigate.
How come? Stenos then say, "We find it cheaper to eat our own lunches."  Top
management finds coffee in the  lunchroom  is  terrible  and  costs  several
shillings. Dried out sandwiches cost a fortune. There is no place to  sit  .
. . etc. So top managment issues orders (not  policy).  "Feed  that  staff!"
But nothing happens because the lunchroom  manager  can't  and  still  "make
dough for the company." Top managment  issues  more  orders.  The  lunchroom
manager thinks they must be crazy at board level. How  can  you  make  dough
and still feed the whole staff? And  top  management  thinks  the  lunchroom
manager is crazy or a crook.

Now you multiply this several times over in an organization and you get  bad
feeling, tension and chaos.

Let us say top managment had issued policy: "Establish and run  a  lunchroom
to provide the employees cheaply with good food  and  clean  fast  service."
But the lunchroom manager hired knew  nothing  of  organization,  heard  it,
didn't realize  what  policy  was  and  classified  it  as  a  "good  idea."
Idealistic, probably issued for PR with employees. "But  as  an  experienced
lunchroom man I know what they really want. So we'll make  a  lot  of  dough
for the company!"

He thereafter bases all his orders on this principle.  He  buys  lousy  food
cheap, reduces quality, increases prices, cuts down cost by  no  hiring  and
does make money. But the company gets its income from  happy  customers  who
are handled by happy staff members. So  the  lunchroom  manager  effectively
reduces the real company income by failing to cater to staff morale  as  was
intended.

UNPREDICTABLE

It is a complete fact that no top management can predict  WHAT  policy  will
be set by its juniors.

The curse of this is that top  management  depends  on  "common  sense"  and
grants greater knowledge of affairs to others at times  than  is  justified.
"Of course anybody would know that the paper knives we make are supposed  to
cut paper." But the plant manager operates on the policy that the  plant  is
supposed to  provide  employment  for  the  village.  You  can  imagine  the
squabble when the paper knives which do NOT cut paper fail  to  sell  and  a
threatened layoff occurs.

Nearly all labor-management hurricanes blow up over this fact  of  ignorance
of policy. It is not actually a knowing conflict  over  different  policies.
It's a conflict occurring on the unknown basic of unknown  or  unset  policy
of top management and the setting of policy at an unauthorized level.

ORDERS

"Order" takes up two small print columns of the two ton dictionaries.

The simple definition is

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AN ORDER IS THE DIRECTION OR COMMAND ISSUED BY AN  AUTHORIZED  PERSON  TO  A
PERSON OR GROUP WITHIN THE SPHERE OF THE AUTHORIZED PERSON'S AUTHORITY.

By implication an ORDER goes from a senior to juniors.

Those persons who do not conceive of  an  organization  larger  than  a  few
people tend to lump all seniors into order-issuers, tend  to  lump  anything
such a senior says into the category of order and tend to lump  all  juniors
into order-receivers.

This is a simple way of life, one must say.

Actually it makes all seniors bosses  or  sergeants  and  all  juniors  into
workers or privates. It is a very simple arrangement. It  does  not  in  any
way stretch the imagination or sprain any mental muscles.

Unfortunately such  an  organized  arrangement  holds  good  for  the  metal
section of the shop or a platoon or squad. It fails  to  take  into  account
more sophisticated or  more  complex  organizations.  And  it  unfortunately
requires a more complex organization to get anything done.

Where one has squad mentality in a  plant  or  firm,  one  easily  gets  all
manner of conflict.

Few shop foremen or sergeants or chief clerks ever waste any time in  trying
to tell the "rank and file" what the policy is.  "Ours  was  not  to  reason
why" was the death song of the Light Brigade. And  also  the  open  door  to
communism.

Communism is unlikely to produce a good  society  because  it  is  based  on
squad mentality. Capitalism has declined  not  because  it  was  fought  but
because it could not cope with squad mentality. The  policies  of  both  are
insufficiently embracive of  the  needs  of  the  planet  to  achieve  total
acceptability.

An order can be issued solely and  only  because  its  issuer  has  in  some
fashion  attained  the  right  to  issue  the  instruction  and  to   expect
compliance.

The officer, the chief clerk, the shop steward, the sergeant, each  one  has
a license, a warrant, a "fiat" from a higher authority  which  entitles  him
to issue an order to those who are answerable to him.

So where does this authority to issue orders come from?

The head of  state,  the  government,  the  board  of  directors,  the  town
council, such bodies as one could consider top  management  in  a  state  or
firm, issues the authority to issue orders.

Yet such top persons usually do not issue authority to issue orders  without
designating what the sphere of orders will be and what they will be about.

This is the policy-making, appointment-making level at work.

All this is so poorly and grossly defined in the language itself  that  very
odd meanings are conceived of "policy" and "orders."

Unless  precise  meanings  are  given,  then  organization  becomes  a  very
confused activity.

Understood in this way, the following  sentence  becomes  very  silly:  "The
board of directors issued orders to load the van and the driver was glad  to
see his policy of interstate commerce followed."

Yet a group will do this to its board of directors constantly. "You did not
issue

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orders. . . ." "We were waiting for orders. . . ." "I know  we  should  have
opened the doors but we had no order from the council. . . ."

The same group members, waiting for orders to sit or stand by special  board
resolution, will yet set policy continually. "We are trying  to  let  others
do their jobs without interference."  "I  am  now  operating  to  make  each
member of my department happy." "I  am  running  this  division  to  prevent
quarrels."

Ask officers, secretaries, in-charges, "What policy are you  operating  on?"
and you will get a quick  answer  that  usually  is  in  total  conflict  or
divergence from any board policy. And you will get a  complaint  often  that
nobody issues their division orders so they don't know what to do!

The fact is that POLICY gives the right to issues orders upon it to  get  it
in, followed and the job done.

A group of officers, each one issuing policy madly  while  waiting  for  the
head of the firm to give them orders is a scene of  mix-up  and  catastrophe
in the making.

Policy is a long, long-range guiding principle.

An order is a short-term direction given to implement a policy or the  plans
or programs which develop from policy.

"People should be seated in comfortable chairs in the waiting room" is a
policy.

"Sit down" is an order.

If policy is understood to authorize people to  issue  orders,  the  picture
becomes much clearer.

"Clearing post purpose" is another  way  of  saying  "Get  the  policy  that
establishes this post and its duties known and understood."

Unless an organization gets this quite straight, it  will  work  in  tension
and in internal conflict.

When an organization gets these two things completely clear, it  will  be  a
pleasant and effective group.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

368



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I DECEMBER 1970

Remimeo

Org Series 17

REALITY OF PRODUCTS

The character of the VALUABLE FINAL PRODUCTS OF  AN  ACTIVITY  is  something
which must be established EXACTLY.

Example: Ajax Ball Bearings Ltd. did well for a while and then went  into  a
decline. The exact change point into the decline coincided with a change  to
new stockholders and considerable executive and  staff  turnover.  At  first
glance the WHY would have seemed to be  so  many  transfers-musical  chairs.
However, a complete survey shows  that  the  definitions  of  Ajax  valuable
final products where changed from "useful ball bearings sold in quantity  at
a profit" to "world acceptance of Ajax."  The  big  ad  campaigns,  internal
shop and accounting policy shifts to accomplish this, the  new  fuzzy  ideas
about it and failure to spot the WHY took Ajax down. Traced further  it  was
found that the new advertising manager had originated this  policy  and  the
new board had only a  foggy  notion  of  its  duties  and  knew  nothing  of
"valuable  final  products."  The  whole  company  started   "manufacturing"
acceptance instead of ball bearings. The production shop got more  and  more
idle, more and more neglected, had fewer and fewer  men  in  it.  Admin  got
more and more people and down down down went the stats.

A survey of any activity, requesting a list from each member of the  company
answering the question, "What  are  the  valuable  final  products  of  this
company?" can reveal much and can show that many are  setting  policies  and
doing things in the company name which have no real  relation  to  what  the
company  is  doing  and  therefore  drive  the  activity  in  contrary   and
conflicting directions.

After all it is the crew, staff members and workers who do  the  work.  When
they have to set their own policy and use their own ideas  of  the  valuable
final products, you can get a lot  of  conflicts  and  upsets  which  should
never exist.

Make no  mistake:  An  activity  can  be  totally  unmanageable  and  become
nonviable over just these points. Possibly all labor-management upsets  come
from them.

1.    Policy is set by top management after experience and  agreed  upon  by
others. Where policy is needed it should be requested from the top, not  set
independently by the supervisors or workers.

2.    The valuable final products of an activity must be very carefully
surveyed, established and clearly released at policy level AS POLICY.

Anarchy appears to fail (as it did before the Spanish revolution  1936)  and
strong  central  management  succeeds  around  this  one  point  of  policy.
Everyone sets his own in an anarchy. Businesses succeed only on  that  point
and the precise establishment of valuable final products.

When the exact valuable final products are known and agreed upon, only  then
does successful group action become possible.

The car industry looks easy. The  valuable  final  product  is  a  car.  But
automotive labor and unions have not agreed to that. Their  "valuable  final
product" is "a  big  pay  check."  This  one  point  damaged  and  may  have
irreparably destroyed the US  economy  in  1970  when  General  Motors,  the
country's largest industry, had a walkout and layoff.

369



Failing to  handle  this  one  point  GM  management  was  failing  duty  as
management (they lost  their  general  manager  last  year  due  to  a  Ford
maneuver of hiring him over, then firing him). Labor  in  this  case  ruined
their future pay checks and lost thousands of jobs.

Forty years ago a similar inability to set policies and  establish  valuable
final products began to wipe out the coal industry in the US. Under  a  John
L. Lewis, the miners made coal mining economically  impossible.  Management,
mostly absentee and careless, half a century before that had begun  to  make
errors, run unsafe mines and look on an appearance in  society  pages  as  a
valuable final product. Today "Appalachia" is a  ruined  poverty  area.  And
oil is the fuel-of which there is little compared to US domestic coal.

So do not discount these two points. They are capable of  wicked  backlashes
when not done right. They are the WHY of not only organization failures  but
also the failures of civilizations.

PRECISE WORDING

The valuable final products of any activity small  or  large  must  be  very
precisely and totally listed and totally continually posted.

The valuable final products of a division should be on the org  board  under
the division and the valuable final products of the org  should  be  on  the
org board in a glaring red list.

Let us take a college. US  colleges  and  others  are  so  clouded  up  with
"government projects" and "scientific findings" and "published  papers"  and
"sport wins" and "general public awe of their greatness' , ' that they  have
pretty well forgotten a "welltrained and successful student in the field  of
his major." So the student body product becomes "revolt."  And  the  college
product becomes "???" in the public mind. I do  not  speak  idly.  The  very
last thing a college wants  in  a  student  is  one  who  is  an  individual
success. A downtrodden anonymous  member  of  some  industrial  team  or  an
underpaid professor is about as high as a college will tolerate  from  their
student bodies according  to  surveys.  For  several  hundred  years,  since
Francis Bacon (1561--1626) in fact, there has been no  renowned  philosopher
who has not been eased carefully out of his college long before  graduation.
The list exceptions are tame sellouts like Dewey, part of the Leipsic  death
camper crew.

So here  is  civilization  at  risk.  The  valuable  final  product  of  its
educational institutions is not stated  and  is  neglected  in  favor  of  a
multitude of false or valueless  products.  They  are  not  known  by  their
students but by their arrogance and political connections. This is not  idle
data. Failure to understand this  fact  of  valuable  final  products  began
around 1862 the downfall of imperial  Russia,  spearheaded  by  its  college
students. Having no real valuable final product, clearly stated  and  agreed
upon, opens the door to conflict not only in the company but  in  the  state
and the entire civilization. (Granted, imperial Russia stank,  which  is  my
exact point. So did Stalinism.)

Studying  back  and  forth  over  history,  poking  about  in   old   ruins,
remembering, adding it up, the apparent causes of organizational decay are

(a)   Failure to have an informed, trained top management capable of
setting real policy in accordance with the need of the organization.

(b)   Failure of top management to set policy.

(c)   Company members, supervisors and workers setting their own policy  out
of agreement with or in ignorance of  the  needs  of  the  organization  and
themselves.

(d)   Failure of top management to wisely, completely and precisely
establish the valuable final products of the activity.

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(e)   Ignorance of or disagreement with the valuable final products by
workers and company members.

In a much more general sense we would have

A.    Unwise or unset policy.

B.    Unreal or unstated or undone valuable final products.

These apply to any organizaton of any size. The most flagrant offenders  are
governments. I have never met a political leader or police officer  who  had
a clue about valuable final products of the state. You or I might feel  that
"public safety" was a valuable final  product  of  police,  but  the  police
don't say so.

In amongst psychiatry I have  worked  for  hours  trying  to  make  numerous
psychiatrists state what they were trying to accomplish. I have  never  even
gotten one to hazard even a suggestion of why  he  was  doing  what  he  was
doing, much less say "a cured patient" or "a safeguarded society."

The confusion on these points of valid policy and valuable final product  is
so great in the world of this writing as to be intolerable.

So do not feel strange that in our early organizations it has been  hard  to
handle things-they were cheek by jaw with a society that believed  itself  a
jungle and where "moral" standards were being set by the  psychiatrists  who
gave the world Hitler and twelve million exterminated Germans.

When the society  goes  in  this  direction  (war,  murder,  psychiatry)  it
conceives its valuable final product to be dead men.

Thus it is very, very important for us to  get  these  hitherto  obscure  or
unidentified principles up into the light  where  they  belong  and  to  USE
them.

I .   The beings of top management must be fully  informed  and  capable  of
setting or knowing and publishing policy according to  the  need  (including
viability) of the organization which  will  be  agreed  upon  by  the  whole
activity. This means an informed, trained top management  and  includes  org
management.

2.    Top management and managers must KNOW policy and be able to set or
request policy where it is unknown or nonextant.

3.    All  members  (top  management,  managers,  supervisors,  technicians,
workers) must understand the mechanisms of setting policy,  how  to  get  it
set, know policy that is set and know what is valid policy and who sets it.

4.    The valuable final products of an organization must be known to,
precisely and completely established, and defined by top management.

5.    The valuable final products of an activity must be known fully to  and
agreed upon by all  beings  in  the  organization  including  why,  and  the
abandonment of random products which are being done but which do not in  any
way add up to valuable final products.

ECONOMICS

The economics of any group is such that it cannot tolerate offbeat products
and remain sound. This is true of any political or commercial form, group
or commercial company.

All of the activities of a group in some way must add up to known valuable
final products of a group or it will, as an entity, shatter.

371



Even in a "moneyless state," a barter economy, this remains factual.

Western civilization and Eastern alike have decayed on  the  altars  of  war
gods. Diplomatic and political incompetence have  squandered  their  efforts
and brought  them  to  inflation  and  then  dust.  A  socialism  where  the
population goes unshod or a capitalism where a barrowload of bucks will  not
buy a loaf of bread are paying for ignorance of their actual valuable  final
products and the squandering of funds and effort on side issues.

One cannot appropriate or apportion funds without an intimate  knowledge  of
the valuable final products of the activity.

One cannot handle property unless one knows the valuable final  products  of
the activity.

One cannot assign personnel without huge waste of manpower unless one  knows
the valuable final products.

Therefore one must be able to list and know the valuable final  products  of
an activity before one can

i.    Do financial planning.

ii.   Arrange, buy or sell property.

iii.  Allocate spaces assigned for different functions.

iv.   Assign personnel.

If one tries to do these things first and  discover  final  products  later,
all efforts to organize will be canceled.

CENTRAL AUTHORITY

The valuable final products must be agreed upon and  issued  as  policy  and
additions to the list must be referred to the  policy-making  level  of  the
group before being confirmed as valid.

The aimless meanderings of contemporary societies show the absence  of  such
lists. It some time ago began to be stated and believed that  society  "just
took in each other's washing"; and  the  joke,  Parkinson's  Law,  in  which
bureaucracy multiplies automatically, both give  evidence  that  society  is
believed not to have any valuable final products even as faint  as  "a  good
life."

Individual members of a group  or  society  must  know  the  valuable  final
products of the activity and must be in some agreement with them to  have  a
successful group.

SURVEYS

Surveys of what should be  the  valuable  final  products  show  mainly  the
spirit of the matter. It  should  not  be  believed  for  a  moment  that  a
standard survey would apply: a standard survey being the adding  up  of  the
answers and taking the majority as useful.

Such a survey measures willingness concerning types or directions of
activity.

Given this, setting the exact things the group can  or  should  produce  and
wording them exactly requires a lot of looking and a lot of work.

What products of the group are economically valuable? This is the key  point
that will be overlooked.

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What, in short, can this group exchange with other groups  or  society  that
will obtain things the  group  does  not  produce?  This  is  the  heart  of
economics. The law of supply and demand applies.

This is too hard-headed an  approach  for  a  whole  group  to  decide  upon
without a great deal of personal work.

If the group has a past to assess, then it  will  previously  have  produced
products from time to time that did demonstrate  economic  value.  A  search
for and a list of these is of primary value.

If the group has no past, it has some experience available from the  society
which it can employ.

It can be taken as a rule that group members will  not  identify  or  phrase
the valuable final products. And it can be taken as  another  rule  that  it
will in the course of time lose those  products  from  its  production  that
were valuable.

Final is another word that will probably escape grasp.  Subproducts  leading
to final products will be given equal billing with the final product.

So three surveys have to be done.

What  does  the  group  think  its  final  product  should  be?  This  gives
willingness and direction.

What have been the previous valuable final product successes of  the  group?
(That did exchange with other groups  so  the  producing  group  can  obtain
things it does not produce.) This in a new group would' be a survey of  what
similar groups have produced.

There would then be a period of intense and expert work by  or  for  central
policy authority where questions like: Have times changed? Were these  items
every thoroughly offered? What was the relative  value  in  light  of  their
cost? Is recosting necessary due to money value changes? Which  ones  really
brought value back to the group from others? Can  we  still  produce  these?
Thus a list is drawn up, precisely worded.

Then the final (3rd) survey can occur. This is the  issue  of  the  reworked
list above to the group to get them to look at it from their  viewpoint  and
see if it is feasible and any points missed and  any  expert  opinion  taken
amongst the experts in the group.

The final list of valuable final products could then be drawn and issued as
policy.

A special watchdog production tally officer could then be appointed to  make
sure these valuable final products are being prepared for and produced.

Yes, it would take all that to get the list of valuable final products of
an activity.

The valuable final product list does not come wholly from top management.

The list does not come only from the group.

Major social and business catastrophes occur when (a) no  list  is  set  (b)
top management only sets the list or (c) the group sets the list up.

Phrases like "a better world" or "a big car"  or  "lots  of  customers"  are
quite incomplete and unreal. Even the words "an auditor" or "a release"  are
correct but are not fully enough  described  to  be  good  statements  of  a
valuable final product.

A notable example of all this occurred in the car industry when Edsel  Ford,
ten years ago,  did  not  survey  past  products  and  current  demands  and
produced---The

373



Edsel." Henry Ford half  a  century  earlier  had  established  the  company
products as a cheap, small rugged  automobile  that  would  put  America  on
wheels and a big, expensive car to hold up the company  image.  "The  Edsel"
went in between and millions were lost and  scores  of  dealers  were  wiped
out. No survey. No precise product.

If all this seems commercial, remember that in any civilization a group  has
to buy or acquire those  things  it  does  not  produce.  This  is  true  in
captialism, communism or tribal barter. There is no Santa Claus and  even  a
corn and games welfare state can go broke and always has.

Thus the valuable final product of a  group  must  be  valuable  to  another
group or individuals in society around it and sufficiently so  that  it  can
receive in return things it wants or needs but  does  not  produce.  And  it
must DELIVER its valuable final product, a point most often missed.

A group of knights in a castle on a hill had protection for the  peasant  as
a valuable final product. When they ceased to deliver and used  only  threat
and robbery the peasant eventually invented  a  longbow  whose  arrow  could
penetrate armor and knighthood was no longer in flower.

All this is really quite simple. It is even in the Factors.

L. RON HUBBARD

Founder

LRH:rr.rd.gm Copyright 10 1970

374



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 6 DECEMBER 1970

Remimeo

Dept 14 Hats

Personnel Series 13

Org Series 18

THIRD DYNAMIC DE-ABERRATION

The exact mechanism of 3rd dynamic (group  or  organization)  aberration  is
the conflict of COUNTER-POLICY.

Illegal policy set at unauthorized levels jams the actions of  a  group  and
IS responsible for the inactivity, nonproduction or lack of team spirit.

Counter-policy independently set jams the group together  but  inhibits  its
operation.

Out-reality on org  bds,  hats,  etc.,  is  to  a  large  degree  caused  by
disagreements and conflicts which are caused by illegal policy.

If we had a game going in which each player set his own rules,  there  would
be no game. There would only be argument and conflict.

VARIETIES OF COUNTER-POLICY

At the start it must be  assumed  or  effected  that  there  is  someone  or
somebody to set authorized policy for the group. Absence  of  this  function
is an invitation to random policy and group conflict and disintegration.  If
such a person or body exists, new proposed policy must be referred  to  this
person or  body  and  issued,  not  set  randomly  at  lower  levels  or  by
unauthorized persons.

Policies so set by the policy authority must be  informed  enough  and  wise
enough to forward the group purpose and to  obtain  agreement.  Ignorant  or
bad policy even when authorized tends  to  persuade  group  members  to  set
their own random policy.

When no policy at all exists random policy occurs.

When policy exists but is not made known, random policy setting will occur.

Ignorance of policy, the need or function of it, can cause random policies,

Hidden not stated random policies can conflict.

Correct policy can be relayed on a cutative basis-a few words left off or  a
qualifying sentence dropped which makes policy incorrect or null.  "Children
may not go out"  can  be  made  out  of  "Children  may  not  go  out  after
midnight."

Altered policy can be limitless in error.

Attributing a self-set policy to the  authorized  source  can  disgrace  all
policy as well as pervert the leadership purpose.

Policy can be excluded from a zone of a group that  should  be  governed  by
it. "Pipe-making policy does not apply to the small pipe shop."

Such masses of unnecessary policy can be issued that it cannot be
assimilated.

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Policy can exist in large  amounts  but  not  be  subdivided  into  relevant
subjects as is done in hat checksheets.

Disgrace of policy can occur in a  subsequent  catastrophe  and  render  any
policy disgraceful, encouraging self-set policy by each group member.

CLEARING A GROUP

All authorized policy must be set or made  available  in  master  books  and
adequate complete policy files. This makes it possible to compile  hats  and
checksheets and issue packs.

Group surveys of "What policy are you operating on?" can reveal random
policy.

All bugged (halted) projects can be surveyed for illegal policy and  cleaned
up and gotten going again.

Other actions can be taken all of which add up to

1.    Get existing policy used.

2.    Get areas without policy crisply given policy from the authorized
source.

3.    Debug all past projects of false policy.

4.    De-aberrate group members as per the Organization Misunderstoods PL
and other materials.

5.    Educate the group members concerning policy technology.

6.    Set up systems that detect, isolate and report out-policy and get it
corrected and properly set, issued and known.

7.    Monitor any new policy against statistics and include policy
outnesses as part of all statistical evaluations.

ADMIN SCALE

I have developed a scale for  use  which  gives  a  sequence  (and  relative
seniority) of subjects relating to organization.

GOALS

PURPOSES

POLICY

PLANS

PROGRAMS

PROJECTS

ORDERS

IDEALSCENES

STATS

VALUABLE FINAL PRODUCTS

This scale is worked up and worked down UNTIL IT  IS  (EACH  ITEM)  IN  FULL
AGREEMENT WITH THE REMAINING ITEMS.

In short, for success, all these items in the  scale  must  agree  with  all
other items in the scale on the same subject.

Let us take "golf balls" as a subject for the scale. Then  all  these  scale
items must be in agreement with one another on the subject  of  golf  balls.
It is an interesting exercise.

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The scale also applies in a destructive subject. Like "cockroaches."

When an item in the scale is not aligned with the other items,  the  project
will be hindered if not fail.

The skill with which all these items in any activity are aligned and  gotten
into action is called MANAGEMENT.

Group members only become upset when one or more of  these  points  are  not
aligned to the rest and at least some group agreement.

Groups appear slow, inefficient, unhappy, inactive or quarrelsome only  when
these items are not aligned, made known and coordinated.

Any activity can  be  improved  by  debugging  or  aligning  this  scale  in
relation to the group activity.

As out-reality breeds out-comm, and out-affinity,  it  follows  that  unreal
items  on  the  scale  (not  aligned)  produce  ARC   breaks,   upsets   and
disaffection.

It then follows that when these scale  items  are  well  aligned  with  each
other and the group there will be high reality, high communication and  high
affinity in the group.

Group mores aligned so and followed by the group gives one an ethical  group
and also establishes what will then be considered as  overts  and  withholds
in the group by group members.

This scale and its parts and ability to line them up are  one  of  the  most
valuable tools of organization.

DEBUG

When orders are not complied with and projects do not come off,  one  should
DETECT, ISOLATE and REPORT and handle or see that it is handled, any of  the
scale items found random or counter.

If any item below POLICY is  in  trouble-not  moving-one  can  move  upwards
correcting these points, but  certainly  concentrating  on  a  discovery  of
illegal or counterpolicy. Rarely it occurs some old but legal  policy  needs
to be adjusted. Far more commonly policy is being set  by  someone  verbally
or in despatches, or hidden, that is bugging any item  or  items  below  the
level of policy.

So the rule is that  when  things  get  messed  up,  jammed  up,  slowed  or
inactive or downright destructive (including a product as an overt act)  one
sniffs about for random or counter-policy illegally being set in  one's  own
area or "out there."

Thus in the face of any outness one DETECTS-ISOLATES-REPORTS and handles  or
gets handled the out-policy.

The detection is easy. Things aren't moving or going right.

The isolation is of course a WHAT POLICY that must be found and WHO set it.

Reporting it would mean to HCO.

Handling it is also very easy and would be done in Qual.

This admin tech gives us our  first  3rd  dynamic  de-aberrater  that  works
easily and fast.

Why?

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Well, look at the Admin Scale. Policy is just below purpose.

Purpose is senior to policy.

The person who is setting random or counter  illegal  policy  is  off  group
purpose. He is other-purposed to greater or lesser degree.

From 1960 to 1962 1 developed a vast  lot  of  technology  about  goals  and
purposes. If we define a goal as a whole track long, long-term matter and  a
purpose as the lesser goal applying to specific activities  or  subjects  we
see clearly that if we clean up a person's purposes relating to the  various
activities in which he is involved and on the eight dynamics we will  handle
the obsession to set random or counter-policies!

So it is an auditing job and the tech for it is extensive. (The African  ACC
was devoted to this subject. Lots of data exists on it.)

It happens however that around 20% (probably more) of  any  group's  members
are actively if covertly anti-group and must be handled at a  less  profound
level under "personal aberration" in the Org  Misunderstoods  policy  letter
before you can begin to touch purpose.

Thus any group member, since this tech  remedy  helps  them  all,  would  be
handled with

1.    General case de-aberration (called LlOs on Flag).

2.    Purpose handling for posts.

3.    Org bd, hatting and training.

Those setting random or counter-purpose later  detected  would  get  further
no. 2 and no. 3.

As the universe is full of beings and one lives with them whether  he  likes
it or not, it would be to anyone's interest to be able to  have  functioning
groups.

The only way a group jams up and (a) becomes difficult to live in,  and  (b)
impossible to fully separate from, is by random and counter-purposes.

If one thinks he can go off and be alone anywhere in this universe he is
dreaming.

The first impulse of a hostile being is "to leave" a decent group. What a
weird one.

The only reason he gets in jams is his inability to tolerate or handle
others,

There's no road out for such a being except through.

Thus all we can do to survive even on the first dynamic is to  know  how  to
handle and be part of the third or fourth dynamic and clean it up.

Probably the reason this universe itself is considered by some as a trap  is
because their Admin Scale is out,

And the only reason this universe is sometimes a trial  is  because  no  one
published its Admin Scale in the first place.

All this is very fundamental first dynamic tech and third dynamic tech.

It is the first true group technology that can fully de-aberrate and  smooth
out and free within the group every group member and the group itself.

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Thus, combined with auditing tech, for the first time we can rely wholly on
technology to improve and handle group members and the group itself toward
desirable and achievable accomplishment with happiness and high morale.

Like any skill or technology it has to be known and done and continued in
use to be effective.

The discovery, development and practical use of this data has made me very,
very cheerful and confident and is doing the same thing on the test group.

I hope it does the same for you.

L. RON HUBBARD

Founder

LRH:nt.rd.ts.gm

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                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 DECEMBER 1970

Remimeo

                             Personnel Series 14

                                Org Series 19

GROUP SANITY

The points of success and failure, the make and break items of an
organization are

1. HIRING

2. TRAINING

3. APPRENTICESHIPS

4. UTILIZATION

5. PRODUCTION

6. PROMOTION

7. SALES

8. DELIVERY

9. FINANCE

10. JUSTICE

11. MORALE

These eleven items MUST AGREE WITH AND BE IN LINE WITH THE ADMIN SCALE  (Org
Series 18).

Where these subjects are not well handled and where one  or  more  of  these
are very  out  of  line,  the  organization  will  suffer  a  third  dynamic
aberration.

This then is a SANITY SCALE for the third dynamic of a group.

The group will exhibit aberrated symptoms where one or more of these  points
are out.

The group will be sane to the degree that these points are in.

Internal stresses of magnitude begin to affect every member of the group  in
greater or lesser degree when one or more of these items  are  neglected  or
badly handled.

The society at large currently has the majority of these points out.

These elements become aberrated in the following ways:

1. HIRING

The society is running a massive  can't  have  on  the  subject  of  people.
Automation and employment penalties  demonstrate  an  effort  to  block  out
letting  people  in  and  giving  them  jobs.  Confirming  this  is  growing
unemployment and fantastic sums for welfare-meaning  relief.  Fifty  percent
of America  within  the  decade  will  be  jobless  due  to  the  population
explosion without a commensurate expansion in production. Yet production  by
US presidential decree is being cut back. War, birth  control,  are  two  of
380



many methods used to reduce population. THIS THIRD DYNAMIC PSYCHOSIS IS A
REFUSAL TO EMPLOY PEOPLE. EXCLUSION OF OTHERS IS THE BASIC CAUSE OF WAR AND
INSANITY.

2. TRAINING

Education has fallen under the control of one-worlders,  is  less  and  less
real. Data taught is being taught less well.  Less  data  is  being  taught.
School and college unrest reflect this.  Confirmation  is  the  deteriorated
basic education found in teenagers such as writing. Older  technologies  are
being lost in modern rewrites. THIS THIRD  DYNAMIC  PSYCHOSIS  IS  A  COVERT
REFUSAL TO TRAIN.

3. APPRENTICESHIPS

The most  successful  industries,  activities  and  professions  of  earlier
centuries were attained by training the person as an apprentice,  permitting
him to understudy the exact job he would  hold  for  a  long  period  before
taking the post. Some European schools are seeking to revive this but  on  a
general basis, not as an apprentice system. A THIRD DYNAMIC PSYCHOSIS  IS  A
DENIAL OF ADEQUATE EXPERIENCE TO SUCCEED.

4. UTILIZATION

In industries, governments and  armed  services  as  well  as  life  itself,
personnel are not utilized. A man trained for one thing is  required  to  do
something else. Or his training is not used. Or he is not  used  at  all.  A
THIRD DYNAMIC PSYCHOSIS IS FAILURE TO UTILIZE PEOPLE.

5. PRODUCTION

Modern think is to reward downstats. A  person  is  paid  for  not  working.
Governments who produce nothing employ  the  most  people.  Income  tax  and
other current practices penalize production. Countries which produce  little
are  given  huge  handouts.  War  which   destroys   attains   the   largest
appropriations. A THIRD DYNAMIC PSYCHOSIS IS TO PREVENT PRODUCTION.

6. PROMOTION

Promotion activities are subverted to unworthy  activities.  True  value  is
seldom promoted. What one is actually achieving  gets  small  mention  while
other things are heavily promoted. Reality and PR  are  strangers.  A  THIRD
DYNAMIC PSYCHOSIS IS UNREAL OR NONFACTUAL PROMOTION.

7. SALES

Sales actions are unreal or out of balance. Clumsy or  nonfunctioning  sales
activities penalize producers and consumers. In areas of high demand,  sales
actions are negligible even when heavy advertising exists.  This  is  proven
by the inability to sell what is produced even in large  countries  so  that
production cutbacks are  continual  threats  to  economies  and  workers.  A
population goes half-fed in times  of  surplus  goods.  With  curtailed  car
factories a nation drives old cars. With  a  cutback  construction  industry
people live in bad  houses.  Sales  taxes  are  almost  universal.  A  THIRD
DYNAMIC PSYCHOSIS IS THE  IMPEDING  OF  PRODUCT  DISTRIBUTION  TO  POTENTIAL
CONSUMERS.

8. DELIVERY

Failure to deliver what is offered is standard procedure for groups  in  the
humanities. Commercially it is well in hand.

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9. FINANCE

One's own experience in finance is adequate to demonstrate the  difficulties
made with money. A THIRD DYNAMIC PSYCHOSIS IS THE PERVERSION OF FINA NCE.

10. JUSTICE

Under the name of justice, aberrated Man accomplishes fantastic  injustices.
The upstat is hit, the downstat let go. Rumors  are  accepted  as  evidence.
Police forces and power are used to ENFORCE the injustices contained I to  9
above. Suppressive justice is used as an ineffectual  but  savage  means  of
meeting situations actually caused by the  earlier  listed  psychoses.  When
abuses on  I  to  9  make  things  go  wrong,  the  social  aberration  then
introduces suppressive injustices as an effort to cure. Revolt and  war  are
magnified versions of injustices. Excess people-kill them off in  a  war.  A
THIRD DYNAMIC PSYCHOSIS IS THE SUBSTITUTE OF VIOLENCE FOR REASON.

11. MORALE

A continuous assault on public morale occurs in the press and  other  media.
Happiness  or  any  satisfaction  with  life  is  under  continuous  attack.
Beliefs, idealism, purpose, dreams, are assaulted. INSANITY IS A REFUSAL  TO
ALLOW OTHERS TO BE, DO OR HAVE.

Any action which would lead to a higher morale has to  be  defended  against
the insane few. A THIRD DYNAMIC PSYCHOSIS IS A DETESTATION OF HIGH MORALE.

The COMMON DENOMINATOR of all these insanities is the desire to SUCCUMB.

Insanities have as their end product self or group destruction.

These eleven types of aberration gone mad are the main points through  which
any group SUCCUMBS.

THEREFORE, these eleven points kept sane guarantee a group's SURVIVAL.

EXAMPLES

Seeing all this in one example permits one to see that these  third  dynamic
insanities combine to destroy.

A. Believing it impossible to obtain money or make it, a  firm  cannot  hire
enough people to produce. So has little to sell,  which  is  badly  promoted
and is not sold so it has no money to hire people,

B. Needing people for another job the firm robs  them  from  a  plant  which
then collapses and fails to make money so no new people can be  hired.  This
reduces production so people have to be dismissed as they can't be paid.

C. Persons are in the firm but are kept doing the wrong things so  there  is
little production and no promotion or sales so there  is  no  money  to  pay
them so they are dismissed.

D. A new product is put in. People to  make  it  are  taken  from  the  area
already making a valuable product which then collapses that area  and  there
is not enough money to promote and selling fails so people are dismissed.

The examples are many. They are these same eleven group insanities  in  play
upon a group, a firm, a society.

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SANITY

If this is a description of group aberration, then it gives the keys to
sanity in a

group.

1. HIRING

Letting people INTO the group at large is the key to  every  great  movement
and bettered culture on this  planet.  This  was  the  new  idea  that  made
Buddhism the strongest civilizing influence the world has seen in  terms  of
numbers and terrain. They did not exclude.  Race,  color,  creed,  were  not
made bars to membership in this great movement.

Politically the strongest country in the world was the  United  States,  and
it was weakened only by its efforts to exclude certain races  or  make  them
second-class citizens. Its greatest internal war  (1861-65)  was  fought  to
settle this point, and the weakness was not resolved even then.

The Catholic Church only began to fail when it began to exclude.

Thus inclusion is a major point in all great organizations.

The things which set a group or organization on a course  of  exclusion  are
(a) the destructive impulses of about 10 or 15% of the society (lunacy)  and
(b) opposition by interests which  consider  themselves  threatened  by  the
group or organization's potential resulting in infiltration (c)  efforts  to
mimic the group's technology destructively and set up rival groups.

All these three things build up barriers that a  group  might  thoughtlessly
buy and act to remedy with no long-range plans to handle.

These stresses make a group edgy and combative. The organization then  seeks
to solve these three points by exclusion, whereas its growth depends  wholly
upon inclusion.

No one has ever solved these points successfully  in  the  past  because  of
lack of technology to solve them.

It all hinges on three points: (1) the sanity of  the  individual,  (2)  the
worthwhileness  of  the  group  in  terms  of  general  area,  planetary  or
universal survival, and (3) the  superiority  of  the  group's  organization
tech and its use.

Just  at  this  writing,  the  first  point  is   solved   conclusively   in
Scientology. Even hostile and destructive personalities wandering  into  the
group can be solved and, due to the basic nature of  Man,  made  better  for
the benefit of themselves and others.

The worthwhileness of the  organization  is  determined  by  the  assistance
given to general survival by the group's products  and  the  actual  factual
delivery of those valid products.

The superiority of a group's admin tech- and  its  application  is  at  this
current writing well covered in current developments.

Thus inclusion is almost fully attainable. The only  ridges  that  build  up
are the short-term defense actions.

For instance, Scientology currently  must  fight  back  at  the  death  camp
organizations of psychiatry whose solution is a dead  world,  as  proven  by
their actions in Germany before and during World War 11. But  we  must  keep
in mind that we fully intend to reform and salvage even these opponents.  We
are seeking to include them in the  general  survival  by  forcing  them  to
cease their nonsurvival practices and overcome their gruesome group past.

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There are  two  major  stages  then  of  including  people-one  is  as  paid
organization personnel and one as unpaid  personnel.  BOTH  are  in  essence
being "hired." The pay differs.  The  wider  majority  receive  the  pay  of
personal peace and effectiveness and a better world.

The org which excludes its own field members will fail.

The payment to the org of money or the money payment to the staff member  is
an internal economy. Pay, the real pay, is a better personal survival and  a
world that can live.

Plans of INclusion are successful. They sometimes contain defense  until  we
can include.

Even resistance to an org can be interpreted as a future  inclusion  by  the
org. Resistance or opposition  is  a  common  way  point  in  the  cycle  of
inclusion. In an organization where  everyone  wins  eventually  anyway  the
senselessness of resistance becomes apparent even to the most  obtuse.  Only
those  who  oppose  their   own   survival   resist   a   survival-producing
organization.

Even in commercial companies the best organization  with  the  best  product
usually finds competitors merging with it.

2. TRAINING

Basic training, hats, checksheets and packs MUST exist for every  member  of
a group.

Criminal or antisocial conduct occurs where there is no hat.

Any type of membership or role or post in  the  whole  organization  or  its
field requires individual and team training. Only where  you  have  a  group
member who will not or cannot bring himself to have and wear a hat will  you
have any trouble.

This is so true that it is the scope of personnel enhancement.

Ask yourself "Who isn't trained on his post and hatted?" and you can  answer
"Who is causing the trouble?"

Basic training, slight or great, is vital for every member of a group, paid
or unpaid.

A field auditor must have a hat. A student needs a student hat, etc., etc.

This requires training.

Training begins in childhood. Often it has to be reoriented.

Training as a group member must be done.

Training in exact technology or in the precise tech  of  admin  is  not  the
first stage of training. Basic training of  group  members,  no  matter  how
slight, must exist and be done.

Otherwise group members lack the basic points of  agreement  which  make  up
the whole broad organization and its publics.

Training must be on real materials and must be rapid. The technology of  how
to train is expressed in speed of training.

The idea that it take 12 years to make a mud pie maker  is  false.  TIME  in
training does not determine quality of  training.  Amount  of  data  learned
that can be applied and skills successfully drilled determine training.

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That the society currently stresses time is an aberrated factor.

The ability to learn and apply the data is the end product of training. Not
old age.

The rate of training establishes to a marked degree the expansion factor  of
a group and influences the smoothness of the group during expansion.

If training is defined as making a person or team into a part of  the  group
then processing is an influencing factor. The facilities for processing  and
quantity available are then a determining factor in group expansion.

3. APPRENTICESHIP

Training on post is a second stage of any training-and processing-action.

This is essentially a familiarization action.

To  have  a  person  leave  a  post  and  another  take  it  over  with   no
"apprenticeship" or groove-in can be quite fatal.

The deputy system is easily the best system. Every post is  deputied  for  a
greater or lesser period before the post is turned over and the  appointment
is made. When the deputy is totally familiar he becomes the  person  on  the
post.

Rapid expansion and economy on personnel tend to injure this step.  Lack  of
it can be very destructive.

Optimally there should be one or two deputies for  every  key  post  at  all
times. This is a continual apprenticeship system.

Economically it has limitations. One has to weigh the losses  in  not  doing
it against the cost in doing it. It will be found that the  losses  are  far
greater than the cost, even though it increases  personnel  by  at  least  a
third for a given organization.

When an organization has neglected it as a system (and has turned  over  too
many posts without deputy or apprenticeship action) its economics may  decay
to where it can never be  done.  This  is  almost  a  death  rattle  for  an
organization.

In a  two-century-old,  highly  successful  industry,  only  the  apprentice
system was and is used (Oporto wine industry). The quality  of  the  product
is all that keeps the product going on the  world  market.  If  the  quality
decayed the industry  would  collapse.  Apprenticeship  as  a  total  system
maintains it.

Certainly every executive in an  organization  and  every  technical  expert
should have a deputy in training. Only then could  quality  of  organization
be maintained and quality of product guaranteed.

The total working organization  should  be  on  this  system  actually.  And
whenever a person is moved up off a post, the  deputy  taking  over,  a  new
deputy should be appointed. The last step (appointment of a new  deputy)  is
the one that gets forgotten.

Failure to recruit new people over a period will very surely find the  whole
organization declining soon solely because there is no apprentice system  of
deputies. The organization expands, singles  up  the  posts,  promotes  some
unapprenticed people and begins to lose  its  economic  advantage.  Low  pay
ensues, people blow off, and then no one can be hired. It's a  silly  cycle,
really, as it is prevented easily enough by hiring enough soon  enough  when
the org is still doing well.

The rule is DEPUTY EVERY POST AND NEWLY DEPUTY THEM WHEN PROMOTIONS OCCUR.

The most covert way to get around this is just to call each person's junior
a deputy

385



even though he has other duties. This makes it  all  look  good  on  an  org
board. "Do you have each post deputied?" "Oh  yes!"  But  the  deputies  are
just juniors with posts of their own.

A deputy is used to run the same post as it is deputied for.  This  means  a
double posting pure and only.

You'd be amazed at how much production an executive post  can  achieve  when
it is also deputied and when the principal holder of the post will  use  the
deputy and gen him in, not get him to cover an empty lower post.

4. UTILIZATION

People must be utilized.

Equipment must be utilized.

Space must be utilized.

Learning to USE is a very  hard  lesson  for  some.  Untrained  people,  bad
organization, poor machinery, inadequate space all  tend  to  send  one  off
utilization.

The rule is, if you've got it use it; if you can't use it get rid of it.

This most specifically applies to people. If you've got a man, use  him;  if
you can't use him get him over to someone who  can  use  him.  If  he  isn't
useful, process and train.

Anyone who can't figure out how to  use  people,  equipment  and  spaces  to
obtain valuable final products is not worthy of the name of executive.

Reversely we get what an executive or foreman is-an executive or foreman  is
one  who  can  obtain,  train  and  use  people,  equipment  and  spaces  to
economically achieve valuable final products.

Some are very skilled in preparing people, systems, equipment, property  and
spaces to be used. But if these then go to someone who  does  not  USE  them
you get a bad breakdown.

The welfare state and its inflation is a sad commentary on "executive
ability."

An executive whose people are idle and  whose  materiel  is  decaying  is  a
traitor to his people and the org, just that, for he will destroy them all.

UTILIZATION requires a knowledge of what the  valuable  final  products  are
and how to make them.

Action which doesn't result in a final product  that  adds  up  to  valuable
final products is destructive, no matter how innocent it seems.

Man has a planet as a valuable final product. Improper use of the  countries
and seas, air and masses which compose it will wind up with the  destruction
of Man, all life  on  it  and  the  usefulness  of  the  planet.  So  proper
utilization of anything is a very real factor.

The  19th  century  industrialist,  like  the  mad  kings  who  built  great
structures, used up men; they didn't properly use men.

And not using them at all, the current fad, is the most deadly of all.

UTILIZATION is a big subject. It  applies  to  resources,  capabilities  and
many other factors.

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The question being  asked  in  all  cases  is,  "How  can  we  USE  this  to
economically obtain a valuable final product?"

Failing to answer that question gives one the "mysteries of life."

5. PRODUCTION

One may be prone to believe there is no sense  in  any  production  at  all.
Such a one would also be likely to say, "There is no sense at all."  Or  "If
they keep on producing it will become impossible to destroy it all."

Production of some final valuable product is the chain of all production
sequences.

Even the artist is producing a reaction. The reaction's service in  a  wider
sphere to enforce it is what gives art its sense. A  feeling  of  well-being
or grandeur or lightheartedness are legitimate valuable final products,  for
instance.

The production areas and activities of an  org  that  produce  the  valuable
final products are the most important areas and activities of the org.

6. PROMOTION

The acceptance of valuable final products and of their value  depends  in  a
large degree upon (a) a real value and (b) a desire for them.

Promotion creates desire for the valuable final product.

The old saw that the man who builds a better mousetrap will have  the  whole
world coming to his door is a total falsity.

Unless the value is made known, and the desire created, the  mousetraps  are
going to go unsold.

Promotion is so important that it can  stand  alone.  It  can  have  limited
success even when there is no product! But in that case it will be of  short
duration.

Promotion must contain reality and the  final  product  must  exist  and  be
deliverable and delivered for promotion to be fully successful.

Public relations and advertising and all their skills cover this area of
promotion.

7. SALES

It is hard to sell what isn't promoted and can't be delivered.

Economics greatly affect selling.

Anything must be sold for a price comparable to its value  in  the  eyes  of
the purchaser.

COSTING is a precise art by which the total  expenses  of  the  organization
administration and production must be  adequately  covered  in  the  PRICING
allowing for all losses and errors in delivery and  adequate  to  produce  a
reserve.

PRICING (the amount being asked) cannot be done without  some  idea  of  the
total cost of the final valuable product.

The sale price of one final valuable product may have to cover the  cost  of
producing other products which are delivered without price.

PRICING however does not necessarily limit itself to only covering
immediate

387



cost of a product. A painting with a dollar's worth of paint and canvas  may
have a price of half a million dollars.

Also a painting used in promotion  may  cost  two  hundred  dollars  and  be
displayed at no cost at all to the beholder.

These relative factors also include the SKILL of the  salesman  himself  and
there is much technology  involved  in  the  act  of  selling  something  to
someone and the world abounds in books on the subject.

Therefore sales (once promotion is done) are bound  up  really  in  COSTING,
PRICING AND SELLING.

The value in the eye of the purchaser is monitored by the desire created  in
him for it. If this is also a real value and  if  delivery  can  occur  then
SELLING is made very easy-but it is still a skilled action.

The production of a valuable final product is often  totally  determined  by
whether or not it can be sold. And if it can be  sold  at  a  price  greater
than the cost of delivering it.

That it gets sold depends on the salesman.

The skill of the salesman is devoted to enhancing the desire  and  value  in
the eyes of the buyer and obtaining adequate payment.

8. DELIVERY

The subject and action of DELIVERY is the most susceptible to  breakdown  in
any organization. Any flaw  on  the  sequence  of  actions  resulting  in  a
valuable final product may deteriorate it or bar off final delivery.

There are many preparatory or hidden-from-public-view steps on a  production
line. When any of these break down, delivery is imperiled.

Given the  raw  materials  and  wherewithal  to  make  some  valuable  final
product, the valuable final product should occur.

WHEN  A  VALUABLE  FINAL  PRODUCT  DOES  NOT  GET  PRODUCED  AND  CANNOT  BE
DELIVERED, REPAIR THE EARLIER STEPS OF ITS PRODUCTION.

Example: An auditing result is not delivered.  Don't  just  repair  the  pc.
Repair training of auditors and C/Ses. Repair the assembly line  before  the
valuable final product. The subproducts are less visible. Yet  they  add  up
to the valuable final product.

THE LAW OF THE IRREDUCIBLE MINIMUM occurs in all delivery problems.  Someone
is trying to produce only the visible end product of a  post  or  production
line and neglects the earlier contributory actions  and  products  as  these
are not plainly visible.

When an organization or its posts operate only on  an  irreducible  minimum,
production goes bad and DELIVERY crashes.

Take a cook who has his post at an irreducible minimum.  Food  is  appearing
on the table. If he reduced just one bit more the food would  no  longer  be
edible at all. He neglects purchasing, menus  and  preparation.  That  these
occur is invisible to the diners. That food appears on the table is  visible
to the diners. If the cook operates at any less level than he is, no  edible
food would be visible-hence, irreducible minimum. The food  served  will  be
bad. But it will be visible. Invisible-to-the-diners  actions  aren't  being
done.

To improve the food, get the less visible actions done. Get the sequence  of
actions all done. The result will be improved food.

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Take training. The final valuable product is a trained auditor.  The  Course
Supervisor who runs his post on an  irreducible  minimum  is  simply  there,
appearing to supervise.

His final product may be horribly unskilled. The teaching may take
"forever."

To improve this one goes earlier  on  the  assembly  line-materials,  packs,
tapes, student tech services, recorder repair, scheduling-dozens of  actions
including getting the Course Supervisor trained.

The visibility is still a Course Supervisor and students being  taught.  But
with the whole earlier line in, the final valuable product is excellent!

A being hopes lazily for instantaneous production. It  doesn't  happen  this
way in the mest universe. Things are produced in a sequence  of  subproducts
which result in a final valuable product. Hope all you  want  to.  When  you
omit the subproducts you get no valuable final product.

When the people in an organization do not know the valuable  final  products
of the org and when a person on a post does not know the final  products  of
his post, a condition arises where no org DELIVERY  will  occur,  or  if  it
does occur it will be poor or costly. It is vital that a person  knows  what
his post final products are and  what  his  unit,  section,  department  and
division subproducts are and how his own and each  of  these  contribute  to
the valuable final products of  the  organization  for  actual  delivery  to
occur.

Delivering other than valuable final products or useless final  products  or
final products that need constant correction also adds up to nondelivery.

A whole civilization can break down around the point of DELIVERY. So can  an
organization.

Since money can be looked upon as  too  valuable  a  final  product  it  can
actually prevent DELIVERY.

Failure to deliver is the one point beings do not forgive. The  whole  cycle
hangs upon DELIVERY.

DELIVER WHAT IS PROMISED when it  is  expected,  in  sufficient  volume  and
adequate quality, is the first maxim even of a  group  in  politics  or  the
humanities.

9. FINANCE

Finance too often disregards the other factors in this scale  or  the  other
factors in this scale too often disregard finance for organizations to  long
remain viable.

Financing must be in agreement with all the other factors of this scale  and
all the other factors must be in agreement with  finance  for  viability  to
occur.

Because money is interchangeable for commodities then people can confuse  it
with too many things.

If you regard money like so many beans, as a commodity in itself,  you  open
the door to understanding it.

Money is so many beans in to get so many beans out.

When you can master this you can handle FINANCE.

The FINANCE persons of an org, a civilization, a planet, should put so  many
beans in and expect more beans out than they put in. This is  quite  correct
as a viewpoint for finance.

389



The difference of beans in and beans out for a planet is made up  by  adding
beans enough to those already in existence to cover new commodity.

When finance people fail  to  do  this  beans  cease  to  be  in  pace  with
production and inflation and deflation occur.

In an org or any of its  parts,  industriousness  of  the  staff  makes  the
difference between the beans in and beans out.

An org has to have income greater than outgo. That  is  the  first  rule  of
finance. Violating it brings bankruptcy.

Now if the FINANCE people of an org apply the  same  rule  remorselessly  to
all its transactions (financial planning) with each person and  part  of  an
org, finance becomes real and manageable.

So many beans in to support the first division means so many  beans  out  of
the org back to finance  because  of  the  cooperative  work  of  the  first
division.

A hectic effort to work only with production products will wind  finance  up
in a knot.

One has to estimate (COST) the contribution of each part of an  org  to  the
valuable final product to know what to allow what part of an org.

Finance has to have a full reality on the valuable final  products  and  the
subproducts and post products of the whole  org  to  intelligently  allocate
funds.

This person, that division, each contributes some part of  the  action  that
results in the money received for the valuable final products.

So finance can extend so  much  money  for  each  and  expect  that  and  an
additional amount back.

If this occurs, so will expansion.

Finance comes unstuck when it fails to "COST" an organization and  fails  to
support valuable final product production.

Finance must not only practice "income greater than outgo" for the  org,  it
must practice it for each part of the org as well.

Then solvency becomes real.

The greatest aberration of finance is that it  seeks  to  save  things  into
solvency. The real losses in an org are the sums never made. These  are  the
most important losses for finance to concentrate upon.

An org that makes E500 a week that should make E5000 a week in potential  is
losing the finance people E4500 a week!

Finance can force production along certain lines by  putting  in  funds  and
getting more back.

Finance becomes too easily the management of an org but it  only  does  that
when it ceases to deal in its own commodity-money.

An org which has executives unfamiliar with finance will fall at  once  into
the control of the finance people in the org. And these finance  people,  if
they don't really know money,  will  fall  at  once  under  the  control  of
outside finance people.

One has to know finance in any organization anywhere, even in  a  socialism.
Sooner or later the books get balanced in any society.

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10. JUSTICE

Without justice there can be no real organization.

Even a government owes its  people  an  operating  climate  in  which  human
transactions and business can occur.

Where insane and criminal individuals operate unchecked  in  the  community,
justice is uncertain and harsh.

The society in which the insane rise to positions of power becomes a
nightmare.

Justice is a difficult subject. Man handles it badly.

Justice cannot occur until insanity can be detected and cured.

The whole task of justice is to defend the honest man. Therefore the  target
of justice is the establishment of a sane society.

The inability to detect or cure the insane destroys civilizations.

Justice is an effort to bring equity and peace. When one cannot  detect  and
cure insanity then sooner or later justice actions will  become  unjust  and
be used by the insane.

To us, justice is the action necessary to restrain  the  insane  until  they
are cured. After that it would be only an action  of  seeing  fair  play  is
done.

11. MORALE

When all factors balance up in an org and give the group a common  direction
and mutual viability, morale can be expected to be good.

When the Admin Scale and the ten  elements  described  are  out  of  balance
(without proper importance given to each) and when  one  or  many  of  these
(Admin Scale and the elements herein described) are  not  in  agreement  one
with another, then morale will be poor.

Morale is not made of comfort and sloth. It is made of  common  purpose  and
obstacles overcome by the group.

When the Admin Scale and these elements are not  held  together  by  similar
aims, then morale has to be held up artificially.

The most ghastly morale I have ever seen was amongst "the idle rich."

And the highest morale I've ever seen was  amongst  a  furiously  dedicated,
common-purposed group working under  fantastic  stresses  with  very  little
against almost hopeless odds.

I used to observe that morale in  a  combat  unit  would  never  materialize
before they had been through hell together.

All drama aside, morale is made up of high purpose  and  mutual  confidence.
This comes from the Admin Scale items and  these  elements  of  organization
being wellaligned, one with the next, and honest sane endeavor to achieve  a
final goal for all.

L. RON HUBBARD

Founder

LRH:ms.rd.ts.gm

391



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 30 DECEMBER 1970

Remimeo

SO Member Hat

Staff Member Hat

Personnel Series 15

Org Series 20

ENVIRONMENTAL CONTROL

The differences between a competent person and  an  incompetent  person  are
demonstrated in his environment (surroundings).

A person is either the effect of his environment  or  is  able  to  have  an
effect upon his environment.

The 19th century psychologist preached  that  man  had  to  "adjust  to  his
environment." This false datum helped begin a racial degeneration.

The truth is that Man is as successful as he adjusts the environment to
him.

Being competent means the ability to control and operate the things  in  the
environment and the environment itself.

When you see things broken down around the mechanic who is  responsible  for
them, he is plainly exhibiting his incompetence-which  means  his  inability
to control those things in his environment and adjust  the  environment  for
which he is responsible-motors.

When you see the mate's boats broken up you know he does  not  have  control
of his environment.

Know-how, attention, and the desire to be effective  are  all  part  of  the
ability to control the environment.

One's "standards" (the degree of rightness one is trying  to  establish  and
maintain) are  directly  related  to  one's  desire  to  have  a  controlled
environment.

The attainment of  one's  standards  is  not  done  by  criticism  (a  human
system). It is done by exerting control  of  one's  environment  and  moving
things effectively toward a more ideal scene.

Control of the environment begins with oneself-a good  case  state,  a  body
that one keeps clean and functioning. This extends to one's  own  gear,  his
clothing, tools,  equipment.  It  extends  further  to  the  things  one  is
responsible for in the environment. Then  it  extends  out  into  the  whole
environment, the people and the mest.

One can get pretty dirty fixing things up. That's okay.  But  can  one  then
also clean oneself up?

The ability to confront mest  is  a  high  ability.  After  that  comes  the
ability to handle and control it.

The ability to confront people is also a high ability. After that comes  the
ability to get along with them and to handle and control them.

There is the supreme test of a thetan-the ability to make things go right.

The reverse of this is the effort to make things go wrong.

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Incompetence-lack of know-how, inability to control-makes things go wrong.

Given some know-how or picking  it  up  by  observation,  sane  people  make
things go right.

The insane remain  ignorant  intentionally  or  acquire  know-how  and  make
things go wrong.

Insane acts are not  unintentional  or  done  out  of  ignorance.  They  are
intentional, they are  not  "unknowing  dramatizations."  So  around  insane
people things go wrong.

One cannot tell the  difference  really  between  the  sane  and  insane  by
behavior. One can tell the difference only by the product.  The  product  of
the sane is survival. The product of the insane is an overt act. As this  is
often masked by clever  explanations  it  is  not  given  the  attention  it
deserves. The pretended good product of the insane turns out to be an  overt
act.

A large percentage of this planet's population (undetermined  at  this  time
for the "general public" but in excess of 20%) are  insane.  Their  behavior
looks passable. But their product is an overt act.  The  popularity  of  war
confirms this. The products of existing governments are mainly  destructive.
The final  product  of  the  human  race  will  be  a  destroyed  planet  (a
contaminated air cover rendering the planet unable to sustain life,  whether
by radiation or fumes).

Thus, due to the inability  to  detect  and  handle  the  insane,  the  sane
majority suffers.

The hidden actions of the insane can destroy faster than an environment  can
be created UNLESS one has the know-how of the mind and life and the tech  of
admin and the ability and know-how to handle mest.

An area or activity hit by an influx of new recruits or new customers  tends
to unsettle. Its mest gets abuse, things go out of control.

Gradually, working to put in order, the standards are again being  attained.
The minority insane get handled, the know-how of  groups  and  orgs  becomes
more generally known, the tech of mest gets used again.

As an organization expands it goes through cycles of lowered  condition  and
raised condition. This is normal enough since by taking  on  more  and  more
area one is letting in more and more insane even though they are in a  small
proportion to the sane.

Order is reestablished and survival trends resumed to the  degree  that  the
sane begin to reach out and handle things around them and as the insane  are
made sane.

Thus one gets downtrends and uptrends. As soon as a  group  begins  to  feel
cocky, it takes on more area. This includes  more  unhandled  people,  admin
and mest and a downtrend begins. Then the  sane  begin  to  handle  and  the
insane begin to be sane and the uptrend starts.

This is probably even the basis of national economic booms and depressions.

This is only bad to the degree that the insane are put in  charge.  As  soon
as this happens the downtrend becomes permanent and cultural decay sets in.

A group expanding rapidly into  a  decadent  culture  is  of  course  itself
subjected to the uptrend-downtrend cycles  and  has  to  take  very  special
measures to counteract the consequences of expansion in  order  to  maintain
any rate of growth.

The individual member of a group can measure his own progress  by  increased
ability to handle himself, his  post  and  environment  and  the  degree  of
improvement of the group itself because of his own work within it.

393



A group that is messing up its gear and environment worse than it did a
while ago and is not improving it of course has to be reorganized before it
perishes.

No group can sit back and expect its high brass to be the only ones to
carry the load. The group is composed of individual group members, not of
high brass.

The survival of a group depends upon the ability of its individual members
to control their environment and to insist that the other group members
also control theirs.

This is the stuff of which survival is made.

A sane group, knowing and using their technologies of handling men and
mest, cannot help but control their environment.

But this depends upon the individual group member being sane, able to
control his mest and those around him and using the tech of life, the tech
of admin, the tech of specific types of activity.

Such a group inevitably inherits the culture and its guidance.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

394



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 JANUARY 1971

Remirneo

Personnel Series 17

Org Series 21

DUPLICATING FUNCTIONS

All you have to do to run out of personnel, finance and  get  no  production
is to duplicate the same functions that give the same product in an org.

Take three orgs side by  side  under  the  same  management.  Only  if  each
division  of  each  org  had  entirely  different  products  would  this  be
possible.

Now let's do it wrong. Each of these 3 orgs has an HCO  and  full  personnel
duties. Each separately promotes. Each has its own finance office, each  has
its production div producing the same products. Each has its own  correction
div-the place in general would be very overmanned, yet  each  div  would  be
undermanned for its full functions. The product  would  be  terrible  if  it
existed at all. Morale would be ghastly, inter-org collisions continual.

      The right way would be to work out the different products and then
assign them

to one or another of these orgs. One org would have to be the source org
that produced

the other two. One org would have all the finance with liaison only in the
other two

orgs. One org would have to hire, hat and train with only liaison in the
other two. The

orgs would have org bds which had the function but under it would be the
note

"Liaison with    15 source org.

In the impatience and emotion of organizing one  org  tends  to  individuate
and establish a duplicate function because  "it  can't  get  service."  This
begins the catastrophe. Now they'll all begin to go broke while  having  men
bulging out of the windows.

In looking over potential insolvency, look over duplicate functions.

L. RON HUBBARD

Founder

LRH:mes.gm

395



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 25 JANUARY 1971

Remimeo

Org Series 22

SQUIRREL ADMIN

When a squirrel is given a circular wheel he  will  run  in  it  'round  and
'round and 'round. He gets nowhere,

When persons in an organization do not know organizing or  their  org  board
or hats, they go 'round and 'round and 'round and get nowhere.

There is no valuable production. There is no money.

When you have an organization that has no valuable production you know  that
the people there go 'round and 'round and 'round and get nowhere.

They are squirrel administrators.

STANDARD ADMIN

There are right ways to handle a group. This is the single fact  which  most
often escapes people attempting to handle groups.

Also, for every correct solution there can be an infinity of wrong
solutions.

The right way is a narrow trail but strong. The wrong  ways  are  broad  but
all lead into a bog.

You could "fix" a radio by hitting it with a sledge hammer, putting  a  hand
grenade in it or throwing it out of a 155th  story  window.  The  number  of
wrong ways you could "fix" it would be infinite.

Or you could find out what was  wrong  with  it  and  replace  the  part  or
properly correct it.

The difference between the wrong way and the right way is  that  the  radio,
wrongly "solved," doesn't work. The radio correctly solved works.

So the test of the wrong way or the right way is whether or  not  the  radio
then worked.

This is the basic test of all administrative solutions. DID THEY WORK?

When  experienced  persons,  working  from  basic  theory,  have  evolved  a
technique  for  handling  a  situation  which  routinely  now  handles  that
situation, we have now a STANDARD ADMINISTRATIVE ACTION.

When that situation appears, we apply that solution and the matter gets
handled.

The test is, did the solution work?

Solutions  that  work  and  are  therefore  routinely  used  to  handle  the
situation to which they apply are then called STANDARD ADMIN.

A multitude of these correct solutions are used in STANDARD ORGANIZING.  The
org board, the hats,  comm  lines,  comm  centers,  comm  baskets,  despatch
forms,  routing  forms,  inspection  actions,  promotion  actions,   central
filing, customer or visitor handling,  selling,  collecting  income,  paying
bills, inventorying, doing finance reports,

396



handling raw materials, training  persons  to  handle  and  properly  change
materials,   correcting   or   improving   staff   competence,    correcting
organizational form, inspecting  reviewing  and  handling  failed  products,
handling contacting and  converting  the  publics,  establishing  and  using
field distributors and  salesmen,  providing  public  services,  maintaining
contact  with  the  original  and  basic  technology,  handling  rivals  and
opposition, and running  the  organization  in  general  all  have  standard
actions.

Now, glancing over the above rough list, you see we have hit the high  spots
of a 21 department, 7 division org bd.

Each is a standard solution to continuing and recurring problems.

Each  contains  numerous  standard  solutions  to  the  recurring   problems
associated with them.

Underneath all this is basic theory and around it is survival and potential
success.

USE OF STANDARD ACTIONS

The difference between a successfully viable organization with cheerful  and
cared  for  staff  and  a   limping   scene   is   standard   and   squirrel
administration.

If standard admin is successful then why is it sometimes not used?

First the data has to exist, be available and known.

Next the data has to be used.

At first glance this may seem so clear-cut that it cannot go wrong. But  one
must look a bit further.

One is dealing with a variable called Man. One is working in  a  world  full
of noise and conflict.

Certain personalities do not want the group or the organization  to  succeed
(see HCOB 28 Nov 1970 Psychosis). This problem has  been  so  great  amongst
men that every historical culture-each one an organization-has  died.  About
ten to twenty percent of mankind, at a broad guess, fit into this category.

In this universe it  is  easier  to  destroy  than  to  construct.  Yet  the
survival of life forms depends on construction.

To overcome this Man has developed technology  and  the  cooperative  effort
known as organization.

The forces of the physical universe can be  channeled  and  used  only  with
technology.

The forces inherent in life  forms  can  succeed  only  when  channeled  and
aligned with one another.

Therefore, to succeed, a group must have the technology  it  uses  available
and known to it. And then use it.

From this one obtains the agreement and alignment necessary to generate  the
group action and production which brings about success.

NONCONFRONT

When a group member has the data, the bar to his using it would be  his  own
disagreement with the group succeeding or, more  frequently,  his  inability
to confront things.

EXAMPLE: Two group members are quarreling. A third  group  member  seeks  to
handle it. Even though he knows the technique (third  party  law),  his  own
inability to confront people makes him fail to use the correct solution  and
he backs off.

397



In backing off he thinks of some nonconfront nonstandard "solution" such  as
firing them.

He has become a squirrel administrator.

EXAMPLE: The plant machinery is in bad shape. It is  deteriorating  to  such
an extent that it soon will cease to run. The mechanics plead for  money  to
repair. The plant manager unfortunately  cannot  confront  machinery-he  not
only "doesn't know about it" but it frightens him. He does  not  financially
plan its full repair on a gradient back to an ideal scene. He simply  dreams
up the vague hope a  new  type  will  be  invented.  He  does  nothing.  The
machinery now costs more to run than  it  produces.  The  plant  fails.  The
plant manager was a squirrel administrator.

So we have various causes of failure:

I . A secret desire to destroy.

2.    The nonexistence of technology.

3.    Nonavailability of the technology.

4.    Ignorance of the technology even when available.

5.    Failure to apply the technology even when available and known  because
the being cannot or does not confront the people  or  the  portions  of  the
physical universe concerned.

The existence of any of these things brings a group toward squirrel
administration.

Natural cataclysms or political or social catastrophes or upheavals are  the
other two points which can bring about a  failure  but  even  these  can  be
planned for and to some degree handled. The future possiblity of these  must
also be confronted in order to be circumvented.

Any successful organization will be fought by the society's  fancied  rulers
or enemies. This is something which should be taken in stride.  The  ability
to confront these discloses that standard administrative actions  exist  for
these two.

DRILLS

Thus an administrator or  staff  member,  even  when  the  group's  tech  is
available and known, must be able to  confront  and  handle  the  confusions
which can occur and which invite a turn away and a squirrel solution.

Even this situation of the inabilities to confront and handle can be  solved
by third dynamic (group) drills and drills on the  sixth  dynamic  (physical
universe).

The  drills  would  be  practices   in   achieving   general   awareness-and
confronting and handling the noise and confusions which make  one  oblivious
of or which drive one off and away from taking standard actions.

COMPETENCE

Competence is increased in the individual and the group by successes.

Successes come from anticipating the situation and handling it.

Standard admin is the key to competence and successes in an organization.

L. RON HUBBARD

Founder

LRH:mes.rd.gm

398

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 16 FEBRUARY 1971

                                  Issue II

Remimeo

Org Series 23

LINES AND TERMINALS

There is a scale concerning lines and terminals.

ASSOCIATED TERMINALS

      Handling flows and correctly changing particles.

GROUPED TERMINALS

LINES

PARTICLES

SIGNIFICANCES

FALSE TERMINALS

MISDIRECTED LINES

WRONG PARTICLES

FALSE SIGNIFICANCES (RUMORS)

MYSTERIOUS TERMINALS

CHAOTIC LINES

MENACING PARTICLES

DANGEROUS IMPRESSIONS

NONEXISTENT TERMINALS

NONEXISTENT LINES

NONEXISTENT PARTICLES

UNCONSCIOUS IMPULSES

THE CHAOS OF UNHAPPY NOTHINGNESS

Any organization and any individual staff member  thereof  is  somewhere  on
this scale.

The trick of the scale is the awareness factor. At a position on the  scale,
the being or org is NOT AWARE of the scale levels above him.

Thus  an  organization  at  "mysterious  terminals"  is  unaware  of  "false
significances" or anything else above "mysterious terminals."  Thus  an  org
or individual at "mysterious terminals" is unaware of  any  falsity  or  any
oddity in significances or ideas.

Any level is the effect of any level ABOVE IT.

Any level is slightly at cause over any level below it.

Thus a well-organized group is not at effect and can  make  an  effect  upon
any group below it in awareness on the scale.

CAUSES

There are several causes for lower positions on the scale.

The first cause is degree  of  personal  aberration  where  a  personnel  is
willfully throwing the terminals, lines, particles  and  significances  into
disarray. Show me how he regards terminals, handles particles or routes  and
I will know how sane or crazy he is. The significances given  to  terminals,
handling particles and lines is a direct index of sanity.

399



The second cause is unawareness. Drills on lines  and  terminals  were  once
thought to improve awareness. This is no longer  held  to  be  true.  Drills
have to be done to BRING ABOUT awareness. People are not naturally aware  of
other people, lines, various  particles  or  ideas.  Due  to  a  century  of
psychological instruction from childhood that they  are  animals  and  after
thousands of years of the "upper classes" regarding  them  as  such,  people
tend to favor  a  dangerously  low  or  nonexistent  awareness.  A  sort  of
jurisprudence has been in effect that it is safer to be unaware as then  one
is "not guilty." A humanoid who has just  run  over  a  child  has  a  first
response of "I didn't see him." This is highly  nonsurvival.  If  one  never
notices safes about to fall on him  he  is  soon  dead.  And  painfully  so.
Unawareness is a sort of  blindness  where  the  person  looks  like  he  is
looking but sees nothing. Degrees of this exist. One  can  make  a  terrible
lot of errors with this. Mr. A appears  to  the  observer  to  be  noticing,
smelling things and hearing whereas he registers  no  sights,  has  a  blind
nose and tunes out all sound. "Did you read it?" "Yes." "What did  it  say?"
And you hear a lot of things then that weren't on the paper. There are  even
degrees of registry. A person appears to  see  and  yet  doesn't.  A  person
appears to see and on being asked will say what he saw but  can  be  unaware
of seeing, registering or saying he saw! This  drives  teachers  quite  mad.
One has the glib student who can parrot but cannot apply. This is a  surface
registry without awareness. Thus drills such as the  Admin  Training  Drills
or dummy runs on lines are needed to bring about awareness. A few very  sane
fortunate  fellows  can  see,  register,  understand  and  handle  correctly
without any drills at all. Others  need  drills  to  bring  about  awareness
below  a  superficial  response.  To  unaware  people,   terminals,   lines,
particles and significances just don't exist.

The third general category is delusion. One sees A and believes it to be  G.
This is a lower band of self-protection.  Some  workers  (an  awful  lot  of
them) will only take jobs which  are  mechanical  "so  they  can  daydream."
Their concept of a terminal is an altered terminal. A  line  goes  somewhere
else. A particle is something else. And an  idea  is  really  another  idea.
Such people are incapable of duplication. Say "I see  the  cat,"  they  hear
"Cars  are  dangerous."  They  aren't  really  crazy.  They  just   register
alterations of what they perceive.

The person who can attain the state of awareness of terminals as  they  are,
lines as they should be, particles as they exist and significances that  are
the intended significances are very valuable people. An ideal group  can  be
made up of such people.

CONSTRUCTIVE ACTIONS

An organization consists of terminals, lines, particles and significances.

An AGREEMENT factor has to be established and the group has to be  aware  of
it and use it.

This agreement factor would consist of

1.    Purposes of the group.

2.    A list of the hats including a short statement of the purpose and
function of each post.

3.    A full list of the particles handled by the group and the changes
expected at each point of flow.

4.    The flow lines of the particles being handled and changed.

5.    The significances (technologies) of the group to form, flow and
change particles.

If an Org Officer does not compile these five things  and  make  them  fully
known and agreed to by all in the group, no organization will form or work.

Thus the PLAN of the group has to be laid out and drilled and  known  or  no
organization will form.

400



One will just have a group of individuals colliding with each other with  no
production.

The greatest source of confusion in a group  are  intermediate  seniors  who
knock hats off faster than they can be gotten on and lines out  before  they
can  flow,  all  simply  out  of  ignorance  of  the  general  plan  of  the
organization.

Those who cannot perceive one or more of the above five points or bodies  of
data have to be drilled into awareness of them and dummy run.

Those who are quite crazy will frantically fight the hatting,  stringing  of
lines and changing of particles and will inject mad  significances  into  it
all.

So the answer to how to make a group into an organization is to  handle  the
insane one, prepare the five  layouts  named  above,  drill  and  dummy  run
everyone in the group on its entire pattern and expertly hat the  specialist
actions required at each point of change.

Then one has an organization that can produce and be viable.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

401



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 6 MARCH 1971

Remimeo

Prod OTg Hats    Org Series 24

Tech Hats

Qual Hats

      LINE DESIGN

HGC Lines, An Example

The present lines for the HGC in any org are the subject  of  HCOB  5  March
71, C/S Series 25, "The Fantastic New HGC Line," which is to  be  considered
part of this policy letter.

This modifies early Tech org boards to some extent.

The old line in '65 policy did not include a Case  Supervisor  as  such  and
shunted failed pcs to Qual Review.

Today Tech does its own pc repairs and Qual  concentrates  on  cramming  HGC
auditors as well as students. Qual can also cram the Tech C/S.

It is completely amazing that a  statistic  ceiling  on  well-done  auditing
hours delivered could not have exceeded 250-300 well-done hours  a  week  no
matter how many  auditors  were  hired  or  posted.  The  post  of  the  C/S
overloaded and the D of P post could not function well without overload.

The new line is capable of a statistic  ceiling  of  600  to  800  well-done
hours a week. After that a new second HGC is  manned  fully  and  given  new
space.

The importance of a properly formed line, traveling in correct  sequence  is
then driven home.

An improper line will reduce the statistic ceiling by 1/2  to  1/3  of  what
can be achieved by the same number of people.

The overload of seniors usually occurs because of improperly set up lines.

Lines are invisible to most people and they are unable to conceive  of  them
until given full drills.

Unless this new C/S line is used you will not be able to average  more  than
250 well-done hours a week no matter how many auditors you put in  the  HGC.
The auditors will be idle, confused and causing upsets.

If an org cannot get more than 250 well-done hours  a  week,  it  will  find
that it cannot really make money from processing.

Thus the new line will give volume, quality and viability in processing
pcs.

Advantages of the line are that one HSST can handle up to 30  auditors.  The
earlier ceiling was eight or ten auditors.

With higher volume, backlogs vanish rapidly.

The admin personnel in the line can be afforded.

Line design, then, is a strong and unsuspected cause of low statistic
ceilings.

Product and Org Officers must be intimately familiar  with  this  HGC  line.
And they must be aware of the fact that faulty line design  can  cripple  an
org's income and overload its posts and excellent  line  design  can  double
the stat ceiling in any department while lightening the load.

L. RON HUBBARD

LRH:mes.rd.gm    Founder





402



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 16 MARCH 1971

                                 Issue IV '

Remimeo

Org Series 25

Personnel Series 19

LINES AND HATS

It will be found that in organization there are MANY major factors
involved.

The following three, however, give the most problems:

1.    Personnel

2.    Hats

3.    Lines.

Technology is a subdivision of both personnel (who may have to be  specially
trained before they can be considered personnel) and hats (which are  mainly
admin technology and line functions).

To solve any problem, one has to recognize what the problem is.  One  cannot
solve problem A by trying to solve problem B or C. Example: Problem: broken-
down car. You cannot fix the car by repairing  the  kitchen  lino.  Example:
You cannot floor the kitchen by fixing the car.

All this may seem obvious when obviously stated. But there is a more  subtle
version. ANY PROBLEM THAT DOES NOT SOLVE IS NOT THE PROBLEM. There  must  be
some other problem.

Locating and isolating situations  (problems)  in  an  organization  is  the
technique of the Data Series. That technology will find for one the  problem
that should be solved.

As there are three major organizational factors these  then  also  form  the
core of all organizational situations (or problems, same thing).

Each one of these'is its own zone-personnel, hats, lines.

Each one has its own problems. There are situations in personnel. There  are
situations in hats. There are situations in lines.

They are related. They are not identical.

You will find you  cannot  wholly  solve  a  problem  in  lines  by  solving
personnel. You cannot wholly solve a problem in hats by solving  lines.  You
cannot wholly solve a problem in personnel by solving the other two.

Example: Production hours are down. Fifteen new personnel are added  to  the
area. Production stays down. It was a problem in lines.

Example: Confusion  reigns  in  the  pipe  shop.  The  lines  are  carefully
straightened out. Confusion still reigns. It was a problem in hats.

Example: Broken products are wrecking org repute.  Hats  are  carefully  put
on. Products continue to be broken. It was a problem in personnel.

403



Example: The org stays small. Executives work harder. The org  stays  small.
It was a series of problems in personnel, hats and lines, none addressed  at
all.

You will see symptoms of all this in various guises. The test of whether  or
not the right problem was found is whether or not  production  increased  in
volume, quality and viability.

In actual practice one works on  all  three  of  these  factors  constantly-
personnel, hats and lines-when one is organizing.

You will find with some astonishment that failure to have or  know  or  wear
or do a hat is the commonest reason why lines do not go in.  That  personnel
is hard to procure and train because hats and lines are being  knocked  out.
That hats can't be worn because lines or personnel are out.

Situations get worsened by solving the wrong problem  instead  of  the  real
problem. In the Data Series this is called finding the right Why.

Organizational problems center around these three  things  in  the  broadest
general sense. More than one can be present in any situation.

Production problems are concerned with  the  particles  which  flow  on  the
lines, changed  by  the  hatted  personnel,  with  consumption  and  general
viability.  So  to  make  a  full  flow   from   organization   through   to
distribution, one would add raw materials, changed state  of  materials  and
their consumption. Organization is not an end-all. To  have  value  it  must
result in production.

But when personnel, hats and  lines  are  not  solved,  production  is  very
difficult. Therefore to get production one  must  have  an  organization  to
back it up. And personnel, hats and lines must exist and be  functional.  If
these exist, the rest of the factors of establishment can  be  brought  into
being.

It goes without  saying  that  organization  involves  other  problems  like
space, materiel, finance, etc. These and many more also  enter  into  "Whys"
of no production. But dominating others are problems in personnel, hats  and
lines. Others tend to solve if these are handled and organized.

L. RON HUBBARD

Founder

LRH:mes.sb.rd.gm

404



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 25 MARCH 1971

Remimeo

Org Series 26

VALUABLE FINAL PRODUCTS

By definition, a valuable final product is something that can  be  exchanged
with other activities in return for support. The support usually adds up  to
food, clothing, shelter, money, tolerance and cooperation (good will).

On an individual basis this is easy to  grasp.  The  individual  produces  a
product or  products  which,  flowed  into  the  dept,  div,  org,  company,
community, state, nation or planet, then returns to him  his  pay  and  good
will or at  least  sufficient  good  will  to  prevent  his  abandonment  or
destruction.

Long-range survival of the individual is attained in this fashion.

A valuable final product (VFP) is valuable  because  it  is  potentially  or
factually exchangeable.

The key word in  this  sense  is  EXCHANGEABLE.  And  exchangeability  means
outside, with something outside the person or activity.

A valuable final product could as easily be named  a  VALUABLE  EXCHANGEABLE
PRODUCT.

Sanity and insanity are matters of motive, not  rationality  or  competence.
The sane are constructive, the insane are destructive.

Thus insanity on the part of the potential receiver of a VFP can prevent  an
exchange of a final product the receiver should  be  able  to  use  and  for
which he should be willing to give active  support  and  good  will  to  the
producer.  Example:  Man  starving;  you  try  to  sell  him  good  food  at
reasonable price for which he has money to pay. He tries to  shoot  you  and
destroy the food. This is  insanity  since  he  is  trying  to  destroy  the
product he needs and can afford.

Crime is the action of the insane or the action  of  attempting  seizure  of
product without support. Example: Robbers who do  not  support  a  community
seek to rob from it supporting funds.

Fraud is the attempt to obtain support without furnishing a product.

Sanity and honesty then consist of producing a valuable  final  product  for
which one is then recompensed by support and good will, or in reverse  flow,
supporting and giving good will to the producer of the product.

Ethical basics,  morale,  social  subjects,  law,  all  are  based  on  this
principle  of  the  valuable  final  product.   Previously   it   has   been
"instinctive" or "common sense." It has not before been stated.

Civilizations which facilitate production and interchange and inhibit  crime
and fraud are then successful. Those that do not, perish.

Persons who wish to destroy  civilizations  promote  departures  from  these
basic rules  of  the  game.  Methods  of  corrupting  fair  interchange  are
numerous.

405



The FACTORS are the first appearance of these principles.

The theory of the valuable final product is an extension of the FACTORS.

Parts of organizations or organizations, towns,  states  and  countries  all
follow the principles which apply to the individual.

The survival or value  of  any  section,  department,  division  or  org  is
whether or not it follows these principles of interchange.

The  survival  or  value  of  any  town,  state  or  country  follows  these
principles of interchange.

You can predict the survival of any activity by confirming  its  interchange
regularities  or  can  predict  its  downfall  by  irregularities  in   this
interchange.

Therefore it is vital that a person or a section,  department,  division  or
part of an org or an org figure out exactly what it is interchanging. It  is
producing something that is valuable to  the  activity  or  activities  with
which it is in communication and for that it is obtaining support.

If it is actually producing valuable final products then it is entitled to
support.

If on the other hand it is only organizing or hoping or  PRing  and  is  not
producing an interchangeable commodity or commodities in VOLUME  or  QUALITY
for which support can be elicited and even demanded, it will not be VIABLE.

It doesn't matter how many orders are issued or  how  well  org  boards  are
drawn or beautiful  the  plans  to  produce  are  made.  The  hard  fact  of
production remains the dominant fact.

How well organized things  are  increases  production  volume  and  improves
quality and thus can bring about viability.

But it is the valuable final  product  there  and  being  interchanged  that
determines basic survival.

Lack of viability can always be traced to  the  volume  and  quality  of  an
actual valuable final product.

Hope of a product has a short-term value that  permits  an  activity  to  be
built. But when the hope does not materialize, then any hoped for  viability
also collapses.

One then must organize back from the actually produced product.

For instance, a technical subject is capable of producing an exact result.

IF persons are trained to actually produce the  result  AND  THE  RESULT  IS
PRODUCED then one can  exchange  the  technicians  with  the  community  for
support.

If the result is produced  (by  training  the  technicians  well)  then  the
result can be interchanged with an individual for support and good will.

Where any of these factors suffer in volume or quality then  an  interchange
is difficult and viability becomes uncertain.

406



As individuals, communities and states are not necessarily sane, upsets  can
occur in the interchange even when production is occurring.

Therefore the producer has a stake in maintaining the sanity  of  the  scene
in which he is operating, and one of his valuable final products is a  scene
in which production and interchange can occur.

The basics of valuable  final  products  are  true  for  any  industrial  or
political, or economic system.

Many systems attempt to avoid these basics and the end result would be
disaster.

The individual, section, department, division, org or country  that  is  not
producing something valuable enough to interchange  will  not  be  supported
for long. It is as simple as that.

L. RON HUBBARD

Founder

LRH:mes.rd.gm

407



HUBBARD COMMUNICATIONS OFFIC

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 JULY 1971

Remimeo

HASes Starrate

FEBC Grads  Org Series 27

      Starrate

FEBC Checksheet

      Starrate

            HCO ESTABLISHMENT FUNCTIONS

HCO means HUBBARD COMMUNICATIONS OFFICE.

The elementary and very simple actions of HCO are contained in this:

It is really hCo.

C = Communications.

To have Communications you have to have TERMINALS.

Flows can ONLY occur when terminals are rock steady and  STABLE.  There  can
be NO flows and NO power without steady terminals. Hence, comm cannot  occur
without stable terminals.

The ORG BOARD is the pattern of the terminals and their flows. So  you  have
to have an org bd. And the org bd must in truth be a representation of  what
is in the org.

The org bd shows where what terminals are located in the org so flows can
occur.

HCO has recruitment which means it gets people from OUTSIDE the  org  to  be
placed as terminals in the org = posts.

HCO has the posting of the org bd and designating the spaces in the  org  so
that flows can occur.

Hatting is a prime function of HCO because  otherwise  the  terminals  won't
know what they are supposed to be doing or what flows they handle or how.

HCO has INSPECTION to see that the flows are going right and that  terminals
are functioning.

Ethics exists to handle gross outnesses in flows.

Then routing can occur.

Then production can occur.

In essence that is ALL there is to an HCO.

If it realizes its key is  C  for  communications  and  that  comm  requires
terminals and an org bd so that flows can occur then HCO will function.

This action of putting in terminals is called ESTABLISHING

Thus HCO is the establishing division.

DISESTABLISHING

If HCO does not know  this  and  if  it  makes  numerous  errors  or  alters
importances away from this, it DISESTABLISHES the org.

DIS = Take apart.

ESTABLISH = Put there.

DISESTABLISH = Take apart what is put there.

Thus disestablish means to take out terminals and tear things up.

In using the org itself as a  source  of  personnel,  then  an  "HCO"  tears
things up far faster than it puts things there.

408



HAS

The HCO Area Secretary, HAS, has the function of ESTABLISHING THE ORG.

That means to find, hat, train, apprentice persons from OUTSIDE the org,  to
locate them in the org and on the org bd and then route  the  raw  materials
(public people in this case) along the  line  for  production,  which  means
changing particles into a final product.

If HCO establishes the org then all will be well.

If it fails to recruit or hat or org bd  or  route  or  distribute  comm  or
police the lines, the org will stagger or fail.

The HAS is responsible for seeing that HCO establishes the org.

An HAS who is doing anything else is DISESTABLISHING.

HCO EXTERNAL

HCO has the incoming and outgoing flow lines as well.

This gives it Address. This means the location of the terminals OUTSIDE  the
org that the org contacts.

This in itself is an org bd.

The HAS must insist that the outside terminals are also established.

This gives an international network of flows amongst terminals.

WHAT is produced and WHAT flows on  the  lines  is  the  business  of  other
terminals outside HCO unless these threaten the functions of HCO.

SIMPLICITY

Now if you think there is anything more to it than this, work and  work  and
work to do it in clay, clean up the  misunderstood  words  and  become  thus
able to envision and handle it.

Many policies exist about HCO. There is a lot of admin tech  connected  with
an HCO but ALL OF IT is  entirely  and  completely  concerned  with  how  to
establish an HCO and an org.

This P/L should be known, known, known and any further  confusion  would  be
plainly the result of personal aberration such as an inability  to  conceive
of a terminal or a space or a thirst for confusion only found in very  batty
places.

The functions of an HCO and the duties of an HAS are so  elementary  and  so
plain that they cannot be misunderstood even by experts.

HCO establishes the org.

That is the basic thing to know.

The techniques of how it is done are well recorded and broadly issued.

HCO does NOT disestablish the org.

HCO does NOT leave an org unestablished.

HCO ESTABLISHES THE ORG.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

409



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 29 JULY 1971

Remimeo

Org Series 28

Personnel Series 21

WHY HATTING?

A few days ago when I found that musical  chairs  and  flubbed  hatting  had
unstabilized some areas, I wondered whether or  not  this  might  stem  from
some social aberration that was very general in the societies  in  which  we
are working.

And it seems to have been the case. I worked on it a bit and found this:

LAW: THE POWER OF A THETAN STEMS FROM HIS ABILITY  TO  HOLD  A  POSITION  IN
SPACE.

This is quite true. In Scn 8-80 the base  of  the  motor  is  discussed.  It
holds two terminals in fixed positions. Because they  are  so  fixed,  power
can be generated.

If a thetan can hold a position or location in space he can generate POWER.

If he cannot, he cannot generate power and will be weak.

We have known this for 19 years. It applies here.

Observation: MODERN SOCIETY TENDS TO CONFUSE AND  UNSTABILIZE  PERSONS  WITH
ITS HECTIC PACE.

Observation: BEINGS WHO ARE AFRAID OF STRONG PEOPLE TRY TO WEAKEN THEM.

Observation: PERSONS WHO ARE PUSHED AROUND FEEL THEY CANNOT HOLD A  POSITION
IN SPACE.

Observation: PEOPLE HATE  TO  LOSE  THEIR  POSTS  AND  JOBS.  THEY  FIND  IT
DEGRADING.

In processing picking up this chain of lost  positions  achieves  very  good
gains and rehabilitates a person's ability to hold a job.

LAW: BY GIVING A PERSON A POST OR POSITION HE IS SOMEWHAT  STRENGTHENED  AND
MADE MORE CONFIDENT IN LIFE.

LAW: BY LETTING A PERSON RETAIN HIS POST HE IS MADE MORE SECURE.

LAW: BY HATTING A PERSON HE IS GREATLY STRENGTHENED AS HE IS HELPED TO  HOLD
HIS POST.

A basically insecure person who feels he is unable to hold his  position  in
space, is sufficiently strengthened by hatting to feel secure enough  to  do
his job.

LAW: HAVING A HAT,  BEING  HATTED,  AND  DEMONSTRATING  COMPETENCE  MAKES  A
PERSON FEEL CAPABLE OF HOLDING HIS POSITION IN SPACE  AND  HE  BECOMES  MORE
STABLE, CONFIDENT IN LIFE AND MORE POWERFUL.

410



LAW: UNHATTED PERSONS ON A POST CAN BECOME CRIMINAL ON THE POST BECAUSE
THEY FEEL INSECURE AND BECOME WEAK.

When a person is secretly afraid of others he instinctively will not hat
them or hats them wrongly and tends to transfer or move them about.

When a person is insecurely posted and insufficiently hatted he can try to
weaken others by trying to prevent their hatting and trying to get them
transferred or even dismissed.

This is apparently the social aberration at work.

The answer to a sane org and a sane society is not welfare and removal. It
is

Recruit them Train them Hat them Apprentice them Give them a post.

This is so strong in truth it would de-aberrate the bulk of the crime out
of a society.

And it sure will put an org in POWER.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

411



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF I I AUGUST 1971

                                  Issue III

Remimeo

Org Series 29

INFINITE EXPANSION

There is no reason whatever to ever contract or reduce the size of an org
except covert destruction.

In theory there is no limit to the size of an org.

The 1967 org bd is capable of expanding to 200,000 staff members!

For our purposes, there is no real limit to expansion.

So long as property purchase does not commit future income dangerously and
so long as HASes keep the admin staff in a ratio of two to one technical
staff, there is no limit to expansion.

So long as cash-bills is kept more cash than bills there is no limit to
expansion.

So long as the staff produces what their posts call for there is no limit
to expansion.

So long as you DELIVER in quality what you SELL there is no limit to
expansion.

So long as you keep standard on admin and keep standard on tech, there is
no limit to expansion.

So don't get frightened, don't fire people, don't cut back. Understand the
above and the whole of this policy letter. And there is no limit to
expansion.

So EXPAND.

L. RON HUBBARD

Founder

LRH:sb.gm Copyright 10 1971

412



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 14 JULY 1972

                                  Issue 11

Remimeo

                       Establishment Officer Series 22

                             Executive Series 14

                                Org Series 30

ESTO FAILURES

For several months I have been studying the Esto  system  in  operation  and
have finally isolated the exact points  of  any  failures  so  they  can  be
turned to successes.

PUTTING IN THE SYSTEM

An Esto returning to an org can crash it.

The exact reasons for this are

A. The execs who heretofore did organizational work say,  "Ali,  here's  the
Esto system at last," and promptly drop their organizational  and  personnel
actions.

Yet here is this lone E Esto, no divisional Estos, no one trained to
support him.

The right answer is when an E Esto goes into  an  org  where  there  are  no
Estos or only a TEO or QEO, he must gather up the execs  and  tell  them  it
will take him weeks to recruit and train Estos and that THEY  MUST  CONTINUE
ANY ORGANIZATIONAL ACTIONS  THEY  ARE  DOING  and  that  the  HAS  IS  STILL
ESTABLISHING THE ORG.

Otherwise they let go their lines.

B. The new E Esto takes key production personnel from the  divisions  to  be
Estos and they crash.

The answer to this is to RECRUIT the new Estos.

This is easier than it looks if you recruit idle area auditors to be Estos.

If you do this remember that they went idle as  auditors  because  they  had
out-ethics, were PTS, had misunderstoods and out TR 0. To get them you do  a
3 May 72 P/L, a 5 April 72 P/L, Method 4 on their courses and make  them  do
real TRs, especially Zero. And they'll be ready.

You get a list of area auditors and contact them and do the  above  on  them
and you'll have Estos who are half-trained already.

Failing this or in addition to it just plain recruit.

C. The first post a new E Esto should take is Dept 1.

He does NOT "hat the HAS" or "just do programs." He  rolls  up  his  sleeves
and WORKS as director of Dept 1.

He recruits, he posts up Dept 1. He hats the hell out of Dept 1.

He makes a Department I that really really flows in personnel, puts  up  org
bds and hats.

WHEN he has a Department I FUNCTIONING he can  begin  to  recruit  Estos  as
well as other org staff.

If he can't get a Dept I whizzing he has no business being an Esto, does
he?

413



He does NOT put in Dept 2 or act as Dept 3. He makes the HAS handle these.

With a strong, working Dept 1, an Esto system can then go. in.

D. Musical chairs is the commonest reason any org collapses.

A "new broom sweeps clean" complex will wreck any org.

An E Esto on arrival, taking over Dept 1, FREEZES ALL  PERSONNEL  TRANSFERS.
He does not permit even one transfer.

The only exception  would  be  where  a  musical  chair  insanity  has  just
occurred. If this was followed by a stat crash then one REVERTS THE  ORG  TO
THE UPSTAT PERIOD and then FREEZES PERSONNEL TRANSFERS.

But before one reverts one must evaluate the earlier period by stats  to  be
sure it WAS the upstat period.

By freezing personnel one protects what he is building.

Almost all musical chairing is the work of a suppressive except when  it  is
the work of an idiot.

E. Anyone trying to hold Dept I in a personnel-starved org is holding a  hot
seat as any HAS or Personnel Director can tell you.

Body traffic to this dept in any medium-sized org defies belief.

It looks like Grand Central Station at the rush hour.

      "I have to have  " "Where is my Course Super      etc.,

etc., etc., is the constant chant.

You can spend the whole day interviewing staff execs and get nothing done.

There is a right way to do all these things and a billion wrong ways.

Obviously the answer to all their problems is to get and train  new  people.
Yet how can one in all the commotion?

Ninety percent of these requests are from people who  are  not  hatting  and
using the people they already have.

The right way is on any new personnel demanded one gets  Dept  3  to  do  an
Inspection and Report Form for people in the area  of  the  exec  doing  the
demanding.  You  will  find  very  often  unhatted,  untrained  and   wasted
personnel and many outnesses.

You hold the line on  personnel  by  saying:  "Handle  these  unutilized  or
halfworking staff or these outnesses. You are here on my  procurement  board
as entitled to the (give priority, 3rd, 8th) person we hire or recruit."

And get industrious in recruiting, using all standard actions  for  that  is
the only way things can be solved.

Most orgs would run better on less people  because  the  personnel  are  not
hatted or trained. One org, two years before this writing, made  four  times
as much money on half the personnel it now has.

Unhatted, the staff is  slow  and  uncertain.  Unproducing,  the  div  heads
demand little.

But they sure can scream for more personnel!

No org ever believes it is overmanned.

F. Some divisions (like the usual Treasury or Dissem)  can  be  undermanned.
Key income posts most often are empty.

When one mans up an org one sets priorities of who gets personnel.

This is done by PRODUCTION paralleling. One mans up against production.

414



New people come in through Div VI. They are signed up by  Div  11.  Delivery
is done by Div IV. Money is collected by Div 111. That gives you a  sequence
of manning up.

You man income and delivery posts with new hirings.

The E Esto is trying to get in a Dept I so of course he gives this a
priority as well.

Until the income is really rolling in and  the  delivery  rolling  out.  one
does very little about other areas.

Having gained VOLUME, one now begins to man up for  quality.  This  means  a
Cramming and a WC Section in Qual. It means more HCO.

One now hits for future quantity  by  getting  auditors  in  training,  more
upper execs in training.

When the org is so built and running and viable it is time  the  whole  Esto
system got manned up.

G. Every 5th person hired on an average should be put in Dept I as a Dept  I
extra personnel who does Dept I duties and trains part-time as an Esto.

This gives the E Esto additional personnel in Dept 1.

It also begins an Esto right.

His most essential duties as an Esto are Dept I type duties.

You eventually have a  bulging  Dept  1.  You  have  a  basic  Dept  I  that
functions well and will continue so. You have  the  Esto  trainees  who  are
working in Dept I as Dept I personnel. And  you  have  of  course  some  new
people who are HCO Expeditors until they  get  in  enough  basics  for  real
regular posting.

This makes a fat Dept I and proves one can Esto!

SUCCESS

If an E Esto introduces the Esto system exactly as above  and  in  no  other
way, he will be a success.

Like an auditor varying processes or  altering  HCOBs,  a  new  E  Esto  who
varies the above will bring about disaster.

Where E Estos have gone into orgs other ways or where the  system  has  been
varied, stats have crashed.

By going in this way, as above, it can be a wild success.

How fast can you put in an Esto system? It takes months  of  hard  work.  It
depends really on how good the E  Esto  is  at  recruiting,  org  bding  and
hatting.

If he's good at these things the time does not stretch out to forever.

For comparison, it took half a year each to build DC,  Johannesburg  and  SH
to their highest peaks. They were all built  from  a  Dept  I  viewpoint  of
recruiting, org bding and hatting hard enough to get production.

So this is the oldest pattern we have-Dept I evolves the org.

When the org gets too big Dept I.Ioses touch. You extend it  into  each  div
and you have the Esto system. And you have Estos.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

415



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 23 JULY 1972R

Remimeo     REVISED 20 DECEMBER 1978

(Revisions in this type style)

Establishment Officer Series 23R

Executive Series 15R

Org Series 31R

THE VITAL NECESSITY OF HATTING

On a graph analysis of past stats, my campaign on hatting where a hat was  a
checksheet  and  pack  apparently  introduced   a   steady   rise   of   the
international gross income.

Studying this further I discovered a new basic, simple fact:

HATTING = CONTROL

A person who is hatted can control his post.

If he can control his post he can hold his position in space-in  short,  his
location. And this is power.

When a person is uncertain, he cannot control his post,  he  cannot  control
his position. He feels weak. He goes slow.

If he can control his post and its actions he feels confident. He  can  work
effectively and rapidly.

The key is CONTROL.

Control is the ability to START, CHANGE and STOP.

When he is hatted he knows the tech of HANDLING things. Thus he can  control
them. He is at CAUSE over his area.

If you have an org  composed  only  of  weak  wobbly  posts,  they  tend  to
collapse in on each other. There is no POWER.

The org then cannot be CAUSE over its environment because it is composed  of
parts which are not cause. The whole is only the sum of its parts.

If all the parts are each one at cause, then the  whole  will  be  at  CAUSE
over its environment.

Only an org at CAUSE can reach and CONTROL.

Thus a fully hatted org can be at cause over its environment, can reach  and
control its fates and fortunes.

THUS THE PRIMARY TARGETS OF AN ESTO ARE

A. ESTABLISHED ORG FORM and

B. FULLY HATTED PERSONNEL.

BASIC SEQUENCE OF HATTING

1. Recruited or hired. Signs contract

416



2. Posted in HCO Expeditor pool or division if divisional recruit  (per  HCO
PL 2 Sept 74R RECRUITING AND HIRING).

3. In SO new recruit goes directly onto Product Zero in the Estates  Project
Force and upon graduation from EPF goes to HCO Expeditor pool (Ref.  FO  372
7 PRODUCT TRAINING LINE-UP).

4. Staff Status Zero.

5. Eligible for student auditing but must have a stat  and  demonstrated  he
has produced on post

6. Staff Status 1.

7. Staff Status //.

8. Posting as other than an HCO Expeditor.

9. Full hatting with a checksheet and pack with Word Clearing M6, M7 and
M4.

10. Method 1 Word Clearing, Primary Rundown or Primary Correction Rundown.

11. Administrative or tech training (OEC or auditing).

No one should have any other training much less  full-time  training  before
Step 10 in the above. Flag Orders in the Sea Org  may  change  this  line-up
slightly but it is basically the same.

There are time limits placed on how long it takes to  do  SSI  and  SSII.  A
person who can't make it is routed  to  Qual  where  he  is  offloaded  with
advice on how to get more employable. (In the SO it is Fitness Board.)

TIME-TESTED

The above is the route that has been tested by time and found good.

Other approaches have NOT worked.

Granting full-time training at once is folly. The  person  may  get  trained
but he'll never be  a  staff  member.  This  is  the  biggest  failure  with
auditors-they don't know the org. Admin training with no org  experience  to
relate it to is a waste of time.

This was how we built every great org. And  when  it  dropped  out  the  org
became far less powerful.

Old-timers talk of these great orgs in their great days. And they will  tell
you all about the org boarding and hatting that went  on.  How  the  Hatting
Officer in HCO and the Staff Training Officer in Qual worked as a team.  And
how fast the lines flew.

The above steps have stood the test of time and are proven by stats.

RECRUITING AND HIRING

You never recruit with a promise of free courses or free auditing. Not  even
HASes or HQSes. You recruit or hire somebody to be part of the team.

OPEN GATE

If any opinion or selection is permitted as to who is going  to  be  let  on
staff, all recruitment and hiring will fail.

By actual stats when you let anyone say "No! Not him!  Not  her!"  the  gate
shuts, the flow stops. And you've had it.

      Requirements and eligibili , tyJail. The proof is that when they have
existed in orgs,

the org wound up with only PTSes and no-case-gains!

417



The right answer is FAST FLOW hiring. Then you have so many that  those  who
can't make it drift low on the org board or off. You aren't trying  to  hold
posts with unqualified people "who can't be spared."

In a short-staffed org "looking only for the best  people"  the  guy  nobody
will have gets  put  on  an  empty  "unimportant"  department.  He's  now  a
director!

It only happened because you didn't have dozens.

The answer is NOT lock the gate or have requirements. The answer is HAT.

An org that isn't hatted goes weak and criminal.

Don't be selective in hiring or recruiting. Open the gates and HAT!

Follow the steps given above and you have it.

Don't spend coins like training or auditing  (or  travel)  on  people  until
they have proven their worth. No bonuses or high pay for anyone  until  they
have reached and attained Step 8 (a good stat). The cost of such  fast  flow
hiring is not then a big factor.

The only trouble I ever had with this  was  getting  div  heads  to  UTILIZE
their staff. A FIRST JOB FOR AN EXECUTIVE IS TO GET THINGS  FOR  HIS  PEOPLE
TO DO. AND KEEP THEM BUSY AT PRODUCTIVE THINGS.

So I used to have to go through the org that did FAST FLOW HIRING  regularly
and get people to use their new people. And to move off those who could  not
work.

This was ALL the trouble I had with the system.

And until I enforced FAST FLOW  HIRING  there  was  always  some  effort  by
someone to close the gate.

ALL the great executives in Scientology came up in such orgs.

With a flow of people the best move on up. The worst, if any, drop off.

Only orgs with restricted hiring or recruiting give trouble.

IN A FAST FLOW HIRING ORG THE HAS  AND  ESTOs  MUST  BE  ON  THE  BALL.  THE
BREAKDOWN OCCURS WHEN THEY DO NOT HAT AND  KEEP  ON  TOP  OF  THE  PERSONNEL
SCENE.

Fast flow hiring only breaks down and,,gets protested where  HCO  and  Estos
are not doing a top job. They have to  really  hahdie  the  personnel,  post
them, hat them, keep the form of the org.

A fully formed org in a heavily populated location would  need  hundreds  of
staff. It would make hundreds of thousands.

But only if it is fast flow hiring, hatting, holding the form  of  the  org,
and only then could it produce.

L. RON HUBBARD

Founder

Revision as assisted by

Arden Hansen

FMO 2025 I/C

LRH:AH:ntjk.gm , 1978

418



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 JULY 1972

Remimeo

                       Establishment Officer Series 26

                             Executive Series 16

                                Org Series 32

                                ESTABLISHING

                         HOLDING THE FORM OF THE ORG

If a person who could not play a piano sat down at a piano  and  hit  random
keys, he would not get any harmony. He would get noise.

If the head of a division gave orders to his staff  without  any  regard  to
their assigned posts or duties, the result would be confusion and noise.

That's why we say a division head "doesn't know how to play the piano"  when
he knows so little about org form that he continually violates it by  giving
his various staff members duties that do not match their hats or posts.

But even if one could play the piano, one would have to have a piano to
play.

SPECIALISTS

Each org staff member is a specialist in  one  or  more  similar  functions.
These are his specialties.

If he is fully trained to do these he is said to be HATTED.

The combined specialties properly placed and being done add up to  the  full
production of an org.

The org form is then the lines and actions and spaces and flows  worked  out
and controlled by specialists in each individual function.

These specialists are grouped in departments which have certain  actions  in
common.

The departments having similar functions are grouped into divisions.

The divisions combine into the whole org form.

It is far less complex than it looks.  It  would  be  very  complicated  and
confusing  if  there  weren't  divisions  and  departments  and  specialized
actions. Without these you would get noise and very limited  production  and
income, and at great strain.

Take a theater as an example. There are people who advertise it;  these  are
the public relations people; they are  hatted  to  get  publicity  and  make
people want to come to the play; call them the PR Division.  There  are  the
producers and directors; they are hatted to present a performance  and  make
it occur; call them the  Production  Division.  There  are  the  actors  and
musicians; call them the Artists Division. There are the property men;  they
are hatted to  get  costumes  and  items  needed;  call  them  the  Property
Division. There are the stage hands and electricians  and  curtain  and  set
men; call them the Stage Division. There are the ticket  sellers  and  money
handlers and payroll  and  bills  payers;  they  are  hatted  on  money  and
selling; call them the Finance Division.

419



There are the people who clean the theater and  show  people  to  seats  and
handle the crowds; call them the House Division. And there are the  managers
and playwrights  and  score  writers  and  angels  (financiers);  call  them
loosely the Executive Division.

Now as long as they know their org board, have their flows plotted out,  are
hatted for their jobs and do a good  job,  even  a  half-good  play  can  be
viable.

But throw away the org board, skip the flows, don't  hat  them  and  even  a
brilliant script and marvelous music will play to  an  empty  house  and  go
broke.

Why? Because an org  form  is  not  held.  Possibly  an  untrained  unhatted
producer will try to make the stage hands sell  tickets,  the  actors  write
the music, the financiers show people to their seats. If he didn't know  who
the people were or what their hats were he might do just that.

And there would be noise and confusion even  where  there  was  no  protest.
People would get in one another's road. And the general  presentation  would
look so ragged to the public they'd stay away in droves.

ESTO ACTION

Now what would an Esto (or an Executive Director) have to do  with,  let  us
say, an amateur, dilettante theatrical company that was about to bog.

Probably half the people had quit already. And even if there were people  in
the company they would probably need more.

The very first action would be to Esto Series 16 the top men to make money
quick.

The first organizing action would be to kick  open  the  hiring  door.  This
would begin with getting out hiring PR and putting  someone  there  to  sign
people up who came to be hired  (not  to  test  and  audition  and  look  at
references, but just to sign people up).

The next action would be to do a flow plan of public bodies  and  money.  So
one sees where the org form reaches. Then a schedule.

The next action would be to do an org board. Not a 3-week job. (It takes  me
a couple hours to sketch one with a  sign  pen  for  posting.)  AND  GET  IT
POSTED.

One then takes the head of each of these divisions and hats him on what  his
division is supposed to do and tell him to do it. NOW.

You make and post the flow plan, org bd and  terminal  location  plan  where
the whole company can see them.

Chinese drill on a flow plan to show them what they're doing  and  what  has
to be done.

Chinese drill on the org board including introducing each  person  named  on
it and getting it drilled, what he does and who he is.

You Chinese drill the terminal locations where each of  these  persons  (and
functions) is to be found.

You get agreement on schedules.

You now have a group that knows who specializes in what and what's  expected
of each.

You get the head of the whole company to work with and hat the heads of  his
divisions.

420



Now you get the heads of divisions to hat their own staffs while you help.

And you get them busy.

You then put the polishing  touches  on  your  own  Dept  I  (personnel  PR,
personnel hiring,  personnel  placement,  org  bds,  hat  compilations,  hat
library and hatting hatting hatting).

And by hatting and insisting on each doing his specialized job  and  getting
seniors to HOLD THE FORM OF THE ORG by ordering  the  right  orders  to  the
right specialists and targeting their production  and  MAGIC!  This  amateur
theatrical company gets solvent and good enough  to  wind  up  on  Broadway.
It's gone professional!

You say, yes, but what about  artistic  quality9  What  about  the  tech  of
writing music and acting. . . .

Hey, you overlooked the first action. You kicked the  door  open  on  hiring
and you hatted and trained. And you let go those who couldn't get a stat.

Eventually you would meet human reaction and emotion  and  would  put  in  a
full HCO and a full Qual particularly Cramming.  But  you'd  still  do  that
just to be sure it kept going.

Yessir, it can't help but become a professional  group  IF  you,  the  Esto,
established and made them HOLD THE FORM OF THE ORG and  produce  while  they
did it.

An Executive Director can do all this and produce too.  The  great  ones  do
things like this. But here it is in full view.

A Scientology org goes together just like that. Which could be why, when  we
want to get something started, we say:

"Get the show on the road!"

But there is no show until it is established and the FORM OF THE ORG is
held.

You are luckier than the amateur theatrical company's Esto. You have  policy
for every post and a book  of  it  for  every  division  and  all  the  tech
besides.

So there is no valid reason under the sun  you  cannot  establish  and  then
hold the form of the org,

L. RON HUBBARD

Founder

LRH:nt.bh.ts.gm

421



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 13 JULY 1974

                                   Issue I

Remirneo

Org Series 33

PRODUCTION BUGS

An analysis of failures to produce in several fields showed this fault:

                         EXPERIMENTING ON A STANDARD

                              PRODUCTION LINE.

Example: A cook can cook 30 dishes of various  types  successfully.  Instead
of retaining these as they are and seeking on the side  to  create  or  find
new dishes, the cook experiments with and changes her  30  standard  dishes.
The result is failed production.

Example: A musical group has 15 finished pieces of  repertoire.  Instead  of
developing totally new pieces, they rewrite their existing  repertoire.  The
result is a failure to do good shows.

Example: An org is doing well with a standard CF  letter  writing  campaign.
This personnel is pulled off onto phones only  as  an  experiment.  The  org
stats crash. The correct action would be a pilot  phone  program  using  new
personnel and leaving the standard actions in.

In all cases the right  thing  to  do  is  maintain  without  variation  the
standard production line and if experimenting  or  change  is  to  be  done:
pilot it on the side with people or actions  that  do  NOT  impede  standard
production.

There is always a better model in the research lab  than  there  is  on  the
production line. The only bug occurs when the incomplete and  unknown  model
is shoved over as the standard production.

If on test and experience a new action, properly piloted,  is  better,  then
*and only then is it added to the standard line.

L. RON HUBBARD

Founder

LRH:act.gm

422



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 13 JULY 1974

                                  Issue Il

Remimeo

Org Series 34

WORKING INSTALLATIONS

Never unmock (take down or destroy) working installations.

A working installation is something that is operational.

The most flagrant violation of this is tearing up Div A to create Div B.

Division A is working. Somebody orders Division B to be strengthened.

A stupid or  suppressive  personnel  person  will  tear  up  Div  A  to  get
personnel for Div B.

The correct action is to find extra or new people for the new action.

MUSICAL CHAIRS (transfers of persons around  an  org)  is  THE  SINGLE  MOST
DESTRUCTIVE ACTION TO AN ORG'S STATS.

A failure to recruit and train new- people leads one tow9rd the  destruction
of working installations.

Whenever a new unit has to be made up, the  failure  to  recruit  and  train
shows up vividly. Essential people are ripped off their posts  to  form  the
new unit and the destruction of working installations by this  action  shows
up at once in production stats.

It takes a great deal of work to find, hat and  post  people  and  get  them
experienced enough to produce. It takes a lot of  work  to  make  a  working
installation. But in one swoop some  irresponsible  personnel  transfer  can
destroy it.

In mechanical matters the same thing applies. It takes  a  lot  of  work  to
make something operational. If for a while it is not used,  a  mechanic  may
rob its parts to set up something else instead of getting new parts for  the
something else. Then when the working installation  is  needed,  it  doesn't
function and a great deal of trouble and expense is put  in  setting  it  up
again. The trouble and expense is far more costly  than  getting  the  parts
elsewhere.

NEVER UNMOCK A WORKING INSTALLATION.

It will be far more costly than going to a lot of  trouble  and  expense  to
get the people or parts elsewhere.

L. RON HUBBARD

Founder

LRH:rhc.gm

423



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 SEPTEMBER 1976

Remimeo

All Staffs

Org Series 35

Executive Series 17

THE STAT PUSH

WHAT exactly is a stat push?

The danger in talking about this subject at all is that someone  can  do  an
immediate make-wrong by saying, "This means don't try to raise any stats."

      So to understand this subject at all, one must have a pretty clear
idea of exactly

what is meant by "Don't push stats."   4

First of all one has to know precisely that  STATISTICS  ARE  AN  INDICATOR;
THEY ARE NOT AN OBJECT.

WHEN YOU PUSH THE INDICATOR YOU DO NOT OBTAIN THE OBJECT IT REPRESENTS.

PRODUCTION IS COMPLETED CYCLES OF ACTION, NOT JUST NUMBERS.

The figure " I " in "I apple" is not the apple.

Therefore pure, raw, naked stat pushing is an outpoint called "wrong
target."

Pushing a stat without doing anything to bring about the stat  is  therefore
an aberration.

Demanding a stat without doing anything to see that  it  occurs  or  putting
anything there to make it or correcting anything that is  preventing  it  is
an aberration built out of either psychosis  or  ignorance  of  what  should
really be done.

It is quite true that stats must be kept up. But unless they are kept up  by
putting something there or correcting something that is  there  and  getting
all the cycles of action done by all those who should  do  them,  the  stats
will DECREASE and eventually vanish.

An order, a telex, a yell to the effect  "GET  THE  STATS  UP"  is  so  much
wasted time.

Further,  such  an  order  or  telex  or  yell  in  any  form  has  a   very
deteriorating effect. Individuals or staffs look at it in a  properly  weird
light. They are there, they are doing what they can, they have problems  and
tangles and barriers. And telling them to "Get the stats up" causes  various
reactions, none of them very good. Essentially, it gives them  neither  help
nor direction and even subtly informs them that the person  ordering  either
does hot know or does not care what is going on and is not  about  to  help.
The eventual reaction can become an ignoring of that command channel.

There are some specialized actions in stat pushing. Chief  amongst  them  is
the "GI push."

The usual indicator of this is a neglect or abandonment of staff  or  caring
about staff. One sees no real effective attention on recruitment,  training,
apprenticing, hatting, future execs. And  when  one  sees  this  it  usually
follows that there is a "GI  push"  going  on  somewhere  in  the  executive
strata. Why this indicator? Well, you see, it only takes a small handful  of
people to get in GI and where executive attention is fixated on a "GI  push"
the  various  production  staff,  HCO  and  the  rest  of  the  org   aren't
"necessary." You find this with EDs who reg instead  of  getting  Registrars
and putting an org there,  with  EDs  who  go  for  credit  unions  and  odd
financial deals. And you will

424



also find they have the  biggest  number  and  amount  of  refunds  and  the
biggest backlogs AND a shrinking and unhappy org. Unfortunately,  they  soon
also get a crashing GI for none  of  the  support  actions  are  being  done
across the divisions.

The reason "GI pushing" happens so often is the  structure  of  the  society
itself.  The  only  real  crime  for  which  one  can  be  punished  by  the
governments of today is lack of money. In other crimes if one has  the  huge
sums necessary to hire lawyers one can often  get  off.  But  the  crime  of
having no money is the only crime one cannot get  out  of.  There  are  even
laws which cause the arrest on the street of persons  who  do  not  have  so
much money in their pockets or wallets: it is  called  "vagrancy."  So  with
the whole aberrated society on a big "GI push," with Wall  Street  measuring
values only in how much something costs, with wages and prices  soaring,  at
this writing, to total social disaster, it is no wonder  that  short-sighted
and untrained or even aberrated executives get into a "GI push."

The answer to not having money is, of course, to make more money. And  there
is nothing whatever wrong with that. BUT that is not done with a "GI  push."
It is done with putting a whole org there, every part of it functioning  and
delivering with all the bugs out of its lines, and making a  lot,  lot,  lot
more money. Fifty trained staff producing everything an org is  supposed  to
produce will make far more money than five guys  concentrating  on  GI  only
and letting the rest of the org go to blazes. The GI made by the fifty  will
go on increasing. The GI made by the five (and not backed up by the rest  of
the org) will decrease week by week and then crash.

Let us take some examples of "stat pushing":

The room is cold and the staff is wearing overcoats and using blankets.  Mr.
Stat Pusher walks over to the thermometer on  the  wall  and  sees  that  it
reads very low. So he yells at the thermometer, "Get the stat  up!"  Nothing
happens of course; it still says 15*, so he yells at the  staff,  "Get  that
stat up!" Now, in this instance, having a stat pusher around,  the  org  has
no Treasury Div and so there was nobody  to  pay  the  bills  and  the  fuel
company has refused to deliver further fuel. The janitor is missing  because
there is no HCO to hire one or keep one on post so there's no one  to  light
the furnace even if it had fuel. And due to an unhatted  Financial  Planning
Committee, that also doesn't meet or exist, no new boiler was  ordered  when
the old one blew up last year. The stat pusher seems incapable of  observing
these facts, and is too unskilled to bring them to rights. So  he  continues
to yell "Get the stat up" and the  staff  wears  more  and  more  coats  and
blankets until at last it is just a quiet scene of solid ice.

If the letters out stat is down, this is a bad INDICATOR. It is  vital  that
one keeps stats and observes when one goes down. It  is  extremely  hard  to
manage on one's post or in an org unless one  has  a  stat.  But,  in  going
down, WHAT is being indicated? A lack of letters out. So what does  one  do?
Does he yell "Get the letters stat up" or does he  look  into  this?  If  he
looked into it he could find the real Why, handle it and  the  letters  stat
would go up. He might find that the Letter Reges were all sacked  so  as  to
increase the unit pay one week and that he has somehow gotten a nut  onto  a
personnel or finance post (whose R/Ses make even  his  head  jerk  back  and
forth). He might find that the typewriters had broken down.  He  might  find
that Dept 5 people were all being used by Div 5 to handle  their  files.  At
the very least he will find something aberrated or ignorant going  on  which
has to be handled before the letters can be flooded out again. WHEN this  is
found and handled, THEN the letters out stat will go up.

So Mr. Stat Pusher is essentially operating on a short  circuit.  He  cannot
or will not look.

And there is another variety of stat aberration which comes  about  after  a
lot of "Get the stat up" has failed. This is Mr. Stat Ignorer.

Mr. Stat Ignorer is driving along in a car and he looks at the  speedometer.
It says 15 m.p.h. He glares at the needle for a moment and then handles  it.
He pastes a piece of paper over it so it can't be seen. And  sits  back  and
drives contentedly. If he'd looked, he would have found he  had  three  flat
tires and an engine about to run out of oil and explode.

Then there is also Mr. Stat Faker. He knows that he will get in  trouble  if
his STAT is down. So he simply dreams up a  figure  and  puts  it  on  graph
paper. He is encouraged

425



and rendered confident in this because he is sure that no senior  will  come
around and notice the towers of unanswered letters or the huge  backlogs  of
cramming orders or the mobbed  waiting  room  of  unhandled  public  or  the
mountain of uncorrected and unfiled address plates. He is confident  because
no senior has in the last year or two. And he can say "I'm an  upstat"  when
the Ethics Officer tries to hit him for keeping the front door  to  the  org
obstructed with his motorcycle. And he is recognizable by a  caved-in  case,
low morale and a hunted look of glee as he creeps through the org.

There is one common denominator the stat pusher, the stat  ignorer  and  the
stat faker have. And that is AN ABSENCE OF SKILLED MANAGEMENT.

We have investigatory tech. It is there for use. We  have  the  Data  Series
evaluation tech. It is there for use. We have administrative  tech.  And  it
is all published and there for use. And further, when it is known and  used,
proven times without number now, production and prosperity  occur  AND  show
up  as  statistics  which  INDICATE  that  production  and  prosperity   are
occurring.

Yes, it is very, very true that an org or a manager or an  auditor  or  file
clerk gets in trouble if his stats are down.

Yes, it is true that stats should exist and be used.

But it is equally true that the way to get a stat is to put something  there
that can get something done  and  get  the  lines  debugged  and  the  scene
handled.

The fate of the stat pusher, the stat ignorer and the stat faker is to  look
around one day and find no org.

It's a very long way between yelling or telexing or writing  "Get  the  stat
up" and handling things and getting production cycles completed so that  the
stat WILL go up.

The stat, properly stated and honestly kept, IS a  vital  indicator  of  the
scene. If you know how to use them you can get the areas  that  have  to  be
handled. And if you know your policy and tech you can  find  the  real  Whys
and get real handlings and get things whizzing.

We mean to have all the stats going up because this  INDICATES  a  bettering
state of affairs for everyone.

The job of the Product Officer is NOT  to  yell  "Get  the  stats  up."  The
Product Officer is there to notice and order things like "Get those  letters
answered so they get answers." And the job of the Org Officer  is  to  carry
out the handlings the Product Officer  finds  necessary  to  get  production
rolling.

A fire-breathing Product Officer is worth his weight to every  staff  member
IF he is trying to get and is getting production which results  in  bettered
conditions, better products, better prosperity and  THIS  will  incidentally
show up in the stats.

It's a world of things that have to be done and coordinated before the
stats go up.

We are in the business of people, we are  in  the  business  of  a  bettered
world. We have to have completed cycles of action. And these  are  shown  in
stats.

We are also in a world of exchange and would be no matter what  ideology  we
lived under. We have to "make Gl" and we have to have "the stats up."

But our success is measured in terms of the ACTIONS we do,  for  only  those
show up in the indicators called statistics.

So, okay. Let's go about it the right way. And  find  what  is  holding  the
stats down and  handle  and  correct  those  things  and  so,  honestly  and
swiftly, become upstat.

L. RON HUBBARD

Founder

LRH:lf.gm

426



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 20 SEPTEMBER 1976-1

            ADDITION OF 17 APRIL 1977

Remimeo

All Staffs  (Reissued 5 Dec 1977, to clarify the point that this PL

      only clarifies HCO PL 20 Sept 76, THE STAT PUSH

      and does not cancel it.)

Org Series 35-1

Executive Series 17-1

STAT PUSH CLARIFIED

This policy letter is revised. The second paragraph  of  the  original  said
that it was dangerous to talk about the subject because  somebody  could  do
an immediate makewrong by saying "This means don't try to raise any stats."

Well, exactly that happened. There was a heavy campaign run  into  all  Flag
Operations Liaison Offices and to orgs  designed  to  discredit  asking  for
raises in stats. (The person who  did  it  and  failed  to  push  production
quotas is suspended and under Comm Ev.)

The whole point seems to have been missed. It was this: You can't ask for  a
NUMBER, you CAN and MUST ask for a SOMETHING.

That something is a product. It is a thing, a tangible item.

Right at this  minute,  as  a  result  of  a  mission,  HCO  PL  16  Nov  76
"Production  Quotas"  has  now  been  provided  with  thoroughly  researched
subproducts one has to push in order to get  the  PRODUCTS.  These  are  the
real tangible actions you have to take to get a number of  actual  products.
In other words, by getting many exact minor products, you then  can  achieve
the valuable final product.

STATISTICS are those numbers which simply count  the  products  attained  or
obtained.

Stat management is the only kind of management you can do  on  a  production
scene. Management by statistics was brought to a  fine  art  in  Scientology
admin tech. To discredit it is, of course, to court failure.

Abusing statistical management is also something of a  crime.  It  has  been
done by some managers who said "Get the stats up" without ever  saying  what
subproducts you had to get that would then make up the product.

Stat management is a valuable tool and has gotten  us  over  the  years.  To
discredit it first by saying first just "Get the stats  up"  without  saying
how or what or why was one side of the pendulum.  Then  the  pendulum  swung
clear to the extreme and people were being made  guilty  for  even  watching
stats or demanding or working to raise them.

So let's get a little middle swing of the pendulum now.

It is perfectly all right to demand that stats rise  so  long  as  one  says
what subproducts and products make up those stats and gives some  indication
of what people should do to get the stats rising.

It is perfectly all right to do stat management.

427



And it is perfectly okay to come down hard on people or orgs who fail to
get their stats in viable range.

So long as you give them some idea of what small products (subproducts)
they have to get to make up the real products, you are NOT doing a stat
push.

So long as you give people some direction and guidance, you can yell for
stat increases all you want.

And you better.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:lf.kjm.gm , 1977

428



HUBBARD COMMUNICATIONS

      Saint Hill Manor, East Grinstead,

HCO POLICY LETTER OF 14 NOVE

Remimeo Flag Bu All Orgs

Ext HCO FB  Admin Know-How Series 36

Org Series 36

Executive Series 18

Personnel Series 28

MANNING UP AN ORG

The Sequence of Posting Depts and Divs

You need an org bd first and an allocation board.

The sequence in which an org is manned up is roughly:

- Dept I

- Dept 11

- Reg and Body Routers and Intro people in Div 6

- Dept 12 (enough auditors and C/Ses to approach 2 admin to I tech in org)

- Dept 6

- Dept 7

- Dept 3

- SSO and Supers in Qual to train staff

- Dept 5 for CF Address and Letter Reges

- Dept 4 for promo

- Dept 21 (LRH Comm)

- Dept 10

- Dept 20

- FR & execs

- Full Div 6

- Full Div I

- Full Div 4

- Full Div 2

- Full Div 5

- Full Div 7

- Full Div 3

(Note, an AO always mans up the AO dept or div along with the SH one in
each case.)

Wrong sequence of manning is Dept 6, Dept 12, Dept 6, Dept 12, Dept 6, Dept
12, as you wind up with a stuck clinic that won't expand.

Wrong sequence will contract an org while trying to expand it as the org
will go out of balance, bad units, noisy and unproductive.

If manned in a correct sequence its income has a chance to stay abreast of
its new staff additions.

Emphasis on GI without comparable emphasis on delivery and organization can
throw an org into such a spin only a genius can run it.

Manned in proper sequence, and hatted as it goes, an org almost runs
itself.

429



Single-handing from the top comes from longstanding failures to man  or  man
in sequence, from earlier noncompliance with explicit  orders  or  from  not
understanding orgs in the first place.

An'unhappy org that doesn't produce has usually been manned  only  partially
and out of sequence.

The trick is planned manning, ignoring the screams of those  who  know  best
or demand personnel; just manning by posting those who  have  been  screamed
for the loudest is a sure way to wind  up  with  no  people  and  total  org
problems instead of a total org that is prosperous and producing.

Incidently, this is a rough approximation of the sequence  of  hats  the  ED
gradually unloads as his org takes over.

L. RON HUBBARD

Founder

LRH:nt.gm

430



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 16 NOVEMBER 1976

Remimeo

All Staffs

                                Org Series 37

                             Executive Series 19

PRODUCTION QUOTAS

                       Ref.- HCO PL 8 Feb 72 Issue 11

                              Mgmt Series Vol 2

In a recent pilot, executed at my orders by the Staff Captain, it was found
that:

WHERE A STAFF MEMBER DOES NOT KNOW THE SUBPRODUCTS WHICH GO TO MAKE UP A
GROSS DIVISIONAL STATISTIC THE GDS WILL SUFFER AND FALL.

And it was also found:

WHERE SUBPRODUCTS ARE NOT GIVEN A QUOTA, QUOTAING A GDS FAILS.

The report on the pilot follows and is given in full as it is  an  excellent
example of what a Product Officer or executive  runs  into  and  how  it  is
solved.

" During the last two weeks, while running  the  FSO,  I've  had  a  lot  of
experience with the above subject, and thought that the data that I have  on
it might be useful to you.

" When first going into the org I pushed  for  actual  products  along  with
quotaing of the GDSes.

"This went over very well, however, the day you sent a telex  to  quota  the
products that make up the stat, things really started moving much better.

"Your telex really opened the door for me as to how to go about  getting  an
org to work on products and get stats up.

"Here is the best example. The week before last on  Monday  or  Tuesday  the
student points were heading for bad downstats for the week. The D of  T  was
more or less tearing her hair out about how she could meet  her  quota.  She
and the Tech Sec were trying to figure out what had changed.

"This was right after I had read your telex referred to  above,  so  what  I
did was to tell them how they had to work on the products that make  up  the
stat.

"The next step was to list out what the subproducts were that  made  up  the
stat. I just made a very simple list, not necessarily a complete  one,  of.-
(1) course starts, (2) F/Ning students, (3) students  that  are  on  target,
(4) students that increase their production daily. Then made sure the  D  of
T would understand how these made up the stat.

"The next step after that was to change 1-4 above into 'number of.'

"This brought about what one could call instant sanity, and exclamations  of
realizations of how the area could be handled.

431



"This was followed up by making the D of T work on each of  these  products.
It took a lot of work and figure  out  how  to  do,  as  far  far  from  all
students were F/Ning,  etc.  It  took  actions  like  finding  every  bogged
student and debugging him on a flat-out basis.

"The end result was that the stat did not crash, but went up some, and  this
week went up even more.

"Other actions were required in the area, such as the  Qual  Sec  and  Chief
Off sorting out the TRs Course, the D of T  doing  TRs,  and  more,  but  it
worked for sure.

"After this, we made this the pattern for the dept  heads  to  follow:  i.e.
work on the products and subproducts that make up the stat, list  them  out,
quota them, make the quotas, make your GDS quotas.

"It has also been put in on Dept 18 lines, so that Tours and external  Reges
are no longer pushed on GI and bodies only. There is a  pilot  project  with
Flag Service Consultant  WUS  since  a  few  days  which  puts  in  a  whole
subproduct system and quotaing and reporting on  it,  which  was  very  well
received.

"However, what I also wanted to tell you,  is  that  this  does  not  go  in
automatically, we're still catching bugs on it.

"These are the bugs that have been run across:

" 1. Dir Reg had a bunch of subproducts and  products  beautifully  quotaed,
but when asked  what  his  quotas  were  for  'closes'  and  'completed  Reg
cycles,' he dropped his jaw as he had not thought about that.

"He immediately quotaed these and production increased right away.

"2. The Dir Procurement  (Dissem  Sec  HFA)  had  not  set  any  quotas  for
CF/Address as she stated that 'that area would not be  possible  to  quota.'
Her M U was that  she  thought  she  had  to  quota  every  single  area  of
Addresso, rather than the part they were working on at the moment.  She  had
a major win on this.

"She also kept her quotas in her head as she 'hated  to  have  papers  lying
around.' She since has them all in a book and is very happy.

"3. The Dist Sec could not think of the subproducts that would produce NNCE

"4. The Dir Income was working on subproducts in such a way  that  they  did
not add up to his GDS, or rather, that they did not result in his GDS  quota
being met, and tried to justify this,

"Several others required close  personal  contacts  to  list  out  what  the
products would be that made up their stat.

"MUs are still coming up, but it sure works! It's brilliant, Sir.

"My picture of an org that operated on this basis with  every  staff  member
should be incredible.

"Now, I have looked at the trouble an executive would run into  implementing
the order to quota products that make up stats, and I can see  lots,  unless
you know exactly how to do it.

"This is what I see on it:

"You would have to keep the GDS quota there and in mind  constantly,  as  if
you don't, things can slack off too easily.

432



"You would have to bring the terminals concerned to an understanding of  the
cycle of working on products that make up the stat.

"You would have to get a list of what  the  products  and  subproducts  are,
without making it miles long

"You would have to make sure that the  list  is  complete,  per  policy  and
actually makes up the stat.

"You would then have to make sure that the list is quotaed.

"You would then have to make sure that the quotas are  met,  and  you  would
have to watch out for anyone using it wrongly so the GDS quota is not met.

"On most of these you would have to make sure that there are proper  'figure
out how to do's,' on how to go about getting the products.

"The above actually, now that I look at it, fits in exactly  with  your  PLs
on Name, Want and Get the Products.

"I think also what is of importance is that you really break  down  what  it
takes to get the products: i.e. if the DTS here was told  to  get  10  fully
paids into the org, she would be 'blank,' until you broke it down  into-make
up the list of them, make so many contacts, get so many ETAs, etc.

"Pressure is still required to get a momentum and keep it going.

"Another example is getting out over 100,000 pieces of promo  in  one  week.
It takes incredible detailed planning that covers everything; when what  has
to be through I/A and on the assembly line, what checks have  to  be  gotten
when, what has to be addressed when and franked, what all hands  are  needed
and when, etc. I had to force through exact planning on  this  with  targets
assigned, etc., and then push like mad.

"The use of HCO PL Exec Series 7 is also very important in all this."

Therefore these conclusions can be considered valid and vital:

EVERY GDS MUST BE BROKEN DOWN INTO SUBPRODUCTS AND THE STAFF MEMBERS MUST
KNOW THEM IN ORDER TO ATTAIN A GDS.

And:

EVERY SUBPRODUCT MUST BE QUOTAED FOR A GDS QUOTA TO BE ATTAINED.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:nt.gm

433



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 JULY 1978

Remimeo

Org Series 38

HELD FROM ABOVE

DOUBLE-HATTING

There are two types of double-hatting.

One of these, we all know about and is very common  and  quite  permissible.
This is what might be called "level" double-hatting. In this,  for  example,
Mimeo Files is also Mimeo Files Equipment. So long as one does  not  have  a
hat in each of separate divisions and the hat is all in  one  division  (and
in a large org all in one department) not too much strain and  trouble  will
result.

The other type of double-hatting can be  called  "verticaP'  double-hatting.
In this, the head of an area also holds an 1/C hat in his own area.

We see this in " H17X' on org boards. "Held from above" is  very  common.  A
Tech Sec is also D of P.

Well, in a small org that isn't making any money and isn't delivering,  this
would be usual. Probably the Tech Sec would also be the only auditor.

But we are talking here about busy areas that produce where we  condone  too
much "HFA."

Vertical double-hatting is a sure way to be under stress.

Example: The Artillery Officer, 1 C of all artillery, takes on  the  hat  of
"Ammunition Inventory 1/C." Well, he's so tiMp in counting shells  he  omits
to notice-as he should as Artillery Officer 1/C-that they  just  lost  their
guns. Result-lost battle, court-martial. And all  because  he  was  vertical
double-hatted.

When a person occupies two points of different level on  a  command  channel
he is asking for trouble. He is busy on the lower point, usually because  it
is a full-time doingness, and so neglects many other sectors that should  be
supervised from the higher point.

When 1 see "D of P" marked as HFA by the ED, 1 don't have to look  at  stats
or future Ethics Orders for that org. I know exActly what they will be.  The
D of P post might be being done but the org will be in a shambles  for  lack
of active supervision. The ED will soon be the subject of a mission.

Yes, one can do it for a week-even a month at times. BUT  if  one  does  not
straighten it out he'll be on the aspirin route.

Advice to any 1/C who is vertical double-hatted is

1. Recruit

2. Train

3. Hat

the lower post quick and see that it produces.

CRAWL BACK UP THE ORG BOARD.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:ab.dr.gm

434



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 9 AUGUST 1979R

Remimeo     Issue 11

All Orgs    REVISED 19 NOVEMBER 1979

All Staff

      (Revisions in this type style)

      Establishment Officer Series 39

      Org Series 39

SERVICE PRODUCT OFFICER

(This HCO PL has been revised in order to show the importance of the

ProductlOrganizing Officer and Establishment Officer systems in relation

to the Service Product Officer. These systems are totally valid and

should be in full use in organizations.)

References:

The Flag Executive Briefing Course tape lectures

The Org Series

The Establishment Officer Series

HCO PL 9 Aug 791 CALL-IN: THE KEY TO FUTURE

      DELIVERY AND INCOME

HCO PL 7 Aug 76 1      NAME YOUR PRODUCT

HCO PL 7 Aug 76 11     WANT YOUR PRODUCT

HCO PL 7 Aug 76 111    TO GET YOU HAVE TO KNOW HOW

      TO ORGANIZE

HCO PL 20 Nov 65 THE PROMOTIONAL ACTIONS OF

      AN ORGANIZATION

HCO PL 28 Jul 74 ADDITIONS TO PROMOTIONAL

      ACTIONS OF AN ORGANIZATION

HCO PL 28 May 72 BOOM DATA

HCO PL 15 Nov 60 MODERN PROCUREMENT LETTERS

HCO PL 14 Feb 61 THE PATTERN OF A CENTRAL ORG

HCO PL 21 'Nov 68      SENIOR POLICY

HCO PL 28 Feb 65 DELIVER

HCO PL 23 Aug 79 1     DEBUG TECH

HCO PL 23 Aug 7911     DEBUG TECH CHECKLIST

HCO PL 9 Aug 79 111 SERVICE/CALL-IN COMMITTEE

HCO PL 10 Jul 65 LINES AND TERMINALS ROUTING

The post of SERVICE PRODUCT OFFICER is hereby established in the  Office  of
the CO/ED, Dept 19, of all Class IV and Sea Org orgs. His direct  senior  is
the CO/ED.

Until such time as a SERVICE PRODUCT OFFICER is posted the  responsibilities
and duties are covered by the Service/Call-in Committee as  fully  laid  out
in HCO PL 9 Aug 79 1, CALL-IN: THE KEY TO FUTURE  DELIVERY  AND  INCOME  and
HCO PL 9 Aug 79 111, SERVICE/CALL-IN COMMITTEE.

The VALUABLE FINAL PRODUCTS of this post are (1) flawlessly serviced and

435



completed paid pcs and students who re-sign-up for their next  service,  and
(2) high quality promotional items in the hands of  volumes  of  public  who
come in, sign-up and start an org service.

The main statistics for the SERVICE PRODUCT OFFICER are

(1) Number of pcs and students completed and  re-signed  on  to  their  next
service. (This includes those actually routed on to the next upper  org  for
services and who do re-sign.)

(2) Number of public in and started onto a service.

Completion: By completion is meant those actions completed and  attested  at
C & A and accompanied by an acceptable success story.

Re-sign: By re-sign-ups are meant pcs and students who, after completion  of
a service, see the Registrar to sign up again for another service  while  in
the org.

Promotional  Items:  Those  items  which  will  produce   income   for   the
organization. By  promotional  items  are  meant  those  things  which  make
Scientology and our products known and will cause people to  respond  either
in person or by  written  reply  to  the  result  of  receiving  Scientology
commodities. These are tours, book outlets, Sunday services, events,  upstat
image, fliers, info packs, handouts, books,  ASR  packs,  specified  service
promotion, etc.

There are of course many  other  stats  that  reflect  the  SERVICE  PRODUCT
OFFICER'S subproducts and these are VSD,  TOTAL  GI,  INTENSIVES  COMPLETED,
BULK MAIL OUT, NUMBER OF PROMOTIONAL ACTIONS OF THE ORG IN, NUMBER OF  FULLY
AND PARTIAL PAIDS GOTTEN INTO THE ORG AND ON TO THEIR  NEXT  SERVICE.  These
are very important parts  of  the  SERVICE  PRODUCT  OFFICER  HAT,  as  they
reflect his subproducts which lead to his valuable final product.

                           SERVICE PRODUCT OFFICER

                         RESPONSIBILITIES AND DUTIES

The purpose of an organization is to deliver  service  to  the  public.  The
primary functions which add up to delivery  to  the  public  are  promotion,
sales, call-in, delivery itself and re-sign. The Service Product Officer  is
responsible for the flow of PRODUCTS through these areas. He  is  a  PRODUCT
OFFICER. He names, wants and gets products in these areas and  thus  ensures
that the organization  is  accomplishing  its  purpose  of  service  to  the
public.

Fhe full technology of Product Officers is explained in the  Flag  Executive
Briefing  Course  lectures,  where  the  ProductlOrg  Officer   system   was
developed. This system is still fully valid and is, in  fact,  the  tech  of
the Service Product Officer. He is solely interested in products.  When  the
Service Product Officer comes across a situation that  requires  organizing,
he gets his Organizing Officer to handle it. The  0/0  (Organizing  Officer)
should actually be operating a  few  steps  ahead  of  the  Service  Product
Officer  at  a/1  times-organizing  for  immediate   production,   per   the
ProductlOrg system. A full study of the ProductlOrg system, as contained  in
the FEBC tapes, the Org Series and Esto Series 33, 34  and  35,  NAME,  WANT
AND GET  YOUR  PRODUCT,  is  recommended  in  order  to  attain  a  thorough
understanding of  the  actions  of  the  Service  Product  Officer  and  his
Organizing Officer.

The Service Product Officer is not a stopgap at any point of the  promotion,
sales, call-in, delivery and re-sign lines, where executives have failed  to
post  and  hat  staff  This  would  be  the  responsibility  of   the   Exec
Establishment Officer per Esto Series 1.  Establishment  Officers  see  that
short and long-range establishment are occurring in the organization in  the
form of recruiting, hatting and training of  staff  The  Esto  system  is  a
necessary and very vital tool  for  the  Service  Product  Officer  and  the
organizationand should definitely be in full use.

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The Service Product Officer has the authority  to  directly  order  or  work
with any terminal involved in the promotion, sales, call-in, delivery or re-
sign areas so long as he maintains direct liaison with their seniors.

The Service Product Officer must be fully aware of every  post  in  the  org
and what their jobs consist of. He must know who  handles  what  cycles  and
what cycles are on the lines. For instance, it is up to the Service  Product
Officer to be aware of all promotional actions occurring in the org and  who
is doing them, or if they aren't getting done. He  must  be  aware  of  what
public aren't getting serviced and he ensures  those  responsible  get  them
serviced. He doesn't do this himself  as  a  serious  goof  of  any  Product
Officer would be to go down the org  board  and  do  the  job  himself.  The
Service Product Officer must ensure others get the work done. Otherwise,  he
would wind up doing everyone's post and  not  getting  anything  done.  It's
actually pretty overwhelming to  think  of  a  Service  Product  Officer  as
responsible for doing everyone else's post duties. That's the sure-fire  way
to sink fast. Where a product isn't getting out the Service Product  Officer
debugs it using HCO PL DEBUG TECH, in order to get  production.  He  is  not
interested in first finding the person's MU or excuse, he is  interested  in
getting production occurring now. Let the Org Officer and Qual  worry  about
the staff member's MUs.

Divisional Secretaries are the Product Officers for their division  per  the
ProductlOrganizing Officer system. The Service  Product  Officer  sees  that
the Product Officers  over  the  whole  delivery  cycle  are  getting  their
products. He coordinates the flow of products from division to  division.  A
Service Product Officer doing his post fully and properly is, in  fact,  the
person that makes the org board work. He sees that products  aren't  jamming
up  at  one  point  of  the  line,  but  that  they  continue  through   the
organization.

The Service Product Officer walks into the Tech Div and finds the  Tech  Sec
sitting at his desk, shuffling  paper  and  the  pcs  are  piling  high  and
complaining about no service. The last thing  the  Service  Product  Officer
would do is start organizing the Tech staff around and scheduling  the  pcs.
No sir, that's a serious offense. The first thing he would do  is  find  out
what can be produced RIGHT NOW, what auditors can  be  gotten  into  session
right now and makes the Tech Sec do it and  GET  IT  DONE.  This  all  takes
about 15 minutes and he gets the area flowing again and then, WHAM!  .  .  .
he's out and into his next area. The Service Product Officer would  not  sit
down and just start word clearing or doing Exchange by Dynamics on the  Tech
Sec. He would unstick the flows and get them moving.  Then  he  would  alert
HCO and Qual to this serious  problem  of  unhattedness  and  demand  it  be
handled.

The basic sequence of the Service Product Officer on  getting  the  products
flowing off the lines is PUSH, DEBUG, DRIVE, NAME IT, WANT IT, AND  GET  IT.
That's the only way you ever get a product. Products don't happen  on  their
own.

This means he tells the Tech Sec to get  Joe  Blow  there  in  session  now!
There is no general "audit these pcs." You'd never get a product that way.

The ED/CO has no authority to order the Service Product Officer  to  perform
the total duties of any one post. The Service  Product  Officer  must  guard
against being stuck into one post after another, doing it  all  himself  Nor
is the Service Product Officer an "expeditor" for the CO/ED.

It is also very important that the Service Product  Officer  advise  seniors
that he is going into their areas so as not to  create  a  Danger  condition
and wind up having to run the entire org. He also does this by  getting  the
seniors to handle their juniors so a product is gotten. He does not walk  in
and cross-order the seniors of  areas  but  works  with  them  to  see  that
products are produced.

The Service Product Officer is one who comes up with BIG  IDEAS  on  getting
public flooded into the org and being serviced swiftly. He is  the  one  who
thinks along the  line  of  PRODUCTS  PRODUCTS  PRODUCTS.  By  spanning  the
divisions, he coordinates the product wanted and ensures  each  division  is
aware of its part in  getting  this  product  and  that  their  actions  are
uniform. Where the Service Product

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Officer spots diversity, or lack  of  uniformity,  he  must  alert  his  Org
Officer or HCO. By doing the actions  of  coordination  for  a  product  and
product demand, the Product Officer creates  a  team  and  more  importantly
sets the pace of the org's production and morale.

ORG LINES AND THE SERVICE PRODUCT OFFICER

There are certain aspects of the  organization  which  the  Service  Product
Officer must be thoroughly trained in to do his job properly.

The Service Product Officer must be fully aware of all  the  Valuable  Final
Products (VFPs) of each department and each division  of  the  org.  Without
this the Service Product Officer can create havoc, as he would  be  ordering
Division 6 to recruit or the Reges to supervise. By  not  knowing  cold  the
org VFPs,  the  Service  Product  Officer  would  certainly  jam  the  flows
throughout the org board.

A serious fault in any executive is not knowing the functions  of  terminals
and the relation  of  one  terminal  to  another.  A  key  function  of  any
executive is that of routing. An  executive  that  misroutes  communications
and particles will tie his org in knots  and  wonder  why  no  products  are
coming out. Therefore, a Service Product Officer must know cold  every  post
function in the org and what particles belong on what lines.

He has got to know where a product comes from and where it goes in order  to
see it through the lines. A Product Officer's job is to name, want  and  get
a product. However, he must first know where that product is  to  come  from
and where it is to go. This is an incredibly fundamental point.

In order for org lines to flow, routing forms (RFs) must be used. A  routing
form is a full step-by-step road map on  which  a  particle  travels.  Every
point a particle (which could be a student, pc, mail, etc.) must go  through
to wind up at its destination must be listed on the routing form.

The Service Product Officerk Organizing Officer must  ensure  routing  forms
exist and are in use for each and every line in an org he deals in. Both  he
and the Service Product Officer must know these forms cold and  be  able  to
instantly spot when a line is being abused or ignored so as to slam  in  the
correct routing.

A Service Product  Officer  must  fully  clay  demo  all  the  lines  of  an
organization for each and every product. This  must  include  each  particle
from entrance to the org and through all lines on which that particle  would
flow until it leaves the org.  Lines  are  the  most  fundamental  point  of
administration.  To  not  have  a  full  grasp  of  these  lines  would   be
detrimental to any Product Officer.

                           SERVICE PRODUCT OFFICER

                             SEQUENCE OF ACTIONS

It is very easy for the Service Product Officer to become wrapped up in  one
area while neglecting the others; however, this must not be done  as,  while
products might be getting through in one area, they may  well  be  seriously
bogging in others. The Service Product Officer is concerned with  promotion,
sales, call-in, delivery and re-sign. He begins his  product  officering  in
promotion and gets products out there or started and moves on to  sales  and
gets them on to getting  their  products  and  so  on  through  call-in  and
delivery and re-sign. He then  returns  to  the  beginning,  promotion,  and
follows up on what he started there and gets even more production out.  This
is basically how the Service Product Officer moves through the org.

Daily, the Service Product Officer must plan and battle plan  out  his  day.
He must list those products he intends to achieve in each one of  his  areas
and then gets them.

The Service Product  Officer  is  not  an  "information  courier"  or  "data
gatherer." He is ahead of the game and knows the data.  He  must  know  what
public haven't been regged in the org yet, he  must  know  who  hasn't  been
taken into session that day, or who

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has been stuck in Ethics for 3 days, and ensure these things get handled.
Therefore he must be quicker and faster than anyone else in the org and run
run run.

PROMOTION

Promotion is the first action of the SERVICE PRODUCT OFFICER. He must
ensure the many promotional pieces and actions are getting done. Some of
these are

1.    Selling of books.

2.    Staff selling books.

3.    Books placed in public bookstores.

4.    Selling of books to FSMs, franchises, distributors, retailers and
salesmen.

5.    Books sold on each public contact.

6.    Books advertised in mags, ads, posters, fliers, etc.

7.    ASR packs.

8.    Info packs.

9.    Div 6 handouts for lectures and free testing.

10.   Posters on major services in Div 6.

11.   Promo to field auditors, FSMs, gung ho groups, Dianetic study groups.

12.   Org mags.

13.   Flag shooting boards.

14.   Promo for future events and tours.

15.   The AUDITOR (for SHs).

16.   Clear News.

17.   ADVANCE! mag (for AOs).

18.   SOURCE mag (FSO).

19.   1 WANT TO GO CLEAR CLUB promo (AOs).

20.   SHSBC/NED/INTERNSHIPS/NOTs/GRADES, etc., specified in promo.

21.   Promo at points of public inquiry.

22.   Free testing ads.

23.   Fliers inviting people to buy Scientology books.

24.   More-Info-Cards used in books.

25.   Ads in newspapers.

26.   Questionnaires to detect people's plans for training and processing.

27.   Enough letters to public so they come in.

28.   All promotional actions per HCO PL 20 Nov 65, PROMOTIONAL ACTIONS OF
AN ORGANIZATION.

29.   Book seminars, public campaigns and lectures.

30.   Public Reception display (books, posters, handouts, etc.).

31.   Tours and events, Sunday service.

32.   Free testing line.

33.   Handling of gung ho groups, keeping FSMs well supplied and
supervision of Dianetic study groups and FSMs.

34.   Test centers outside the org as an extension.

35.   Radio and TV advertisements.

36.   Dept 17 services.

37.   Reception greeting, handling, routing, chasing up people for
appointments and handling incoming calls with ARC and efficiency.

38.   Formation of Dianetic counseling groups.

39.   Weekly tape and film plays.

40.   Promotes the org and standard tech to Auditors Association.

41.   Contacts and sees any sign of ARC broken field and alerts Chaplain to
clean up the field.

The first thing a Service Product Officer would want to do is get out a
large volume of promo to at least get some activity occurring. This would
entail Dissem getting any promo laying around the org dug up and sent out
to students and pcs. They would get it out in letters and mailings, they
would get it handed out to students and pcs, they would pick up the half-
completed promo piece, have it fixed up and sent out. They would have promo
placed in Reception, in any public inquiry, etc. In other words, the
Service Product Officer ensures that the org fully utilizes what promo they
do have. He would also have specific promo pieces done to enlighten the
field on what services

439



the org has. Where any of this bogged  he  would  push-debug-drive-name  it-
want it-and get it.

The Service Product Officer, in trying to  get  in  any  promotional  items,
must review what resources he has. For example, is there a Dir Clearing;  is
there a Receptionist; etc.? He must concentrate on getting  those  terminals
that already exist busy on promotional actions that will create the  largest
volume of inflow,  while  his  Organizing  Officer  works  on  getting  more
immediate resources to  increase  the  volume  even  further.  It  would  be
senseless to have the Dir Clearing running around trying to form  up  groups
in an inactive field, single-handing, when he  has  FSMs  that  need  to  be
gotten on to selecting and  driving  in  new  public.  The  Service  Product
Officer is concerned with priorities of  promotional  actions,  so  must  be
totally aware of all the promotional items  and  actions  that  an  org  can
produce.

Actions  such  as  "improved  org  appearance,"  "high  ARC  handling,"  and
"correct and efficient routing of public" can be put  in  instantly.  If  he
has 2 people in all of Dissem he  still  can  and  must  get  the  particles
flowing and products coming off the line.

SALES

The sales lines consist of enlightening the public,  having  lines  to  sign
people up, getting public into the org and signed up for service.

The following gives you an idea of some of the sales actions and lines in
an org:

1.    Body Reg phones and schedules public to come in for interview.

2.    Use of CF to produce business.

3.    Reges who accept advance registrations.

4.    D of T procurement of students.

5.    D of P procurement of pcs.

6.    Receptionist sells to public coming in.

7.    SHs in communication with the Class IV Org Tech  Secs  and  Registrars
and targeting them for public completing and routing on to the higher org.

8.    AO's and SH's case consultant actions.

9.    AO/SH events to Class IV Org academies to encourage upper level
auditor training.

10.   Use of FSMs, Auditors Associations, personal contact, etc., to get
public into the org and on to their next service.

11.   Fast lines so public are not left waiting to see the Reg.

The lines of routing a public person to the  Reg,  or  from  the  Reg  to  a
service must be tight so public aren't  lost,  and  the  Reg  is  kept  busy
continuously with the public. Therefore, the Service  Product  Officer  must
police these lines and where he notices any lack of uniformity he  gets  his
Org Officer  onto  it.  Nonuniform  or  slow  routing  interferes  with  the
product, so the Service Product Officer gets it  speeded  up  now  by  push-
debug-drive-name it-want it-and get it.

The first actions of the Service Product Officer in the sales  area  are  to
get all "in-the-org" public routed to the Reg on breaks or after course  end
to be further signed up for additional service.  He  can  also  have  Dissem
drilling done with Reges so as to increase sales in the org.  His  operating
procedure is products, products, products, now, now, now.  His  Org  Officer
or HCO and Qual can worry about organize, organize, organize.

CALL-IN

Call-in is the action of getting fully paids into the org on to  their  next
service. This also includes getting partially paids fully  paid  and  on  to
their next service. These functions are of  great  concern  to  the  SERVICE
PRODUCT OFFICER as undelivered services to the public can mess  up  a  field
and increase the chance of refunds. The Service Product Officer  should  see
to it that the Call-in Units are given stiff targets and

440



that their  production  is  not  monitored  by  low  auditor  hours  or  low
producing training areas. The execution of needed programs  to  get  Call-in
Units fully operational is under the Service Product Officer per  HCO  PL  9
Aug 79 1 CALL-IN: THE KEY TO FUTURE DELIVERY AND INCOME.  This  same  policy
also lists out the functions of the Call-in  Units.  Call-in  falls  between
sales and delivery, as it deals with those either fully or partly  paid  and
needing only to finish payment and be called in and gotten onto service.

DELIVERY

The Service Product Officer must ensure that the service lines  of  the  org
are fast and 100% standard, that pcs and students do  complete  quickly  and
don't get lost off the lines.

The Service Product Officer is to have an alert line with the public set  up
whereby if a student or pc's study or auditing is slowed, or if  the  public
person is dissatisfied in any way, he can alert the Service Product  Officer
so it can be handled.

Some of the actions and  lines  to  be  product  officered  by  the  Service
Product Officer are as follows:

I .   Tech Services arranges housing, has the pc met when he is arriving
and generally operates as the pc's host while in the org.

2.    The many lines such as pc  to  Ethics,  pc  to  Examiner,  student  to
Ethics, student to Qual, C/S Series 25 line and pc to D of P  line  must  be
drilled so they are flawless and handled with ARC.

3.    The most senior policy applied to this area is HCO PL 21 Nov 68,
SENIOR POLICY "WE ALWAYS DELIVER WHAT WE PROMISE."

4.    There must be an adequate amount of auditors, Tech Pages and FESers,
Ds of P, Supervisors, Course Admins, etc.

5.    The auditing line must be fast so no pcs wait to be serviced.

6.    Use of all hands tech terminals in the org auditing when required to
handle backlogged service.

7.    Getting students through their courses and on to their internship at
which point they can audit in the HGC.

8.    Proper scheduling so every pc gets in 121/2 hours a week minimum.

9.    Recovering blown auditors, getting them fixed up and auditing.

The Service Product Officer ensures tech lines are  fast.  For  instance,  a
pc's folder not getting C/Sed for  days,  or  idle  auditors  and  Ds  of  P
"waiting" for pcs when they can be made to procure pcs, must be spotted  and
handled by the Service Product Officer.

The Service Product Officer must be kept briefed on what  pcs  and  students
arrive and how they are going to be handled. He must  get  around  to  these
areas (Training and HGQ to ensure that there are no  slows  with  public  or
anything that would get in the way of public receiving top quality service.

Service to the public is the reason the org is there  and  service  must  be
kept fast and 100% standard and plentiful. This is a  primary  duty  of  the
Service Product Officer; he is there to ensure this occurs.

It is losses on service that keep public away, org income down and staff
pay low.

RE-SIGN-UP

The re-sign-up line is also very key to  an  organization's  prosperity.  It
brings further  income,  and  proves  conclusively  that  the  last  service
received by the public person was of high quality. This is why  the  Service
Product Officer must be very alert to the amount of re-signs.  Some  of  the
things that should be watched for are

I .   That the Reg is supplied with an upstat cert for his last completed
service to present to the student or pc.

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2.    That the Reg knows fully how to handle the public person that won't
re-sign (by sending them to Qual).

3.     The  Reg  must  be  provided  with  tech   estimates,   Grade   Chart
information, etc., so he is aware ahead of time of what the student or  pc's
next action is.

4.    Tech terminals are fully briefed and the line is in that every
completion gets routed to the Reg. This must be drilled.

The public person should be serviced  in  your  org  until  he/she  requires
upper level service that  your  org  cannot  deliver,'at  which  point  they
should be directed to the next higher org.

PITFALLS

The Service Product Officer can lose his effectiveness if he takes any  "hey
you" orders or gets stuck in at various points. He is not an  expeditor.  He
is  not  an  information  and  full-time  coordinator  terminal.  He  is  an
executive, a Product Officer, and he is there to ensure the  entire  machine
runs.

He must be well versed on actions occurring in the org.  He  must  also  pay
strict attention to completing  actions  he  has  started  and  to  carry  a
handling through to a done. Otherwise he can  wrap  himself  around  a  pole
with incomplete cycles which will ball up the line and prevent  the  service
lines from flowing flawlessly.

Where the Service Product Officer post bogs it is undoubtedly due to a  lack
of an Organizing Officer, as with the  speed  in  which  a  Service  Product
Officer demands products, he requires a fast moving Org Officer.  So  it  is
essential this post be provided with an Org Officer as soon as possible.

Those personnel in the org who are responsible for  organization,  any  Esto
personnel, etc., are the people who put the units in the org  there.  It  is
not the duty  of  a  Service  Product  Officer  to  man  and  hat  the  org.
Therefore, it is a lot of sweat off the Service Product  Officer~3  brow  to
have a fully functioning Esto team backing up his  actions  in  getting  the
flow of products out of the organization.

SUMMARY

The Service Product Officer ensures all the actions of getting public  into,
through and out of the org are accomplished with high quality results.

It is extremely important that this post be manned in each  and  every  org.
It doesn't just make the difference between a poor, empty  org  and  a  good
org. This post makes the difference between a good org and a booming org.

L. RON HUBBARD

Founder

LRH:dr.gal.gm

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                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 FEBRUARY 1980

Remimeo

Exec Hats

All Staff Hats

Esto Series 40

Org Series 40

Product Debug Series 9

ORDER versus DISORDER

(Ref- HCO PL 9 Feb 74R ETHICS-CONDITION BELOW

      Rev. 17.2.80     TREASON-CONFUSION FORMULA

      AND EXPANDED CONFUSION

      FORMULA

HCO PL 30 Dec 70 ENVIRONMENTAL CONTROL)

I made a breakthrough recently, while  investigating  low  production  areas
and realized that a good deal more needs to be said on the subject of  order
and disorder.

Order is defined as a condition in which everything is in its  proper  place
and performs its proper function. A person with a personal  sense  of  order
knows what the things in his area are, he knows where  they  are,  he  knows
what they are for. He  understands  their  value  and  relationship  to  the
whole.

A personal sense of order is essential in getting out products in an area.

An orderly typist, for instance, would  have  all  the  materials  requiring
typing, she would have ample paper  and  carbons  within  arm's  reach,  she
would have her correction fluid to hand, etc. With all  preparatory  actions
done, she would sit down to type with an operational  typewriter  and  would
know what that typewriter was and what it was for.

She would be able to sit down and get her product, with no wasted motion  or
stops.

But let's say you had a carpenter  who  couldn't  find  his  hammer  and  he
didn't even know what a hammer was for  and  he  couldn't  find  his  chisel
because when he picked it up he put it down and couldn't find it  again  and
then he didn't know where his nails were. You give him a  supply  of  lumber
and he doesn't know what it's for, so he doesn't categorize it where he  can
put his hands on it.

How many houses do you think he would build?

The actual fact of the case is that a  disordered  person,  operating  in  a
disorganized area, makes a 10-minute cycle into a 3-week cycle (believe  it,
this is true) simply because he couldn't find his ruler,  lost  his  eraser,
broke his typewriter, dropped a nut and couldn't find it again  and  had  to
send off to Seattle for another one, etc., etc., etc.

BASICS

In working with a group of nonproductive technicians recently, I  discovered
something interesting: out-basics. I actually  found  a  lower  undercut  to
what we generally think of when we say "basics."

These technicians had reportedly researched a key  piece  of  equipment  and
had it all sorted out. But I found that they  didn't  even  know  the  basic
fundamental of what that machine was supposed  to  do  and  what  they  were
supposed to be doing in their area.

That told me at once that they had no orderly files, no research data.  They
were losing things.

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Now, if they were losing things, that opened  the  door  to  another  basic:
they couldn't have known where things were. They put down a tool over  there
and then when they needed it again they would have  to  look  all  over  the
place because they hadn't put it down where it belonged.

Their work was not organized so that it could be done  and  the  tools  were
not known.

So I checked this out. Were they logging the things they were using  in  and
out so they could find them again? Were they putting things away  when  they
were done with them? No, they weren't.

This is simply the basic admin  coupled  with  the  knowledge  of  what  the
things one is working with are. It's orderliness  and  knowing  what  things
are, knowing what  they  are  for  and  where  they  are,  etc.  That's  the
undercut.

If people don't have a true knowledge of what  the  things  they're  working
with are, if there are omitted tools, inoperational  tools,  if  they  don't
know what their tools are supposed to do, if there are no files or  if  once
used, files are not reassembled and put back in the file drawer,  if  things
get lost and people don't know where things are and  so  on,  they  will  be
running around spending 3 or 4 hours trying to  locate  a  piece  of  paper.
That isn't production.

If a person can't tell you what the things he works with are,  what  they're
for and where they are, he isn't going to get out any  product.  He  doesn't
know what he's doing.

It's like the carpenter trying to build a house without  knowing  what  he's
got to build it with, without understanding his tools and raw materials  and
the basic actions he must take to get his product. That's what  was  holding
up production in the area: disorderliness. And the basics were out.

This is  actually  far  below  knowing  the  tech  of  the  area-the  actual
techniques used to get the product. The person does not even know  what  his
tools and equipment are or what they're supposed  to  do.  He  doesn't  know
whether they are operational or inoperational. He  doesn't  know  that  when
you use a tool you return it to its proper place. When you have  a  despatch
you put it in a file where it can be retrieved. It  undercuts  even  knowing
the orders and PLs relevant to his hat.

What are the basics that are missing? The basics  of  sitting  down  to  the
table that one is supposed to sit down to, to do the  work!  The  basics  of
knowing what the tools, materials and equipment he works with are  and  what
he's supposed to do with them to get his product. Those are the basics  that
are missing.

We are down to a real reason why a person cannot turn out products.

That is what is holding up such a person's  production.  It  is  well  below
knowing the technique of his job.

Out-basics. Does the guy know where the file is? When he finishes with  that
file does he leave it scattered all over the place or does he  put  it  back
together and into the file where it can be found?

Now, a person who's working will have papers all over the  place,  but  does
he know where they are and is he then going to reassemble them and put  them
back in order or is he going to just leave them there  and  pile  some  more
papers on top of them?

If you find Project No. 2 scattered on  top  of  Project  No.  1,  you  know
something about that area. Basics are out.

This is a little piece of tech and  with  that  piece  of  tech  you've  got
insight. You would have to have an overall picture of what  the  area  would
look like when properly ordered and organized-how it would be  organized  to
get optimum production.

Then you could inspect the area and spot what's going on. You would  inspect
on the basis of. how does the area compare with how it should be  organized?
You would find out if the personnel didn't know what  the  things  in  their
area were or what they

444



were for, you would see if they knew the value of things in the area  or  if
there were altered importances, omitted files or filing, actions being  done
out of sequence, inoperational tools or equipment,  anything  added  to  the
scene that was inapplicable to production, etc.

In other words, you can inspect  an  area  by  outpoints  against  this  one
factor of orderliness.

This sort of out-basics and disorderliness cuts production down to  nothing.
There just won't be any production at all. There will be no houses built.

What we are talking about here is an orderly frame of mind. A person with  a
sense of order and an understanding of what he is doing, sits down to  write
a story or a report and he'll have his paper to hand, he'll  have  it  fixed
up with carbons and he'll have his reference notes to hand.  And  before  he
touches the typewriter, he'll familiarize himself with what  the  scene  is.
He'll do the necessary preparatory work in order to get his product.

Now someone else might sit down, write something, then dimly remember  there
was a note someplace and then look for an hour to find where that  note  was
and then not be able to find it and then  decide  that  it's  not  important
anyway and then come back and forth a few times and finally  find  out  he's
typed it all up without a carbon.

There is a handling for this. Anyone trying to handle an  area  who  doesn't
understand the basics of what they're dealing with and is in an utter  state
of disorder must get a firm reality on the fact that until  the  basics  are
learned and the disorder handled, the area will not produce satisfactorily.

The following inspection is used in determining and handling  the  state  of
such an area.

INSPECTION

This inspection is done in order to determine an area's knowledge of  basics
and its orderliness. It can be done by an area's senior for the  purpose  of
locating and correcting disordered areas. It is also used as part  of  debug
tech as covered in HCO PL 23 Aug 79 DEBUG TECH. It is for use by anyone  who
is in the business of production and getting products.

The full inspection below would be done, clipboard in hand, with full  notes
made and then handlings would be worked out based on what was found  in  the
inspection (according to the Handling Section of this PL and  the  suggested
handlings given in parentheses below).

1.    DOES HE KNO W WHAT ORGANIZATION, FIRM OR COMPANY HE'S IN? DOES HE
KNOW WHAT HIS POST OR JOB IS?

This is a matter of does he even know where he is. Does  he  know  what  the
organization or company he works for is, does he know what the  post  he  is
holding is?

(If he is so confused and disoriented that he doesn't even know the  company
or org he's in or doesn't know what his post  is,  he  needs  to  apply  the
Expanded Confusion Formula, HCO PL 9 Feb 74R and then work  up  through  the
conditions.

Of course the person would also need to be instant hatted  on  his  post-the
organization, his post title, his relative position on the org  board,  what
he's supposed to produce on his post, etc.

If he is doing this handling as part  of  his  Expanded  Confusion  Formula,
simply have him get the instant hatting and  carry  on  with  his  Confusion
Formula.)

445



2.    A SK THE PERSON WHA T HIS PR OD UCT IS.

Does he know? Can he tell you without comm lag or confusion?

You may find out that he has no idea of what his product is or that  he  has
a wrong product or that he  has  confusions  about  his  product.  Maybe  he
doesn't even know he's supposed to get out products.

(If this is the case, he must find out what his product is. If the  person's
product is given in policy references, he  should  look  these  up.  If  his
product is not covered in tech or policy references, he'll have to work  out
what it is.)

3.    CAN HE RATTLE OFF A LIST OF THE BASIC  ACTIONS,  IN  PROPER  SEQUENCE,
NECESSARY TO GET OUT HIS PRODUCT OR DOES HE HEM AND HAW ON IT?

Does he know what to do with his product once it is completed?

He may try to tell you what he does each day or how he handles this or  that
and what troubles he's having with his post. You note this, but what  you're
interested in is does he know the basic actions he has to take  to  get  out
his product. And does he know what  to  do  with  the  product  once  it  is
complete?

(If he can't rattle off the sequence of actions 1, 2,  3  then  he'd  better
clay demo the basic actions, in proper sequence, necessary to  get  out  his
product and then drill these actions until he can rattle  them  off  in  his
sleep. If he does not know what to do with his product once completed,  then
he'd need to find out and then drill handling the completed product.)

4.    ASK HIM WHAT HIS TOOLS ARE THAT ENABLE HIM TO GET THIS PRODUCT

Note his reaction. Can he name  his  tools  at  all?  Does  he  include  the
significant tools of his area? Does he include his hat pack as a tool?

(If he doesn't know what his tools are,  he'd  better  find  out  what  he's
operating with and what it does. A good workman knows his tools so  well  he
can use them blindfolded, standing on his head and with one arm tied  behind
his back.)

5.    4 SK HIM TO SHOW YOU HIS TOOLS.

Are his tools present in the work area or does he have them  out  of  reach,
down the hall or in some other room?

(He may have to reorganize his work space  to  get  his  tools  within  easy
reach and to get in  some  basics  of  organization.  The  purpose  of  such
organization would be to make production easier and faster.)

6.    A SK HIM TO TELL YO U WHA T EA CH OF HIS TOOLS A RE.

Can he define them? Does he know what each of them are and what they are
for?

(If he doesn't know, he'd better find out.)

7.    ASK HIM TO TELL YOU WHAT THE RELATIONSHIP IS BETWEEN EACH ONE OF HIS
TOOLS AND HIS PRODUCT

(If he can't do this, have him clay demo the steps he takes to get  out  his
products with each tool he uses, so he sees the  relationship  between  each
tool and his product.)

8.    ASK HIM TO NAME OFF THERAW MATERIALS HE WORKS WITH. ASK HIM TO SHO W
YO U HIS MA TERIA LS.

Does he know what his raw materials are? Are they  in  his  work  area?  Are
they in order? Does he know where to get them?

446



(He may have to find out  what  the  raw  materials  of  his  post  are  (by
defining them) and where they come  from.  He  should  drill  procuring  and
handling them and then run Reach and Withdraw on them.)

9.    DOES HE HAVE A FILE CABINET? FILES? ASK HIM WHAT THEY ARE.

Does he know what they are for? Does he know what a despatch is, etc.?

(He may have  to  be  brought  to  an  understanding  of  what  files,  file
cabinets, despatches, etc., are and what they have to do with  him  and  his
product. He may have to clay demo the relationship between these things.  He
will have to set up a filing system. Ref. HCO PL 18 Mar 72, Esto Series  10,
FILES.)

10.   DOES HE HAVE A SYSTEM FOR LOCATING THINGS?

Ask to see it. Check his files. Does he have logs? Does he  log  things  out
and correct the logs when he puts them back? Are the comm  baskets  labeled?
Does he have a specific place for supplies? Ask him  to  find  something  in
his files. How long does it take?

Does he have an orderly collection of references  or  a  library  containing
the materials of his field? Is it organized so as to be usable?

(If he has no system for locating things, have him  set  one  up.  Have  him
establish a filing  system,  a  logging  system,  label  the  comm  baskets,
arrange supplies, etc. Get a reference library set up and  organized.  Drill
using the system he has.)

11.   WHEN HE USES AN ITEM DOES HE PUT IT BACK IN THE SAME PLACE? DOESHE
PUTITBACK WHERE OTHERS CANFIND IT?

He'll probably tell you, yes, of course he does. Look  around.  Are  objects
and files lying about? Is the place neat or is it a mess? Ask  him  to  find
you something. Does he know right where it is, or does  he  have  to  search
around? Is there an accumulation of unhandled particles around?

(Have him clay demo why it might be advantageous to put things back  in  the
same place he found them.  Drill  him  on  putting  things  back  when  he's
finished with them. Have him clean up the place, handling  any  accumulation
of unhandled particles.)

12.   IF FEASIBLE, ACTUALLY GO WITH THE PERSON TO HIS PERSONAL LIVING AREA.

Is the bed made? Is the area clean? Are things  put  away9  How  much  dirty
laundry does he have? Is it stowed in a bag or hamper or is it strewn  about
the place? People who had  disorderly  personal  mest,  I  for  I  were  not
getting out any products on post-they had no sense of order.

(If  his  personal  quarters  are  a  mess  have  him-on  his  own  time  of
coursestraighten up his personal area and  keep  it  that  way  on  a  daily
basis. This will teach him what order is.)

HANDLING

Some areas, of course, will be found to be in excellent order and will  pass
the inspection. These will most likely be high production areas.

Other areas will be found to have only a few points out which would  correct
easily with the above handlings. These will probably  be  areas  where  some
production is occurring.

Where personnel have a concept of what order is  and  why  it  is  important
they will usually be eager to correct  the  points  of  disorder  that  have
turned up on the investigation and may need no further urging,  drilling  or
correction, but will quickly set about remedying outpoints. For many  bright
and willing staff members just reading this policy will  be  enough  to  get
them to straighten out their areas right away.

447



There is, however, a sector which has no concept of order, and may not  have
the slightest notion of why anyone would  bother  with  it.  You  will  most
likly find them in apathy, overwhelm or despair with regard  to  their  post
areas. No matter what they do they simply cannot get their products  out  in
adequate quantity and quality. They try  and  try  and  try  but  everything
seems to be working against them.

When you find such a situation, know that the area is in Confusion. You  are
trying to handle an area which is in a  confirmed,  dedicated  condition  of
Confusion.

Such an area or individual would require the  application  of  the  Expanded
Confusion Formula (HCO PL 9 Feb 74R) including the handlings  above.  So  if
these things confirm in an area you must use the Expanded Confusion  Formula
and the handlings given above to full completion. Because, frankly, such  an
area or individual is in  a  condition  of  Confusion  and  will  remain  in
Confusion until the Expanded Confusion Formula including the full  handlings
from the inspection are applied.

Once out of Confusion the person would have to be  brought  up  through  the
rest of the conditions.

CAUTION

The condition of Confusion is a very  low  condition  and  should  never  be
assigned where it is not warranted. Where one or two  points  on  the  above
inspection were found to be out  in  an  area,  and  where  these  corrected
easily, there would be no purpose in assigning Confusion to  that  area.  In
fact it may worsen an area to assign an incorrect condition.

But where you have a long-term situation of  no  or  few  products  combined
with a state of  disorder,  know  that  the  area  or  individual  is  in  a
condition of Confusion and that the application  of  the  Confusion  Formula
plus the handlings given in this PL will bring the area out of the muck  and
up to square one where it can begin producing.

NOTE: If the inspection is done on a person or area and some of  the  points
are found to be out and handlings are done but no condition of Confusion  is
assigned the area must be reinspected about a week later. This way you  will
detect if an actual condition of Confusion was  missed,  as  the  area  will
have lapsed back into disorderliness or will have worsened.

SUMMARY

A knowledge of the basics of an area and having orderliness in an  area  are
essential to production.

When you find a fellow who is a light year away from the basics and  doesn't
have a clue on the subject of order and  he's  flying  way  up  in  the  sky
someplace instead of just trying to put together what he's supposed  to  put
together or do what he's supposed to do, you've got your finger on  his  Why
for no production.

With the inspection and handlings given in this policy  we  can  now  handle
any degree of disorderliness and disorganization.

And order will reign.

Nonproductive areas become capable of producing.

Already-producing areas increase their production.

And production will roll.

L. RON HUBBARD

Founder

LRH:gal.gm Copyright 10 1980

448



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 FEBRUARY 1980

Remimeo

I

Org Series 41

Finance Series 25

Executive Series 21

PRODUCTION AND ONE'S STANDARD OF LIVING

References:

BPL 19 Mar 71*   Finance Series 7

      BEAN THEORY-FINANCE AS A

      COMMODITY

HCO PL 9 Mar 72 1      Finance Series I I

      INCOME FLOWS AND POOLS-PRINCIPLES

      OF MONEY MANAGEMENT

HCO PL 27 Nov 71 Exec Series 3, MONEY

HCO PL 3 Dec 71  Exec Series 4, EXCHANGE

FEBC Tapes

(NOTE.- I realize that management units, orgs and staffs are  daily  pounded
with false economic data. The real facts of life  collide  with  much  false
data. Such crippling  data  comes  from  many  sources-school,  advertisers,
government, bankers, propagandists, even parents who insisted  Johnny  be  a
doctor so he could "live well" or set a horrible  example  themselves.  Many
have had a hand in messing up people's wits on the subject. It is  a  factor
in inhibiting the individual prosperity of  executives,  staff  members  and
orgs. Where an area is not prospering, this PL should be  starrated  on  its
people and the false data they have on this subject stripped  so  that  they
then can prosper as they should.)

"Standard of Living" can be defined as the relative quality  of  a  person's
or group's possessions, quarters, food, equipment, tools and  conditions  of
their area of work and existence. It is the state of  the  person's  living,
including working, environment. Where its potential  continuance  exists  it
is related to survival. It is a basic natural  economic  law  that  personal
production of VFPs and one's standard of living are intimately related.

This applies to the individual as well as the team.

Where violations occur, inequities exist.

At a personal level one must produce in excess of  his  standard  of  living
just to retain and maintain it.

Actually, the "excess" means that  because  of  overload,  taxes,  services,
plant, utilities, raw materials, machine and other costs additional  to  his
own work sphere, a person cannot expect to get the full value  of  his  VFPs
all to himself. That is not economically feasible. The "excess" varies  from
post to post and job to job but is never less than 5X minimum.  In  industry
it is considered to be at  least  IOX  to  maintain  company  standards  and
solvency. The "excess" can be very high indeed in some  industries.  But  in
any case any idea that it should be one for one is fatal.  People  who  know
little of economics or management sometimes propose a worker should get  the
full value of his VFPs-but all work and all VFPs  require  support  services
and to neglect these would quickly bring on poverty. Even when  working  for
oneself alone, these "excess" factors exist and seldom drop below 5X as  one
still requires support services. Corrected gross  income  divided  by  staff
has to be at least 5X the cost of the standard of living of  the  individual
staff member for that standard to be barely

449



maintained. This does not mean staff pay should be 1/5 of  that  figure.  It
means that all the things (pay included)  that  go  into  maintaining  their
welfare and work environment would  have  to  be  covered  by  1/5  of  that
figure. A fairly efficient and prosperous org with  a  hatted,  industrious,
gung ho staff can very easily maintain quite acceptable  standards  at  1/10
that figure. The actual cash value of every piece of work done by  a  person
can actually be calculated. It is  intricate  and  tricky  to  do  and  much
subject to over and under estimation but it can be done. It is not vital  to
do this but one might just be curious about it. If so, do it  for  yourself.
Thus VFPs can be priced against what they bring in as part  of  the  overall
scene even when they seem indirect. All the above  figures  are  very  rough
and subject to variation but this gives you some idea of what  is  meant  by
"excess" in that law.

Where a number of people in a group or on a team  do  not  produce  VFPs  in
excess of their standard of living they depress the standard  of  living  of
the group or team.

Where some in a group do  not  only  not  produce  VFPs  but  produce  overt
products, they actively depress the standard of living of everyone  in  that
group or on that team.

Many economists and theorists seek to avoid that law. They do it to  gratify
politicians or aggrandize  some  false  philosophy  whose  true  purpose  is
suppression under other colors.  But  the  law  remains  and  its  violation
breeds an epidemic of economic ills. Amongst such ills are inflation,  super
bureaucracy, chaos with the marketplace and a decay of the civilization.

When a whole society demands a high  standard  of  living  and  yet  doesn't
concentrate on the personal production of VFPs, it is finished.

Products are the basis of a standard  of  living.  They  don't  appear  from
midair. They come from work truly done. Not from hope or false data.

It is a druggie's dream that machines,  computers,  under  the  dictatorship
will do it all. Machines can raise a standard  of  living  by  assisting  in
production. But they can't do Man's living for him.  Intelligently  designed
and used, they permit, within limits, increases in population. But  machines
are just tools. They have  to  be  thought  up,  designed,  built,  run  and
serviced and their raw materials and fuel have to  be  found  and  delivered
and their products  promoted,  delivered,  used  and  often  in  their  turn
serviced. The machine age was  actually  recognized  as  failed  when  world
leaders first began to urge population reduction on the planet  to  "improve
the individual standard of living." If machines were going to solve  it  all
why is the civilization now in such a steep decline? It took  producing  men
working in and with a machine age to make the society go. Not idle  mobs  on
welfare expecting a high standard of living while  a  few  guys  work  their
guts out. Pie in the sky is nice but did anyone ever get  to  eat  it?  This
misinterpretation of the machine age was a  heavy  violation  of  the  above
economic law. But the real harm of the machine  age  was  creating  a  false
belief that one did not have  to  produce  much  to  survive.  This  lowered
people's estimate of how much they  would  themselves  have  to  produce  to
survive, much less have a high standard of living.  Factually  one  normally
has to work fast and  expertly  and  in  high  volume  to  bring  about  any
acceptable standard of living for himself and his group.  This  is  a  point
the machine age obscures. But it remains vividly and demonstrably true.

An executive who works hard yet  wonders  about  his  own  low  standard  of
living should look over his people to find those who are not producing  VFPs
or who produce even overt products while yet demanding a  living.  They  are
absorbing the potential raised standard of living of the group.

Where a group has a very low standard of living, it  need  only  review  the
above law and its potential violations to understand why.

One cannot, in fact must not, increase the standard of living of a group  in
ways that violate the above law. It will eventually bring calamity  on  that
group.

In a society led astray by crackpot economics, violations of the  above  law
create a vast number of wrong examples. The rich (most  of  whom  work  like
mad) are seen as idle or even criminals. The best way of  life  is  made  to
appear to be idleness. One seems to be owed a living without any  effort  on
his own part. The producing worker  should  be  fined  by  higher  taxation.
These are not seen to be simply false data spread about to

450



wreck the place but are held as "truths." And in their wake comes a  funeral
for that group or society.

There   is   even   an   economic   theory   spread   about   today   called
"equalitarianism." It declares everyone should get the  same  pay  and  have
the same standard of living. It does not mention that anyone should  do  any
work. It holds that the better worker should  not  be  better  rewarded.  It
would crash any society.

Then there is the "monetarist" who  believes  you  can  manipulate  a  whole
society with money alone. And no thought of any production.  His  answer  to
production? (You won't believe  this.)  Decrease  demand!  In  other  words,
reduce everyone's standard of living!

Basic economics eventually catches up with all these weird false  pretenses.
It may take time but, as in the law of gravity, the apple  eventually  falls
no matter how many crackpots advance theories to say it can't fall, will  go
up, or vanish. Real basic economic laws are like that.  They  catch  up.  So
don't wonder about  inflation  and  depression  and  decayed  civilizations.
Basic economics caught up with the crackpots.

An executive has to pay attention to the  basic  law  about  a  standard  of
living. If he doesn't pay close attention to it. the standard of  living  of
himself and of his group will cave in.

He can be "a good fellow" and seek popularity by  attempting  to  raise  the
standard above what is earned. He and his group will crash.

He can be  foolish  and  seek  to  raise  his  own  rewards  above  what  he
personally is earning in terms of VFPs. But  both  he  and  his  group  will
fail.

He can ignore the real producers  of  the  group  and  not  see  that  their
standard of living is comparable to their individual production. And he  and
the group will fail.

He can ignore the nonproducers and  the  overt  product  makers  and  by  so
ignoring them, tear his own and the group's standard of living to bits.

He can listen to a bunch of PR from a staff member about how  valuable  that
staff member is and surrender to it without  ever  really  counting  up  the
real VFPs that staff member is  not  producing  (or  even  preventing).  (It
happens.) Only real VFPs count.

He can work himself half to death without demanding production  from  others
and have his own standard of living crash.

There are swarms of false data flying about today on  this  subject.  It  is
taught in schools, the very best schools; it is heard on the radio and  seen
on TV and in the papers. The civilization, as it caves  in,  is  blinded  by
literally thousands of false ideas about what and how a standard  of  living
occurs. These, where they conflict with the basic law, actively prevent  one
from prospering as they blind him to the truth of his scene.

In an org or management unit in Scientology, the real VFP is  valuable  fine
people who produce valuable final products who then make up a valuable  fine
public. Every piece of work  and  duty  in  a  management  unit  or  an  org
contributes to that.

The standard of living of an executive, a  management  unit,  an  org  or  a
staff member is determined by that one  basic  economic  law:  The  personal
production  of  VFPs  for  the  group  and  one's  standard  of  living  are
intimately related.

L. RON HUBBARD

Founder

      for the

      BOARDS OF DIRECTORS

      of the

BDCS:LRH:ab.gal.gm     CHURCHES OF SCIENTOLOGY





*[Note: BPL 19 Mar 1971 mentioned under "References" on page  449  has  been
revised and reissued as HCO PL 19 Mar 1971R, same title.)

451



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 3 SEPTEMBER 1980

                                   Issue I

Remimeo

      (The contents of this policy have been taken from an LRH

      OODs item of 15 May 71 and are now being issued in policy

      form to bring forth the wealth of data formerly issued in the

      Flag "Orders of the Day.")

Admin Know-How Series 38

Data Series 50

Esto Series 42

Org Series 42

OUT OF SEQUENCE

Out of sequence is the  most  common  outpoint  according  to  a  survey  of
despatches and projects a couple months ago.

The thing which gets most commonly out of sequence is  the  pattern  of  the
Key Ingredients as covered in HCO PL 14 Sept 69.

The correct  sequence  for  a  piece  of  work  would  be  to  plan,  obtain
materials, and then work.

If this is  made  into  work-plan-materials,  everyone  works  hard  but  no
product will result.

As production is what morale depends upon. a smash of morale would occur  if
the Key Ingredients were thrown out of sequence.

Omitted data runs a close second to out  of  sequence  as  the  most  common
outpoint.

When the sequence of a work  project  is  thrown  out  and  then  data  like
technology of how to do it is omitted, a group could  work  itself  half  to
death and have down morale as well from no product.

The right way to go about it is to have the tech of a job, plan it, get  the
materials, and then do it. This we call organizing.

When this sequence is not followed, we have what  we  call  cope.  Too  much
cope will eventually break morale. One  copes  while  he  organizes.  If  he
copes too long without organizing he will get a dwindling or no product.  If
he organizes only he will get no product.

Coping while organizing will bit by bit get the line and  action  straighter
and straighter and with less work you get more product.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY BDCS:LRH:SA:bk.nf , 1980


[Note: The original mirneo copies of this policy letter incorrectly  labeled
it as "Admin Know-How 36" which has been corrected above.]

452



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                              of 8 March 1971)

Org Series 43

Esto Series 44

ORG OFFICER

Org Officers think they approach HASes to organize. They don't.

HCO has not formed because Org Officers keep making demands  on  it  instead
of doing their job. The organization it takes to get out a specific  product
is instant stuff. HCO is a long-term build of  the  establishment.  Entering
instant organization into HCO of course defeats its  purposes  and  prevents
it from the long-haul actions necessary to form a whole org.

If an Org Officer considered himself  the  Product  Officer's  expeditor  he
would begin to get the idea.

We have a Product Officer/Org Officer mission going in  to  expedite  FEBCs.
The Product Officer will get the product-a competent graduated  FEBC  on  an
airplane going home-being made and fired. The  Org  Officer  will  push  the
materiel and lines into shape to back up the Product  Officer.  Now.  what's
that have to do with HCO? Nothing.

The Org Officer makes sure there is a pack or tape or recorder or gets  them
(not by despatch) and the Product  Officer  checks  out,  verifies,  grooms,
solves FEBC problems, pushes cases.

The Course Super goes on supervising, Course Admin goes  on  admining.  What
they're doing right with the student gets pushed and done more of. And  what
organization there is gets more of from the Org Officer.

For instance,

SITUATION: Course numbers building up. You see this in orgs.

HANDLING: Put on a Prod-Org mission to get numbers completed and fired.

The Prod-Org team finds 3 who could be made ready to fire  at  first  glance
and gives the order GO-GO-GO, to Action.

The personal cope was fire three NOW. The medium-range was get a mission  on
it.

That is uptight production.

A Prod-Org team works in hours and days. Save an hour, save a day. Do it  in
hours, do it in days.

By doing it they learn line and materiel outnesses and their reform CSWs  of
lines and actions are written up when they're  completed  and  that's  their
first contact with the HAS and HCO.

453



Now with these reforms the general org action will be easier and faster and
a product backlog peak won't occur so fast again.

A Prod-Org team that writes despatches and harasses HCO just doesn't know
THAT THE PROD-ORG SYSTEM IS TO HANDLE BACKLOGS AND OMISSIONS IN PRODUCTS.
Having handled they can advise or order or get approval for line changes
and new recruitment, etc. These, the HAS can get in for the long haul.

Prod-Orgs WORK, they don't just order.

L. RON HUBBARD

Founder

Compiled and edited for issue by Sherry Anderson Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

454



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 21 SEPTEMBER 1980

                                  Issue 11

Remimeo

                          (Originally LRH OODs item

                               of 29 Oct 1970)

                             Personnel Series 31

                                Org Series 44

AN ORG BOARD

REF: HCO PL 28 Oct 70 ORGANIZING AND HATS

An org board is a list of hats with seniorities. The hats are in flow
sequence.

A hat is  a  duty.  It  outlines  the  actions  necessary  to  accomplish  a
production and receive what's needed, change and route it.

In theory the I/C holds all functions. When he doesn't  fully  outline  them
they can't be hatted. If they're not hatted he  wears  them  as  an  unknown
fog. Simple as that.

What defines a hat is a product.

If you count up the expected products you get the minimum  number  of  hats.
The steps to get the product is the  hat.  Products  are  also  composed  of
lesser products, so hats can be enlarged.  It's  what  you  designate  as  a
product that makes a hat. It's the importance of that product to  others  on
the line that makes the hat's importance.

The completeness and size of the product make the seniority of the hat.

The overall product of a division  determines  the  hat  of  the  divisional
officer. The lesser products that when combined  make  the  overall  product
determine the rest of the division hats.

Until you can define in one go the overall product of a division you  aren't
likely to be able to post any real part of its org board.  For  the  product
of hats of that div add up to the div product.

When you see an unposted or unreal org board, the head of  the  div  is  not
producing a product with that div, no matter how busy it all  looks  or  how
exhausting.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

455



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 17 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                             of I I March 197 1)

Org Series 45

ORG BOARD AND PRODUCTION

HCO PL 9 March 197 1, Issue 11, POSTING AN ORG BOARD, will solve a lot of
confusion about org boards,

Read it and then look at what you may currently have and lights may blink
like a pinball machine.

An org board does have something to do with getting the work done.

Quality as well as volume depend upon workable organization.

The opposite ends of the action are organization at one end and production
at the other.

Things get easier and better all around.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm , 1980

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Org Series 63.1

456



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 11 SEPTEMBER 1980

Remimeo     Issue 11

                          (Originally LRH OODs item

                               of 10 Nov 1971)

Org Series 46

Exec Series 23

ORGANIZATION AND SURVIVAL

Well organized activities survive. The  survival  of  individuals  in  those
organizations depends on the highly organized condition of the activity.

A small group, extremely well organized, has excellent chances of survival.

Even a large group, badly organized, hasn't a prayer.

The essence of organization is org boarding, posting with  reality  and,  in
keeping with the duties being performed, training and hatting.

To this has to be added the actual performance of the  duties  so  that  the
activity is productive.

The outward signs of a badly organized group are slovenliness and fumbles.

Another ingredient that goes hand in hand with organization and survival  is
toughness. The ability to stand up  to  and  confront  and  handle  whatever
comes the way of the organization depends utterly  on  the  ability  of  the
individuals of the organization to stand up to,  confront  and  handle  what
comes the individual's way. The composite whole  of  this  ability  makes  a
tough organization.

An individual who is not properly posted, isn't  performing  the  duties  of
the post, is not trained or hatted, is soft. He has  no  position  to  hold,
therefore he goes down at the first fan of a feather.

Confidence in one's teammates is another factor  in  organization  survival.
Confidence in one's self is something that has to be earned. It is  respect.
This is a compound of demonstrated  competence,  being  on  post  and  being
dependable.

After an individual has failed,  confidence  in  him  on  the  part  of  his
teammates sinks. He has lost face and is not respected.  This,  then,  shows
itself up in numerous ways. It  is  up  to  that  individual  to  earn  back
confidence so that his teammates will again trust him. The way  to  do  this
is to get properly org boarded, trained, hatted and to confront and  handle,
with competence, whatever that post is supposed to control.

The ultimate in no confidence by a group in a team  member  is  no  post  at
all, Reports from those who have no post  or  from  those  who  are  between
posts stress the horrors of having no post.

Our survival depends fully on becoming entirely  and  completely  organized.
This will happen to the degree that  every  separate  unit,  department  and
division in an org is properly org boarded, properly performing  the  duties
of the post, is trained and fully hatted.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

      for the

      BOARDS OF DIRECTORS

      of the

BDCS:LRH:SA:d~.grn     CHURCHES OF SCIENTOLOGY

, 1980



457



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 12 SEPTEMBER 1980

                                   Issue I

Remirneo

                       (Originally LRH Flag Ship OODs

                           item of 7 March 1971.)

                                Org Series 47

                             Executive Series 24

                          Admin Know-How Series 39

HANDLING OVERLOADED POSTS

Reference:

HCO PL 28 Jul 71       ADMIN KNOW-HOW 26

Product and Org Officers can take over a grossly  overloaded  key  post  and
(a) increase its production and (b) reduce the work hours. They should  take
over posts for 48 hours and give the incumbent a rest and see what gives.

The rules that seem to apply are

a.    It is a key post of the area in question and

b.    It is the most overloaded and/or most nonproductive post in that
area.

It's one thing to issue orders. It's another to do work.

One doesn't stand behind the guy. One takes him off the  post  and  actually
does the work of the post.

While doing it one will see why it can't be done or  isn't  being  done  and
one can then get a good bright idea of how it can be done and get it in  and
write it up.

One often finds he has to ask "What hat am I wearing?" when one finds he  is
on overload.

Well, one solution is to just go over and really wear that hat and  see  why
it can't be worn, get an idea of how it can be worn, do the  action  to  see
if it's right, write it up for issue and put the person back on it.

A junior often can't mesh up the lines so they work because  he  hasn't  the
know-how and hasn't the authority. His proper action would be to figure  his
post out and write it up for issue and get it in his hat.  When  he  doesn't
do this it jams or overloads his own and other lines.

Where this situation exists and  isn't  changing,  a  Product  Officer,  Org
Officer or HAS or the divisional Product or Org Officers have an  out.  They
can take over such a post, do all its work for 48 hours with  no  help  from
the incumbent, get an idea of how to debug it, see if that works,  write  it
up and turn the post back over.

L. RON HUBBARD Founder Compiled and issued by Sherry Anderson Compilations
Missionaire for the BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm Copyright* 1971, 1980

458



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 22 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                             of 23 August 1972)

Esto Series 43

Org Series 48

ACTIVITY

We are in the midst of a great deal of activity.

This means a certain amount of disestablishment occurs.

Such times are the times when Dept I has to go FLAT-OUT.

It has to actually produce.

It has to get new people in, org boards revised, hats collected, people on
new posts HATTED!

It has to somehow hold the form of the org and keep it producing.

This is no time for Dept I people to sit at a desk doing their in-baskets
all day or studying.

This is the time when the org form situation is continually reviewed and
beefed up and hatted.

A hat is NOT an explanation. It is a checksheet and pack and it gets DONE
right now.

This is the time when you make up for fewer numbers with better
utilization. And you make up for increased traffic with greater efficiency
on each individual post.

Esto trainees who don't know or can't do these things won't be worth
anything in their own orgs.

The question is, can they do it or can't they9

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

459



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 24 SEPTEMBER 1980

                                   Issue I

Remimeo

Hat Officei

                          (Originally LRH OODs item

                             of I I August 1972)

Org Series 49

HAT OFFICER

When a Hat Officer has somebody to hat, he hats that person fully. It may
take days. You don't keep changing Hat Officers on the same person day
after day.

Hat Officers, like auditors have th& pcs, should have a list of clients
they are hatting.

It isn't getting points that count. It's getting a fully hatted person.

A frequent change of Hat Officers, like a frequent change of auditors,
winds up with no completions.

Every Hat Officer post should have its list of clients. The Hat Officer
changes only when transferred. The post keeps the same clients.

It takes a firmly hatted staff to handle the scene we've got on the planet
today.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

460



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 6 OCTOBER 1980

                                   Issue I

Remimeo

                          (Originally LRH OODs item

                              of 13 July 1971)

Org Series 50

THE USUAL

When in doubt do the usual, the routine, the standard.

If your hat says recruit, recruit. Don't do tool purchasing.

WHEN A POST DOES NOT DO ITS  USUAL  ACTIONS  THESE  BACKLOG  AND  APPEAR  AS
TRAFFIC AND DEMANDS.

The post goes into desperation and tries to cope and, failing to do what  it
was supposed to do in the first place, just goes more desperate.

A post will run wrong so long as it does not do the usual. And  it  will  go
wronger and wronger.

Like auditing a pc. Every shortcut, every unusual solution, just  makes  the
pc worse. You can't go on  with  unusual  solutions  forever.  The  pc  will
collapse.

So it is with a post.

Do what the post is supposed to do in the first  place.  Cope  part  of  the
time, yes. But somehow get in the usual action.

If you don't you will feel desperate, 9,000 feet up and in a hurricane.

EVERY personnel line has gotten in this state.

Failing to recruit and do the usual has backlogged HASes over the  world  to
a point of total desperation. Yet I see no  Personnel  Procurement  Officers
single-hatted on post in orgs. I see no new campaign for recruits. I see  no
hammer to get standard forms signed.

Thus by not doing the basic usual actions, each HAS is going mad  trying  to
answer people who are demanding personnel. Then the HAS musical  chairs  the
place, destroys the org form.

WHY? Because the usual action of PPOs on post  and  records  and  lines  and
personnel promo were not done.

Not doing the usual resulted in desperate solutions.

This is the way any post goes when it backlogs. It backlogs for lack of  the
usual. Then it goes into total desperation.

The way to get out of the mess is each day do a couple hours  of  the  usual
regardless of traffic and demands.

461



And surprise! One will dig out of it and get on top of it.

One has to know three facts.

1.    The usual solution already exists. One has to find out or work out
what it is.

2.    Unusual actions will backlog one and if continued will drown one.

3.    One can dig himself out if he spends some time each day getting the
usual lined up and in.

One's full hat usually contains the usual. A starter is to get the full hat
and know it.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm , 1980

462



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 6 OCTOBER 1980

Remimeo     Issue 11

Hats Officer

HAS   (Originally LRH OODs item

      of 6 June 1971)

Org Series 51

Personnel Series 34

A MAJOR DUTY OF THE HATS OFFICER

REF: HCO PL 7 JANUARY 1966 LEAVING POST

If you leave a post without turning over  your  hat  and  grooving  in  your
relief, you are at risk. You can be called back for the next  two  years  if
that post goes wrong.

You must HAVE a hat in a folder and its write-ups  (all  of  them)  and  you
must turn it over.

The Hats Officer is supposed to see this is done. It  is  really  his  major
duty. He must see that it is done and he must be able  to  attest  that  the
relief on the post HAS and CAN DO and IS DOING the hat.

Hats, checksheets and packs are also furnished by the Hatting Section  under
Hats Compilations. These are issued as prepared. However there is  ALWAYS  a
hat.

Anyone on post without a hat cannot be expected to be paid.

If a Hats Officer only compiles hats he unmocks the org.

The Hats Officer must be there in a flash at every post change and see  that
the hat, and duties of the post are turned over and the relief  grooved  in.
Records, Assets and Materiel Dept 9 sees that the materials are turned  over
and are correctly inventoried or the Dir of RAM or the Treas Sec can be  hit
for any lost items,

This is an old, old drill.

There are standard ways to do things.

Any post not so turned over MUST be turneci  over  correctly  with  hat  and
materiel or the org will shatter.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:ns.gm , 1980

463



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 9 OCTOBER 1980

                                  Issue II

Remimeo

                          (Originally LRH OODs item

                              of 25 April 1970)

Org Series 52

MORE ON LINES AND HATS

REF: HCO PL 16 Mar 71 LINES AND HATS

The soggy feeling one gets from lines  sometimes  comes  directly  from  the
line passing through a point which isn't wearing its hat.

      Hats can be not worn through ignorance or through neglect. Many times
hats are

accepted not to help a group but "to have an opportunity to  ." Like an

MD who studies medicine to "make money" or "to obtain better opportunities
with

women." So one has two reasons to wear a hat-(a) to do a job, (b) to have
an

opportunity to do something else.

When a hat is not worn for any reason at all, one gets a breakdown  at  that
point. We call this a "camouflaged hole." Somebody has a title  but  doesn't
do the duties or actions that go with it.

That is the soggy feeling's cause, the unworn hat. A group  that  cannot  or
does not snap and pop and get on top of  it  has  some  members  in  it  who
aren't wearing their hats.

The most common reason why hats aren't worn is because they are not known.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

464



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 8 OCTOBER 1980

                                  Issue 11

Remimeo

                          (Originally LRH OODs item

                              of 6 April 197 1)

Org Series 53

ORG BOARD KNOWLEDGE

It is very funny to see what a green crew member does with an org bd.

He eventually gets to know one terminal, the Captain. Anything that he
wants he asks the Captain.

However, it can be worse than this. An org crew sometimes doesn't even know
the Captain! They are a sort of drifting mob.

Knowledge of the org board permits a crew to push in the lines.

Whether the lines and terminals are in or not depends upon the crew or
staff, not on one senior.

If the whole crew uses Knowledge Reports, sees the right terminals and
knows enough about lines and hats to force performance of duty and service,
then the org will form and smooth out and prosper.

A Knowledge Report to the MAA or E/O when someone has refused to do his
hat, senior or junior, will accumulate enough data to permit the reposting
of areas so they work.

In the final analysis service quality, cleanliness, production and
prosperity depends upon a staff or crew.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

465



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 8 OCTOBER 1980

                                  Issue III

Remimeo

                          (Originally LRH OODs item

                            of 17 September 1970)

Org Series 54

HATS

We're right at the beginning of handling the real WHYs  in  departures  from
the ideal scenes.

We are establishing recruitment and we are beginning real hats that  include
checksheets and packs.

Real hats made up of a factual checksheet  and  pack  of  FOs,  PLs,  HCOBs,
manuals and books and required to be trained on are  THE  missing  items  in
orgs over the world.

Ethics was designed to keep in tech and policy. We expand it to keep policy
in use.

As it has been used it was a personal target action not a tool to spot  out-
tech and out-policy.

So ethics is going to have to shift target from the individual to  the  drop
out of know-how.

When you see how far out things are on this point of view over the world  in
orgs it takes a bit of confronting.

Both auditing tech and all our admin policy has been very  nearly  lost  for
three years!!!

Pretty awful.

But the plus side is look how we'll soar when we get it in!

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm Copyright c, 1970, 1980

466



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 OCTOBER 1980

Remimeo

                        (Originally an LRH OODs item

                            of 21 September 1970)

Org Series 55

COPE

I've had an insight into what  "cope"  really  is.  It  is  the  process  of
finding and correcting outpoints without ever discovering a WHY and  without
organizing any return to the ideal scene.

A  coper  goes  "outpoint  found-correct  it;  outpoint  found-correct   it;
outpoint found-correct it." This perpetual cycle  never  finds  or  corrects
WHY these outpoints. So it just gets worse and worse and worse.

If you start spotting outpoints and correcting  them  you  are  not  dealing
with the Why but with the symptoms only. So an executive gets on a cycle  of
outpoint spotted, corrected, spotted, corrected,  spotted,  corrected.  With
no WHY located it will just wind up in a collapsed mess of cope.

If all one ever did was handle  despatches  one  would  really  get  into  a
mountain of overwork while stats stayed down,

The WHY we face now is  absence  of  recruiting,  lack  of  full  hats  with
checksheets and packs.

The Why of that was failure to  make  the  materials  riled  accessibly  and
collatable. So it's a snake eats its tail. No hats then brought a  condition
of no data available in files. A true dwindling spiral.

And no hats traces to the introduction of ethics into HCOs and  that  it  is
easier to assign a condition than to compile or check out a hat.  Hats  went
out when ethics came strongly in. Without ethics in HCO, HCO can  only  make
stats recover by org form and hats.

Ethics has a role-after all else fails.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:ns.gm , 1980

467



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 OCTOBER 1980

Remirneo    Issue III

                          (Originally LRH OODs item

                               of 7 Nov 1970)

Org Series 56

"NOISE" AND ORGANIZATION

REF:  HCO PL 14 Dec 70 GROUP SANITY

      HCO PL 8 May 70 DISTRACTION AND NOISE

Each division is to have a completed org board.

In order to do this well it is best to study the Org Series.

"Noise" is the amount of disturbance and off-line actions  and  chatter  and
general dev-t in an area.

In some divisional areas "noise" by far exceeds actual traffic.

An org board amongst other things reduces "noise" when it is well  done  and
known.

Improvement of production occurs when there is a  good  org  board  that  is
also well known.

When you assess the effort expended on a post against the actual  production
of a post you get an idea of the amount  of  "noise"  present.  One  can  be
expending lots of time and effort  and  yet  attain  no  production.  Proper
organization  increases  production  and  reduces  effort   by   eliminating
"noise."

My insistence on getting org boards done, in and known  comes  from  my  own
post observation. For some time I have been seeing lots of "noise" and  very
low production.

When this visibly began to eat into my own production (about  April  '70)  1
began to push in organizational steps. I restudied the subject (as  you  see
in the PLs of  the  Data  Series,  Personnel  Series  and  Org  Series)  and
consulted existing realities. I was amazed to  find  how  little  technology
Man actually had on the subject and how wide a gap there was between  theory
and reality.

Studying orgs themselves, including the ship, Flag Org, bureaux and orgs  as
per LRH ED 123 INT (the ten social aberrations, later issued as  HCO  PL  14
Dec  70,  GROUP  SANITY)   the   worst   items   were   "hiring,   training,
apprenticeship and utilization" including production.

The first four would of course account for (if out) lack of production.

So far as an org is concerned, these are the functions of HCO.

Once these points are in you will see things begin  to  move  better,  noise
drop out and production increase while effort reduces.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BDCS:LRH:SA:dr.gm      BOARDS OF DIRECTORS

, 1980

      of the

      CHURCHES OF SCIENTOLOGY

468



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 30 OCTOBER 1980

                                   Issue I

Remimeo

                          (Originally LRH OODs item

                              of 10 March 1971)

Org Series 57

ESTABLISHMENT AND THE HAS

REF: HCO PL 21 July 71 1 HAS STANDARD ACTIONS

The terminal  for  staff  members  and  execs  to  contact  when  they  want
personnel is the HCO Area Sec (HAS).

They do NOT route this through or to the Org Officer.

The HAS should work to put an establishment there.

The Org Officer helps the Product Officer to get products by organizing  the
immediate area being concentrated on so it is smoothly producing.

You don't write Personnel to get personnel. You write the HAS.

The HAS channels to HCO on such matters.

When the concept of what is an establishment is grasped, all else is easy.

Space, materiel, machines, personnel, hats, lines, control of the org  form,
are all establishment. (Org Series 10, Product 1.)

The HAS uses Inspection and Reports (Dept 3  HCO)  (stats)  to  measure  the
volume, quality and viability of the establishment so more or  less  can  be
put there. The  HAS  corrects  the  establishment  using  her  other  depts-
Personnel, org bd, comm lines and lines and Ethics.

Until everyone knows what is an HAS and what is an Org  Officer  they  won't
be able to direct requests or comms and the system will jam up.

The HAS establishes, forms, puts there, corrects, posts, hats,  org  boards,
stats, corrects the org. All on a long-term basis.

The Org Offlicer organizes production areas for the Product Officer so  they
produce.

The Product Officer gets the  products  of  the  establishment  produced  or
corrects the products.

Org Series No. 10 gives you the four types of products-1, 3, 2,  4.  One  is
the establishment itself. Three is  correcting  the  establishment.  Two  is
what the establishment produces. Four is correcting the  faulty  product  of
the establishment.

You can organize forever and get no production of valuable final products.

You can produce valuable final products with  no  organization  on  a  total
cope. But volume, quality and viability will be awful and the overload  will
soon overwhelm.

469



So there are two sides to the coin-organize, produce.

There is long-term, steady, stable, expanding organizing. That's the HAS.

There is instant, immediate, right-now organizing. That's  the  Org  Officer
working with the Product Officer.

There is hammer-pound, right-now production of products. That's the  Product
Officer backed up by the Org Officer close to hand and a bit out in front.

There are also "Consumption" Officers who get the  products  wanted  outside
and consumed. These are the Dissemination Secretary (Div  11)  (old  public)
and the Distribution Secretary (Div VI) (new public).

So you have a line-up: Organize an establishment,  organize  the  production
area, produce, get the product wanted and consumed.

It's all that simple.

On this depends the  uniforms,  the  pay,  the  facilities,  the  food,  the
transport,  personal  success,  expansion,  general  success  and   eventual
accomplishment of large targets.

When these points aren't understood, then all the shortages and  upsets  and
confusions you object to occur.

Wherever morale is low, somebody around that point doesn't  understand  this
or agree with prosperity.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted by the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:SA:bk.gm , 1980

470



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 2 NOVEMBER 1980

Remimeo

                          (Originally LRH OODs item

                              of 25 July 1971)

Org Series 58

HATTING THE RIGHT WAY

The sequence is instant hat, mini hat, fully hat.

Staff Status 0, Staff Status I  and  Staff  Status  11  are  minimum  for  a
recruit. (For the Sea Org it is Products 0, 1 and 2.)

As the recruit line works in, all these must be done while the person is  in
the expeditor pool of his org. (Product 0 for Sea Org is the exception.)

Then expeditors are instant hatted  for  short  jobs  and  mini  hatted  for
longer temporary jobs.

When posted, or apprenticed and posted, they are then fully hatted on  lower
posts and apprenticed and fully hatted for more senior posts.

This should get programmed out for each staff member.

It takes a while to hat anyone fully. But it just has to  be  worked  at.  A
couple hours a day eventually arrives.

The reason most people who don't study regularly  aren't  studying  is  that
they have 3 or 8 or a dozen incomplete courses behind them.  They  begin  to
define a course as "something you don't complete!"

This can get in the road of courses very badly.

The right way out is complete each pgm left incomplete or at least  run  out
the bypassed charge of past incompletes.

Word Clearing is the real big boost. Somebody  the  other  day  didn't  know
what TR (for Training Drill) meant in an HCOB and the whole thing was  blank
until he spotted it!

Clearing the purpose of a post is essential to hatting.

Well anyway, grab the slogan

TO BE HAPPY GET HATTED AND PRODUCE THE ACTIONS OF YOUR POST.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARD OF DIRECTORS

of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:SA:dr.gm , 1980

471



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead. Sussex

                   HCO POLICY LETTER OF 18 SEPTEMBER 1980

                                  Issue II

Remimeo

                          (Originally LRH OODs item

                              of 28 March 1971)

Org Series 59

STATE OF ORGS

There are innumerable little out-org situations that need remedying. They
make life rough, consume time and edge up tempers.

By standing for about 45 minutes in one place observing I found five bits
that in themselves would each add up to a time-consuming confusion.

No transport unit, no purchasing unit, no line patrol or refinement were
visible.

This makes people seem to work very hard but results in no production.

Therefore it takes HAS officer-type observation as the org's lines are out.

To adjust a line one (a) sorts out the particle types, (b) sorts out the
change points, (c) puts the correctly hatted terminals on it, (d) removes
needless terminals, (e) reduces the number of times something is handled,
(f) shortens the distance, and (g) increases the speed of flow.

If you do any one of these the line will get better. If you do them all the
speed is fantastic and the load lightens all around and products occur.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm , 1980

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Org Series 41.]

472



L

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 3 NOVEMBER 1980

                                  Issue III

Remimeo

                          (Originally LRH OODs item

                                of 31 Oct 71)

Org Series 60

Personnel Series 39

FULL HATTING

A person is responsible for his own hatting. Dept I is also responsible.

As lack of full hatting is the WHY of declining organization it is very
important that persons be fully hatted.

The gradient is instant hatting, mini hatting and full hatting.

A person found on a post who is not fully hatted is liable to ethics
action.

Awareness of the scene does not seem to exist in the absence of hatting.
Thus unhatted persons look sort of blind.

For instance, an unhatted Dissem Div is completely unaware of no money, no
students, no pcs.

It's sort of strange. Mystery about the post seems to result in no
perception of its environment. Mystery on post equals mystery of
environment. You see this as a sort of frightened no confidence.

I think hatting even changes eyesight. We ought to test it out.

We already know that unhatted people get hurt more than hatted people. We
know overts stem from misunderstoods. And we know running overts changes
eyesight.

It then probably follows that unhatted people couldn't see a tiger if it
was biting them!

So, how to be mystified by it all and afraid-remain unhatted.

Get hatted and see.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:SA:dr.gm , 1980

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Personnel Series 38.1

473



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 3 NOVEMBER 1980

                                  Issue IV

Remimeo

                        (Originally LRH OODs items of

                    26 February 1971 and 24 August 1970.)

Org Series 61

Esto Series 51

DRILLS

Drills have several purposes. To groove in a team action is a principal
one. To test a system fully. To groove in lines.

Whenever postings are changed, the new post holders have to be grooved in
on their posts (hatted and on-post trained) and then the team itself must
be drilled.

The two steps are always needed.

There's a maxim about all training that applies. It is this: TRAINING MUST
INCLUDE ALL THE ACTIONS AND APPROXIMATIONS OF THE ACTUAL.

This includes of course the whole cycle of an actual sequence of actions.
It's the sequence that counts.

The drilling of sequences of actions is a stable series of data that
prevents chaos from overwhelming one.

This applies to org lines as well. Dummy runs and dummy bullbait runs serve
as the drill.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARD OF DIRECTORS

of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:SA:dr.gm , 1971, 1980

474



            HUBBARD COMMUNICATI

            Saint Hill Manor, East Grinst

            HCO POLICY LETTER OF 14 J

      Remimeo

      Starrate on

      all Execs  Target Series I

OT ORGS

What it takes to make an org go right is the intelligent assessment of what
really needs to be done, setting these as targets and then getting them
actually fully DONE.

We have all the data necessary to make orgs boom.

Therefore we find that when they don't, these faults must be present:

I .   Completely unreal analysis of what needs to be done to make things
really go.

2.    Cross orders-juniors setting other targets a-cross vital targets.

3.    Noncompliance with vital target accomplishment.

4.    False reports on actions or false data concerning targets.

5.    Failure to doggedly follow through on one action and get it done
fully and completely.

6.    Distractions leading to any of the above.

MAJOR TARGET

The desirable overall purpose being undertaken. This is highly generalized,
such as "to become an auditor."

VITAL TARGET

By definition a VITAL target is something that must be done to operate at
all.

Man's worst difficulty is his inability to tell the important from the
unimportant. "Every target is the same as every other target" is part of A
=A =A.

It takes good sense to be able to survey an area and find out

1.    What MUST be done.

2.    What SHOULDN'T be done.

3.    What is only desirable to be done.

4.    What is trivial.

As Man all too easily specializes in stops he tends to stress what
SHOULDN'T be done. While this enters into it, remember that it's a STOP.

STOPS ALL OCCUR BECAUSE OF FAILED PURPOSES.

BEHIND EVERY STOP THERE IS A FAILED PURPOSE.

A stuck picture or a motionless org are similar. Each has behind it a
failed purpose.

475



THERE IS A LAW ABOUT THIS-ALL YOU HAVE TO DO TO RESTORE LIFE AND  ACTION  IS
TO REKINDLE THE FAILED PURPOSE. THE STOPS WILL AT ONCE BLOW.

That law (it comes out of  OT  VIII  materials)  is  so  powerful  it  would
practically revive the dead!

It applies to orgs.

It applies to cities or nations.

When you diverge from a constructive purpose to "stop attacks," the  purpose
has been abandoned. You get a stop. The real  way  to  stop  attacks  is  to
widen one's zone of responsibility. And pour the coal on the  purpose.  Thus
all attacks one makes should be in THE DIRECTION OF  ENLARGING  ONE'S  SCOPE
AND AUGMENTING BASIC PURPOSE.

Thus, in the case of Scientology orgs one should  attack  with  the  end  in
view of taking over the whole field of mental healing. If  our  purpose  was
this then it had to be this on all dynamics. We only  got  into  trouble  by
failing to take responsibility for the whole field!

We'll win back by reasserting that responsibility and making it good.

Targets, to that degree, are purposes.

Purposes must be executed. They are something to DO.

OT

Let us look at the definition of OT-cause over thought, life, form,  matter,
energy, space and time.

As one falls away from that one becomes a SPECTATOR,  then  one  becomes  an
effect. Then one is gone

One causes things by action. Not by thinking dim thoughts.

One can be doing an IN-basket as simply a spectator.

In  the  society  today  spectatorism  is  very  common.  Magazine  writers,
reporters, write weird pieces that look at how odd things  are.  The  writer
doesn't understand them at all. He just watches them.

Spectatorism is not so low as total effect.

The total effect-no cause-person has mainly a case. He doesn't even look.

Thus there is a gradient scale of OT. It's not an absolute. One is as OT  as
he can CAUSE things.

One of the things to cause is target  attainment.  When  somebody  can  push
through a target to completion he's to that degree OT.

People who don't push targets are either just spectators or they are total
effect.

ORG STATE

An org is somewhere on the OT Scale. Any org is. Of any kind.

An org can figure out the vital targets and push them through to  completion
or it can't.

It's a gradient scale.

An org succeeds or fails to the degree its individual executives  and  staff
members can measure up to the OT formula: Cause.

476



Scientology orgs must become cause over their environments.

They do this by each executive and each staff member accomplishing targets,
small and large.

Thus:

(a)   if the targets of what MUST be done to operate at all are set and

(b)   are carried out with no noncompliance and

(c)   if no false reports are entered into it,

Then

That org is way high on the OT Scale

AND IT WILL CONQUER ITS ENTIRE ENVIRONMENT COMPLETE.

That's really all there is to it.

One way to fail at it is do (a) with things that are so general that they
invite no doingness.

Some guys are so bad off they set targets like "move the mountain" and give
one and all a big failure. Since there's no way to do it and probably no
reason to either, that's an SP target. So what MUST be done means just
that. What is vital and necessary. Not what is simply a good idea.

Here's some MUST targets as examples:

A.    Get tech delivered 100% in the org itself.

B.    Get the public aware of its being delivered and wanting it.

C.    Get the admin machinery in to get the public in and out.

Or another series:

D.    GET 10,000 trained auditors into the org field.

E.    Get the public aware of the project and wanting training.

F.    Set up terrific 100% snap-pop courses to handle the flow.

Or another:

G.    Get a �100,000 reserve cushion.

H.    Get all accounts staff and executives checked out on finance policy.

1.    Shove the throttle down on promotion.

J.    Deliver fantastic service.

K.    Get enough tech people in training to handle the flows.

L.    Find bigger poshier quarters to handle the flow when it rises.

M.    Get all staff onto the OEC to diminish flow line flubs.

You get the idea.

An exec who is just a spectator to his in-basket flow is doing nothing but
cultivating dev-t.

You can assess the situation.

477



You can drive targets home to full completion.

Every executive and every staff member is somewhere on the OT Scale. And he
can rise higher just by setting up the targets and plowing them through to
done, done, done.

Yes, it requires ideas. But ideas come from interested looking and sizing
it all up before you set the target in the first place.

You can even raise an org by gradients so as not to overwhelm it. Set and
make small targets. Then bigger and bigger ones.

Well, you get the idea.

It's the ORG's road to OT.

L. RON HUBBARD Founder LRH:bw.ei.rd.gm

[Note: This policy letter has been corrected as per HCO P/L 23 January
1969, OT ORGS CORRECTION.]

[Note: The Target Series designations and numbers have been added to the
target policy letters by the editor.]

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 23 JANUARY 1969

Remimeo

Target Series 1-1

OT ORGS CORRECTION

(Correction to HCO Pol Ltr 14 Jan 69)

(The first paragraph below and the next heading "Vital Target" were left
out of issue.)

MAJOR TARGET

The desirable overall purpose being undertaken. This is highly generalized
such as "to become an auditor."

VITAL TARGET

By definition a VITAL target is something that must be done to operate at
all.

(The HCO Pol Ltr 14 Jan 69 continues).

L. RON HUBBARD

Founder

LRH:Idm.ei.gm

478



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 16 JANUARY 1969

Remimeo

                     (Reissued from Flag Order No. 1734,

                            same date and title)

Target Series 2

TARGETS, TYPES OF

There are several VALUES of targets. Not all targets are the same value or
importance.

There are, in any org, "understood" or continuing targets which came from
FOs or Pol Ltrs and Mission Orders.

PRIMARY TARGETS

There is a group of "understood" targets which, if overlooked. bring about
inaction.

The first of these is

SOMEBODY THERE Then

WORTHWHILE PURPOSE Then

SOMEBODY TAKING RESPONSIBILITY FOR THE AREA OR ACTION

Then

FORM OF ORGANIZATION PLANNED WELL Then

FORM OF ORGANIZATION HELD OR REESTABLISHED Then

ORGANIZATION OPERATING

If we have the above "understood" targets we can go on BUT IF THESE DROP
OUT OR ARE NOT SUBSTITUTED FOR then no matter what targets are set
thereafter they will go rickety or fail entirely.

In the above there may be a continual necessity to reassert one or more of
the "understood" targets WHILE trying to get further targets going.

VITAL TARGETS

Under this heading comes WHAT WE MUST DO TO OPERATE AT ALL.

This requires an inspection of both the area one is operating into and the
factors or materiel or organization with which we are operating.

One then finds those points (sometimes WHILE operating) which stop or
threaten future successes. And sets the overcoming of the vital ones as
targets.

479



CONDITIONAL TARGETS

It is interesting that one  can  go  into  an  art  type  "perfection"  with
targets and groom up primary targets  far  beyond  the  need  to  accomplish
purposes.

You've seen chaps work all their lives to "get rich" or some such  thing  in
order to "tour the world" and never make it. Some  other  fellow  sets  tour
the world and goes directly at it and does it. So there is a type of  target
known as a conditional target: If I could just . . . then we  could  .  .  .
and so accomplish. . . . This is all right of course until it gets unreal.

There is a whole class of conditional targets  that  have  no  IF  in  them.
These are legitimate targets. They have lots of WILL in them, "We will  .  .
. and then. . . ."

Sometimes sudden "breaks" show up and one must  quickly  take  advantage  of
them. This is only "good luck." One uses it  and  replans  quickly  when  it
happens. One is on shaky ground to count on "good luck" as a solution.

A valid conditional target would be

"We will go there and see if the area is useful."

All conditional targets are basically actions of gathering data first and
if it is okay, then go into action on a vital target and operating target
basis.

This could add up like this:

CT I - Survey Lower Slobovia to see if it would be a suitable place for an
org.

This survey done, if it is positive, one then goes into primary targets and
operating targets.

The primary targets would be

Lower Slobovia One: Appoint local Organization Officer here for Lower
Slobovia.

Lower Slobovia Two: Form up Lower Slobovian Org. (Personnel)

Lower Slobovia Three: Train up org. (Staff Training Officer)

Lower Slobovia Four: Translate texts. (Translation Section)

Lower Slobovia Five: Finance formation. (Finance Section)

Lower Slobovia Six:    Transport LS Org. (Transport Section)

Lower Slobovia Seven:  Prepare LS bldg in LS BEFORE ORG ARRIVES.

      (LS Org Officer)

Thus we would establish Lower Slobovia. AND IT WOULD ALL GO OFF WELL TO THE
DEGREE THE PRIMARY TARGETS WERE MADE, DONE, COMPLETED.

Primary targets setting on Lower Slobovia would fail if some primary target
were omitted in the first place (never set) or if the conditional target
findings on LS were a false report.

Thus we are very hot on "false report" and very hot on "noncompliance."

480



OPERATING TARGETS

An operating target would set the direction of advance and  qualify  it.  It
normally includes a scheduled TIME by which it has to be complete so  as  to
fit into other targets.

Sometimes the time is set as "BEFORE." And there may  be  no  time  for  the
event that it must be done "before." Thus it goes into a  rush  basis  "just
in case."

To get all the shoe salesmen in Boston enrolled on a PE Course would  be  an
operating target. This would then go into the framework of a primary  target
as to the remaining targets set.

Operating targets often look like "basic purpose." They can come  before  or
after primary targets. But  an  operating  target  has  its  own  series  of
primary targets. To enroll all  the  shoe  salesmen  you  need  somebody  in
charge of it, a PE Supervisor, literature, a handbook  for  salesmen,  etc.,
etc., which are all set as primary targets.

Sometimes an elaborate operating  and  primary  target  series  falls  apart
because there was no conditional target set, i.e. to find out if Boston  had
any salesmen and which types were responsive. You might find  the  operating
target had been set with no inspection.

So, again, we can move backward and find that an operating  target  needs  a
conditional target ahead of it-to wit, an inspection.

PRODUCTION TARGETS

Setting quotas, usually against time, are production targets.

These often fail because they are unreal or issued for  other  reasons  than
production (i.e. propaganda).

As statistics most easily reflect production, an org or activity can  be  so
PRODUCTION TARGET conscious that it fails to set conditional,  operating  or
primary targets. When this happens, then production is  liable  to  collapse
for lack of planning stated in other types of targets.

Production as the only target type can become so engulfing that  conditional
targets even when set are utterly  neglected.  Then  operating  and  primary
targets get very unreal and stats go DOWN.

YOU HAVE TO INSPECT AND  SURVEY  AND  GATHER  DATA  AND  SET  OPERATING  AND
PRIMARY TARGETS BEFORE YOU CAN SET PRODUCTION TARGETS.

A normal reason for down statistics  on  production  is  the  vanishment  of
primary  targets.  These  go  out  and  nobody  notices  that  this  affects
production badly. Production depends on other prior targets being kept in.

PROGRAMS

Programs are made up of all types of targets coordinated and executed. ON
TIME.

Programs extend in time and go overdue to the extent the various types of
targets are not set or not pushed home or drop out.

Programs fail only because the various types of targets are not executed or
are not kept in.

481



SUMMARY

You can get done almost anything you want to do  if  types  of  targets  are
understood, set with reality, held in or completed.

People whose own purposes have failed often cannot either  set  or  complete
targets. The remedy is to rehabilitate their own purposes which  then  blows
off the stops.

People who stop targets actively have failed so badly  that  they  can  only
think in terms of stops.

This whole subject of targets and purposes is probably a  large  one.  These
are just rough notes and the naming of the different types which  is  itself
a considerable advance.

It is of help in grasping what is going on and gets one somewhere.

L. RON HUBBARD

Founder

LRH:sdp.ei.rd.gm

482



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 18 JANUARY 1969

      Issue 11

Remimeo     (Reissued from Flag Order No. 1736,

      same date and title)

      Target Series 3

PLANNING AND TARGETS

(There are at this writing 3 HCO Pol Ltrs of near date on  this  subject  of
targets. The area has  never  before  been  examined  or  written  up  as  a
philosophic subject.)

Plans are NOT targets.

All manner of plans can be drawn and  can  be  okayed.  But  this  does  not
authorize their execution. They are just plans. When and how  they  will  be
done and by whom has not been established, scheduled or authorized.

This is why planning sometimes gets a bad name.

You could plan to make a million dollars but if when, how and who  were  not
set as targets of different types, it  just  wouldn't  happen.  A  brilliant
plan is drawn as to how to convert Boston Harbor into a  fuel  tanker  area.
It could be on drawings with everything perfectly  placed.  One  could  even
have models of it. Ten years go by and it has not  been  started  much  less
completed. You have seen such plans. World's fairs are full of them.

One could also have a plan which was  targeted-who,  when,  how-and  if  the
targets were poor or unreal, it would never be completed.

One can also have a plan which had no CONDITIONAL TARGET ahead of it and  so
no one really wanted it and it served no purpose really. It is  unlikely  it
would ever be finished. Such a thing  existed  in  Corfu.  It  was  a  half-
completed Greek theater which had just been left that way. No one had  asked
the inhabitants if they wanted it or if it was needed. So even  though  very
well planned and even partially targeted and half-completed,  there  it  is-
half-finished. And has remained that way.

A plan, by which is meant the  drawing  or  scale  modeling  of  some  area,
project or thing, is of course a vital necessity  in  any  construction  and
construction fails without it. It can even be okayed as a plan.

But if it was not the result of findings of a conditional target  (a  survey
of what's needed or feasible) it will be useless or won't fit in. And if  no
funds are allocated to it and  no  one  is  ordered  to  do  it  and  if  no
scheduling of doing it exists, then, on each separate count  it  won't  ever
be done.

One can define planning as the overall target system wherein all targets  of
all types are set. That would be complete planning.

COMPLETE PLANNING

To get a complete plan okayed one would have to show it as:

(a)   A result of a conditional target (survey of what's wanted and
needed).

(b)   The details of the thing itself, meaning a picture of it or its scope
plus the ease or difficulty in doing it and with what persons or materials.

483



(c)   Classification of it as vital or simply useful.

(d)   The primary targets of it showing the organization needed to do it.

(e)   The operating targets showing its scheduling (even if scheduled not
with dates but days or weeks) and dove-tailing with other actions.

(f)   Its cost and whether or not it will pay for itself or can be afforded
or how much money it will make.

Complete planning would have to include the targets and the plan of the
thing.

Thus, by redefining words and assigning labels to target types we can get  a
better grip on this.

A plan would be the design of the thing itself.

Complete planning would be all the targets plus the design.

Thus we see why some things don't come off at all and why they  often  don't
get completed even when planned. The plan is not put forward in  its  target
framework and so is unreal or doesn't get done.

Also it's a great way to lose or waste money.

Sometimes a conditional target fails to ask  what  obstacles  or  opposition
would be encountered or what skills are available and  so  can  go  off  the
rails in that fashion.

The whole subject of plans, targets and target types is new in the realm  of
analyzed thought.

It is a subject to "get the feel of" and "learn to think concerning"  rather
than a fully "canned" subject.

But if these points are grasped, then one sees the scope of the subject  and
can become quite brilliant and achieve  things  hitherto  out  of  reach  or
never thought of before.

L. RON HUBBARD

Founder

LRH:Idm.ei.rd.gm

484



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 24 JANUARY 1969

Remimeo

Target Series 4

TARGET TYPES

    (Note: This is a developing subject, new in philosophy. It is part of

                        the philosophy Scientology.)

You should  learn  the  names  and  types  of  targets  for  quick  use  and
classification of what you are trying to do.

MAJOR TARGET - The broad general ambition, possibly  covering  a  long  only
approximated period of time. Such as "to attain  greater  security"  or  "to
get the org up to 50 staff members."

PRIMARY TARGET - The organizational, personnel, communication type targets.

These have to be kept in. These are the terminals and route  and  havingness
and  org  board  type  targets.  Example:  "To  put  someone  in  charge  of
organizing  it  and  have  him  set  remaining  primary  targets."  Or   "To
reestablish the original comm system which has dropped out."

CONDITIONAL TARGETS - Those which set up EITHER/OR to find out data or if  a
project can be done or where or to whom.

OPERATING TARGETS -  Those  which  lay  out  directions  and  actions  or  a
schedule of events or timetable.

PRODUCTION TARGETS - Those which set quantities like statistics.

PROGRAM - The complete or outline of a  complete  target  series  containing
all types.

While there may be other types of targets, these (more  fully  described  in
HCO P/L 14 Jan 69, 16 Jan 69, 18 Jan 69 and correction HCO  P/L  23  Jan  69
and this one, HCO P/L 24 Jan 69) should be  studied  and  every  target  set
should be classed as one or more of the above.

"Complete planning" and "programs" are synonymous at this time and  PROGRAMS
is the preferred word.

L. RON HUBBARD

Founder

LRH:Idm.ei.gm Copyright c, 1969

485



HUBBARD COMMUNICATI

      Saint Hill Manor, East Grins

      HCO POLICY LETTER OF 24 J

            Issue 11

Remimeo

Gung Ho

FSMs

Pub Divs    Target Series 5

PURPOSE AND TARGETS

(This is No. 5 in the Target Series)

Out of data of OT VIII has come some material that cannot  be  relegated  to
that level. It is minor to that level but major to our operations.

The reason we are fought where we are fought is contained in its major  part
in purposes.

Purposes often fail and wind up in stop.

Stopped purposes can then be dramatized.

In Scientology we use (quite correctly) FREEDOM. While not  the  most  basic
purpose TO BE FREE is a common purpose to all thetans.

This tends to key in (restimulate), in  some  persons,  the  stop  of  being
free. They themselves wanted to be free. They were stopped,  they  dramatize
the STOP of being free and try then to stop us. We restimulated  (keyed  in)
their own purpose to be free or free others and where  we  are  opposed  the
person or persons dramatize the stop or disagreement.

Also where we not only restimulate the stop  but  oppose  and  deny  him  as
well, we get an enemy.

We are then stopping stoppers. While this is necessary to save the  day,  it
is preventable if begun early enough,

The psychiatrist is not the only "freedom stopper" we will ever  meet.  Many
people who have been in healing and mental treatment in the times before  we
came along had only failures. So anything offered to them  (including  their
own) will be looked on as a failure at best or at worst a fraud.

That it really can be done in Scientology is not only outside their  reality
but regenerated the failed purpose they have had to be free and free  others
and they dramatize STOP.

While this is not the total reason (interrelations also  restimulate  ethnic
values meaning customs) it is a big reason for dedicated opposition to us.

We restimulate their failed freedom efforts and they dramatize what  stopped
them. So they irrationally seek to stop Scientology.

This would also be true for products of a  commercial  nature.  It  is  good
advertising technology.

Freedom is one of the buttons that gets us forward. It is  also  the  button
that restimulates the opposition into efforts to stop us.

486



In dissemination then to such people, theoretically one need only  get  them
remembering when they wanted to be free or free others to blow their  stops.
But as they may have many crimes now built up on top of  it  some  may  just
spin.

But in all discussions  with  persons  opposing  Scn,  one  should  try  the
approach of getting them to remember their efforts to be  free  or  to  free
others and let them talk. As you listen you will realize they  were  without
Scientology to help them and they didn't have a chance.

Led in from that point you may get a very receptive person.

L. RON HUBBARD

Founder

LRH:Idm.ei.rd.gm

487





      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 20 OCTOBER 1966

Remimeo     Issue 11

All Executive

Hats

Admin Know-How Series I

EXECUTIVE AND GOVERNING BODY ERRORS AND ANSWERS

Anyone in an  executive  position  must  be  in  possession  of  information
concerning his post and the functions of the  organization  or  unit  he  is
heading. Lacking it, he becomes the effect  of  post  and  organization  and
begins  to  create  unreal  orders  and  situations  which  result  in  down
statistics all around.

In principle, anyone in charge of anything  should  know  the  workings  and
functions of every unit, item or action of which he has charge. If he  lacks
such, he should be careful to take advices from his juniors  before  issuing
any order to make certain it can be carried out, is necessary  and  conforms
to workable practice.

Anyone while learning an executive post and yet  acting  as  that  executive
should spend the bulk of his time in study and should issue  NO  orders  and
approve of NO orders until he has taken up the matter with  those  who  will
be affected by those orders before they are issued.

Eventually, as one learns his post after months or  years,  he  or  she  can
begin to issue orders independent of taking advices  first  from  those  the
orders will affect.

In this way, an executive not yet  well  trained  or  experienced  can  keep
things going while he is studying his position and those things under him.

An executive cannot call himself fully competent or informed  until  he  has
studied all literature, past orders and policies which affect  his  position
or any activity under him, and can handle any machine or  operation  in  any
unit of which he has charge.

Until then he had better adhere closely to the rule that  before  he  issues
any order he had better consult with all those it will affect.

However, in doing this, he must not at the  same  time  issue  only  popular
orders or orders tending to  break  down  the  existing  structure  just  to
reduce labor or hours on the job or raise pay.

A great many persons fail as executives solely because they

a.    Do not proceed as above on a new job or promotion or

b.    Fail to hold together and control the activities in which they find
themselves in charge or

C.    Use their position solely to buy popularity or

d.    Form a clique for their own self-protection against the mob.

It takes a very sensible person to succeed on a  new  job  as  an  executive
without previous experience or previous study; but if a person follows  this
advice as given herein, he or she can win and hold  the  statistics  up  and
even raise them.

GOVERNING BODIES

Any council or conference or board  becomes  bogged  only  for  one  of  the
following reasons:

A. It is inactive or

B. It seeks to solve the wrong problem or

C. It fails to notice and nullify arbitraries that have been introduced.

A. The inactive council or conference or board may be inactive for a  number
of reasons.

It can simply be inactive.

It can be inactive as a governing body while individually very busy  issuing
orders. This is quite fatal as such orders will conflict with orders  issued
by other members of the body also acting individually.  The  consequence  is
that the activity so governed will then seek  orders  elsewhere  to  resolve
the confusion of conflicting orders from members of the governing  body-this
is how mutinies and revolutions occur and  also  why  some  activities  will
suddenly create dictators. To use one's status as a member  of  a  governing
body as an individual authority, and yet not see that it is  the  body  that
governs, will surely bring about mutiny and revolt and new leaders.

The remedy is of course to permit no orders not  agreed  to  in  the  actual
conference of the governing body and to  reprimand  and  cancel  any  orders
issued independently.

If the body is simply inactive and  won't  become  active  at  all,  despite
everything, it should be disbanded  as  a  governing  body  and  its  powers
delivered to a single individual. A body inactive that won't act as  a  body
must not be permitted any power. For example, if an Ad Council  is  actually
inactive, it should be disbanded and its powers  individually  delegated  to
its individual Exec Secs. However, if this is done, no powers  may  overlap.
Some "governing bodies" exist only to satisfy the law and have no  power  at
all.

B. Solving the wrong problem means  also  neglecting  to  locate  the  right
problem. There is nothing wilder than orders to remedy situations which  are
not the real problems or the vital problems of an activity.

When a governing body is bogged, a  well-schooled  administrator  should  be
able to see if the body is working on the right  problem,  and  if  not,  to
shift that body's attention to the real problem they should be solving.

An example would be a government seeking  to  resolve  heavy  spending  when
they have no earning. The real problem  is  lack  of  money.  Conversely,  a
government can seek only to earn more  money  when  they  may  have  a  real
problem of fantastically foolish expenditure. In either case, by working  on
the wrong problem that government can fully crash a country.

A governing body can ride prejudices rather than handle  existing  problems,
which is another way to solve the wrong problem.

C. Arbitraries can be  introduced  which  thereafter  require  constant  and
changing solutions which even then do not improve things.

When this happens, one must locate the arbitrary itself that is causing  the
need of solution and abolish it.

The only mistake one can  make  is  calling  any  rule  an  arbitrary,  thus
destroying form. One has  to  isolate  a  real  arbitrary  that  is  causing
needless solutions. When found, it should be removed.

However, one can be so sweeping in doing this that  it  simply  gets  unreal
and wrecks  the  lot.  For  example,  one's  laziness  or  unwillingness  to
confront can condemn something as an arbitrary which, when  removed,  causes
one to collapse. It is not then an arbitrary but a form or necessity.

2



An arbitrary, by definition, is an  interjected  law  or  rule  or  decision
which does not fit or is unnecessary.

Such things can cause a governing body to box about for years and
eventually fail.

Here is an example of an arbitrary that caused endless solutions  and  which
when not removed destroyed  a  nation.  "Our  currency  must  not  circulate
beyond our borders." This was kept unwittingly in force.  As  money  depends
for its value on its  scope  of  potential  circulation,  the  money  became
worthless and the country caved in. Literally millions of  governmental  and
individual  solutions  became  necessary  after  that  one   arbitrary   was
introduced.

So an "arbitrary" can be  said  to  be  something  which  actually  violates
natural law and which becomes, when held in place,  an  enforced  lie.  This
causes endless board or governing body trouble wherever it occurs.

Here is another example.  "Unions  have  the  right  to  strike."  This  was
assumed and is not part of any law code as it says, "A body of men  has  the
right to injure business and property without at least  civil  recourse  for
damages by the business." Protection  racketeers  assumed  the  same  right.
This arbitrary is a lie since nobody has that right. It laid France open  to
World War 11, for instance,  as  France  through  the  1930s  was  one  long
strike. True, unions have improved pay and working conditions. But there  is
no right to  damage  businesses  which  support  one.  By  introducing  this
arbitrary without seeking sensible means, the Western world  was  opened  to
inflation, unrest and conquest by lawless political elements.

So an arbitrary must be something contrary to the general scheme of  things,
and while a lie, is yet held in place by law or public ignorance.

Arbitraries are usually introduced by those who aren't quite  bright  enough
to  achieve  a  result  through  wise  measures.  And  otherwise  wise   men
thereafter can spend decades and invent whole law  codes  trying  to  handle
the problems so set up.

BOGGED ORG

When an org is bogged after a period of success, it is  almost  always  true
that an earlier program or order has been dropped or forgotten.

1 have always been able to trace bogs to skipped orders.

An example is the Qualifications Division program order. Outer org  recovery
was planned so as to improve Qual in each org, then to  get  staff  training
in, and then  to  improve  the  Tech  Division.  This  order  was  at  first
executed, then was not  followed  up  and  the  beginning  recovery  slumped
again. The remedy was to reinstitute the original program.

Ordinarily one doesn't need new programs but  needs  the  follow-through  on
programs that have not been complied with.

When 1 see a slump occur, 1 first ask what program wasn't  executed  or  got
dropped. 1 always find it; and when reinstituted, things surge. Then I  find
who dropped it and reorganize personnel with nondroppers.

In this admin failure the dropped program is seldom a little  one.  Recently
at Saint Hill when statistics slumped, I found the program that was out  was
selling the Saint Hill Special Briefing Course.  It  was  being  taught  but
never mentioned. Yet it, not Power Processing, was  the  mainstay  of  Saint
Hill.

Look for the program or orders that were dropped  or  forgotten  before  you
start originating new ones. You may find the dropped one  is  so  huge  that
nothing could remedy it. In many orgs the dropped program was  the  original
one-to put an org there! Of course no other order will revive the  place  as
the org wasn't put there in the first  place,  and  people  think  they  are
running an org whereas they didn't finish up putting one there  to  be  run.
It's often as simple as that,



DEV-T

An administrator (any  executive)  who  does  not  know  and  enforce  dev-t
policies is letting the org down severely. It isn't just his own  basket  or
office, it's the fact that Dev-Ters are annoying other  staff  too  if  they
are into an executive's hair.

A towering in-basket is always a sign of an executive  not  enforcing  dev-t
policy. The whole org will sag if executives don't enforce these.

WHOSE HAT

Once you have dev-t in hand, your basket traffic shrinks but you  may  still
be overworking by reason of another factor-wearing,  unknown,  the  hats  of
others.

I always look up every month or so to see whose hats I am wearing besides
my own.

If I find I am wearing hats not mine, I begin to look around the people  and
areas that should be wearing those hats.

If I find the people whose hats I am  wearing  have  seniors  below  me  but
above them, I then examine the work areas of the seniors.

I always find one of two things:

a.    The seniors are not active at all or

b.    The seniors are doing something else than their own hats.

On the staff whose hats  I  am  wearing,  I  usually  find  they  are  doing
something else-not just inactive.

I then examine the statistics involved. And any finances,

I can then clean up this area by reorganization.

As the seniors are being bypassed, I have to assign a  Danger  condition  to
them and apply the Danger Formula (ethics action vital).

I get the statistics up and things going in that area and then get the hats
worn.

In this way only an executive can wear his own hats and do his own work.

So if you are training  an  executive  or  if  you  are  seeking  to  get  a
governing body or council or committee to function, or  trying  to  make  an
org recover, you can use these bits of know-how.

They are vital senior data which, properly employed, can make  organizations
run despite lack of training by executives and even very  strange  governing
bodies.

Just apply the data contained herein and magic!-all will resolve.

L. RON HUBBARD

Founder

LRH:rd.gm

[Note: Any Admin Know-How Series issue which didn't previously have a
series number has been given a series number by the editors of this
volume.]

4



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 31 OCTOBER 1966

Remimeo     Issue I

All Executive

Hats

Admin Know-How Series 2

ACTIONS, EXECUTIVE, FOR HANDLING DISASTROUS OCCURRENCES

There are three steps necessary on  the  part  of  a  senior  executive  who
discovers a situation which may be disastrous to the org.

The executive's actions are as follows:

1.    Issue orders of a remedying or preventive nature instantly by
directive, to remain in effect until all data is in. This is called an
urgent directive.

2.    Appoint a Board of Investigation to investigate the matter, with
orders to investigate fully and couch findings in terms of a directive or
policy for issue,

3.    Pass or modify the Board's findings as orders to supplant the urgent
directive issued as I above. This is called the final directive or policy.

THE URGENT DIRECTIVE

To do 1-issue a sweeping order to handle the situation.  This  is  vital  as
there isn't time to get all the facts. The order  may  be  fair  or  unfair,
correct  or  incorrect,  but  at  least  it  does  something  to  arrest   a
deteriorating situation.

This urgent directive may, however, be in fact wide of the mark; but  it  is
only going to remain in force until superseded by orders based  on  all  the
data obtained at leisure.

Dictatorships are somewhat successful as proven in the  past  and  they  run
only on urgent directives. So the system is not all bad. However,  for  such
a directive to remain law forever is obviously wrong as  it  may  be  wholly
arbitrary and may eventually get in somebody's hair. But  not  to  issue  it
just because one has little data is to ask for disaster.

So in the face of disaster issue an urgent directive as  best  you  can  and
hope you are right in your directed action.

THEBOARD

Convene now a Board of Investigation composed of impartial members who  will
investigate thoroughly.

Order them to turn in their findings in the form of law that can  be  issued
exactly as they wrote it.

Trouble with such boards, they "recommend" in an often rambling way; and  as
they aren't really writing law, they tend to overlook things.

Democracies  have  a  terrible  habit  of  only  appointing  committees   to
investigate without issuing  any  urgent  directive  first.  This  leaves  a
vacuum of direction and courts disaster. Such bodies may take  a  long  time
to bring in their findings. This is a great weakness-to let an abuse  go  on
while one investigates.



THE FINAL DIRECTIVE

When the convening authority has the board's findings to  hand,  he  studies
the proceedings and findings to make certain  that  the  disaster  is  fully
handled by the findings and  that  further  disasters  of  like  nature  are
inhibited by these findings from occurring.

If he is satisfied on this score (that the findings are adequate),  he  must
now see that they do not violate the fast flow system of management  to  any
great degree and that they are  as  adequate  as  the  urgent  directive  in
arresting the disaster. If so, the  executive  sends  the  findings  through
regular channels with all papers to make them into law. Until actually  law,
the urgent directive is still in force.

If he is not satisfied or doubtful that the findings are  adequate,  he  can
convene another board to do a better job. If he does convene another  board,
the urgent directive remains in force.

The findings actually become law only when

a.    The convening authority has passed them as they are or modified by
himself or another board

b.    The findings have gone through all steps necessary to become law

C.    The findings are finally the law.

Then the urgent  directive  is  canceled.  It  must  be  canceled  when  the
findings become law and may not remain as a possible arbitrary.

The above is good administration.

Some governing bodies use only urgent directives.

Some use only committees or boards or senates.

To use less than all three in the face of a disastrous situation is poor
admin.

Example: Income goes down like a shot.

(1) Issue an urgent directive calculated to get income up like a  shot.  (2)
Convene a board to find out why it  went  down  and  to  discover  what  was
dropped out and find how  to  get  it  back  up.  (3)  Supplant  the  urgent
directive with the findings.

Where policy is concerned, the channel is longer as more  people  must  pass
on it. But directives are also law. So one should not issue a  directive  in
the face of disaster and just hope. One should do all three steps above.

By disaster is meant a circumstance or situation that is crippling  and  may
adversely affect a whole or a part of an org. Low income  is  a  heavy  risk
that may result in disaster. A heavy continual expenditure may result  in  a
disaster. Any gross divisional statistic going  down  and  staying  down  is
courting disaster. And such should  be  handled  with  the  three  steps  as
above. Then the org form and duties if bent  out  of  shape  by  the  urgent
directive won't stay out of shape forever.

As a comment, statistics when they change suddenly and  go  down  mean  that
something has been dropped or some arbitrary order  has  been  given.  Stats
going steeply up also mean  a  change  has  occurred  and  it  can  be  very
disastrous not to find what it was that was so good. So  one  can  also  use
the three steps to handle a sudden

6



soaring statistic to maintain it rather than  stay  in  the  dark.  Example:
Letters out soars to an  all-time  high.  Issue  an  urgent  directive,  "No
person or line may be changed in the Dissem Division  on  peril  of  a  Comm
Ev." Then convene a board and  find  why  and  get  some  law  on  it.  Then
supplant the urgent directive with the new directive resulting.

This in no way alters the need of a directive to be passed by the  LRH  Comm
or a policy letter to  be  passed  by  all  specified  terminals  before  it
becomes policy.

PERSONNEL

Steps 1, 2 and 3 can also be used on personnel where the executive thinks  a
staff member is the  reason.  Suspension  from  post  pending  investigation
would be the urgent directive in this case. However,  the  staff  member  so
suspended may not be deprived of wages and  must  be  given  an  apology  if
found not to be the reason. And no real action may be taken unless there  is
an ethics action recommended by the board and only if the  person  is  found
guilty in that ethics action.

In this case there are four steps:

1.    Urgent directive

2.    Board of Investigation

3.    Ethics action or no ethics action

4.    Final directive either (a) restoring the  personnel  and  stating  the
real causes in the form of a separate directive with long-range  actions  to
handle the situation, or (b) appointing a new personnel and recommending  in
a separate directive long-range actions to handle the situation.

The steps  are  four  because  there  are  two  matters  involved:  (a)  the
personnel and (b) the situation. Even if the personnel was at  fault,  there
must be something else wrong too if a personnel got into a post  who  didn't
belong there.

L. RON HUBBARD

Founder

LRH:rd.gm

Admin Know-How Series 3

[Note: HCO PL 31 October 1966, Admin Know-How Series 3, JOB ENDANGERMENT
CHITS, was amended and reissued as HCO PL 5 March 1968, Issue 11, Admin
Know-How Series 19, JOB ENDANGERMENT CHITS, which is on page 68.]

7



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 3 NOVEMBER 1966

Remimeo

Admin Know-How Series 4

LEADERSHIP

Leadership is one of the most misunderstood subjects  in  Man's  dictionary.
But it is based almost solely on the ability to give and enforce orders.

An order or directive is necessary to bring about coordination  of  function
and activity, without which there could be disagreement and confusion.

In an organization there is more  than  one  person  functioning.  Being  of
comparable rank and having different purposes (hats),  they  can  come  into
conflict and disagreement in the absence of a plan or  order  or  directive.
So, without orders, plans, programs, one does not have an organization.  One
has a group of individuals. We see in earlier policy letters  that  a  group
composed only of individuals cannot expand and will remain small,

Oddly enough, such a group will also remain unhappy.  It  will  have  a  low
affinity with the public and each  other  and  if  you  know  the  Affinity-
Reality-Communication triangle, you will realize that all three points  drop
if one does. Agreement being the basis of reality, you will find a group  of
individuals will disagree with each other and have a  low  reality  on  what
they are doing or what to propose and even what to do.

Most people confuse  a  "taut  ship"  with  a  harshly  led  ship.  Actually
harshness has nothing to do with it. The right word is positiveness.

If a group is led by someone whose programs and orders  are  very  positive,
then the group has a chance of going into agreement with  one  another;  and
so their affinity improves and so does their communication and reality.

So if one issues no orders, a group will remain a group of  individuals  out
of agreement with each other. will do little, and will remain  small  or  at
least nonexpanding.

Bill, of equal rank to Joe, cannot give an order  to  Joe  nor  vice  versa.
Thus no orders exist between them. Occasional agreements do  occur;  but  as
their  jobs  are  different,  they  rather  tend  to  disagree  on  what  is
important.

A person with a senior standing to both Bill and Joe can  give  the  two  an
order and this becomes the basis of an agreement.

The order doesn't even have to be liked by Bill and Joe. If they follow  it,
they thus 46agree" to it; and being in agreement on this, they  get  reality
and communication on it as well.

Even poorly thought out orders angrily given, if issued  and  enforced,  are
better for a group than no orders at all. But such orders are  the  low  end
of the scale.

Positive, enforced orders, given with  no  misernotion  and  toward  visible
accomplishment, are the need of a group if it is to prosper and expand.

8



The group is full of "good fellows." This does not give it success.

The group is full of plans. These do not give it success.

What it needs are positive orders leading to a  known  accomplishment.  Many
obstacles can exist to that accomplishment, but the group will function.

We call it "leadership" and other nebulous things, this ability to handle  a
group, make it prosper and expand.

All leadership is, in the final analysis, is giving the orders to  implement
the program and seeing that they are followed.

One can build this up higher by obtaining general agreement on the how,  why
and what of programs. But to maintain  it,  there  have  to  be  orders  and
directives and acceptance or enforcement thereof-else the  group  will  fall
apart, sooner or later.

Positive orders and directions on positive programs inevitably cause
expansion.

Being wise or  a  good  fellow  or  being  liked  does  not  accomplish  the
expansion. People in the group may be cheerful-but are they  going  anywhere
as a group?

So the whole thing boils down to:

Positive directions and their acceptance or enforcement  on  known  programs
bring about prosperity and expansion.

No or weak orders bring about stagnation and collapse.

The ideal is to have programs with which  the  whole  group  or  a  majority
agrees fully.  Then  to  forward  these  with  positive  orders  and  obtain
compliance by acceptance or enforcement.

But regardless of the enthusiasm for a program, it will eventually  fail  if
there is no person or governing body there to issue and  enforce  orders  to
carry on the program.

Thus we have the indicators  of  a  very  bad  executive  whose  group  will
disintegrate and fail no matter how cheerful they are with the executive.

Bad leaders

1.    Issue no or weak orders

2.    Do not obtain or enforce compliance.

Bad leadership isn't "grouchy" or "sadistic" or the many  other  things  Man
advertises it to be. It is simply a leadership that gives no or weak  orders
and does not enforce compliance.

Good leadership

1.    Works on not unpopular programs

2.    Issues positive orders

and

3.    Obtains or enforces compliance.

These facts are as true of a governing body as they are of an individual.

A typical example of a bad governing body, at the present stage of its
formation at



least, is the United Nations. It has great ideas about how better Man
should be perhaps, but

I . It issues a confused babble of orders when it issues any

and

2.    It issues orders for which it can obtain little or no compliance.

Note that it is also insolvent, at war within itself, and that it has not
made a dent in its prime program-the prevention of war.

However these things came about, they are nevertheless true. It is a very
poor governing body and far more likely to vanish than expand.

You can count completely on the fact that an executive or a governing body
that does not adhere to not unpopular programs, that does not issue
positive orders and does not obtain or enforce compliance, will have down
statistics.

And you can be sure that an executive or governing body that formulates or
adheres to not unpopular programs, that issues positive orders and that
obtains or vigorously enforces compliance, will have up statistics.

Wisdom? Popularity9 These unfortunately have little or nothing to do with
it.

The way to have up statistics, a prosperous and happy group, is far more
simple than complex Man has ever realized.

L. RON HUBBARD

Founder

LRH.jp.rd.gm

10



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 6 NOVEMBER 1966R

Remimeo     Issue I

REVISED 9 NOVEMBER 1979

(Revisions in this type style)

Admin Know-How Series 5R

STATISTIC INTERPRETATIVE

STATISTIC ANALYSIS

Ref..

HCO PL 9 Nov. 79*      HOW TO CORRECTLY DETERMINE A

            STAT TREND

HCO PL 3 Oct 7OR*      STAT INTERPRETATION

      Rev. 9.11.79

HCO PL 6 Mar. 6611     STATISTIC GRAPHS-HOW TO

            FIGURE THE SCALE

HCO PL 5 May 71R 11*   READING STATISTICS

      Rev. 9.11.79

This policy letter has been revised to fully clarify the correct method of
reading stat trends under the sections "Backlogs" and 'The Dangerous GrapW'
and to reference the main policy letters containing data on reading stals
and stat trends.

The subject of making up statistics is probably well known.  How  one  draws
one. But the subject of what they mean  after  they  are  drawn  is  another
subject and one which executives should know well.

Things are not always what they seem in statistics.

BACKLOGS

A backlog caught up gives  one  a  high  soaring  statistic  which  promptly
slumps. To call the soar affluence and the slump emergency is  an  executive
error.

When you see  a  leaping  and  diving  pattern  on  something  that  can  be
backlogged, you can be very sure it has been.

This activity is working in fits and starts, usually only occasionally
manned.

For a long time nothing is done or counted; then suddenly  a  month's  worth
is all counted in one week.

So when you see one of these,  realize  that  the  one  surge  in  stats  is
averaged out with the  smaller  peaks  and  the  depressions.  You  have  to
visually average the peaks and valleys and note the trend  the  entire  stat
is taking.

CAUSATIVE STATISTICS

In any set of statistics of several kinds  or  activities,  you  can  always
find one or more that are not "by luck" but can be directly  caused  by  the
org or a part of it.

An example is the "letters out" and "completions." Gross divisional
statistics.

I I



Whatever else is happening, the org itself can improve these as they  depend
only on the org, not on "fate."

So if you see the gross divisional statistics generally down or  going  down
for the last couple or three weeks and yet see no beginning upsurge  in  the
current week in "letters out" and "completions," you  know  that  the  org's
management is probably inactive and asking to be removed. For  if  they  saw
all stats going down  they  should  have  piled  in  on  "letters  out"  and
"completions" amongst other things as the least  they  could  do.  They  can
push those up.

So amongst  any  set  of  statistics  are  those  which  can  be  pushed  up
regardless of the rest, and if these aren't,  then  you  know  the  worst-no
management.

ENROLLMENT VERSUS COMPLETIONS

If you see  a  statistic  going  up  in  "completions"  and  see  a  falling
"enrollment" statistic, you know at once the body  repeat  sign-up  line  is
out.

People who graduate are not  being  handed  their  certs  and  awards  by  a
Registrar but are being given them by Certs and Awards or in mass  meetings,
or in some way repeat sign-up is not being procured,

Thus the 40% to 60% repeat sign-up business is being lost.

This also means,  if  continued  over  a  long  period  of  time,  that  bad
technology is present as poor word-of-mouth advertising is going around.

Look in such a case at a third statistic-Qual collections. If this  is  poor
or very, very high, you can be sure that lack of enrollments  is  caused  by
bad tech.

A very high Qual collections statistic and a low enrollment statistic  is  a
terrible condemnation of the Tech Division. Gross  income  will  soon  after
collapse as tech service just isn't good.

COMPARING STATISTICS

Thus you get the idea. Statistics are read against each other.

A statistic is a difference between two  or  more  periods  in  time  so  is
always comparative.

Also, two different statistics are comparative, such as in examples above.

PREDICTION

You can predict what is going to happen far in advance  of  the  occurrence,
using statistics.

High book sales mean eventual  prosperity.  Low  book  sales  mean  eventual
emergency all along the line.

High gross income and low completions  mean  eventual  trouble  as  the  org
isn't delivering but  is  "backlogging"  students  and  pcs  simply  by  not
getting results. Carried on long enough this means eventual civic and  legal
trouble.

Low FSM commissions may only mean no FSM program. But if  there  is  an  FSM
program, then it may mean bad tech. So a low completion and  low  Qual  will
mean an eventual collapsed FSM statistic also, as  the  FSM's  own  area  is
being muddied up by failed cases.

High book sales, high letters out, high Tech and high Qual  statistics  mean
the gross income statistic will soon rise. If  these  are  low,  then  gross
income will fall.

I



Bills owed and cash in hand are read by the distance between the two  lines.
If it is narrowing, things are improving; if widening,  things  are  getting
worse. If they are far apart and have not closed for a long while, with  the
cash graph below, the management is dangerous and not at all alert.

THE DANGEROUS GRAPH

When all statistics on one set of graphs show a sinking TREND line, it is  a
dangerous situation.

TREND  means  an  inclination  or  tendency  toward  a  general  course   or
direction. Thus to get the trend one would look at several  weeks  worth  of
stats.

To read the stat trend, one needs to visually average the peaks and  valleys
over a specific time period on the graph, It is done with  the  eye,-  there
is no internal system of lines that can be drawn to assist  this.  One  sits
back and looks at the pattern as a whole and there is a  definite  pitch  or
slant that one can determine by this. That is the stat trend.

If all of these stat trends or most of them are down, the management is
inactive.

FALSE COMBINATIONS

When a Continental Org includes its own org on its combined graphs for  area
orgs, it can have a very false picture.

Its own org's stats obscure those of the area orgs which may be dying.

Thus if you include a big function with a lot of small ones  on  a  combined
graph, you can get a very false idea.

Thus, graph  big  functions  as  themselves  and  keep  them  out  of  small
functions of the same kind.

The Continental  Org  should  not  be  part  of  a  Continental  Exec  Div's
statistics. Similarly, SH stats should not be part of WW's.

A combined statistic is, of course, where  you  take  the  same  stats  from
several functions and add them up to one line. A very large  function  added
into a combined graph can therefore obscure  bad  situations.  It  can  also
obscure a totally inactive senior management as the big function  under  its
own management may be wholly alert and competent, but the senior  management
is masked from view by this one going concern, whereas all its other  points
except the big one may be collapsing.

THE BIGGEST MISTAKE

The one big god-awful mistake an executive can make in reading and  managing
by graph is being reasonable about  graphs.  This  is  called  JUSTIFYING  A
STATISTIC. This is the single  biggest  error  in  graph  interpretation  by
executives and the one thing that will clobber an org.

One sees a graph down and says, "Oh well, of course, that's . . . "  and  at
that moment you've had it.

I have  seen  a  whole  org  tolerate  a  collapsed  completions  graph  for
literally months because they all "knew the new type process wasn't  working
well." The Tech Sec had  JUSTIFIED  his  graph.  The  org  bought  it.  None
thought to question  it.  When  it  was  pointed  out  that  with  the  same
processes the  preceding  Tech  Sec  had  a  continual  high  graph,  and  a
suppressive was looked for, it turned out to be the Tech Sec!

Never JUSTIFY why a graph continues to  be  down  and  never  be  reasonable
about it. A down graph is simply a down graph and somebody is  goofing.  The
only

13



explanation that is valid at all is, "What was changed just before it  fell?
Good. Unchange it fast!" If a graph is down it can and must go  up.  How  it
is going to go up is the only interest. "What did we do each time  the  last
few times just before it went up? Good. Do it!"

Justifying a graph is saying, "Well, graphs are always down in December  due
to Christmas." That doesn't get it up or even really say why it's down!

And don't think you know  why  a  graph  is  up  or  down  without  thorough
investigation. If it doesn't stay up  or  continues  down  then  one  didn't
know. It takes very close study on the ground where  the  work  is  done  to
find why a graph suddenly rose or why it fell.

This pretended knowledge can  be  very  dangerous.  "The  graph  stays  high
because we send out the XY Info Packet," as a snap judgment, may  result  in
changing the Dissem Sec who was the real  reason  with  his  questionnaires.
And the graphs fall suddenly even though no info packet change occurred.

GROSS REASONS

Graphs don't fall or rise for tiny, obscure,  hard-to-find  reasons.  As  in
auditing, the errors are always BIG.

Book sales fall. People design new flyers  for  books,  appropriate  display
money, go mad trying to get it up. And then at long last one  discovers  the
real reason. The bookstore is always shut.

A big reason graphs fall is there's nobody there. Either  the  executive  is
doublehatted and is too busy on the other hat, or he just  doesn't  come  to
work.

STICKY GRAPHS

Bad graphs which resist all efforts to improve them  are  made.  They  don't
just happen.

A sticky graph is one that won't rise no matter what one does.

Such a graph is made. It is not a matter of omission. It is a matter of
action.

If one is putting heavy effort into pushing a graph up and it won't go up,
then there must be a hidden counter-effort to keep it down.

You can normally find this counter-effort by locating your biggest area of
noncompliance with orders. That person is working hard to keep graphs down.

In this case it isn't laziness that's at fault. It's counter-action.

I have never seen an org or a division or a section that had a sticky graph
that was not actively pushing the graph down.

Such areas are not idle. They are not doing their jobs. They are always
doing something else. And that something else may suddenly hit you in the
teeth.

So beware of a sticky graph. Find the area of noncompliance and reorganize
the personnel or you, as an executive, will soon be in real hot water from
that quarter-

Those things which suddenly reared up out of your in-basket, all claws,
happened after a long period of sticky graphs in that area.

Today's grief was visible months ago on your stats.

14



SUMMARY

The simple ups and downs of graphs mean little when not watched over a
period of time or compared to other graphs in the same activity.

One should know how to read stats and what they mean and why they behave
that way so that one can take action in ample time.

Never get reasonable about a graph. The only reason it or its trend is down
is that it is down. The thing to do is get it up.

L. RON HUBBARD

Founder

LRH.jp.rd.gal.gm Copyright@ 1966, 1979

*[Note: Three of the issues referenced at the start of HCO PL 6 Nov. 1966R,
Admin Know-How Series 5R, STATISTIC INTERPRETATIVE-STATISTIC ANALYSIS have
been revised. These revised issues are HCO PL 9 Nov. 1979R, revised 27 Aug.
1982, HOW TO CORRECTLY DETERMINE A STAT TREND; HCO PL 3 Oct. 1970RA,
revised 27 Aug. 1982, STAT INTERPRETATION; HCO PL 5 May 1971 RA, revised 27
Aug. 1982, READING STATISTICS.]

15



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 10 NOVEMBER 1966

Remimeo

Admin Know-How Series 6

GOOD VERSUS BAD MANAGEMENT

The difference between good management and poor management can be  the  loss
or gain of the entire organization,

Financial  planning  is  a  vital  part  of   management.   Good   financial
estimations and the ability to figure out, without vast accounting, the  way
things are in an org is an ability which is vital to good management.

The manager, given a few vital facts, who then needs an accountant  to  tell
him how things are, is of course incompetent.

Management is a high skill. Socialist or  worker  governments  are  flat  on
their uppers because they do not comprehend the degree of  insight  required
in a successful manager. When they  harass,  mess  up  and  sometimes  shoot
their managers, they promptly begin eras of starvation as in  Russia,  China
and to some extent under their socialisms, in recent years, England and  the
US. The amount of time any manager  has  to  spend  in  the  US  or  England
battling  with  government  clerks  who  aren't  skilled  enough  to  run  a
tricycle, assisted, is easily a third of the manager's time.

The essence of good management is CARING what goes on.  The  worker-oriented
fellow cares for the worker but not for  the  organization.  So  we  have  a
final extinction of the worker by the organization vanishing and  no  longer
able  to  employ.  The  consequence  is  the  widespread   depression   just
beginning. Real help for the worker is also making sure there will  be  work
for him to do. When the organization is gone,  there  is  only  misery,  the
dole, revolution and sudden death. The "worker-oriented" manager  lacks  the
insight into the skill necessary to manage. So to  him  an  organization  is
something to be bled. It is a bottomless  pit  of  money.  Such  a  person's
total "skill" is how to get something  out  of  the  organization.  But  you
can't take out more  than  comes  in.  Management  is  entirely  beyond  the
ability of such people. They don't know what it is all about.  They  do  not
care what happens to the  organization.  Then  suddenly  the  machinery  all
stops and everyone starves.

Whole countries go this way when the mess begins.

The basic difference between organizations that run and those that  collapse
is simply somebody caring what happens to the organization itself.

A good manager takes care  of  the  workers.  He  also  takes  care  of  the
organization. A worker-oriented fellow-union  leader,  agitator,  do-gooder-
cares only for the worker and thus does the worker in. So he is  actually  a
suppressive. For the whole bang shoot goes to pieces and the end product  is
dismal unemployment, depression, malnutrition, starvation. You have to  have
lived through such a period to learn dread of it.  And  that's  what  caring
nothing for the organization finally results in.

A worker-oriented person is deficient in pan- determinism. He or she  cannot
see that the health of all demands he take  into  account  workers  and  the
org. Therefore he or she is below the ability to  determine  both  sides  of
things and so makes a very poor executive, being lopsided,  given  to  "them
and us," playing favorites and unable to see two sides of a  question.  Such
abilities are vital in an executive, so he isn't one.

16



A worker-oriented person is not nice to individual  workers-he  or  she  may
shoot them-but only about collective "workers."

Poor source identification goes with lack of  pan-determinism  so  a  person
cannot see or solve the real problems around.  So  such  people  can't  even
operate as executives.

Thus you can know them. The org or country always fails.

So you want to watch this "poor-worker" pitch in an executive. If  he  cares
only for the worker and nothing for the org, if he  is  only  interested  in
what he or the workers can get out of an organization, then you are  looking
at somebody who in the long run will put one and all on the street.

You see here and there bared teeth at the org or the idea of the org.  Along
with it, if you look, you will find a heavy  carelessness  about  the  org's
money and property and  also  a  heavy  effort  to  get  something  for  the
workers. Here you have a full-bodied case. This person  won't  ever  succeed
and should never be an executive. Never. For he'll do the workers in.

A good manager cares what happens, what's spent, what prosperity can  occur,
how the work is done, how the place looks, how the staff  really  fares.  He
is dedicated to getting the show on the road and he takes out of  the  line-
up obstacles to the org's (and staff's) progress.

Caring what goes on and not caring  is  the  basic  difference.  Caring  for
something else while working is the mark of the laborer, not the executive.

If you have to start an economy drive, look for the  people  who  fight  it.
Quietly remove them from  executive  posts.  You  have  a  laborer,  steeped
privately in "us-poorworkers" and "get what you can" and "spend the org  out
the window."

If you care what happens to the org and the size of the  paycheck  as  well,
you will be very careful to develop an insight into finance, efficiency  and
the state of the org.

If you see bills owed  soaring  above  cash  on  hand,  you  will  also  see
executives who care nothing for the org. They are worker-oriented,  anti-org
people  and  you  had  better  put  a  thumb  down  on  continuing  them  as
executives. Along with that unfavorable graph you will also find demands  to
borrow money, sell assets to pay bills and a  near  refusal  to  promote  or
make money.

I have learned all this the hard way. I pass it on for what it is  worth.  I
can say these things because no man on Earth could  seriously  challenge  me
for not caring about people or staffs.  I  do  care.  And  the  ultimate  in
caring is to make sure there is an org there.

So please be alert to  these  points  in  conducting  Ad  Council  meetings.
Inevitably the hardest job is financial planning. But  in  that  sphere  you
will show up the executives and the laborers. Watch and when  you  find  you
have a worker-oriented person there, realize you don't  have  an  executive.
Get one.

SUMMARY

Bad management is therefore detectable on these points:

1.    The bills-cash ratio will be high in bills and low in cash.

2.    There is an effort to borrow money rather than earn it.

3.    There is a heavy effort to sell assets rather than make money.

4.    There is more effort to collect debts, particularly from seniors,
than to make new income.

5.    There will be an effort to be supported.

6.    There will be low affinity in the org for the org and its public.

7.    There will be protest and flash-back at efforts to get them solvent.

17



8.    There will be noncompliance with orders of senior management.

The remedy is to

A.    Find the most worker-oriented senior executive and remove him or her.

B.    Find the anti-org executives and staff and remove them.

C.    Put in the senior posts those who most care what happens to the org.

D.    Enjoin and conduct careful financial planning and measures.

E.    Remove from executive posts those who object to them or don't comply
(that may have been missed in A and B).

F.    Resurrect neglected orders and main programs and get them complied
with.

G.    Be exceedingly careful not to appoint people there in the future who
don't

      care what happens to the org.

It does not much matter how one goes about this. If one wants  the  org  and
its staff to prosper, the above measures must be done and quickly  when  the
bills-cash ratio of an org threatens the continuance of  it  and  the  staff
their jobs.

L. RON HUBBARD

Founder

LRH:jp.rd.gm

18



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 16 NOVEMBER 1966

Remimeo

Admin Know-How Series 7

EXECUTIVE FACILITIES

FACILITY DIFFERENTIAL

When a senior executive has the ability to make money for  the  organization
or greatly raise statistics, and when this ability  has  been  demonstrated,
that executive should have facilities.

This ability is often discoverable by the  absence  of  the  executive  from
post for a period or when the executive is pulled  off  by  emergencies.  In
such a time the income of the org may sink-

The degree the  income  shrinks  is  the  "facility  differential"  of  that
executive. It is worth that much to  the  org  in  facilities  to  have  the
executive on post. Example: With that executive  on  duty-income  $8000  per
week. With that executive absent-$5000  per  week.  This  is  the  "facility
differential" of that executive. It is, in this  example,  $3000  per  week.
This means that the org could afford $3000 per week extreme to provide  that
executive with facilities for his work to keep him  from  overload.  For  it
will lose $3000 a week if this executive is  distracted  or  overloaded.  Of
course nobody expects the org to spend $3000.  It  just  shows  the  extreme
amount it could spend. One cannot  afford  not  to  spend  some  of  it  for
facilities for this  executive.  The  moment  it  does  spend  some  of  it-
providing this executive does have this influence on income  or  production-
the differential rises as the org makes more money or as the stat  goes  up.
This trend can be pushed up and up.

Executives don't deserve secretaries or communicators. They  earn  them.  If
an executive has no "facility differential,"  he  should  not  have  special
personal help.

The "facility differential" can also be judged  from  other  statistics  but
income is the primary one.

For instance, we have just found my "facility differential" for  Saint  Hill
Org only. It is, based on losses during a six months absence and  gains  for
the last part of the year, E244,000 per annum for just this year.  Thus  the
org could afford to spend  E244,000  per  annum  to  furnish  me  management
facilities.

In this case the computation is made by  the  org's  increased  indebtedness
for the first six months plus the lack of reserves set back and the rate  of
dismissal of debt in the last six months plus the reserves  set  aside.  The
increasing debt and reserve absence for six months  is  added  to  the  debt
reduction and reserve presence for the last six months,  giving  the  total.
Income and other personnel remained similar all through the year  but  began
to fail and was picked up by me at the half year.

The value is actual cash wasted in my absence and a  beginning  failure  set
up by bad tech and the  recovery  in  terms  of  cash  retained  and  income
upsurge.

Naturally, this is a very high sum at this time (though quite accurate).

The org, however, cannot afford not to give me every  facility  required  to
keep me on its lines.

These total only a few thousand a year for extra personnel and admin
facilities,

19



not anywhere near f 244,000. Thus, if the org  (SH  only)  permitted  me  to
move off its lines and failed to provide me facilities,  it  would  lose  on
the current balance sheet, f244,000 per annum in actual cash  and  would  in
fact go broke. It can't stand that much loss. So, the answer, nothing to  do
with my wishes, is that SH must provide me facilities for its own sake.  Pay
has nothing to do with it as I don't get paid. But SH staff pay would  cease
entirely as they would have no jobs.

An org is very lucky to have a few  persons  who  can  make  money  for  it,
fortunate to have one, and in a mess if it has none.

Post title may mean nothing. A Registrar who on post brings in $5000 a  week
and off post the org gets only $2000 a week, is  obviously  such  a  person.
The facility differential is $3000 a week!

A Treasury Sec who on post has a cash-bills ratio equal, but off  post,  the
org, through lack of his financial planning, gets a gap of $20,000  for  the
three months he is off, means a facility differential of $80,000 a year  for
that Treas Sec.

The usual reward is promotion but the org often loses income by promoting  a
good Reg to a poor Dissem Sec.

The answer is to  give  the  person  facilities  as  there  is  a  "facility
differential." This may include more pay  on  post  but  must  include  more
facilities, beyond that of other staff members.

Just doing a normal job on post is maintaining income.  It  takes  quite  an
executive to raise it markedly beyond normal expansion.

Mary Sue, by actual data of times past, is worth to an  org  on  any  single
executive post about 50% of its regular gross income. The fall and  rise  of
about half the income has  been  demonstrated  in  several  orgs  over  many
years.  Had  she  also  been  subtracted  from  the  SH  Org,  the  facility
differential added to my subtraction would have  put  it  out  of  existence
before the year was out.

It would be very foolish not to give her facilities. Yet she has never  been
known to ask for any and facilities have had to be initiated  for  her  when
they occurred. Thus top  executives  themselves  have  to  notice  this  and
demand facilities for the person. If they do not, the  person  at  the  very
least will go off post or their services lost because of overwork.

So one doesn't have a communicator because one is  an  Exec  Sec  or  senior
executive. One has one if he or she has  a  "facility  differential"  beyond
normal expectancy.

And that tells one who has communicators in an org. And who has the
facilities.

And it  says  who  must  be  given  communicators  and  facilities  and  who
shouldn't have them.

Granted it is sometimes hard to determine this "facility differential" in  a
staff member. But long experience will establish it.

FACILITIES

Facilities normally include

a.    Those that unburden lines

b.    Those that speed lines

C.    Those that gather data

d.    Those that compile

20



e.    Those that buy leisure

f.    Those that defend

g.    Those that extend longevity on the job.

One can think of many things that do each of these.

The bare minimum are accomplished by giving the executive a communicator.

The communicator more or less covers all the categories above. Then, as  the
facility differential rises, the communicator sheds hats by providing  other
people to take over these functions as outlined above.

ANALYSIS

The org board pattern (names of divisions, departments and their code  words
as per any of our org boards) is an analysis system which can be applied  to
any person or job. He is light or heavy on one or  more  of  these  and  the
pattern gives him or her a clue as to what is wrong.

Write them down for yourself and you will see. Which  ones  don't  exist  in
your actions, which are in Emergency, which are Normal and which are high?

This is an ultimate analysis of the state of one's post. Or  of  one's  life
for that matter. One can progress simply by doing this now and then.

These also comprise a total pattern of facilities,

However, one needn't go  so  far  to  help  an  executive  with  a  facility
differential at first. Later, such an analysis is  absolutely  necessary  to
keep facilities in balance.

At first one only need give the person a better desk in better space  and  a
better phone and more ball-points.

But a real facility differential amounting to  25%  or  more  of  the  org's
income (on or off job difference, proven) demands not only these but also  a
communicator.

WHAT IS A COMMUNICATOR?

A  communicator  is  one  who  keeps  the  lines  (body,  despatch,  letter,
intercomm, phone) moving or controlled for the executive.

The communicator, when not helped by others, really assumes all  of  (a)  to
(g) above and does nothing else for anyone else.

PRIMARY COMMUNICATOR DUTIES

The primary actions of a communicator concern despatch lines and are as
follows:

1.    Receives all written comm for the executive of all kinds with no
bypass.

2.    Identifies and returns to sender all dewt. The  executive  never  sees
it. Notes the senders in a book. Attaches the appropriate Dev-T Pol  Ltr  to
each returned despatch. Monthly, reports the  names  of  offenders  and  the
number of times to the executive. (For these people are ruining other  staff
members too.)

3.    Puts all directives, Pol Ltrs, HCOBs and Ethics Orders and any
statistics in a folder so marked each day.

4.    Puts the org despatches in a folder so marked each  day.  (If  several
org areas or divisions are being handled, puts the despatches in folders  by
areas or divisions.)

21



5.    Puts the personal despatches in a folder so marked each day.

6.    Deletes from the lines anything that  may  be  routinely  answered  by
letter and  answers  it  and  puts  the  originals  and  typed  answers  for
signature in a folder so marked each day.

7.    Presents the folders named in 3 to 5 inclusive in the executive's  in-
basket at the beginning of the executive's workday (and holds all  the  rest
that come in after, until the next day).

8.    Puts the signature folder as per 6 above in the in-basket at the
latest moment of the day sufficient to get them signed for the evening
mail.

9.    Lays cables and telegrams and phone messages in the center of the
blotter on the executive's desk.

10.   Comes in for cable answers when called.

11.   Picks up and files properly for the executive all Pol Ltrs,
directives, in the executive's own file.

12.   Keeps the executive's own files for the executive's use.

13.   Keeps excess paper, magazines, books, picked up and filed.

14.   Leaves alone things the executive is working on but files them if not
being worked on after a while.

15.   Oversees cleanliness and arrangement of desk and office.

16.   Oversees ampleness of pertinent supplies, paper, pens, stapler,
clips, etc.

17.   Doesn't take up the executive's time with chitchat or verbal reports
or rumors.

18.   Handles by-hand rushes for the executive in and out.

19.   Blocks all body  traffic  until  its  business  is  established,  then
routes it properly (except where body traffic is  the  executive's  business
on post, in which case the communicator smooths and regulates it).

20.   Handles phone traffic and keeps it very low, listing abusers as dev-
t.

21.   Takes down names of staff body traffic that is not a routine part of
the line and reports it with the monthly dev-t report.

22.   Takes the entheta off the lines but not items which, if not handled,
will endanger the org.

23.   Notes staff who hand the executive problems but do no compliance with
solutions ordered, and recommends ethics action.

24.   Finds out bits of data when instructed to do so by the executive.

25.   Keeps alert to malfunctions of lines and reports them for handling to
appropriate persons.

26.   Does not take up time of other staff or executives by unnecessary
visits and does not prolong such visits beyond a crisp minimum transaction.

27.   Blocks all lines if the executive is engrossed in a project.

28.   Keeps own desk and materials neat.

22



29.   Demands a communicator's secretary if differential great enough and
lines are jamming.

30.   Demands other facilities as per (a) to (g) above if the facility
differential is great enough and there is overload.

COMMUNICATOR'S TITLE

A communicator's title is always his or her executive's  followed  by  "  's
Communicator." To that, when there are more than one may be added "for  .  .
." being a function or division.

COMMUNICATOR'S PURPOSE

The communicator is  to  help  the  executive  free  his  or  her  time  for
essential income-earning actions, rest or recreation,  and  to  prolong  the
term of appointment of the executive by safeguarding against overload.

COMMUNICATOR EXEC ACTIONS

The communicator has his own executive actions. These come under  the  Admin
Know-How HCO Pol Ltrs of contemporary date.

If a communicator can get these  and  Dev-T  Policies  grooved  in  for  the
executive, the communicator is invaluable.

A communicator should know the Dev-T and Admin Know-How Policies starrated.

It should be no surprise  to  an  executive  to  receive  from  his  or  her
communicator a notice that the executive is violating Admin Know-How or Dev-
T policy. "May I call to  your  attention  that  you  are  wearing  the  Dir
Clearing hat and have been for two weeks," or "You should  request  from  Ad
Council appointment of a board after your 10 July urgent directive."

COMPLIANCE

Policing compliance for a senior executive is a vital function of a
communicator.

When an executive issues orders and they are  not  complied  with  then,  as
this builds up, that  executive  will  suddenly  behold  a  shock  situation
squarely on his plate.

Noncompliance lets entheta situations backfire right up  to  the  executive.
The degree of noncompliance regulates  the  number  of  screaming  emergency
messes the executive will have to handle.

The communicator then keeps an LRH Comm-type log and notes in it the  orders
or directives issued and notes as well compliance (using  Dept  I  &  R  and
time machine). At length, the communicator will have a noncompliance list.

This usually involves only a few persons or outside firms.

The communicator should inform the executive of this  by  presenting  orders
ready to sign nominating Ethics Hearings or Executive  Ethics  Hearings  (or
dismissal of outside firm) on certain persons who consistently noncomply.

If  the  executive  has  a  junior  post  and  a  communicator,   then   for
noncompliance one substitutes "job endangerment" actions  which  harass  the
executive and must be filed and remedied before  the  executive's  statistic
is shattered.

Only in that way can a communicator defend his or her executive  from  being
hit by sudden shocks. Noncompliance (or job endangerment) lets the  barriers
down on the

23



whole incoming line to a nasty situation which  will  then,  unhandled,  hit
the executive with no time lapse left. So he has to  handle  a  deteriorated
situation in a screaming rush. He probably  handled  it  months  before  but
noncompliance let it worsen. And job endangerment, let it build up, has  the
same effect on a junior executive. The amount of bad news an executive  gets
in  is  in  direct  proportion  to  the  failure  of  compliance   (or   job
endangerment) and the communicator's failure to spot it  at  the  time.  The
shorter the time one has to handle a bad mess, the harder and more  shocking
it is.

This is the sole reason a competent executive grows tired,  wants  to  quit,
leaves his job.

It is basically communicator failure to warn him of  noncompliance  (or  job
endangerment) early, so he can get people who will comply (or get those  who
endanger him off his back with their  ineffectiveness  or  suppression).  Or
who will do their jobs and not leave  them  to  the  executive  or  let  the
executive suffer from their deeds or lack of them.

The fashion of a "private secretary" for every title is of course  nonsense.
As not every title by far is an income producer or statistic raiser.

Giving facilities to titles instead  of  high  statistics  denies  the  real
producer what he needs by  soaking  up  available  help  into  corners  that
cannot benefit the org with it.

A normal action of a post is the usual covered (not  uncovered)  post  which
if replaced changes  nothing.  A  real  facility  differential  is  a  large
change.

Thus if you give facilities to those who have no more than  normal  (covered
post)  facility  differential  and  those  who  have   a   marked   facility
differential are given no help, you will eventually  wipe  out  by  overwork
those who have the facility differential and the org will collapse.

It is not flashy new ideas so much that raise income but efficient standard
actions.

New ideas are fine, when all the old programs are also working.

An executive who is brilliantly successful  is  one  who  can  get  all  the
formal, standard functions going and then add  the  garnish  of  bright  new
angles that augment the proven track.

Facilities give a valuable executive "think time" and "consider time" and  a
fresh, alert attitude toward what is going on.

If you want to raise your income as an org, then

a.    Get all standard actions functioning and staff working and

b.    Spot those with "facility differential" and give them facilities.

C.    Don't falsify any "facility differential" for sake of face or status.

d.    Make sure that facilities granted know their business or work.

L. RON HUBBARD

Founder

LRH.jp.ne.gm

24



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 17 NOVEMBER 1966

Remimeo

Admin Know-How Series 8

INTERVENTION

The Urgent Directive System (see HCO  Policy  Letter  of  31  October  1966,
"Administrative Know-How 11") is the one most commonly used, when they  have
to intervene, by senior executives such as the following:

                                   Founder

                                  Guardian

                             A senior Ad Council

                                Asst Guardian

                                  Exec Sec

                                  LRH Comm

The routine in this case is more or less as follows:

1. The senior, on discovery of a bad situation or noncompliance,  issues  an
urgent directive. (If more than one is issued at the same time by  different
seniors, the list above is the precedence list of what order to follow.)

2. The senior directs investigation. Senior Ad Council  usually  appoints  a
Board of Investigation-sometimes directly orders  a  Comm  Ev.  The  Founder
might only require an ED from his LRH Comm in that area. The Guardian  might
require only an ED from an Asst Guardian. An Exec Sec might require only  an
ED from his or her communicator if he or she has one. Or  any  on  the  list
may order a Board.

3. The ordering senior, on receipt  of  the  requested  directive  in  draft
form, then returns it to the Ad Council of the org or orgs to which it  will
apply. Until the Ad Council acts or some directive to handle  the  situation
is passed, the original, most senior urgent directive remains in force.

The above would be the most common admin action, most  calculated  to  bring
things right in the long run.

It is important that until some form of ED is  formally  passed  by  the  Ad
Council of the org or orgs concerned, the urgent directive must be  followed
by those to whom it is addressed.

This keeps arbitraries from entering into admin.

Nothing, of course, prevents a  senior  executive,  as  listed  above,  from
simply issuing straight orders with no follow-through  of  an  ED.  In  such
case, the directive is not called an urgent  directive,  but  is  simply  an
order in ED form.

DIRECT ORDER

Example: The Guardian discovers that a high unreasonable rental compared  to
income is being contemplated. By  any  means  or  ED,  she  forbids  it  and
demands other quarters be looked  for  quickly.  This  requires  no  follow-
through beyond the Guardian making sure other quarters  ARE  found  and  the
order is complied with.

25



URGENT DIRECTIVE

Example: The Founder finds  a  long  string  of  people  are  being  labeled
suppressive because they won't separate from Joe Blow. He writes  an  urgent
directive to stop labeling people this way  and  convenes  a  Board  on  the
whole subject in that org, gets their findings in the form of an  ED,  sends
it to that Ad Council. They pass it after some, none or  many  changes.  The
urgent order ceases to be in force  at  that  moment.  He  could  also  have
simply issued a direct order.

Example: An HCO Exec Sec finds Central Files is not increasing.  She  issues
an urgent directive to round up all CF names  lying  around  the  org.  Then
investigates personally, writes an ED and puts it  before  the  Ad  Council.
They work on it, modify it or expand it and pass it.  The  urgent  directive
ceases to be valid. Remember, she could  as  easily  simply  have  issued  a
direct order as above. It could even have been in Executive Directive form.

Example: An impending lawsuit is heard of by the  Guardian,  the  senior  Ad
Council and the local Ad Council where  it  will  occur.  The  Guardian  and
senior Ad Council both issue urgent directives  and  the  local  Ad  Council
passes a directive on it. The Guardian's  urgent  directive  wipes  out  the
orders junior to it and it is followed. On the Guardian getting an  ED  from
the Assistant Guardian of that org, the Guardian sends the  ED  before  that
org's Ad Council for passage or change. The Guardian's urgent  directive  is
superseded by the Ad Council's directive based  on  it.  But  remember,  the
Guardian can comm-ev the lot  if  the  situation  is  not  finally  handled,
regardless of the Ad Council directive having been passed, if things  goofed
up.

PETITION

A direct order or a straight  directive  can  be  petitioned  against  after
compliance. The Ad Council simply passes  a  petition  and  gives  any  data
required or an ED to substitute.

It is usually wise to give a better remedy in the form of an ED and get
that ED conditionally passed with the approval of the original issuer of
the direct order or straight directive.

THEORY

Those who do the work sometimes know best and those nearest the scene are
sometimes better armed with data.

A senior executive sometimes has to act without all the data and a wise
senior often so acts when the situation is bad.

But the senior is only trying to remedy the situation in the final
analysis. After his ordered fast action is taken, he is ordinarily quite
happy to have help improving the remedy.

DIRECT SUBMISSION

An urgent directive or direct order may also be handled as follows by a
senior:

1.    Issue it.

2.    Send it to the Ad Council of the org to which it applies with the
note: "After you've done this, pass a directive to handle this sort of
thing."

DEMANDED DIRECTIVE

A senior can simply demand an Ad Council pass a directive to remedy a
situation

26



and let them sort it out. This is only done when one has almost no data.

In this case the Ad Council passes one, puts it in force and  sends  a  copy
to the senior via channels stating, "Compliance herewith."

LABELING DIRECTIVES

When an Executive Directive is passed by an Ad Council, if it wipes  out  an
urgent directive or  a  direct  submission  or  a  demanded  directive,  the
resulting ED must bear the fact under its title: Executive  Directive  after
Board of Investigation-"Cancels Urgent Directive PE96  Get  Income  Up";  or
direct submission after  urgent  directive"As  requested  by  HCO  Exec  Sec
W./U.S. to augment her direct order Get Income  Up";  or  by  demand  for  a
directive-"As demanded by Ad Council  WW  in  their  cable  239  WW  Pass  a
directive increasing income."

DANGER FORMULA

The Danger Formula  applies  when  such  orders  bypass  those  responsible,
meaning at least an ethics investigation must occur to find who  was  asleep
if any.

However, the Founder or Guardian can issue an  urgent  directive  or  direct
order to any org and order the Ad Council of any org, as they  are  in  fact
seniors of that immediate org, without having to take ethics action  on  the
Ad Council WW or the senior Ad Council to that org. However  in  such  cases
Ad Council WW and the senior Ad Council are informed.

If, however, the Founder or Guardian have to do too  much  too  often,  they
step back upstairs and investigate the senior Ad  Councils.  This  has  been
the usual practice.

The Founder usually uses his  LRH  Comm,  and  the  Guardian  her  Assistant
Guardian or the LRH Comm in that area to effect orders, get data and  submit
to Ad Council.

A senior Ad Council uses its area representative in its  own  group  or  the
LRH Comm in the junior Ad Council to do the same thing.

In practice, one issues urgent directives when the situation  is  rough  and
simply demands a directive when things look like they will get rough.

Intervention by seniors is hard for juniors to cope with. The  best  defense
is don't develop bad situations that then require intervention and keep  all
stats up and the org expanding.

L. RON HUBBARD

Founder

LRH:jp.dk.gm

[Note: The paragraph under "Labeling Directives," which contained a
typographical error in the original issue, has been corrected per HCO PL 21
December 1966, CORRECTION TO HCO POLICY LETTER OF 17 NOVEMBER 1966,'ADMIN
KNOW-HOW, INTERVENTION.']

27



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 4 DECEMBER 1966

Remimeo

Admin Know-How Series 9

                                  EXPANSION

                              THEORY OF POLICY

It is not very hard to grasp  the  basic  principle  underlying  all  policy
letters and organization.

It is an empirical (observed and proven by observation)  fact  that  nothing
remains exactly  the  same  forever.  This  condition  is  foreign  to  this
universe. Things grow or they lessen. They cannot  apparently  maintain  the
same equilibrium or stability.

Thus things either expand or they contract. They  do  not  remain  level  in
this universe. Further, when something seeks to remain level and  unchanged,
it contracts.

Thus we have three actions and only three. First  is  expansion,  second  is
the effort to  remain  level  or  unchanged  and  third  is  contraction  or
lessening.

As nothing in this universe can remain exactly the  same,  then  the  second
action (level) above will become the third action  (lessen)  if  undisturbed
or not acted on by an outside  force.  Thus  actions  two  and  three  above
(level and lessen) are similar in potential and both will lessen.

This leaves expansion as the only positive action which tends  to  guarantee
survival,

The point of assumption in all policy letters is that we intend  to  survive
and intend so on all dynamics.

To survive, then, one must expand as the only safe condition of operation.

If one remains level,  one  tends  to  contract.  If  one  contracts,  one's
chances of survival diminish.

Therefore there is only one chance left and that, for an organization, is
expansion.

PRODUCT

To expand, any company needs a  demanded  product  and  will  and  skill  to
produce and deliver it. It can be a service or an item.

If a company has a demanded product  and  will  and  skill  to  produce  and
deliver it, it must organize to expand. If it does, it will survive.  If  it
organizes to stay level or seeks to grow smaller, it will perish.

This is easily observed in nations. Whenever one seeks to  remain  the  same
or to lessen itself, it usually perishes. It need not seek  only  to  expand
its borders. It can also expand  its  influence  and  service.  Indeed,  the
effort to expand borders in a nation without increasing  a  demand  for  its
influence and products is a primary cause of war. If a nation  expanded  the
demand for its influence and products, it would expand without war.  When  a
nation seeks to merely expand by force of  arms  and  does  not  expand  the
demand for its  products,  one  gets  a  dark  age  or  at  least  a  social
catastrophe.

28



Rome,  early  on,  was  in  great  demand  for  its  social  technology  and
manufacturing skill and only a cruel streak in her  made  her  wage  war  to
expand. Britain, for instance,  was  ready  to  welcome  Roman  baskets  and
pottery and art and had been  demanding  them  for  nearly  a  century  when
Caesar's vicious ambitions actually wrecked the smooth progress of  Rome  by
enforced expansion by arms in excess of the demand for Roman products.  This
was one Roman product nobody wanted-Caesar and his legions.

Psychiatry's product of further insanity was not in  demand  by  the  people
but by the state which sought to crush people or at least  hold  them  down.
So psychiatry expanded by government regulation, not by popular demand,  and
so at this  writing  stands  in  danger  of  complete  extinction,  for  its
influence  depends  utterly  on  "expanding"  into  the   legislatures   and
government treasuries and no expansion  whatever  of  any  demand  from  the
public and no product except slaughter.

The Roman Catholic Church once had a healing product,  by  actual  treatment
and by relics and miracles, and was  in  great  demand  by  the  public  and
eventually even the barbarians. But she began to fight progress  in  science
and knowledge, and her product turned  into  exported  ignorance  backed  by
autos-da-f6 (burning heretics) and  thus  ceased  to  expand  and  today  is
rapidly shrinking.

Buddhism, earlier than that, expanded continuously as it  never  sought  new
extension of territory other than  that  of  learning.  Buddhism  failed  in
India alone because its monks became  licentious,  ceased  to  deliver  true
teachings and were swept up, most likely, in  India  alone,  by  the  Muslim
conquest of that unhappy country sometime around the seventh century.

Britain of the 20th century actively sought to contract her empire  and  did
so to the tune of internal economic catastrophe.

SINGLE PRINCIPLE

Thus it should be obvious that contraction leads to death and  expansion  to
life, providing that one maintains a demand for  itself  and  the  will  and
skill to produce and deliver a product.

If, as ours is, the product  is  very  beneficial  and  if  we  continue  to
produce and deliver, the demand is assured. In this we  are  fortunate.  And
we are also fortunate that, try as they will, no squirrel is  ever  able  to
duplicate our product since one variation (that of changed brand)  leads  to
others; and they promptly have neither product nor  demand-that  observation
is itself empirical. No squirrel has lasted more than 2 or 3  years  in  the
past sixteen years. And there have  been  many.  That  they  squirrel  shows
enough bad faith to drive away the public the moment  the  public  hears  of
the original.

Thus, providing we maintain the will and skill to produce  and  deliver,  we
can expand, and proper expansion that will continue is possible.

All our policy then is built on EXPANSION.

It assumes we wish to survive.

And it stresses the production and delivery of a straight nonsquirrel
product.

It is calculated to ensure a continued and widening demand by ensuring  that
product remains good and beneficial.

The technology itself is complete, but it  expands  also  by  experience  of
administration of it and simplifying its presentation.

But to alter the basics of the technology will stop expansion because it  is
what we are producing, not what we are building.

We are building a better universe. It has not been a good universe  to  live
in so far but it can be.

29



Our punitive force is our  ethics  system,  and  it  exists  to  ensure  the
quality of the product and  to  prevent  the  blunting  of  demand  for  the
product.

INTERPRETATION OF POLICY

The organization then has all its policy rigged to expand.

It takes many things to ensure expansion.

Thus, when you are  interpreting  policy,  it  should  be  interpreted  only
against EXPANSION as the single factor governing it.

This  can  serve  to   clarify   questions   about   policy.   The   correct
interpretation  always  leads  to  expansion,  not  holding   a   level   or
contraction.

For example, policy bars the entrance of the healing field. This  is  solely
because there is too much trouble with the occupiers of that field and  only
outright war (with no demand) could solve them. This seems to be a brake  on
expansion. It is only a brake on expanding by war in the absence of  demand.
Therefore the right way to expand is to gradually build  up  general  public
demand, let experience by the public see that we heal and  when  the  demand
is there and howling for us, reinterpret the  policy  or  abolish  it  as  a
brake to expansion. As one can  only  expand  by  external  demand  for  the
product, if one seeks to expand in the absence of a specific demand for  the
product, one has war; and war  doesn't  lead  to  expansion  any  more  than
burning heretics and other brutalities expanded the Catholic movement.

So one interprets policy against proper expansion that is proper.

CORRECT EXPANSION

Expansion which when expanded can  hold  its  territory  without  effort  is
proper and correct expansion.

Hitler (like Caesar) did not "consolidate his conquered territory."  It  was
not possible to do so, not because he did not have  troops  but  because  he
didn't have a real  demand  for  German  technology  and  social  philosophy
before conquering. Thus Hitler lost his war and fascist Germany died. It  is
almost impossible to consolidate territory where one was not invited in,  in
the first place, and force had to be used in order to expand.

One can remove a real suppressive  by  force  to  ensure  demand  will  then
build, providing he does not seek to force the product  on  the  suppressive
and all those around the suppressive.

The suppressive, as an individual, can be removed by force because he is  an
anti-demand  factor  using  falsehood  and  lies  to  prevent  demand   from
occurring. But one, in removing the suppressive, has to be  sure  one's  own
product  and  delivery  are  still  correct  and  straight  and  in  no  way
suppressive of anything but suppressives.

Further, one must leave at least a crack in the  door  and  never  close  it
with a crash on anyone because a demand still may develop there.

The only way to start a full scale  revolution  is  totally  and  thoroughly
slam the door. One must always leave  a  crack  open.  The  suppressive  can
recant and apologize. The pauper can  by  certain  actions,  no  matter  how
improbable, secure service. Etc.

In short, use force only to shut down false anti-demand factors.  Yet  leave
the door at least a crack open  in  case  demand  without  duress  develops.
Never finally shut off a possible demand.

You can stimulate demand. You can create it. But you  may  only  comfortably
and properly expand into demand.

30



Removal of a suppressive only brings a potential appearance of  demand  from
the area he dominated. That potential, by some means, the best of which  are
good dissemination and service examples, must become demand before  one  can
truly occupy territory.

Thus areas taken purely by force of arms can never be held by force of  arms
in the absence of demand for  product  and  thus  demand  by  the  area  for
occupation and consolidation.

As we have a product that frees  in  an  ultimate  sense  and  de-aberrates,
there is of course an end to the game. But it is so far ahead,  embracing  a
whole universe, that it requires minimal consideration.

Expansion requires area to expand into. And we are in no danger  of  running
out of that.

If we were dependent as nations often think they are on  boundary  expansion
on one planet, or into one planet's  populations  as  companies  think  they
are, we would have brakes on expansion  due  to  territorial  or  population
limitations alone. But we are not likely to encounter such  barriers  for  a
period of time so long, we can consider our expansion potential as infinite-
and are the only organization that honestly can  so  consider.  We  are  not
conquering land in the government sense anyway.

OVEREXPANSION

All factors, then, in policy are rigged for expansion.

And this brings about a possibility one can be asked about, that of
overexpansion.

One can "overexpand" by  acquiring  too  much  territory  too  fast  without
knowing how to handle it. One can conquer  new  territory  as  fast  as  one
wants IF he knows how to handle the situation.

There are  several  ways  one  can  "overexpand."  They  all  boil  down  to
overextended administration lines in a single administrative unit.

In this, one must know the principle on which the org board  was  originally
conceived. It is that of Thetan- Mind- Body- Product.

If there is a thetan, a mind (organization potential, not  a  harmful  mass)
can be set up-a mind which  will  organize  a  body  which  will  produce  a
product.

If any one of these elements (Thetan- Mind- Body-Product) are missing,  then
an organization will fail.

Man is so aberrated all mental actions seem  to  him  to  be  reactive  mind
actions. But there has to be in organizations a  data  and  problem-solution
coordination unit in order to set up a body. (A thetan can do  this  without
a lot of mass, having his memory and perception and intelligence.)  We  have
then an Advisory Council to coordinate acquired data, recognize and  resolve
problems. Above it, there has to be a  thetan  somewhat  detached  from  it.
This may be a higher mind (Ad Council) operating as a director to the  lower
Ad Council.

The mind must operate to form a body. This body is the mest  (matter  energy
space and time) and staff of the organization.

This body must produce  a  product.  This  in  the  HGC,  for  instance,  is
resolved cases.

Any smaller part of the  whole  organization  is  also  a  Thetan-Mind-Body-
Product. Often the executive is  both  thetan  and  mind,  but  as  soon  as
traffic  gets  too  heavy,  he  must  form  a  separate  mind  such  as   an
administrative committee or a personal staff to

31



compose the mind. In such a smaller unit than the whole org there is  yet  a
body (the staff and mest  of  the  unit).  And  there  must  be  a  specific
product.  The  product  sometimes  is  absent  and   sometimes   incorrectly
assigned, but if so the unit won't function.

Overexpansion occurs only when one tries to handle the  larger  volume  with
the same Thetan-M ind- Body- Product numbers one had before.

This tells  you  why  single  practitioners  can't  expand  their  practices
without overwork.

It also tells you why some executives are upset at the idea of expansion  as
they (lacking organizational insight) see it solely as overwork. They  don't
see  that  when  you  expand  volume  and  traffic  you  must   expand   the
organization.

There is a wrong way and a right way to expand an organization.

The wrong way is to add staff and  facilities  endlessly  (like  governments
tend to do) without adding to the organization itself.

If you had huge affluences  occurring  steadily,  you  would  soon  go  into
collapse if you did not expand also by organizational units or branches.

In taking over a new field or area of  operation,  for  instance,  one  errs
when he adds that traffic to the basic organization's traffic.

In the presence of huge escalating affluences,  one  must  analyze  what  is
causing them and reinforce them. BUT one must also  see  what  new  KIND  of
traffic is being added.

If one finds a new KIND of traffic, then one sets up a suborganization  unit
to handle it which is complete in itself.

If we are now getting "businessmen"  in  quantity,  we  set  up,  under  the
control of the original organization

1.    A thetan to supervise it

2.    A mind to coordinate it

3.    A body to handle it, and

4.    A new product called "released /cleared businessmen."

If we then were to find the new unit  (struggling  to  form  itself  into  7
divisions on its own by now) gets a lot of demand and statistics on  an  Org
Exec Course, it  must  cease  to  gratuitously  coach  it  and  set  up  its
"Business Academy" teaching the Org Exec Course as  Dept  10,  appointing  a
thetan, mind, body and achieving a product  "trained  businessmen"  and  see
that units to support it occur in other divisions  and  an  ethics  unit  to
prevent blunting of demand and re-aberration.

This can even go backwards. One sets up in Dissem a  unit  called  "Business
Course Project Promotion Section" and stimulates the demand  and  then  when
it is there puts in its Department 10.

Soon all seven divisions have extra units to care for this new action,  each
unit with a Thetan-Mind-Body-Product. The products are  different  but  they
all add up to "trained  businessmen,"  whether  they  are  creating  demand,
financing or servicing.

So overexpansion is only underorganization in the main.

One can of course "overexpand" by attempted  servicing  in  the  absence  of
demand causing, thus, losses in finance. In such a case only concentrate  on
creating new demand, not on servicing old demands. This, by the way, is  the
most common error in

32



organizations of ours. They shrink because they are not creating new  demand
and concentrate only on creating demand in those  already  demanding  (which
is lazy-easy).

New demand is expensive  to  develop.  Thus  you  often  see  finance  units
frowning on "new demand" expenses and cutting down magazines  in  number  of
issue, not buying new mail lists, etc.

To start a new suborganization, one  sets  up  on  the  basis  of  potential
demand, sets up ethics to prevent demand-blunting or  bad  internal  service
or performance, works on increasing the demand, introduces service, sets  up
external  ethics  to  prevent  blunted  demand,  increases  the  demand   by
dissemination to new and old areas of  demand,  increases  service,  ensures
product, increases the organization (not just staff),  increases  demand  in
new and old areas, stiffens up ethics, improves  service  facilities,  etc.,
etc.

It's continuous expansion of volume, continuous expansion  of  organization,
continuous expansion of demand. Where one lags behind the others,  one  gets
trouble.

It is almost impossible to run a nonexpanding organization  with  ease.  One
gets into financial crises, staff troubles and overwork. Decay has  set  in.
And fighting it is sure to overwork an executive. The easiest course  is  to
expand. Then one has the help.

Summary: In understanding policy one must understand its  key  and  that  is
expansion.

Only  a  Scientology  organization  has  an  unlimited  horizon.   But   any
organization must expand to survive.

The only ways you can "overexpand" are to fail to  expand  with  new  demand
and keep pace with it  evenly  with  organizational  expansion  as  well  as
numbers.

It is easier to expand than to "remain level."

Organizations and units which do not expand cannot stay level and so
contract.

Org executives and personnel are overworked only when they cannot afford  to
expand and thus cannot get the help  they  need  to  do  the  work-quite  in
addition  to  there  being  more  problems  made  by  contraction  than   by
expansion.

Scientology organizations are designed for expansion.

Expansion requires an expansion of all factors involved; and when  something
expands out of pace with the rest which is not expanding at the  same  rate,
trouble is caused.

Uniform expansion of demand, ethics and service into new  fields  and  areas
as well as old areas of operation, are needful to trouble-free activities.

Each member and unit of an organization has a product which,  if  different,
contributes to the whole product of an organization,

The ultimate product of Scientology is a universe that is decent  and  happy
to live in, not degenerated and made miserable by  suppressives  as  it  has
been. This is accomplished by  the  de-aberration  of  individuals  and  the
prevention of blunted demand and re-aberration by suppressives, and this  is
the method of expansion.

If in these early days of Scientology we have any  troubles,  they  occurred
by an earlier imbalance of expansion.

33



Demand was created without handling suppressives,  which  unequal  expansion
gave us a backlog of unhandled ethics in the society.  All  we  need  do  is
catch up our backlog  in  those  organizational  functions  which  were  not
expanded when they should have been and all will go smoothly.

Any time you do  not  expand  uniformly  with  all  functions,  you  get  an
appearance of overexpansion by some functions. The best  answer  is  not  to
cancel the expanded functions which overreached, but to  catch  them  up  by
expanding the ones one neglected in support. You will have trouble  wherever
you cut back an  expansion  as  that  is  contraction.  The  answer,  within
reason, is to advance all else to catch up to  the  expanded  portion  while
still, more calmly, expanding it.

L. RON HUBBARD

Founder

LRH:jp.rd.gm

34



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 24 DECEMBER 1966

General Non-

Remimeo Execs SH Org Exec

Course

Admin Know-How Series 10

HOW TO PROGRAM AN ORG

SAINT HILL PROGRAMS

In past years we have had many problems resulting in programs as follows:

The sequence of major programs at Saint Hill:

To provide a home for LRH and family in Commonwealth  area  so  Commonwealth
area could be organized and made self-supporting.

To provide admin facilities for LRH in Commonwealth area.

To  make  Commonwealth  area  self-supporting  regardless  of  US  funds  or
customers. (Not yet resolved.)

To train technical and admin staffs for Commonwealth orgs.

To make Commonwealth outer orgs run on their income without their using  all
the bills sums owed SH or Ron as part of their operating funds.

To find financial support for SH activities resulting  in  the  SHSBC  which
also accomplished the next above.

To handle Commonwealth activities  and  organizations  and  also  handle  US
activities. (Solved by telex and OIC and later the Exec Div WW.)

To establish SH general broad promotion. (Solved by The Auditor.)

To provide facilities for administering critical  high-level  tech  such  as
Power Processes. (Solved by SH HGC.)

To organize SH  so  it  could  be  administered  (made  needful  by  '63-'64
collapse of multiple corporative setup). (Solved by 7 div  system  completed
by end of 1965.)

To refine the Qual Div to prevent all "failed cases," train staff and
improve tech.

To get reports of tax,  etc.,  off  continual  crash  programs.  (Solved  by
Treasurer  but  incomplete  of  any  guarantee   of   chartered   accountant
compliance.)

To get field auditors to cooperate and stop conflicts with orgs. (FSM
program.)

To refine the Tech Div. (Finished about August 1966.)

To get in smooth operation an ethics system.

To operate the Clearing Course and to assembly  line  Clears.  (Still  under
refinement but more or less complete.)

To establish and operate OT Course. (Just now under development.)

35



To beat  back  continuous  attacks  by  suppressives  in  the  3rd  and  4th
dynamics. (Solved by establishing Intelligence Branch.)

To train up staffs at SH and in outer orgs by Staff Status and Org Exec
Course.

To improve the cash-bills ratios of orgs.

To safeguard income once earned by better financial planning.

To reform Ad Councils into representative  bodies  (now  complete  with  the
formation of an Executive Council).

To assemble all Scientology materials. (Flopped by reason  of  noncompliance
but lately reinstituted.)

Dictionary Project to prevent misunderstood words. (In  sporadic  and  jerky
action to this day.)

To handle legal situations which built  up  by  noncompliance  by  attorneys
internal and external in org. (Under  solution  by  forming  Guardian  Legal
Branch.)

To improve and maintain affluences. (Just begun.)

To help Scientology dissemination and attack more broadly  to  prevent  such
quantities of legal defense. (OT activities program just begun.)

To safeguard, continue and expand all Scientology orgs. (Worked  on  a  bit,
not really concentrated on except for cash-bills and staff status.)

General improvement of finances. (OT activites.)

Buildings for Scientology orgs. (OT activities.)

To establish better audio-visio educational facilities. (Barely begun.)

These have been and are the major program steps which have been  implemented
or are under development at Saint Hill since 1959 and forward to the end  of
1966.

Some of the years covered acquired names such as

1965 - The Year of Organization. 1966 - The Year of the Clears. 1967 -  will
probably be the Year of the OTs.

It will be noted that each of these programs solved a self-evident problem.

It must be realized then that these problems did exist.

If the problems exist again, remember there was already a  solution  program
and usually it has only been dropped and the problem reappeared  because  it
had been dropped. The proper directive action is to reimplement and  improve
the solution which is to say, in the case of SH, the  carrying  out  of  the
successful programs noted above.

Ad Councils are always advancing new programs and often it is  only  an  old
program dropped out that needs reinstituting, not a new solution.  Certainly
an old problem has cropped up again.

36



There have been other programs of course. Many solutions  to  old  problems,
and of major  importance,  are  found  in  policy  letters.  Some  programs,
although necessary, have never been successfully implemented. There was  the
motion picture program but it is dogged by technical bugs  and  became  part
of the audio-visio program now being attempted. There has been  the  rewrite
of all books program but I've been too overworked to attempt it.

Other future, self-evident programs will come into  being.  They  will  only
fail if earlier programs, dropped  out  or  not  given  reorganization  when
needed, bring old problems into view by  exposing  them.  All  the  problems
underlying the program solutions above  still  potentially  exist,  held  in
abeyance only by the programs.

The best way to form programs is to isolate actual problems at any level  of
operation and solve them either by removing elements that make  them  or  by
instituting a program. Sensible planning tends toward both actions.

An unsuccessful program usually will  be  found  to  be  solving  the  wrong
problem or is itself an improper solution to an actual problem.

If you want to establish the validity of a new program offered  by  someone,
ask him what problem it is seeking  to  solve.  You  can  then  see  if  you
already have a solution to the problem, but most often you will see that  no
clarified idea of the problem  existed  and  so  the  solution  is  poor  or
inadequate.

The common problem of an org is not the development of programs but  failure
to execute existing ones.

Another difficulty with orgs is that they often alter the  existing  program
so that it no longer resolves the problem the program was set up to  handle.
A current example is magazines. Magazines exist  to  solve  the  problem  of
public unawareness of an org. An org has no space unless it is  sending  out
anchor points to make it. And it is  in  nonexistence  for  its  Scientology
public unless it mails magazines regularly. Magazines do  not  develop  much
new public-that is another, largely unsolved, problem.  Magazines  exist  to
continue the awareness of the existing  Scientology  public.  Now  as  these
people are already aware of Scientology, the  awareness  one  is  trying  to
develop  is  that  of  the  org  and  its  services.  Recently,  continental
magazines  began  to  issue  only  Scientology  data.  The  ads  making  the
Scientology public aware of the org were toned  down  and  omitted  and  the
cash-bills ratio worsened in orgs. The  orgs  started  toward  nonexistence.
Significantly, the trend was begun by a someone who did not  like  orgs  but
was in favor of Scientology. Issue Authority erred in  not  looking  at  old
magazines and comparing them  to  the  current  layout.  There  was  a  vast
difference. No ads in current ones. The program had been altered.

Artists are taught to be "original" and to  alter.  Yet  successful  artists
painted the same picture their whole  lives  under  different  names.  These
just seemed new.

To change, alter or drop a program one must know what the program was  there
to solve. Just change for change's  sake  is  mere  aberration  (making  the
lines crooked).

It's a good exercise for a senior executive to list  the  problems  the  org
really does have. To know the programs of an org that are in is to see  what
problems an org would have if they were dropped.

It's healthy to revert a program now and then by meticulously examining  how
it was originally when it was very successful and then put it back  the  way
it was originally. This is done not by adjusting lines  but  by  looking  up
old magazines, old policy, old despatches and issue pieces, even old  tapes.
What did it used to consist of? If it is no longer successful

a.    The program was altered or dropped and

b.    The org will have a problem it once had long ago, or

37



C.    (Rare) the causes of the problem have been removed and the problem no
longer exists.

There's lots of trial and error in developing a program. That's why any  new
program should only be a "special project" for a while,  off  the  org  main
lines really, under special management. If a  "special  project"  starts  to
show up well in finance (and only in finance), then one  should  include  it
"in" with its new staff as an org standard project.

To run new programs in on existing lines is to disturb (by  distraction  and
staff overload) existing programs, and even if good, the  new  program  will
fail and damage as well existing programs.

Provide, then, staff and money to  pioneer  a  new  program  as  a  "special
project." If you don't have money or staff to do this,  you  would  do  far,
far better simply looking over the problems the org faces  and  get  in  the
old programs that handled them. These are known winners  and  don't  forget,
they cost a lot to find and prove as the thing to do. And they took  a  long
time.

Take the Central Files-Letter Reg setup in orgs. That's a standard  program.
Developed in London and D.C. in the mid 50s. If you dropped it out,  an  org
would fail. The problem is "how to achieve special individual  contact  with
existing clientele and maintain existing already  developed  business."  One
large firm, I was told the other day, that has put in our 7 division  system
was stunned to  find  they  had  never  contacted  their  existing  business
clientele. They only had done business with new clientele.  This  cost  them
perhaps 200,000 sales a year! They promptly put in our  CF-Letter  Registrar
system with a vengeance.

In their case (as in a forming or reorganized org) they weren't  even  aware
of the problem and so had no program for it.

It is often the case that one can develop a program that  removes  the  need
of some other program. If one removes the factors  that  make  the  problem,
one can dispense with the program that solves it. But this is so rare it  is
nonhuman in most instances.

For instance, doctors are a public solution to the  problem  of  human  body
illness. If one removed this problem, one could remove the "doctor  program"
safely. That's why doctors sometimes fight us. We are thought to be  working
to remove the problem to which they are a program. One would  have  to  have
more than a better cure. One  would  have  to  remove  in  the  4th  dynamic
(mankind) the causes of illness. These would not be what people  think  they
are as the problem  persists  and  so  does  the  "doctor  program"  in  the
society. It can't be the right problem. Only enough is known of  the  causes
of illness to make the problem  appear  to  be  handled.  Actually  the  bad
statistic of ill people is rising. We have entered  the  field  in  research
only far enough to know that suppressives  make  people  ill  but  that's  a
sufficient departure to make it an ethics problem, not one in treatment!  By
extension of this  theory,  one  might  find  this  problem  not  caused  by
Pasteur's germs but by suppressive groups. In that case one  would  increase
ethics programs. Eventually, if this solved it, the "doctor  program"  would
be diminished as no longer the only solution.

The above is not a statement of intention or a plan. It  is  an  example  of
how an old standard program can become less important. Note that  one  would
have to (a) state the problem better than it had been  stated,  (b)  isolate
causes of the real problem, (c) institute  a  "special  project"  to  handle
those causes, (d) see if the problem was now better handled, (e) abandon  it
if it didn't handle the problem, or (f) make it a  standard  program  if  it
did prove effective, (g) diminish the old program.

So just dropping a proven program (without going at it as above  [a]  to  [f
1) can be a catastrophe as it can let in an old  problem  when  one  already
has quite enough problems already.

Abandoned programs that were successful are  currently  the  main  cause  of
orgs being in any difficulty.

38



You can always make an org run better by studying  old  successful  programs
and getting them back in.

If you were to take the above list at Saint  Hill,  the  major  SH  programs
since 1959, and simply revert them (make them more like  the  original)  and
reinforce them, income would probably double.

If we abandoned as few as five of these, the SH org would undoubtedly
collapse.

If we added six new programs  directly  into  the  org  without  seeing  the
problem to be solved, we could distract staff  to  a  point  where  the  old
standard programs would suffer and the org would collapse.

Sometimes, even in our  orgs,  we  enter  new  arbitraries  which  make  new
problems we don't need. Those are the sources  we  can  do  without.  If  we
didn't routinely abolish such org-generated problems, we would fade away  in
a year.

Therefore we cherish and forward the existing programs  we  have  and  study
them continually to be sure they don't "go out."

This is not a list of the problems faced at Saint Hill;  it  is  a  list  of
solutions. For these  programs  may  accidentally  be  solving  problems  we
cannot yet clearly state.

This is not a list of all major programs in Scientology. These are found  in
the policy letters of past years and particularly 1965.

This is a list of the major SH programs for use by SH executives and  as  an
illustration to others  on  how  to  program  and  to  show  them  that,  as
Scientologists, we use our knowledge of the mechanics of life, problems  and
solutions to govern programs.

If all the problems we faced were only  ours,  we  could  of  course  simply
audit them out. But we exist in a 3rd and 4th dynamic which  is  not  merely
aberrated  but  quite  batty.  This  thrusts  problems   on   us   (finance,
international ignorance and intolerance, religious  and  psychiatric  cults,
suppressive governments, retarded or misused scientific technology, lack  of
human dignity and a host of other factors).

We exist, therefore, in a  rather  madly  tossing  sea,  beset  by  numerous
countercurrents.

As we grow, we can remove vicious causes that make  our  problems  problems.
Only then can we begin to drop certain programs as the problems  will  cease
to exist. But at this writing those problems do exist and  holding  them  in
check are numerous solutions we call programs.

Where one of our standard programs fails through  lack  of  recognition,  we
then see a problem charging in on us demanding crash  programing  by  higher
executives.

When we let uninformed or worse people put in new arbitraries  or  solutions
that solve no problem, we disturb old programs and soon have  heavy  trouble
through unnecessary programing. (Watching a  new  inexperienced  Ad  Council
propose "programs" is a  painful  experience  to  a  trained  and  effective
executive. These proposed measures look silly because they confront no  real
problems of the org and are dangerous because they  will  distract  the  org
from correct existing programs of which the new Ad Council seems  blissfully
unaware.)

When an org doesn't know its programs, it can get pretty  silly  and  deeply
in trouble. If it also knows its problems, it is fortunate.

But any Scientology org is rich in programs already proven  and  tested  and
in exact drill. If it just keeps  these  going,  it  will  win  even  if  it
doesn't see the problems.

39



As it wins, the org expands, can  afford  more  assistance,  is  less  under
duress. Then it can begin to examine the problems themselves (still  keeping
the solution as a program) and possibly remove some of  the  causes  of  the
actual problem. Only when the problem is gone can one drop a program.

A Scientology org is best fitted to do this as its staff is  going  up  tone
by processing and is  more  and  more  able  to  confront  and  see  source.
Therefore it eventually can remove the causes of its problems since  it  can
(a) see the problem and (b) see the bad sources which make the problem,

Until it can see, it is not safe to drop any of the solutions. And  as  orgs
are a channel or a way in themselves, they always will have a bottom  strata
of people who cannot yet see the problems and so need explicit  programs  to
follow. As the lower strata moves up, a  new  lower  strata,  by  expansion,
takes its place so there is no real end to  programs  until  the  day  comes
when the universe is sane.

And that's not tomorrow or even the day after.

But we are making steady, relentless  progress  in  that  direction.  Mainly
because of our programs, well applied.

L. RON HUBBARD

Founder

LRH:jp.rd.gm

40



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            14CO POLICY LETTER OF 24 DECEMBER 1966

General     Issue 11

      Non-Remimeo      CORRECTION AND ADDITION

Execs SH

Org Exec Course

Admin Know-How Series 11

      HOW TO PROGRAM AN ORG

      CORRECTIONS AND ADDITION

      SEQUENCE OF PROGRAMS CORRECTION

The sixth SH program from the top on page one  states,  "To  find  financial
support for SH activities resulting in the  SHSBC  which  also  accomplished
the next above." This does not refer to "next above" but to two  above,  "To
train technical and admin staffs for  Commonwealth  orgs."  The  Saint  Hill
Special Briefing Course was founded (a) to train tech and admin  staffs  for
Commonwealth orgs and (b) was found to be the solvency factor of Saint  Hill
which was being looked for.

"Next above," "To make Commonwealth orgs run on their income  without  using
all the bills sums owed SH or Ron as part  of  their  operating  funds"  has
only partially been solved and  the  SHSBC  was  not  founded  to  solve  it
although  it  helped.  The  7  div  system  began  to  solve  it  (financial
independence of outer orgs) but only where a good Qual Div was put in  first
and all area failed or overrun cases were picked  up.  It  is  notable  that
Sydney and Adelaide, reported by Auckland to have put in no  Qual  Div  even
after 2 years of urging, were low orgs on the totem pole.  Others  that  did
get in a Qual Div and pick up their failed cases and overruns improved  very
markedly. So the solution to solvent  outer  orgs  that  could  run  without
using SH or Ron's income lay in  (a)  establishing  a  fine  Qual  Div,  (b)
picking up their area's "failed cases" and also repairing all overruns,  (c)
training their staffs on tech and admin in the new Qual and (d)  putting  in
a fine Tech Div. Those that really did that are  going  very  well.  Sydney,
which butchered cases once by overrun R2-12, evidently completely  neglected
the program and remains insolvent.

ADDITION

To make a simpler statement of what is a program, the following is offered:

1.    The org has a problem relating to its function and survival.

2.    Unless the problem is solved, the org will not do well and may even
go under.

3.    The solution is actually an org activity or drill. We call this a
PROGRAM.

4.    To find and establish a program, one conceives of a solution and  sets
it up independent of org lines with its own staff and finance as  a  SPECIAL
PROJECT.

5.    When a special  project  is  seen  to  be  effective  or,  especially,
profitable, it is then put into the org lines as worked out in the  "special
project," bringing its own staff with it.

6.    The usual place to carry a special project is under the Office of  LRH
or the Office of the HCO Exec Sec or Office of the Org  Exec  Sec.  Programs
go in their appropriate departments and divisions, one to six, not seven.

41



OVERHAULING A PROJECT

When a program goes bad,  gets  altered  to  a  point  of  unworkability  or
carelessly conducted or is dropped without orders to do so, two  things  may
happen.

1.    The Exec Sec (or LRH, Guardian or Asst  Guardian  or  LRH  Comm)  over
that division puts the executives which should have seen to the  program  in
DANGER condition and personally pushes to get  the  program  back  in  as  a
program.

2.    If this fails, the Exec Sec (or LRH, the Guardian or Asst Guardian  or
the LRH Comm) hauls the whole program into his own office as though it  were
a new special project, gets it personnel and finance and sets it all up  and
then gives it over to its correct dept and division.

The second step comes about when one finds any noncompliance  in  doing  (1)
above. As a Danger condition was already set up and the Exec Sec  (or  other
senior) is handling it on a bypass already,  if  one  still  can't  get  the
program restarted, there is no other action one can take  than  pulling  the
whole thing into one's own office. For sure  somebody  has  a  foot  on  it.
Although we can try to find WHO has, this is no reason to continue to  stall
the program. After a Danger condition on a program has existed for  a  while
with no change of activity, one is wasting one's time to keep pushing  on  a
via. The easier course is simply to say, "As Address has been in Danger  for
some time and still continues to goof, 1, the  HCO  Exec  Sec,  hereby  take
Address into my office in Division 7 where I will personally  straighten  it
out and meanwhile the Ad Council is to nominate for the Exec Council  a  new
HCO Area Sec."

In actual operation-I often do  (1)  above-call  a  Danger  condition  on  a
program that is not functioning, handle it personally and use ethics  action
on those bypassed.

Sometimes when (1) doesn't work, I realize there is interference  still  and
haul the whole section into my office as a function of  my  office.  It  may
stay there quite a while. Then  I  will  put  it  elsewhere  as  a  complete
section transfer. Sometimes after the transfer  I  again  have  to  haul  it
back. Usually that's because it went into the wrong place  in  the  org.  If
you put a section in the wrong dept or division,  it  just  won't  function.
The exception is the Exec Div and anything can be put in there for a while.

The common error in (2) is to forget one has it and forget  to  transfer  it
when formed up properly. If one looks over what  hats  he  is  wearing,  one
usually finds a program or two he has been handling and which  he  ought  to
finish up in final form and put into the org proper.

In theory, any exec or even an in-charge can do (1) and (2) above.

If (1) doesn't work then do (2). The main mistake is to forget  to  complete
the action of (2) by putting the program  back  in  place  in  the  org.  To
prevent that from happening, when you do (2), change  it  also  on  the  org
board. Then it stays in view. Otherwise, one  forgets  and  soon  begins  to
feel overworked.

Almost any executive is holding on to a special project or  two  or  even  a
program. So one should routinely look over one's own hats and  refind  these
and complete cycle on them.

L. RON HUBBARD

Founder

LRH:jp.rd.gm

42



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 DECEMBER 1966

Remimeo

Admin Know-How Series 12

PTS SECTIONS, PERSONNEL AND EXECS

An org has certain sections, units, personnel and executives who go  PTS  to
suppressive elements in the society.

If one knows this, one becomes less puzzled by  noncompliances  and  trouble
in those quarters. One can also do something effective if one realizes why.

Legal, accounts and construction and lesser units tend to go PTS very
easily.

A "P.T.S." is a Potential  Trouble  Source  by  reason  of  contact  with  a
suppressive person or group.

Suppression is "a harmful intention  or  action  against  which  one  cannot
fight  back."  Thus  when  one  can  do  anything  about  it,  it  is   less
suppressive.

Thus Legal goes PTS being in contact with SP  courts  and  with  SP  or  PTS
attorney firms as well  as  confronting  suppressives  who  are  seeking  to
injure the org through various suppressive actions.

Accounts goes PTS through various tax and government supervision
suppressions.

An  Estate  Branch  listening  to  Town  and  Country  Planning  or   zoning
suppressives tends to go PTS.

In  a  standard  issue  corporation  the  labor  relations  contact   point,
continually messed up by labor agitators who could do  the  company  in  and
regulations protecting such, tends to go PTS.

An Ethics Officer may become PTS.

The Dead File Unit may go PTS on all the entheta letters.

As such PTS personnel impinge on top executives, these can also go  PTS  and
the org gets harmed to say the least.

HANDLING

As one cannot easily disconnect  from  suppressive  society  points  without
leaving the society, it remains that an executive must handle,  if  not  the
SP social groups, at least the situation developing from them and  into  the
org.

Ideally one removes the SPs in the social groups.  But  where  that  is  not
possible one can do several things:

a.    Limit the number of org personnel such groups contact.

b.    Give such org personnel as do contact such suppressive elements S &
Ds occasionally.

C.    Change such personnel frequently.

43



d.    Develop a system to restrain the SP from easily influencing such org
personnel as may remain in contact.

e.    Work gradually but steadily into a  position  to  be  able  to  remove
suppressives from the social groups  in  question,  such  as  becoming  more
influential as an org, suing, exposing, public education and other means.

INDICATORS

The first indicator an org executive has of a unit  or  staff  member  going
PTS is noncompliance. Such personnel are being overwhelmed in  various  ways
by the SP social groups and have no energy left to  undertake  their  duties
or forward org programs.

Another indicator is the amount of illness and lack of case progress on  the
part of such PTS staff members.

A third indicator is an executive getting the hat of  such  a  personnel  on
his own plate.

An executive who doesn't notice such indicators and act  is  being  in  turn
PTS, or simply isn't of executive caliber.

METHODS OF BALKING

There are several methods by which a staff member acting as an  org  contact
point in connection with suppressives can balk the agents of SP groups.

One is to  always  tape-record  visibly  whatever  the  agent  from  such  a
suppressive group says. "Ah. Mr. Figuretwist of the Tax Division? Good.  Now
wait a moment so I can record whatever you say. Good.  It's  now  recording.
Go ahead." We used to handle the Internal "Revenue" Service of the  US  this
way quite successfully. The  org  contact  point  always  stopping  the  IRS
inspector they sent around, turning on a portable  recorder  and  then,  and
not until then, letting the man speak. Quite effective. That  org  only  got
into tax trouble when  it  stopped  doing  this.  After  the  recording  was
dropped out as drill the SP utterances of IRS agents were  in  full  cry  at
the staff and they went PTS and began to make crazy errors  and  ignore  org
orders re tax.

Any time such agents come around, they try to get as many staff into  it  as
possible. And yap and yap and threaten and enturbulate. One  must  put  them
in Coventry (silence treatment) from staff other  than  the  contact  point.
Staff members of a unit that could go  PTS  must  be  ordered  to  walk  off
without a word whenever such an  agent  shows  up.  No  "bull  sessions"  or
arguments with such a person. The staff personnel who handles  should  point
at the agent if other staff is about and say some key word like "This  is  a
government man" at which all other staff in  the  unit  turns  its  back  or
pointedly walks off. If you do this, such  agents  can't  take  offense  but
they  get  very  uneasy,  transact  quickly,  forget  their  mission  to  be
enturbulative and go away soon. Don't ever think politeness will  help  you.
Tipping one's hat to snakes never stopped a person getting  bitten.  Walking
off has.

Staffs are so "reasonable" they think these  SP  group  representatives  are
there for necessary purposes or serve some purpose, or can be reasoned with-
all of which is nonsense.

There are no good reporters. There  are  no  good  government  or  SP  group
agents. The longer you try to be nice, the worse off you will  be.  And  the
sooner one learns this, the happier he will be.

Some staff member in such contact points in the org should be the  only  one
who handles and all other staff should be given chits for talking to such  a
person.

This limits the area of enturbulation. The handling staff member can become

44



expert. But even so, watch for bad indicators in that staff member, and  the
moment they show up, change the contact point.

Never give such persons access to persons high up in the org-or  unit.  Turn
such over to special personnel who can get the business over  with  at  once
and get the agent off the premises soon.

If you see a manager snapping terminals with such agents,  transfer  him  to
another post in the org. Unless you do so, he'll soon cease  complying  with
policy and will soon have the place falling apart.

When such agents act or sound very suppressive, get them investigated,  find
the scandal and attack. It is a fortunate truth that such people  also  have
crimes in their background that can be found. Find and expose them.

SPs are at war. Pleasant conduct,  mean  conduct,  any  conduct  at  all  is
simply more war. So wage the back action as a battle.

In all the history of Scientology  no  interviewing  reporter  ever  helped.
They all meant the worst when they acted their best and we are always  sorry
ever to have spoken. Even if the reporter is all right, his newspaper  isn't
and will twist his story. We  have  done  best  when  we  have  blocked  off
reporters and worst when we've been nice. So the moral is, a person from  an
SP group will eventually make an org or some part of it  PTS  regardless  of
the agent's conduct.

These words may seem harsh and unreasonable, yet truth  is  truth  and  only
when we ignore it do we get fouled up. Agents from SP  groups  lead  to  PTS
staff, units or sections, leads to noncompliance, leads to a mess.

It isn't just imagination that SPs  attack  Scientology.  The  evidence  has
been around in plenty for 16 years.

We began to prosper the day we cut public SPs' correspondence  off  the  org
lines and sent it to dead file. Our executives  began  to  function,  policy
began to be followed, and we began to grow.

So we'll attain new expansion just by applying what is in this policy
letter.

I personally find such agents rather  pitiful  in  their  attempts  to  make
trouble. I think the contemporary attempts to upset us  and  accusations  of
things we never do, quite prove the fact such mean  us  no  good.  But  many
staff and executives try desperately to be nice to them.

Handle the business they present  as  effectively  as  possible  on  special
channels. Don't be nice. Limit their reach. And have less noncompliance  and
a far more effective and happier org.  After  all,  real  suppressives  only
constitute about 21/2 percent of the total population. Why spend  more  than
21/2 percent of your time on them?

The whole stunt is realizing that certain  groups  are  SP  and  recognizing
them and then handling them.

Be alert and stay alive. It won't always be this way.

L. RON HUBBARD

Founder

LRH:jp.rd.gm

45



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 FEBRUARY 1967

Org Exec

      Course

Admin Know-How Series 13

THE RESPONSIBILITIES OF LEADERS

A few comments on POWER, being or working close to or under a  power,  which
is to say a leader or one who exerts wide primary influence on  the  affairs
of men.

I have written it this way, using two actual people to give  an  example  of
magnitude enough to interest and to furnish some  pleasant  reading.  And  I
used a military sphere so it could be seen clearly without restimulation  of
admin problems.

The book referenced is a fantastically able book by the way.

THE MISTAKES OF SIMON BOLIVAR

AND MANUELA SAENZ

Reference: The book entitled:

                       The Four Seasons of Manuela by

                      Victor W. von Hagen, a biography-

A Mayflower Dell Paperback. Oct. 1966. 6/-

Simon Bolivar was the liberator of South America from the yoke of Spain.

Manuela Saenz was the liberatress and consort.

Their acts and fates are well recorded in this moving biography.

But aside from any purely dramatic value, the book lays bare  and  motivates
various actions of great interest to those who  lead,  who  support  or  are
near leaders.

Simon Bolivar was a very strong character. He was one of the richest men  in
South America. He had real personal ability given to only a handful  on  the
planet. He was a military commander without peer in history.  Why  he  would
fail and die an exile to be later deified is thus of  great  interest.  What
mistakes did he make?

Manuela Saenz was a brilliant, beautiful and  able  woman.  She  was  loyal,
devoted,  quite  comparable  to  Bolivar,  far  above  the  cut  of  average
humanoids. Why then did she live a vilified outcast,  receive  such  violent
social rejection and die of poverty and  remain  unknown  to  history?  What
mistakes did she make?

BOLIVAR'S ERRORS

The freeing of things is the reverse, unstated dramatization  (the  opposite
side of the coin) to the slavery enjoined by the mechanisms of the mind.

Unless there is something to free men into, the act of freeing is  simply  a
protest of slavery. And as no humanoid is free while aberrated in  the  body
cycle, it is of course a gesture to free him politically  as  it  frees  him
only into the  anarchy  of  dramatizing  his  aberrations  with  NO  control
whatever  and  without  something   to   fight   exterior;   and   with   no
exteriorization of his interest, he simply goes mad noisily or quietly,

46



Once as great a wrong as depraving  beings  has  been  done,  there  is,  of
course, no freedom short of freeing one from  the  depravity  itself  or  at
least from its most obvious influences in the society. In short,  one  would
have to de-aberrate a man before his whole social  structure  could  be  de-
aberrated.

If one lacked the whole  ability  to  free  Man  wholly  from  his  reactive
patterns, then one could free Man from their restimulators  in  the  society
at least. If one had the whole of  the  data  (but  lacked  the  Scientology
tech), one would simply use reactive patterns to blow the old society  apart
and then pick up the pieces neatly in a new pattern. If one had  no  inkling
of how reactive one can get  (and  Bolivar,  of  course,  had  no  knowledge
whatever in  that  field),  there  yet  remained  a  workable  formula  used
"instinctively" by most successful practical political leaders:

If you free a society from those things you see wrong with it and use  force
to demand it do what is right, and if you carry forward  with  decision  and
thoroughness,  and  without  continual  temporizing,   you   can,   in   the
applications of your charm and gifts, bring about a great  political  reform
or improve a failing country.

So Bolivar's first error, most consistent it was, too, was contained in  the
vital words "you see" in the above paragraph. He didn't look and  he  didn't
even listen to sound intelligence reports. He was  so  sure  he  could  glow
things right or fight things right or  charm  things  right  that  he  never
looked for anything wrong to correct until it was too late. This is the  ne-
plus-ultra of personal confidence, amounting to  supreme  vanity.  "When  he
appeared it would all come right" was not only  his  belief  but  his  basic
philosophy. So the first time it didn't work, he collapsed. All  his  skills
and charm were channeled into this one test. Only that could he observe.

Not to compare with Bolivar but to show my understanding of this:

I once had a similar one. "I would keep going as long as I could and when  I
was stopped I would then die." This was a solution mild enough to state  and
really hard to understand until you had  an  inkling  of  what  I  meant  by
keeping going. Meteors keep going-very, very fast. And so did  1.  Then  one
day ages back, I finally was stopped after  countless  little  stoppings  by
social contacts and family to prepare me culminating in a navy more  devoted
to braid than dead enemies and literally I quit. For a while I couldn't  get
a clue of what was wrong with me. Life went  completely  unlivable  until  I
found a new solution. So I know the frailty of these single  solutions.  Not
to compare myself but just to show it happens to us all, not just Bolivars.

Bolivar had no personal insight at all. He could only  "outsight"  and  even
then he did not look or listen. He glowed things right.  Pitifully,  it  was
his undoing that he could. Until he no longer could. When he  couldn't  glow
he roared, and when he couldn't roar he fought a battle. Then civic  enemies
were not military enemies so he had no solution left at all.

It never occurred to him to do more than personally  magnetize  things  into
being right and victorious.

His downfall was that he made far too heavy use of a  skill  simply  because
it was easy. He was too good at this one thing. So he never  looked  to  any
other skill and he never even dreamed there was any other way.

He had no view of any  situation  and  no  idea  of  the  organizational  or
preparatory steps necessary to political and personal victory. He only  knew
military organization which is where his organizational insight ceased.

He was  taught  on  the  high  wine  of  French  revolt,  notorious  in  its
organizational inability to form cultures, and that fatally by  a  childhood
teacher who was  intensely  impractical  in  his  own  private  life  (Simon
Rodriguez, an unfrocked priest turned tutor).

Bolivar had no personal financial skill. He started wealthy and wound  up  a
pauper, a statistic descending from one of the if not  the  richest  man  in
South America

47



down to a borrowed nightshirt to be buried in as an exile.  And  this  while
the property of  Royalists  was  wide  open,  the  greatest  land  and  mine
valuables of South America wide open to his hand and that's not  believable!
But true. He never collected his own debt of loans to governments even  when
the head of those governments.

So it is no wonder we  find  two  more  very  real  errors  leading  to  his
downfall: He did not get his troops or officers rewarded and he did not  aim
for any solvency of the states he controlled. It  was  all  right  if  there
were long years of battle ahead for them to be  unpaid  as  no  real  riches
were yet won, but not to reward  them  when  the  whole  place  was  at  his
disposal! Well!

The limit of his ability consisted of demanding a bit of  cash  for  current
pay from churches-which were not actively against him  at  first  but  which
annoyed them no end-and a few household expenses.

He could have (and should have) set aside all Royalist property and  estates
for division amongst his officers, their men and his supporters. It  had  no
owners now. And this failure cost the economy of the country  the  tax  loss
of all those productive estates (the whole wealth of the land). So it is  no
wonder his government, its  taxable  estates  now  inoperative  or  at  best
lorded by a profiteer or looted by Indians, was insolvent. Also, by  failing
to do such an obvious act, he delivered property  into  the  hands  of  more
provident enemies and left his officers and men  penniless  to  finance  any
support for their own stability in the new society and so for his own.

As for state finance, the great mines of South America, suddenly  ownerless,
were overlooked and were then grabbed and worked by foreign adventurers  who
simply came in and took them without payment.

Spain had run the country on the finance of mine tithes and  general  taxes.
Bolivar not only didn't collect the  tithes,  he  let  the  land  become  so
worthless as to be untaxable. He should have gotten  the  estates  going  by
any shifts and should have state operated all Royalist  mines  once  he  had
them. To not do these things was complete, but typically humanoid, folly.

In doing this property division he should have left it all up  to  officers'
committees operating as courts of claim without staining his  own  hands  in
the natural corruption. He was left doubly open  as  he  not  only  did  not
attend to it, he also got the name  of  corruption  when  anybody  did  grab
something.

He failed as  well  to  recognize  the  distant  widespread  nature  of  his
countries despite all his riding  and  fighting  over  them  and  so  sought
tightly centralized government,  not  only  centralizing  states,  but  also
centralizing the various nations into a federal state. And this over a  huge
landmass full of insurmountable ranges, impassable jungles and  deserts  and
without mail, telegraph, relay stages, roads, railroads,  river  vessels  or
even footbridges repaired after a war of attrition.

A step echelon from a pueblo (village)  to  a  state,  from  a  state  to  a
country and a country to a federal state was only  possible  (in  such  huge
spaces of country where candidates could never be known personally over  any
wide area and whose opinions could not even be circulated more  than  a  few
miles of burro trail) where only the pueblo was democratic and the rest  all
appointive from pueblo on up, himself the ratifier  of  titles  if  he  even
needed that. With his own  officers  and  armies  controlling  the  land  as
owners of all wrested from Royalists and the crown of Spain, he  would  have
had no revolts. There would have been little civil  wars  of  course  but  a
court to settle their final claims could have existed at federal  level  and
kept them traveling  so  much  over  those  vast  distances  it  would  have
crippled their enthusiasm for litigation on the one hand and on  the  other,
by dog-eat-dog settlements, would have given him the strongest rulers-if  he
took neither side.

He did not  step  out  and  abdicate  a  dictatorial  position.  He  mistook
military acclaim and  ability  for  the  tool  of  peace.  War  only  brings
anarchy, so he had anarchy. Peace is more than a "command  for  unity,"  his
favorite phrase. A productive peace is

48



getting men busy and giving them something to make something  of  that  they
want to make something of and telling them to get on with it.

He never began to  recognize  a  suppressive  and  never  considered  anyone
needed killing except on a battlefield. There it was glorious. But  somebody
destroying his very name and soul, and the security of every  supporter  and
friend, the SP Santander, his vice president, who could have  been  arrested
and executed by  a  corporal's  guard  on  one  one-hundredth  of  available
evidence, who could suborn the whole treasury and  population  against  him,
without  Bolivar,  continually  warned,  loaded  with  evidence,  ever  even
reprimanding him. And this brought about his  loss  of  popularity  and  his
eventual exile.

He also failed in the same way to protect his  military  family  or  Manuela
Saenz from other enemies.  So  he  weakened  his  friends  and  ignored  his
enemies just by oversight.

His greatest error lay in that while dismissing Spain  he  did  not  dismiss
that nation's most powerful minion, the Church, and did  not  even  localize
it or reward a South American separate branch to loyalty or do  anything  at
all (except extort money from  it)  to  an  organization  which  continually
worked for Spain as only it could work-on every person  in  the  land  in  a
direct anti-Bolivar reign of terror behind the  scenes.  You  either  suborn
such a group or you take them out  when  they  cease  to  be  universal  and
become or are an enemy's partner.

As the Church held huge properties and as Bolivar's  troops  and  supporters
went unpaid even of the penny soldiers' pay, if one was  going  to  overlook
the Royalist estates, one could at least have  seized  the  Church  property
and given  it  to  the  soldiers.  General  Vallejo  did  this  in  1835  in
California, a nearly contemporary act, with no  catastrophe  from  Rome.  Or
the penniless countries could have taken  them  over.  You  don't  leave  an
enemy financed and solvent while you let your friends starve in a game  like
South American politics. Oh no.

He wasted  his  enemies.  He  exported  the  "godos"  or  defeated  Royalist
soldiers. They  mostly  had  no  homes  but  South  America.  He  issued  no
amnesties they could count on. They were shipped off or left to die  in  the
"ditch"-the best artisans in the country among them.

When one (General Rodil) would not surrender Calloa fortress after Peru  was
won, Bolivar, after great gestures of amnesty, failed  to  obtain  surrender
and then  fought  the  fort.  Four  thousand  political  refugees  and  four
thousand Royalist troops died over many months in full sight of  Lima-fought
heavily by Bolivar only because thefort was fighting.  But  Bolivar  had  to
straighten up Peru urgently, not fight a defeated enemy.  The  right  answer
to such a foolish commander as Rodil, as Bolivar did have the troops  to  do
it, was to cover the roads with cannon enfilade potential to discourage  any
sortie from the fort, put a larger number of his own  troops  in  a  distant
position of offense but ease and  comfort  and  say,  "We're  not  going  to
fight. The war's over, silly man.  Look  at  the  silly  fellows  in  there,
living on rats when they can just walk out and sleep home nights  or  go  to
Spain or enlist with me or just go camping," and let  anybody  walk  in  and
out who pleased, making  the  fort  Commander  (Rodil)  the  prey  of  every
pleading wife and mother without and would-be deserter  or  mutineer  within
until he did indeed sheepishly give  up  the  pretense-a  man  cannot  fight
alone. But battle was glory to Bolivar. And  he  became  intensely  disliked
because the incessant cannonade, which got nowhere, was annoying.

Honors meant a great deal to Bolivar. To be  liked  was  his  life.  And  it
probably meant more to him  than  to  see  things  really  right.  He  never
compromised his principles but he lived on admiration,  a  rather  sickening
diet since it demands in turn continuous "theater." One is what one is,  not
what one is admired or hated for. To judge oneself  by  one's  successes  is
simply to observe that one's postulates  worked  and  breeds  confidence  in
one's ability. To have to be  told  it  worked  only  criticizes  one's  own
eyesight and hands a spear to the enemy to make his wound of vanity  at  his
will. Applause is nice. It's great to be thanked and admired.  But  to  work
only for that? And his craving for that, his addiction to the most  unstable
drug in history-fame-killed Bolivar. That

49



self-offered spear. He told the world continually  how  to  kill  him-reduce
its esteem. So as money and land can buy any quantity of  cabals,  he  could
be killed by curdling the esteem, the easiest thing you can  get  a  mob  to
do.

He had all the power. He did not use it for good or evil.  One  cannot  hold
power and not use it. It violates the Power Formula. For  it  then  prevents
others from doing things if they had some of the power, so they then see  as
their only solution the destruction of the holder of the power  as  he,  not
using power or delegating it, is the unwitting block to all their plans.  So
even many of his friends and armies finally agreed he had to go.  They  were
not able men. They were in  a  mess.  But  bad  or  good,  they  had  to  do
something. Things were desperate, broken-down and starving  after  14  years
of civil war. Therefore they either had to have some of that absolute  power
or else nothing could be done at all. They were not great minds. He did  not
need any "great minds," he thought, even though he  invited  them  verbally.
He saw their petty, often murderous solutions and he rebuked  them.  And  so
held the power and didn't use it.

He could not stand another personality threat.

The trouble in Peru came  when  he  bested  its  real  conqueror  (from  the
Argentine), La Mar, in a petty triumph over adding  Guayaquil  to  Colombia.
Bolivar wished to look triumphant again and didn't  notice  it  really  cost
him the support and Peru the support of La Mar-who  understandably  resigned
and went home, leaving  Bolivar  Peru  to  conquer.  Unfortunately,  it  had
already been in his hands. La Mar needed some troops to  clean  up  a  small
Royalist army-that was all. La Mar didn't need  Peru's  loss  of  Guayaquil-
which never did anybody any real good anyway!

Bolivar would become inactive when faced with two areas' worth of  problems-
he did not know which way to go. So he did nothing.

Brave beyond any general in history on the  battlefield,  the  Andes  or  in
torrential rivers, he did not  really  have  the  bravery  needed  to  trust
inferior minds and stand by their often shocking blunders. He  feared  their
blunders. So he did not dare unleash his many willing hounds.

He could lead men, make men feel wonderful, make  men  fight  and  lay  down
their lives after hardships no army elsewhere in the world  has  ever  faced
before or since. But he could not use men even when they were begging to  be
used.

It is a frightening level of bravery to use  men  you  know  can  be  cruel,
vicious, and incompetent. He had no fear of their turning on him ever.  When
they finally did, only then he was shocked. But he  protected  "the  people"
from authority given to questionably competent men. So he really never  used
but three or four generals of mild disposition  and  enormously  outstanding
ability. And to the rest he denied power. Very thoughtful  of  the  nebulous
"people" but very bad indeed for the general good. And it really caused  his
death.

No. Bolivar was theater. It was all theater. One  cannot  make  such  errors
and still pretend that one thinks of life as life, red-blooded and  factual.
Real men and real life are full of dangerous, violent, live situations;  and
wounds hurt and starvation is desperation itself, especially  when  you  see
it in one you love.

This mighty actor, backed up with fantastic  personal  potential,  made  the
mistake of thinking the theme of liberty and his own  great  role  upon  the
stage was enough to interest all the working, suffering hours  of  men,  buy
their bread, pay their whores, shoot their  wives'  lovers  and  bind  their
wounds or even put enough drama into very hard-pressed lives  to  make  them
want to live it.

No, Bolivar was unfortunately the only actor on the stage and no  other  man
in the world was real to him.

And so he died. They loved him. But they were also on the stage  too,  where
they were dying in his script  or  Rousseau's  script  for  liberty  but  no
script for living their very real lives.

50



He was the greatest military general in any history measured against his
obstacles, the people and the land across which he fought.

And he was a complete failure to himself and his friends.

While being one of the greatest men alive at that. So we see how truly
shabby others in leaders' boots amongst men must be.

MANUELA SAENZ

The tragedy of Manuela Saenz as Bolivar's mistress was that  she  was  never
used, never really had a share and was  neither  protected  nor  honored  by
Bolivar.

Here was a clever, spectacular woman of fantastic fidelity and  skill,  with
an enormous "flair," capable of giving great satisfaction and  service.  And
only her satisfaction ability was taken and that not consistently  nor  even
honestly.

In the first place, Bolivar never married her.  He  never  married  anybody.
This opened up a fantastic  breach  in  any  defense  she  could  ever  make
against hers or his enemies who were legion. So her  first  mistake  was  in
not in some way contriving a marriage.

That she had an estranged husband she had been more  or  less  sold  to  was
permitted by her to wreck her life obliquely.

She was too selfless to be real in all her very able plotting,

For this marriage problem she could have engineered any number of actions.

She had the solid friendship of all  his  trusted  advisers,  even  his  old
tutor. Yet she arranged nothing for herself.

She was utterly devoted,  completely  brilliant  and  utterly  incapable  of
really bringing off an action of any final kind.

She violated the Power Formula in not realizing that she had power.

Manuela was up against a hard man to handle. But she did not know enough  to
make her own court effective. She organized one. She did not  know  what  to
do with it.

Her most fatal mistake was in not bringing down Santander,  Bolivar's  chief
enemy. That cost her everything she had before the  end  and  after  Bolivar
died. She knew for years Santander had to be killed. She said  it  or  wrote
it every few days. Yet never did she  promise  some  young  officer  a  nice
night or a handful of gold to do it in a day when dueling  was  in  fashion.
It's like standing around discussing how the plainly  visible  wolf  in  the
garden that's eating the chickens must be shot,  even  holding  a  gun,  and
never even lifting it while all one's chickens vanish for years.

In a land overridden with priests, she never got herself a  tame  priest  to
bring about her ends.

She was a fantastic intelligence officer. But she fed her data to a man  who
could not act to protect himself or friends, who  could  only  fight  armies
dramatically.

She did not see this and also  quietly  take  on  the  portfolio  of  secret
police chief. Her mistake was waiting to be asked-to be  asked  to  come  to
him, to act. She voluntarily was  his  best  political  intelligence  agent.
Therefore she should have also assumed further roles.

She guarded his correspondence, was intimate with his secretaries.  And  yet
she never collected or forged or stole any document to bring  down  enemies,
either through

51



representations to Bolivar or a court circle of her  own.  And  in  an  area
with that low an ethic, that's fatal.

She openly pamphleteered and fought violently as in a battle against her
rabble.

She had a great deal of money  at  her  disposal.  In  a  land  of  for-sale
Indians, she never used a penny to buy a quick knife or even a  solid  piece
of evidence.

When merely opening her lips she could have had  any  sequestrated  Royalist
estate, she went to  litigation  for  a  legitimate  legacy  never  won  and
another won but never paid.

They lived on the edge of quicksand. She never bought a plank or a rope.

Carried away by the glory of it all, devoted  completely,  potentially  able
and a formidable enemy, she did not act.

She waited to be told to come to him even when he lay dying and exiled.

His command over her who never obeyed any other was  too  absolute  for  his
own or her survival.

Her  assigned  mistakes  (pointed  out  at  the  time  as  her  caprice  and
playacting) were not her errors. They only made her interesting.  They  were
far from fatal.

She was not ruthless enough to make up for his lack of ruthlessness and  not
provident enough to make up for his lack of providence.

The ways open to her for finance, for action, were completely doorless.  The
avenue stretched out to the horizon.

She fought bravely but she just didn't take action.

She was an actress for the theater alone.

And she died of it. And she let Bolivar die because of it.

Never once did Manuela look about and say,  "See  here,  things  mustn't  go
this wrong. My lover holds half a continent and even I hold the  loyalty  of
battalions. Yet that woman threw a fish!"

Never did Manuela tell Bolivar's doctor, a rumored lover, "Tell that man  he
will not live without my becoming a constant  part  of  his  entourage,  and
tell him until he believes it or we'll have a new physician around here."

The world was open. Where Theodora, the  wife  of  Emperor  Justinian  I  of
Constantinople, a mere circus girl  and  a  whore,  ruled  harder  than  her
husband but for her husband behind his back-and made him marry her as  well-
Manuela never had any bushel basket of gold brought in to give  Bolivar  for
his unpaid troops with a "Just found it, dear" to his "Where  on  Earth  ...
T' after the Royalist captives had been carefully ransomed for jail  escapes
by her enterprising own entourage and  officer  friends.  She  never  handed
over any daughter of a family clamoring against  her  to  Negro  troops  and
then said, "Which oververbal family is next?"

She even held a colonel's rank but only  used  it  because  she  wore  man's
clothing afternoons. It was a brutal, violent, ruthless land, not a game  of
musical chairs.

And so Manuela, penniless, improvident, died badly and  in  poverty,  exiled
by enemies and deserted by her friends.

But why not deserted by her friends? They had all been  poverty-stricken  to
a point quite incapable of helping her even though they  wanted  to-for  she
once had the power

52



to make them solvent. And didn't use it. They were in  poverty  before  they
won but they did eventually control the land. After that why make it  a  bad
habit?

And so we see two pathetic, truly  dear,  but  tinsel  figures,  both  on  a
stage, bothfar removed from the reality of it all.

And one can say, "But if they had not been such idealists they  never  would
have fought so hard and freed half a continent," or "If she had  stooped  to
such intrigue or he had been known for violent political actions they  would
never have had the strength and never would have been loved."

All very idealistic itself. They died "in  the  ditch"  unloved,  hated  and
despised. two decent brave people, almost too good for this world.

A true hero, a true heroine. But on a stage and  not  in  life.  Impractical
and improvident and with no faintest gift either one to use the  power  they
could assemble.

This story of Bolivar and Manuela is a tragedy of the most piteous kind.

They fought a hidden enemy, the Church; they were killed by their friends.

But don't overlook how impractical it is not  to  give  your  friends  power
enough when you have it to give. You can always give some of it  to  another
if the first one collapses through inability. And one can always be  brought
down like a hare at a hunt who seeks to use the delegated power to kill you-
if you have the other friends.

Life is not a stage for posturing and "Look at me!" "Look at me."  "Look  at
me." If one is to lead a life of command or a life near to command one  must
handle it as life. Life bleeds. It suffers. It hungers. And it has  to  have
the right to shoot its enemies until such time as comes a golden age.

Aberrated man is not capable of supporting, in his present state,  a  golden
declared age for three minutes, given  all  the  tools  and  wealth  in  the
world.

If one would live a life of command or one near to a command, one must  then
accumulate power as fast as possible and delegate it as quickly as  feasible
and use every humanoid in long reach to the best and beyond his  talents  if
one is to live at all.

If one does not choose to live such a life, then go on the stage  and  be  a
real actor. Don't kill men while  pretending  it  isn't  real.  Or  one  can
become a recluse or a student or a clerk. Or study butterflies  or  take  up
tennis.

For one is committed to certain irrevocable  natural  laws  the  moment  one
starts out upon a conquest, either as the man in charge or a person near  to
him or on his staff or in his army. And the foremost law, if one's  ambition
is to win, is of course to win.

But also to keep on providing things to win and enemies to conquer.

Bolivar let his cycle run to "freedom" and end there. He never  had  another
plan beyond that point. He ran out of territory  to  free.  Then  he  didn't
know what to do with it and didn't know enough, either,  to  find  somewhere
else to free. But of course all limited games come to  end.  And  when  they
do, their players fall over  on  the  field  and  become  rag  dolls  unless
somebody at least tells them the game has ended and they have no  more  game
nor any dressing room or houses but just that field.

And they lie upon the field, not noticing there can be no  more  game  since
the other team has fled and after a bit they have to do  something;  and  if
the leader and his consort are sitting over on the  grass  being  rag  dolls
too, of course there isn't any game.  And  so  the  players  start  fighting
amongst themselves just to have a game. And if the leader  then  says,  "No,
no" and his consort doesn't say, "Honey, you better phone

53



the Baltimore Orioles for Saturday," then of course the poor players,  bored
stiff, say, "He's out." "She's out." "Now we're going to split the  team  in
half and have a game."

And that's what happened to Bolivar and Manuela. They had to be  gotten  rid
of for there was  no  game  and  they  didn't  develop  one  to  play  while
forbidding the only available game-minor civil wars.

A whole continent containing the  then  major  mines  of  the  world,  whole
populations were left sitting there, "freed."  But  none  owned  any  of  it
though the former owners had left. They weren't  given  it.  Nor  were  they
made to manage it. No game.

And if Bolivar had not been smart enough for that, he could  at  least  have
said, "Well! You monkeys are going to have quite a time getting  the  wheels
going but that's not my job. You decide on your type of government and  what
it's to be. Soldiers are my line. Now I'm taking over those old  estates  of
mine and the Royalist ones nearby and the emerald mines  just  as  souvenirs
and me and Manuela we're going  home."  And  he  should  have  said  that  5
minutes after the last Royalist army was defeated in Peru.

And his official family with him, and a thousand  troops  to  which  he  was
giving land would have moved right off smartly  with  him.  And  the  people
after a few screams of horror at being deserted would have  fallen  on  each
other, sabered a state together here and a town there and  gotten  busy  out
of sheer self-protection in a vital new game, "Who's  going  to  be  Bolivar
now?"

Then when home he should have said,  "Say  those  nice  woods  look  awfully
Royalist to me, and also those 1,000,000 hectares of grazing land,  Manuela.
Its owner once threw a Royalist fish, remember? So that's yours."

And the rest of the country would have done the same and gotten on with  the
new game of "You was a Royalist."

And Bolivar and Manuela would have had statues built to them by the  TON  at
once as soon as agents could get  to  Paris  with  orders  from  an  adoring
populace.

"Bolivar, come rule us!" should have gotten  an  "I  don't  see  any  unfree
South America. When you see a French or Spanish army coming, come  back  and
tell me."

That would have worked. And  this  poor  couple  would  have  died  suitably
adored in the sanctity of glory and (perhaps more importantly) in their  own
beds, not "in a ditch."

And if they had had to go on ruling they could have declared a new  game  of
"pay the soldiers and officers with Royalist land."  And  when  that  was  a
gone game, "Oust  the  Church  and  give  its  land  to  the  poor  friendly
Indians."

You can't stand bowing back of the footlights forever with no show  even  if
you are quite an actor. Somebody else can make better use of any stage  than
even the handsomest actor who will not use it.

Man is too aberrated to understand at least 7 things about power:

I     Life is lived by lots of people. And if you lead you must either let
them get on with it or lead them on with it actively.

2.    When the game or the show is over, there must be a new game or a new
show. And if there isn't, somebody else is jolly well going to start one,
and if you won't let anyone do it, the game will become "getting you."

3.    If you have power, use it or delegate it or you sure won't have it
long.

4.    When you have people, use them or they will soon become most unhappy
and you won't have them anymore.

54



5.    When you move off a point of power, pay all your  obligations  on  the
nail, empower all your friends completely and move  off  with  your  pockets
full of artillery, potential blackmail on every erstwhile  rival,  unlimited
funds in your private account and the  addresses  of  experienced  assassins
and go live in Bulgravia and bribe the police. And even  then  you  may  not
live long if you have retained one scrap of domination in any  camp  you  do
not now control or if you even say, "I favor politician  Jiggs."  Abandoning
power utterly is dangerous indeed.

But we can't all be leaders or figures strutting in  the  limelight  and  so
there's more to know about this:

6.    When you're close to power, get some delegated  to  you-enough  to  do
your job and protect yourself  and  your  interests-for  you  can  be  shot,
fellow, shot, as  the  position  near  power  is  delicious  but  dangerous,
dangerous always, open to the taunts of any enemy of the power who dare  not
really boot the power but can boot you. So to live at all in the  shadow  or
employ of a power, you must yourself gather and USE  enough  power  to  hold
your  own-without  just  nattering  to  the  power  to   "kill   Pete,"   in
straightforward or more suppressive veiled ways to him as  these  wreck  the
power that supports yours. He doesn't have to know all the bad news  and  if
he's a power really he won't ask all the time,  "What  are  all  those  dead
bodies doing at the door?" And if you  are  clever,  you  never  let  it  be
thought HE killed themthat weakens you and  also  hurts  the  power  source.
"Well, boss, about all those dead bodies, nobody at  all  will  suppose  you
did it. She over there, those pink  legs  sticking  out,  didn't  like  me."
"Well," he'll say if he really is a power, "why are you  bothering  me  with
it if it's done and you did it. Where's my blue  ink?"  Or  "Skipper,  three
shore patrolmen will be along soon with your cook, Dober, and  they'll  want
to tell you he beat up Simson." "Who's Simson?" "He's a clerk in  the  enemy
office downtown." "Good, when they've  done  it,  take  Dober  down  to  the
dispensary for any treatment he needs. Oh yes.  Raise  his  pay."  Or  "Sir,
could I have the power to sign divisional orders?" "Sure."

7.    And lastly and most important, for we all aren't  on  the  stage  with
our names in lights, always push power in the direction of anyone  on  whose
power you depend. It may be more money for the power, or  more  ease,  or  a
snarling defense of the power to a critic, or even the dull thud of  one  of
his enemies in the dark, or the glorious blaze of the whole enemy camp as  a
birthday surprise.

If you work like that and the power you are near or depend upon is  a  power
that has at least some inkling about how to be one, and if you  make  others
work like that, then the power-factor expands and expands  and  expands  and
you too acquire a sphere of power bigger than you would have if  you  worked
alone. Real powers are developed by tight conspiracies of this kind  pushing
someone up in whose leadership they have faith. And if they  are  right  and
also manage their man and keep him from  collapsing  through  overwork,  bad
temper or bad data, a kind of Juggernaut builds up. Don't ever  feel  weaker
because you work for somebody stronger. The only failure lies in  taxing  or
pulling down the strength on which you depend.  All  failures  to  remain  a
power's power are failures to contribute to the strength  and  longevity  of
the  work,  health  and  power  of  that  power.  Devotion  requires  active
contribution outwards from the power as well as in.

If Bolivar and Manuela had known these things, they would have lived an
epic, not a tragedy. They would not have "died in the ditch," he bereft of
really earned praise for his real accomplishments even to this day. And
Manuela would not be unknown even in the archives of her country as the
heroine she was.

5 5



Brave, brave figures. But if this can happen to such  stellar  personalities
gifted with ability tenfold over the greatest of other  mortals,  to  people
who could take a rabble in a vast impossible land and defeat one of  Earth's
then foremost powers, with no money or  arms,  on  personality  alone,  what
then must be the ignorance and confusion of human leaders in  general,  much
less little men stumbling through their lives of boredom and suffering?

Let us wise them up, huh? You can't live in a world  where  even  the  great
leaders can't lead.

L. RON HUBBARD

Founder

LRH:jp.rd.gm

56



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 25 JANUARY 1981

Remimeo     Issue V

HCO Hats

      (Originally issued as an HCO Bulletin,

      22 March 67, same title.)

IMPORTANT

Admin Know-How Series 14

ALTER-IS AND DEGRADED BEINGS

Alteration of orders and tech is worse than noncompliance.

Alter-is is a covert avoidance of an order. Although it is apparently  often
brought about by noncomprehension, the noncomprehension itself  and  failure
to mention it is an avoidance of orders.

Very degraded beings  alter-is.  Degraded  ones  refuse  to  comply  without
mentioning it. Beings in fair condition  try  to  comply  but  remark  their
troubles to get help when needed. Competent higher-toned  beings  understand
orders and comply if possible but mainly do their jobs without needing  lots
of special orders.

Degraded beings find any instruction painful as  they  have  been  painfully
indoctrinated with violent measures in the  past.  They  therefore  alter-is
any order or don't comply.

Thus  in  auditing  pcs  or  in  org,  where  you  find   alter-is   (covert
noncompliance)  and  noncompliance,  given  sensible  and  correct  tech  or
instructions, you are dealing with a degraded, low-level  being  and  should
act accordingly.

One uses very simple, low-level processes on a degraded being, gently.

In admin, orgs and especially the Tech Div where a staff member  alter-ises,
or fails to comply, you are also dealing with a degraded being but  one  who
is too much a pc to be a staff member. He  cannot  be  at  cause  and  staff
members must be at cause. So he or she should not be on staff.

This is a primary senior datum regulating all handling of pcs and staff
members.

A degraded being is not a suppressive as he can have case gain.  But  he  is
so PTS that he works for suppressives only. He is sort of a  super-continual
PTS beyond the reach really of a simple S & D and handled only at Section  3
OT Course.

Degraded beings, taking a cue  from  SP  associates,  instinctively  resent,
hate and seek to obstruct any person  in  charge  of  anything  or  any  Big
Being.

Anyone issuing sensible orders is the first one resented by a degraded
being.

A degraded being lies to his seniors, avoids orders  covertly  by  alter-is,
fails  to  comply,  supplies  only  complex  ideas  that  can't  ever   work
(obstructive) and is a general area of enturbulence, often mild  seeming  or
even  "cooperative,"  often  even  flattering,  sometimes  merely  dull  but
consistently alter-ising or noncomplying.

57



This datum appeared during higher level research and  is  highly  revelatory
of earlier unexplained phenomena-the pc who changes commands or  doesn't  do
them, the worker who can't get it straight or who is always on a tea break.

In an area where suppression has been very heavy for  long  periods,  people
become degraded beings. However, they must have been so before  already  due
to track incidents.

Some thetans are bigger than others. None are truly equal. But the  degraded
being is not necessarily a natively bad thetan. He is  simply  so  PTS,  and
has been for so long, that it requires our highest  level  tech  to  finally
undo it after he has scaled up all our grades.

Degraded beings are about 18  to  I  over  Big  Beings  in  the  human  race
(minimum ratio). So those who keep things going are few. And those who  will
make it without the steam of the few in our orgs behind them  are  zero.  At
the same time, we can't have a world full of them and still make it.  So  we
have no choice.

And we can handle them even when they cannot serve at higher levels.

This is really OT data but we need it at lower levels to get the job done.

L. RON HUBBARD

Founder

Accepted by the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH.-jp.rd.nc.gm , 1981

58



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I OCTOBER 1967

Remimeo

Admin Know-How Series 15

USES OF ORGS

There are two uses (violently opposed to each other) to which Scientology
orgs can be put. They are

I - To forward the advance of self and all dynamics toward total survival.

2.    To use the great power and control of an org over others to defend
oneself.

When a decent being goes to work in an org he uses 1.

When a suppressive goes to work in an org he uses 2.

When you get in ethics, the decent one raises his necessity level and
measures up. The suppressive type blows (leaves).

It is of vital interest to all of us that we have orgs that serve to
increase survival on all dynamics. And that we prevent orgs being used as
means to oppress others.

The answer, oddly enough, is to GET IN ETHICS exactly on-policy and
correctly. And we will advance.

L. RON HUBBARD

Founder

LRH.jp.rd.gm

59



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 16 OCTOBER 1967

Remimeo

ETHICS

Admin Know-How Series 16

SUPPRESSIVES AND THE ADMINISTRATOR

HOW TO DETECT SPs AS AN ADMINISTRATOR

There are three areas of detection which an  administrator  can  utilize  in
the detection of a suppressive person.

These are

1.    No ethics change

2.    No case change

3.    No admin change.

An SP (suppressive person) is unable to change because he  cannot,  himself,
confront. He is badly "out of valence." Therefore, not being  able  to  look
at things directly, he is unable to erase them or even see  what  they  are.
Such people often have a curtain of pictures they look  at  instead  of  the
universe around them. They do not see a building. They see a  picture  of  a
building in front of the building. They are not  at  the  point  from  which
they view things.

Thus they are peculiar in that they can't change.

The three principal zones in a Scientology org are

I . Ethics

2.    Tech

3.    Admin.

We have the natural laws of these subjects, each one.

If you can get in ethics, you can get in Scientology technology. If you  can
get in Scientology technology, you can get in admin.  If  you  can  get  all
three in, you have an org and have expansion.

If you can't get in tech, ethics is out. If you can't  get  in  admin,  both
tech and ethics are out.

The sequence that things have to be "gotten in" to  make  an  org  is  I  st
ethics, 2nd tech, 3rd admin.

Where one of these goes out, the org contracts.

We have these three sciences. To really handle  things,  one  has  to  be  a
master of all three, even to live a good personal life.

By "get in," we mean get it applied and effective.

60



We live in a very woggy world at this time. The wog is so out-ethics  he  is
living in what amounts to a criminal society.

When we try to get tech in on the planet, we run into the  out-ethics  areas
and this is the real source of our  troubles  where  we  have  any.  We  are
getting in tech before we get in ethics. It can be  done  (obviously,  since
we are doing it). But it is a heavy strain at best.

Just because we do not at once get ethics in on the planet does not mean  we
can't get any tech in.

By handling small sectors, beginning with self and  Scientology  groups  and
orgs, we can continue to repeat the cycles  of  three-ethics,  tech,  admin.
Gradually we enlarge the numbers we have and gradually our sphere of ethics-
tech-admin expands. And we one day have ethics in on the planet, tech in  on
the planet, admin in on the planet.

The only stumbling block is the SP. This person (about  10  percent  of  the
population) is unable to change. We can process them if we can get  them  to
sit still.

But these are the hidden booby-traps which make one's  life,  one's  family,
one's org, one's nation, one's planet a rough-rough proposition.

Ninety percent of the people say, "Ethics great, tech great,  admin  great."
And away we go.

Ten percent say,"Horrible, horrible, horrible." And  cannot  either  see  or
change. They are the true psychotics no matter how "sane"  they  sound.  The
people in institutions are generally only their victims.

This 10 percent, one must be able to detect  and  weed  out  so  they  don't
contaminate areas we are bringing up in ethics, tech and admin.

Our policy is we don't waste time on them. To cater to them is to betray  90
percent of the population. So we set them aside for another day.

We get them off lines, out of orgs and to one side.

The true character of these people is usually masked in many ways. They  are
expert only in deception and can take on any guise.

To listen to them one would suppose  he  was  talking  to  his  best  friend
sometimes. Except the knife in one's back is also driven in by them.

We have much tech to describe them.

But one does not have to be an auditor with a meter to find these people.

An administrator only needs to know the three things about them.

1.    No change in ethics

2.    No change in case

3.    No change in admin.

These people have

1.    Thick ethics files

2.    Thick (or no) case files

3.    Thick full (or no) comm baskets.

61



If you just dismissed anyone who had all three, you would  have  gotten  rid
of an SP.

It works this way. When you start to get in ethics, most people  "learn  the
ropes" fast. They may have a few down conditions and chits  or  even  courts
or Comm Evs but you see the frequency dwindles and  eventually  vanishes  or
nearly so.

When you start to get in tech on a person, it may  be  a  hard  haul  for  a
while and then it begins to level out and get easier.

When you start to get in admin, the confusion  around  some  person  may  be
great but after a while the lines and policies straighten out.

None are good little angels. But 90 percent make progress in these 3  fields
of ethics, tech and admin.

The SP does NOT make any consistent progress at all and lapses every time.

As only 10 percent of the people then are making nearly all the  tough  work
in ethics, tech and admin, the thing to do then  is  to  get  them  off  the
lines rather than betray 90 percent.

And the SP is detectable in ALL THREE AREAS. It needs no microscope to  find
out who on a staff has the seniors working so hard for so little gain.

Their ethics file is huge, their case file either doesn't exist  at  all  or
is very fat, their comm lines are jammed, their  policy  is  out  and  their
stats are on the bottom eternally.

So as an administrator you can detect SPs. You better had.  YOUR  OWN  STATS
WILL BE DOWN TO THE DEGREE YOU FAIL TO DETECT THEM.

Just go to your files and look at the desks and sack whoever  satisfies  all
three conditions above and you can't miss and WILL be able to breathe.

L. RON HUBBARD

Founder

LRH.jp.cden.gm

62



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 OCTOBER 1967

Remimeo

Admin Know-How Series 17

CONDITIONS, HOW TO ASSIGN

Every post and part of an org must  have  a  statistic  which  measures  the
volume of product of that post. The head of a  part  has  the  statistic  of
that part.

Every post or part of an org has a product. If it  has  no  product,  it  is
useless and supernumerary.

An Exec Sec has the products of his or her portion of  the  org.  The  first
product of an Exec Sec is, of course,  his  or  her  portion  of  the  org's
divisions. If the portion itself does not exist, then  of  course  the  Exec
Sec has no stat at all as an Exec Sec even if very busy-so he or she is  not
an Exec Sec despite the title. This is true of a department head, a  section
head and a unit head. One can't really be the one in  charge  if  the  thing
one is in charge of doesn't exist. Also, things that don't exist  themselves
can have no product.

The whole rationale (basic idea) of the pattern of an org is a unit of 3.
These are

THETAN

I

MIND - BODY - PRODUCT.

In Division One the  HCO  Sec  is  the  thetan,  Department  One  the  MIND,
Department Two the BODY and Department Three the PRODUCT. The  same  pattern
holds for every division.

It also should hold for every department and lower section and unit.

And above these, it holds for a portion of an org.

      In the HCO portion of the org we have the HCO Exec Sec as the thetan,
the Exec

Div (7) as the MIND, Division One as the BODY and Division Two as the
PRODUCT.

And so with other parts of an org. They always go

THETAN

I

MIND - BODY - PRODUCT.

Now if you know and understand and can apply this, you can not only plan  or
correct an org  or  one  of  its  parts,  you  can  also  assign  conditions
correctly. You need data gained from inventories or counts of items  or  the
statistic assigned and drawn.

It is not enough to only follow graphs. That is  a  lazy,  lazy,  lazy,  no-
confront method when used alone. Graphs can be falsified, can be  too  fixed
on one thing and can ignore others unless you read all  the  graphs  of  the
part you are interested in.

Graphs are a good indicator and should be used wherever  possible.  BUT  you
must also keep in mind  that  it  requires  ALL  the  graphs  to  be  wholly
accurate in  a  conditions  assignment  and  the  most  accurate  conditions
assignment possible and that the graphs must be based on ACTUAL figures.

So, to begin, you look at the graphs. You look for recent ups and downs.
Then

63



you look for trends (long-range drifts  up  or  down).  Then  you  look  for
discrepancies.  Like  high  enrollment-low  income,  high  letters   out-low
enrollment weeks later.

It is safe enough at first to simply assign moderate conditions  (Emergency,
Normal, Affluence) by the current ups and downs of the graphs.  This  should
result in expansion.

EXPANSION  (product  increase)  is  THE  WHOLE  REASON  you  are   assigning
conditions in the first place,  so  you  expect,  reasonably,  that  if  you
assign conditions by graph you will get expansion.

Now, after a while (weeks or months) you see you are  getting  expansion  so
you go on assigning conditions by graph. An Exec Sec would also inspect  the
physical areas of Dangers and Affluences as a matter of course.

BUT let us take the reverse  case.  You  assign  conditions  by  graph  (and
inspections of Danger and Affluence) and what you are  assigning  conditions
to DOESN'T expand!

Well, now we get to work. There is something wrong.

The first thing that can be wrong is that what you are assigning  conditions
to really doesn't exist. The Director of Comm does not have a Department  of
Comm. He has only a messenger-telex operator, no way  to  handle  his  other
departmental functions and answers the phone himself.

So, finding no department, REGARDLESS OF OTHER REASONS  ("can't  get  staff"
"income  too  low"  "no  quarters"),  you  bang  him  with  a  condition  of
NonExistence. Because he obviously doesn't exist as a Dir  Comm,  having  no
Comm Dept. (Non-Existence is also assigned for NO USE and NO FUNCTION.)

Now, if this assignment to the Dir Comm  of  Non-Existence-with  no  further
help from you, mind-does not result in a Comm Dept  in  a  reasonable  time,
you assume he doesn't want one to be there and you  assign  a  condition  of
Liability.

You don't explain it all away. That's what he's doing so why imitate him?

You don't say, "He's just  overwhelmed-new-needs  a  review-natter,  natter,
figure, figure." You simply ASSIGN!

He STILL doesn't get a Comm Dept there.

You inspect. You find the  Ethics  Officer  isn't  enforcing  the  Liability
penalty ("Pete is my pal and I . . ."). So you assign the Ethics  Officer  a
condition of Liability as he gets, naturally, what he failed to enforce.

Now they mutiny and you assign a condition of Treason, shoot  both  of  them
from guns and fill the posts.

The new incumbents you tell, "The  boys  before  you  aren't  here  now  and
aren't likely to be trained or processed until we get  around  to  the  last
dregs so we hope you do better. You begin  in  Non-Existence.  I  trust  you
will work your way out of it at least into Danger before the  week  is  out.
As you are just on post, the penalties do not apply for  Non-Existence.  But
they will after 30 days.  So  let's  get  a  Dept  of  Comm  and  an  Ethics
Section."

Now of course, if the E/O had to be shot from guns, Dir I &  R  is  at  once
assigned a DANGER CONDITION complete with penalties as that section  was  in
his/her dept.

If there's no HCO (Div 7, 1, 2) part of the org, the LRH Comm  of  that  org
yells for the next senior org to act. And if there's no LRH Comm,  the  next
senior org should see that  it's  gone  by  lack  of  stats  or  reports  or
expansion and act anyway.

Now you say, "But that's ruthless! No staff would. . . ."

Well, such a statement reasoning is contrary to the facts.

64



The only time (by actual experience and data) you lose  staff  and  have  an
unstaffed org is when you let low stat people in. Low  stat  personnel  gets
rid of good staff members. An org that can't be staffed has an SP in it!

Orgs where ethics is tight and savage grow in numbers!

Man  thrives,  oddly  enough,  only  in  the  presence  of   a   challenging
environment. That isn't my theory. That's fact.

If the org environment is not challenging, there will be no org.

We help beyond any help ever available anywhere. We are a near  ultimate  in
helping. At once this loads us up with  SPs  who  would  commit  suicide  to
prevent anyone from being helped and it lays us wide open  as  "softees"  to
any degraded being that comes along. They are sure we won't bite so they  do
anything they please. Conditions correctly assigned  alone  can  detect  and
eject SPs and DBs.

So if we help so greatly, we must also in the same  proportion  be  able  to
discipline. Near  ultimate  help  can  only  be  given  with  near  ultimate
discipline.

Tech  can  only  stay  itself  where  ethics  is  correctly  and  ruthlessly
administered. Admin like ours has to be high because  our  orgs  handle  the
highest commodity-life itself.

So our admin only works where tech is IN. And  our  tech  works  only  where
ethics is in.

Our target is not a few psychiatric patients  but  a  cleared  universe.  So
what does THAT take?

The lowest confront there is, is the confront of evil. When a  living  being
is out of his own valence and in the valence of a thoroughly  bad,  even  if
imaginary, image, you get an SP. An SP is a no-confront  case  because,  not
being in his own valence, he has no viewpoint from which to erase  anything.
That is all an SP is.

BUT the amount of knowing havoc an SP can cause is seen easily  if  only  in
this planet's savage, cruel wars.

An executive who cannot confront  evil  is  already  en  route  to  becoming
suppressive.

Next door to the "theetie-weetie" case is the totally overwhelmed  condition
we call SP (suppressive person).

It is so easy to live in a fairyland where nothing evil is  ever  done.  One
gets the image of a sweet old lady standing in  the  middle  of  a  gangster
battle with bodies and blood spattering the walls  saying,  "It's  so  nice,
it's only a boy's game with toy guns."

The low statistic staff member who never gets his stats  up  is  making  low
stats. He isn't idle. It's a goodie-goodie attitude to say, "He  just  isn't
working hard." The chronic low-stat person is working VERY HARD to keep  the
stat DOWN. When you learn that, you can assign conditions and  make  an  org
expand.

When stats WON'T come up, you drop the condition down. Sooner or  later  you
will hit the REAL condition that applies.

Conversely, as you upgrade conditions you  will  also  reach  the  condition
that applies. Some staff members are in chronic Power. Who ever assigns  it?
They take over a post-its stats soar. Well, to measure  just  stats  of  the
post taken over as his condition is false since his  personal  condition  is
and has been Power. And if it is Power, then that personal condition  should
be assigned.

That is very easy to see.

65



BUT what if you have a personnel who whenever he or she takes  over  a  post
the stat collapses?

Well you better assign that one too. For just as the one in Power  works  to
maintain up stats, the one in the lower  condition,  whether  one  cares  to
confront it or not, works too and is just as  industriously  collapsing  not
only his own post stats but also the stats of posts adjacent to his!  So  he
is at least a condition of Liability as the post if vacant would only be  in
Non-Existence! And as somebody next to it might do a little bit for  it,  it
might even get up to Danger condition, completely unmanned!

DISCREPANCIES

When there are discrepancies amongst statistic graphs, SOME graph is false.

When  you  find  a  false  graph,  you  assign  anyone  who   falsified   it
intentionally and knowingly a condition of Liability,  for  that  action  is
far worse than a noncompliance.

And you had better be alert  to  the  actual  area  where  the  false  graph
originated as it has a tiger in it.  Only  physical  inspection  of  a  most
searching kind (or a board if it is distant) will reveal  the  OTHER  crimes
going on there. There are always other crimes when you get a  false  report.
Experience will teach one that if he really looks.

RECIPROCITY

It is more than policy that one gets the condition  he  fails  to  correctly
and promptly assign and enforce.

It's a sort of natural law. If you let your executives  goof  off  and  stay
in, let us say, a Danger condition, yet you don't assign  and  enforce  one,
they will surely put YOU in a Danger condition whether it gets  assigned  or
not.

Remember that when your finger falters "on the trigger."

That natural law stems from this appalling fact.

We didn't, a long, long time ago, get in ethics. We goofed.  And  the  whole
race went into the soup where it remains to this day.

And if we are to live in this universe at all, at all, we are going to  have
to get in ethics and clean it up.

Whether that's easy to confront or not  is  beside  the  point.  The  horrid
truth is that our fate is FAR more unconfrontable!

Now we have to have highly skilled tech to bail us out.  And  I  assure  you
that that tech will never get in or be used beneficially at all unless

1.    We get ethics in, and

2.    Unless Scientology orgs expand at a regular rate.

Only then can we be free.

So that's how and WHY you assign and enforce conditions. It's the  only  way
everyone finally will win.

L. RON HUBBARD

Founder

LRH:jp.rd.gm

66



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 8 FEBRUARY 1968

Remimeo

Admin Know-How Series 18

STATISTIC RATIONALIZATION

"Rationalizing a statistic" is a derogatory  term  meaning  finding  excuses
for down statistics.

Finding excuses or reasons why a stat is down does NOT bring it  up  and  at
best is a scathing comment on the lack of foresight  or  initiative  of  the
executive in charge of the area.

What is wanted is (1) prevention of stats going down and  (2)  quick  action
to bring them up.

Being reasonable about their being down  should  be  regarded  as  AGREEMENT
WITH THEIR BEING DOWN. Which is, of course, suppressive.

"Well, the letters out stat is down because we were paying a  girl  so  much
per letter and 'policy' stated we could not hire anyone so we fired her  and
that's why letters out is down."

That was an actual  rationalization  given  in  Washington,  D.C.,  for  the
collapse of the org last year.

To begin, there is no such "policy" and surely  no  policy  exists  to  have
down stats. So, here the felony is compounded by  seeking  to  blame  policy
for a down stat which for sure revealed the action as a  suppressive  effort
to rationalize (and get away with) a down stat.

The only reason stats are down, ever, is because somebody didn't  push  them
up, All other reasons are false.

IDtE FIXE

Some people have a METHOD of handling a down stat which is a fixed  idea  or
clich6 they use to handle all down stat situations in their lives.

These people are so at effect  they  have  some  idea  sitting  there  "that
handles" a down statistic.

"Life is like that." "I always try my best." "People  are  mean."  "It  will
get better." "It was worse last year."

They KNOW it isn't any use trying to do anything about anything and that  it
is best just to try to get by and not be noticed-a sure route to suicide.

Instead of seeking to prevent or  raise  a  declining  stat  in  life,  such
people use some fixed idea to explain it.

This is a confession of being in apathy.

One can always make stats go up. Hard work. Foresight. Initiative.  One  can
always make  stats  go  up.  That's  the  truth  of  it,  and  it  needs  no
explanations.

      L. RON HUBBARD

LRH:jp.rd.gm     Founder





67



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 5 MARCH 1968

Remimeo

Staff Status I   (HCO Policy Letter of 31 October 1966, Issue 11,

      Checksheet Amended and Reissued)

            (The one modified paragraph is in caps.)

Admin Know-How Series 19

GENERAL FOR ALL STAFF

JOB ENDANGERMENT CHITS

If you are given orders or directions or  preventions  or  denied  materials
which make it hard or impossible for you to  raise  your  statistics  or  do
your job at all, you MUST file a Job Endangerment Chit on your next  highest
superior.

If you are admonished or ordered to a hearing for NOT  doing  your  job  and
having low statistics and have NOT previously filed a Job Endangerment  Chit
at the time it occurred, you have no defense.

You should not come to a hearing as a defendant and say you  were  prevented
or inhibited from doing your job. Unless you have filed a  Job  Endangerment
Chit previously when your job was  endangered,  the  statement  MAY  NOT  BE
ACCEPTED by the Hearing Officer or the Comm Ev.

POLICY

Most people who have trouble with policy or admin do so simply because  they
don't know it or can't or don't use it.

Such a person can be told anything and tends to take it as fact.

Policy exists to speed the wheels and make a job doable.

But sometimes one has  a  senior  who  continually  says  this  or  that  is
"against policy."

Always respectfully ask for the date of the policy letter and to see a copy
of it.

Then you will know that what you propose is or is not against policy. If  no
policy letter can be produced or if what you proposed is NOT against  policy
and is still refused, you must file a Job Endangerment Chit.

WHERE TO FILE

FORMERLY ONLY ONE COPY WAS WRITTEN. THIS IS NOW MODIFIED.

USING CARBON PAPER, MAKE AN ORIGINAL AND TWO COPIES.

SEND ONE COPY TO THE PERSON BEING FILED ON.

SEND TWO COPIES TO THE ETHICS OFFICER.

THE ETHICS OFFICER WILL FILE ONE IN THE FILE OF THE PERSON NAMED AND ONE  IN
THE FILE OF THE PERSON WRITING THE CHIT.

68



THESE COPIES MUST BE CAREFULLY PRESERVED IN EVENT OF A COMM  EV  OR  HEARING
AS THEY ARE NECESSARY DEFENSE PAPERS.

WHAT TO FILE

Full details, without rancor or discourtesy, must be given  in  the  report,
including time, places and any witnesses.

VEXATIONS FILING

Anyone filing Job Endangerment Chits on superiors or equals or juniors  must
be able to back them up.

One cannot  be  given  an  Ethics  Hearing  or  Comm  Ev  for  a  false  Job
Endangerment Chit unless it contains a  willful  and  knowing  false  report
which endangers somebody else's job. But even so, no Ethics Hearing  may  be
ordered for the fact of  filing,  only  for  a  willful  and  knowing  false
report.

So if your facts are straight, there is no slightest risk in  filing  a  Job
Endangerment Chit. On the contrary, it is dangerous NOT  to  file  one.  For
then one has NO defense.

PERSONAL MATTERS

Sometimes a staff member is imposed on in such a way  as  to  prejudice  his
job such as having to do off-line favors.

This is an occasion for a Job Endangerment Chit.

If one is threatened with punishment if one files a Job  Endangerment  Chit,
one must then file a second chit based on the threat.

If an org as a whole seems to refuse Job Endangerment Chits or ignore  them,
one can be filed with Worldwide simply by sending it direct to  "HCO  Ethics
Worldwide, Saint Hill Manor, East Grinstead, Sussex."

WRONGFUL DISMISSAL

Dismissal without following proper procedure of a Hearing  may  be  sued  in
the Chaplain's Court, Division 6. If  no  Chaplain's  Court  exists  in  the
local org, then one surely does in the Continental  Org  and  one  can  file
such a suit there or at Saint Hill.

CHITS BY SENIORS

Seniors let down by juniors had better file Job  Endangerment  Chits  before
calling a lot of ethics actions. Staff members are seldom willful, they  are
just unknowing. Senior chits on juniors should carry a copy  to  the  junior
on channels as well as Ethics.

FALSE REPORTS

When one finds he has been falsely  reported  upon  he  should  file  a  Job
Endangerment Chit.

HEARINGS ON CHITS

Ethics action is not necessarily taken because a  chit  has  been  filed  on
one. But if too many chits occur in a staff member's file, an  investigation
should be ordered and only if the board so  recommends  does  ethics  action
then occur.

69



STATE OF MIND

Don't sit around muttering because you are being kept from doing your job.

And don't be timid about filing a Job Endangerment Chit.

Don't accept orders you know are against policy or at least unworkable.
File a Job Endangerment Chit,

There is no vast THEY weighing you down. There is only ignorance of policy
or misinterpretation or arbitrary interference.

If you are willing to do your job, then know your job and do it. And if you
are being shoved off so you can't do it, you MUST file a Job Endangerment
Chit.

You have a right to do your job, you know.

L. RO

Found

LRH:jc.rd.gm , 1968

[Note: The reissue expanded the section under "Where to File."]

70



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 30 MAY 1968

                        (Issued from Flag Order 805)

Remirneo

Admin Know-How Series 20

ADMINISTRATION

When admin is OUT, tech is OUT, and ethics has long ceased to exist.

You can never send administrative orders into an  out-admin  area;  you  can
only get ethics in. To do other than to get ethics  in  is  to  only  invite
further noncompliance and dev-t.

In reality, ANY administration is a symptom  of  out-ethics.  Any  order  is
really a criticism. If a  post  was  really  being  worn,  orders  would  be
unnecessary.

If someone started giving me orders, then I would wonder about my  post.  DO
YOUR JOB WITH A PLUS AND A PREDICT. Wear your hat so well,  you  never  need
an order.

Remember: NEVER ISSUE AN ORDER TO GET  AN  ORDER  YOU  HAVE  ALREADY  ISSUED
COMPLIED WITH.  Ethics  has  gone  out.  When  ethics  has  to  be  put  in,
responsibility is out.

L. RON HUBBARD

Founder

LRH:sbjs.rd.gm Copyright C) 1968

71



HUBBARD COMMUNICATIONS

      Saint Hill Manor, East Grinstead, S

      HCO POLICY LETTER OF 25 OCTO

All Execs

Remimeo

Org Exec Course

Introductory     Admin Know-How Series 21

IMPORTANT

ADMIN KNOW-HOW

When trying to get stats up, you must realize that what GOT  stats  up  will
GET stats up.

Using new, unusual experiments can crash your full intention.

In new programs the BUGS have  not  been  worked  out.  It's  like  a  newly
designed piece of machinery. The clutch slips or the h.p. is sour.

New programs are undertaken on a small scale  as  PILOT  PROJECTS.  If  they
work out, good. Spot the bugs, streamline them and prove them. Only then  is
it all right to give them out as broad orders.

So it isn't good for an EC  to  hand  out  strings  of  orders.  Or  for  an
executive to start a lot of new projects.

There is a thing called STANDARD ADMIN. It comes from the policy letters.

When we produced the wild, soaring tech stats with the Sea  Org  Class  VIII
Auditor program, IT WAS BY PUTTING IN THE EXACT  PROCESSES  AND  GRADES.  By
going super standard, we got 100% case gain.

It is the same with policy. If  you  get  an  org  in  with  super  standard
policypromotion, form and admin-the stats SOAR.

TELEX ORDERS

Instead of sending out a mad avalanche of orders on telex,  an  exec  should
only send the number and date of the Pol Ltr he wants  in  AND  THEN  SHOULD
RIDE THAT ONE ORDER until it is in.

To choose WHAT policy letter is  of  course  the  trick.  One  has  to  know
something about the conditions of the org before sending the order.

TRYING TO GET ALL POL LTRS IN at  once  can  also  swamp  an  org.  "Get  on
policy" is a meaningless remark. Get on such and such a  policy,  if  it  is
obviously out, is a very valuable action.

GENERAL EXEC ACTIONS

EDs are there to say WHAT policy should be concentrated on, not to give  new
orders.

An executive who is wise, gets in policy on a gradient  (little  by  little,
building it up higher and higher. keeping the old in  while  adding  in  the
new).

To understand how to do  this,  one  must  be  able  to  conceive  of  basic
outnesses. It requires real genius to discover how gross and  how  basic  an
outness can be.

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An exec pounds away with a high-level policy on how  to  do  accounting.  Is
his face red when he finds the reason for the muddle  is  that  there  isn't
anyone in the division!!!

Once we almost "did our nut" trying to find what  outness  had  unmocked  an
org. All sorts of involved conclusions were reached. All  manner  of  orders
given without any improvement. And then "murder outed." EVERY  Registrar  in
the org had been removed and no new  ones  appointed.  The  public  couldn't
find anyone to sign them up.

I once sent a continent into Power simply by discovering  that  it  had  not
appointed people to the posts of Exec Sec in any org! How "out" can it  get?
As soon as Exec Secs were appointed, the whole continent went into Power.

I once read an ED which (a) removed all executives  but  one  and  then  (b)
gave 20 complex orders "to be done at once."  The  one  remaining  personnel
could not have executed any of them. I at once canceled ALL EDs  not  issued
by myself and shortly up went the stats.

Wondering why no mail is ever mailed does not call for a complex policy.  It
calls for a policy about the form of the org, how it must  have  Exec  Secs,
divisional secs. For there to be no mail going out  can  only  mean  there's
nobody on post!

A divisional sec trying to get in his division's policy must look first  for
GROSS outnesses. They are never small. And then  he  must  get  them  in  by
policy. Then they'll stay in.

There IS a standard admin. It deals in simplicities.  People  are  on  post.
Particles flow. Promotion is done. Tech is delivered. The org  board  is  up
and is followed.

If policy isn't in at that level of largeness, it will never go in on
higher points.

Knowing an org inside out is also knowing who to tell to do  what  and  what
policy to get in when. It's like knowing how to drive a car. It won't go  if
you don't know where the ignition switch is located. Policy outnesses  occur
and unusual ideas are put forth only by those who don't know what  is  usual
in the first place.

Like standard tech, in standard policy the results come from getting in  the
basics and doing them well.

L. RON HUBBARD

Founder

LRH:jp.ei.rd.gm Copyright C) 1968

73



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 SEPTEMBER 1969

Remimeo

Senior OEC

Admin Know-How Series 22

THE KEY INGREDIENTS

When we look at organization in its most simple form, when we  seek  certain
key actions or circumstances that make organization work,  when  we  need  a
very simple, very vital rundown to teach people that will  produce  results,
we find only a few points we need to stress.

The purpose of organization is TO MAKE PLANNING BECOME ACTUALITY.

Organization is not just a fancy, complex system, done  for  its  own  sake.
That is bureaucracy at its worst. Org boards for the  sake  of  org  boards,
graphs for the sake of graphs, rules for the sake of rules only  add  up  to
failures.

The only virtue (not always a bad one) of a complex,  unwieldy,  meaningless
bureaucratic structure is that it provides jobs for the friends of those  in
control. If it does not also bring about burdensome taxation and  threatened
bankruptcy by reason of the expense of maintaining it, and if  it  does  not
saddle a people  or  production  employees  with  militant  inspections  and
needless control, organization for the sake of providing employment  is  not
evil but beyond providing employment is useless, and  only  when  given  too
much authority is it destructive.

The kings of France and other lands used to  invent  titles  and  duties  to
give activity to the hordes of noble  hangers-on  to  keep  them  at  court,
under surveillance, and out of mischief out  in  the  provinces  where  they
might stir up their own people. "Keeper of the Footstools," "Holder  of  the
Royal Nightgown" and other such titles were fought  for,  bought,  sold  and
held with ferocity.

Status-seeking, the effort to become more  important  and  have  a  personal
reason for being and for  being  respected,  gets  in  the  road  of  honest
efforts to effectively organize in order to get something done, in order  to
make something economically sound.

Organization for its own sake, in actual practice, usually erects a  monster
that becomes so hard to live with that  it  becomes  overthrown.  Production
losses, high taxes, irritating or fearsome interference with the  people  or
actual producers invites and  accomplishes  bankruptcy  or  revolt,  usually
both even in commercial companies.

Therefore to be meaningful, useful and lasting, an organization has  to  fit
into the definition above:

TO MAKE PLANNING BECOME ACTUALITY.

In companies and countries there is no real lack of dreaming.  All  but  the
most depraved heads of companies or states wish to see specific  or  general
improvement. This is also true of their executives  and,  as  it  forms  the
basis of nearly all revolts, it is certainly true of workers.  From  top  to
bottom, then, there is, in the large majority, a desire for improvement.

More food, more profit, more pay, more facilities,  and,  in  general,  more
and better of whatever  they  believe  is  good  or  beneficial.  This  also
includes less of what they generally consider to be bad.

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Programs which obtain general support consist of more of what is  beneficial
and less of what is detrimental. "More food, less disease," "more  beautiful
buildings, less hovels," "more leisure, less  work,"  "more  activity,  less
unemployment," are typical of valuable and acceptable programs.

But only to have a program is  to  have  only  a  dream.  In  companies,  in
political parties, useful programs are very numerous. They suffer only  from
a lack of execution.

All sorts of variations of program failure occur. The program  is  too  big.
It is not generally considered desirable. It is not needed at all. It  would
benefit only a few. Such are surface reasons. The basic reason  is  lack  of
organization know-how.

Any program, too ambitious, partially  acceptable,  needed  or  not  needed,
could be put into effect if properly organized.

The five-year plans of some nations which are currently in vogue are  almost
all very valuable and almost all fall short of their objectives. The  reason
is not that they are unreal, too ambitious or  generally  unacceptable.  The
reason for any such failure is lack of organization.

It is not Man's dreams that fail him. It is the lack  of  know-how  required
to bring those dreams into actuality.

Good administration has two distinct targets:

1.    To perpetuate an existing company, culture, or society

2.    To make planning become actuality.

Given a base on which to operate-which is to  say  land,  people,  equipment
and a culture-one needs a good administrative pattern of some sort  just  to
maintain it.

Thus I and 2 above become 2 only. The plan  is  "to  continue  the  existing
entity." No company or country continues unless  one  continues  to  put  it
there. Thus an administrative system of some sort, no matter how  crude,  is
necessary to perpetuate any group or any subdivision  of  a  group.  Even  a
king or headman or manager who has no other supporting system  to  whom  one
can bring disputes about land or water or pay is an  administrative  system.
The foreman of a labor gang that only  loads  trucks  has  an  astonishingly
complex administrative system at work.

Companies and countries do not work just because they are there  or  because
they are traditional. They are continuously put  there  by  one  or  another
form of administration.

When a whole system of admin moves out or gets lost or  forgotten,  collapse
occurs unless a new or substitute system is at once moved into place.

Changing the head of a department, much less a  general  manager  and  much,
much less a ruler, can destroy a portion or the whole since the old  system,
unknown, disregarded or forgotten, may cease and  no  new  system  which  is
understood is put in its place.  Frequent  transfers  within  a  company  or
country can keep the entire group  small,  disordered  and  confused,  since
such transfers destroy what little administration there might have been.

Thus, if administrative shifts or errors or lack can collapse  any  type  of
group, it is vital to know the basic subject of organization.

Even if the group is at effect-which is to say originates nothing  but  only
defends in the face of threatened disaster, it still must plan.  And  if  it
plans, somehow it must  get  the  plan  executed  or  done.  Even  a  simple
situation of an attacked fortress has to be defended by planning  and  doing
the plan, no matter  how  crude.  The  order,  "Repel  the  invader  who  is
storming the south wall," is the result of observation and planning no

75



matter how brief or unthorough. Getting the south wall  defended  occurs  by
some system of administration even if it only consists of sergeants  hearing
the order and pushing their men to the south wall.

A company with heavy debts has to plan even if  it  is  just  to  stall  off
creditors. And some administrative system has  to  exist  even  to  do  only
that.

The terrible dismay of a young leader who plans a  great  and  powerful  new
era only to find himself dealing with old and weak faults,  is  attributable
not to his "foolish ambition" or "lack  of  reality"  but  to  his  lack  of
organizational know-how.

Even elected presidents or prime ministers of  democracies  are  victims  of
such terrible dismay. They do not, as is routinely  asserted,  "go  back  on
their campaign promises" or "betray the people."  They,  as  well  as  their
members of parliament, simply lack the  rudiments  of  organizational  know-
how. They cannot put their campaign promises into effect  not  because  they
are too high-flown but because they are politicians not administrators.

To some men it seems enough to dream a wonderful dream.  Just  because  they
dreamed it they feel it should now take place.  They  become  very  provoked
when it does not occur.

Whole nations, to say nothing of commercial firms or  societies  or  groups,
have spent decades in floundering  turmoil  because  the  basic  dreams  and
plans were never brought to fruition.

Whether one is planning for the affluence of the Appalachian Mountains or  a
new loading shed closer to the highway, the gap between  the  plan  and  the
actuality will be found to be lack of administrative know-how.

Technical ignorance, finance, even lack of  authority  and  unreal  planning
itself are none of them true barriers between planning and actuality.

Thus, we come to the exact most basic steps that comprise administration.

First is OBSERVATION. From beginning to end,  observation  must  serve  both
those in charge and any others who plan. When observation is  lacking,  then
planning itself as well as any  and  all  progress  can  become  unreal  and
orders faulty and  destructive.  Observation,  in  essence,  must  be  TRUE.
Nothing must muddy it or color it as  this  can  lead  to  gross  errors  in
action and training.

Next is PLANNING itself. Planning is based on dreams but it must  be  fitted
to what is needed and wanted and  what  men  can  do,  even  with  stretched
imaginations or misgivings. Planning has to be targeted  and  scheduled  and
laid out in steps and gradients or one will be laying railroad  tracks  that
pass through oceans or boring tunnels in mountains  that  do  not  exist  or
building penthouses without putting any building under  them  to  hold  them
up.

The essence of planning is COMMUNICATION and the communication must be  such
that it can be understood and will not be misunderstood.  For  unless  those
who oversee and those who do, know what their part  of  the  plan  is,  they
cannot execute their share and very well  may  oversee  and  do  quite  some
other action, leaving a monstrous gap and  even  a  structure  that  ate  up
their time and funds but now has to be torn down.

The next is SUPERVISION and supervision is dually needful. It  serves  as  a
relay point to which plans can be communicated and from  which  observations
as  reports  can  be  received;  and  it  serves  as  the   terminal   which
communicates the plans as orders and sees that they are actually done.  This
gives one the genus of the org board as a central ordering point  which  has
other relay ordering points taking care of their part of the

76



whole plan or program. These points are often also  the  points  which  care
for local occurrences which must be handled, and their frailty is that  they
become so  involved  with  local  occurrences,  oddities  and  purely  local
concerns that they do not or  can  not  give  any  attention  to  receiving,
relaying and overseeing their part of the main plan.

Then there are the PRODUCERS who produce the service  or  the  structure  or
the product required by the plan. Many plans are marvelous in  all  respects
but putting somebody there to actually DO the  required  actions  that  make
the plan real. The  primary  fault  is  to  use  persons  who  already  have
projects and duties to which  they  are  committed  and,  with  their  local
knowledge, see must be continued at any cost but who are forced  to  abandon
existing programs or duties to start on this new  activity,  solely  because
the new activity has the stress given it in orders and  the  old  activities
are seemingly ordered left alone. Old companies and old countries  could  be
said to be "that collection of incomplete and abandoned  projects  which  is
confused and failing."

Finally there is the USER, those who will use or benefit  from  the  program
when it is realized and completed. When planning fails to take this  element
into account, only  then  can  the  whole  program  fail  utterly,  for  it,
regardless of dreams, labor and expense, is finally seen to be of  no  value
anyway. Thus all great programs begin with an understanding or a  survey  of
what is needed and wanted; and a nose and value count of those who will  use
it; and a costing action in time, labor, materials and finance, compared  to
the value of it, even if only aesthetic, of those who will  use  it  in  any
way if only to know they have it or to be proud of it or to feel  better  or
stronger because they have done it.

Thus one gets the points which are the true administrative points:

1.    OBSERVATION even down to discovering the users and what is needed and
wanted.

2.     PLANNING  which  includes  imaginative  conception  and   intelligent
timing, targeting and drafting of the plans so they can be communicated  and
assigned.

3.    COMMUNICATING which includes receiving and understanding plans and
their portion and relaying them to others so that they can be understood.

4-    SUPERVISION which sees that that which is communicated is done in
actuality.

5.    PRODUCTION which does the actions or services which are planned,
communicated and supervised.

6.    USERS by which the product or service or completed plan is used.

Administrative systems or organizations which lack at  least  the  rudiments
of the above system will not bring off the  dream  and  will  accumulate  an
enormous lot of uncompleted  actions.  Not  a  few  failures,  bankruptcies,
overthrows and revolutions have occurred because one or  all  of  the  above
points were awry in an existing organization.

The amount of heroic executive overwork which comes  from  the  omission  of
one or more of these vital essential points accounts for  the  ulcers  which
are the occupational disease of those in charge.

When some or all these points are awry or gone, an  executive  or  ruler  or
his minister is reduced to an anxiety which can only watch for the  symptoms
of bankruptcy or attack or revolt.

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Even if so reduced, an executive who fends off disaster while getting  in  a
system which satisfies the above points has an  enormously  bettered  chance
of winning at long last.

The dual nature of an administrative system or an organization now becomes

plain.

Let us pry apart I and 2 above. The effort to hold an existing  organization
together is really different than trying to get a plan  into  actuality.  In
practice, one has an organization of some sort. It has functions and it  has
local concerns and problems. And it  has  programs  and  actions  from  past
control centrals or which were locally generated.

To push  in  upon  this  plans  which,  no  matter  how  well  conceived  or
intentioned, are  additional  to  its  load  will  cause  a  great  deal  of
confusion, incomplete projects left dangling and general upset.

To place new programs into action, two prior actions are necessary:

A.    Put in a whole new system paralleling the old existing system.

B.    Survey the old system and its existing programs to preserve them,
eradicate them or combine them with the new plans.

To leave A and B undone is to court disaster. Whether one is  aware  of  the
old programs or the old organization or not, THEY REMAIN AND WILL  CONTINUE-
even if only as a pile of undone, unsorted  papers  nobody  knows  where  to
file or as a pile of odd unfinished masonry  some  future  generation  can't
identify or will identify with scorn of administrations in general.

New leaders are sometimes looked upon as a  worse  scourge  than  a  foreign
enemy and new patterns of rule  are  often  subjected  to  overthrow  simply
because they did not, out of ignorance or laziness, do A and B above.

One sometimes finds a company unit  or  a  military  officer  left  in  some
unheard of place for years, at continuing expense, guarding or  nibbling  at
some project in a bewildered or philosophic fashion.

The activity remained unremembered, unhandled  when  a  new  broom  and  new
planners entered the scene.

This can get so bad that a company or a nation's resources can be broken  to
bits. The old plans, disorganized, not known,  discredited,  are  superseded
by new plans and new ambitions. The old plans are in the  road  of  the  new
plans and the new plans prevent old plans from completing. The result is  an
impasse. And the men in charge, even at  the  level  of  junior  executives,
become even more puzzled and  bewildered  than  the  workers  and  begin  to
believe no new plans can ever be done, blame the ignorance of  the  populace
and the cruelty of fate and give up.

All they had to do was put in a complete new parallel system as in the I  to
6 outline above for their new plans and to meanwhile preserve  and  continue
the  old  system  while  they  surveyed  for  preservation,  eradication  or
combination of it. It is sometimes even good sense to continue old  projects
to completion currently with new projects just to maintain stability in  the
company or country and somehow find new finance and new people for  the  new
plans. It is often far less costly than to simply confuse everything.

Furthermore, all NEW and untried plans should have PILOT PROJECTS  which  by
test and use must be successful before one incorporates them and  their  new
workers into the old system as a parallel dependable activity.

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A "chicken in every pot" as a  campaign  promise  could  easily  succeed  if
organized as in I to 6 above.

There is a lot to organization. It requires trained administrators  who  can
forward the programs. But a "trained" administrator who does not  grasp  the
principles of organization itself is only a clerk.

At this current writing Man has  not  had  administrative  training  centers
where actual organization was taught. It was learned by "experience"  or  by
working in  an  organization  that  was  already  functioning.  But  as  the
principles were not the same company to company and nation  to  nation,  the
differences of background experiences of any set of administrators  differed
to such a degree that no new corps could be assembled as a team.

Thus it was said to require a  quarter  to  a  half  a  century  to  make  a
company. But the number of ineffective bureaucracies and  national  failures
which existed stated clearly that there were too few skilled  administrators
and too few training activities.

Man's happiness and the longevity of companies and states apparently  depend
upon organizational know-how. Hiring specialized experts to get one  out  of
trouble is a poor substitute for knowing what it is all about in  the  first
place.

Organization is actually a simple subject, based on  a  few  basic  patterns
which, if applied, produce success.

If one would dream and see his dreams an actuality, one must  also  be  able
to organize and to train organizational men who will make those dreams  come
true.

L. RON HUBBARD

Founder

LRH:rs.ei.rd.gm

79



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 OCTOBER 1969

Remimeo

Admin Know-How Series 23

DEV-T

The entire, complete and only major source of dev-t is ignorance or  failure
to grasp CONFUSION AND THE STABLE DATUM as  covered  fully  in  Problems  of
Work (and LRH tapes of 1956).

Unless an executive or staff member fully grasps  the  basic  principles  of
confusion and a stable datum then the  org  board  is  completely  over  his
head, the reason for posts is not understood and dev-t becomes routine.

A post on the org board is the STABLE POINT. If it is not held  by  someone,
it will generate confusion. If the person that is holding  it  isn't  really
holding it, the confusion inherent in that area on the org board  zooms  all
over the place near and far.

Any executive getting dev-t knows at once what posts are  not  held  because
dev-t is the confusion that  should  have  been  handled  in  that  area  by
someone on post. With that stable terminal not stable, dev-t shoots about.

Excessive transfers in an org promote fantastic dev-t as the  posts  do  not
really get held  as  people  are  on  them  too  briefly.  "Musical  chairs"
(excessive transfers) can destroy an org or area.

The remedy is to get people trained up (OEQ to handle their  posts,  to  get
people on post who do handle their posts.

An essential part of such training is a study of  Problems  of  Work  and  a
full grasp of how a stable terminal handles and prevents confusion.  If  the
person cannot fully grasp  this  principle,  he  is  below  the  ability  to
conceive  of  terminals  and  barely  able  to  perceive  lines.  He  cannot
communicate since there are no terminals to him.

REMOTE AREAS

If an area remote from an executive does  not  contain  a  stable  point  to
which he can send his comm and get it handled, then  his  comm  only  enters
dev-t into the area and he gets back floods of despatches and  problems  but
no real handling. The area is not organized and does not have people  in  it
who have grasped Problems of Work or how it applies to an org board or  even
why there is an org board.

Communicating into a disorganized area without first organizing it  to  have
at least one stable terminal is foolishness.

An org board is  that  arrangement  of  persons,  lines  and  actions  which
classifies types of confusions and gives a stable terminal to each type.  It
is as effective as its people can conceive of terminals and  understand  the
basic principle of confusions and stable data.

A good executive arranges personnel and  organization  to  handle  types  of
actions and confusions. He does not broadly  comm  into  disorganized  areas
except to organize them.

Any area which gives an executive excessively developed traffic (dev-t) is
an area

80



where the persons supposed to be the stable terminals in that area  are  not
holding their posts and do NOT understand what they are or why  and  do  not
know what an  org  board  is  and  have  never  understood  the  Scientology
fundamental known as confusion and the stable  datum.  They  are  NOT  doing
their post or organizing their areas.

An executive's evidence of this is the receipt from there of dev-t.

The executive's action is to get  somebody  THERE,  get  him  to  understand
confusion and the stable datum  and  how  it  applies  to  posts  as  stable
terminals, get him trained up and  use  that  now  stable  point  to  handle
further confusions.

If an executive goes  on  handling  dev-t  of  people  who  are  not  stable
terminals that handle their areas, HE WILL BE FORCED TO WORK HARDER THAN  IF
THE POST WERE EMPTY. At least if it  were  empty,  he  would  get  only  the
confusion of that area. As it  is,  if  the  post  is  improperly  held  and
wobbly, he gets not only the area confusion but also  the  enturbulation  of
the wobbly incumbent.

Volumes could be  written  about  this  subject.  But  there  is  no  reason
whatever not to be able to grasp the fundamentals concerning  confusion  and
stable data, confusion and stable terminals, apply  it  to  org  boards,  to
areas and to expansion.

Chaos is the basic situation in this universe. To handle it you put in
order.

Order goes in by being and making stable terminals arranged to handle  types
of action and confusion.

In organizing units, sections, divs, depts,  orgs  or  areas  of  orgs,  you
build by stable terminals.

You solve areas by reinforcing stable terminals.

Executives who do not grasp this live lives of total harassment and
confusion.

The whole secret of organization, the whole  problem  of  dev-t,  the  basic
ingredient of all expansion is contained in this.

L. RON HUBBARD

Founder

LRH:rs.ldm.ei.rd.gm

81



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 8 MAY 1970

Remimeo

Admin Know-How Series 24

DISTRACTION AND NOISE

Noise is a technical term used in the field of public relations to  describe
the medley of messages hitting a  member  of  a  public  besides  one's  own
message.

The clamoring for attention of  many  different  people,  firms,  situations
brings about a condition where another voice or despatch is  just  ONE  MORE
DISTRACTION.

We can profitably use NOISE to describe the demands for attention  put  upon
a staff member, executive, office or org that  is  being  distracted  off  a
main line of action.

A law evolves-THOSE INDIVIDUALS OR AREAS THAT ARE THE  LEAST  WELL-ORGANIZED
ARE AFFECTED THE MOST BY DISTRACTIONS.

Let us take an office in Gus Falls,  South  Alabama.  The  Public  Exec  Sec
chooses personnel and audits, the HCO ES lectures, the OES  mows  the  lawn.
The rest of the staff are assigned to no divisions  particularly,  they  try
to cope but the org makes  little  money,  naturally,  so  they  "moonlight"
(have other jobs).

The place is a mess, of course.  Public,  bills  collectors,  salesmen,  all
clamor endlessly for the org's attention. The more  disorganized  the  place
is, the more messages each distractor has to originate to get  anyone  there
to listen. Routine actions, having no lines on which to travel  and  no  one
to handle them, become  frantic  oft  repeated  emergencies  each  one  with
multiples of messages.

SO, you are an executive in a remote city. This Gus Falls Office is in your
area.

SO, you write them despatches.

You get no answers.

You write more despatches.

And they go unanswered.

Gus Falls just isn't reporting up.

WHY? You are just one more noise in a screaming chaos.

The office manifests mainly DEFENSE. It is being hit  so  hard  with  random
voices and despatches that it develops  a  ridge  against  all  voices,  all
despatches.

Anything from you, if it gets read at all, is resented  as  it's  "just  one
more awful impossible."

So there are only three conditions wherein you get no answers or compliance-


1.    There is no one there.

2.    Your terminal there isn't wearing his or her hat.

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3.    The place is a howling disorganized madhouse.

The remotely located executive who keeps writing  despatches  into  an  area
and gets no action or answers has these situations:

A.    His orders are unreal in that they are not based on good observation.

B.    His orders are contrary to policy and would produce upsets or
disorganization.

C.    There is no one there at the receipt point.

D.    The terminal addressed isn't wearing his/her hat.

E.    The place is a howling disorganized madhouse.

In any of these cases we get this law:

WHEN YOUR DESPATCHES OR ORDERS AREN'T GETTING ANSWERED  OR  ACTIONED,  DON'T
EVER KEEP ISSUING MORE OF THE SAME.

In the special case of E you haven't got a chance of attracting attention.

There are many things you can do in the case of E.

Whatever you do, if  observation  and  real  data  to  hand  (not  rumor  or
opinion) shows E to be the case, there is one basic rule:

WHEN A PERSONNEL OR PLACE IS DISTRACTED, GET IN ONLY EASY BASICS  ONE  AT  A
TIME.

Problems of Work data applies. Stable datum and confusion.

Whatever you do, you have to get correct factual observation that is  actual
data, not propaganda or opinion.

It could be somebody there is suppressive and is tearing the place apart.

It could be they just don't know what organization is, that  it  means  that
specialized personnel are assigned to different posts with  specific  duties
and  that  command  and  flow   lines   are   established   throughout   the
organization. Maybe they don't know that.

It could be only the top strata is in a mess with  the  staff  working  well
out of sight from a remote observer. That has happened.

A remote executive or one on the ground confronting this sort of thing  gets
his  first  inkling  of  it  from  no-reports  or  noncompliance   or   slow
compliance.

His next action is to collect factual data on actual conditions.

His next action is to find out WHO if anyone  is  disorganizing  the  place,
and handle that one. But this is with care as such action if remotely  taken
can be wrong and the place will just disintegrate.

His next action is to get in simple basics like an  org  board,  then  hats,
then a comm center, then  recruitment,  then  decent  promotion  and  decent
service.

Often such a group as in E has generated howling financial  or  even  public
emergencies and these are what are screaming for attention. The thing to  do
is to put a special section IN CHARGE OF THAT EMERGENCY and  route  anything
related to it to that special section for full  orderly  handling.  Get  the
rest of the place properly organized and conducting business as usual.

83



It takes a while for an organized activity such as an  office  to  become  a
shattered wreck. However, an SP put into  it  as  an  exec  can  speed  this
process up greatly.

Therefore, anyone seeking to  handle  the  confused  area  must  detect  the
symptoms early and handle early.

THE LATER THE SITUATION IS NOTICED, THE HARDER IT WILL BE,  AND  THE  LONGER
IT WILL TAKE TO BUILD IT BACK UP AGAIN.

The next time you get a DEFENSIVE ANSWER, A SLOW COMPLIANCE or a  NO-REPORT,
realize that you have on your hands right there, whether in  one  person  or
an org, the symptoms of a situation you must handle. It is any one  of  from
A to E above.

Honestly and dispassionately figure out which one it is. And realize  if  it
is D (not wearing a hat) it could be a symptom of an SP so  watch  it  until
you know his (a) case status, (b) ethics record and  (c)  production  record
or you could make a mistake.

If it's any one of these,  A  to  E,  you  can  find  out  by  dispassionate
analysis based on facts.

But in any event the situation MUST  be  handled.  What  is  wrong  must  be
remedied.

L. RON HUBBARD

Founder

LRH:kjm.rd.gm

84



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 22 JULY 1971

Remirneo

All Bureaux

      Hats

OEC

Admin Know-How Series 25

CLOs, OTLs AND FLAG

(References: HCO Policy Letter of 14 September 1969, Admin Know-How Series
22, "THE KEY INGREDIENTS," HCO Policy Letter of 8 May 1970, "DISTRACTION
AND NOISE" and the P/Ls of THE DATA SERIES.)

PURPOSE OF CLOs

TO MAKE PLANNING  BECOME  AN  ACTUALITY  is  the  key  message  of  the  key
ingredients.

This also unlocks the  door  to  an  understanding  of  Continental  Liaison
Offices and Operation and Transport Liaison Offices.

Unless the staff of a CLO or OTL knows the  purpose  of  its  existence,  it
ceases to exist as it will be of no real use.

A CLO or OTL must be of USE to FLAG and ORGS and franchises and the  public.
If it is not, then it will become valueless and a burden.

If it does know and if every staff member in it knows its purpose,  then  it
will prosper and its staff will prosper. If not,  it  will  become  unmocked
and confused.

THE MAJOR PURPOSE OF A CLO OR  OTL  IS  TO  MAKE  FLAG  PLANNING  BECOME  AN
ACTUALITY IN ORGS, FRANCHISES AND THEREBY THE VARIOUS PUBLICS.

STEPS

In THE KEY INGREDIENTS you find a cycle of management as follows:

1.    Observation

2.    Planning

3.    Communicating

4.    Supervision

5.    Production

6.    Users.

Plans in this P/L include Programs and Projects and are the duty of FLAG.

CLOs and OTLs fit exactly at No. I Observation and No. 4 Supervision.

Orgs fit at No. 5 Production and the publics at No. 6 Users.

No. 3 Communication occurs  internally  at  Flag;  between  Flag  and  CLOs;
internally at CLOs; between CLOs and orgs and franchises; and  between  orgs
and franchises  and  the  publics.  There  is  also  internal  communication
amongst the publics

85



and  within  each  public,  known   as   "word-of-mouth   advertising"   and
"goodwill." Laying out this  network  of  communication  is  an  interesting
exercise, for you will see that it is becoming global-over the whole  world.
In addition to increasing understanding, this will give  one  a  concept  of
the true size of  the  operation.  "Publics"  is  a  public  relations  term
meaning a type of "users."

OTLs are an extension of CLOs for the CLO.

If you can conceive of this network of communication, you can then work  out
the remaining KEY INGREDIENTS.

OBSERVATION

Orgs observe for CLOs. OTLs observe for CLOs.

The Stats In-Charge of an org, the Finance Banking Officer of  an  org,  the
Bureaux  Liaison  Officer  in  an  org,  the  owners  of  a  franchise   and
individuals of the publics are all Observers (No.  I  of  Key  Ingredients).
They send their observations to OTLs and to CLOs.

In the Data Bureau of a CLO,  these  observations  are  duplicated  and  CIC
processed for local CLO use but are at once also sent swiftly on to Flag.

In the Data  Bureau  at  Flag,  all  these  observations  are  assembled  by
continent and org and evaluated.

From this Flag evaluation (see Data Series on how it is done  exactly),  No.
2 of the key ingredients, PLANNING can occur. This step, for  our  purposes,
includes finding the major international successes  and  outnesses  and  the
big WHYs or reasons for them. Flag puts these  into  programs  and  projects
and sends them out via CLOs to orgs and sometimes franchises.

CLOs and their OTLs now come into their own. They  SUPERVISE  getting  these
programs and projects in and done. This is the bureaux system's PRODUCTION.

The organization and its production results are  of  course  expressed  with
the publics which are thereby served and increased as USERS.

Thus all the KEY INGREDIENTS line up.

FLAG PLANNING

On Flag the basic overall effort is designed  and  planned.  The  big  broad
situations are spotted and the WHYs (reasons for them) found,

The plans, programs and projects turned out by Flag are  designed  to  press
on with the major international designs and  to  spot  major  falterings  or
outnesses.

The results are policy, tech, programs and projects.

In general, Flag does not work on things that fit only an individual org.

What Flag plans and makes projects for fits a type of org or  all  orgs  and
are for the applications of orgs to the various publics.

By proven statistics, what Flag plans will improve or boom an area if it is
applied.

Where Flag planning,  represented  by  programs  or  projects,  is  actually
gotten into full action in an org, that org will boom.

Also, by long historical proof, where an org or area neglects or doesn't
execute

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Flag planning and its programs and projects, there is a collapse.

This isn't PR. This is the story of the years.

If Flag planning got into full activity in every area, we would have the
planet.

For instance, the GI boom is the old Flag tours orders suddenly  reactivated
and carried brilliantly into effect in the Pac area. Flag was putting  tours
data and tours training together for a year  before  the  present  GI  boom.
This was then beautifully carried out by  splendid  initiative  in  the  Pac
area and spread.

The  resulting  production  of  GI  came  about  because  Sea  Org  Officers
brilliantly did it with a spark and spirit beautiful to behold. And  it  was
successful  because  orgs  were  now  being  headed  by  Flag  trained  Flag
Executive Briefing Course grads. Policy was  now  going  in.  And  the  only
falter was where policy was departed from or was not asked for.

So Flag planning if executed has a long historical background of huge
success.

CLO ACTIONS

This brings us straight to the real duties of a Continental  Liaison  Office
and its branches called OTLs.

A CLO is in charge of its continental areas. It has direct comm  with  orgs.
Has or will have Finance Banking Officers and Bureaux  Liaison  Officers  in
each org.

The first duty of a CLO is to observe and get those  observations  into  its
own Continental Information Center (CIC) and observations  and  reports  and
lists of its own activities to Flag.

What are these activities? They are

A.    To observe.

B.    To send observations by users, orgs and the publics to Flag.

C.    To push in Flag programs and projects.

D.    To FIND the WHY (reasons) that any Flag  program  or  project  is  not
going in, in an org or franchise or public and REMEDY THAT WHY so  the  Flag
program or project DOES go in.

E.    Keep itself set up and operating on the pattern planned for its
establishment by Flag.

F.    Handle sudden emergencies.

Those are the TOTAL duties of a CLO.

They are also the duties of an OTL in respect to its CLO.

ORGS

Orgs and franchises push in Flag programs and  projects  by  department  and
division and also by individual staff members.

At org level and the level of its publics, the org is doing A to F above.

A Bureaux Liaison Officer or an FBO in an org is doing A to F and  answering
to an OTL or CLO.

87



The OTL handles one or more orgs as an expanded arm of the  CLO  and  it  is
doing A to F.

The CLO is working at the level of individual orgs and franchises and  their
publics through them.

Flag works through CLOs, then to OTLs or orgs to the publics.

It would be highly informative to lay all this out in clay. For  it  IS  the
winning pattern. Where it is not understood, an area breaks down  and  needs
emergency actions.

SIMPLICITY

The floods of information pouring through these lines make them  appear  far
more complex than they are.

That a CLO runs its own service org  does  not  violate  this  in  any  way.
That's just another org to run.

Let us take an actual example.

Data coming in to Flag over a long period indicated few auditors being  made
and  slow  (unbelievably  slow)  courses  over  the  whole  world.   Several
observations were ordered by Flag at one time and another.

The situation was very serious. Slow courses  meant  no  real  delivery.  It
meant an org had to work too long  for  too  low  a  payment.  It  meant  no
auditors available. It meant no students would enroll because they  couldn't
spare that much time. Orgs couldn't get Class VIs home from SHSBCs.

Observations piled up and up and up.  A  three-week  course  on  Flag  would
become a six-month course in orgs. It defied belief.

After a long, long study of all this  and  first-hand  experience  at  Flag,
some Whys began to show up. The HCO P/L 15 Mar 71 "What Is  a  Course?"  was
one answer. The Flag Course Supervisors Course designed to be taught in  the
service org of a CLO. TRs the Hard Way came out of this.

Each one of these, and projects based on them, went out from  Flag  to  CLOs
and thus to orgs.

Then the big outness exploded into view.  The  June-Sept  1964  Study  Tapes
were NOT in use in courses!!!! That was the major WHY.

At once the Word Clearing Tech was repiloted on  Flag.  Simplified  versions
were worked out. HCOBs were written.

Projects to get them in were written.

A whole series of drills, one for every  possible  Supervisor  action,  were
swiftly put into form by an on-Flag mission and piloted.

These, as programs and projects, are pouring out to CLOs to  orgs  by  rapid
communication as fast as packaged from Training and Service Bu Flag.

Assistant Training and Service Aides in CLO  Training  and  Service  Bureaux
should see that they get into each org and franchise, using CLO's  LRH  Comm
and External Comm Bureaux.

In orgs, LRH Comms or Bureaux Liaison Officers should get them  checked  out
and in.

88



And EVERY ORG WHICH DOES NOT AT ONCE GET THEM IN  AND  IN  FULL  USE  is  of
immediate interest to the CLO Data Bureau. The Tr and  Serv  Assistant  Aide
should be working to get his org contacts to give him data to find  out  WHY
they are not IN. And Action should be alerted so it can send a  CLO  Mission
to find out WHY or remedy the already found WHY.

OTHER DUTIES

"Noise" (HCO P/L 8 May 1970, Distraction and Noise) is the main reason  this
does not happen.

The org is in a flap of unworn hats, no personnel and the milk bill.

The CLO Tr and Serv Bu is trying to handle a sick exec.

Noise! Every bit of noise being generated is  because  the  main  situations
are not being handled, only the dev-t around them.

Like an HAS who has no time to hire because he  is  so  busy  with  internal
personnel demands, an org or CLO  can  be  so  knocked  around  by  nonsense
generated on the fringes of an unhandled situation that the real reasons  do
not get handled.

So "other duties" seem to be so important in an org or a CLO  that  they  do
not carry  the  line  through.  Why  are  they  so  distracted  by  so  many
outnesses? Because the main line is not in!

There are NO other duties more important than remedying the reason  one  has
so many other duties!

FLAG REMEDIES

The remedies come from Flag. They are based on area observations  from  many
sources.

CLO DUTY EXAMPLE

To construct an example of a real CLO in action.

The Asst Management Aide  of  a  CLO  finds  her  project  board  blank  for
Bongville. CIC of the CLO states no reports are  coming  in  from  Bongville
org. The last stats sent were poor. There is natter in Bongville's field.

On A/Mgmt Aide request, CLO's Action Bureau writes the MOs for,  briefs  and
fires a single observer missionaire.

In Bongville, the CLO's missionaire manages  to  find  the  "Exec  Director"
Bongville (who is  not  the  ED  supposed  to  be  there  according  to  CLO
personnel records).

The following conversation takes place:

The org's ED says, "Your CLO has no reality on what's going on here in  this
org." Question: (from CLO missionaire) Do you ever send any data or  reports
or stats? "No, we haven't time for that. We keep going broke." Question:  Do
you know Flag policy relating to pricing and financial planning? "No,  we're
too busy. All this questioning is just  too  distracting.  The  landlord  is
threatening eviction." Question: How much money have  you  invoiced  in  the
last month? "Oh,  very  little."  Question:  But  I  see  you  have  a  full
classroom of students. Have they all paid? "Oh, they've been  here  a  year.
They paid long ago ... I think."  Question:  Have  you  put  the  Flag  Word
Clearing Project into effect so they'll finish their  courses?  "The  what?"
Question: Have you sent anyone to the CLO Tours Course?  "Please,  I've  got
to go now. The HAS just transferred the

89



Course Super to the Estate Section and our only auditor  to  Ethics  Officer
and I've got to tell our afternoon pcs to come back tomorrow. . . ."

TELEGRAM: TO C/O CLO. ADVISE YOU SEND A MISSION WITH A HAS  AND  AN  AUDITOR
AND FBO TO BONGVILLE FAST TO HOLD IT. SUGGEST TWO  BONGVILLE  STAFF  MEMBERS
TO CLO TOURS COURSE AND TWO OF THESE EXECS TO FEBC.  NO  FLAG  PROJECTS  IN.
CURRENT ED JOQUIM SOKUM DISTRACTED DISCOURTEOUS TO  SO.  CHECK  OF  INVOICES
REVEALS $18,000 UNCOLLECTED FROM  STUDENTS  NOW  ON  COURSE  NEEDS  FBO  AND
FINANCE INSPECTOR TO  SET  UP  TREAS  AND  COLLECT.  ADVISE  GDN  OFFICE  RE
LANDLORD EVICTING ORG. NO A/G HERE. BEST = MISSION BONGVILLE OBSERVER.

Now the observation mission went out  because  the  CLO  Data  Bureau  found
Bongville was not reporting.

This telegram meets up in CLO's  Data  Bureau  CIC  with  a  ton  of  public
complaints in the Bongville area.

A rapid evaluation is done by the CLO CIC Evaluator using any  current  data
-on Bongville.

The WHY taken from CLO CIC evaluation turns out to be an  illegal  promotion
to Bongville ED of a blown PTS staff member from Chongton Org  who  put  the
whole staff in treason and blew them.

The CLO Product Officer goes into action for the product of a functioning
org.

CLO ACTION Mission Orders for a new SO temporary ED and  HAS  for  Bongville
are quickly written, the mission briefed and 24  hours  later  they  are  in
Bongville handling. The GO is put  in  touch  with  the  landlord.  The  CLO
Finance Office sends an FBO.  A/Dissem  Aide  reroutes  a  tour  to  include
Bongville.

The new FBO forces $7,000 in collections by Friday, and gets a Treasury  Sec
on post and hatted and the Flag Invoice Pack goes in.

The HAS phones the fired  Bongville  auditors,  gets  three  back.  Auditing
resumes. Six students are word cleared and completed on course and the  Flag
Intern Pgm goes in and they begin to work in the HGC  making  nine  auditors
now delivering.

The tech member gets the Mini Super Hat on the Course Super. The  Flag  Word
Clearing Pack goes in.

Two tours students and two execs get routed via the CLO for training on  the
Flag checksheet courses.

The ex-ED and the ex-HAS are put on  as  "HCO  Expeditors"  pending  further
handling.

The HAS reverts the org to cancel out the  mad  musical  chairs,  begins  to
recruit, form an expeditor pool, train and hat by Flag  project  orders  and
checksheets.

The temporary SO ED produces by coping.

The scene begins to untangle to the degree that  policy  and  Flag  projects
begin to go in.

The Flag ARC Brk program begins to go in and begins to  straighten  out  ARC
Brks in Central Files.

One month later, the tours students are back from CLO. The  org  is  rebuilt
enough to deliver. Money begins to roll in.

90



Two months later the first FEBC comes back, is genned in as Exec Dir.

The second one returns. Is genned in as HAS.

They are told to get two more people to the FEBC fast and an A/G is sent  to
the GO for training at GO request.

Flag projects are well in.

The CLO mission pulls out.

The org remains stable but is carefully watched by the Asst Management  Aide
at the CLO via her project board.

Meanwhile, all reports and data have been flowing to the CLO and to Flag.

Flag compares its data,  evaluates  this  and  other  orgs.  Finds  ex-staff
members who have blown from an org are uniformly PTS. A local  Flag  project
to develop more data and tech on PTS begins....

And the cycle repeats,

The CLO gets in the PTS project.

When an org doesn't get it in according  to  a  CLO  Management  Bu  project
board, data is looked for in the files and an  evaluation  is  done  on  the
orgs that didn't get it in. If no data, an observer is sent....

And that's the cycle.

The Flag WHY for the Bongville incident would be a  CLO  in  that  area  not
manned up and operating fully and not getting Flag projects in.

The CLO basic WHY that let Bongville go to pieces would be that the CLO  did
not watch its Flag project board  and  did  not  notice  Bongyille  was  not
getting in any projects and was not reporting.

The basic WHY in Bongville was the promotion of unqualified  persons  to  ED
and HAS who did not know or try to get in Flag  projects  and  instead  went
ethics mad when they began to fail.

SUMMARY

A CLO is there to observe and to get Flag programs and projects in.

When a CLO doesn't report or backlogs, it gets Bongvilles.

It handles Bongvilles. It must have its Assistant Aides, its bureaux,
especially a Data Bu, and a Mgmt project board, a Missionaire Unit, and an
Action Bureau to handle Bongvilles.

But every Bongville it has to handle will be because Flag programs and
projects weren't going in, in Bongville and the CLO didn't find WHY they
weren't going in soon enough.

Flag level-international WHYs applying to all orgs.

CLO level-continental WHYs to remedy to get Flag pgms and projects in.

Org level-divisional and departmental and individual WHYs that prevent Flag
programs and projects from going in.

91



So that's the reason for a CLO:

To observe and to send all data to Flag and to continentally find out WHY
Flag projects and programs are not going in, in an org and remedy that WHY
and get the programs and projects in.

That's a CLO.

L. RON HUBBARD

Founder

LRH:sb.bh.gm

92



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER6F 28 JULY 1971

Remitneo

Exec Hats

ADMIN KNOW-HOW No. 26

               (Cancels HCO PL 19 December 69 Executive Duties

                      which canceled HCO PL 19 July 63)

Note: HCO PL 19 July 63 stated that an executive should "get people to get
the work done." HCO PL 19 Dec 69 canceled it and stated other duties.

This cancellation probably robbed some people of a stable datum that they
got people to get the work done.

When an executive was no longer told he should get people to get the work
done, hatting tended to go out and a great deal of overload began to occur
on executive posts.

From an executive not doing "work" the viewpoint swung to the other extreme
that executives only do all the work.

Both policy letters (HCO PL 19 Dec 69 and 19 July 63) were correct in their
way.

Therefore they are restated as follows.

PHA SE I - BEGINNING A NE W A CTI VIT Y

AN EXECUTIVE SINGLE-HANDS WHILE HE TRAINS HIS STAFF.

When he has people producing, functioning well and hatted, he then enters
the next phase-

PHASE II - RUNNING AN ESTABLISHED ACTIVITY

AN EXECUTIVE GETS PEOPLE TO GET THE WORK DONE.

SINGLE-HANDING

By "single-handing" one means do it himself, being the one responsible for
actually handling things.

This phase occurs when an executive is forming up his personnel.

PHASE I IN FULL

(HCO PL 19 Dec 69 Executive Duties, is therefore requoted for this phase of
the activity-he is on the post, most of the rest are new and flubby.)

An executive handles the whole area while he gets people to help.

An executive in charge of an org would "single-hand" (handle it all) while
getting others to handle their jobs in turn.

This gives a practical and workable approximation of what top-stat
executives actually do do.

The executive who sits back and waits for others to act when a situation is
grave can crash an entire activity.

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Essentially an executive is a working individual who can competently  handle
any post or machine or plan under him.

He is a training officer as well. He designates who is to do what  and  sees
that a training action is done by himself or others  to  be  sure  the  post
will be competently held. An executive  who  accepts  the  idea  that  if  a
person has a school degree in "waffing wogglies" or  sewing  on  buttons  he
can at once be  trusted  to  waff  wogglies  or  sew  buttons  is  taking  a
personnel by recommendation, not by his experience with the personnel  whose
work-organization potential has never been tested under  that  executive.  A
camouflaged hole (undetected neglect area) may very well develop in  such  a
circumstance, which  can  suddenly  confront  the  executive  with  a  time-
consuming disaster.

Thus an executive accepts help conditionally until it is demonstrated to  be
help, and meanwhile does not relax his control of a sector below  him  until
he is sure it is functioning.

In this way an executive is one who does and backs  off  spots  continually.
He could be said to always be doing himself out of a job by getting the  job
competently done. However,  in  actual  practice,  as  post  personnel  does
shift, he has to be prepared at any time to wade back in and put it right.

The Supreme Test of an Executive (as in the HCOB Supreme Test of  a  Thetan)
is to MAKE THINGS GO RIGHT.

To  the  degree  he  can  maintain  his  observation,  communicate  and  get
supervision done (see HCO  PL  on  the  Key  Ingredients),  he  can  achieve
production or service and satisfy users.

As  observation  is  often  faulty,  especially  over  long  distances,   as
communication is not always received or studied and as supervision is  often
absent, the executive must develop a sensitivity to indicators of  outnesses
and systems to correct them.

A very good executive knows how to "play the org board" under  him.  He  has
to know every function in it. He has to know who to call on to  do  what  or
he disorganizes things badly.

An executive also has to know neighboring  org  board  arrangements  in  the
same org, the org board of allies and of enemies.

An executive has to know what users need  and  want  and  furnish  it.  When
normal and routine posts fail under him, the executive is of  course  forced
into Non-Existence as an executive, has to find what is  needed  and  wanted
and  produce  it.  He  applies  the  whole  Non-Existence  Formula  to   the
situation.

Only if he does not handle fully  once  he  does  see  an  outness  does  an
executive go into Liability.

An executive deals with the frailty of human  variations  and  distractions.
When these engulf  his  area  and  he  is  confronted  with  the  fruits  of
alteration and noncompliance, of posts not held and  duties  suddenly  found
left undone, it is up to the executive to get them  done  any  way  he  can.
Having handled, he applies the Danger Formula (or lower as  it  appears)  to
the neglected area.

An executive has to be somebody who cares about his job  and  wants  to  get
things done. If he only wishes  the  title  for  status,  he  is  of  course
heading himself and his area for disaster and it could be said that such  an
executive, not meaning to do the job but  only  wanting  the  title,  is  in
Doubt or lower on the third dynamic.

The executive thinks of the area and organization first  and  repairs.  Then
he thinks of the individual and straightens him out.

94



An executive who is worker-oriented winds up hurting all  the  workers.  The
workers depend on the organization. When that is gone they have nothing.

An organization cannot have more taken out of it than is being put into  it.
Efforts to bleed an organization of more blood than it has, destroys it.

The preservation of his organization is a first consideration of an
executive.

In an executive's hands  an  organization  or  one  of  its  areas  must  be
"VIABLE." That is, it must be capable of supporting itself and thus  staying
alive. When his area is parasitic, dependent on others outside  it,  without
producing more than it consumes, the area and  its  workers  are  at  severe
risk and in the natural course of events will be dispensed with, if  not  at
once. eventually.

Thus  an  executive  is  someone  whose  own  sweat  and  energy  keeps   an
organization or an area of it functioning. In this he earns  and  uses  help
and they in turn take over executive roles in their  subordinate  areas  and
keep them alive and producing.

An executive is in the business of SURVIVAL of his area and its  people  and
providing with service or production an abundance which makes the area,  his
own services and that of his subordinates valuable.

If an executive so functions his own survival  and  increase  is  guaranteed
even by natural law. If an executive  functions  for  other  reasons  it  is
certain the ground will vanish from under him eventually  again  by  natural
law.

An executive is in fact a worker who can do all and any of the work  in  the
area he supervises  and  who  can  note  and  work  rapidly  to  repair  any
outnesses observed in the functioning of those actions in his charge.

The best liked executive who is most valued by his workers as  someone  they
need is an executive who functions as described  above.  One  who  seeks  to
survive on favors given and does not otherwise measure up  is  not  in  fact
regarded highly by anyone.

Whatever ideology one finds himself in, the above still applies. The way  to
the top may well be marrying the boss's daughter, but the way to stay  there
still requires the elements described herein. As bosses' daughters are  few,
a sounder way is to learn all the jobs well and study this policy  and  just
become an executive.

PHASE H IN FULL

Now we come to PHASE 11. The executive has inherited from a competent
former executive or has himself built (and has prevented transfers and lack
of apprenticeship from destroying) his unit, department, division, org or
orgs.

Now to continue to single-hand will destroy anything that has been built.

The other policy letter (HCO PL 19 July 1963) now applies and is so
reissued.

When an executive in charge of a working activity continues to retain the
idea "Do all I can," chaos then results. An already formed activity will
collapse.

The only possible datum on which an executive could work effectively in a
formed activity is "Get people to get the work done."

Otherwise the executive does as much as he can and leaves the willing
personnel standing around unhelped and unguided. If we all did this,
Scientology would go nowhere. One auditor can't audit the world. One
personnel cannot do all the work of a Scientology organization.

95



If each person in the organization wears all the hats or one wears  all  and
the rest wear none, you will have

1.    Bad morale

2.    Overburdened personnel

3.    Underburdened personnel

4.    Rapid staff turnover

5.    Bad dissemination, processing and instruction

6.    Low income

7.    Even lower income

8.    Public flaps

9.    Chaos.

An executive in a formed org has only two jobs:

1.    Policy, promotion and planning

2.    Getting people to get the job done.

A post or terminal is an assigned area of responsibility  and  action  which
is supervised in part by an executive. Supervision means helping  people  to
understand their jobs. Supervision means giving them the responsibility  and
wherewithal  to  do  their  jobs.  Supervision  includes  the  granting   of
beingness. Supervision does not mean doing the job supervised.

Thus you have two phases and shades of grey in between.

At a slight sag or a mess-up or failure  to  hire  and  hat  and  apprentice
properly, a PHASE 11 situation can drop back into a single-handing PHASE  1.
An executive who again doesn't see that he has dropped  out  of  comfortable
Phase 11 and gotten into a PHASE I must at once again single-hand,  if  only
for a day.

But now the executive MUST get in ethics, hire, hat  and  apprentice  people
and build once more to PHASE 11.

In short, an executive has to know how to change gears!

To BOOM dissemination and income and hold the boom, study this well  and  be
able to shift not only from comfortable 11 to hectic overworked I  but  also
to push back to Phase 11.

This is the reality of it.

L. RON HUBBARD

Founder

LRH:sb.bh.gm

[Note: Due to an error in series numbering, there are no issues for Admin
Know-How Series 27 and 28. Issues in the series from Admin Know-How Series
29 forward retain their original series numbers.]

96



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 26 JANUARY 1972

                                   Issue I

Remimeo

All Exec Hats

Admin Know-How Series 29

Executive Series 5

NOT-DONES, HALF-DONES AND BACKLOGS

There is a very definite, often unsuspected effect concealed in  a  backlog.
And it is of  such  violence  that  it  can  crash  an  area's  stats  while
seemingly working frantically.

BACKLOG  (Webster's)  noun:  3.  an   increasing   accumulation   of   tasks
unperformed or materials not processed; verb: to accumulate as a backlog.

NOT-DONES AND HALF-DONES

Backlogs occur for various reasons. But the two main classes  are  (1)  NOT-
DONES and (2) HALF-DONES.

For lack of seeing that a backlog exists, lack of  supervision  of  existing
personnel, other-intentionedness of personnel, lack of personnel  to  handle
the usual or peak volumes, lack of know-how to handle,  lack  of  resources,
and outright sabotage are some of the reasons that account for NOT-DONES.

HALF-DONES are as bad as NOT-DONES as they bit and  piece  an  area  into  a
quagmire. Suppose Detroit began  to  make  half-cars.  All  their  resources
would be devoured, yet nothing would really be produced, yet everyone  would
look  frantically  busy;  the  executive  worries  would  mount  up  to   an
inconceivable fever pitch unless the half-done factor was handled.

But half-dones are not always as visible as  half-cars.  "Have  you  handled
Bets and Company suit?" "Oh yes." But the case is lost  because  the  filing
papers were only half-prepared and half-filed.

The same reasons apply for HALF-DONES as are listed above for NOT-DONES.

The Why of many failures is found in NOT-DONES and HALF-DONES.

The primary effect (there are others) of NOT-DONES  and  HALF-DONES  is  the
building up of backlogs.

Now, no backlog ever quietly lies there. So long as anything  else  depended
upon the actions being done, there will be pressure or threat  of  one  kind
or another on the backlogged area.

Thus, when an  activity  becomes  backlogged,  IT  GENERATES  NEW  WORK  NOT
CONCERNED WITH REDUCING THE BACKLOG AMOUNT.

Example: An insurance company backlogs claims payments. Torrents of  queries
then demand why. The claims section spends its time answering  the  queries,
not reducing the number of claims. The volume of work doubles, trebles,  but
no claims get paid.

BACKLOGGING AT ONCE DOUBLES THE WORK BY THE ADDITION OF DEMAND HANDLING.

97



Example: A Central Files fails to  stay  filed  into  up  to  present  time.
Demands for items in it cause others to consume all the  file  clerk's  time
tearing CF apart to find particles.

A BACKLOG CAN INCREASE ITSELF BY ADDING DISORDER THAT UNDOES THINGS  ALREADY
DONE.

Thus a backlog tears up the past work while building up future work.

Example: Personnel backlogs its files, causing it to  backlog  appointments.
This overloads areas. These areas start crashing down on Personnel  in  mobs
demanding it provide people. Personnel is then so busy fending  off  people,
it can't appoint. Yet is in frantic action.

A BACKLOG PREVENTS ITSELF FROM BEING HANDLED.

An org that has several backlogs in it becomes frantic and then goes into
apathy,

The cure is to:

1.    Get people and do ALL HANDS actions to get the most important
backlogs done.

2.    To find the real WHY of the backlog and handle it so a present time
state is then maintained. (Requires a program, followed and done.)

3.    Check out staff on the book Problems of Work.

4.    Get staff to do Training Drill Zero on their work areas.

5.    Get staff to reach and withdraw from their materials of operation or
areas.

6.    Do a survey of attitudes which reveals complaints and reasons for not-
dones, half-dones, backlogs.

7.    Based on the survey, campaign hard to remedy NOT-DONES and HALFDONES.

8.    Be very severe with any beginnings of any future backlogs.

When you see an area or org in apathy, know it has gone the  route  of  not-
dones, half-dones and backlogs and handle.

When you see an area going frantic, know you are looking at not-dones, half-
dones and backlogs and handle fast  before  it  goes  into  the  much  worse
condition of apathy.

Production is the basis of morale.

Not-dones, half-dones result in backlogs.

Backlogs destroy the possibility of future production.

Thus you know the situation of not-dones and half-dones will result in
backlogs.

The backlogs will prevent further handling.

This subject is the subject which makes executives harassed.

98



Behind every upset there will be NOT-DONES, HALF-DONES and BACKLOGS.

So be very alert.

Dynamite is stick candy alongside of this very explosive subject.

Don't say I didn't tell you.

L. RON HUBBARD

Founder

LRH:mes.rd.gm Copyright C) 1972

99



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I SEPTEMBER 1973

Remimeo

ADMIN KNOW-HOW No. 30

How is it that the highest paid salaried men  in  our  current  civilization
are administrators? They draw from  a  quarter  to  a  third  of  a  million
dollars per year. They are paid far far more than professional  people,  far
more than scientists, more than politicians who, above  all  people,  should
be excellent  administrators.  WhY9  Because  they  are  so  rare.  Business
schools may turn out graduates by the millions but very, very, very  few  of
them ever become topflight executives who can really  administer.  Why  does
the civilization develop so very few of them? Because this civilization  has
not had much workable administrative tech and has not even known  the  basic
natural laws which underlie administration.

The subject of administration is so poorly known because there is so  little
data. And because there is so little, the subject itself is  not  understood
at all by the general population of the planet. Yet there are  very  few  on
the planet who are not the direct effect of administrators.

You hear  an  administrator  talk  about  PRODUCTION  or  GROSS  INCOME  and
possibly suppose this is just a peculiarity or a  fixation  and  that  these
facts are distant from general living.  Perhaps  some  people  suppose  that
such talk and urgings is part of the capitalistic system or something for  a
board of directors. General public reaction to  such  things  is  usually  a
nothing-to-do-with-me. The  usual  attitude  to  law  and  accounting  is  a
"beyond me" and an "it's confusing" yet the person is subject every  day  of
his life to them.  It  is  quite  similar  but  even  more  mysterious  with
administration.

Administration is not peculiar to capitalism. Or to any  special  field.  It
embraces all of them, even law and accounting which  are,  in  actual  fact,
administrative specialties.

Let us look at this abundant and glaring evidence: Russia  cannot  feed  her
people. She cannot clothe them. She has fantastic troubles  in  moving  them
about. Russia, despite her PR, is a failure. She is a failure,  not  because
few people  agree  with  her  ideology,  indeed,  that  ideology  has  crept
reachingly over the world.

And let us look at the capitalist juggling money, money bags and paper  gold
and look as well at the health problems and cultural  unrest  that  ride  as
problems in his train. The severest criticism  of  the  capitalist  is  that
communism and socialism grew up and flourished during his reign.

And look at the clanking, swanking military dictators who have replaced  the
weak and diseased kings who  once  ruled  the  world.  They  are  themselves
replaced by their own kind as fast as firing  squads  can  be  assembled  by
newly ambitious dictators.

Why do these ideologies fail and why are they so oppressive while they
last?

THEY HAVE TOO FEW TRAINED AND SKILLED ADMINISTRATORS WHO CAN GET A  SHOW  ON
THE ROAD.

The SURVIVAL of any group depends utterly upon things  like  PRODUCTION  and
EXCHANGE. That is the way the universe runs.  When  these  factors  are  not
competently handled, the group is in poverty or vanishes.

Civilizations have not vanished because they had the wrong ideologies or
ran out

100



of  resources.  First  and  foremost  they  vanished  because  they  had  no
technology of the mind and could not handle  people  because  they  did  not
know the basic fundamentals of life. And right along  following  that,  they
did not really know the tech of administration or even  what  administrators
were or could do.

Their survival was in question the moment they did things  with  individuals
contrary to the basic laws of life: They began to  believe  they  would  get
reaction A by some strange rite, but instead of that got  reaction  B.  They
not only did not have mental technology, they adopted practices contrary  to
basic laws. And so they were torn with revolts. And wars.

And their survival fell to nothing  when  they  did  not  know  or  practice
fundamental administration and violated the basic  rules  through  ignorance
or sloth.

If one is going to have a group in this  universe  that  survives  and  wins
through its obstacles, it must have and apply basic laws. It does  not  have
to be a perfect group but it must not be an ignorant group.

While the happiness of the individual may depend  upon  mental  tech,  apart
from any group, he cannot survive well as  a  group  member  if  he  has  no
knowledge or understanding of administrative tech.

If one goes on living in this universe, he is sooner or  later  the  subject
of administration as a member of a group. In cave days, if one had  to  stay
in his cave starving because of a saber-toothed  tiger  prowling,  he  would
have had two choices: he either stayed in his cave and starved to  death  or
he learned about saber-toothed tigers;  when  he  knew  about  saber-toothed
tigers he would now have new choices of how to avoid, how to  kill  or  even
how to employ saber-toothed tigers; when he had settled this  he  would  now
have a path of action he could predict. The jungle in  which  he  lived  was
subject to certain rules, no matter who laid them down, God or the old,  old
Biological Survey. In other words, even in cave days one was the  effect  of
an administrator.

When one had solved the crude tooth and claw existence, one could rise to  a
small niche of administering on his  own;  animals  could  be  domesticated,
plants when planted would grow, wood when carved would  make  things,  metal
when formed would make things that made things.

The moment one was headed in the direction of survival he was headed in  the
direction of production. So many killed deer made so  many  meals;  it  also
made so many hides which made so many beds and jackets.  The  exchange  with
the deer was quite unequal as there was nothing for the deer  and  the  deer
protested by ceasing to exist and one got into goats and cattle.  Similarly,
when the wild roots gave out, for there was no exchange for the  roots,  one
had to plant them and tend them.  Consumption  any  way  one  looked  at  it
eventually got into production that equalized, or tended to,exchange.

When one could administer a small area, so many plants, so  many  goats,  he
was in his own right something of an administrator.  He  learned  there  was
technical tech and he learned there was administrative tech also. And  these
things of all others continued to guide his survival.

One can of course decide not to go on living in this universe.  But  now  he
falls into two new choices: he either goes  to  another  universe  or  drops
into a sort of self cave. In  the  other  universe  he  will  probably  find
himself under a new administrator or a new set of rules  even  if  he  alone
makes them. And if he chooses a sort of nowhere self cave, he  has  done  so
because he never solved the saber-toothed tigers.

Thus one is confronted with certain incontrovertible facts. 1. HE MUST  SEEK
THE TECH OF SURVIVAL AND APPLY IT; 2. HE WILL SURVIVE  AS  WELL  AS  HE  CAN
ADMINISTER OR HANDLE ADMINISTRATION.

As a member of any group, the PRODUCTION and GROSS INCOME or

101



EXCHANGE he hears his executives talking  about  APPLIES  TO  HIM  DIRECTLY.
What ideology or system  one  embraces,  his  well-being,  his  safety,  his
happiness, will relate to PRODUCTION and EXCHANGE and the  ease  with  which
these  are  attained  or  maintained   is   determined   directly   by   his
understanding of and ability to handle administration.

There are thousands and thousands and thousands who might give you  far  far
different basics  for  life.  But  watch  it!  They  are  touting  for  some
administrator or seeking to avoid ALL administration in every case,  one  or
the other!

One either lone-wolfs his life or one gets through  with  a  group.  In  the
first place, one must think mainly of personal money or one  must  think  of
the  group's  survival.  The  regulating  factors   in   either   case   are
ADMINISTRATION resulting in PRODUCTION and EXCHANGE.

Bank robber or bank president,  these  harsh  facts  of  life  still  apply.
Democratic politician or autocratic commissar,  these  are  still  the  main
determining factors of life.

The welfare state seems so wonderful a dream to the  socialist:  why  is  it
then that ghetto people riot because THEY HAVE  NO  JOBS  but  are  only  on
welfare? It is true, surveys show. The  recipients  of  welfare,  whether  a
Roman guttersnipe, a white Swede or a  Black  American  become  crippled  as
beings: they are the TOTAL effect of administration,  they  have  no  cause-
factor short of a riot. They want JOBS. For they instinctively realize  that
they are in little better position than the cave man with the  saber-toothed
tiger outside. They have been  disenfranchised  as  members  of  the  group,
dwellers of the universe. They cannot exchange, a  somewhat  fearful  thing,
they do not produce and they are forbidden causative  control  or  causative
administration. They recognize, no matter how dimly,  that  they  have  been
set up as zeros. And this is not only unhappy, it is dangerous.

Reversely, when people offer nothing in exchange, do not produce and  cannot
or will not administer, they become pawns. Sometimes  they  think  they  are
merely the subject of meanness or rancor. But if  they  do  not  produce  or
exchange and cannot share in administration, they become zeros.  Their  fate
is decided already, by themselves. It would not matter  for  a  moment  what
some administrator did or  did  not  do,  such  people  have  reduced  their
survival to a point that it is prey to the lightest wind.  These  facts  are
as inevitable as "apples fall," as harshly real as a  tiger's  claw  and  as
predictable as tonight's darkness. Their only possible choices  are  (1)  to
cease to exist (which is impossible for a thetan) or (2) get in  a  position
or situation or state of mind to produce, exchange and administer. There  is
a third choice-to leave this universe.

Life is, or can be, a pretty grim proposition. One may float  along  on  the
production of others like the  recently  demised  "Leisure  Class"  of  19th
century infamy or like a hobo being chased by  every  householder  and  cop.
One can go along in the numb world of the middle class watching  his  public
docility while he hypocritically sins  behind  doors  and  conforms  with  a
capital C. One can creakingly labor in the world of the  endlessly-being-dug
ditch for some unknown pipe. Or one can simply  confront  the  whole  thing,
pain, misemotion, punishments, rewards and all and produce and exchange  and
learn to handle the administrative system he is in  and  himself  administer
his life and environ.

One can hear countless reasons why it is too awful or  too  deadly  to  find
out about the tiger. But you hear these reasons from the cowardly dead.

One can hear a million arguments against being a tiger or the  administrator
who orders tigers about. But one is talking to people who are not living.

The stark facts  are  these:  one  knows  and  handles  administration,  one
produces, one exchanges OR one dies as far as this universe is concerned.

That's why you hear an administrator who means well for the group talking
about

102



PRODUCTION and EXCHANGE. That is why one never hears a politician who means
ill for the group mention them.

And that's why the person who can use administration to bring about
production and exchange is so highly paid by status and respect or why his
group is so highly paid. He is dealing in SURVIVAL. And the skills he uses
are well worth knowing and using.

Caves are damp. Bring on the tigers! The sun is shining.

L. RON HUBBARD

Founder

LRH:sr.gm

103



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 15 OCTOBER 1973

Remimeo

Admin Know-How Series 31

ADMINISTRATIVE SKILL

An administrator is one who can make things happen at the  other  end  of  a
communication line which result in discovered data or handled situations.

A very good administrator can get things handled over a very long  distance.
A mediumly skilled administrator has a shorter reach.

As this scale declines, we get people who can make  things  happen  only  at
arm's length.

It is interesting that administrators are valued  in  direct  proportion  to
the distance they can reach and get things handled  over.  Persons  who  can
handle things only at arm's length are valued but not  in  proportion  to  a
long-reaching administrator.

The complexity of situations and things  handled  is  also  a  test  of  the
administrator. If one began at the highest level of capability  of  handling
things thousands of miles away and at  the  bottom  of  the  scale  handling
things at  arm's  length,  one  would  also  find  complexity  entering  the
picture.

The artisan can, by means of heavy mest communication lines and tools,  make
all manner of things occur but mostly within his visual sight line.

The day laborer who can only handle a shovel usually  can  only  handle  the
simplicity of lifting a few pounds of dirt to a definite position.

One of the troubles PTS people have, as an example,  is  handling  something
over a long-distance communication line. One can tell  them  to  handle  the
suppressive, but one must realize  he  may  also  be  giving  the  order  to
someone to handle another person several thousand  miles  away.  This  is  a
high level of administrative  skill  and  is  usually  no  part  of  a  PTSs
ability, whatever other technical considerations may intervene.

Estimating  situations  thousands  of   miles   away   and   handling   them
terminatedly is actually comparable to an OT ability.

There is no effort here to include artists and technicians who do work  with
their hands, for this  is  another  class  of  activity  requiring  enormous
technical skill and ability.

However, very few people understand the administrator or what he is or  what
he can do, yet the whole world is the effect of good or bad administrators.

The  administrator  has  technology  with  which  to  discover  and   handle
situations  and  if  he  is  a  very  good  administrator  his  handling  is
ordinarily constructive; but whatever it is, it is firm.

A skilled administrator therefore can be defined as ONE  WHO  CAN  ESTABLISH
AND MAINTAIN COMMUNICATION  LINES  AND  CAN  THEREBY  DISCOVER,  HANDLE  AND
IMPROVE SITUATIONS AND CONDITIONS AT A DISTANCE.

104



When you fully grasp this and realize it is the basic simplicity that is
the basic all of an administrator's further complex technology, you can
estimate an administrator's efficiency or effectiveness.

If you are engaged in administration, this basic truth will serve you very
well if you fully understand it and use it.

L. RON HUBBARD

Founder

LRH:rhc.nt.gm

0

105



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 5 DECEMBER 1973R

Remimeo     REVISED 12 DECEMBER 1974

(Revisions in this type style)

Admin Know-How Series 32R

Q AND A CHECKSHEET

CHECKSHEET OF THE

HUBBARD CAUSATIVE LEADERSHIP COURSE

Any executive or officer or human being who does not know what Q and A is
and indulges in it will inevitably cause dev-t, produce little or nothing
and succumb.

Therefore this checksheet is a MUST for any executive.

NAME: DATESTARTED:

ORG-  DATE COMPLETED:

POST.

1. HCOB 21 Nov. 73

THE CURE OF Q AND A

MAN'S DEADLIEST DISEASE

2. Demo each paragraph and look up the

Mis-U each time you can't.

3. HCOB 5 Dec. 73

THE REASON FOR Q AND A

4. Demo each paragraph and look up the

Mis-U each time you can't.

5. HCOB 24 May 62

"Q AND X' Starrate.

6. HCOB 13 Dec. 61

VARYING SEC CHECK QUESTIONS

7. HCOB 22 Feb. 62

WITHHOLDS MISSED AND PARTIAL

8. HCOB 29 Mar. 63

SUMMARY OF SECURITY CHECKING

9. HCOB 7 Apr. 64

ALL LEVELS Q AND A

10. TRs the Hard Way.

11. Upper Indoc the Rough Way.

106



12.   Handling the not done, or "no interest" drug items from Drug RD or
getting a full Drug RD.

12a. Introspection RD.

13.   35 hours Op Pro by Dup given and received in co-audit (171/2 each
way).

Received

Given

14.   HCOB 29 July 63

      Section "Q and A Drill"

15.   HCOB 20 Nov. 73, Issue 11,

      F/N WHAT YOU ASK OR PROGRAM

16.   Do in Clay: An auditor example of Q and A.

17.   Do in Clay: An administrator's example of Q and A.

18.   Do in Clay: How you have Qed and Aed with life.

19.   Do in Clay: A Q and A with a body.

20.   Do in Clay: A Q and A with a group.

21.   Do in Clay: A correct auditor action in getting a question answered.

22.   Do in Clay: A correct C/S action in getting a pc handled.

23.   Do in Clay: An administrator correct non-Q and A action in getting a
target done.

24.   Do in Clay: A personnel correct non-Q and A action in getting a
target done.

25.   Do in Clay.. Correct non-Q and A action in verifying a target
reported done.

26.   Do in Clay: A direct life handling of own life.

27.   Do in Clay: A direct non-Q and A handling of own body.

28.   Do in Clay: Straightforward handling the hell out of a situation.

29.   Do in Clay: Straightforward handling of a group.

30.   A final life result in real life

      demonstrating that non-Q and A handling

      is successful, attested and as a

      success story,

107



3 1.  Certificate as a "Competent Being" from Certs and Awards.

Auditor Attest

Super Attest

Student Attest

L. RON HUBBARD

Founder

LRH:nt.gm , 1974

108



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 AUGUST 1976

Remimeo     Issue I

All Execs

All Purchasers

      Admin Know-How Series 33

      Esto Series 31

      PRODUCT/ORG OFFICER SYSTEM

      NAME YOUR PRODUCT

The Product/Org Officer system, covered fully  in  Flag  Executive  Briefing
Course tapes, contains the key phrase for any Product Officer. This is

NAME, WANT AND GET YOUR PRODUCT.

Breaking this down into its parts we find that the most  common  failure  of
any Product Officer or staff member or Purchaser lies  in  the  first  item,
NAME YOUR PRODUCT!

On org boards and even for sections, one has  products  listed.  Departments
have valuable final products. Every staff member has one or more products.

IF PRODUCTION IS NOT OCCURRING, THE ABILITY TO NAME THE PRODUCT IS  PROBABLY
MISSING.

Misunderstood post titles were collected once on a wide survey. Whenever  it
was found a staff member did not seem to be able  to  do  his  job,  it  was
checked whether he knew the definition of the  word-or  words-that  made  up
his post title. It was found, one for one, that he could not define it  even
though no unusual or  special  definition  was  being  requested.  In  other
words, the first thing about the post could not be defined-the  post  title.
This may seem incredible, but only until you yourself check it out on  staff
that habitually goof.

The ability to NAME the product required goes  further  than  a  mere,  glib
definition. Some engineers once drove a Purchaser halfway  up  the  wall  by
glibly requesting "one dozen bolts." The Purchaser kept  bringing  back  all
different thicknesses and lengths and types  of  bolts.  The  Purchaser  was
going daffy and so were the engineers. Until the engineers  were  forced  to
exactly name what  they  were  seeking  by  giving  it  ALL  its  name.  The
Purchaser trying to purchase could not possibly obtain his  product  without
being able to FULLY name it. Once this was done, nothing was easier.

A Product Officer can ask, beg, plead, yell for his product.  But  maybe  he
isn't naming it! Maybe he isn't naming it fully. And maybe even  he  doesn't
know the name of it. A Product Officer should spend some  time  exactly  and
accurately  naming  the  exact  product  he  wants  before  asking  for  it.
Otherwise he and his staff may be struggling around over many  misunderstood
words!

When you see a staff whirling around and dashing into walls and  each  other
and not producing a thing, calmly try to find out if any of  them  or  their
Product Officer can NAME what products they are trying to  produce.  Chances
are, few of them can and maybe the Product Officer as well.

Handle and it will all smooth out and products will occur.

      L. RON HUBBARD

LRH:nt.gm   Founder





109



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 AUGUST 1976

Remimeo     Issue 11

All Execs

All Purchasers

      Admin Know-How Series 34

      Esto Series 32

                         PRODUCT/ORG OFFICER SYSTEM

                              WANT YOUR PRODUCT

A Product Officer has to name, WANT and get his product.

Where no real or valuable production  is  occurring,  one  has  to  ask  the
question, does the Product Officer really WANT the product he is  demanding?
And does the staff member or members he is dealing with WANT the product?

The reason that a psychotic or otherwise evilly  intentioned  person  cannot
achieve anything as a Product Officer or staff member is that  he  does  NOT
want  the  product  to  occur.  The  intentions  of  psychos  are  aimed  at
destruction and not at creation.

Such persons may SAY they want the product but  this  is  just  "PR"  and  a
cover for their real activities.

People who are PTS (potential trouble sources by reason of connections  with
people antagonistic to what they are doing in life) are all  too  likely  to
slide into the valence of the antagonistic person who definitely  would  NOT
want the product.

Thus, in an org run  by  or  overloaded  with  destructive  persons  or  PTS
persons, you see a very low level of production if you see any at  all.  And
the production is likely to be what is called "an overt product," meaning  a
bad one that will not be accepted or cannot be traded or exchanged  and  has
more waste and liability connected with it than it has value.

One has to actually WANT the product he  is  asking  for  or  is  trying  to
produce. There  may  be  many  reasons  he  does  not,  none  of  which  are
necessarily connected with being  psycho.  But  if  it  is  a  creative  and
valuable product and assists his and the survival of  others  and  he  still
does not want it, then one should look for PTSness or maybe even  a  bit  of
psychosis. And at the least, some withholds.

One does not have to be in  a  passionate  mystic  daze  about  wanting  the
product. But one shouldn't be moving mountains in the road of a  guy  trying
to carry some lumber to the house site either.

The question of WANT the product has to be included in  any  examination  of
reasons why a person or an org isn't producing.

L. RON HUBBARD

Founder

LRH:nt.gm

110



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 7 AUGUST 1976

Remimeo     Issue III

ALL EXECS

                          Admin Know-How Series 35

                               Esto Series 33

                         PRODUCT/ORG OFFICER SYSTEM

                   TO GET YOU HAVE TO KNOW HOW TO ORGANIZE

A Product Officer and ESPECIALLY an Org Officer has to know  how  to  GET  a
product.

All science and technology is built around this  single  point  in  the  key
phrase  "Name,  want  and  get  your  product."  Managers   and   scientists
specialize in the HOW TO GET part of it and very often neglect the rest.

There are many Product Officers who do NOT know  enough  about  organization
to organize things so they  actually  GET  their  product.  These,  all  too
often, cover up their ignorance on how to organize or their inability to  do
so by saying to one and all "Don't organize, just produce!"  When  you  hear
this you can suspect that the person saying it actually does  not  know  the
tech or know-how of organizing or how to put an  organization  together.  He
may not even know enough about organizing to shove aside other paper on  his
desk when he is trying to spread out and read  a  large  chart-yet  that  is
simple organization.

A bricklayer would look awfully silly trying to  lay  no-bricks.  He  hasn't
got any bricks. Yet there he is going through the motions of laying  bricks.
It takes a certain economic and purchasing and transport  tech  to  get  the
bricks delivered-only then can you lay bricks.

A manager looks pretty silly trying to order a  brick  wall  built  when  he
doesn't have any bricks or bricklayer  and  provides  no  means  at  all  of
obtaining either one.

A Product Officer may be great at single-handing  the  show.  How  come?  He
doesn't realize that building a show comes before  one  runs  it.  And  even
though economics demand at least a small show  before  one  builds  a  large
show, a very bad Product Officer who can't  really  organize  either,  will,
instead of making the small show bigger, make  the  small  show  smaller  by
trying to run a no-show.

There is a HOW of organization. It is covered pretty well in the Org  Series
and elsewhere. Like you can't put in comm lines unless you put in  terminals
for them to connect  with.  Like  you  can't  get  particles  flowing  in  a
profitable way unless they have something for them to run on. That's  simply
the way things go in the universe in which you are operating. Now of  course
you could build a new universe with different laws but  the  fact  is,  that
would require a knowledge of organization as well, wouldn't it?

The tech of how to produce something can be pretty vast.  One  doesn't  have
to be a total expert on it to be able to manage the  people  doing  it,  but
one has to have a pretty good idea of how it goes and  know  enough  NOT  to
stop the guys who do know how to make bricks when one wants bricks.

If the product is to get somebody to come in to see you, then  you  have  to
have some means of communication and some tech of  persuasion  to  make  him
want to come in to see you. Brute  force  may  seem  okay  to  cops  but  in
organization it seldom works. There is more tech to it than that.



If a Product Officer does not know there is tech  involved  in  GETTING  the
product, then he will never make his staff study it or teach anybody  to  do
it. And he will wind up with no product. So beware the Product  Officer  who
won't give time off for hatting! He doesn't know one has to  know  the  tech
of getting his product. What do you think the OEC (Org Exec Course)  Volumes
and the technical bulletins are all about?

One  has  to  spend  some  time  organizing  in  many   different   ways-the
organization itself, the hatting, the technical skill  staff  members  would
have to have, to get anywhere in GETTING a product.

Sure, if you only organize  and  never  produce  you  never  get  a  product
either. But if you only produce and never  organize.  the  only  brick  wall
you'll ever see is the one you run into.

L. RON HUBBARD

Founder

LRH:nt.gal.gm Copyright@ 1976, 1979

112



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 14 NOVEMBER 1976

Remimeo

Flag Bu

All Orgs

Ext HCO FB  Admin Know-How Series 36

      Org Series 36

      Executive Series 18

      Personnel Series 28

MANNING UP AN ORG

The Sequence of Posting Depts and Divs

You need an org bd first and an allocation board.

The sequence in which an org is manned up is roughly:

- Dept I

- Dept I I

- Reg and Body Routers and Intro people in Div 6

- Dept 12 (enough auditors and C/Ses to approach 2 admin to I tech in org)

- Dept 6

- Dept 7

- Dept 3

- SSO and Supers in Qual to train staff

- Dept 5 for CF Address and Letter Reges

- Dept 4 for promo

- Dept 21 (LRH Comm)

- Dept 10

- Dept 20

- FR & execs

- Full Div 6

- Full Div I

- Full Div 4

- Full Div 2

      Full Div 5

      Full Div 7

      Full Div 3

(Note, an AO always mans up the AO dept or div along with the SH one in
each case.)

Wrong sequence of manning is Dept 6, Dept 12, Dept 6, Dept 12, Dept 6, Dept
12, as you wind up with a stuck clinic that won't expand.

Wrong sequence will contract an org while trying to expand it as the org
will go out of balance, bad units, noisy and unproductive.

If manned in a correct sequence its income has a chance to stay abreast of
its new staff additions.

Emphasis on GI without comparable emphasis on delivery and organization can
throw an org into such a spin only a genius can run it.

Manned in proper sequence, and hatted as it goes, an org almost runs
itself.

113



Single-handing from the top comes from longstanding failures to man  or  man
in sequence, from earlier noncompliance with explicit  orders  or  from  not
understanding orgs in the first place.

An unhappy org that doesn't produce has usually been manned  only  partially
and out of sequence.

The trick is planned manning, ignoring the screams of those  who  know  best
or demand personnel; just manning by posting those who  have  been  screamed
for the loudest is a sure way to wind  up  with  no  people  and  total  org
problems instead of a total org that is prosperous and producing.

Incidently, this is a rough approximation of the sequence  of  hats  the  ED
gradually unloads as his org takes over.

L. RON HUBBARD

Founder

LRH:nt.gm

114



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 29 NOVEMBER 1978

Rernitneo

                          Admin Know-How Series 37

                             Personnel Series 29

HOW YOU HANDLE DEMANDS FOR PERSONN

(R ef.

HCO PL 22 Sept. 70     HATS

HCO PL 1 Jul. 65 HATS, THE REASON FOR

HCO PL 15 Sept. 59     HATS AND OTHER

      FOLDERS)

HCOs get continual demands for personnel from all areas of an org.  To  keep
an HCO from going mad with all these demands, they must, on  every  request,
(1) have the Dir of I&R do a full utilization survey on the  division,  dept
or section requesting personnel and (2) do a  full  hat  inspection  on  all
personnel in that division, dept or section.

Only if these two steps are done for  each  personnel  request  will  sanity
reign in HCOs on the subject of personnel.

HCO PL 15 Sept. 59 HATS AND OTHER FOLDERS (Vol 0, page 65), HCO  PL  I  Jul.
65 HATS, THE REASON FOR (Vol 0, page 66) and HCO PL 22 Sept. 70  HATS  (Mgmt
Vol, page 21 W must be well known by all staff in Depts I and 3.

Personnel can recruit madly, answering every frantic demand  for  personnel,
and yet HAVE THEM ALL WASTED for lack of full  hats  and  full  training  on
those hats.

The whole org can sag and even vanish under these conditions.

So Personnel has a vested interest in hats being complete and staff  trained
on them. For Personnel people cannot possibly cope with  "no  pay  so  can't
hire anyone" and "no people so can't produce."

So for every demand for personnel, A LWA YS demand a utilization survey  AND
an inspection of hats in that area.

L. RON HUBBARD

Founder

LRH:kjm.gm Copyright C) 1978

*[Note: In Management Series Volume 2 see page 308 for the text of HCO PL
22 Sept. 70, HATS.]

115



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 3 SEPTEMBER 1980

Remimeo     Issue I

(The contents of this policy have been taken from an LRH  OODs  item  of  15
May 71 and are now being issued in policy form to bring forth the wealth  of
data formerly issued in the Flag "Orders of the Day.")

Admin Know-How Series 38

Data Series 50

Esto Series 42

Org Series 42

OUT OF SEQUENCE

Out of sequence is the  most  common  outpoint  according  to  a  survey  of
despatches and projects a couple months ago.

The thing which gets most commonly out of sequence is  the  pattern  of  the
Key Ingredients as covered in HCO PL 14 Sept 69.

The correct  sequence  for  a  piece  of  work  would  be  to  plan,  obtain
materials, and then work.

If this is  made  into  work-plan-materials,  everyone  works  hard  but  no
product will result.

As production is what morale depends upon, a smash of morale would occur  if
the Key Ingredients were thrown out of sequence.

Omitted data runs a close second to out  of  sequence  as  the  most  common
outpoint.

When the sequence of a work  project  is  thrown  out  and  then  data  like
technology of how to do it is omitted, a group could  work  itself  half  to
death and have down morale as well from no product.

The right way to go about it is to have the tech of a job, plan it, get  the
materials, and then do it. This we call organizing.

When this sequence is not followed, we have what  we  call  cope.  Too  much
cope will eventually break morale. One  copes  while  he  organizes.  If  he
copes too long without organizing he will get a dwindling or no product.  If
he organizes only he will get no product.

Coping while organizing will bit by bit get the line and  action  straighter
and straighter and with less work you get more product.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

      for the

BDCS:LRH:SA:bk.nf      BOARDS OF DIRECTORS

, 1980

      of the

      CHURCHES OF SCIENTOLOGY

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Admin Know-How 36.]

116



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 12 SEPTEMBER 1980

                                   Issue I

Remimeo

                       (Originally LRH Flag Ship OODs

                           item of 7 March 1971.)

                                Org Series 47

                             Executive Series 24

                          Admin Know-How Series 39

HANDLING OVERLOADED POSTS

Reference:

HCO PL 28 July 71      ADMIN KNOW-HOW 26

Product and Org Officers can take over a grossly  overloaded  key  post  and
(a) increase its production and (b) reduce the work hours. They should  take
over posts for 48 hours and give the incumbent a rest and see what gives.

The rules that seem to apply are

a.    It is a key post of the area in question and

b.    It is the most overloaded and/or most nonproductive post in that
area.

It's one thing to issue orders. It's another to do work.

One doesn't stand behind the guy. One takes him off the  post  and  actually
does the work of the post.

While doing it one will see why it can't be done or  isn't  being  done  and
one can then get a good bright idea of how it can be done and get it in  and
write it up.

One often finds he has to ask "What hat am I wearing?" when one finds he  is
on overload.

Well, one solution is to just go over and really wear that hat and  see  why
it can't be worn, get an idea of how it can be worn, do the  action  to  see
if it's right, write it up for issue and put the person back on it.

A junior often can't mesh up the lines so they work because  he  hasn't  the
know-how and hasn't the authority. His proper action would be to figure  his
post out and write it up for issue and get it in his hat.  When  he  doesn't
do this it jams or overloads his own and other lines.

Where this situation exists and  isn't  changing,  a  Product  Officer,  Org
Officer or HAS or the divisional Product or Org Officers have an  out.  They
can take over such a post, do all its work for 48 hours with  no  help  from
the incumbent, get an idea of how to debug it, see if that works,  write  it
up and turn the post back over.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

      for the

BDCS:LRH:SA:dr.gm

, 1980      BOARDS OF DIRECTORS

      of the

      CHURCHES OF SCIENTOLOGY

117



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 21 SEPTEMBER 1980

                                  Issue VI

Remimeo

                          (Originally LRH OODs item

                              of I I June 1972)

Admin Know-How Series 40

Esto Series 46

PRODUCT OFFICERS

Worked last evening getting Tech to start shooting them through to
completions.

The P/L on Selling and Delivering Auditing (HCO PL 28  Sept  71)  tells  why
you have to audit a pc all at once whole program.  Dribbling  it  out  means
repairs due to life upsets before the guy made it.

So crowd it on and get a pc through. Then we'll have some products for our
coins.

A Product Officer has to name, want and get his products.

This means one says, "You there. Joe Blow. Want  him  completed.  All  right
get it DONE." Product by product. There is no  general  "Audit  these  pcs."
"Get up the hours." Hell, you never get a product that way.

"You there, George Thunderbird. I want you through  your  Primary  and  onto
and through course and classified. Get going, man, get going. Oh,  you  were
told to weedle the  toofle  before  you  woofled  by  Dorance  Doppler.  Org
Officer? Get that name-to F/MAA, get  the  cross  orders  the  hell  off  my
lines. Now you George Thunderbird, I want you through your Primary and  onto
and through course by I July. You got it? You got it now!  Good.  Well,  get
with it. Get going!" Note on clipboard:  Org  Off  to  get  cross  order  by
Dorance Doppler invest and report. "There's your  slip."  Note  on  progress
bd. Geo Thunderbird HSDA I Jul. "Now you Tobler  Tomias,  what's  the  tale;
how are you going? . . . Well standing there  smoking  and  looking  at  the
scenery isn't going to do anything. If your girl doesn't  like  you  anymore
the thing to do is drown your sorrows in the Primary RD. . . . Okay you  are
to be an Exp Dn. All right, that's fine. I want you completed by 16 July.  .
. . I don't care if that's a 16-hour day. Let's see, Primary  RD  by  -  and
Class IV Acad by - and _. Yes that's 16 July AT NOON. Man to hell with  your
PTPs. Get going, man." And on the progress board. And from the board -  "And
here's Bill Coal, he should be off the  Primary  today,  where  is  he.  All
right Bill-ah, you made it that far. Now you're on schedule.  That's  great.
HSDA. Get with it, man. You completed Primary 20 minutes ago and  aren't  on
the next course. Super!* What the

That's the way it goes for a Tech Prod Off. "We are  finishing  Agnes,  Trop
and Goshwiler today. Today. Yes today. Certified and off lines. Got it D  of
T? Well, do it!"

Push, debug, drive. Name it, want it, get it.

That's the only way you ever get a product.

Sad but true.

118



MEr-

They don't ever happen by themselves.

And all the public relations chatter in the world is not a product. I know
this Product Officer beat.

It's a piece of cake.

But it has to be DONE.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm Copyright* 1972, 1980

*Supervisor

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Admin Know-How 38.]

119



I

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I JULY 1982

Remimeo

All Staff

Admin Know-How Series 41

MANAGEMENT COORDINATION

COORDINATION is the essence of management.

The word "management" implies  there  is  something  and  some  someones  to
manage.

A business or company or organization implies others  are  present  and  are
engaged in a similar activity. It is a team.

Any organization, no  matter  how  complex,  is  bound  together  by  common
purposes.

If the different parts of such an organization  are  not  coordinated,  they
begin to cross each other's lines and tangle.

With such a tangle, one gets no forward progress.

The energy of the overall organization is absorbed by  cross  orders,  cross
actions and the general purpose of the activity makes little if any  forward
progress. This can be called "internal noise." The staff  can  be  numerous,
appear busy, even frantic, yet no production is really accomplished.

What  is  missing  is  COORDINATION.  The  efforts  of  each  part  of   the
organization are not being  directed  and  meshed  into  flows  which  would
achieve the common purpose.

THAT is what a manager is for.

The manager and his immediate assistants have to know where they  are  going
and have to make certain each part of the organization knows  and  that  the
efforts of each individual  segment  of  the  organization  are  devoted  to
forwarding the same general purpose.

Without  that  coordination  action,   the   different   elements   of   the
organization go into a tangle that results, not in  the  forwarding  of  the
general purpose, but in confusion and frayed temper and nerves.

The  elements  of  coordination  are   planning,   knowledge.   information,
agreement and production.

Good coordination of team effort results in high ARC. This is  called  "team
spirit, morale, esprit," etc. But what  it  is  in  fact  is  agreement  and
understanding within the team so they can each forward the  general  purpose
of the group. Confidence in the group by  each  individual  part  of  it  is
built with the above factors. Out of that, one can  achieve  meaningful  and
worthwhile production.

Without  it  one  gets  various  versions  of  catastrophe.  The  "hey  you"
organization,  the  one-star  team  with  everyone  else  on  the  sidelines
inactive or confused-there are many aspects of a lack of coordination.

120



Coordination is why we have Executive  Councils,  Advisory  Councils,  staff
meetings, mini programs for departments and all the rest of it. It  is  even
why we have an org board.

Any manager, at whatever level, will almost certainly fail if  he  does  not
brief his troops, get their viewpoints, establish agreement and program  the
general on-going activity and see that the program is executed.

A manager at any level has to use the tools of coordination.  Otherwise  his
organization's product will just be noise.

Oh, it is true that groups do not develop  new  ideas,  that  boards  cannot
plan. This is beside the point. This does not  mean  they  do  not  serve  a
vital purpose. A manager uses them to coordinate! If he omits this,  he  has
lost his most valuable tool, the form of  the  organization  and  he  cannot
possibly achieve any lasting results.

An org that doesn't hold  Executive  Council,  Advisory  Council  and  staff
meetings on a regular basis and does not use them  to  brief  and  iron  out
disagreements and get cooperation is lost.  It  will  have  down  statistics
very surely. For no one will know what the blazes is going on,  so  how  can
they get their own job done? An answer is to splinter off and go  one's  own
way as best he can. And that fragments a  group  and  it  ceases  to  be  an
organization but is just a lot of individual efforts.

The failure in such a case is simply a failure to coordinate!

Oh yes, management is there to plan. Good.  If  it  is  planning  that  will
forward the general purpose of the organization, if  the  various  units  of
the organization are briefed and  the  plan  is  adjusted  to  handle  their
disagreements and if the plan is real and understood by one and all  and  if
they then  cooperate  and  produce  along  these  lines,  you  have  forward
progress.

In our case all we're doing is selling and delivering a product.  If  we  do
that we have a planet. Otherwise we don't.

Whether we do it in a  few  years  or  a  few  millennia  is  determined  by
management. Does it coordinate or not?

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:kjm.gm

121



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 AUGUST 1982

Remimeo     REISSUED 8 SEPTEMBER 1982

All Orgs

All Management

      Personnel

All Executives

All Staff

            Admin Know-How Series 42

TARGETS AND PRODUCTION

There is a direct coordination between the  clarity  and  doability  of  the
targets of a program and any increase in stats.

If one can write good, simple, doable programs on matters important  to  get
done, they can get done. If  the  program  is  cloudy  or  the  targets  too
general, little comes of it. It does not show  up  in  stats  and  can  even
clutter up lines and impede production.

So it is very important to an exec and to staffs that the exec  be  able  to
write clean, concise programs and staffs to recognize when they are not  and
plead for correction.

Strategic planning gets bugged most often  because  middle  management  does
not put it in target form or if they do, put it in such  cloudy  or  general
targets it cannot be done and does not achieve the desired result.

Faults in this  can  cost-factually-millions  in  unmade  income  or  actual
losses and overwork.

But now today another factor is entering the scene. The world has gone
computer.

This does not mean computers can do actual  work-they  can't.  But  it  does
mean they can keep track of  things  and  operate  to  catch  things  which,
undone, wreck things.

In a very short while, at this writing, computers will exist  at  management
echelons to keep track of stats, demand programs and  keep  track  of  their
effectiveness. The computer will be able to detect very early  noncompliance
both in writing and getting done programs.

Life will be much smoother as debugs will be demanded more quickly  and  bad
targets or line  jams  or  staff  overloads  will  be  detected  sooner  and
remedied, resulting in more income, more service and more pay.

But all this will depend on three things:

1.    The existence and soundness of the strategic planning and evaluation.
(This has never much been in doubt.)

2.    The clarity with which planning can be programed. (This is currently
not good at all.)

3.    The execution of targets called for at various echelons and staff
level. (This depends, to a large measure, on 2 above.)

To a computer, which cannot really think, a target is a target. If not  done
in the expected time, it will squawk. If still not done, it  will  demand  a
debug.

The debug will find: (a) the organization ordered  did  not  give  it  to  a
correct or the right staff member to do, (b) had no one there to  do  it  or
(c) the target was simply

122



neglected at staff level or (d) the target  was  undoable  in  its  existing
form. The right one will be found, action will  be  taken  and  the  overall
scene will advance once more.

So it is very important,  whether  one  is  writing  major,  minor  or  mini
programs, that they be written absolutely on-policy from here on out.

This starts now, not waiting for computers, as it is valid in its own  right
and Programs Ops are on the  line.  With  computers,  there  will  still  be
Programs Ops  to  run  them  but  the  precision  and  speed  will  increase
amazingly.

The organizations in the world are getting bigger.  They  have  to  be  more
efficient to also pay well. And this all comes down to the 1, 2, 3 above.

It is a miserable thing to be hit with a lot of confused,  undoable  orders.
And  dangerous  to  one  at  staff  level  for  one  can  be  charged   with
noncompliance when there was really nothing precise to comply with!

So the ability to coordinate  programs  and  write  excellent  target-policy
targets is vital to the ability of all to work.

And when computers get on the job, electronic  sparks  will  be  flying  all
over the place if target policy is not adhered to carefully and precisely.

So this policy is vital, computers or no computers.

OPERATING TARGETS MUST HEREAFTER BE WRITTEN IN SUCH  A  WAY  THAT  THEY  ARE
FINITE AND NOT A GENERALITY SO  THEY  ARE  PRECISELY  DOABLE.  Targets  like
"Keep stats rising" or "Be nice to  Joe"  are  not  doable  targets  from  a
computer's viewpoint or anybody else's.

But, computers aside, the one that does the target is  NOT  a  computer  and
with target clarity can do it far more easily.

Hear me, the 1, 2, 3 above are the make-break point of expand or not
expand.

So heed it.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm

123



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 22 AUGUST 1982

Remimeo

All Orgs

All Management

      Personnel

All Executives

All Staff

Admin Know-How Series 43

BATTLE PLANS

A "battle plan" is defined as

A list of targets for the coming day or week  which  forward  the  strategic
planning and handle the immediate actions and outnesses which impede it.

Some people write "battle plans" as just a  series  of  actions  which  they
hope to get done in the coming day or week. This is  fine  and  better  than
nothing and does give some orientation to one's actions.  In  fact,  someone
who does not  do  this  is  quite  likely  to  get  far  less  done  and  be
considerably more  harassed  and  "busy"  than  one  who  does.  An  orderly
planning of what one intends to do in  the  coming  day  or  week  and  then
getting it done is an excellent way  to  achieve  production.  But  this  is
using "battle planning" in an irreducible-minimum form as a tool.

Let us take up definitions. Why is this called a "battle plan" in the  first
place? It seems a very harsh military term to apply to the work-a-day  world
of admin. 1 did not select this term; it sort of grew up by  itself  amongst
Sea Org executives. But it is a very apt term.

A war is something that happens over a long period  of  time.  The  fate  of
everything depends on it. A battle is something  which  occurs  in  a  short
unit of time. One can lose several battles and still win a war. Thus one  in
essence is talking about short periods of time when one is talking  about  a
battle plan.

This goes further. When one is talking about a war, one is talking  about  a
series of events which will take place  over  a  long  period  of  time.  No
general, or captain for that matter, ever won  a  war  unless  he  did  some
strategic planning. This would concern an overall conduct  of  a  war  or  a
sector of it. This is the big, upper-level idea sector. It is posed in  high
generalities, has definite purposes and applies at  the  top  of  the  Admin
Scale. (Ref. HCO PL 6 Dec. 70, Personnel Series 13,  Org  Series  18,  THIRD
DYNAMIC DE-ABERRATION.)

Below strategic  planning  one  has  tactical.  In  order  to  carry  out  a
strategic plan one must have the plan of movement and actions  necessary  to
carry it out. Tactical planning normally occurs down the  org  board  in  an
army  and  is  normally  used  to  implement  strategic  planning.  Tactical
planning can go down to a point as low  as  "Private  Joe  is  to  keep  his
machine gun pointed on clump of trees 10 and fire if anything moves in it."

"Middle management"-the heads of regiments right on down  to  the  corporals
are covered by this term-is concerned with the implementation  of  strategic
planning.

The upper planning body turns out a strategic plan. Middle management  turns
this strategic plan into tactical orders. They do this on a long-term  basis
and a short-term basis. When you get on down to  the  short-term  basis  you
have battle plans.

A battle plan therefore means turning strategic planning into exact doable
targets

124



which are then executed in terms of motion  and  action  for  the  immediate
period being worked on. Thus one gets a situation whereby a  good  strategic
plan, turned into good  tactical  targets  and  then  executed,  results  in
forward progress. Enough of these sequences carried out  successfully  gives
one the war.

This should give you a grip on what a battle plan really is. It is the  list
of targets to be executed in  the  immediate  short-term  future  that  will
implement and bring into reality some portion of the strategic plan.

One can see then that management is at its best when there  is  a  strategic
plan and when it is known at least down to the level of  tactical  planners.
And tactical planners are simply those people putting strategic  plans  into
targets which are then known to  and  executed  from  middle  management  on
down. This is very successful management when it is done.

Of course the worthwhileness of any evolution depends on  the  soundness  of
the strategic plan.

But the strategic  plan  is  dependent  upon  programs  and  projects  being
written in target form and which are doable within the resources available.

What we speak of as "compliance" is really a done target. The  person  doing
the target might not be aware of the overall strategic plan or how  it  fits
into it, but 1 assure you that it  is  very  poor  management  indeed  whose
targets do not all implement to one degree or another the overall  strategic
plan.

When  we  speak  of  coordination  (Ref.  HCO  PL  1  July  82,   MANAGEMENT
COORDINATION), we are  really  talking  about  conceiving  or  overseeing  a
strategic  plan  into  the  tactical  version  and  at  the  lower   echelon
coordinating the actions of those who will do the  actual  things  necessary
to carry it out so that they all align in one direction.

All this comes under the heading of alignment. As an example, if you  put  a
number of people in a large hall  facing  in  various  directions  and  then
suddenly yelled at them to start running, they  would,  of  course,  collide
with one another and you would  have  a  complete  confusion.  This  is  the
picture one gets when strategic planning is not turned into smooth  tactical
planning and is not executed within that framework. These people running  in
this hall could get very busy, even frantic, and one  could  say  that  they
were on the job and producing but that would certainly be a very large  lie.
Their actions are not coordinated. Now if we were to take these same  people
in the same hall and have them do something useful  such  as  clean  up  the
hall, we are dealing with specific actions of  specific  individuals  having
to do with brooms and mops-who gets them,  who  empties  the  trash  and  so
forth. The strategic plan of "Get the hall  ready  for  the  convention"  is
turned into a tactical plan which says exactly  who  does  what  and  where.
That would be the tactical plan. The result would be a clean hall ready  for
the convention.

But "Clean up the hall for the convention" by simple inspection can be  seen
to be what would be only a small portion of an overall  strategic  plan.  In
other words the strategic plan itself has to be  broken  down  into  smaller
sectors.

One can see then that a battle plan could exist for the ED or CO of  an  org
which would have a number of elements in it which in their turn were  turned
over to subexecutives who would write battle plans  for  their  own  sectors
which would be far more specific. Thus we  have  a  gradient  scale  of  the
grand overall plan broken down into segments and these segments broken  down
even further.

The test of all  of  this  is  whether  or  not  it  results  in  worthwhile
accomplishments which forward the general overall strategic plan.

If you understand all the above (it would be a good thing to do it in  clay)
you will have mastered the elements of coordination.

125



Feasibility enters into such  planning.  This  depends  upon  the  resources
available. Thus a  certain  number  of  targets  and  battle  plans,  to  an
organization which is expanding or attempting  big  projects,  must  include
organizational  planning  and  targets  and  battle  plans   so   that   the
organization stays together as it expands.

One writes a battle plan, not on the  basis  of  "What  am  I  going  to  do
tomorrow?" or "What am I going to do next week?" (which is fine in  its  own
way and better than nothing), but  on  the  overall  question,  "What  exact
actions do I have to do to carry out this  strategic  plan  to  achieve  the
exact results necessary for this stage of  the  strategic  plan  within  the
limits of available resources?" Then one would have the battle plan for  the
next day or the next week.

There is one thing to beware of in doing  battle  plans.  One  can  write  a
great many targets which have little or nothing to  do  with  the  strategic
plan and which keep people terribly busy and which  accomplish  no  part  of
the overall strategic plan. Thus a battle plan can become a liability  since
it is not pushing any overall strategic plan and is  not  accomplishing  any
tactical objective.

So what is a "battle plan"? It is the doable targets in written  form  which
accomplish a desirable part of an overall strategic plan.

When one is talking about  "mini  programs"  in  an  org,  one  is  actually
talking about small battle plans at the lowest tactical levels.  These  must
be based upon a middle management tactical plan and this  in  turn  must  be
based on a strategic plan.

The understanding and competent use of targeting in battle  plans  is  vital
to the overall accomplishment that raises production,  income,  delivery  or
anything else that is a desirable end.

It is a test of an executive whether or not he can competently  battle  plan
and then get his battle plan executed.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm

126



REVISED

      HUBBARD COMMUNICATIONS OFFICE    See page 227

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 DECEMBER 1982

Remimeo

All Orgs

All Executives

All Management

      Personnel

Org Series 64

Executive Series 36

Esto Series 54

Admin Know-How Series 44

THE TOOLS OF MANAGEMENT

(R efs:

HCO PL 28 July 72      Esto Series 26

      Executive Series 16

      Org Series 32

      ESTABLISHING - HOLDING

      THE FORM OF THE ORG

HCO PL I July 82 Admin Know-How Series 41

      MANAGEMENT COORDINATION

HCO PL I I Apr. 70     THIRD DYNAMIC TECH)

There is a simplicity to managing effectively. It begins with the basics of
manage-

ment.

Although it may appear so to some, successful management  is  not  a  highly
complicated, esoteric activity. But, just as an auditor or a C/S  must  know
and be able to use the exact tools of first dynamic tech in  handling  cases
in order to achieve exact and standard results on a  one-for-one  basis,  so
must an executive or manager know and be able to  use  the  exact  tools  of
third dynamic tech in  handling  groups  to  achieve  successful  and  exact
results in every instance.

Within the wealth of data on third dynamic  tech  contained  in  HCO  Policy
Letters, the OEC Volumes and tapes and  books  on  the  subject,  there  are
certain definite, specific tools a manager uses.  These  are  the  tools  of
management.

The difference between brilliant management and mediocre or  no  management,
at any level, lies in

1.    Knowing what the tools of management are, and

2.    Knowing how to use them.

Many people are not aware that, like a carpenter or  any  other  workman,  a
manager uses specific and exact tools. Thus, we see people  here  and  there
who are doing the equivalent of using the handle of a chisel to drive  nails
into wet concrete.

127



It is a common fault with inexpert workmen to find them  using  their  tools
wrongly or not using them  at  all.  They  make  a  breakthrough  when  they
discover what the specific tools are for.

One can see this in people who  can't  mix  sound  or  can't  become  mixing
engineers. They sit with all these knobs in front of  them,  reach  out  and
grab this knob or that one, hoping hopefully something will  happen  to  the
sound. Yet every component they have in front of them is an  exact  tool  to
do an exact thing with sound!

There are a lot of comparisons one could make, but the point is that  people
in management positions have precise tools available to  them  in  Dianetics
and Scientology which happen to be far better  tools  than  have  ever  been
available on the planet.

One can have very good people on management posts who  still  can  drown  if
they don't know and put to use the basic management tools.

But without these being specified as exact tools one might not see the
simplicity

of it.

MANAGEMENT ECHELONS

Operating as it does into an expanding scene,  Scientology  has  grown  into
the need for and use of various echelons of management.

In orgs, for some time we have had division heads and  above  them  we  have
the Executive Council, headed by the CO or ED of the org.

The OEC (Org  Executive  Course)  and  the  FEBC  (Flag  Executive  Briefing
Course) have long been established as the  essential  courses  for  training
executives to manage successfully at org level.

These courses, and the OEC Volumes upon which  they  are  based,  teach  the
form of the org and how to use the parts and posts and functions that go  to
make up the whole. They  give  us  executives  who  know  how  to  correctly
utilize staff and their assigned posts and duties. We call it  "knowing  how
to play the piano"-it's a matter of knowing what key to hit when  and  which
keys to use in combination to produce a desired  result.  (Ref.  HCO  PL  28
July 72, ESTABLISHING-HOLDING THE FORM OF THE ORG.) In other words,  it's  a
matter of knowing and using one's tools.

The very least training we would expect for a div head in order for  him  to
"know how to play the piano" within his division is for  him  to  have  done
the OEC Volume that covers the form and functions of the division  he  heads
up. If he has also done the OEC and the FEBC, so much the better.

The very least we would expect of a CO or ED, a Chief  Officer,  Supercargo,
Org Exec Sec or HCO Exec Sec is for him to have done the OEC and FEBC.  Then
we have an executive who is  capable  of  "playing  the  piano"  across  the
divisions of the  entire  org,  using  the  hats  and  posts  and  functions
correctly in order to achieve the  utmost  production  from  the  org  as  a
whole.

Above the level of service orgs, we  have  middle  management.  Now  one  is
handling not one function  nor  only  one  org,  but  many  orgs  and  their
functions. And still above that we  have  the  senior  executive  strata  of
management. Here we get into the vital need for "knowing  how  to  play  the
piano" across a much wider sphere, using the full scope of management  tools
and using them with high skill. One might be using the same tools  as  lower
stratas of management but a higher level of expertise is required  as  one's
planning, decisions and actions are influencing far, far broader areas.

What has brought this about is the rapid expansion of Scientology into
wider

128



zones of  responsibility  and  therefore  increased  responsibility  with  a
resultant  increase  in  traffic.  This  naturally  has  to  be  handled  by
increasing efficiency. What it has done, in effect, is  push  some  up  from
lower  level  management  status   to   upper   level   management   status,
necessarily. Without realizing it, some  executives  have  been  climbing  a
status stairs in terms of influence and zones of control. And  they  can  go
only so high without being terribly precise in their  use  of  tools.  After
that, without this acquired precision, they drown.

The obvious answer to all of this is  an  executive  training  program  that
provides  Management  Status  Checksheets  through  which  an  executive  or
manager raises his status by becoming expert with  his  tools.  And  such  a
program has now been developed!

MANAGEMENT STATUS CHECKSHEETS

The new executive training program consists of four status levels.

EXECUTIVE STATUS ZERO consists of simply putting the executive on  post  and
getting him instant hatted.

The Management Status Checksheets which  then  follow,  and  which  carry  a
prerequisite  of  OEC  and  FEBC,  train  the  person  intensively  in   the
recognition, selection and  actual  use  of  management  tools.  Working  up
through these status levels, a manager not only becomes more  proficient  in
handling an org, any org, but becomes fully certified to operate  at  middle
or senior echelons of management.

1.    EXECUTIVE STATUS ONE brings up the exec's awareness of the basic
tools of management and further develops his skill in their use.

Some of these basic tools are the  Admin  Scale,  target  policy,  strategic
planning and programing, the use of org lines  and  terminals,  org  boards,
despatches  and  telexes,  statistics  and  graphs,  conditions,  hats   and
hatting, importance of files, personnel folders, ethics folders,  etc.  Each
one is a specific tool.

2.    EXECUTIVE STATUS TWO covers the upper level tools  of  management  and
enhances one's ability to effectively use such tools  as  survey  tech,  PR,
pilots,  general  economics,  finance  systems,  cost  accounting,   control
through networks,  admin  indicators,  morale,  legal,  goodwill,  exchange,
missions (action missions), economical management and managing by dynamics.

3.    EXECUTIVE STATUS THREE takes up each of the eleven points  upon  which
the senior executive strata operates and trains the person in each of  these
as a specialist action.

Middle and central management personnel should  not  draw  full  pay  or  be
bonus eligible until they have gotten up through Executive Status Three,  as
they will not be operating effectively until they have done this.

With the release of the  new  Management  Status  Checksheets,  precise  and
gradient  training  levels  for  all  echelons  of  management  will   exist
comparable to the precise and gradient  training  levels  required  for  all
echelons of technical delivery-

Quite an unbeatable combination!

One winds up with managers fully familiar with  their  exact  tools,  having
the one-two-three of management tech at their fingertips, and  "knowing  how
to play the

129



piano" effectively across an org, a continent, a planet!

So the answer to current expansion is an action which is geared to bring
about even further expansion. And that is the only way to go!

It begins with the basic tools of management.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:pm.iw.gm

130



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 30 DECEMBER 1982

Remimeo

All Orgs

All Management

      Personnel

All Executives

All Staff

Admin Know-How Series 45

WRITING PROGRAMS AND PROJECTS

(R efs:

HCO PL 18 Aug. 82      Admin Know-How Series 42

      Reiss. 8.9.82    TARGETS AND PRODUCTION

HCO PL 9 Jan. 80 Executive Series 20

      DEPARTMENTAL MINI PROGRAMS:

      THE KEY TO ACHIEVEMENT

HCO PL 19 Aug. 71      PROGRAMS, USE OF -

      HOW TO SAVE USELESS WORK

HCO PL 23 Oct. 69      PROGRAMING)

(The data in this issue has been excerpted from CBO  129,  WRITING  PROJECTS
for issue as a policy letter as it contains pertinent and valuable data  for
hatting those engaged in writing programs or projects.)

Some years back in hatting an aide, I asked her to visualize a  project  she
had written being read and done  at  the  receipt-point-in  other  words  to
assume the viewpoint of the receiver, and to see if she would  then  do  the
project.

After a study of this, she wrote the following excellent analysis of the
action.

      "COMPLIANCE REPORT    8 August 1971

      Re Hatting Action

Dear Sir,

I reread five of my projects to visualize a project of mine being  done  and
to see if I would do it and could easily do it if I received it.

I then also read some LRH written projects to see the difference and
compare.

1.    1 found I would not do a project or would not be interested in doing
it if

a.    I didn't understand it well at first reading (unclear),

b.    If it was too long and complex and therefore unconfrontable,

C.    If the reality of WHY it was needed and  what  improvements  it  would
bring to my post or area was not clearly expressed in the INFO or  SITUATION
of the project. In other words if the purpose of the project wasn't real.

d.    If, just in reading the project, I didn't KNOW what I was supposed to
DO with it or while it was underway.

2.    Then I would have difficulty doing it

a.    If each target didn't call for an ACTION, a DOINGNESS.

b.    If each target called for more than one action (confusing).



C.    If each target was not specifically directed to or assigned to one
person (me) or to somebody else on my orders.

d.    If NO ONE in particular was responsible to get the project done.

e.    If it went in such detail  that  it  didn't  give  me  any  leeway  to
operate in the existing scene and achieve the target,  and  if  I  was  left
without any initiative to do it.

f.    If each target wasn't a START-CHANGE-STOP with a definite time
sequence, it would be more difficult to put it in.

From this I get some POSITIVE points to look for when writing a project:

1.    Clearly assign project responsibility to one terminal or group of
terminals.

2.    Make the info and the situation REAL to the person by showing what
the existing scene is.

3.    Show why the project needs to be done and what it will accomplish,
and sell it by doing so.

4.    Have one ACTION per target and not more than one.

5.    Have the time sequence properly indicated and visible in the project
and make it a clear start-change-stop cycle.

6.    Don't go into too many details. Better even-refer to a PL where
details on HOW to do an action are contained.

7.    On the other hand, don't assume that the receipt-point knows policy
at the fingertip. He most probably doesn't. Don't skip gradients on the
receipt-point.

8.    Make it very clear as to who does what target.

9.    Keep it short and simple, and each target short and words simple.

10. Watch for outpoints.

There are also the regular policies about targets and their  types  and  how
they relate, which are observed.

I'm not saying all my projects were bad and not getting done! FEBC  Projects
are a bit too long maybe, but  do  have  lots  of  doingness  in  them.  One
project is too detailed. One project, as you indicated, has  good  info  but
is unclear as to who does what.

A good one, which had most points above in, got completed well.

Thank you for the hatting action.

Love,

Louise"

L. RON HUBBARD

Founder

CSI:LRH:pm.iw.gm Adopted as official

      Church policy by the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

132



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 5 JANUARY 1983

Remimeo

All Orgs

All FOLOs

All Management

      Units

All Executives

Admin Know-How Series 46

STRATEGIC PLANNING

(R ef. -

HCO PL 22 Aug. 82      Admin Know-How Series 43

            BATTLE PLANS

HCO Pl, I July 82      Admin Know-How Series 41

      Reiss. 17.9.82   MANAGEMENT COORDINATION

HCO PL 18 Aug. 82      Admin Know-How Series 42

      Reiss. 8.9.82    TARGETS AND PRODUCTION

HCO PL 29 Dec. 82      Admin Know-How Series 44

            Org Series 64

            Executive Series 36

            Esto Series 54

            THE TOOLS OF MANAGEMENT

HCO PL 9 Jan. 83 Admin Know-How Series 47

            CHECKLIST FOR A STRATEGIC PLAN)

What is strategic planning?

Although it has already been described at some length in HCO PL 22 Aug.  82,
BATTLE PLANS, strategic planning is of such vital importance in  the  scheme
of things  that  it  merits  more  emphasis  and  in-depth  study  by  those
responsible for it. So let us examine strategic planning  further,  both  as
to its definition and use as well as its relationship to  other  aspects  of
management.

STRATEGIC PLANNING - WHAT IT IS

The term "STRATEGY" is derived from the Greek words:

straftos, which means "general,"

stratos, which means "army,"

agein, meaning "to lead."

STRATEGY, therefore, by dictionary definition, refers  to  a  plan  for  the
overall conduct of a war or sector of it.

By extrapolation, it has also come to mean a plan for the  skillful  overall
conduct of a large field of operations, or  a  sector  of  such  operations,
toward the achievement of a specific goal or result.

This is planning that is done at upper echelon level, as, if  it  is  to  be
effective,  it  must  be  done  from  an  overview  of  the  broad  existing
situation.

It is a statement of the intended plans for accomplishing a broad  objective
and inherent in its definition is the idea of clever  use  of  resources  or
maneuvers for outwitting the enemy or overcoming existing obstacles  to  win
the objectives.

133



It is the central strategy worked out at the top which,  like  an  umbrella,
covers the activities of the echelons below it.

That tells us what strategic planning is.

WHAT IT DOES

What strategic planning does is provide direction for the activities of  all
the lower echelons. All the tactical plans and programs and projects  to  be
carried out at lower echelons in order to accomplish  the  objective  stream
down from the strategic plan at the top. It  is  the  overall  plan  against
which all of these are coordinated.

This gives a clear look at why strategic planning is  so  vitally  important
and why it must be done by the upper level planning body  if  management  is
to be effective and succeed.

What happens if strategic planning is missing? Well,  what  happens  in  the
conduct of a war if no strategic planning is done?

Key troops can be left unflanked and unsupported in key  areas  while  other
troops fight aimless battles at some minor outpost. Supplies and  ammunition
could be deployed to the wrong area or not forwarded  at  all.  Conflict  of
orders, jammed lines and maneuvers, wasted resources and  lost  battles  all
result. With the lack of a plan, coordination is missing and  it's  a  scene
of confusion and dispersal. In short, disaster.

What a difference between this and a strong,  coordinated,  positive  thrust
toward attaining the objective!

Transposing all of this over into our own activity  gives  an  even  clearer
look at why  strategic  planning  must  be  done  at  the  upper  levels  of
management. The key word here is "done." It cannot be neglected  or  dropped
out. It cannot be assumed to be done. Strategic planning must  be  done  and
stated and made known at least to the next lower  levels  of  management  so
coordination and correct targeting can take place.

PURPOSE AND STRATEGIC PLANNING

A strategic plan begins with the observation of a situation  to  be  handled
or a goal to be met.

It always carries with it a statement of the definite  purpose  or  purposes
to be achieved.

Once the purpose has been established, it is  possible  to  derive  from  it
various strategic plannings.

Strategic planning is actually a very postgraduate form  of  "bright  idea."
(RefHCO PL 17 Feb. 71, Data Series 23, PROPER FORMAT AND CORRECT ACTION.)

In fact,  STRATEGY  CAN  BE  SAID  TO  BE  HOW  ONE  IS  GOING  TO  ACTUALLY
EFFECTIVELY AND SWIFTLY GET A PURPOSE MANIFESTED AND  ROLLING  IN  THE  REAL
PHYSICAL UNIVERSE AT SPEED AND WITH NO FLUBS.

Some strategic plannings are the result, really,  of  thumbnail  evaluations
done on the broad overall scene.

Any strategic plan can encompass a number of  major  actions  required  from
one or more different sectors in order to achieve  the  purpose.  These  are
expressed in highly general terms as they are a  statement  of  the  initial
overall planning that has been done. From them one can then derive  tactical
plannings. But all of these things have to fit together.

134



EXAMPLE

Situation: The ABC Paper Company, though continuing to produce its  formerly
successful line of paper products, is also continuing to concentrate  solely
on its regular, already-established clientele while neglecting a  number  of
its potential publics. The company is rapidly going  broke  and  losing  its
execs to companies where there is "more opportunity for expansion."

Purpose: Put a full-blown paper company  there  which  reaches  all  of  its
potential public for volume sales of existing and  new  products,  while  it
also continues to sell and service its  regular  clientele  in  volume,  and
thus restore the company's solvency and build its  repute  as  a  lucrative,
progressive concern with opportunities for expansion.

Strategic  Plan:  The  strategic  planning,  based  on  the  situation   and
established purpose, might go something like this:

1. The most immediate and vital action needed to arrest  the  losses  is  to
(without interrupting any ongoing business or unmocking any other unit)  set
up and get functioning a new sales unit (alongside the existing  one)  which
will have as its first priority the development  of  immediate  new  clients
for the current line of products from among (a) retail  paper  outlets,  (b)
wholesale paper outlets, and  (c)  direct  mail  order.  Clean,  experienced
salesmen will need to be procured to head up each  of  these  sections,  and
other professional salesmen will need to be located in volume. These can  be
hired at very low retainer and make the bulk of their money on  commissions.
This operation can then  be  expanded  over  broader  areas  using  district
managers, salesmen who start other salesmen and even door-to-door  salesmen.
As a  part  of  this  plan,  commission  systems,  package  sales  kits  and
promotion and advertising will need to be worked out. Getting this going  on
an immediate basis will boost sales  and  offset  losses  and  very  shortly
expand the company into the field of stellar profits.

2. While the immediate  holding  action  is  going  in,  current  sales  and
servicing of clients must  be  maintained.  At  the  same  time,  sales  and
production records of existing staff will need to be reviewed as well  as  a
thorough accounting done of company books  to  find  where  the  losses  are
coming from. Any deadwood will need to  be  weeded  out  and  those  who  do
produce retained. Should  any  embezzlement  or  financial  irregularity  be
found this will need to be handled with appropriate legal action.  In  other
words, the current operation is to be fully reviewed,  cleaned  up  and  its
production not only maintained but stepped up all possible, with  production
targets set and met.

3. A program is to be worked out whereby surveys are done of all publics  to
find out what new paper products the publics want  or  will  buy.  Based  on
these survey results, a whole new line of paper products (additional to  the
old established line) can then be developed,  produced,  promoted  and  sold
broadly. The program for establishing the new line of  goods  will  need  to
cover financing, the org boarding of  the  new  production  unit  (including
clean executives, competent designers, any  needed  additional  workmen)  as
well as any additional machinery or equipment required. It  will  also  need
to cover broad PR, promotion and sales campaigns that push the new  products
as well as the old for volume sales  of  both.  Inherent  in  this  planning
would be a campaign to enhance the company's image as pioneers in the  field
of new paper products with opportunities for expansionminded executives.

Such a strategic plan not only corrects a bad situation but turns it  around
into a highly profitable and expanding scene for the  future  of  the  whole
company.

What one is trying to accomplish is digging the scene out of  the  soup  and
expanding it into a terrific level of viability.

135



From this strategic plan, tactical planning would be done, taking the  broad
strategic targets and breaking them down into precise  and  exactly-targeted
doingnesses which get the strategic planning executed.

One would have many people working on this and it would  be  essential  that
they all had the purpose straight and that there be no conflicting  internal
spots in the overall campaign. Somebody reading over such  plans  might  not
see the importance of it unless they understood  the  situation  and  had  a
general overall riding purpose from which they could refine  their  tactical
planning.

It is quite common in tactical execution of a strategic planning to find  it
necessary to modify some tactical targets or add new ones or even  drop  out
some as found to be unnecessary.

The tactical management of a strategic planning  is  a  bit  of  an  art  in
itself so this is allowed for.

Given a good purpose, then, against which things  can  be  coordinated,  the
strategic action necessary to accomplish it can then be worked out  and  the
tactical plans to bring the strategic plans into existence can follow.

This way a group can flourish and prosper. When  all  strengths  and  forces
are aligned to  a  single  thrust  a  tremendous  amount  of  power  can  be
developed.

So one gets the purpose stated and from that works out  what  strategy  will
be used to accomplish the purpose and this then bridges the purpose  into  a
tactical feasibility.

When the strategic plan, with its purpose,  has  been  put  forward,  it  is
picked up by the next lower  level  of  command  and  turned  into  tactical
planning.

STRATEGIC VERSUS TACTICAL PLANNING

Strategy differs from tactics.

This is a point which must be clearly understood by the various echelons  of
management.

There is a very, very great difference between a strategic plan and a
tactical plan,

While tactical planning is used to win an engagement, strategic planning  is
used to win the full campaign.

While the strategic plan is  the  large-scale,  long-range  plan  to  ensure
victory, a tactical plan tells  exactly  who  to  move  what  to  where  and
exactly what to do at that point.

The tactical plan must integrate into the strategic plan and accomplish  the
strategic plan. And it must do this with precise, doable targets.

And that, in essence, is management.

BRIDGING BETWEEN PURPOSE AND TACTICAL

One error that is commonly made by  untrained  personnel  is  to  jump  from
purpose to tactical planning, omitting the strategic plan.  And  this  won't
work. The reason it won't work is that unless one's targeted  tactical  plan
is aligned to a strategic plan it will go off the rails.

The point to be understood here is that strategic planning creates  tactical
planning. One won't get one's purpose achieved unless there  is  a  strategy
worked out and used by which to achieve it. And,  based  on  that  strategy,
one works out the tactical

136



moves to be made to implement the strategy.  But  jumping  from  purpose  to
tactical. ignoring the strategy, one will miss.

So, between purpose and tactical there  is  always  the  step  of  strategic
planning. We could say that by a strategic plan is meant some means  to  get
the purpose itself to function.

It is actually a plan that has to do with cleverness.

One might be well aware of the purpose and might come up with  a  number  of
tactical targets having to do with it. And possibly the targets  will  work,
in themselves. But the purpose is to get a situation handled and, lacking  a
strategic means to do this, one might still find  himself  facing  the  same
problem.

Putting the actual bridge there between purpose and tactical,  which  bridge
is the  strategic  side  of  it,  the  purpose  will  have  some  chance  of
succeeding.

USE OF MANAGEMENT TOOLS

Strategic planning is one of the vital tools of management.

Getting a truly strategic plan worked out can necessitate  calling  all  the
other tools of management into play.

One needs to know org boards, lines and  terminals,  programing  and  target
policy, to name just a few of these tools. One has  to  have  a  familiarity
with personnel  policy,  statistics,  graphs,  conditions  and  the  use  of
ethics. A knowledge  of  finance  policy  is  often  required.  Knowing  and
utilizing the various networks can enter into  it.  And  certain  situations
will very clearly indicate the need for  surveys  or  the  use  of  PR  tech
which, cleverly used, can not only correct a sour  scene  but  can  actually
turn it around to one's advantage.

These are all resources. Anyone doing strategic planning has got to be  able
to use them and to be able to use them strategically, as that is  what  this
planning is all about.

The management terminal who does have these tools under  his  belt  and  who
clearly understands the sequence of purpose followed by  strategic  planning
which can then be turned into tactical planning will be  a  stellar  manager
indeed!

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:pm.iw.gm

137



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 9 JANUARY 1983

All Orgs

All FOLOs

All Management Units

All Executives

All AVC Units and Issue Authority Terminals

Admin Know-How Series 47

CHECKLIST FOR A STRATEGIC PLAN

(Ref:

HCO Pl, 5 Jan. 83      Admin Know-How Series 46

            STRATEGIC PLANNING

HCO PL 22 Aug. 82      Admin Know-How Series 43

            BATTLE PLANS

HCO PL I July 82 Admin Know-How Series 41

      Reiss. 17.9.82   MANAGEMENT COORDINATION

HCO PL 18 Aug. 82      Admin Know-How Series 42

      Reiss. 8.9.82    TARGETS AND PRODUCTION

HCO PL 29 Dec. 82      Org Series 64

            Exec Series 36

            Esto Series 54

            Admin Know-How Series 44

            THE TOOLS OF MANAGEMENT)

Those writing strategic plans  as  well  as  those  passing  them  have  the
responsibility for ensuring:

I . That strategic plans are correct and will handle what they are designed
to handle.

2.    That strategic planning is done to handle existing situations.

3-    That no situation or goal requiring strategic planning is left
uncovered by an overall plan for its handling.

Additionally, those writing strategic  plans  have  the  responsibility  for
getting  themselves  trained  to  proficiency  in  the  use  of  this  vital
management tool.

And those passing on  strategic  plans  have  the  added  responsibility  of
correctly critiquing submitted plans, with no  caprice  or  opinion  entered
into the line. With standard, in-tech criticism  given,  those  in  planning
positions can be  brought  up  to  greater  proficiency  in  their  planning
through cramming, additional training and, as needed, ethics.

The following checklist is therefore offered as a guide  for  those  writing
strategic plans and those  whose  job  it  is  to  approve  such  plans  and
authorize them for issue.

138



CHECKLIST FOR A STRATEGIC PLAN

1. a. Has the strategic plan been preceded by correct observation of the
situation to be handled?

b.    Is it a valid situation?

C.    Has all the applicable data been examined?

(These points would show up in verification of the  information  section  of
the plan.)

2.    Is there a clear and comprehensive statement of the situation the
plan is designed to handle?

3.    Is there a clear statement of the purpose to be achieved?

4.    Is the purpose, as stated, based on and consistent with the
situation?

5.    Is the purpose broad enough and stated in sufficiently broad terms so
that, when achieved, it will not only handle the situation but result in
increased viability?

6.    Is the strategic plan itself aligned to and consistent with the
purpose?

7.    Is the plan clearly expressed and understandable?

8.    Does the plan include a strategy that will actually and effectively
implement the purpose and swiftly get it rolling in the physical universe?

9.    Is the proposed strategy actually clever and bright enough to achieve
the purpose?

10.   Is the plan broad enough to fully accomplish the purpose?

11.   Is it doable?

12.   Does it cover, in broad general  terms  as  required  in  a  strategic
plan, the major actions and areas which need to be  programed  in  order  to
accomplish the purpose?

13.   Where it uses any of the other tools of management, does it use these
correctly?

14.   Does it take existing resources or lack of them into consideration?

15.   Does it include strategic use of lines, terminals or networks where
the need for this is obvious?

16.   Does it include the use of surveys and/or PR handling where these are
obviously indicated by the situation?

17.   Does it tend to collapse purpose and tactical planning and omit the
needed strategy? (If so, it needs correction.)

18.   Does  the  strategic  plan  effectively  bridge  between  purpose  and
tactical so that it can be used for coordination in  tactical  planning  and
serve as an orientation point for precisely targeted actions?

139



The above checklist is not in any way intended to be  used  by  planning  or
approval terminals as a substitute for study  of  the  references  and  full
data on strategic planning.

While  other  factors  than  those  listed  might  need  to  be  taken  into
consideration, the  checklist  provides  the  main  points  upon  which  any
strategic plan would be judged.

And it is probably safe to say that any plan which  had  all  of  the  above
positive points in would be worthy  of  the  title  "strategic"  and  highly
effective when executed.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:pm.sk.gm

140



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 31 JULY 1983

Remimeo     Issue I

All Orgs

All Execs

All Management

      Personnel

            Executive Series 38

            Esto Series 56

            Admin Know-How Series 48

BASIC MANAGEMENT TOOLS

(R efs:

HCO PL 29 Dec. 82R     Org Series 64R

      Rev. 30 July 83  Executive Series 36R

            Esto Series 54R

            Admin Know-How Series 44R

            THE TOOLS OF MANAGEMENT

HCO PL 31 July 83      Executive Series 39

      Issue II   Esto Series 57

            Admin Know-How Series 49

            MANAGEMENT TOOLS BREAKTHROUGH)

The following is a list of the materials which, out of  the  many  tools  of
management, comprise the BASIC MANAGEMENT TOOLS.

1.    A DMIN SCALE: A scale for use which gives  a  sequence  (and  relative
seniority) of subjects relating to organization. The  scale,  from  the  top
down, includes Goals, Purposes, Policy, Plans, Programs,  Projects,  Orders,
Ideal Scenes, Statistics, Valuable Final Products. The scale  is  worked  up
and down until it is (each  item)  in  full  agreement  with  the  remaining
items. In short, for success all these items in the scale  must  agree  with
all other items on the same subject.

2.    TARGET- A TARGET is an objective one intends to accomplish within a
given period of time.

3.    STRATEGIC PLANS: A STRATEGIC PLAN  is  a  statement  of  the  intended
plans for accomplishing a broad objective and inherent in its definition  is
the idea of clever use of resources or maneuvers for  outwitting  the  enemy
or overcoming existing obstacles to win the objective.  It  is  the  central
strategy worked  out  at  the  top  which,  like  an  umbrella,  covers  the
activities of the echelons below it,

4.    PROGRAMS: A PROGRAM is a series of steps in sequence to carry out a
plan. Programs are made up of all types of targets coordinated and executed
on time.

5.    PROJECTS: A PROJECT is a series of guiding steps written  in  sequence
to carry out one step of a program, which, if followed,  will  result  in  a
full and successful accomplishment of the program target.

6.    ORDERS: An ORDER is the direction or command issued by  an  authorized
person to a person or group within the sphere  of  the  authorized  person's
authority. It is the verbal or written direction to a  lower  or  designated
authority to carry out a program step or  apply  the  general  policy.  Some
program steps are so simple that they are themselves an order  or  an  order
can simply be a roughly written project. By implication an order  goes  from
a senior to juniors.

140-A



All orders of whatever kind by telex, despatch or  Mission  Orders  must  be
coordinated with current written command intention. You can destroy  an  org
by issuing  orders  to  it  uncleared  and  uncoordinated.  Coordinate  your
orders! Clear your orders!

7.    COMPLIANCE REPORTS: A COMPLIANCE REPORT is a report to the  originator
of an order that the order has been done and is a  completed  cycle.  It  is
not a cycle begun; it is not a cycle in progress; it is  a  cycle  completed
and reported back to the originator as done.

When an executive or manager accepts "done"  as  the  single  statement  and
calls it a compliance, noncompliance can occur unseen. Therefore,  one  must
(1) require explicit compliance to every order and (2) receive the  evidence
of the compliance pinned to the Compliance Report. Such  evidence  might  be
in the form of copies of the actual  material  required  by  the  order  and
procured, or photographs of  it,  ticket  stubs,  receipts,  a  signed  note
stating the time and place some action was carried  out,  etc.  Evidence  is
data that records a "done" so somebody else can know it is done.

It is up to LRH Comms, Flag Reps or execs to verify reports of dones or  get
dones done. True compliances to evaluated programs are vital.

8.    TERMINALS: A TERMINAL is something that has  mass  and  meaning  which
originates, receives, relays and changes particles on a flow  line.  A  post
or terminal is an assigned  area  of  responsibility  and  action  which  is
supervised in part by an executive.

A fixed-terminal post  stays  in  one  spot,  handles  specific  duties  and
receives communications, handles them and sends them on their way.

A line post has to do with organizational lines, seeing that the  lines  run
smoothly, ironing out any ridges in the  lines,  keeping  particles  flowing
smoothly from one post to another post. A line post is  concerned  with  the
flow of lines, not necessarily with the fixed-terminal posts at the  end  of
the lines.

9.    LINES: A LINE is the route along which a particle travels between one
terminal and the next or between grouped or associated terminals.

A COMMAND LINE is a line  on  which  authority  flows.  It  is  vertical.  A
command line is used upward for  unusual  permission  or  authorizations  or
information or important actions or compliances. Downward  it  is  used  for
orders.

A COMMUNICATION LINE is the line on which particles flow. It is  horizontal.
A communication line does  not  refer  to  physical  equipment  but  to  the
passage of ideas between two points. A flow of ideas, in two directions,  on
paper, establishes a comm line.

The most important things in an organization are its  lines  and  terminals.
Without these in,  in  an  exact  known  pattern,  the  organization  cannot
function at all. The lines will flow if they are  all  in  and  people  wear
their hats.

10.   ORG BOARDS: An ORG BOARD (ORGANIZING BOARD)  is  a  board  that  shows
what functions are done in the org, the order they are done in  and  who  is
responsible for getting them done.  The  ORG  BOARD  shows  the  pattern  of
organizing to get a product. It is the pattern of the  terminals  and  their
flows. We see these terminals as "posts" or positions. Each of  these  is  a
hat. There is a flow along these hats. The result of the whole org board  is
a product. The product of each hat  on  the  board  adds  up  to  the  total
product.

11.   HATS: HAT is a term to describe the write-ups, checksheets  and  packs
that outline the purposes, know-how and duties  of  a  post.  It  exists  in
folders and packs and is trained in on the person on the post to a point  of
full application of the data

140-B



therein. A HAT designates what terminal in the organization  is  represented
and what the terminal handles and what flows the terminal  directs.  HATTING
is the action  of  training  the  person  on  the  checksheet  and  pack  of
materials for his post.

12.   TELEXES: A TELEX is a message sent and  received  by  means  of  telex
machines at specific stations hooked up with one another.  This  is  a  fast
method of communication, similar to a telegram or cable.

Use telexes as though you were sending  telegrams.  Positiveness  and  speed
are the primary factors. Cost enters  as  a  third.  Security  enters  as  a
fourth consideration, All have importance but in that order.

Telexes must be of such clarity that any other person in the  org  can  read
and understand them. You  must  take  responsibility  for  both  ends  of  a
communication line. Write your communication  (telex)  so  that  it  invites
compliance or answer without further query or dev-t. Entheta in  telexes  on
a long-distance comm line is forbidden.

Don't use telexes when  despatches  will  do.  Nonurgent  communications  on
telex lines jam them. Do NOT put logistics (supply) on a telex  line.  Telex
lines should only be used for communications concerning operations.

13.   DESPATCHES: A DESPATCH is a memo to or from another  staff  member  in
your organization or in another. When writing a despatch, address it to  the
POST-not the person. Date your despatch. Route to the  hat  only,  give  its
department, section and org. Put any  vias  at  the  top  of  the  despatch.
Indicate with an arrow the first destination. Sign it  with  your  name  but
also the hat you're wearing when you write it.

As with telexes, despatches must  be  written  so  clearly  that  any  other
person in the org can read and understand them, with the  originator  taking
responsibility for both  ends  of  the  communication  line.  And,  as  with
telexes, entheta in despatches on a long-distance comm line is forbidden.

14.   STATISTICS: A STATISTIC is a number or amount compared to  an  earlier
number or amount of the same thing. STATISTICS  refer  to  the  quantity  of
work done or the value of  it  in  money.  Statistics  are  the  only  sound
measure of any production  or  any  job  or  any  activity.  These  tell  of
production. They measure what is done. Thus, one can manage  by  statistics.
When one is  managing  by  statistics,  they  must  be  studied  and  judged
alongside the other related statistics.

15.   GRA PHS: A GRAPH is  a  line  or  diagram  showing  how  one  quantity
depends on, compares with or changes another. It  is  any  pictorial  device
used to display numerical relationships.

16.   CONDITIONS: A CONDITION is an operating state. Organizationally,  it's
an operating state and oddly enough in the mest universe there  are  several
formulas connected with these states. The  table  of  conditions,  from  the
bottom up,  includes  Confusion,  Treason,  Enemy,  Doubt,  Liability,  Non-
Existence, Danger, Emergency, Normal, Affluence and Power or  Power  Change.
There is a law that holds true in this universe  whereby  if  one  does  not
correctly designate the condition he is in and  apply  its  formula  to  his
activities or if he assigns  and  applies  the  wrong  condition,  then  the
following  happens:  He  will  inevitably  drop  one  condition  below   the
condition he is actually in. One has to do the steps of a condition  formula
in order to improve one's condition.

17.   PERSONNEL FOLDERS: A PERSONNEL FOLDER is kept in HCO for  each  person
employed by the org. The folder is to contain all pertinent  personnel  data
about the person: name, age, nationality, date employment  started,  address
(if other than the org), next of kin, social security number,  test  scores,
previous  education,  skills,  previous  employment,  case  level,  training
level, name of post, former posts held and dates held, production record  on
post(s), date  employment  ceased,  copies  of  all  tests,  and  any  other
pertinent data.

140-C



Copies of contracts, agreements or legal papers connected  with  the  person
are filed in the personnel folder. The originals of such papers are kept  in
the valuable documents files.

A personnel folder is  used  for  purposes  of  promotion  and  any  needful
reorganization and so should contain  anything  that  throws  light  on  the
efficiency, inefficiency or character of personnel.

Personnel folders are filed by division and  department  in  HCO,  with  the
personnel in separate folders  filed  alphabetically  in  their  department.
There should be two sections in the personnel files: (1)  present  employees
and (2) past employees.

18.   ETHICS FOLDERS: An ETHICS FOLDER is kept in HCO  for  each  individual
staff member. It is a  folder  which  should  include  his  complete  ethics
record, ethics chits, Knowledge Reports, commendations and copies, as  well,
of any justice actions taken on the person, such  as  Courts  of  Ethics  or
Comm Evs, with their results.

Filing is the real trick of Ethics work. The  files  do  90%  of  the  work.
Ethics reports patiently filed  in  folders,  one  for  each  staff  member,
eventually makes one file fat. When one file gets fat, call  the  person  up
for Ethics action and his area gets smooth.

19.   FILES: A FILE by definition is an  orderly  and  complete  deposit  of
data  which  is  available  for  immediate  use.  As  FILES  are  the  vital
operational line, it is of  the  GREATEST  IMPORTANCE  that  ALL  FILING  IS
ACCURATE. A misfiled particle can be lost forever. A missing item can  throw
out a whole evaluation or a sale. It is of vital interest both  in  ease  of
work and financially that all files are straight.

20.   DATA SERIES: The tool to discover causes. The DATA SERIES is a  series
of policy letters which deal with logic, illogic, proper evaluation of  data
and how to detect and handle the causes of good and bad  situations  in  any
organization to the result of increased prosperity.

There is considerably more data on each of  these  tools  contained  in  the
policy letters in the OEC Volumes, none of it complicated  or  difficult  to
grasp.

The purpose of this policy letter is simply to advise the  exec  that  these
are his tools-his most fundamental and  basic  management  tools.  And  that
they are for USE and it is VITAL that he USE them.

Why9 Because use of these simple, basic tools means the  difference  between
a failing org and a flourishing one.

And we want organizations to flourish!

L. RON HUBBARD

Founder

CSI:LRH:iw.gm    Adopted as official

      Church policy by the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

[Note: This issue was added just as the book was about to go  to  press  and
after the subject index was completely  typeset.  Thus  index  entries  from
this  issue  do  not  appear  in  the  main  subject   index.   However,   a
supplementary subject index has been added on page 731.1

140-D



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 31 JULY 1983

Remimeo     Issue 11

All Orgs

All Execs

All Management   Executive Series 39

      Personnel  Esto Series 57

Admin Know-How Series 49

VITAL - IMPORTANT

MANAGEMENT TOOLS BREAKTHROUGH

(Refs:      HCO PL 29 Dec. 82R    Org Series 64R

      Rev. 30 July 83  Executive Series 36R, Esto Series 54R

      Admin Know-How Series 44R

      THE TOOLS OF MANAGEMENT

HCO PL 31 July 83      Executive Series 38, Esto Series 56

      Admin Know-How Series 48

      BASIC MANAGEMENT TOOLS)

THE FIRST THING AN EXECUTIVE OR MANAGER AT ANY LEVEL NEEDS TO KNOW  IS  THAT
HE HAS TOOLS WITH WHICH TO MANAGE.

This applies to top levels of management, to middle-management echelons  and
in every org from the CO or ED down through the Exec Council and every  head
of a division or department.

BREAKTHROUGH

This datum is the result of a recent, eye-opening breakthrough.

The breakthrough was not a matter of discovering or developing or  improving
the materials which make up the tools of management. Org boards,  the  Admin
Scale, target  policy,  planning  and  programing,  statistics,  graphs  and
conditions (to name  a  few  of  these  tools)  have  been  a  part  of  our
technology, well-defined, available for use and used for  quite  some  years
now.

THE BREAKTHROUGH WAS IN DISCOVERING THAT A GREAT  MANY  EXECUTIVES  DID  NOT
LOOK UPON THESE AS TOOLS.

But unless one does recognize them as tools, unless one actually  puts  them
in the category of tools, like rakes and shovels  and  wheelbarrows,  he  is
apt to think of them as opinions or theories or something of  the  sort.  He
won't recognize that he does have actual tools with which  to  manage.  And,
not realizing this, he won't USE them in managing.

Such a scene could be compared to somebody building a house who didn't  even
know he was trying to build a house and, should this be pointed out to  him,
he would look at hammers and saws  as  if  they  were  total  strangers.  He
wouldn't wind up with a house.

Any activity has its tools. And if one is going to engage  in  an  activity,
he had better know what its tools are and that they are for use.

BASIC MANAGEMENT TOOLS

We are rich in management tools but the most fundamental of them-,  required
for use at any executive level from the highest to the lowest, are these:

ADMIN SCALE ORG TERMINALS   CONDITIONS

TARGET POLICY    SPECIFIC LINES   PERSONNEL FOLDERS

STRATEGIC PLANS  ORG BOARDS ETHICS FOLDERS

PROGRAMS    HATS AND HATTING      FILES

PROJECTS    TELEXES    DATA SERIES.

ORDERS      DESPATCHES

COMPLIANCE REPORTS     STATISTICS AND GRAPHS

140-E



Each of these fundamental tools is defined and covered briefly in HCO PL  31
July 1983, BASIC MANAGEMENT TOOLS.

None of these  are  complicated.  They  are  actually  SIMPLE  but  VITALLY,
VITALLY IMPORTANT.

One gets some terminals, gets them some lines, gets the channels of  command
and echelon worked out, gets in strategic planning and  with  that  one  can
achieve some coordination.

But it is necessary to be able to conceive  of  purpose  (which,  in  target
policy, becomes objectives). And  it  is  necessary  to  be  able  to  write
targets that will accomplish that objective or  that  purpose.  To  get  the
targets done one needs lines and terminals there.  And  to  have  lines  and
terminals, of course, one has to have an org board.

SIMPLE. But VITALLY IMPORTANT.

In  laying  out  these  tools  we  are  laying  out  the   fundamentals   of
organization as that, most definitely, is what these tools  are.  And  these
tools will give one  an  organization.  Without  them,  you  don't  have  an
organization; you have a mob. And  if  one  cannot  figure  out  purpose  or
objectives or write targets and telexes and get hatting done and  hats  worn
they'll just keep on being a mob. But correct use of just  this  basic  list
of management tools can turn a mob into a producing organization!

EXEC STATUS ONE CHECKSHEET

A fast, instant-hat type of checksheet  called  Exec  Status  One  is  being
provided to swiftly train execs and managers at all levels on these tools.

This is not a substitute for an OEC or FEBC. But it is vital  that  an  exec
starts using these tools right now, instantly and at once yesterday,  if  he
considers  himself  an  executive  or  is  in  a  position  of  handling  an
organization of any type, size or kind. Because  if  he  doesn't  use  these
tools, he's going to lay an egg.

ETHICS

Once the exec has passed this first checksheet, Exec  Status  One,  it's  an
ethics offense to fail to use these  tools  properly.  One  would  handle  a
first or second offense with cramming,  but  after  that  it's  a  Court  of
Ethics and,  in  the  case  of  a  person  having  trained  on  these  tools
continuing to misapply or not apply these tools, it becomes a matter  for  a
Comm Ev.

SUMMARY

1.    First, an executive or manager must know that actual TOOLS EXIST for
his use

      in managing.

2. Second, he needs to know WHAT his tools are.

3.    Third, he must realize that these tools are SIMPLE but VITALLY,
VITALLY

IMPORTANT, that they are for USE and he must USE THEM.

L. RON HUBBARD

Founder

Adopted as official

CSI:LRH:pm.iw.gm Church policy by the



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

[Note: This issue was added just as the book was about to go  to  press  and
after the subject index was completely  typeset.  Thus  index  entries  from
this  issue  do  not  appear  in  the  main  subject   index.   However,   a
supplementary subject index has been added on page 731.]

140-F



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 29 OCTOBER 1971

                                  Issue 11

Remirneo

All Executive Hats

Executive Series I

THE EXECUTIVE

(Note: Those personnel in orgs who are titled as executives  are  the  Board
Members, the Commanding Officer or Executive Director or head  of  the  org,
the HCO  Executive  Secretary,  the  Org  Executive  Secretary,  the  Public
Executive Secretary, the heads of divisions and the  heads  of  departments.
In very large orgs the title is extended to  heads  of  large  sections.  To
these listed persons especially this data on executives applies.)

Before one  can  adequately  perform  the  duties  of  an  executive  in  an
organization one would have to know what an executive is.

EXECUTIVE:  One  who  holds  a  position  of  administrative  or  managerial
responsibility in an organization.

To give one some  idea  of  the  power  associated  with  the  word,  Daniel
Webster, in 1826, defined it as "The officer,  whether  king,  president  or
other chief magistrate, who superintends the  execution  of  the  laws;  the
person who administers the  government,  executive  power  or  authority  in
government. Men most desirous of places in  the  executive  gift,  will  not
expect to be gratified, except by  their  support  of  the  executive.  John
Quincy."

Executive is used in distinction from legislative  and  judicial.  The  body
that deliberates and enacts laws is legislative; the  body  that  judges  or
applies the laws to particular cases is judicial; the  body  or  person  who
carries the laws into effect or superintends  the  enforcement  of  them  is
executive, according to its 19th century governmental meaning  according  to
Webster.

The word comes from the Latin  "Ex(s)equl  (past  participle  ex(s)eC[itus),
execute, follow to the end: ex-, completely + sequi, to  follow."  In  other
words, he follows things to the end and GETS SOMETHING DONE.

Taking up the  definition  part  by  part  we  can  achieve  a  considerable
understanding of the nature and beingness of an executive.

"One who holds a position . . ."; a position is a place or location.  It  is
social standing or status; rank. It is a post of employment; job. The  sense
of this is that an  executive  is  a  STABLE  TERMINAL  for  his  staff  and
assistants. He is not continuously elsewhere or missing. He  actually  holds
his position, social standing, status, rank and  performs  his  duties  from
that position. He is known and visible and in one way or  another  reachable
or himself reaches those areas which need to be handled.

". . . of administrative . .  ."  in  the  definition  would  refer  to  his
actions in administering his area. Administer  means  "to  have  charge  of;
direct; manage." It is taken from the Latin administr6re, to be an  aid  to:
ad-, to + ministr6re, to serve. From minister, servant. By this we see  that
he has charge of, directs, manages and SERVES his area.

141



". . . or managerial. . ." refers to management, which is  the  act,  manner
or practice  of  managing,  handling  or  controlling  something.  Skill  in
managing, executive ability, which means that the  activity  is  HANDLED  or
CONTROLLED by the executive.

".  .  .  responsibility  means  the  state,  quality  or  fact   of   being
responsible, and responsible means legally or ethically accountable for  the
care or welfare of another. Involving personal accountability or ability  to
act without guidance or superior authority. Being the  source  or  cause  of
something. Capable of making moral or rational decisions on  one's  own  and
therefore answerable for one's behavior. Able  to  be  trusted  or  depended
upon; reliable. Based upon  or  characterized  by  good  judgment  or  sound
thinking. This means essentially that an executive DOES NOT WAIT FOR  ORDERS
TO ACT. He is the one who, guided by policy, acts on his own  initiative  to
handle and supervise his area  and  others  and  does  not  himself  require
supervision.

". . . in an organization." An organization means the act of  organizing  or
the process of being organized. The state or manner of being  organized:  "a
high degree of organization." Something that  has  been  organized  or  made
into an ordered whole.  A  number  of  persons  or  groups  having  specific
responsibilities and united for some purpose or work. Thus  an  organization
is an activity or area that is being organized  or  has  been  organized  or
made into an "ordered whole."

Thus, from the words and definitions taken from the language itself and  the
tradition of the culture, we can see what an executive is, what he does  and
what he eventually has-an organization.

It is very interesting  that  one  can  examine  the  above  definition  and
subdefinitions and analyze an executive's general competence. Where  any  of
these things are missing in his character or duty or general conduct,  there
is very likely to be a flaw in the activity he has under his authority.  One
could go over these items one by one, for himself or  for  another,  and  he
would see at once what had to be improved and what was satisfactory  in  his
or others' executive beingness.

In order to competently achieve the beingness of  an  executive,  one  would
have to have the technology of how to organize and would have  to  have,  as
well, a concept of the ideal scene of an organization in  order  to  compare
it to any existing scene and would have to be familiar with  the  technology
required in that specific organization by which  it  produces  the  products
necessary for its survival.

In that every organization has value only to the  degree  it  produces,  one
can see that an executive should be able to achieve production  long  before
his organization is perfected and to be able  to  perfect  the  organization
while producing.  Otherwise  the  organization  would  not  be  sufficiently
viable to survive and his status as an executive would cease.

Good executives are very valuable and the value consists  of  their  ability
to obtain production and form the necessary  and  adequate  organization  in
order to do so. There are no stellar executives who do not meet every  piece
and part of the above definitions.

L. RON HUBBARD

Founder

LRH:Idm.nt.bh.gm

142



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 29 OCTOBER 1971

Remimeo     Issue III

All Executive Hats

Executive Series 2

LEADERSHIP

In order to get his job done, an executive must be someone from whom  others
are willing to take orders.

The first test any follower of a leader  requires  the  leader  to  meet  is
competence. Does the leader know what he is doing9 This is  already  covered
in the definitions  of  an  executive.  For  if  an  executive  meets  these
definitions, those to whom he must give orders are very  likely  to  receive
them in confidence.

There is a great deal of mystique  (qualifications  or  skills  that  set  a
person  or  thing  apart  and  beyond  the  understanding  of  an  outsider)
connected with leadership. Most of this mystique is  nonsense;  however,  it
is necessary that one who leads  can  attract  attention  and  that  he  can
enthuse and interest others. Simply knowing  more  about  the  subject  than
others  or  knowing  more  about  organization  than  others  can  cause  an
executive to be regarded respectfully or even with awe.

A common denominator to all good executives is the ability  to  communicate,
to have affinity for their area and their people, and to be able to  achieve
a reality on existing circumstances. All this adds up to  understanding.  An
executive who lacks these qualities or abilities is not likely  to  be  very
successful.

Understanding, added to competence, is probably the most ideal character  of
an executive.

The  ability  to  lead  can  also  be   compounded   of   forcefulness   and
demandingness, and these two qualities are often  seen  to  stand  alone  in
leadership without regard to competence and, though  acceptable  to  juniors
to the degree that  they  will  obey,  are  no  long-term  guarantee  of  an
executive's  supremacy.  While  they  are  often  part   of   a   successful
executive's personality, they are not a substitute for other  qualities  and
will not see him through. He must truly understand  what  he  is  doing  and
demonstrate competence on a long-term basis in order to achieve  distinction
and respect.

In  all  great  leaders  there  is  a  purpose  and   intensity   which   is
unmistakable. Plus there is a  certain  amount  of  courage  required  in  a
leader.

A man who merely wants to be liked will never be  a  leader.  Others  follow
those who have the courage to get things done  even  though  they  say  they
follow those they like. A broad examination of history  shows  clearly  that
men follow those they respect. Respect  is  a  recognition  of  inspiration,
purpose and competence and personal force or power.

The qualities of leadership are not difficult to attain, providing they  are
understood.

L. RON HUBBARD

LRH:Idm.nt.gm    Founder





143



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 NOVEMBER 1971

Remimeo

Executive Series 3

MONEY

So you think the GI should be higher.

So you wonder why the staff isn't paid better.

In order to successfully  solve  these  riddles  it  is  necessary  to  know
something about MONEY.

Basically money is "an idea backed by confidence."

The idea is that the exchange of goods or services  kind  for  kind  is  too
clumsy. To carry your dozen eggs all over town until you  find  someone  who
has bread he will exchange for your eggs so  you  can  have  bread,  is  too
clumsy. That is called a "barter (trading) system" and is used in  primitive
tribes. To solve this, men get the idea of making metal or  slips  of  paper
represent the eggs and the bread. Thus you  don't  need  to  look  all  over
town. Anyone will buy your eggs that wants  eggs  and  give  you  money  and
anyone who has bread will accept money for it. Like: one money  particle  is
worth five loaves of bread or one dozen eggs or two hours  of  manual  labor
or one booklet or a square inch of land or-or-or.

Confidence comes in that the money particle (piece  of  metal  or  paper  or
some such symbol) WILL be further accepted after you have  accepted  it  for
your eggs. This extends to confidence in the country that  issued  the  coin
or the paper.

As metal has other uses-gold, silver, copper, bronze-it is  more  likely  to
have confidence placed in it as the country could go  broke  and  one  would
still have his metal. With paper one has to  have  more  confidence  in  the
country.

So MONEY is only something that can be exchanged confidently  for  goods  or
services. It is a symbol  which  represents  value  in  terms  of  goods  or
services.

When money is paid out without buying value (as in welfare handouts  or  war
materials or bad stocks or just a promise with no backing)  it  itself  gets
into trouble. It  begins  to  buy  less  because  it  no  longer  represents
production or services or value.

When one begins to receive and spend money he gets into  a  field  known  as
ECONOMICS.

To understand money one must understand economics. Or he'll be made a fool.

ECONOMICS

ECONOMICS in modern language means "the  social  science  that  studies  the
production, distribution and consumption (using) of commodities (things)."

If you like money or want money or use money you cannot remain  ignorant  of
46economics."

The reason Marx and socialists in general can fool everyone  is  that  there
are very few people who  know  economics  and  economics  itself  is  not  a
science but a primitive

144



art. So just as you may  stumble  on  this  word  "economics,"  so  can  the
supertotalitarian socialists make whole  societies  stumble  and  fall  into
their hands.

The word originally meant "the  science  or  art  of  managing  a  house  or
household" and that is still its first meaning. From this grew  up  a  study
of the whole community as a connected activity.

Remember, money represents things. It is a substitute for goods and
services.

What governments, people and even our orgs can't get understood is  that  NO
PRODUCTION = no money,

If one performs a valuable service and exchanges it for goods,  he  does  so
through the item of money.

Production can mean producing a service or an item  that  can  be  exchanged
for goods and services.

If an activity  does  not  produce  and  deliver  and  exchange  with  other
activities, no money is possible.

Example: Lack of good  Division  6s  (Public  Division)  in  orgs  makes  it
impossible to exchange with the community. Equals no money.

This is what is behind low gross income.

The steps to take are get the org so it can produce a  valuable  service  in
some volume and then exchange through Div 6 contacts that service  with  the
community for money. Then increase the volume and  quality  of  the  service
and increase the exchange through more Division 6 contacts. That  builds  up
to a big GI that will continue to be big and not slump.

As soon as one ceases to deliver the service the exchange breaks and the  GI
collapses. No matter how hard you sell, if you don't deliver, you  get  into
trouble.

The staff member, as  part  of  the  org,  may  think  his  pay  comes  from
mysterious places. It does not. It comes from his own personal production.

The combined services of staff members  give  the  org  the  valuable  final
services it can exchange for money. If it does this, then the  staff  member
gets paid and cared for.

It is up to Division 6 to build up a DEMAND for the services  and  a  volume
of people who then demand the service. It does this  with  surveys  of  what
the public will buy that the org can offer. It then makes the  public  aware
of this by ads and contacts. The public comes in and pays. The rest  of  the
org keeps itself functioning and delivers it.

That is really all there is to it.

When you see a staff unpaid or an org not  very  solvent,  it  is  the  data
above that is not grasped.

When you see an org solvent and its  staff  well  paid,  then  the  majority
there have grasped this and are doing it.

When they do it well enough and in enough  volume,  they  control  more  and
more goodwill and expand.

People today are very badly taught on this subject.  All  money  comes  from
daddy. Governments roll it out in endless streams (and the currency  becomes
worthless).

It's no wonder people believe in "luck" as the only thing that makes them
rich and

145



powerful. Or some wild idea that was never tried and would be a flop.

The truths of wealth are

Income of money on sales must be greater than outgo on bills.

Books, auditing and training, tapes and meters, must be sold for more than
they cost the org to produce or buy.

Money is simply that which represents delivered production.

Morale also depends upon accomplished and exchanged production.

Money does not equal morale. The idle rich are a wonderful study in
psychosis.

And welfare money degrades because it is not exchanged for delivered
production.

These are all factors in economics.

The way to good pay is an understanding of the subject as above and the
work necessary to make it so.

L. RON HUBBARD

Founder

LRH:nt.gm

146



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 3 DECEMBER 1971

Remimeo

Executive Series 4

EXCHANGE

So many tricks  have  been  entered  into  economic  systems,  and  so  many
political fixations exist that a manager is often very  hard-pressed  trying
to bring about solvency for his activity.

Money can be manipulated in a thousand different ways.

There are "speculators" who seek to buy something (like  land)  cheaply  and
sell it dear. Or sell it dear, depress the market and buy it  back  cheaply.
In either case they make a profit.

It is less well understood that "speculators" also operate  on  the  subject
of money itself. By manipulating the value of one currency  against  another
they seek to obtain a profit. This is  the  "international  banker"  at  his
daily work. He buys a hundred billion French francs for X dollars.  Then  he
causes a panic about dollars. The franc gets very  valuable.  He  sells  his
hundred billion French francs for 2X  dollars.  Then  he  says  dollars  are
great. He has "made" a huge new lot of dollars for himself.

Or he finds a crummy politician like Hitler, builds him a war machine,  gets
paid back out of the plunder of Europe before Hitler collapses.

The banker loans George Manager  100,000  to  modernize  his  plant.  George
wanted 200,000. But he takes the 100,000. The banker holds the  whole  plant
as security. George doesn't make it as it really took 200,000 to do  it.  He
goes broke. The banker grabs the 5,000,000 plant. This includes the  100,000
now spent on new machines. The banker sells it to a pal  for  2,500,000  and
makes that sum on his "loan."

The shareholders of Bide-a-wee Biscuit are told Bide-a-wee  is  busted.  The
stock falls. A group buys the stock up for peanuts, emerges  as  the  owners
of Bide-a-wee which turns out not to be busted.

All these and a thousand thousand other systems for making  money,  indulged
in too often, spoil CONFIDENCE and destroy money.

Eventually a whole religion like communism will grow up  dedicated  only  to
the destruction of capitalism.

What has been dropped out is the idea of EXCHANGE.

Money has to represent something because it is not anything  in  itself  but
an idea backed by confidence.

It can represent gold or beans or hours of work or most anything as long  as
the thing it represents is real.

Whatever it represents, the item must be exchangeable.

If money represents gold, then gold must be  exchangeable.  To  prove  this,
the moment gold couldn't be individually owned, the  dollar,  based  on  it,
became much less valuable.

147



There has to be enough of the thing that money  represents.  By  making  the
thing scarce, money can be manipulated and prices sent soaring.

Economics by reason of various manipulations  can  be  made  into  the  most
effective trap of the modern slave master.

Periodically through history, not just in current times, monied  classes  or
those believed to control money  have  been  torn  to  bits,  shot,  stoned,
burned and smashed. The ancient pharaohs of Egypt  periodically  lost  their
country through tax abuses.

Money, in short, is a passionate subject.

Modernly, the lid is coming off the economic pot which is at a high boil.

Too many speculators, too many dishonest men generating too much  hate,  too
many tax abuses, too  many  propagandists  shouting  down  money,  too  many
fools, all add up to an explosive economic atmosphere.

A group has to be very clever to  survive  such  a  period.  Their  economic
arrangements and policies must be fantastically wise, well  established  and
followed.

As it exists at this writing, the only real crime  in  the  West  is  for  a
group to be without money. That finishes it. But with enough  money  it  can
defend itself and expand.

Yet if you borrow money you become the property  of  bankers.  If  you  make
money you become the target of tax collectors.

But if you don't have it, the group dies under the hammer of bankruptcy  and
worse.

So we always make it the first condition of a group to make its own way  and
be prosperous on its own efforts.

The key to such prosperity is exchange.

One exchanges something valuable for something valuable.

Processing and training are valuable. Done well, they are priceless.

In many ways an exchange can occur. Currently it is done with money.

In our case processing and training are the substances we exchange  for  the
materials of survival.

To exchange something, one must find or create a demand.

He must then supply the demand in EXCHANGE for the things the group needs.

If that is understood, then at once it is seen that (a) a group  can't  just
process or train its own members; and (b) a group cannot give  its  services
away for nothing; and (c) the services must be valuable to  those  receiving
them; (d) that the demand must be established by surveys and created on  the
basis of what is found; and  (e)  that  continual  public  contact  must  be
maintained.

Thus, by bringing the problems of viability down to the  rock-bottom  basics
of exchange, one can cut through all the fog about economics and  money  and
be practical and effective.

If one is living in a money economy, then bills are  solved  by  having  far
more than "enough money" and not spending it foolishly. One  gets  far  more
than  "enough  money"  by  understanding  the  principles  of  EXCHANGE  and
applying them.

148



In another type of economy such as a socialist state, the principles still
work.

The principles of exchange work  continuously.  It  does  not  go  high  and
collapse as in speculation or demanding money but  failing  to  deliver.  Or
delivering and not demanding money.

We see around us examples that seem to violate these  principles.  But  they
are nervous and temporary.

What people or  governments  regard  as  a  valuable  service  is  sometimes
incredible and what they will overlook as valuable is also incredible.  This
is why one has to use surveys-to find out what  people  want  that  you  can
deliver. Unless this is established, then you find yourself in  an  exchange
blockage. You can guess, but until you actually find out, you  can  do  very
little about it.

Once you discover what people want that you can deliver, you  can  go  about
increasing the demand or widening it  or  making  it  more  valuable,  using
standard public relations, advertising and merchandizing techniques.

The fundamental is to realize that EXCHANGE is the basic problem.

Then and only then can one go about solving it.

L. RON HUBBARD

Founder

LRH:nt.gm

149



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 26 JANUARY 1972

                                   Issue I

Remimeo

All Exec Hats

Admin Know-How Series 29

Executive Series 5

NOT-DONES, HALF-DONES AND BACKLOGS

There is a very definite, often unsuspected effect concealed in  a  backlog.
And it is of  such  violence  that  it  can  crash  an  area's  stats  while
seemingly working frantically.

BACKLOG  (Webster's)  noun:  3.  an   increasing   accumulation   of   tasks
unperformed or materials not processed; verb: to accumulate as a backlog.

NOT-DONES AND HALF-DONES

Backlogs occur for various reasons. But the two main classes  are  (1)  NOT-
DONES and (2) HALF-DONES.

For lack of seeing that a backlog exists, lack of  supervision  of  existing
personnel, other-intentionedness of personnel, lack of personnel  to  handle
the usual or peak volumes, lack of know-how to handle,  lack  of  resources,
and outright sabotage are some of the reasons that account for NOT-DONES.

HALF-DONES are as bad as NOT-DONES as they bit and  piece  an  area  into  a
quagmire. Suppose Detroit began  to  make  half-cars.  All  their  resources
would be devoured, yet nothing would really be produced, yet everyone  would
look  frantically  busy;  the  executive  worries  would  mount  up  to   an
inconceivable fever pitch unless the half-done factor was handled.

But half-dones are not always as visible as  half-cars.  "Have  you  handled
Bets and Company suit?" "Oh yes." But the case is lost  because  the  filing
papers were only half-prepared and half-filed.

The same reasons apply for HALF-DONES as are listed above for NOT-DONES.

The Why of many failures is found in NOT-DONES and HALF-DONES.

The primary effect (there are others) of NOT-DONES  and  HALF-DONES  is  the
building up of backlogs.

Now, no backlog ever quietly lies there. So long as anything  else  depended
upon the actions being done, there will be pressure or threat  of  one  kind
or another on the backlogged area.

Thus, when an  activity  becomes  backlogged,  IT  GENERATES  NEW  WORK  NOT
CONCERNED WITH REDUCING THE BACKLOG AMOUNT.

Example: An insurance company backlogs claims payments. Torrents of  queries
then demand why. The claims section spends its time answering  the  queries,
not reducing the number of claims. The volume of work doubles, trebles,  but
no claims get paid.

BACKLOGGING AT ONCE DOUBLES THE WORK BY THE ADDITION OF DEMAND HANDLING.

150



Example: A Central Files fails to  stay  filed  into  up  to  present  time.
Demands for items in it cause others to consume all the  file  clerk's  time
tearing CF apart to find particles.

A BACKLOG CAN INCREASE ITSELF BY ADDING DISORDER THAT UNDOES THINGS  ALREADY
DONE.

Thus a backlog tears up the past work while building up future work.

Example: Personnel backlogs its files, causing it to  backlog  appointments.
This overloads areas. These areas start crashing down on Personnel  in  mobs
demanding it provide people. Personnel is then so busy fending  off  people,
it can't appoint. Yet is in frantic action.

A BACKLOG PREVENTS ITSELF FROM BEING HANDLED.

An org that has several backlogs in it becomes frantic and then goes into
apathy.

The cure is to:

1.    Get people and do ALL HANDS actions to get the most important
backlogs done.

2.    To find the real WHY of the backlog and handle it so a present time
state is then maintained. (Requires a program, followed and done.)

3.    Check out staff on the book Problems of Work.

4.    Get staff to do Training Drill Zero on their work areas.

5.    Get staff to reach and withdraw from their materials of operation or
areas.

6.    Do a survey of attitudes which reveals complaints and reasons for not-
dones, half-dones, backlogs.

7.    Based on the survey, campaign hard to remedy NOT-DONES and HALFDONES.

8.    Be very severe with any beginnings of any future backlogs.

When you see an area or org in apathy, know it has gone the  route  of  not-
dones, half-dones and backlogs and handle.

When you see an area going frantic, know you are looking at not-dones, half-
dones and backlogs and handle fast  before  it  goes  into  the  much  worse
condition of apathy.

Production is the basis of morale.

Not-dones, half-dones result in backlogs.

Backlogs destroy the possibility of future production.

Thus you know the situation of not-dones and half-dones will result in
backlogs.

The backlogs will prevent further handling.

This subject is the subject which makes executives harassed.



Behind every upset there will be NOT-DONES, HALF-DONES and BACKLOGS.

So be very alert.

Dynamite is stick candy alongside of this very explosive subject.

Don't say I didn't tell you.

L. RON HUBBARD

Founder

LRH:mes.rd.gm

152



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 6 FEBRUARY 1982

Remimeo

Staff Hats

                (CANCELS and REPLACES BPL 6 Feb. 72R 1, Exec

                Series 6R, EXECUTIVE INTENTION. Parts of this

                BPL were originally taken from FO 2947, KNOW

            BEST, written 15 Sept. 71. Exec Series 6RA now gives

           the full text of this FO, as written by the Founder, in

                                HCO PL form.)

Executive Series 6RA

KNOW BEST

Recent breakdowns in US command channels and org decline  was  traced  to  a
group on a relay point who were intensely critical of management  and  "knew
best."

They did not "know best" since their actions were followed by decline.

The undermining of authority made it very difficult for  command  to  handle
the resulting situation.

It is a betrayal of juniors for a person on a point of  command  channel  to
undermine authority. For it sets the junior up for a rough time.

"Flag doesn't really know . . . " "They are not actually informed . . ."  is
usually followed by "so we will . . ." and when the crash comes  the  junior
catches it. either by being the effect of a messed-up area or the  resulting
discipline.

If Flag or management doesn't know, it's because  the  person  saying  "Flag
doesn't know . . ." is not informing his seniors and is not reporting.

In the final analysis, it is top management that has to pick up the pieces.

In the final analysis, a person is comm-eved, not  on  some  person's  "know
best" ideas, but on F0s and policy letters. just  what  they  say,  line  by
line.

In  an  area  in  which  someone's  withholds  have  caused   natter   about
management, there is a decay of confidence in the management. This  makes  a
decline in itself. Uniforms, living conditions, food,  all  can  decline  in
the area.

Then when top management tries to repair the situation, it is  doing  so  in
an area that doesn't comply. So the situation is extended  in  time  and  is
much harder to remedy.

The usual cycle is

"We know best. 'They' don't know."

"So we will (goofball orders) .... 11

"It's going crazy so we won't tell 'them.'

"Now you see what 'they've' done."

"I can't for the life of me understand why all you fellows are now  catching
it from 'them."'

153



You'll find all this on the Chart of Human Evaluation in Science of
Survival.

Someone who perverts comm lines causes trouble.

So a POLICY is laid down:

A JUNIOR WHO IS GIVEN ILLEGAL OR CONTRARY ORDERS AND WHO

FOLLOWS THEM INSTEAD OF FOs AND POLICY LETTERS AND  EDs  AND  WHO  DOES  NOT
REFUSE THE ILLEGAL ORDERS AND WHO DOES NOT REPORT THE MATTER IS  SUBJECT  TO
COMM EV FOR ACCE1,117ING ILLEGAL ORDERS.

LEGAL ORDERS ARE DEFINED AS ORDERS KNOWN TO AND AUTHOR-

IZED BY FLAG IN WRITING OR AS FOUND IN POLICY, FOs, BASE  ORDERS,  EXECUTIVE
DIRECTIVES AND FLAG DIVISIONAL DIRECTIVES.

IF IT IS NOT WRITTEN AND SEEN IN WRITING, IT IS NOT TRUE.

VERBAL RELAYS OF FLAG COMMANDS ARE NOT ACCEPTABLE.

RELAYING OR CARRYING OUT A LEGAL ORDER IN SUCH A WAY AS

TO MAKE IT UNWORKABLE IS A COMM-EV OFFENSE.

ANYONE BREAKING DO" CONFIDENCE OR TRUST IN TOP MAN-

AGEMENT MUST BE REPORTED  TO  TOP  MANAGEMENT  WITH  ALL  FACTS  BEFORE  THE
SITUATION DECAYS BEYOND CONTROL.

If you want to know the plain truth of it, top management usually works
harder

and tries harder than anyone else to make things go right.

L. RON HUBBARD Founder

Issued by Mission Issues

Revision Project

Adopted as official Church policy by the CHURCH OF SCIENTOLOGY
INTERNATIONAL

CSI:LRH:MIR:bk.gm , 1982

154



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 8 FEBRUARY 1972R

Remimeo     REVISED 21 OCTOBER 1980

All Execs

All Staff   (Cancels and replaces BPL 8 Feb. 72, Issue 11,

      same title)

Executive Series 7R

TARGETING OF DIVISIONAL STATISTICS

AND QUOTAS

(BPL 8 Feb. 72 Issue 11, Exec Series 7,  TARGETINGOF  DIVISIONAL  STATISTICS
AND QUOTAS, written by the Controller, contained correct and vital data  for
all executives and staff members, so I have issued it here as an HCO  Policy
Letter at the request of the Board of Directors. It now has the  full  force
of policy.)

According to HCO Policy Letter of Dec.  16,  1965,  STATISTICS  OF  THE  INT
EXECUTIVE DIV, a statistic is a number or  amount  compared  to  an  earlier
number or amount of the same thing and refers to the quantity of  work  done
or the value of it in money.

In a Scientology organization every division,  every  department  and  every
post has an assigned statistic which  represents  its  work  or  production.
Also in a Scientology organization there is always some individual  assigned
as  responsible  for  the  work  or  production  of  every  division,  every
department and every post.

A staff member is required to report weekly the statistic of every post  for
which he or she is responsible. To do this the staff member has  to  keep  a
daily running record of  such  statistics;  therefore,  it  is  possible  to
compare the statistic of one day to the statistic  of  the  day  before;  to
predict by computation the projected statistic for the week as  compared  to
the already reported statistic of the past week  and  to  cause  actions  to
occur which lead to the increase of the daily statistic and to the  ultimate
increase of the weekly statistic.

That the individual is directly responsible for being  able  to  affect  and
increase such  statistics  is  easily  demonstrable-if  a  Letter  Registrar
spends most of her time wiping spilled  coffee  off  Central  Files  folders
rather than writing real letters which communicate and elicit responses  for
service, then her statistic will certainly drop.

With the advent of HCO PL of Jan. 31, 1972, THE WHY  IS  GOD,  there  is  no
justifiable reason left for anyone as to why statistics  cannot  be  raised.
Therefore the reason for so few people directed into  the  organization  for
Registrar interview will mean exactly and only that the Letter Registrar  is
not producing.

Having,  therefore,  defined  what  a  statistic  is   and   having   firmly
established that the individual is directly responsible for a statistic  and
so can increase it, the subject  of  how  targeting  and  quotas  relate  to
statistics can now be covered.

Quota is defined  as  a  production  assignment.  It  would  be  the  number
assigned to whatever is produced. As an example, the  Director  of  Training
is given the quota of 45 letters to produce per day or 225 letters per  week
as part of his standard promotional actions.

Targeting is defined as  establishing  what  action  or  actions  should  be
undertaken in order to achieve a desired  objective.  In  the  case  of  the
Director of Training it would be as simple as obtaining from  Central  Files
the necessary 45 folders, writing the

155



required number of letters, returning  the  folders  to  Central  Files  and
determining to remain on post daily until this was  accomplished  no  matter
what (known as keeping his own ethics IN).

Any quota, can be targeted for increase daily and weekly. For instance,  the
Director of Training can establish a quota of 5 extra letters per  day  over
that of the day before. This would mean he would write 45 letters  one  day,
50 letters the next day, 55 letters the day after that, and so on.

In highly successful  organizations  the  practice  of  setting  quotas  and
targeting has been in use for some time.

The Product  Officer  (or  in  the  absence  of  the  Product  Officer,  the
Executive Director) establishes  with  the  divisional  secretaries  exactly
what quotas will be  for  the  weekly  divisional  statistics  in  order  to
increase them over those of the previous week and HOW  this  will  be  done.
The divisional secretaries do the same with their department directors,  the
directors with their section in-charges, and  the  section  in-charges  with
the personnel under them.

The quotas established are real and are always  higher  than  those  of  the
week before, with  the  idea  in  mind  of  creating  a  continually  rising
statistical graph. If this is done, the statistics  rise,  the  organization
expands, and more personnel are recruited, apprenticed and trained on  posts
so that more production can occur to keep the statistics rising.

The targeting of actions necessary to accomplish the  quotas  are  definite,
conform to policy and can be done. Do not permit  nebulous  generalities  to
occur on the targeting cycle as nothing will be accomplished and  no  quotas
achieved.

All staff must keep a daily graph of their  statistic  and  an  accumulating
graph for the week, both on the same  graph  sheet.  An  accumulating  graph
merely means you keep adding  one  day's  statistic  to  those  of  the  day
before. In the example of the Director of Training it would  be  45  letters
Monday, 95 letters Tuesday (the  45  letters  of  Monday  added  to  the  50
letters of Tuesday and so on). Daily the  persons  responsible  check  these
graphs with their juniors. From these graphs it is easy to see  whether  the
statistics are  rising,  whether  quotas  are  being  met  and  whether  the
statistic will be higher than that of the prior week.

By such means targets can be  unbugged,  new  targets  established  and  new
quotas projected; or hatting and more establishing can occur, or ethics  can
be put in where the individual appears incapable of keeping his own  in  (as
in the example of the Letter Registrar who spends more  time  going  to  the
canteen for coffee than on post).

A set time can be determined daily as to when each staff member should  have
his graph posted for inspection-probably 2:00 P.m. would be best as this  is
the time established as when the week starts and ends, from the Thursday  of
one week to the Thursday of the following  week.  Seniors  can  then  easily
make  their  inspection  without  being  delayed  while  some  staff  member
computes and posts his graph.

By setting quotas and targeting towards their production, get your
statistics rising.

L. RON HUBBARD

Founder

Assisted by

The Controller

Approved and accepted by the

BDCSC: LRH: MSH:mes.rd.bk.gm      BOARD OF DIRECTORS

, 1980      of the

      CHURCH OF SCIENTOLOGY

      OF CALIFORNIA

156



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 FEBRUARY 1972

Remimeo

Executive Series 8

THE TOP TRIANGLE

The explanation of the  Scientology  symbol,  the  S  and  double  triangle,
should be more generally known.

And it should be very well known to executives.

There are two triangles, over which the S is imposed.

The S simply stands for Scientology which is derived  from  "SCIO"  (knowing
in the fullest sense).

The lower triangle is the A-R-C triangle-its points being AFFINITY,  REALITY
and  COMMUNICATION.  These  are  the  three  elements  which  combined  give
UNDERSTANDING.

The upper triangle is particularly applicative to an executive  but  applies
to all Scientologists. It has not been widely known.

It  is  the  K-R-C  triangle.  The  points  are  K  for  KNOWLEDGE,  R   for
RESPONSIBILITY and C for CONTROL.

It is difficult to be responsible for something or control something  unless
you have KNOWLEDGE of it.

It is folly to try to control  something  or  even  know  something  without
RESPONSIBILITY.

It is hard to fully know something or  be  responsible  for  something  over
which you have no CONTROL, otherwise the result can be an overwhelm.

A being can of course run away from life (blow) and go sit on  the  backside
of the moon and do nothing and think nothing. In which case  he  would  need
to know nothing, be responsible for nothing and control  nothing.  He  would
also be unhappy and he definitely would be dead so far as  himself  and  all
else was  concerned.  But,  as  you  can't  kill  a  thetan,  the  state  is
impossible to maintain and the road back can be gruesome.

The route up from death or apathy or inaction is  to  KNOW  something  about
it, take some RESPONSIBILITY for the state one is  in  and  the  scene,  and
CONTROL oneself to a point where some control is put into the scene to  make
it go right. Then KNOW why it went wrong, take RESPONSIBILITY  for  it,  and
CONTROL it enough to make it go more toward an ideal scene.

Little by little one can make anything go right by

INCREASING KNOWLEDGE on all dynamics

INCREASING RESPONSIBILITY on all dynamics

157



INCREASING CONTROL on all dynamics.

If one sorts out any situation one finds oneself in on this basis,  he  will
generally succeed.

Field Marshal Montgomery was supposed  to  have  said  that  leadership  was
composed of "knowledge, will  power,  initiative  and  courage."  These  are
assumed qualities in a man. This was good advice but offered no road out  or
no avenue of INCREASE in capability.

The KRC triangle acts like the ARC triangle. When one  corner  is  increased
the other two also rise.

Most thetans have a dreadfully bad opinion of  their  capabilities  compared
to what they actually are. Hardly any thetan  believes  himself  capable  of
what he is really capable of accomplishing.

By inching up each corner of the KRC  triangle  bit  by  bit,  ignoring  the
losses and making the wins firm, a being at length discovers his  power  and
command of life.

The second triangle of the symbol of Scientology is well worth knowing.

It interacts best when used with high ARC. Thus the triangles interlock.

It is for use as well as all of Scientology.

L. RON HUBBARD

Founder

(Note: For much more information on this subject, obtain and listen  to  the
LRH tape "ZONES OF CONTROL AND RESPONSIBILITY OF  GOVERNMENTS"  No.  600IC03
SMC No. 7, State of Man Congress 1960. This tape is  also  on  the  Class  X
checksheet.)

LRH:ne.rd.gm

1~

158



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 FEBRUARY 1972

Remimeo

Executive Series 9

ROUTING

Strangely enough, a major duty  of  an  executive  is  ROUTING.  This  means
pointing  out  the  channels  on  which  bodies,  materials,   products   or
despatches and letters flow. Or making channels on  which  such  things  can
flow and putting terminals there to handle or change them.

An executive who  does  NOT  route  and  who  does  not  himself  conduct  a
continual line police action is soon drowned. He will lose his grip  on  his
post and his activity and "feel overwhelmed" and worked to  death.  Further,
the whole unit under him and units around him will go to pieces.

The difference between order and chaos  is  simply  straightforward  planned
flows and correct particles. It is the executive who controls  this.  So  it
is in his hands whether he or she has chaos (no line  or  particle  control)
or order (good line and particle control).

It is SO much simpler than it looks, and SO  easy  to  overlook,  that  many
persons on executive  posts  look  everywhere  for  "the  answer"  to  their
troubles when it lies right under their nose-actually.

It begins with one's own desk and office. It is simple. Does one have an in-
basket? Does one have an out-basket? Does one use them?  Is  there  any  way
for things to get into the In and out of the Out?

Does one spend a part of each day clearing ALL traffic at once?

Is the traffic divided up into areas and types?

You say, "That's too simple. It's even silly. Here I am a Big Executive  and
you're asking about these little pieces of paper. . . ."

Those little pieces of paper are what keep one  informed  and  extend  one's
reach! And they can turn into a blizzard and blow one right off post!

There is power in those lines.

So they must be in a neat pattern or the power recoils.

What drives one (and one's organization) off post is mishandled  items.  The
volume is not at fault. One can  handle  TONS  of  this  stuff.  It  is  the
mishandled bits that make the TONS look hopeless.

One often unwittingly generates mishandlings. And if he does NOT police  his
lines, he can snow the whole org under.

A sharp executive can spot "developed traffic" (needless)  miles  away.  The
slang term "dev-t" has been of vast use.

Pieces of paper that don't belong to one are sent back to originator.

159



Things originated by a post that aren't the business of that post.

These are the two basics of dev-t-"off-line" and "off-origin."

Juniors that don't do Completed Staff Work but load  you  up  with  problems
they should have solved are responsible for the worst of one's traffic.

So if all you knew was the above-baskets in and out and ways for traffic  to
get in and out, what should come to you and what  certain  posts  should  be
sending-AND POLICED IT, you could  reduce  your  traffic  worries  by  three
quarters.

AN UNHATTED ORG is a madhouse to work in as no one knows what he's  supposed
to handle or what others should do.  They  don't  go  idle.  They  introduce
Sahara sandstorms of dev-t.

An unhatted org is also a lazy org and refers everything to someone else.

Bodies won't channel, correct materials won't arrive, money can't get in  or
out, production is destructive and the place unpleasantly goes insolvent.

To move such a scene up toward the ideal, one can at least begin  to  police
his own immediate desk and lines. Then one  can  police  his  own  immediate
staff's lines and clean that up.

He can HAT those around him. "This is what you're supposed to  handle.  This
is what you DO."

He can even hat at a distance on his comm lines, "This despatch  belongs  to
supply. Send it to supply, not to me."

"CSW please" = "Work out how this problem should be handled  and  recommend.
Don't be dumping problems of your post on my plate" is the real  meaning  of
"CSWP."

Get an Admin Cramming in and send anyone  who  is  dev-ting  to  it  to  get
checked out.

But mainly and foremost, get the place HATTED so it  knows  what  it  should
handle.

And first, last, and always conduct a line police action.

One of the first duties of an executive is ROUTING.

Now do you see where the "overload" is coming from?

Note: See dev-t policies, Problems of Work and the Org  Series  to  get  the
full scope and know-how of ROUTING. But the main  thing  is  DO  it.  Do  it
before you drown.

L. RON HUBBARD

Founder

LRH:ne.rd.gm

160



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 29 FEBRUARY 1972

Remimeo

Executive Series 10

CORRECT COMM

Dev-t (developed or wrong traffic) destroys any real production  in  an  org
while making the org seem frantically busy.

The downfall of HCO was THE FAILURE TO POLICE DEV-T.

The CAUSE of DEV-T is UNHATTEDNESS.

People who do not know what they are supposed  to  do  or  produce  take  on
traffic that does not  belong  to  them,  originate  traffic  they  have  no
business with and send it to wrong terminals who don't handle.

Not knowing their hats or posts, they refer things  they  should  handle  to
others who don't handle them either. The org loads  up  with  not-dones  and
half-dones and backlogs.

People who should refer what they know don't originate at  all  and  sit  on
hot emergencies and leave them unhandled. And if they do send them  on,  not
knowing the org board, they send them to the wrong terminals.  And  if  they
send it to the right terminal, it goes in a way  it  can't  be  handled  for
lack of comm expertise.

This goes for any  type  of  particle-despatches,  letters,  bodies,  money,
customers, materials, supplies, any particle.

Problems are brought to seniors instead of Completed Staff  Work  (requiring
a recommendation).

DEV-T means an UNHATTED, UNTRAINED, OFF-POLICY STAFF.

It means loads of overwork and little production or income.

AND DEV-T AND UNHATTEDNESS MEAN THAT THE PERSON AT THE TOP OF A  DEPARTMENT,
DIVISION OR THE ORG HAS TO SINGLE-HAND.

It isn't an org, it's a mob.

Unhatted staff "go criminal," so ethics will be very heavy.

DISCIPLINE

A first action for an executive or any terminal is to demand CORRECT COMM.

In its basic elements this means

1. The staff member originates things that apply or are the business of HIS
OWN

POST. (On-origin.)

2. The origin is sent to the right terminal that handles that. (On-line.)

3. If a post is supposed to originate, it does so. (Communicates.)

161



4.    If a problem is encountered, it is forwarded ONLY with a full
recommendation for handling. (Completed Staff Work or CSW.)

5.    One does NOT' accept a comm that is not the post business of the
originator. (Enforces on-origin.)

6.    One does NOT accept a comm that does not belong to him. (Enforces on-
line.)

7.    One insists that a post should originate, or do the duties, or
furnish the product or service of that post. (Enforces correct action.)

8.    One never accepts a problem unless it has with it a sound
recommendation by the originator accompanying it. (Enforced CSW.)

9.    One demands specific names and instances, not generalities.
(Nonsuppressive comm.)

10.   One demands full particulars, not half-reports or vague generalities.
(Nonsuppressive comm.)

11.   One demands comm be in proper form. (Correct despatch or completed.)

12.   One has a place to receive the comm. (In-basket or place in org.)

13.   One has to have a place to put the comm for delivery. (Out-basket or
comm center.)

14.   One has to have standard lines and routes for particles to follow.
(Comm system or lines.)

15.   One demands use of the system-1 warning, I admin cramming, I retread
as an expeditor or in Estates to redo basics-for frequent offenders.

16.   One demands HATTEDNESS and people performing the duties of their
posts!

17.   One demands an up-to-date org board and staff drilled on it.

18.   One NEVER STALEDATES. He handles when he is expected to.

19.   One does NOT go soft in the head or get reasonable or find
exceptions. THERE

      IS NO SUBSTITUTE FOR CORRECT COMM AND CORRECT LINES.

MADHOUSE

An org that has no comm discipline is a madhouse. It will be expensive. It
will produce very little. It will try to deliver overt products.

And it will drive its execs up the chimney.

The immediate result will be a conclusion on the part of the execs, "These
blankety-blank-blanks are doing us in!" "The place is full of suppressive
people." "These guys are no-good bums!" And, "Start shooting."

Heavy ethics and offloads occur. These are almost always the result of a
whole org gone around the bend from dev-t.

Accidents happen. People get ill.

And the place falls apart.

162



CURE

The only known cure is TRAINING and HATTING.

For years we underestimated the number of persons needed to train and hat  a
staff. The whole civilization has troubles  because  it  hasn't  even  known
about hatting, much less that it took someone to do it.

Any failure of HCO was caused  by  its  drowning  in  dev-t,  even  at  last
generating it because it never had enough people  devoted  to  training  and
hatting, getting in org lines and comm lines.

HCO can do its job relieved of the whole burden of hatting.

The solution is THE ESTABLISHMENT OFFICER.

This person operates in a division, not under  its  secretary  but  under  a
senior Establishment Officer.

He performs the duties of the departments of HCO for that division.

In a small org it requires a trained Establishment Officer for Divisions  7,
1 and 2 and another for Divisions 3, 4, 5 and 6.

In a larger org there is one in charge of all Establishment Officers and  an
Establishment Officer in each division.

As the org grows, the larger divisions get assistant Establishment  Officers
to the divisional one.

They do not  establish  and  run  away.  They  establish  and  maintain  the
division staff, personnel hats, posts, lines, materiel and supplies.

Their first job is to get staff working at their posts  producing  something
and their next task is TO DRIVE DEV-T OUT OF EXISTENCE IN THAT ORG.

SUMMARY

The booms and depressions of orgs, their successes and fall-aparts are
signaled by

                           CORRECT COMM - SUCCESS

                              DEV-T - FAILING.

The underlying cause is unhattedness.

So we are dealing in dev-t with a symptom. Like any disease, it soon
catches up with the body of the org and its health.

Dev-t is an expression of untrained, unhatted staff. It shows they do not
do the functions of their posts regardless of how busy or exhausted they
are.

And most important for an executive to know: There is seldom any malice in
it. It is just confusion. Even new people or new execs coming in to such an
area all full of enthusiasm and bushy-tailed will cave in from the
fantastic do-less motions of such an org.

Morale will be bad because PRODUCTION IS THE BASIS OF MORALE and who can
produce in the midst of all that noise????

The place will go into apathy and tiredness as one is hit all day with OFF-
LINE, OFF-ORIGIN COMM.

163



The executive's solution  is  to  HAT,  HAT,  HAT,  and  get  help  hatting,
hatting, hatting; get the org board up,and DRILL,  DRILL,  DRILLED.  Demand,
demand, demand the products of the post the  person  holds  and  only  those
products. And police his lines and get the dev-t in his  own  area  handled,
handled, handled; and never, never, never pull dev-t blunders  himself;  and
ALWAYS, ALWAYS, ALWAYS DO AND INSIST UPON CORRECT COMM.

The solution is do what you can and all you can to hat and reduce dev-t  and
scream for an Establishment Officer to save the org.

CORRECT COMM IS THE SYMPTOM OF A  HEALTHY,  PRODUCING  ORG  AND  A  VALUABLE
EXECUTIVE AND STAFF MEMBER.

L. RON HUBBARD

Founder

LRH:mes.rd.gm





164



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I APRIL 1972

Remimeo

Establishment Officer Series 12

Executive Series 11

MAKING AN EXECUTIVE

FLOW LINES

If an executive has his flow lines wrong he will NEVER be a Product  Officer
but only a comm clerk.

For some poor reason executives get themselves onto all comm lines in  their
area. Probably it is an individual Why for each one. But  the  fact  remains
that they do do it!

And they promptly cease to be useful to anyone. While they "work" like mad!

Basically they have confused a comm line with a command line. These are  two
different things. A comm line is the line on which  particles  flow,  it  is
horizontal. A command line is  a  line  on  which  authority  flows.  It  is
vertical.

Here  is  an  example  of  a  divisional  secretary  who  can  get   nothing
accomplished while sweating blood over her "work."

Secretary being a relay messenger clerk

- - - - - - - - - - - -- lip.

- - - - - - - - - - --

ALL org traffic to Div In and Out

Dept  Dept  Depl t

Wrong

Now quite obviously this secretary is suffering from "fear of juniors'
actions" or "having to know all." Exactly nothing will happen because the
person is plowed under with paper. No real actions are taken. Just relays.

One such secretary of a division even acted as the relay point on all out
and in BODY traffic. In short, just a divisional receptionist.

No product. Nothing happening at vast expense.

165



Here is another example. The correct one.

Div Secretary as Product Officer

Right

_4d&__ -

.414

This is known as horizontal flow.

It is a fast flow system.

The correct terminals in each department are addressed by terminals outside
the dept, directly. And are so answered.

Now we have a divisional secretary who is a PRODUCT OFFICER and whose duty
is to get each department and section and unit producing what it is
supposed to produce.

MISROUTE

So long as a command line is confused with the comm line an org will not
produce much of anything but paper.

INFORMATION

It is vital that an executive keep himself informed.

The joker is, the despatch line does NOT keep him informed. It only absorbs
his time and energy.

The data is not in those despatches.

The data an executive wants is in STATISTICS and REPORTS and briefings.

Statistics get posted and are kept up-to-date for anyone to look at,
especially but not only the executive. They must ACCURATELY reflect
production, volume, quality and viability.

Reports are summaries of areas or people or situations or conditions.

The sequence is (a) statistic goes unusually high, (b) an inspection or
reports are required in order to evaluate it and reinforce it.

166



Or (a) the statistic dives a bit  and  (b)  an  inspection  or  reports  are
needed to evaluate and correct it.

Thus an executive is NOT dealing  with  the  despatches  or  bodies  of  the
division's inflow  and  outflow  lines  but  the  facts  of  the  division's
production in each section.

An executive makes sure he has comm lines, yes. But  these  are  so  he  can
make sure stats get collected and posted,  so  reports  can  be  ordered  or
received and so he can receive or issue orders about these situations.

Despatch-wise that is all an executive handles.

INSPECTIONS

Personally or by representative, an executive INSPECTS continually.

His main duties are

OBSERVATION

      EVALUATIONS      (which includes

            handling orders)

and SUPERVISION.

All this adds up to the production of  what  the  division  is  supposed  to
produce. Not an editing of its despatches.

A good executive is all over the place getting production done.

On a product he names it, wants it, gets it, gets it  wanted,  gets  in  the
exchange for it.

He cannot do this without doing OBSERVATION by (1) stats, (2)  reports,  (3)
inspections.

And he can't get at what's got it bugged without evaluation.  And  he  can't
evaluate without an idea of stats and reports and inspections.

Otherwise he won't know what to order in order to SUPERVISE. And once  again
he supervises on the basis of what he names, wants, gets,  gets  wanted  and
gets the exchange for.

THESCENE

This is the scene of an executive.

If he is doing something else he will be a failure.

The scene is an active PRODUCTION  SCENE  where  the  executive  is  getting
what's wanted and working out what will next be wanted.

ABILITY

An actual executive can work.

A real fireball can do any job he has getting done  under  him  better  than
anyone he has working for him or under him.

He can't be kidded or lied to.

He knows.

167



Thus a wobble of a stat has him actively looking in the exact  right  place.
And evaluating knowingly on reports. And getting the exact  right  WHY.  And
issuing the exact right orders. And seeing them get done. And  knowing  it's
done right because he knows it can be done and how to do it.

Now that's an ideal scene for an exec.

But any exec can work up to it.

If he does a little bit on a lower job each day, "gets his hands  dirty"  as
the saying goes, and masters the skill, he soon will know  the  whole  area.
If he schedules this as his 1400 to 1500 stint  or  some  such  time  daily,
he'll know them all soon. And if he burns the midnight oil  catching  up  on
his study.

And he knows he must watch stats and then rapidly get  or  do  observations,
so he can evaluate and find real WHYs quickly and get the correction in  and
by supervision get the job done.

That's the ideal scene for the exec himself where he's  head  of  the  whole
firm or a small part of it.

If he can't do it he will very likely hide himself on a relay despatch  line
and appear busy while it all crashes unattended.

An exec of course has his own admin to do but they don't spend hours  at  it
or consider it their job for it surely isn't. Possibly an hour a day at  the
most handles despatches unless of course one doesn't  police  the  dev-t  in
them.

Most of their evaluations are not written.  They  don't  "go  for  approval"
when they concern somebody's post jam. They are  done  by  investigation  on
the spot and the handling is actual, not verbal.

A desk is used (a) to work out  plans,  (b)  catch  up  the  in-basket,  (c)
interview someone, (d) write up orders. Two-thirds of their time is  devoted
to production. Even if a thousand miles away they still only spend 1/3rd  of
their time on despatches.

An executive has to be  able  to  produce  the  real  products  and  to  get
production. That defines even an Esto  whose  product  has  to  do  with  an
established person or thing.

Any  department,  any  division,  any  org,  any  area  responds  the   same
wayfavorably-to such competence.

ANALYSIS

To attain this ideal scene with an  executive,  one  can  find  out  WHY  he
isn't, by getting him to study this P/L and then find WHY  he  can't  really
do it and then by programing him  to  remedy  lack  of  know-how  and  other
actions increase his ability until he is a fireball.

If you are lucky you will have a fireball to begin with. But only the  stats
and the truth of them tell that!

Esto action: Can you do all this and these things? If the answer  is  no  or
doubtful or if the executive isn't doing them, find the Why and remedy.

L. RON HUBBARD

Founder

LRH:nt.mes.bh.ts.gm

168



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 3 MAY 1972R

Remimeo     REVISED 18 DECEMBER 1977

Executive Hats   (Revision in this type style)

IMPORTANT

Executive Series 12

ETHICS AND EXECUTIVES

Any person holding an executive  post  (head  of  department  or  above)  is
deemed an EXECUTIVE.

Evaluation has revealed that the breakdown in many orgs is a failure on  the
part of executives to wear their ethics and justice hats.

It has been found that below administrative Whys there is usually an  ethics
situation as well, which, unhandled, causes the administrative  Why  not  to
function or raise stats,

In an area which is downstat, it is the duty of an executive to  investigate
and find any out-ethics situation and get it corrected.

Ethics is a personal thing in relation to  a  group.  Unethical  people  are
those who do not have ethics in on themselves personally.

It is the responsibility of the executive to see to it  that  persons  under
his control and in his area get their personal ethics in and keep them in.

Dishonesty, false reports, an out-ethics personal  life,  should  be  looked
for and, by persuasion, should be corrected.

When an executive sees such things, he or she must do all he can to get  the
person to get his own ethics in.

When an area is downstat, the executive must at once suspect  an  out-ethics
scene with one or more of the personnel, and must investigate  and  persuade
the person to  be  more  honest  and  ethical  and  correct  the  out-ethics
condition found.

If this does not correct, and if the person or area  remains  downstat,  the
executive must declare the person or area in Danger and apply HCO PL 9  Apr.
72, "CORRECT DANGER CONDITION HANDLING."

The situation, if it does not correct, thereafter becomes a matter  of  full
group justice with Courts and Comm Evs. Persons whose ethics  have  remained
out must be replaced.

The seniors of an executive are bound to enforce this policy and to  use  it
on any executives whose personal ethics are out and who fail  to  apply  it.
It will be found that those  who  do  not  apply  this  policy  letter  have
themselves certain dishonesties or out-ethics situations.

IT IS VITAL TO ANY ORGANIZATION, TO BE STRONG AND EFFECTIVE, TO BE ETHICAL.

THE MOST IMPORTANT ZONE OF ETHICAL CONDUCT IN AN ORGANIZATION IS AT OR  NEAR
THE TOP.

169



.1

Ethical failure, at the top or just below it, can  destroy  an  organization
and make it downstat.

Historical examples are many.

THEREFORE, IT IS POLICY THAT AN EXECUTIVE MUST KEEP  ETHICS  IN  ON  HIMSELF
AND THOSE BELOW HIM, OR BE DISCIPLINED OR  COMMEVED  AND  REMOVED  FROM  ANY
POST OF AUTHORITY, AND SOMEONE FOUND WHO IS HIMSELF  ETHICAL  AND  CAN  KEEP
ETHICS IN ON THOSE UNDER HIS AUTHORITY.

The charge in any such case for a staff member or executive  is  FAILURE  TO
UPHOLD OR SET AN EXAMPLE OF HIGH ETHICAL STANDARDS.

Such offenses are composed of

1.    DISHONESTY.

2.    Use of false statements to cover up a situation.

3.    Representing a scene to be different than it actually is to cover up
crimes and escape discipline.

4~    Irregular 2D connections and practices.

5.    Drug or alcoholic addiction.

6.    Encouraging out-ethics.

7.    Condoning or failing to effectively handle an out-ethics situation in
self or others as an in-charge, officer or executive.

TECHNICAL

People  with  out-ethics  withholds  cannot  see.  This  is  proven  by  the
brilliant  return  of  perception  of  the  environment  in  people  audited
effectively and at length on such processes.

Such people also seek to place a false environment there and actually see  a
false environment.

People whose ethics are low will enturbulate and upset a group as  they  are
seeking to justify their harmful acts against the group. And this  leads  to
more harmful acts.

Out-ethics people go rapidly into Treason against the group.

A person whose ethics have  been  out  over  a  long  period  goes  "out  of
valence." They are "not themselves."

Happiness is only attained by those  who  are  HONEST  with  themselves  and
others.

A group prospers only when each member in it has his own personal ethics
in.

Even in a PTS (potential trouble source) person, there must have  been  out-
ethics conduct toward the suppressive personality he  or  she  is  connected
with for the person to have become PTS in the first place.

People who are physically ill are PTS and are out-ethics toward  the  person
or thing they are PTS to!

170



Thus a group to be happy and well, and for the group to prosper and  endure,
its individual members must have their own ethics in.

It is up to the executive or officer to see that this is the case and to  DO
the actions necessary to make it  come  about,  and  the  group  an  ethical
group.

EXEC OR OFFICER'S STEPS

FOR GETTING IN ETHICS

ON A STAFF MEMBER

STEP I

Inform the person personally he is in Danger condition by reason of acts  or
omissions, down stats, false reports  or  absence  or  2D  or  whatever  the
circumstances are.

He is in fact IN Danger because somebody is going to act sooner or later  to
hit him.

He may be involved already in some other assignment of condition.

But this is between you and him.

HE IS IN DANGER BECAUSE YOU ARE HAVING TO BYPASS HIM TO GET HIS  ETHICS  IN,
A THING HE SHOULD DO HIMSELF.

If he cooperates and completes this rundown and it comes out all right,  you
will help him.

If he doesn't cooperate, you will have to use group justice procedures.

This is his chance to get ethics in on himself  with  your  help  before  he
really crashes.

When he accepts this fact, Step I is done. Go to Step 2.

STEP 2

Ethics is gotten in by definition on the person.

GET THE DEFINITIONS FULLY UNDERSTOOD.

The following words must be Method 4 word cleared on all the words  and  the
words in their definitions on the person being handled.

"ETHICS: The study of the general nature of morals (morals [plural]  [noun]:
The principles of right  and  wrong  conduct)  and  of  the  specific  moral
choices to be made by the individual in his relationship with others.

"The rules or standards governing the conduct of the members of a
profession."

"JUSTICE: 1. Moral rightness; equity. 2. Honor, fairness.  3.  Good  reason.
4. Fair handling:  due  reward  or  treatment.  5.  The  administration  and
procedure of the law."

"FALSE: Contrary to fact  or  truth;  without  grounds;  incorrect.  Without
meaning or sincerity; deceiving. Not keeping faith. Treacherous.  Resembling
and being identified as a similar or related entity."

"DISHONEST. Disposed to lie, cheat, defraud or deceive."

171



"PRETENSE: A false reason or excuse. A mere show without reality."

"BETRAY: To be disloyal or faithless to."

"OUT-ETHICS: An action or situation  in  which  an  individual  is  involved
contrary to the ideals and best interests of his group. An act or  situation
or relationship contrary to the ethics standards, codes, or  ideals  of  the
group or other members of the group. An act of omission or commission by  an
individual that could or has reduced the general effectiveness  of  a  group
or its other members. An individual act  of  omission  or  commission  which
impedes the general well-being of a group or impedes  it  in  achieving  its
goals."

Do not go to Step 3 of this until all the above words are cleared by  Method
4 Word Clearing.

STEP 3

Ask the person what out-ethics situation he or she is involved in.

It may take the person some time to think of it, or he may suppress  it  and
be afraid to say it for fear of consequences.  Reassure  him  that  you  are
only trying to help him.

He may have brought it up in a session but did not apply it  as  out-ethics.
Coax him through this.

If his conduct and actions are poor or downstat, he for sure  will  be  able
to come up with an out-ethics personal scene.

Sometimes the person is secretly PTS and is connected to  a  suppressive  or
antagonistic person or group or thing. In such an instance he  will  roller-
coaster as a case or on post or have accidents or be  ill  frequently.  (See
PTS tech for material on this and for future  handling.  Checksheet  BPL  31
May  1971RG,  Issue  IV,  PTS  AND  SP  DETECTION,  ROUTING   AND   HANDLING
CHECKSHEET, but go on handling with these steps.)

Sometimes the person just uses PR (brags it up and  won't  come  clean).  In
this case, an auditing session is required.

If the person gets involved in self-listing, get  him  audited  on  HCOB  20
Apr. 72, C/S Series 78,  which  gives  the  auditing  session  procedure.  A
person can become very upset over a wrong item. It is easily  repaired,  but
it must be repaired if this happens.

By your own 2WC or whatever means or repair get this Step 3 to  a  clear-cut
out-ethics situation, clearly stated. Do not  forget  to  go  on  with  this
eventually if there is a delay in completing it. GIs will be in if correct.

STEP 4

Have the person work out how the out-ethics situation in which he or she  is
involved would be a betrayal of the group or make them false  to  the  group
or its ideals.

Do not make the person guilty. Just get them to see it themselves.

When they have seen this clearly and have cognited on it completely,  go  to
next step.

STEP 5

The person is now ready  to  apply  the  FIRST  DYNAMIC  DANGER  FORMULA  to
himself.

Give him this formula and explain it to him.

172



FIRST DYNAMIC FORMULA

The formula is converted for the Ist dynamic to

Ist 1.      Bypass habits or normal routines.

I st 2.     Handle the situation and any danger in it.

I st 3.     Assign self a Danger condition.

Ist 4.      Get in your own personal ethics by finding what you are doing
that is

      out-ethics and use self-discipline to correct it and get honest and
straight.

Ist 5.      Reorganize your life so that the dangerous situation is not
continually

      happening to you.

I st 6.     Formulate and adopt firm policy that will hereafter detect and
prevent the

      same situation from continuing to occur.

Now usually the person is already involved in  another  group  situation  of
down stats or overt products or bad appearance or  low  conditions,  Courts,
Comm Evs, for something.

It does not matter what other condition he was in. From you he is in
Danger.

So I st 1. and I st 2. above apply to the group situation he finds himself
in.

He has to assign himself a Danger condition as  he  recognizes  now  he  has
been in danger from himself.

Ist 4. has been begun by this rundown.

It is up to him or her to finish off Ist 4.  by  applying  the  material  in
Steps 2 and 3. He or she has to use self-discipline to correct his own  out-
ethics scene and get it honest and straight, with himself and the group.

I st 5. is obvious. If he doesn't, he will just crash again.

Ist 6. In formulating and adopting firm policy, he must be  sure  it  aligns
with the group endeavor.

When he has worked all  this  out  AND  DEMONSTRATED  IT  IN  LIFE,  he  has
completed the personal Danger Rundown.

He can then assign himself Emergency and follow the Emergency  Formula  (HCO
PL 23 Sept. 67, pg. 189-190, Vol 0 OEC, "Emergency").

STEP 6

Review the person and his stats and appearance and personal life.

Satisfy yourself that the steps above and the out-ethics found were  all  of
it. That no wrong item has been found. That the person is not PTS.

Handle what you find. But if you find that the person did  not  improve  and
gave it all a brush-off, you must now take the group's  point  of  view  and
administer group justice.

Your protection of the person is at end because he had  his  chance  and  is
apparently one of those people who depend on others to keep  his  ethics  in
for him and can't keep them in himself.  So  use  group  justice  procedures
thereafter.

173



If the person made it and didn't fall on his head and is moving on up now
AS SHOWN BY HONEST STATS AND CONDITION OF HIS POST, you have had a nice win
and things will go much much better.

And that's a win for everybody.

L. RON HUBBARD

Founder

Revision assisted by

Pat Brice

LRH Compilations Unit I/C

LRH:PB:dr.gm Copyright@ 1972, 1977

174



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 12 MAY 1972R

Remimeo     REVISED 27 OCTOBER 1982

Int Finance

      Network for

      Enforcement

            (Revised to update the distribution

            in light of the new Finance Network)

ETHICS

                            Executive Series 13R

                             Finance Series 12R

                            Personnel Series 25R

PTS PERSONNEL AND FINANCE

PTS means Potential Trouble Source. This is a person who is connected  to  a
suppressive person, group or thing. (For further data on  PTSness  see  HCOB
24 Nov. 65, SEARCH AND DISCOVERY and HCO PL 27 Oct.  64  (reissued  23  June
1967),  POLICIES  ON  PHYSICAL  HEALING,  INSANITY  AND  POTENTIAL   TROUBLE
SOURCES.)

NCG means No Case Gain despite good and sufficient auditing.

A chronically ill person, whether the person is known to be connected  to  a
suppressive or not, is always found to have been so connected and PTS.

IT IS UNSHAKABLE POLICY HEREAFTER THAT NO PERSON WHO IS PTS  OR  CHRONICALLY
ILL OR WHO GETS NO CASE GAIN MAY BE ON FINANCE OR REGISTRAR LINES OR IN  TOP
COMMAND POSTS OR AS HAS OR ETHICS OFFICER OR MAA.

TECHNICAL FACT

A person who is connected to a  suppressive  person,  group  or  thing  will
dramatize a "can't have" or an "enforced overt have"  on  an  org  or  staff
members.

A "can't have" means just that-a depriving of substance or action or
things.

An "enforced overt have" means forcing upon another a substance, action,  or
thing not wanted or refused by the other.

The  technical  fact  is  that  a  PTS  person  got  that  way  because  the
suppressive was suppressive by depriving the  other  or  enforcing  unwanted
things upon the person.

The PTS person will dramatize this characteristic in reaction to the
suppression.

Therefore, a PTS person as  an  ED,  C-/O,  Product  Officer,  Org  Officer,
Treasury Sec, Cashier, or Body Reg will run a can't have on the org and  its
staff by

a.    Refusing income

b.    Wasting income made

175



C.    Accepting wrong customers (like psychos) and forcing them on the org

d.    Fail to provide staff or service

e.    Advocate overt products.

HISTORICAL

When staffs went on proportionate pay in the late 1950s, so long  as  1  ran
the orgs directly, the staffs made more money than before.

When 1 moved off these lines directly, the  staffs  began  to  receive  less
money personally.

At that time it seemed to me that proportionate pay served as an  excuse  to
some in an org to run a can't have on the staff.

We knew that some Registrars could take money in  easily  and  others  never
seemed to be able to.

The technical reason for this has just emerged in another line of research
entirely.

In completing materials and search on Expanded Dianetics, 1 was  working  on
the mechanism of how a PTS person remained ill.

1 found suppressives became so to the person by running a "can't  have"  and
"enforced overt have." This pinned the PTS person to the suppressive.

Working further 1 found that a PTS person was a robot  to  the  suppressive.
(See HCOB 10 May 1972, ROBOTISM.)

This research was in the direction of making people well.

Suddenly it was apparent that a PTS person, as a  robot  to  SPs,  will  run
-can't haves" and "enforced overt haves" on others.

Checking rapidly, it was found that where finance lines  were  very  sour  a
PTS person was on those lines.

RECOVERY

PTS tech, Objective Processes, PTS Rundowns, Money  Processes  and  Expanded
Dianetics will handle the condition.

However, one cannot be sure that it has been handled expertly in orgs  where
a money "can't have" has been run as its tech quality will be low due to  an
already existing lack of finance.

Only stats would tell if the situation has been handled fully.

Thus the policy stands. Handled or not handled, no person who is PTS or  who
has no case gain will  be  permitted  in  top  command  or  any  lines  that
influence finance.

Any org which has consistently low income  should  be  at  once  suspect  of
having PTS or NCG persons on the key finance posts, and an immediate  action
should be taken to discover the  PTS  or  NCG  condition  and  replace  such
persons with those who are not connected to suppressives or who do get  case
gain.

Nothing in this policy letter permits any PTS person to  be  in  an  org  or
cancels any policy with regard to PTS.

This policy letter requires direct check, close investigation and handling
of PTS or

176



SP situations on these posts that may go undetected otherwise.

NOTHING IN THIS POLICY LETTER PERMITS ANY KEY ORG POST TO

REMAIN EMPTY.

NATIONAL

As a comment on something that may impinge on orgs and might affect them,
the

FOREMOST reason for  a  failing  national  prosperity  and  inflation  is  a
personal Income Tax agency. This runs a vicious can't have on every  citizen
and makes them PTS to the government. Individuals even begin to run a  can't
have on themselves and do not produce.  This  IS  the  cause  of  a  failing
national economy. It can be a factor in an org and must be  handled  on  the
individuals so affected.

L. RON HUBBARD

Founder

Revision written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm , 1982

[Note: In addition to the updated distribution, the first paragraph of this
policy letter has been revised That paragraph in the original policy letter
read as follows: "PTS means Potential Trouble Source. This is a person who
is connected to a suppressive person, group or thing. (For full information
on PTS see HCO PL 31 May 1971, Issue IV, revised 5 May 72, a checksheet.)"]

177



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                      HCO POLICY LETTER OF 14 JULY 1972

                                  Issue 11

Remimeo

                       Establishment Officer Series 22

                             Executive Series 14

                                Org Series 30

ESTO FAILURES

For several months I have been studying the Esto  system  in  operation  and
have finally isolated the exact points  of  any  failures  so  they  can  be
turned to successes.

PUTTING IN THE SYSTEM

An Esto returning to an org can crash it.

The exact reasons for this are

A. The execs who heretofore did organizational work  say,  "Ah,  here's  the
Esto system at last," and promptly drop their organizational  and  personnel
actions.

Yet here is this lone E Esto, no divisional Estos, no one trained to
support him.

The right answer is when an E Esto goes into  an  org  where  there  are  no
Estos or only a TEO or QEO, he must gather up the execs  and  tell  them  it
will take him weeks to recruit and train Estos and that THEY  MUST  CONTINUE
ANY ORGANIZATIONAL ACTIONS  THEY  ARE  DOING  and  that  the  HAS  IS  STILL
ESTABLISHING THE ORG.

Otherwise they let go their lines.

B. The new E Esto takes key production personnel from the  divisions  to  be
Estos and they crash.

The answer to this is to RECRUIT the new Estos.

This is easier than it looks if you recruit idle area auditors to be Estos.

If you do this remember that they went idle as  auditors  because  they  had
out-ethics, were PTS, had misunderstoods and out TR 0. To get them you do  a
3 May 72 P/L, a 5 April 72 P/L, Method 4 on their courses and make  them  do
real TRs, especially Zero. And they'll be ready.

You get a list of area auditors and contact them and do the  above  on  them
and you'll have Estos who are half-trained already.

Failing this or in addition to it just plain recruit.

C. The first post a new E Esto should take is Dept 1.

He does NOT "hat the HAS" or "just do programs." He  rolls  up  his  sleeves
and WORKS as director of Dept 1.

He recruits, he posts up Dept 1. He hats the hell out of Dept 1.

He makes a Department I that really really flows in personnel, puts  up  org
bds and hats.

WHEN he has a Department I FUNCTIONING he can  begin  to  recruit  Estos  as
well as other org staff.

If he can't get a Dept I whizzing he has no business being an Esto, does
he?

178



He does NOT put in Dept 2 or act as Dept 3. He makes the HAS handle these.

With a strong, working Dept 1, an Esto system can then go in.

D. Musical chairs is the commonest reason any org collapses.

A "new broom sweeps clean" complex will wreck any org.

An E Esto on arrival, taking over Dept 1, FREEZES ALL  PERSONNEL  TRANSFERS.
He does not permit even one transfer.

The only exception  would  be  where  a  musical  chair  insanity  has  just
occurred. If this was followed by a stat crash then one REVERTS THE  ORG  TO
THE UPSTAT PERIOD and then FREEZES PERSONNEL TRANSFERS.

But before one reverts one must evaluate the earlier period by stats  to  be
sure it WAS the upstat period.

By freezing personnel one protects what he is building.

Almost all musical chairing is the work of a suppressive except when  it  is
the work of an idiot.

E. Anyone trying to hold Dept I in a personnel-starved org is holding a  hot
seat as any HAS or Personnel Director can tell you.

Body traffic to this dept in any medium-sized org defies belief.

It looks like Grand Central Station at the rush hour.

      "I have to have  " "Where is my Course Super      etc.,

etc., etc., is the constant chant.

You can spend the whole day interviewing staff execs and get nothing done.

There is a right way to do all these things and a billion wrong ways.

Obviously the answer to all their problems is to get and train  new  people.
Yet how can one in all the commotion?

Ninety percent of these requests are from people who  are  not  hatting  and
using the people they already have.

The right way is on any new personnel demanded one gets  Dept  3  to  do  an
Inspection and Report Form for people in the area  of  the  exec  doing  the
demanding.  You  will  find  very  often  unhatted,  untrained  and   wasted
personnel and many outnesses.

You hold the line on  personnel  by  saying:  "Handle  these  unutilized  or
halfworking staff or these outnesses. You are here on my  procurement  board
as entitled to the (give priority, 3rd, 8th) person we hire or recruit."

And get industrious in recruiting, using all standard actions  for  that  is
the only way things can be solved.

Most orgs would run better on less people  because  the  personnel  are  not
hatted or trained. One org, two years before this writing, made  four  times
as much money on half the personnel it now has.

Unhatted, the staff is  slow  and  uncertain.  Unproducing,  the  div  heads
demand little.

But they sure can scream for more personnel!

No org ever believes it is overmanned.

F. Some divisions (like the usual Treasury or Dissem)  can  be  undermanned.
Key income posts most often are empty.

When one mans up an org one sets priorities of who gets personnel.

This is done by PRODUCTION paralleling. One mans up against production.

179



New people come in through Div VI. They are signed up by  Div  11.  Delivery
is done by Div IV. Money is collected by Div 111. That gives you a  sequence
of manning up.

You man income and delivery posts with new hirings.

The E Esto is trying to get in a Dept I so of course he gives this a
priority as well.

Until the income is really rolling in and  the  delivery  rolling  out,  one
does very little about other areas.

Having gained VOLUME, one now begins to man up for  quality.  This  means  a
Cramming and a WC Section in Qual. It means more HCO.

One now hits for future quantity  by  getting  auditors  in  training,  more
upper execs in training.

When the org is so built and running and viable it is time  the  whole  Esto
system got manned up.

G. Every 5th person hired on an average should be put in Dept I as a Dept  I
extra personnel who does Dept I duties and trains part-time as an Esto.

This gives the E Esto additional personnel in Dept 1.

It also begins an Esto right.

His most essential duties as an Esto are Dept I type duties.

You eventually have a  bulging  Dept  1.  You  have  a  basic  Dept  I  that
functions well and will continue so. You have  the  Esto  trainees  who  are
working in Dept I as Dept I personnel. And  you  have  of  course  some  new
people who are HCO Expeditors until they  get  in  enough  basics  for  real
regular posting.

This makes a fat Dept I and proves one can Esto!

SUCCESS

If an E Esto introduces the Esto system exactly as above  and  in  no  other
way, he will be a success.

Like an auditor varying processes or  altering  HCOBs,  a  new  E  Esto  who
varies the above will bring about disaster.

Where E Estos have gone into orgs other ways or where the  system  has  been
varied, stats have crashed.

By going in this way, as above, it can be a wild success.

How fast can you put in an Esto system? It takes months  of  hard  work.  It
depends really on how good the E  Esto  is  at  recruiting,  org  bding  and
hatting.

If he's good at these things the time does not stretch out to forever.

For comparison, it took half a year each to build DC,  Johannesburg  and  SH
to their highest peaks. They were all built  from  a  Dept  I  viewpoint  of
recruiting, org bding and hatting hard enough to get production.

So this is the oldest pattern we have-Dept I evolves the org.

When the org gets too big Dept I loses touch. You extend it  into  each  div
and you have the Esto system. And you have Estos.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

180



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 23 JULY 1972R

Remimeo     REVISED 20 DECEMBER 1978

(Revisions in this type style)

                      Establishment Officer Series 23R

                            Executive Series 15R

                               Org Series 31R

THE VITAL NECESSITY OF HATTING

On a graph analysis of past stats, my campaign on hatting where a hat was  a
checksheet  and  pack  apparently  introduced   a   steady   rise   of   the
international gross income.

Studying this further I discovered a new basic, simple fact:

HATTING = CONTROL

A person who is hatted can control his post.

If he can control his post he can hold his position in space-in  short,  his
location. And this is power.

When a person is uncertain, he cannot control his post.  he  cannot  control
his position. He feels weak. He goes slow.

If he can control his post and its actions he feels confident. He  can  work
effectively and rapidly.

The key is CONTROL.

Control is the ability to START, CHANGE and STOP.

When he is hatted he knows the tech of HANDLING things. Thus he can  control
them. He is at CAUSE over his area.

If you have an org  composed  only  of  weak  wobbly  posts,  they  tend  to
collapse in on each other. There is no POWER.

The org then cannot be CAUSE over its environment because it is composed  of
parts which are not cause. The whole is only the sum of its parts.

If all the parts are each one at cause, then the  whole  will  be  at  CAUSE
over its environment.

Only an org at CAUSE can reach and CONTROL.

Thus a fully hatted org can be at cause over its environment, can reach  and
control its fates and fortunes.

THUS THE PRIMARY TARGETS OF AN ESTO ARE

A. ESTABLISHED ORG FORM and

B. FULLY HATTED PERSONNEL.



BASIC SEQUENCE OF HATTING

1.    Recruited or hired. Signs contract

2.    Posted in HCO Expeditor pool or division if divisional recruit (per
HCO PL 2 Sept 74R RECRUITING AND HIRING).

3.    In SO new recruit goes directly  onto  Product  Zero  in  the  Estates
Project Force and upon graduation from EPF goes to HCO Expeditor  pool  (Ref
FO 3727 PRODUCT TRAINING LINE-UP).

4.    Staff Status Zero.

5.    Eligible for student auditing but must have a stat and demonstrated
he has produced on post

6.    Staff Status 1.

7.    Staff Status 11.

8.    Posting as other than an HCO Expeditor.

9.    Full hatting with a checksheet and pack with Word Clearing M6, M7 and
M4.

10.   Method 1 Word Clearing, Primary Rundown or Primary Correction
Rundown.

11.   Administrative or tech training (OEC or auditing).

No one should have any other training much less  full-time  training  before
Step 10 in the above. Flag Orders in the Sea Org  may  change  this  line-up
slightly but it is basically the same.

There are time limits placed on how long it takes to  do  SSI  and  SSII.  A
person who can't make it is routed  to  Qual  where  he  is  offloaded  with
advice on how to get more employable. (In the SO it is Fitness Board.)

TIME-TESTED

The above is the route that has been tested by time and found good.

Other approaches have NOT worked.

Granting full-time training at once is folly. The  person  may  get  trained
but he'll never be  a  staff  member.  This  is  the  biggest  failure  with
auditors-they don't know the org. Admin training with no org  experience  to
relate it to is a waste of time,

This was how we built every great org. And  when  it  dropped  out  the  org
became far less powerful.

Old-timers talk of these great orgs in their great days. And they will  tell
you all about the org boarding and hatting that went  on.  How  the  Hatting
Officer in HCO and the Staff Training Officer in Qual worked as a team.  And
how fast the lines new.

The above steps have stood the test of time and are proven by stats.

RECRUITING AND HIRING

You never recruit with a promise of free courses or free auditing. Not  even
HASes or HQSes. You recruit or hire somebody to be part of the team.

182



OPEN GATE

If any opinion or selection is permitted as to who is going  to  be  let  on
staff, all recruitment and hiring will fail.

By actual stats when you let anyone say "No! Not him!  Not  her!"  the  gate
shuts, the flow stops. And you've had it.

Requirements and eligibility fail. The proof is that when they have  existed
in orgs, the org wound up with only PTSes and no-case-gains!

The right answer is FAST FLOW hiring. Then you have so many that  those  who
can't make it drift low on the org board or off. You aren't trying  to  hold
posts with unqualified people "who can't be spared."

In a short-staffed org "looking only for the best  people"  the  guy  nobody
will have gets  put  in  an  empty  "unimportant"  department.  He's  now  a
director!

It only happened because you didn't have dozens.

The answer is NOT lock the gate or have requirements. The answer is HAT.

An org that isn't hatted goes weak and criminal.

Don't be selective in hiring or recruiting. Open the gates and HAT!

Follow the steps given above and you have it.

Don't spend coins like training or auditing  (or  travel)  on  people  until
they have proven their worth. No bonuses or high pay for anyone  until  they
have reached and attained Step 8 (a good stat).* The cost of such fast  flow
hiring is not then a big factor.

The only trouble I ever had with this  was  getting  div  heads  to  UTILIZE
their staff. A FIRST JOB FOR AN EXECUTIVE IS TO GET THINGS  FOR  HIS  PEOPLE
TO DO. AND KEEP THEM BUSY AT PRODUCTIVE THINGS.

So I used to have to go through the org that did FAST FLOW HIRING  regularly
and get people to use their new people. And to move off those who could  not
work.

This was ALL the trouble I had with the system.

And until I enforced FAST FLOW  HIRING  there  was  always  some  effort  by
someone to close the gate.

ALL the great executives in Scientology came up in such orgs.

With a flow of people the best move on up. The worst, if any, drop off.

Only orgs with restricted hiring or recruiting give trouble.

IN A FAST FLOW HIRING ORG THE HAS  AND  ESTOs  MUST  BE  ON  THE  BALL.  THE
BREAKDOWN OCCURS WHEN THEY DO NOT HAT AND  KEEP  ON  TOP  OF  THE  PERSONNEL
SCENE.

Fast flow hiring only breaks down and gets protested  where  HCO  and  Estos
are not doing a top job. They have to  really  handle  the  personnel,  post
them, hat them, keep the form of the org.

A fully formed org in a heavily populated location would  need  hundreds  of
staff. It would make hundreds of thousands.

183



But only if it is fast flow hiring, hatting, holding the form of the org,
and only then could it produce.

L. RON HUBBARD

Founder

Revision as assisted by

Arden Hansen

FMO 2025 I/C

LRH:AH:nt.jk.gm , 1978

[Note: The text of this policy letter is the same as the original LRH issue
except for the section titled "Basic Sequence of Hatting." In the original
issue that section read as follows:

1. Recruited or hired.

2. Staff Status Zero.

3. Staff Status 1.

4. Staff Status 11.

5. Posting as other than an HCO Expeditor.

6. Full hatting with a checksheet and pack fully done with M6 and M7 and M4
WCing.

7. Eligibility for study and auditing (OR for staff service or study).

8. Must have a stat and demonstrated he has produced on post.

9. Objective Processes CCHs, 8C, S-C-S, Havingness, etc.

"10. Drug Rundown.

"11. Method I WCing, Primary Rundown or Primary Correction Rundown.

" 12. Administrative or tech training (OEC or auditing).

"No one should have any other training, much less full-time training,
before Step 9 in the above. (There is an exception in the Sea Org where
Crew Member Checksheet is done at once after recruiting on a Deck Project
Force. The other actions then follow except that Estates Project Force may
be substituted instead of HCO Expeditor, but the rest of the program is the
same.)

"There are time limits placed on how long it takes to do SS I and SS 11. A
person who can't make it is routed to Qual where he is offloaded with
advice on how to get more employable. (In the SO it is Fitness Board.)"]

*[See Step 8 in the above footnote.]

184



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 JULY 1972

Remimeo

                       Establishment Officer Series 26

                             Executive Series 16

                                Org Series 32

                                ESTABLISHING

                         HOLDING THE FORM OF THE ORG

If a person who could not play a piano sat down qt a piano  and  hit  random
keys, he would not get any harmony. He would get noise.

If the head of a division gave orders to his staff  without  any  regard  to
their assigned posts or duties, the result would be confusion and noise.

That's why we say a division head "doesn't know how to play the piano"  when
he knows so little about org form that he continually violates it by  giving
his various staff members duties that do not match their hats or posts.

But even if one could play the piano, one would have to have a piano to
play.

SPECIALISTS

Each org staff member is a specialist in  one  or  more  similar  functions.
These are his specialties.

If he is fully trained to do these he is said to be HATTED.

The combined specialties properly placed and being done add up to  the  full
production of an org.

The org form is then the lines and actions and spaces and flows  worked  out
and controlled by specialists in each individual function.

These specialists are grouped in departments which have certain  actions  in
common.

The departments having similar functions are grouped into divisions.

The divisions combine into the whole org form.

It is far less complex than it looks.  It  would  be  very  complicated  and
confusing  if  there  weren't  divisions  and  departments  and  specialized
actions. Without these you would get noise and very limited  production  and
income, and at great strain.

Take a theater as an example. There are people who advertise it;  these  are
the public relations people; they are  hatted  to  get  publicity  and  make
people want to come to the play; call them the PR Division.  There  are  the
producers and directors; they are hatted to present a performance  and  make
it occur; call them the  Production  Division.  There  are  the  actors  and
musicians; call them the Artists Division. There are the property men;  they
are hatted to  get  costumes  and  items  needed;  call  them  the  Property
Division. There are the stage hands and electricians  and  curtain  and  set
men; call them the Stage Division. There are the ticket  sellers  and  money
handlers and payroll  and  bills  payers;  they  are  hatted  on  money  and
selling; call them the Finance Division.

185



There are the people who clean the theater and  show  people  to  seats  and
handle the crowds; call them the House Division. And there are the  managers
and playwrights  and  score  writers  and  angels  (financiers);  call  them
loosely the Executive Division.

Now as long as they know their org board, have their flows plotted out,  are
hatted for their jobs and do a good  job,  even  a  half-good  play  can  be
viable.

But throw away the org board, skip the flows, don't  hat  them  and  even  a
brilliant script and marvelous music will play to  an  empty  house  and  go
broke.

Why? Because an org  form  is  not  held.  Possibly  an  untrained  unhatted
producer will try to make the stage hands sell  tickets,  the  actors  write
the music, the financiers show people to their seats. If he didn't know  who
the people were or what their hats were he might do just that.

And there would be noise and confusion even  where  there  was  no  protest.
People would get in one another's road. And the general  presentation  would
look so ragged to the public they'd stay away in droves.

ESTO ACTION

Now what would an Esto (or an Executive Director) have to do  with,  let  us
say, an amateur, dilettante theatrical company that was about to bog.

Probably half the people had quit already. And even if there were people  in
the company they would probably need more.

The very first action would be to Esto Series 16 the top men to make money
quick.

The first organizing action would be to kick  open  the  hiring  door.  This
would begin with getting out hiring PR and putting  someone  there  to  sign
people up who came to be hired  (not  to  test  and  audition  and  look  at
references, but just to sign people up).

The next action would be to do a flow plan of public bodies  and  money.  So
one sees where the org form reaches. Then a schedule.

Next action would be to do an org board. Not a 3-week job. (It  takes  me  a
couple hours to sketch one with a sign pen for posting.) AND GET IT POSTED.

One then takes the head of each of these divisions and hats him on what  his
division is supposed to do and tell him to do it. NOW.

You make and post the flow plan, org bd and  terminal  location  plan  where
the whole company can see them.

Chinese drill on a flow plan to show them what they're doing  and  what  has
to be done.

Chinese drill on the org board including introducing each  person  named  on
it and getting it drilled, what he does and who he is.

You Chinese drill the terminal locations where each of  these  persons  (and
functions) is to be found.

You get agreement on schedules.

You now have a group that knows who specializes in what and what's  expected
of each.

You get the head of the whole company to work with and hat the heads of  his
divisions.

186



Now you get the heads of divisions to hat their own staffs while you help.

And you get them busy.

You then put the polishing  touches  on  your  own  Dept  I  (personnel  PR,
personnel hiring,  personnel  placement,  org  bds,  hat  compilations,  hat
library and hatting hatting hatting).

And by hatting and insisting on each doing his specialized job  and  getting
seniors to HOLD THE FORM OF THE ORG by ordering  the  right  orders  to  the
right specialists and targeting their production  and  MAGIC!  This  amateur
theatrical company gets solvent and good enough  to  wind  up  on  Broadway.
It's gone professional!

You say, yes, but what about  artistic  quality?  What  about  the  tech  of
writing music and acting. . . .

Hey, you overlooked the first action. You kicked the  door  open  on  hiring
and you hatted and trained. And you let go those who couldn't get a stat.

Eventually you would meet human reaction and emotion  and  would  put  in  a
full HCO and a full Qual particularly Cramming.  But  you'd  still  do  that
just to be sure it kept going.

Yessir, it can't help but become a professional  group  IF  you,  the  Esto,
established and made them HOLD THE FORM OF THE ORG and  produce  while  they
did it.

An Executive Director can do all this and produce too.  The  great  ones  do
things like this. But here it is in full view.

A Scientology org goes together just like that. Which could be why, when  we
want to get something started, we say:

"Get the show on the road!"

But there is no show until it is established and the FORM OF THE ORG is
held.

You are luckier than the amateur theatrical company's Esto. You have  policy
for every post and a book  of  it  for  every  division  and  all  the  tech
besides.

So there is no valid reason under the sun  you  cannot  establish  and  then
hold the form of the org.

L. RON HUBBARD

Founder

LRH:nt.bh.ts.gm

187



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 SEPTEMBER 1976

Remimeo

All Staffs

Org Series 35

Executive Series 17

THE STAT PUSH

WHAT exactly is a stat push?

The danger in talking about this subject at all is that someone  can  do  an
immediate make-wrong by saying, "This means don't try to raise any stats."

So to understand this subject at all, one must have a pretty clear  idea  of
exactly what is meant by "Don't push stats."

First of all one has to know precisely that  STATISTICS  ARE  AN  INDICATOR;
THEY ARE NOT AN OBJECT.

WHEN YOU PUSH THE INDICATOR YOU DO NOT OBTAIN THE OBJECT IT REPRESENTS.

PRODUCTION IS COMPLETED CYCLES OF ACTION, NOT JUST NUMBERS.

The figure " I " in "I apple" is not the apple.

Therefore pure, raw, naked stat pushing is an outpoint called "wrong
target."

Pushing a stat without doing anything to bring about the stat  is  therefore
an aberration.

Demanding a stat without doing anything to see that  it  occurs  or  putting
anything there to make it or correcting anything that is  preventing  it  is
an aberration built out of either psychosis  or  ignorance  of  what  should
really be done.

It is quite true that stats must be kept up. But unless they are kept up  by
putting something there or correcting something that is  there  and  getting
all the cycles of action done by all those who should  do  them,  the  stats
will DECREASE and eventually vanish.

An order, a telex, a yell to the effect  "GET  THE  STATS  UP"  is  so  much
wasted time.

Further,  such  an  order  or  telex  or  yell  in  any  form  has  a   very
deteriorating effect. Individuals or staffs look at it in a  properly  weird
light. They are there, they are doing what they can, they have problems  and
tangles and barriers. And telling them to "Get the stats up" causes  various
reactions, none of them very good. Essentially, it gives them  neither  help
nor direction and even subtly informs them that the person  ordering  either
does not know or does not care what is going on and is not  about  to  help.
The eventual reaction can become an ignoring of that command channel.

There are some specialized actions in stat pushing. Chief  amongst  them  is
the "GI push."

The usual indicator of this is a neglect or abandonment of staff  or  caring
about staff. One sees no real effective attention on recruitment,  training,
apprenticing, hatting, future execs. And  when  one  sees  this  it  usually
follows that there is a "GI  push"  going  on  somewhere  in  the  executive
strata. Why this indicator? Well, you see, it only takes a small handful  of
people to get in GI and where executive attention is fixated on a "GI  push"
the  various  production  staff,  HCO  and  the  rest  of  the  org   aren't
"necessary." You find this with EDs who reg instead  of  getting  Registrars
and putting an org there,  with  EDs  who  go  for  credit  unions  and  odd
financial deals. And you will

188



also find they have the  biggest  number  and  amount  of  refunds  and  the
biggest backlogs AND a shrinking and unhappy org. Unfortunately,  they  soon
also get a crashing GI for none  of  the  support  actions  are  being  done
across the divisions.

The reason "GI pushing" happens so often is the  structure  of  the  society
itself.  The  only  real  crime  for  which  one  can  be  punished  by  the
governments of today is lack of money. In other crimes if one has  the  huge
sums necessary to hire lawyers one can often  get  off.  But  the  crime  of
having no money is the only crime one cannot get  out  of.  There  are  even
laws which cause the arrest on the street of persons  who  do  not  have  so
much money in their pockets or wallets: it is  called  "vagrancy."  So  with
the whole aberrated society on a big "GI push," with Wall  Street  measuring
values only in how much something costs, with wages and prices  soaring,  at
this writing, to total social disaster, it is no wonder  that  short-sighted
and untrained or even aberrated executives get into a "GI push."

The answer to not having money is, of course, to make more money. And  there
is nothing whatever wrong with that. BUT that is not done with a "GI  push."
It is done with putting a whole org there, every part of it functioning  and
delivering with all the bugs out of its lines, and making a  lot,  lot,  lot
more money. Fifty trained staff producing everything an org is  supposed  to
produce will make far more money than five guys  concentrating  on  GI  only
and letting the rest of the org go to blazes. The GI made by the fifty  will
go on increasing. The GI made by the five (and not backed up by the rest  of
the org) will decrease week by week and then crash.

Let us take some examples of "stat pushing":

The room is cold and the staff is wearing overcoats and using blankets.  Mr.
Stat Pusher walks over to the thermometer on  the  wall  and  sees  that  it
reads very low. So he yells at the thermometer, "Get the stat  up!"  Nothing
happens of course; it still says 15', so he yells at the  staff,  "Get  that
stat up!" Now, in this instance, having a stat pusher around,  the  org  has
no Treasury Div and so there was nobody  to  pay  the  bills  and  the  fuel
company has refused to deliver further fuel. The janitor is missing  because
there is no HCO to hire one or keep one on post so there's no one  to  light
the furnace even if it had fuel. And due to an unhatted  Financial  Planning
Committee, that also doesn't meet or exist, no new boiler was  ordered  when
the old one blew up last year. The stat pusher seems incapable of  observing
these facts, and is too unskilled to bring them to rights. So  he  continues
to yell "Get the stat up" and the  staff  wears  more  and  more  coats  and
blankets until at last it is just a quiet scene of solid ice.

If the letters out stat is down, this is a bad INDICATOR. It is  vital  that
one keeps stats and observes when one goes down. It  is  extremely  hard  to
manage on one's post or in an org unless one  has  a  stat.  But,  in  going
down, WHAT is being indicated? A lack of letters out. So what does  one  do?
Does he yell "Get the letters stat up" or does he  look  into  this?  If  he
looked into it he could find the real Why, handle it and  the  letters  stat
would go up. He might find that the Letter Reges were all sacked  so  as  to
increase the unit pay one week and that he has somehow gotten a nut  onto  a
personnel or finance post (whose R/Ses make even  his  head  jerk  back  and
forth). He might find that the typewriters had broken down.  He  might  find
that Dept 5 people were all being used by Div 5 to handle  their  files.  At
the very least he will find something aberrated or ignorant going  on  which
has to be handled before the letters can be flooded out again. WHEN this  is
found and handled, THEN the letters out stat will go up.

So Mr. Stat Pusher is essentially operating on a short  circuit.  He  cannot
or will not look.

And there is another variety of stat aberration which comes  about  after  a
lot of "Get the stat up" has failed. This is Mr. Stat Ignorer.

Mr. Stat Ignorer is driving along in a car and he looks at the  speedometer.
It says 15 m.p.h. He glares at the needle for a moment and then handles  it.
He pastes a piece of paper over it so it can't be seen. And  sits  back  and
drives contentedly. If he'd looked, he would have found he  had  three  flat
tires and an engine about to run out of oil and explode.

Then there is also Mr. Stat Faker. He knows that he will get in  trouble  if
his STAT is down. So he simply dreams up a  figure  and  puts  it  on  graph
paper. He is encouraged

189



and rendered confident in this because he is sure that no senior  will  come
around and notice the towers of unanswered letters or the huge  backlogs  of
cramming orders or the mobbed  waiting  room  of  unhandled  public  or  the
mountain of uncorrected and unfiled address plates. He is confident  because
no senior has in the last year or two. And he can say "I'm an  upstat"  when
the Ethics Officer tries to hit him for keeping the front door  to  the  org
obstructed with his motorcycle. And he is recognizable by a  caved-in  case,
low morale and a hunted look of glee as he creeps through the org.

There is one common denominator the stat pusher, the stat  ignorer  and  the
stat faker have. And that is AN ABSENCE OF SKILLED MANAGEMENT.

We have investigatory tech. It is there for use. We  have  the  Data  Series
evaluation tech. It is there for use. We have administrative  tech.  And  it
is all published and there for use. And further, when it is known and  used,
proven times without number now, production and prosperity  occur  AND  show
up  as  statistics  which  INDICATE  that  production  and  prosperity   are
occurring.

Yes, it is very, very true that an org or a manager or an  auditor  or  file
clerk gets in trouble if their stats are down.

Yes, it is true that stats should exist and be used.

But it is equally true that the way to get a stat is to put something  there
that can get something done  and  get  the  lines  debugged  and  the  scene
handled.

The fate of the stat pusher, the stat ignorer and the stat faker is to  look
around one day and find no org.

It's a very long way between yelling or telexing or writing  "Get  the  stat
up" and handling things and getting production cycles completed so that  the
stat WILL go up,

The stat, properly stated and honestly kept, IS a  vital  indicator  of  the
scene. If you know how to use them you can get the areas  that  have  to  be
handled. And if you know your policy and tech you can  find  the  real  Whys
and get real handlings and get things whizzing.

We mean to have all the stats going up because this  INDICATES  a  bettering
state of affairs for everyone.

The job of the Product Officer is NOT  to  yell  "Get  the  stats  up."  The
Product Officer is there to notice and order things like "Get those  letters
answered so they get answers." And the job of the Org Officer  is  to  carry
out the handlings the Product Officer  finds  necessary  to  get  production
rolling.

A fire-breathing Product Officer is worth his weight to every  staff  member
IF he is trying to get and is getting production which results  in  bettered
conditions, better products, better prosperity and  THIS  will  incidentally
show up in the stats.

It's a world of things that have to be done and coordinated before the
stats go up.

We are in the business of people, we are  in  the  business  of  a  bettered
world. We have to have completed cycles of action. And these  are  shown  in
stats.

We are also in a world of exchange and would be no matter what  ideology  we
lived under. We have to "make Gl" and we have to have "the stats up."

But our success is measured in terms of the ACTIONS we do,  for  only  those
show up in the indicators called statistics.

So, okay. Let's go about it the right way. And  find  what  is  holding  the
stats down and  handle  and  correct  those  things  and  so,  honestly  and
swiftly, become upstat.

L. RON HUBBARD

Founder

LRH:lf.gm

190



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 20 SEPTEMBER 1976-1

            ADDITION OF 17 APRIL 1977

Remimeo

All Staffs  (Reissued 5 Dec 1977, to clarify the point that this PL

      only clarifies HCO PL 20 Sept 76, THE STAT PUSH

      and does not cancel it.)

Org Series 35-1

Executive Series 17-1

STAT PUSH CLARIFIED

This policy letter is revised. The second paragraph  of  the  original  said
that it was dangerous to talk about the subject because  somebody  could  do
an immediate makewrong by saying "This means don't try to raise any stats."

Well, exactly that happened. There was a heavy campaign run  into  all  Flag
Operations Liaison Offices and to orgs  designed  to  discredit  asking  for
raises in stats. (The person who  did  it  and  failed  to  push  production
quotas is suspended and under Comm Ev.)

The whole point seems to have been missed. It was this: You can't ask for  a
NUMBER, you CAN and MUST ask for a SOMETHING.

That something is a product. It is a thing, a tangible item.

Right this minute, as a result of a mission, HCO PL 16 Nov. 76,  "Production
Quotas" has now been provided with  thoroughly  researched  subproducts  one
has to push in order to get  the  PRODUCTS.  These  are  the  real  tangible
actions you have to take to get  a  number  of  actual  products.  In  other
words, by getting many exact  minor  products,  you  then  can  achieve  the
valuable final product.

STATISTICS are those numbers which simply count  the  products  attained  or
obtained.

Stat management is the only kind of management you can do  on  a  production
scene. Management by statistics was brought to a  fine  art  in  Scientology
admin tech. To discredit it is, of course, to court failure.

Abusing statistical management is also something of a  crime.  It  has  been
done by some managers who said "Get the stats up" without ever  saying  what
subproducts you had to get that would then make up the product.

Stat management is a valuable tool and has gotten  us  over  the  years.  To
discredit it first by saying first just "Get the stats  up"  without  saying
how or what or why was one side of the pendulum.  Then  the  pendulum  swung
clear to the extreme and people were being made  guilty  for  even  watching
stats or demanding or working to raise them.

So let's get a little middle swing of the pendulum now.

It is perfectly all right to demand that stats rise  so  long  as  one  says
what subproducts and products make up those stats and gives some  indication
of what people should do to get the stats rising.

It is perfectly all right to do stat management.

191



And it is perfectly okay to come down hard on people or orgs who fail to
get their stats in viable range.

So long as you give them some idea of what small products (subproducts)
they have to get to make up the real products, you are NOT doing a stat
push.

So long as you give people some direction and guidance, you can yell for
stat increases all you want.

And you better.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:lf.kjm.gm , 1977

192



HUBBARD COMMUNICATIONS (

      Saint Hill Manor, East Grinstead, S

HCO POLICY LETTER OF 14 NOVEN

Remimeo Flag Bu All Orgs

Ext HCO FB  Admin Know-How Series 36

Org Series 36

Executive Series 18

Personnel Series 28

MANNING UP AN ORG

The Sequence of Posting Depts and Divs

You need an org bd first and an allocation board.

The sequence in which an org is manned up is roughly:

- Dept 1

- Dept I I

- Reg and Body Routers and Intro people in Div 6

- Dept 12 (enough auditors and C/Ses to approach 2 admin to I tech in org)

- Dept 6

- Dept 7

- Dept 3

- SSO and Supers in Qual to train staff

- Dept 5 for CF Address and Letter Reges

- Dept 4 for promo

- Dept 21 (LRH Comm)

- Dept 10

- Dept 20

- FR & execs

- Full Div 6

- Full Div I

- Full Div 4

- Full Div 2

- Full Div 5

- Full Div 7

- Full Div 3

(Note, an AO always mans up the AO dept or div along with the SH one in
each case.)

Wrong sequence of manning is Dept 6, Dept 12, Dept 6, Dept 12, Dept 6, Dept
12, as you wind up with a stuck clinic that won't expand.

Wrong sequence will contract an org while trying to expand it as the org
will go out of balance, bad units, noisy and unproductive.

If manned in a correct sequence its income has a chance to stay abreast of
its new staff additions.

Emphasis on GI without comparable emphasis on delivery and organization can
throw an org into such a spin only a genius can run it.

Manned in proper sequence, and hatted as it goes, an org almost runs
itself.

193



Single-handing from the top comes from longstanding failures to man  or  man
in sequence, from earlier noncompliance with explicit  orders  or  from  not
understanding orgs in the first place.

An unhappy org that doesn't produce has usually been manned  only  partially
and out of sequence.

The trick is planned manning, ignoring the screams of those  who  know  best
or demand personnel; just manning by posting those who  have  been  screamed
for the loudest is a sure way to wind  up  with  no  people  and  total  org
problems instead of a total org that is prosperous and producing.

Incidently, this is a rough approximation of the sequence  of  hats  the  ED
gradually unloads as his org takes over.

L. RON HUBBARD

Founder

LRH:nt.gm

194



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 16 NOVEMBER 1976

Remimeo All Staffs

                                Org Series 37

                             Executive Series 19

PRODUCTION QUOTAS

                        Ref. HCO PL 8 Feb 72 Issue 11

                              Mgmt Series Vol 2

In a recent pilot, executed at my orders by the Staff Captain, it was found
that:

WHERE A STAFF MEMBER DOES NOT KNOW THE SUBPRODUCTS WHICH GO TO MAKE UP A
GROSS DIVISIONAL STATISTIC THE GDS WILL SUFFER AND FALL.

And it was also found:

WHERE SUBPRODUCTS ARE NOT GIVEN A QUOTA. QUOTAING A GDS FAILS.

The report on the pilot follows and is given in full as it is  an  excellent
example of what a Product Officer or executive  runs  into  and  how  it  is
solved.

"During the last two weeks, while  running  the  FSO,  I've  had  a  lot  of
experience with the above subject, and thought that the data that 1 have  on
it might be useful to you.

"When first going into the org 1  pushed  for  actual  products  along  with
quotaing of the GDSes.

"This went over very well, however, the day you sent a telex  to  quota  the
products that make up the stat, things really started moving much better.

"Your telex really opened the door for me as to how to go about  getting  an
org to work on products and get stats up.

"Here is the best example. The week before last on  Monday  or  Tuesday  the
student points were heading for bad downstats for the week. The D of  T  was
more or less tearing her hair out about how she could meet  her  quota.  She
and the Tech Sec were trying to figure out what had changed.

"This was right after 1 had read your telex referred to  above,  so  what  1
did was to tell them how they had to work on the products that make  up  the
stat.

"The next step was to list out what the subproducts were that  made  up  the
stat. 1 just made a very simple list, not necessarily a  complete  one,  of.
(1) course starts, (2) F/Ning students, (3) students  that  are  on  target,
(4) students that increase their production daily. Then made sure the  D  of
T would understand how these made up the stat.

"The next step after that was to change 1-4 above into 'number of.'

"This brought about what one could call instant sanity, and exclamations  of
realizations of how the area could be handled.

195



"This was followed up by making the D of T work on each of  these  products.
It took a lot of work and figure  out  how  to  do,  as  far  far  from  all
students were F/Ning,  etc.  It  took  actions  like  finding  every  bogged
student and debugging him on a flat-out basis.

"The end result was that the stat did not crash, but went up some, and  this
week went up even more.

"Other actions were required in the area, such as the  Qual  Sec  and  Chief
Off sorting out the TRs Course, the D of T  doing  TRs,  and  more,  but  it
worked for sure.

"After this, we made this the pattern for the dept  heads  to  follow:  i.e.
work on the products and subproducts that make up the stat, list  them  out,
quota them, make the quotas, make your GDS quotas.

"It has also been put in on Dept 18 lines, so that Tours and external  Reges
are no longer pushed on GI and bodies only. There is a  pilot  project  with
Flag Service Consultant  WUS  since  a  few  days  which  puts  in  a  whole
subproduct system and quotaing and reporting on  it,  which  was  very  well
received.

"However, what I also wanted to tell you,  is  that  this  does  not  go  in
automatically, we're still catching bugs on it.

"These are the bugs that have been run across:

" 1. Dir Reg had a bunch of subproducts and  products  beautifully  quotaed,
but when asked  what  his  quotas  were  for  'closes'  and  'completed  Reg
cycles,' he dropped his jaw as he had not thought about that.

"He immediately quotaed these and production increased right away.

"2. The Dir Procurement  (Dissem  Sec  HFA)  had  not  set  any  quotas  for
CF/Address as she stated that 'that area would not be  possible  to  quota.'
Her M U was that  she  thought  she  had  to  quota  every  single  area  of
Addresso, rather than the part they were working on at the moment.  She  had
a major win on this.

"She also kept her quotas in her head as she 'hated  to  have  papers  lying
around.' She since has them all in a book and is very happy.

"3. The Dist Sec could not think of the subproducts that would produce NNCE

"4. The Dir Income was working on subproducts in such a way  that  they  did
not add up to his GDS, or rather, that they did not result in his GDS  quota
being met, and tried to justify this.

"Several others required close  personal  contacts  to  list  out  what  the
products would be that made up their stat.

"MUs are still coming up, but it sure works! It's brilliant, Sir.

"My picture of an org that operated on this basis with  every  staff  member
should be incredible.

"Now, I have looked at the trouble an executive would run into  implementing
the order to quota products that make up stats, and 1 can see  lots,  unless
you know exactly how to do it.

"This is what 1 see on it:

"You would have to keep the GDS quota there and in mind  constantly,  as  if
you don't, things can slack off too easily.

196



"You would have to bring the terminals concerned to an understanding of  the
cycle of working on products that make up the stat.

"You would have to get a list of what  the  products  and  subproducts  are,
without making it miles long.

"You would have to make sure that the  list  is  complete,  per  policy  and
actually makes up the stat.

"You would then have to make sure that the list is quotaed.

"You would then have to make sure that the quotas are  met,  and  you  would
have to watch out for anyone using it wrongly so the GDS quota is not met.

"On most of these you would have to make sure that there are proper  'figure
out how to do's,' on how to go about getting the products.

"The above actually, now that I look at it, fits in exactly  with  your  PLs
on Name, Want and Get the Products.

"I think also what is of importance is that you really break  down  what  it
takes to get the products: i.e. if the DTS here was told  to  get  10  fully
paids into the org, she would be 'blank,' until you broke it down  into-make
up the list of them, make so many contacts, get so many ETAs, etc.

"Pressure is still required to get a momentum and keep it going.

"Another example is getting out over 100,000 pieces of promo  in  one  week.
It takes incredible detailed planning that covers everything; when what  has
to be through I/A and on the assembly line, what checks have  to  be  gotten
when, what has to be addressed when and franked, what all hands  are  needed
and when, etc. I had to force through exact planning on  this  with  targets
assigned, etc., and then push like mad.

"The use of HCO Pl, Exec Series 7 is also very important in all this."

Therefore these conclusions can be considered valid and vital:

EVERY GDS MUST BE BROKEN DOWN INTO SUBPRODUCTS AND THE STAFF MEMBERS MUST
KNOW THEM IN ORDER TO ATTAIN A GDS.

And:

EVERY SUBPRODUCT MUST BE QUOTAED FOR A GDS QUOTA TO BE ATTAINED.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:nt.gm

197



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 9 JANUARY 1980

Remimeo

All Staff

All Orgs

      SO & Scn

Executive Series 20

DEPARTMENTAL MINI PROGRAMS:

THE KEY TO ACHIEVEMENT

Ref.. Target Series PLs, OEC Vol 0

This policy letter is based on L RH ED 293R, which was issued originally  as
the 78-79 BIRTHDAY GAME FOR ORGS and reissued as the 79-80 BIRTHDAY GAME  BY
OVERWHELMING DEMAND FROM STAFF THE WORLD OVER.

As the program was highly effective,  all  of  its  steps  and  actions  now
become firm policy, in order to preserve and  continue  its  use;  and  this
policy letter, which includes the full content of  the  program,  is  to  be
maintained as a standard org COIED tool.

All changes from the original LRH ED are in this type style.

To achieve the product of a flourishing, prosperous org, a  CO  or  ED  with
the help of the LRH Comm and Flag Rep, the Executive Council and Ad  Council
and staff, must have control of his org.

An ED or CO who takes the initiative in controffing and running his org  and
does so with know-how is worth his weight in gold. The same  is  true  of  a
divisional secretary or department head in an org.

In orgs where such initiative was taken and the actions  contained  in  this
policy letter were carried out by the executives, the  stats  rose  and  the
org thrived.

The key to such achievements was and is MINI PROGRAMS based  on  policy  for
each department of the org.

These programs are done FOR EACH DEPARTMENT by:

1.    Personally inspecting the department.

2.    Writing up a simple mini program THAT CAN BE DONE, and is  WITHIN  THE
AVAILABLE RESOURCES, IS BASED ON SPECIFIC HCO PLs  APPLIED  WITH  EXPERIENCE
AND IN THE KNOWLEDGE OF SUCCESSFUL ACTIONS, LRH EDs AND APPROVED  EVALS  AND
CONTAINING BRIGHT IDEAS DEVELOPED FROM POLICY, AND THE  EXISTING  SCENE,  ON
HOW TO ACTUALLY BRING ABOUTA RESURGENCE OF THAT DEPARTMENTAND GETTING IT  TO
GET THE WORK DONE THAT HAS TO BE DONE BY THAT DEPARTMENT TO BOOST THE ORG.

3.    Issuing the program.

4.    Making the execs and staff of the area adhere to that program and not
cross-order it and get it done.

198



5.    Reinspecting the area daily to see how it is going.

6.    Get the program DONE.

7.    When the first program is done, examine the resulting VFP and stats
for that department.

8.    Reinspect and do a new simple mini program for the department.

9.    Issue the new program.

10.   Make the execs and staff of the area get it done.

11.   Reinspect the area daily to see how it is going.

12.   Get that program DONE.

13.   When the second program is done, examine the resulting VFP and stats
for that department.

14.   Personally inspect the department.

Continue the above cycle.

Give copies to staff in that dept and to the execs so they'll know what
you're working on.

Send two copies of each mini program to the FOLO which will keep one and
forward the other to Data Files Flag.

Neither the FOLO nor Flag has to okay a mini program.

GUIDELINES

Use the following rules:

A.    Organize only toward actual production.

B.    Post only in the direction of production.

C.    Make execs of the affected area handle any flaps. The CO or ED is not
"flap crossroads."

D.    Use OEC and Management Volume admin tech and quote it in orders,

E.    Don't be reasonable.

E     Don't take the conclusions of a junior.

G.    When people can't get it done, find people who can.

H.    Don't tolerate out-ethics.

1.    Use Esto tech.

J.    Realize an org is a purveyor and service depot for standard tech,
Dianetics and Scientology.

K.    Realize that an org controls and expands its field and keeps it
active and happy.

L.    Realize that the staff welfare and status depends on the activity and
prosperity of the org.

199



M.    Realize that the org is not a commercial company but the center of a
religious movement which is changing the society.

DELIVERY

Completed intensives and completed courses  are  the  keynote  to  an  org's
prosperity. These stats continue to be reported.

Gear up to really deliver. This requires a TTC, auditor  recruitment  and  a
wellstaffed Academy and HGC that works and is on the ball.

There is  not  one  single  staff  member,  unit,  section,  department,  or
division of an org that does not  have  an  individual  delivery  demand  or
quota and that does not contribute to the overall  delivery  of  Scientology
to the public, directly or indirectly.

Exchange within the org and between the org and every member of  the  public
and the broad public is accomplished only by  delivery.  All  mini  programs
must reflect this.

GI

There are several distinct sources of GI in an org. Make each  one  work  to
independently support the org.

These are

Department 6

Department 18

Department 5

Qual

Department 7

Department 4 (books, packs, meters, etc.).

Income comes from different sections of the departments within the
department.

All this data is in OEC Volumes.

Every one of these points of GI entrance should be producing.

There is also a system of examining invoices to find out  what  geographical
areas the org's people come from and saturating these areas with promo.  The
local GO used to do this for the org  even  though  it  isn't  really  a  GO
function. The GO system used at SH was best.

FSMs have to be built up and cultivated-and paid promptly.

Refunds have to be held to a minimum by actually delivering  and  delivering
very standard tech.

One has to get all the GI doors open and functioning-a thing to remember  in
doing departmental inspections. Is there any door there to open? And  if  it
is there, is it open?

PRODUCTION VERSUS ORGANIZATION

You can organize with no production, and you  can  try  to  produce  without
organizing.

200



You have to keep a nice balance between these two.

You will find that  in  the  current  disorganized  family  and  educational
scene, that personal concepts of organization and order are  not  very  high
and must be  developed  in  individual  staff  members  as  well  as  units,
sections, departments, divisions, and the whole org. This is  as  simple  as
learning to put things down where they belong and where they  can  be  found
again when needed and actually creating  folders  and  files.  Without  this
seemingly unimportant order and organization, production  of  simDle  cycles
takes ages. This must be given attention in mini programs.

MINI PROGRAM

As you will be getting these done regularly in short spaces of  time,  write
doable ones that don't take long to finish.

You can defeat an org with 10 page 200 target programs.

An org can be put into a productive winning frame of mind with short  doable
programs.

It takes good sense to do a mini program that lets the department win.  It's
easier to keep track of, when you pin the individual programs  on  a  target
board and get the dones marked in so you know what mini program  has  to  be
debugged and when you have to do a new one.

FOLOs

The FOLO handles the overall org health of a continent.

The FOLO must get this policy letter in and being done  effectively  and  to
ensure the ED does have control of his org.

Where he doesn't, as shown by  lack  of  stat  response,  particularly  paid
comps,  GI,  and  intensives  sold  and  delivered,  and  courses  sold  and
completed, and Div 6 services being delivered to a happy public,  and  books
pouring out into public hands, the FOLO must  intervene-not  piecemeal,  but
thoroughly, and only on a broad failure of an org to prosper and deliver.

NETWORKS

The duties of networks in  reporting  and  executing  remain  unchanged  and
their PL authority is undiminished.

FLAG

Evaluations of continents and individual orgs are done at Flag. This  policy
letter is a factor in all such evaluations.  Flag  also  manages  FOLOs  and
sees that they operate properly.

Flagrant FOLO, continental or org out-ethics or out-tech,  high  refunds  or
lack of a prosperous and delivering org are  the  primary  targets  of  Flag
intervention.

Flag actions are not piecemeal but are directed at whole orgs or
continents.

CROSS ORDERS AND INTERFERENCE

Where networks, Flag and FOLO orders cross-order each other into an org,  or
where a program for the org is unreal, the CO or ED of a FOLO  or  org  must
telex  the  Emergency  Officer  of  the  Senior  Executive  Evaluation   and
Execution Office, which  is  situated  in  the  Office  of  LRH,  Flag,  for
clarification.

Protection claimed by reason of upstats, if claimed on falsely reported or
padded

201



stats, can result in  Comm  Ev  or  removal.  Therefore,  any  clarification
request must also carry "I attest my stats are true."

Clarifications will be done mainly by policy reference.

Request for clarification is not to be actionable by a  FOLO,  Flag  bureaux
or aides in any way.

NEW TECH

There have been tons of new tech, new  rundowns,  new  shorter  checksheets,
issued in the past  year  or  two.  1978  was  a  year  of  tremendous  tech
breakthroughs, followed by more tech breakthroughs  in  1979  and  even  now
further breakthroughs are evolving from these.

You have been getting these AND their marketing packages straight along  and
will continue to get them. There is even a new unit exclusively  devoted  to
exporting these to you.

You have had NED for some time now. Rave, rave successes are  still  pouring
in about it. An org that can't sell, train, and deliver that, ain't.

Class / V Orgs now have new shorter checksheets with all  their  bright  new
tech for their Class 0-1V students. So  getting  Dianetics  and  Scientology
auditors trained is a snap now. You have a world monopoly on  the  only  and
finest tech.

So there's nothing holding you back.

The only claims for such that can exist would be in your imagination.

SUMMARY

What you want, isn't it, is a happy,  productive,  prosperous  org  that  is
servicing its area to make it happy and prosperous.

So (as production is the basis of morale), ask this of any mini program  you
write: Will this give us a happy, productive, prosperous department?

Well, have at it. You've got the steering wheel. Where's the throttle?

L. RON HUBBARD

Founder

LRH:gal.gm

202



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 FEBRUARY 1980

Remitneo

                                Org Series 41

                              Finance Series 25

                             Executive Series 21

PRODUCTION AND ONE'S STANDARD OF LIVING

References:

BPL 19 Mar. 71   Finance Series 7

      BEAN THEORY-FINANCE AS A

      COMMODITY

HCO PL 9 Mar. 72 1     Finance Series I I

      INCOME FLOWS AND POOLS -

      PRINCIPLES OF MONEY MANAGEMENT

HCO PL 27 Nov. 71      Exec Series 3

      MONEY

HCO PL 3 Dec. 71 Exec Series 4

      EXCHANGE

FEBC Tapes

(NOTE: I realize that management units, orgs and staffs  are  daily  pounded
with false economic data. The real facts of life  collide  with  much  false
data. Such crippling  data  comes  from  many  sources-school,  advertisers,
government, bankers, propagandists, even parents who insisted  Johnny  be  a
doctor so he could "live well" or set a horrible  example  themselves.  Many
have had a hand in messing up people's wits on the subject. It is  a  factor
in inhibiting the individual prosperity of  executives,  staff  members  and
orgs. Where an area is not prospering, this PL should be  starrated  on  its
people and the false data they have on this subject stripped  so  that  they
then can prosper as they should.)

"Standard of Living" can be defined as the relative quality  of  a  person's
or group's possessions, quarters, food, equipment, tools and  conditions  of
their area of work and existence. It is the state of  the  person's  living,
including working, environment. Where its potential  continuance  exists  it
is related to survival. It is a basic natural  economic  law  that  personal
production of VFPs and one's standard of living are intimately related.

This applies to the individual as well as the team.

Where violations occur, inequities exist.

At a personal level one must produce in excess of  his  standard  of  living
just to retain and maintain it.

Actually, the "excess" means that  because  of  overload,  taxes,  services,
plant, utilities, raw materials, machine and other costs additional  to  his
own work sphere, a person cannot expect to get the full value  of  his  VFPs
all to himself. That is not economically feasible. The "excess" varies  from
post to post and job to job but is never less than 5X minimum.  In  industry
it is considered to be at  least  IOX  to  maintain  company  standards  and
solvency. The "excess" can be very high indeed in some  industries.  But  in
any case any idea that it should be one for one is fatal.  People  who  know
little of economics or management sometimes propose a worker should get  the
full value of his VFPs-but all work and all VFPs  require  support  services
and to neglect these would quickly bring on poverty. Even when  working  for
oneself alone, these "excess" factors exist and seldom drop below 5X as  one
still requires support services. Corrected gross  income  divided  by  staff
has to be at least 5X the cost of the standard of living of  the  individual
staff member for that standard to be barely

203



maintained. This does not mean staff pay should be 1/5 of  that  figure.  It
means that all the things (pay included)  that  go  into  maintaining  their
welfare and work environment would  have  to  be  covered  by  1/5  of  that
figure. A fairly efficient and prosperous org with  a  hatted,  industrious,
gung ho staff can very easily maintain quite acceptable  standards  at  1/10
that figure. The actual cash value of every piece of work done by  a  person
can actually be calculated. It is  intricate  and  tricky  to  do  and  much
subject to over and under estimation but it can be done. It is not vital  to
do this but one might just be curious about it. If so, do it  for  yourself.
Thus VFPs can be priced against what they bring in as part  of  the  overall
scene even when they seem indirect. All the above  figures  are  very  rough
and subject to variation but this gives you some idea of what  is  meant  by
66excess" in that law.

Where a number of people in a group or on a team  do  not  produce  VFPs  in
excess of their standard of living they depress the standard  of  living  of
the group or team.

Where some in a group do  not  only  not  produce  VFPs  but  produce  overt
products, they actively depress the standard of living of everyone  in  that
group or on that team.

Many economists and theorists seek to avoid that law. They do it to  gratify
politicians or aggrandize  some  false  philosophy  whose  true  purpose  is
suppression under other colors.  But  the  law  remains  and  its  violation
breeds an epidemic of economic ills. Amongst such ills are inflation,  super
bureaucracy, chaos with the marketplace and a decay of the civilization.

When a whole society demands a high  standard  of  living  and  yet  doesn't
concentrate on the personal production of VFPs, it is finished.

Products are the basis of a standard  of  living.  They  don't  appear  from
midair. They come from work truly done. Not from hope or false data.

It is a druggie's dream that machines,  computers,  under  the  dictatorship
will do it all. Machines can raise a standard  of  living  by  assisting  in
production. But they can't do Man's living for him.  Intelligently  designed
and used, they permit, within limits, increases in population. But  machines
are just tools. They have  to  be  thought  up,  designed,  built,  run  and
serviced and their raw materials and fuel have to  be  found  and  delivered
and their products  promoted,  delivered,  used  and  often  in  their  turn
serviced. The machine age was  actually  recognized  as  failed  when  world
leaders first began to urge population reduction on the planet  to  "improve
the individual standard of living." If machines were going to solve  it  all
why is the civilization now in such a steep decline? It took  producing  men
working in and with a machine age to make the society go. Not idle  mobs  on
welfare expecting a high standard of living while  a  few  guys  work  their
guts out. Pie in the sky is nice but did anyone ever get  to  eat  it?  This
misinterpretation of the machine age was a  heavy  violation  of  the  above
economic law. But the real harm of the machine  age  was  creating  a  false
belief that one did not have  to  produce  much  to  survive.  This  lowered
people's estimate of how much they  would  themselves  have  to  produce  to
survive, much less have a high standard of living.  Factually  one  normally
has to work fast and  expertly  and  in  high  volume  to  bring  about  any
acceptable standard of living for himself and his group.  This  is  a  point
the machine age obscures. But it remains vividly and demonstrably true.

An executive who works hard yet  wonders  about  his  own  low  standard  of
living should look over his people to find those who are not producing  VFPs
or who produce even overt products while yet demanding a  living.  7hey  are
absorbing the potential raised standard of living of the group.

Where a group has a very low standard of living, it  need  only  review  the
above law and its potential violations to understand why.

One cannot, in fact must not, increase the standard of living of a group  in
ways that violate the above law. It will eventually bring calamity  on  that
group.

In a society led astray by crackpot economics, violations of the  above  law
create a vast number of wrong examples. The rich (most  of  whom  work  like
mad) are seen as idle or even criminals. The best way of  life  is  made  to
appear to be idleness. One seems to be owed a living without any  effort  on
his own part. The producing worker  should  be  fined  by  higher  taxation.
These are not seen to be simply false data spread about to

204



wreck the place but are held as "truths." And in their wake comes a  funeral
for that group or society.

There   is   even   an   economic   theory   spread   about   today   called
"equalitarianism." It declares everyone should get the  same  pay  and  have
the same standard of living. It does not mention that anyone should  do  any
work. It holds that the better worker should  not  be  better  rewarded.  It
would crash any society.

Then there is the "monetarist" who  believes  you  can  manipulate  a  whole
society with money alone. And no thought of any production.  His  answer  to
production? (You won't believe  this.)  Decrease  demand!  In  other  words,
reduce everyone's standard of living!

Basic economics eventually catches up with all these weird false  pretenses.
It may take time but, as in the law of gravity, the apple  eventually  falls
no matter how many crackpots advance theories to say it can't fall, will  go
up, or vanish. Real basic economic laws are like that.  They  catch  up.  So
don't wonder about  inflation  and  depression  and  decayed  civilizations.
Basic economics caught up with the crackpots.

An executive has to pay attention to the  basic  law  about  a  standard  of
living. If he doesn't pay close attention to it, the standard of  living  of
himself and of his group will cave in.

He can be "a good fellow" and seek popularity by  attempting  to  raise  the
standard above what is earned. He and his group will crash.

He can be  foolish  and  seek  to  raise  his  own  rewards  above  what  he
personally is earning in terms of VFPs. But  both  he  and  his  group  will
fail.

He can ignore the real producers  of  the  group  and  not  see  that  their
standard of living is comparable to their individual production. And he  and
the group will fail.

He can ignore the nonproducers and  the  overt  product  makers  and  by  so
ignoring them, tear his own and the group's standard of living to bits.

He can listen to a bunch of PR from a staff member about how  valuable  that
staff member is and surrender to it without  ever  really  counting  up  the
real VFPs that staff member is  not  producing  (or  even  preventing).  (It
happens.) Only real VFPs count.

He can work himself half to death without demanding production  from  others
and have his own standard of living crash.

There are swarms of false data flying about today on  this  subject.  It  is
taught in schools, the very best schools; it is heard on the radio and  seen
on TV and in the papers. The civilization, as it caves  in,  is  blinded  by
literally thousands of false ideas about what and how a standard  of  living
occurs. These, where they conflict with the basic law, actively prevent  one
from prospering as they blind him to the truth of his scene.

In an org or management unit in Scientology, the real VFP is  valuable  fine
people who produce valuable final products who then make up a valuable  fine
public. Every piece of work  and  duty  in  a  management  unit  or  an  org
contributes to that.

The standard of living of an executive, a  management  unit,  an  org  or  a
staff member is determined by that one  basic  economic  law:  The  personal
production  of  VFPs  for  the  group  and  one's  standard  of  living  are
intimately related.

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS

of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:ab.gal.gm

205



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 21 SEPTEMBER 1980

                                 Issue VIII

Remimeo

                          (Originally LRH OODs item

                               of 14 May 1972)

Exec Series 22 Esto Series 50

MORALE

Production is the basis of morale.

If one can get  a  unit  producing  and  actually  accomplishing  worthwhile
production, then their morale will rise.

Thus, it does not matter too much how one starts a unit  producing  so  long
as it does get started.

I was given a good example of this with just one person who has been  on  MO
lines. She is actually well now. She is miserable. There  is  nothing  wrong
with her at all except she is  out  of  the  action  and  is  not  producing
anything.

This has been noted in other fields. The "idle rich" are the most  miserable
people you ever wanted to meet. "To Have and Have Not" or  some  such  title
by Hemingway talks about it for the best part of a book.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm Copyright@ 1972, 1980

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Esto Series 41.]

206



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 11 SEPTEMBER 1980

Remimeo     Issue Il

                          (Originally LRH OODs item

                               of 10 Nov 1971)

Org Series 46

Exec Series 23

ORGANIZATION AND SURVIVAL

Well organized activities survive. The  survival  of  individuals  in  those
organizations depends on the highly organized condition of the activity.

A small group, extremely well organized, has excellent chances of survival.

Even a large group, badly organized, hasn't a prayer.

The essence of organization is org boarding, posting with  reality  and,  in
keeping with the duties being performed, training and hatting.

To this has to be added the actual performance of the  duties  so  that  the
activity is productive.

The outward signs of a badly organized group are slovenliness and fumbles.

Another ingredient that goes hand in hand with organization and survival  is
toughness. The ability to stand up  to  and  confront  and  handle  whatever
comes the way of the organization depends utterly  on  the  ability  of  the
individuals of the organization to stand up to,  confront  and  handle  what
comes the individual's way. The composite whole  of  this  ability  makes  a
tough organization.

An individual who is not properly posted, isn't  performing  the  duties  of
the post, is not trained or hatted, is soft. He has  no  position  to  hold,
therefore he goes down at the first fan of a feather.

Confidence in one's teammates is another factor  in  organization  survival.
Confidence in one's self is something that has to be earned. It is  respect.
This is a compound of demonstrated  competence,  being  on  post  and  being
dependable.

After an individual has failed,  confidence  in  him  on  the  part  of  his
teammates sinks. He has lost face and is not respected.  This,  then,  shows
itself up in numerous ways. It  is  up  to  that  individual  to  earn  back
confidence so that his teammates will again trust him. The way  to  do  this
is to get properly org boarded, trained, hatted and to confront and  handle,
with competence, whatever that post is supposed to control.

The ultimate in no confidence by a group in a team  member  is  no  post  at
all. Reports from those who have no post  or  from  those  who  are  between
posts stress the horrors of having no post.

Our survival depends fully on becoming entirely  and  completely  organized.
This will happen to the degree that  every  separate  unit,  department  and
division in an org is properly org boarded, properly performing  the  duties
of the post, is trained and fully

hatted.

      L. RON HUBBARD

      Founder

      Compiled and issued by

      Sherry Anderson

      Compilations Missionaire

      for the

BDCS:LRH:SA:dr.gm

, 1980      BOARDS OF DIRECTORS

      of the

      CHURCHES OF SCIENTOLOGY

207



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 12 SEPTEMBER 1980

                                   Issue I

Remirneo

                       (Originally LRH Flag Ship OODs

                           item of 7 March 1971.)

                                Org Series 47

                             Executive Series 24

                          Admin Know-How Series 39

HANDLING OVERLOADED POSTS

Reference:

HCO PL 28 July 71      ADMIN KNOW-HOW 26

Product and Org Officers can take over a grossly  overloaded  key  post  and
(a) increase its production and (b) reduce the work hours. They should  take
over posts for 48 hours and give the incumbent a rest and see what gives.

The rules that seem to apply are

a.    It is a key post of the area in question and

b.    It is the most overloaded and/or most nonproductive post in that
area.

It's one thing to issue orders. It's another to do work.

One doesn't stand behind the guy. One takes him off the  post  and  actually
does the work of the post.

While doing it one will see why it can't be done or  isn't  being  done  and
one can then get a good bright idea of how it can be done and get it in  and
write it up.

One often finds he has to ask "What hat am I wearing?" when one finds he  is
on overload.

Well, one solution is to just go over and really wear that hat and  see  why
it can't be worn, get an idea of how it can be worn, do the  action  to  see
if it's right. write it up for issue and put the person back on it.

A junior often can't mesh up the lines so they work because  he  hasn't  the
know-how and hasn't the authority. His proper action would be to figure  his
post out and write it up for issue and get it in his hat.  When  he  doesn't
do this it jams or overloads his own and other lines.

Where this situation exists and  isn't  changing,  a  Product  Officer,  Org
Officer or HAS or the divisional Product or Org Officers have an  out.  They
can take over such a post, do all its work for 48 hours with  no  help  from
the incumbent, get an idea of how to debug it, see if that works,  write  it
up and turn the post back over.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BDCS:LRH:SA:dr.gm      BOARDS OF DIRECTORS

, 1980

      of the

      CHURCHES OF SCIENTOLOGY

208



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 21 SEPTEMBER 1980

Remimeo     Issue IX

                        (Originally LRH OODs items of

                     12 November 1970 and 24 June 1971)

Exec Series 25

TROUBLE

The fastest possible way for a senior to get into trouble is to fail to get
in ethics on a downstat junior.

The US "solves" all this with huge government payoffs and propitiation. And
look at the upsurge of riots.

Capitalism works only on the reward side. It takes two sides to make a
game.

If an I/C lets ethics go out on his juniors, he pulls the rug out from
under himself-and slaughters the juniors also.

A team is composed of teammates. Those who mess up the team aren't
teammates.

Orgs are teams and all of Scientology is a team. It takes teamwork and
backup to make things go right and stay right.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIET~TOLOGY

BDCS:LRH:SA:bk.gm , 1971, 1980

209



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 6 OCTOBER 1980

Remimeo     Issue V

                          (Originally LRH OODs item

                               of 22 May 1969)

Exec Series 26

ORDERS VERSUS ARBITRARIES

The other evening, on a request, I said members  of  the  company  could  do
part-time study on the Dianetics Course. This became an absolute  order,  an
arbitrary which was put in full force.  Not  only  that,  but  nobody  would
handle it.

Why not?

If anyone had bothered to trace the order that "all must study"  they  would
have found it was a false arbitrary.

Almost every outness around is of this breed of arbitrary.

A group that insists on sitting in the glorious irresponsibility  of  orders
and only orders will never develop into a true group.

If you want to get a real look at  what  you're  doing,  ask  yourself  this
question: Where do I get my orders from?

I get them from observation of the situation. And I give instructions  based
on a prediction of consequences.

Until  you  can  do  that,  you  will  feel  harassed,  ordered  around  and
oppressed. Not because anybody is  interested  in  oppressing  anyone.  Just
because they try to make a safe environment, bump into  people  who  haven't
observed or acted, and so issue orders.

I  don't  think  anybody  fully  understands  the  antipathy   I   have   to
authoritarian rule. The reason you see me get cross  is  in  no  small  part
protest at being forced to cope with a situation which occurs by neglect  of
others. Why elect me to save the day? This ship, this  planet  and  universe
are the concern of others too. I have no monopoly on the ability to  observe
and act.

The campaign to force into a dictatorship a group which has freedom  as  its
main objective is about as popular with me as a fire in a powder factory.

Freedom depends on ability.

We can and will bring freedom to this planet. But only if and when we  cease
to demand orders and begin to observe and act on our own predictions.

      L. RON HUBBARD

      Founder

      Compiled and issued by

      Sherry Anderson

      Compilations Missionaire

      Approved and accepted by the

BDCS:LRH:SA:dr.gm      BOARDS OF DIRECTORS

, 1980

      of the

      CHURCHES OF SCIENTOLOGY

210



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 5 NOVEMBER 1980

Remimeo     Issue I

                        (Originally LRH OODs item of

                               28 August 1970)

Exec Series 27

CONTROL OF STATISTICS

I think GDSes are down in some sectors because some people just  don't  know
how to get them up. Many watch them from a spectator viewpoint.  Well,  it's
down. Fate. It recovered. Kismet (Russian for "fate"). It's level.  Will  of
Allah.

The missing datum is that an org's stats are totally under  the  control  of
that org. An org's stats totally reflect the production  and  competence  of
the org.

Let's take a letters in stat. You (a) increase letters out,  (b)  you  check
out letter writers on getting R in  the  letters  wholly,  (c)  you  use  CF
folders always when writing a letter, (d) you increase letters out, (e)  you
spot-check letters going out for R and on-policy, (f) you put hard sell  and
good promo out, (g) you use info packets, and (h) you  get  out  heavy  bulk
mailings on-policy, (i) you offer what you  can  deliver,  (j)  you  deliver
what you offer. Result, letters in soars! My own letters  in  stat  (when  I
sign another name) is 1 for 1. In most orgs it's about 25% response.

But I'll bet a lot of orgs have  it  explained  that  it's  fate  or  "promo
doesn't work" or "local public interest is low."

A success story stat is totally under control. You really use the  tech  and
really smooth out students and cases and you get I success story  for  every
completion. Then, because you have a success story,  you  get  a  re-sign-up
and get a new completion and a new success story.

So my attitude toward low  GDSes  is  about  the  same  as  you'd  feel  for
somebody who didn't know he was driving and ran the car  in  a  ditch  on  a
straight road!

I don't speak from lack of knowing. Because I've done it and it's  about  as
easy as riding an armchair.

Staffs make their own trouble. Once in Joburg they tested a whole school  of
kids. Why, God knows. But they did. And then did the adult test  grading  on
them! "You see, Josie Ann (aged  10),  you  are  having  trouble  with  your
husband." Didn't half upset the parents. Tailor-made down stats.

Somebody hadn't checked out on WHY they were testing people.  Or  what  they
were supposed to do with them.

Orgs  are  being  penalized  solely  because  of  lack   of   training   and
understanding and grooving in people.

Every point of neglect, every half-worn hat,  spoils  our  reach  just  that
much. Every action well done, small or large, extends our  reach  just  that
much.

The more you know and the better you do your job, the sooner we will make
it.

      L. RON HUBBARD

      Founder

      Compiled and issued by

      Sherry Anderson

      Compilations Missionaire

      Approved and accepted by the

BDCS:LRH:SA:nc.gm      BOARDS OF DIRECTORS

Copyright@ 1970, 1980

      of the

      CHURCHES OF SCIENTOLOGY

211



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 17 OCTOBER 1980

Remimeo     Issue 11

                          (Originally LRH OODs item

                            of 8 September 1971)

                               Exec Series 28

                               Esto Series 48

INSTABILITY

You will find that persons who are having a rough time or giving others  one
are either just leaving or haven't arrived on the post. In other words  they
in some way are not actually ON post.

It is also an oddity that those who have to go to point  B  haven't  arrived
ever at point A in order to be able to leave for B.

The ability to BE something strongly shows  up  in  post  performances.  The
real stars can BE anything wholly and completely for short or long  periods.
They ARE what they are being. They aren't just arriving or leaving.

To BE OR Unfle, that is the ability! To not quite be or to WAS is the
aberration.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

212



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 22 OCTOBER 1980

Remimeo     Issue Il

(Originally LRH OODs item

      of 13 May 1972)

      Exec Series 29

      HANDLE

R ef.

HCO PL 12 Oct. 67      OPERATIONAL, DEFINITION OF

HCO PL 4 May 68  HANDLING SITUATIONS

HCO PL 26 Jan. 72 1    Admin Know-How Series 29

      Executive Series 5

      NOT-DONES, HALF-DONES AND

      BACKLOGS

Since December 1971 there has been a  new  command  policy  with  regard  to
handling projects and CLOs and orgs.

WHEN IT HAS TO BE HANDLED, HANDLE THE HELL OUT OF IT.

The reference is the HCO  PL  (26  Jan  72)  on  NOT-DONES,  HALF-DONES  AND
BACKLOGS.

But it is more important than that.

You can spread a lot of invested time over a wide area and  get  no  result.
This is a sort of puttering around.

The way to really get someplace is give priority to definite whole  actions.
This is done on order of value of result. "We'll do Area A, B, C  and  D  in
that order! Now we'll take A and handle the hell  out  of  it,  terminatedly
finished done, total. We can be getting B ready meanwhile. But with  A  done
we now get B done. And so on. We handle hell out of what we're handling."

The accuracy and extent of handling determines  whether  something  is  well
handled.

Actually, you're dealing with the definition of fully operational.

Something is fully operational when it FUNCTIONS  WITHOUT  FURTHER  CARE  OR
ATTENTION.

The Estos should learn this too.

Don't putter or fool about.

HANDLE THE HELL OUT OF IT!

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BDCS:LRH:SA:dr.gm      BOARDS OF DIRECTORS

, 1980

      of the

      CHURCHES OF SCIENTOLOGY

213



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 30 OCTOBER 1980

Remirneo    Issue 11

      (Originally LRH OODs item

      of 22 June 1974.)

Exec Series 30

Esto Series 49

TECH

Every action that results in a product has a certain tech,

One finds out about it or develops it.

When one adopts false tech he will then wind  up  with  confusion  as  false
tech will not deliver a product. It delivers a confusion-like psychiatry.

The more false tech you hold on to or apply the more confusions you will
get.

When real tech is invalidated then false tech can enter in. So the  test  of
false tech is does it give a confusion and the test of real tech is does  it
give a product.

A Mis-U word in real tech then can let false tech in.

If the tech is not available for a certain job one then has to  develop  it.
His development will be correct only if it delivers a real product.

When one busily develops tech  where  proven  tech  already  exists  and  is
available, one is wasting his time.

Technology is that part of knowledge that is used.

So it is not enough just to know. One also has to apply.

If one really knows his tech it is very  easy  to  apply  it.  When  one  is
uncertain, his application is uncertain.

Life in living forms depends upon real products.

When products take too long to bring about or  when  they  turn  out  to  be
overt products then they are not economical to produce.  Overdue  and  overt
products are both very costly in time and catastrophes.

If you find in any area you are taking too long to produce a  product,  then
it's time to review your tech. (A) Does  tech  exist?  (B)  If  yes,  "Am  I
applying it?" (C) If no, "Do I have to develop it?"

If it is (C), then one had better get  very  busy  sorting  it  out.  It  is
easier and less expensive to do  that  than  to  go  on  turning  out  overt
products.

Any product has its tech.

Do you know the tech to produce yours?

(Note: Also see HCO PL 23 August 1979, Issues  I  and  11,  DEBUG  TECH  and
DEBUG TECH CHECKLIST.)

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted by the

BDCSC:LRH:SA:nc.gm     BOARD OF DIRECTORS

, 1980      of the

      CHURCH OF SCIENTOLOGY

      OF CALIFORNIA

214



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                              of 24 March 1970)

Exec Series 31

A MATTER OF ORDERS

ARC breaks occur when a person in charge requests something be looked into
and he is given an opinion or an explanation.

It is not a true comm cycle.

"Go see what's smoking." "I think it's George burning toast."

"Put out a bow line."

"We've got one out." (When a second one is needed.)

Gives one a long string of non-comm cycles and is a sure-fire ARC break.

I think this is why those in charge get upset. Getting an opinion or
explanation when an order is meant to be done.

Part of the fault is not wording the order in anticipation of such a reply.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm Copyright@ 1970, 1980

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Exec Series 21.1

215



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 24 SEPTEMBER 1980

Remimeo     Issue 11

                        (Taken from an LRH OODs item

                               of 31 Aug. 71)

Exec Series 32

Personnel Series 32

OVERLOAD AND HATTING

I have found that whenever I have had to handle something, I found the
person who should have handled it unhatted and with misunderstood words on
things intimately connected with his duties.

Thus I have found this cycle of great use and thoroughly recommend it.

1.    Emergency item or omission requiring handling turns up.

2.    Handle it right now fast (my handling something time lapse is about 5
minutes to half an hour). (That means terminatedly.)

3.    Spot who should have handled it.

4.    Interrogate the person on basics of his post (not ask about "hat
folders," etc.).

In all cases so far I have found the person not doing his post duties,
unhatted, with huge misunderstoods on words like "post," "hat," "muster,"
etc.

5.    Hat the guy.

So I can tell you that any overload you have is from unhattedness of the
most basic kind.

An org is as efficient and looks as good as its people are individually
hatted and do their jobs.

It's a very good system. I recommend it.

A sort of a do-it-yourself HCO!

It works.

      L. RON HUBBARD

      Founder

      Compiled and issued by

      Sherry Anderson

      Compilations Missionaire

      Approved and accepted by the

BDCS:LRH:SA:dr.grri

Copyright@ 1971, 1980  BOARDS OF DIRECTORS

      of the

      CHURCHES OF SCIENTOLOGY

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Exec Series 24.]

216



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 24 MARCH 1981

Remimeo

All Exec

Hats

Executive Series 33

LEADERSHIP - MORE ABOUT

                     (Taken from tape lecture 5901CO4 of

                    4 January 1959 titled "Leadership.")

One of the basic things that we all face is a new adjustment. In  your  past
many lives here on Earth you were probably well adjusted. You probably  went
on and on doing more or less the same thing. All of  a  sudden  here's  this
brand new look. You're not doing what you were accustomed to doing. You  are
not riding at the same speed that you rode before. You are not handling  the
same cultural values that you handled before.

In this society burning  questions  scorch  all  of  us.  How  do  you  keep
marriages together? How do you raise kids? How do you hold in check  and  in
democratic balance  a  government  which  so  outweighs  the  populace  with
weapons that you never dare smile at it? How  do  you  bring  reform  to  an
organization  that  is  totally  powerful  and  is  getting  more  and  more
ignorant? How do you live in this changing world?

Once upon a time you could pick up a scythe and go down the  line  and  take
your chance with the mounted knight and  somehow  or  other  bring  about  a
social reform. Once in  a  while  you  could  win.  Once  in  a  while  some
principles would triumph over the status quo.  But  right  now  that  really
isn't possible.

FINDING SECURITY IN TODAY'S WORLD

How do you hold in line the gains we have  made  culturally  and  make  more
gains? In what sort of culture should  we  be  living?  What  sort  of  life
should we be living? How should we increase our own security? How should  we
make things more successful, easier, better, more secure?

There is hardly anyone living a life  of  good  security.  The  reason  good
security isn't discovered is you have not  yet  worked  out  a  pattern  you
yourself consider secure in the face of advancing scientific technology  and
advancing  cultural  pattern  changes.  The   third   dynamic   is   getting
disarranged and  rearranged  and  the  fourth  dynamic  is  getting  changed
considerably and none of us have really found our feet in this new change.

There used to be a miller. He ground the flour. Somebody  brought  him  four
bags of flour, he ground four, kept one and gave three back.  That  was  his
life.

Now the farmer has to buy back  his  own  wheat,  ground,  from  some  large
company and pay  top  price  for  it.  His  economics  are  so  complicated,
thereby, that he can't acquire a security.

It's gotten to a point where it doesn't do any good to save money  for  your
old age. The government has taken that all off your back. Or  has  it?  Will
they ever pay you an old age  pension?  Who  knows?  Or  will  the  old  age
pension be so valueless in terms of money by the time it gets  to  you  that
it will buy nothing?

SPACE OPERA VERSUS THE INDIVIDUAL

People have gotten busy and started to fire rockets at the sun.  This  makes
a change up into space opera. In the old days, waaaay  back,  when  man  was
going into

217



space, he did it  with  hypnotism,  implantation  and  heavy  duress-and  he
folded  up.  All  the  great  space  societies  were  built  by  losing  the
individual totally. They lost him utterly, and so they lost his  initiative.
And they lost everything else that was good about Man. They became  criminal
societies.

We are in a space age and that age is being built at the  sacrifice  of  the
individual. On Earth today we alone can preserve the individual.  There  are
several committees for civil rights and that  sort  of  thing  that  try  to
fight against this incursion on individual liberty. But  for  every  bit  of
pressure they can exert  or  every  power  they  can  develop,  somebody  is
developing some new weapon, some new high-speed missile, something new  that
overreaches again Man's own individual power. It  is  quite  an  interesting
view. It will become more and more interesting as the years move.

LEADERSHIP AND INDIVIDUALITY

When you begin to sacrifice the individual for the good of the  society,  as
has already happened here on Earth, you also sacrifice that  which  is  best
about an individual: his individual sense of good, his individual  sense  of
responsibility for his own life and guiding it.

When that individual no longer feels that he  is  responsible  for  his  own
life, when he is totally cared for by the state, when he  is  born  in  some
sort of a nursery and gets put on board a spaceship or in an army,  and  his
indoctrination consists of  some  hypnotic  mumbo  jumbo,  you've  lost  one
thing: You've lost leadership.

For the individual is the only leader. A group can  lead  nothing.  A  group
democratically operated can select its leaders, who in turn govern  it.  But
when there are no longer leaders in a society, who do  they  elect?  Who  is
there to elect who can help or guide the society in any way? No  great  mass
of people can possibly elect a leader when there are none.

And that is what happens in a society. Individual liberty, individual  work,
individual beingness and understanding go down  in  front  of  a  tremendous
onslaught of modern scientific improvements. Gadgets  and  guns,  dependence
on the state, all  wipe  out  the  individual.  Therefore  in  this  society
leadership suffers. And where you  do  not  have  adequate  and  responsible
leadership, you don't have a society,  you  have  a  criminal  element.  All
criminality is, is the abandonment of all  responsibility  on  one  or  more
dynamics.

So what happens in a space opera  society?  Oh  yes,  we  have  fancier  and
fancier ways to implant people. We have  fancier  ways  to  shoot  dogs  and
satellites and Christmas messages into outer  space.  We  have  gadgets  and
keyboards and countdowns and cracked space helmets....

But who is around with enough responsibility to say what is to be done  with
these things? Or does it all turn into some huge Frankenstein  monster  that
somebody has started and nobody can control?

"HE DIDN'T LIKE SOUP"

Societies of that character don't like individualists. I remember  a  famous
story called "He Didn't Like Soup." This individual, who was an  individual,
gets raised amongst a bunch of space jockeys, space opera fellows. He is  in
their midst at a meal as the soup comes along on  the  assembly  line.  Each
one of  them,  of  course,  takes  off  their  bowl  of  soup.  Except  this
individual. The bowl of soup that appeared in front of him goes on down  the
assembly belt. It gets into the works and gears at the end of  the  assembly
belt. Nothing like this has ever happened before so they don't even  have  a
fuse on the thing. It flashes back and closes out the  power  plant  of  the
building and, because the power plant goes, there is  no  way  to  stop  the
atomic fission on the main power plant and it blows up the whole town.  When
they ask this fellow why he did it, he says, "I didn't like soup."

218



There we have an example of building a society so flimsily,  but  apparently
strongly, that any action contrary to its general will, blows it up.

Similarly, the will and worth of  one  individual  can  always  overthrow  a
large, complicated, interdependent  society-providing  that  individual  can
come up to revolution,  and  there  is  no  provision  in  the  society  for
leadership.

WHAT WE ARE DOING

What we are doing in Scientology today  is  not  necessarily  providing  the
leaders of tomorrow. We are raising the general level of  responsibility  at
the same time all other social actions seek to depress it.  We  are  keeping
something  in  balance  that  is  more  important,  probably,  than  even  I
understand.

If the future society cannot have men capable of  sufficient  responsibility
to be entrusted with tremendous  weapons  and  the  violence  of  which  the
society is capable, then the more the society improves,  the  more  it  will
blow itself up! We have, perforce, a  police  state.  What  are  the  police
trying to do? They are trying to keep individuals from doing things. Why  do
they have to keep individuals from doing things? Because individuals are  so
irresponsible they are liable to do anything.  That's  why  a  police  state
grows.

What we are doing is the only impulse I know of in the society at this  time
which is actually directly pointed at the heart of the future police state.

In  a  society  where  individuals  are  free,  where  individuals  can   be
rehabilitated, where  individuals  can  still  think,  you  can  still  have
leadership. One individual can be selected by other intelligent  individuals
to represent them, or one individual by his natural  ability  can  at  least
control some sphere of the social order around him. And unless  this  social
order is controlled, unless there is a sphere that a thetan can bring  order
into, you have nothing but chaos.

To  lay  down  a  big  plan  for  Scientologists  and  say,  "This  is   the
organization and this is what we are going to do: steps one, two, three .  .
." is saying that none of you have a right to think or plan. The only  thing
we can do inside Scientology is hold the communication lines of  Scientology
and its service in an orderly state. And we can keep the show on  the  road.
But this is an inside perimeter.

SCIENTOLOGY INFLUENCES ON SOCIETY

How about where Scientology influences things outside?

Do you know if you processed a very small percent  of  the  society,  enough
order would result from their action alone to bring about  sensible  actions
on the part of the society! We are almost talking in terms of mysticism;  it
isn't totally traceable. Where an individual is capable of  bringing  order,
there is order, whether he brings it or not. Where an individual is  capable
of bringing disorder, there is disorder, whether he makes it  disorderly  or
not,

If you clear a few people in a town, a greater order is generated;  we  have
a greater sphere of order occur.  This  is  not  necessarily  because  these
Clears are going around being very active.

Now, leadership is totally the action of bringing order or it is not
leadership.

You hear people speak of the "leader of the  mob."  A  mob  doesn't  have  a
leader. It is a technical truth that a destructive mob or any large mob,  if
called upon to elect  somebody,  normally  elects  somebody  they  can  push
around but who will destroy them.

Here  we  have  the  impulse  of  Man  toward  destruction  unless  he   has
responsible and reliable leadership so he can  turn,  in  his  own  affairs,
toward areas that are being led.

219



RESPONSIBILITY

Where you find irresponsibilities, your society tends to  fall  apart.  Then
people try to push it back together again by making it all equal  or  making
it a welfare state, and things  start  to  go  broke,  inflation  starts  to
happen and the state takes all the responsibility away  from  everybody  and
puts it nowhere.

We are directly in the teeth of such a movement.  We  are  not  a  political
movement, however. Not even vaguely!

We are creating somebody who can live a better life. It is worthwhile  right
in that sphere but we might as well look a little bit further.

We are creating somebody who can take responsibility in his  own  sphere  of
action. We are creating people who can take responsibility for things.

If we create them as fast as the society says the  individual  can  have  no
responsibility, we will keep this  ship  from  going  down  with  all  flags
struck.

WHAT IS LEADERSHIP?

Leadership and clearing are not necessarily in the same basket at all  since
you could have a society totally made up of Clears and  you  would  probably
have no leaders. But where you could only make a sprinkling of  Clears,  you
would undoubtedly be making some leaders. There is some difference there.

An individual who will take responsibility  generally  does.  And  he  keeps
things rolling.

It is all right to say "leadership," but what is it? It is a curious  thing,
but do you know that there have been tomes  written  on  this  subject  that
would crack your back? There are little gimmicks and "you never do this  but
you do that," and tremendous numbers of rules, but  nobody  ever  said  what
leadership was!

If we are going into a society which is all but leaderless,  we  had  better
know what a leader is.

A LEA DER IS SOMEBOD Y WHO CA N A SS UME

RESPONSIBILITY FOR HIS SPHERE OF INFLUENCE.

That is awfully simple, isn't it?

In a Scientology Church, if your Registrar and  Assistant  Registrar  cannot
take responsibility for every reactive bank in the country,  they  don't  do
very much. That  is  an  awful  mouthful:  "Take  responsibility  for  every
reactive bank in the country." And yet that is what it takes!

The next attribute of leadership is

IN THE PRESENCE OF LEADERSHIP,

COMMUNICATION IS POSSIBLE.

It certainly seems funny when you hear about the general who walks down  the
ranks and no private may talk to him, and it is  said  the  general  is  the
"leader" of these privates. Maybe their sergeants are, but not the  general.
Why? Because the privates cannot talk to him. Communication.

A LEADER MUST BE ABLE TO GIVE

AND RECEIVE COMMUNICATION.

220



Of course, that means within  his  ability  to  have  time  enough  to  hear
everything that is said to him but, nevertheless, he can hear quite  a  bit.
And he certainly must have that ability to communicate.

Furthermore,

A LEADER MUST HAVE THE ABILITY TO HAVE

AFFINITY FOR THE PEOPLE HE IS LEADING.

And

A LEADER MUST BE ABLE TO INSPIRE

SOME AFFINITY IN THEM FOR HIM

and

THE GOA LS A ND THINGS HE STA NDS FOR MUST BE Q UITE

REAL AND THEY MUST BE TO SOME DEGREE OBTAINABLE.

The agreement has to be fairly good on the goals.

In addition to that

A LEADER MUST BE CAPABLE OFA REALITY ON THE

PLIGHT OF THE PEOPLE HE IS TR YING TO LEAD.

What is their reality. And recognizing their reality clearly,  he  need  not
necessarily fall into it at all.

One of the great empires of all time,  the  early  Turkish  Empire,  had  in
charge of it a fellow named "Suleiman, the Magnificent." He  had  one  great
fault: he never appointed any task within human possibility. He  got  a  lot
done, but he shattered the whole thing. He never took a  long  look  at,  or
got a reality on, what people could really do. Therefore he fell  away  from
being a leader of that particular nation.

But leaders do not just lead nations. Every family has  to  have  a  leader,
unless it is composed of Clears. Two people can come  to  an  agreement  but
two people cannot plan. There has got to  be  somebody  who,  in  the  final
analysis, makes the last decision. Otherwise that  decision  is  never  made
and all activities undertaken are flimsy for that one reason.

RESPONSIBILITY AND LEADERSHIP

You will find people who are getting Clear or being Clear starting  to  take
leadership in their own zones of action.  They  are  taking  more  and  more
responsibility for what is going on around them. And, taking more  and  more
responsibility, they become more and more leaders.  And,  because  they  are
surrounded by people who are not Clear and because they  are  surrounded  by
people who are in doubt or feel insecure or muddied up or scared, they  will
find out that by their own ability to  communicate,  their  own  ability  to
have affinity, their own concept of reality  and  the  agreement  they  have
with their fellows-by these tokens alone-they will lead. Whether  they  want
to or not.

(A funny part of it is, the more they lead, the less  gold  braid  you  will
see them wearing because gold braid is to identify a leader  who  cannot  be
identified otherwise.)

As we look at this, we look at our next step  up  the  line  which  will  be
influencing   spheres   of   action,   intentionally   or   unintentionally-
intentionally, I hope. And, influencing these spheres of action,  we  should
better and better understand what we are doing. People start turning  to  us
for some idea of what to do or where to go or what to

221



say. It is all right for you to keep saying, "Well, you make up your  mind."
But sooner or later, to get the show on the road you are going  to  have  to
make the decision and say (and the clearer you  get  the  more  willing  you
will be to say it) "Black, white, yes, no."

If we are going to get the show on the road at all, whether we are Clear  or
not-just by  reason  of  what  we  know-we  have  to  take  a  little  wider
responsibility on this Earth today, a little  more  responsibility  for  the
reactive banks of our fellows, a little more responsibility  for  the  state
of order in our immediate vicinities. And if we do that we can win.

It does not seem to me to be a very difficult job.  It  is  a  job  you  are
already well embarked upon.

L. RON HUBBARD

Founder

Issued in HCO PL form from the original 1959 tape lecture No. 5901CO4 by
Midshipman Council International

Accepted by the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY OF CALIFORNIA

BDCSC:LRH:MCI:nc.gm , 1981

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Executive Series 32.]

222



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 17 JANUARY 1982

Remimeo     REISSUED 10 MARCH 1982

Executive Series 34

WHAT IS AN EXECUTIVE?

What is an executive? Is it someone who is important?  Who  gets  more  pay?
Who has authority? Perhaps. But these are not the  real  reasons  that  such
posts exist.

Most successful executives can personally do more work  than  other  people:
their output, quite usually,  is  very  large.  And  though  this  is  often
necessary, that isn't the reason either.

Let us take up the meaning of the word "executive." It is derived  from  the
word "executor" which means "a person who gets something done or  produced."
The word comes from the Latin ex-completely +  sequi-to  follow,  and  means
"to follow through to the end." In other words, to get something DONE!

In any business or production  organization,  its  prosperity  depends  upon
GETTING THINGS DONE!

The executive is there to ensure that  the  people  produce  what  they  are
supposed to produce and in viable quantity and with no overt products.

And that is why an executive is there and that is what he is supposed to
do.

In these druggie days of supersocialism, people can get other ideas  of  why
an executive is there. And, unfortunately,  executives  themselves  can  get
other ideas of their role.

It is an unfortunate fact, whether in a  capitalism  or  a  communism,  that
when an individual human being does not produce, he not only, in  the  short
run or long run, cuts his own throat but he also drags the whole team  down.
A team or organization that does not produce not only loses its  morale  and
pride, it also is committing eventual suicide.

The graveyards of history  are  full  of  "leisure  classes"  that  did  not
produce: The peasants get real tired of  seeing  the  aristocrats  loaf  and
eventually cut off their heads. Modern  times  are  crammed  with  beautiful
experiments of "workers' paradises" where everyone is starving to death.

One sees the TV commercials and reads the paperbacks and they tell him  that
his goal is expensively bought leisure and that the ideal is to lie  beneath
the palm trees and do no  work.  Whole  ideologies  get  built  around  this
beautiful dream of a world in which no single person  ever  lifts  a  finger
and sighs away his days in loafing bliss.

Unfortunately, this does not align with the  facts.  The  unhappiest  little
kids in the world are those who have nothing to do: They whine and mope  and
quarrel and are quite a burden to their mamas. People on  relief  or  living
on social security  are  the  most  miserable  lot,  morale-wise,  one  ever
collided with: They will tell you they would rather have a  job.  The  death
rate  of  men  who  have  retired  is  startling:  Cast  aside  and  feeling
purposeless, no longer producing  anything,  they,  as  insurance  companies
will tell you, mostly pine away and die. In short, people who don't  produce
are very unhappy people.

223



Union agitators, once upon a time, promised all the workers that  in  a  few
decades they would be in clover. Less work and more pay was the slogan.  And
where today is this dream? Failing to produce, union members are  out  there
in their millions, unemployed! And this lack of  production  is  making  the
cost of living so high that even if they did work, they would  have  trouble
finding enough dollar bills to buy a hamburger.

A certain amount of lying in the sun is a good thing. A laborer  should  not
be worked to death.

But all things are best in moderation. The "leisure class" goes to  extremes
of purposeless loafing, the working man produces far  less  than  he's  paid
for and in either case down comes the organization or the country.

A worker-oriented executive is trying to be  liked  by  not  requiring  work
from his organization: what is he actually  accomplishing?  He  is  lowering
their living standards; he is pushing them into  poverty;  if  he  keeps  on
failing to persuade them to produce, he will kill them off.  It  categorizes
as a suppressive act. "Go on, Joe, take the day off." "Oh, you poor  fellow,
you shouldn't work so hard." "Who cares about the  stats,  let's  only  work
from eleven A.M. to noon." "Are you all comfortable as you doze? Oh,  that's
good, snore on." Such a person is surely not an executive: he's an  imposter
with a pistol leveled at the staffs' head. For surely, surely it is  HE  who
has them drawing such low pay and it is HE who will at last,  through  their
tolerated indolence, get them fired. It is HE who will lose the org.  That's
a pretty high price to pay for "being a good fellow."

Holding a post on which he is entrusted to get things DONE, he is a  traitor
to his organization and to his staff.

Of course, there are penalties connected to getting people to produce.  They
are often green and unhatted and need somebody to show  them  where  to  put
what when. They are often bewildered and don't understand why  these  papers
have to go in the right folders. And when one tries to get them to  do  some
work, they sometimes snarl back or walk off and won't  play  pool  with  one
anymore.

But if one thinks that by taking it easy on staff he will  make  points,  an
executive is VERY mistaken. Usually such an executive is actually  despised.
Down deep the staff knows what he SHOULD be  doing  with  them  and  if  he,
having the title, doesn't do it, they see him as a fake.

It is interesting that staffs respect competent executives who get  the  job
done. They respect the one that makes them work and they trust him.

It is a maxim that crews, staffs and employees respect only those  in  power
who do their jobs and get them to  do  theirs.  Oh,  yes,  they  will  elect
people who tell them they don't have to work. But it's interesting that  the
first ones they  blame  when  things  go  wrong  are  these  worker-oriented
softies: in the chaos of their wake, the next one people will support  is  a
tough, strong one who knows his business.

The only executives that staffs and crews really respect are those  who  get
them to produce and get the job done.

Look at Carter, the past unlamented president.  Although  he  talked  a  lot
about leadership, although he was the darling of the  working  man  and  all
that, in office he was so wishy-washy, soft and incompetent-everybody's pal-
that they eventually  threw  him  out  with  a  landslide  victory  for  his
opponent, a very tough talking man who was actually anti-socialist.

However one  tries  to  coat  the  pill,  there  is  no  substitute,  in  an
executive, for the ability to get the crew to produce.

The fire-breathing product officer will be followed and supported  when  the
wishy-washy old pal guy will be stepped all over in the  rush  to  follow  a
real leader.

224



Across the world, looking at organizations, one can spot every  company  and
org which has executives who do not get their crews to produce.  Such  areas
loom up like danger flags of trouble. Although their executives might  think
they are being good fellows, loafingly cheered by  all,  the  fact  is  that
their crews, behind their backs, despise them, the public regards them  with
contempt and theupper management echelons look at those  loafing  stats  and
put the names of those  executives  in  a  little  black  book  for  soonest
firing.

It is not hard to detect a happy, cheerful org: its stats are up. And it  is
not hard to detect executives  who  are  NOT  making  their  crews  produce:
there's lots of conflict and trouble in the place and their stats are down.

Management looks everywhere for  executives  who  can  get  their  crews  to
really produce. And oddly enough, so do the crews. If you don't believe  it,
try it.

L. RON HUBBARD

Founder

Adopted as official

Church policy

by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dm.gm Copyright C) 1982

225



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 MARCH 1982

Remimeo

Finance Series 31

Marketing Series 19

Executive Series 35

EXECUTIVE SUCCESS

"The whole story of marketing is told in just a few words:

ONE FINDS OR STRENGTHENS OR CREATES A DEMAND.

"The whole story of economics is told in a few words:

ONE SUPPLIES OR DOES NOT SUPPLY A DEMAND AND GETS ADEQUATELY PAID OR DOES
NOT GET PAID FOR IT.

"The speed with which one can collect information, debug, write immediate
bright, applicable, doable programs or evaluations on each area that will
handle marketing, economics, delivery and collection and, above all, the
speed with which one can get out letters, despatches and telexes based on
the programs and get real dones on them back determines the volume of
income in any given time period.

"And that's the full essence of executive success-"

L. RON HUBBARD

Founder

Assisted by

Operations Chief

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:OC:kjm.gm

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Executive Series 33.]

226



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 29 DECEMBER 1982R

Remimeo     REVISED 30 JULY 1983

All Orgs

All Executives   (Revised to show changes which have been

All Management

      Personnel  made in the Executive Status levels.)

(Revisions in this type style)

                               Org Series 64R

                            Executive Series 36R

                               Esto Series 54R

                          Admin Know-How Series 44R

THE TOOLS OF MANAGEMENT

(R efs:

HCO PL 28 July 72      Esto Series 26

      Executive Series 16

      Org Series 32

      ESTABLISHING - HOLDING

      THE FORM OF THE ORG

HCO PL I July 82 Admin Know-How Series 41

      MANAGEMENT COORDINATION

HCO PL I I Apr. 70     THIRD DYNAMIC TECH)

There is a simplicity to managing effectively. It begins with the basics  of
management.

Although it may appear so to some, successful management  is  not  a  highly
complicated, esoteric activity. But, just as an auditor or a C/S  must  know
and be able to use the exact tools of first dynamic tech in  handling  cases
in order to achieve exact and standard results on a  one-for-one  basis,  so
must an executive or manager know and be able to  use  the  exact  tools  of
third dynamic tech in  handling  groups  to  achieve  successful  and  exact
results in every instance.

Within the wealth of data on third dynamic  tech  contained  in  HCO  Policy
Letters, the OEC Volumes and tapes and  books  on  the  subject,  there  are
certain definite, specific tools a manager uses.  These  are  the  tools  of
management.

The difference between brilliant management and mediocre or  no  management,
at any level, lies in

1.    Knowing what the tools of management are, and

2.    Knowing how to use them.

Many people are not aware that, like a carpenter or  any  other  workman,  a
manager uses specific and exact tools. Thus, we see people  here  and  there
who are doing the equivalent of using the handle of a chisel to drive  nails
into wet concrete.

It is a common fault with inexpert workmen to find them  using  their  tools
wrongly or not using them  at  all.  They  make  a  breakthrough  when  they
discover what the specific tools are for.

227



One can see this in people who  can't  mix  sound  or  can't  become  mixing
engineers. They sit with all these knobs in front of  them,  reach  out  and
grab this knob or that one, hoping hopefully something will  happen  to  the
sound. Yet every component they have in front of them is an  exact  tool  to
do an exact thing with sound!

There are a lot of comparisons one could make, but the point is that  people
in management positions have precise tools available to  them  in  Dianetics
and Scientology which happen to be far better  tools  than  have  ever  been
available on the planet.

One can have very good people on management posts who  still  can  drown  if
they don't know and put to use the basic management tools.

But without these being specified as exact tools,  one  might  not  see  the
simplicity of it.

MANAGEMENT ECHELONS

Operating as it does into an expanding scene,  Scientology  has  grown  into
the need for and use of various echelons of management.

In orgs, for some time we have had division heads and  above  them  we  have
the Executive Council, headed by the CO or ED of the org.

Above the level of service orgs we have middle management  and  still  above
that we have the senior executive strata of management  And  each  of  these
echelons must know the tools of management and how to use them-

What has brought this about is  the  rapid  expansion  of  Scientology  into
wider zones of responsibility and therefore increased responsibility with  a
resultant  increase  in  traffic.  This  naturally  has  to  be  handled  by
increasing efficiency. What it has done, in effect, is  push  some  up  from
lower  level  management  status   to   upper   level   management   status,
necessarily. Without realizing it, some  executives  have  been  climbing  a
status stairs in terms of influence and zones of control. And  they  can  go
only so high without being terribly precise in their  use  of  tools.  After
that, without this acquired precision, they drown.

The OEC (Org  Executive  Course)  and  the  FEBC  (Flag  Executive  Briefing
Course) have long been established as the  essential  courses  for  training
executives at service org level and above.

These courses, and the OEC Volumes upon which  they  are  based,  teach  the
form of the org and how to use the parts and posts and functions that go  to
make up the whole. They  give  us  executives  who  know  how  to  correctly
utilize staff and their assigned posts and duties. We call it  "knowing  how
to play the piano"-it's a matter of knowing what key to hit when  and  which
keys to use in combination to produce a desired  result.  (Ref-  HCO  PL  28
July 72, ESTABLISHING - HOLDING THE FORM OF THE ORG.) In other  words,  it's
a matter of knowing and using one's tools. The OEC and  FEBC  courses  teach
this data and much, much more.

While at this writing there are numerous OEC and FEBC grads and more in  the
making, thousands more  will  be  needed  to  handle  the  current  rate  of
expansion.

Meanwhile an executive at any level and whatever his training needs to  know
and use his management tools NOW if he is to function at all.

A div head must "know how to play the piano" within his division.

The posts of CO or ED, Chief Officer, Supercargo, Org Exec Sec and HCO  Exec
Sec require executives who are capable of "playing  the  piano"  across  the
divisions of  the  entire  org  and  using  hats  and  posts  and  functions
correctly in order to achieve immediate production from the org as a whole.

228



At middle management one is handling not one function nor only one  org  but
many orgs and their functions, which  requires  "knowing  how  to  play  the
piano" at that level.

And at the senior executive strata of management,  we  get  into  the  vital
need for "knowing how to play the piano" across a much wider  sphere,  using
the full scope of management tools and  using  them  with  high  skill.  One
might be using the same tools as lower stratas of management  but  a  higher
level of expertise is required as one's planning, decisions and actions  are
influencing far, far broader areas.

The obvious answer to all of this is an  executive  training  program  which
instanthats executives on the fundamental tools of management  and  provides
Management Status Checksheets through which an executive or  manager  raises
his status by BECOMING MORE AND MORE EXPERT WITH THESE  AND  AN  EVEN  WIDER
RANGE OF TOOLS. And such a program has now been developed!

MANAGEMENT STATUS CHECKSHEETS

The new executive training program consists of three status levels.

These levels are to be covered in a series of Management Status
Checksheets.

Working up through these status levels, a  manager  not  only  becomes  more
proficient in handling an org, any  org,  but  becomes  fully  certified  to
operate at middle or senior echelons of management.

1.    EXECUTIVE STATUS ONE: Instant-hats an  exec  on  the  most  basic  and
fundamental tools of management. At this level, the person is simply  thrown
on post, the basic management tools are put into his hands via a brief, rat-
a-tat-tat Executive Status  One  Checksheet  (with  prerequisites  of  Staff
Status Two and the Basic Study Manual or Student Hat), and he then  gets  on
with it

Some of these basic tools are the  Admin  Scale,  target  policy,  strategic
planning and programing, the use of org lines  and  terminals,  org  boards,
despatches  and  telexes,  statistics  and  graphs,  conditions,  hats   and
hatting, importance of files, personnel folders, ethics folders,  etc.  Each
one is a specific tool.

(Note: Even an OEC or FEBC grad would do his Exec Status One level, as  when
he comes out of an FEBC, all in the clouds, the Exec  Status  One  level  is
needed to bring him back down to Earth and tell him het dealing  with  tools
which are very finite tools.)

2.    EXECUTIVE STATUS TWO: For one to be certified at this level, one must
have

a.    Completed the OEC;

b.    Done the Exec Status Two Checksheet;

C.    Have an adequate production record.

The Exec Status Two course covers such tools as  survey  tech,  PR,  pilots,
general  economics,  finance  systems,  cost  accounting,  control   through
networks, admin indicators,  morale,  legal,  goodwill,  exchange,  missions
(action missions), economical management and managing by dynamics.

3.    EXECUTIVE STATUS THREE: For one to be certified at this level, he
must ha ve

a.    Completed the FEBQ

b.    Done the Exec Status Three Checksheet;

C.    Have a proven production record.

229



The Exec Status Three course takes up each of the eleven points  upon  which
the senior executive strata operates and trains the person in each of  these
as a specialist action.

Once these Executive Status  Checksheets  are  issued,  middle  and  central
management personnel should not draw full pay or  be  bonus  eligible  until
they have gotten up through Executive Status Three,  as  they  will  not  be
operating effectively until they have done this.

With the release of the  new  Management  Status  Checksheets,  precise  and
gradient  training  levels  for  all  echelons  of  management  will   exist
comparable to the precise and gradient  training  levels  required  for  all
echelons of technical delivery,

Quite an unbeatable combination!

One winds up with managers fully familiar with  their  exact  tools,  having
the one-two-three of management tech at their fingertips, and  "knowing  how
to play the piano" effectively across an org, a continent, a planet!

So the answer to current expansion is an action which  is  geared  to  bring
about even further expansion. And that is the only way to go!

It begins with the basic tools of management.

L. RON HUBBARD

Founder

Adopted as official

CSI:LRH:pm.iw.gm Church policy by the

, 1983

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

[Note: This issue was added just as the book was about to go  to  press  and
after the subject index was completely  typeset.  Thus  index  entries  from
this  issue  do  not  appear  in  the  main  subject   index.   However,   a
supplementary subject index has been added on page 731.1

230



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinstea

      HCO POLICY LETTER OF 7 A

Remimeo

All Staff

All PRs

Div 6's

Class IV Orgs

Saint Hills

AOs

FSO

Missions    Executive Series 37

PR Series 48

GOODWILL

References:

HCO PL 10 Sept. 82     Finance Series 36

            EXCHANGE, ORG INCOME AND

            STAFF PAY

HCO PL 28 Feb. 65      DELIVER

HCO PL 26 May 61 Keeping Scientology Working Series 2

      Reiss. 30.8.80   A MESSAGE TO THE EXECUTIVE

            SECRETARIES AND ALL ORG STAFF

            QUALITY COUNTS

HCO PL 21 Nov. 68      SENIOR POLICY

HCO PL 2 Sept. 70      FIRST POLICY

HCO PL 17 June 69      THEORGIMAGE

HCO PL 24 Aug. 65 11   CLEANLINESS OF QUARTERS

            AND STAFF-IMPROVE OUR IMAGE

HCO PL I I Dec. 69     APPEARANCES IN PUBLIC DIVS

The amount of public demand for service and  your  future  income  are  both
largely dependent upon GOODWILL.

Goodwill is  the  reputation  an  organization  has  with  its  publics  for
integrity,  good  service,  prompt  bills  paying,  high  quality  delivery,
friendliness, etc.

Excellent technical delivery is what generates a blaze of  goodwill  and  PR
that spreads by word of mouth like wildfire.

Events, open houses, tours, film or slide presentations-all such  activities
serve to generate public interest and goodwill.

Training and processing are commodities that are  far,  far  more  desirable
than anything else this world has to offer.  And  when  they  are  delivered
with superlative technical  application  with  the  out-of-this-world  gains
that are possible, you would drum up so much public support that  you  would
soon have an army of ardent supporters outside  your  door,  no  matter  how
much the psychs and press railed about us (even if they are still around  to
do so).

PR

Good technical  delivery  makes  it  possible  to  have  good  "PR"  (public
relations). By definition, PR is the art of making good  works  well  known.
It  is  effective  cause  well  demonstrated.  When  technical  is  creating
miracles on a regular basis, it is simply a matter of  making  this  broadly
known. Your public will even do it for you on a "word of mouth" basis.

231



WORD OF MOUTH

Almost all Scientology prospects come from people who have had  service  who
are urging other people to have service or read books on the  subject.  That
is called WORD OF MOUTH. Word of mouth comes from having numerous people  in
the field who are happy and cheerful and satisfied with  their  service  and
who are active in the fields of Dianetics and Scientology.  There  is  where
the bulk of your income comes from.

Word of mouth is a superior form of advertising to newspaper, radio  and  TV
ads.  People  tend  to  believe  their  friends.  They  are   skeptical   of
advertising. "It worked for Joe, it will  probably  work  for  me"  is  what
people think. And in Scientology they are correct.

When word of mouth and PR have been in neglect, it will be because  the  org
has not worked on the basis of goodwill and has let its tech go out (and  is
therefore costing itself a mint). This  applies  to  all  organizations  and
missions all the way up to the FSO and includes other units and networks  as
well.

The "word," whether good or bad, spreads like wildfire.  That's  why  you'll
never see anything empty out quite  as  fast  as  an  Academy  that  is  run
nonstandardly; or conversely, anything fill  up  as  quickly  as  a  tightly
scheduled, smartly run, in-tech Academy.

SUMMARY

Other factors also enter in  where  goodwill,  word  of  mouth  and  PR  are
concerned. The public, in dealing with the  business  world,  has  grown  to
expect clean, pleasant quarters and smart, friendly service.

There is nothing as destructive  of  goodwill  as  dirty  quarters,  sloppy,
"help yourself" service and an unfriendly staff.

Clean  quarters,  professional  conduct,  good  service  and  above  all,  a
friendly staff, all go a long way to promoting goodwill.

It is not only the job of the Public Relations Officer to  secure  goodwill.
It is part of EVERY staff member's  job  to  help  build  goodwill  for  the
organization by doing those things that will cause the public to think  well
of it, and by refraining from doing those things that would  result  in  bad
PR for the organization.

Above all, it is every staff member's primary concern that the  organization
is delivering the best tech quality possible. This point IN  is  the  source
of goodwill.

You must take a hand in creating goodwill. It is YOUR org!

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:fa.iw.gm

232



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 AUGUST 1979

Remimeo

                             Marketing Series I

                                PR Series 34

DIANETICS AND SCIENTOLOGY ARE NEW

People who have been in Dianetics and Scientology for years see it as a  way
of life. They accept it.

But to listen to them you'd think Dianetics and Scientology had been  around
for the last 50 billion years at least!

They have lost their viewpoint of the newness of Dianetics and Scientology.

They do not realize that Dianetics and Scientology are new news to the  bulk
of the world's population.

They do not realize that the  oldest  Dianetics  or  Scientology  books  are
brand new books to the bulk of humanity!

Before 1949 Man's knowledge of himself, the spirit and the mind was a  black
barbarism. Look over the psychology, psychiatric and religious texts of  the
'30s and '40s. Man could not change. He was a degraded animal. The  way  you
applied therapy was dreams or drugs, ice picks and ice baths.

Only Dianetics and Scientology began the road out of that witch pit.

But the witch pit is still there for almost all the world!

Because Scientologists number millions, Scientologists do not  look  at  the
billions to whom Dianetics and Scientology are BRAND NEW!

Those billions are still in the witch pit. They are still boiling.

Dianetics and Scientology are NEW NEWS.

We are the only road out.

Just because YOU are making it is no reason the world will. (If  you  aren't
making it in auditing, if you are a "failed case," get  yourself  a  repair-
Scientology is the only approach ever developed  that  repairs  itself  too!
And that is also new news!)

Let them in on the new news!

Cultures change slowly. It took centuries for Man to  realize  that  slavery
was wrong and could be changed. Cultures don't shift overnight.

So write and act like you have new news.

Recover your viewpoint by comparing what you now know  to  what  they  still
don't know in even "modern" institutions.

You have new news. And Dianetics and Scientology are  good  news.  In  fact,
the best news Man has ever had. Don't sit on it!

L. RON HUBBARD

Founder

LRH:ab.gal.gm

233



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I SEPTEMBER 1979

Remimeo

Marketing Series 2

PR Series 35

MARKETING, PROMOTION AND DISSEMINATION

DEFINED

MARKETING: The conceiving  and  packaging  and  the  moving  of  a  specific
product into public hands. It means to prepare and take to and place on  the
market in such a way as to obtain maximum potential and recompense.

PROMOTION: To make  something  well  known  and  well  thought  of.  In  our
activities it means to send something out that will cause people to  respond
either in person or by their written order or reply to the end  of  applying
Dianetics or Scientology  service  to  or  through  the  person  or  selling
Dianetics or Scientology commodities, all to the benefit of the  person  and
the solvency of the org.

Promotion is the art of offering what will  be  responded  to.  It  consists
only of what to offer and how to offer it that will be responded to.

By promotion in a Scientology organization we  mean  reach  the  public  and
create want.

DISSEMINATION: Spreading  or  scattering  broadly.  By  dissemination  in  a
Scientology  organization  we  mean  making  broadly  known  the  materials,
services  and  results  of  Dianetics   and   Scientology   through   books,
promotional  material,  letters,  films  or  other  media   or   activities,
including word of mouth.

L. RON HUBBARD

Founder

LRH:nc.gm

234



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I JANUARY 1977RA

Remimeo     REVISED 29 AUGUST 1979

(Revisions in this type style)

(Re-revised 29 August 1979 to include Marketing Purpose and reissued as
part of the Marketing Series.)

Marketing Series 3

PR Series 33R

MARKETING HAT

The Marketing Bureau motto is CREATE WANT!

The PURPOSE of marketing is to CREATE WANT and to SELL SOMETHING.

That includes selling something that can be delivered.

The keynotes of any marketing action are

1. Search around and find what there is to sell. Get very full lists.

2. Pick one item.

3. Find out all about it.

4. Find any past history of it or any similar item in sales.

5. Survey the item on a variety of publics to find out

a.    Which public will buy it

b.    What that public wants, needs or would demand

C.    Any past surveys on it or a similar item

d.    Do a positioning survey per HCO PL 30 Jan. 1979, Reissued 30 Aug.

1979, Marketing Series 5, PR Series 30, POSITIONING, PHILOSOPHIC

THEORY

6R. A. Use the survey results to position (particularly 5d).

B.    Use the remaining survey results to write the copy, keeping in mind
that your positioning dominates it.

7R.   Write a sales campaign including what want  it  fulfills  (by  survey)
and what the key buttons are for that public  chosen  (by  survey).  Include
fliers, info sheets, ads, material for salesmen  of  it,  order  forms.  Use
graphic design which forwards the positioning and  use  the  positioning  in
the surveys in all issues regarding the campaign. "The Basics  of  Marketing
Stable Data" has to be applied heavily at this point to all issues, ads  and
campaigns. (See HCO PL 7 Feb. 1979R, Rev. 3 Sept 1979, Marketing  Series  7,
PR Series 31R, THE BASICS OF MARKETING.)

8. Design or get designed and laid out the items in the sales campaign.

9. Get them printed (or placed, when ads) according to the design.

235



10.   Write a full program for the item's release whether new or old.

11.   Assure a supply of the item can be gotten for selling at the points
it will be sold.

12.   Release the campaign.

13.   Adjust and handle any bugs in any points above.

14.   Arrange a continuation of the campaign so that it is not just a "one-
shot" action but will go on and on, such as distribution and continued
issue of the literature.

15.   Keep a visible record of the successes of the campaign week to week
and be prepared to correct, review or restart the campaign whenever it
falters.

16.   While working on the above, during the wait periods, pick another
item and go through all steps for it as above.

17.   Keep each item's checklist (as per this PL) in a folder for that  item
which contains all marketing actions. All pertinent papers,  work  and  work
copies to be filed in this folder with all results as they continue to  come
in.

18.   Review folders from time to time to evaluate them and restart them or
reinforce them.

19.   Do not leave any stone unturned to find old or new items that could
be marketed.

20.   Do not fall for needing new items only or pushing  only  the  new  and
realize that volume selling of everything you have  is  the  way  to  market
successfully, and that you have to keep on selling anything in order to  get
a large constant gross.

21.   Be a high-volume success!

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:lf.jk.gal.gm , 1979

236



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste

      HCO POLICY LETTER OF 2 SEP

Remimeo

All Staff

Marketing Hats

Dirs Promo

PRs

Div 6 Marketing Series 4

PR Series 36

SURVEYS ARE THE KEY TO STATS

(From LRH ED 161 INT, 18 Dec. 1971, same title.)

References:

HCO PL 13 Aug. 70      PR Series 2

      Issue 11   THE MISSING INGREDIENT

HCO PL 13 Aug. 70      PR Series 3

      Issue III  WRONG PUBLICS

HCO PL 27 Nov. 71      Executive Series 3

            MONEY

HCO PL 3 Dec. 71 Executive Series 4

            EXCHANGE

HCO PL 2 Jun. 71 PR Series 10

      Issue II   BREAKTHROUGH, PR AND PRODUCTION,

            TONE SCALE SURVEYS

HCOB 25Sept.71RB TONE SCALE IN FULL

HCOB 26 Oct. 70  OBNOSIS AND THE TONE SCALE

We can do too much.

By just flying ruds on people we could cure what often passes as insanity.

By Word Clearing we could change the whole educational picture.

We could handle the whole problem of psychosomatic (mentally caused)
physical illness.

We could lower industrial absenteeism from illness.

We are the only people who can cure drugs.

We could do a thousand other things with our tech.

That makes us unbelievable. Nobody on the whole track could ever do these
things.

So when we broadly offer everything we can do. it is too much.

SURVEYS

To find out what people want or will accept or will believe, one does
SURVEYS.

HCO PL 2 June 71, Issue II, PR Series 10, BREAKTHROUGH, PR AND PRODUCTION,
TONE SCALE SURVEYS, tells you how to phrase survey questions.

It is not hard to do surveys.

237



When you have one done, the data should be USED. The  real  fault  in  doing
surveys is not using the result in promotion.

EXCHANGE

You and your org are involved in exchanging valuables for valuables.

You offer a valuable service in return for valuable money.

(See HCO PL 27 Nov. 71, Executive Series 3, MONEY and  HCO  PL  3  Dec.  71,
Executive Series 4, EXCHANGE for further information on what exchange is.)

So in surveying, you are in actual fact seeking to know  WHAT  SERVICE  THAT
YOU CAN DO WILL PEOPLE CONSIDER VALUABLE ENOUGH TO GIVE MONEY  OR  VALUABLES
FOR.

STATS

When you have this answer, you have the answer to prosperity stats.

PROMOTION

Promo done without survey,  magazine  ads  without  survey,  flyers  without
survey, you are going it blind.

It's pathetic to realize that you might be within an eighth of  an  inch  of
the right offering without making it. Sort of like  digging  two  feet  away
from the gold vein and getting an empty hole when you could have  a  million
dollar mine.

Working without surveys, you could spend thousands a month on promotion  and
lose it all.

Or working WITH surveys, you could spend  hundreds  on  promotion  and  make
hundreds of thousands.

It all depends on knowing how to do surveys, doing them,  really  tabulating
the results and USING what you find.

INVOICES

You can even do a survey out of invoices. You can see what book  sells  best
lately and then look into the book to see what it seems to promise and  then
promote that; you do that and you'd increase your delivery volume.

Or you could find the popular book by invoices, find  who'd  bought  it  and
survey the buyers as to what they would consider valuable in it and  promote
that service, and you'd increase delivery sales.

You could review invoices to tabulate what part of the town  or  state  your
customers came from and saturate (fill up) the area with promo and  increase
your delivery sales.

You could see by invoice survey what they bought and do a flyer on that  and
use that flyer to saturate that area.

Invoices are very useful. It  is  a  must  to  set  up  an  invoice-counting
project to see what to put in the next bulk mailing.

SUCCESS STORIES

Taking all back success stories, particularly from an affluent  period,  and
finding  out  what  the  people  were  most  appreciative  about  and   then
converting that to a training or processing offer and using it for promo  is
a vital action. Not to quote the

238



success stories-we do that and it's fine. But to SURVEY the success  stories
to find out what to offer.

EXAMINER REPORTS

A survey of past Examiner Reports for exam comments after  certain  specific
actions or courses have been completed is very revealing.

This gives you what you can offer with confidence.

It gives you a promotion base on which to build a campaign.

PAST PROMOTION

One also surveys past promotion. What gave the largest percent of response?

Promo which returned I I% or 16% is phenomenal.

You judge the accuracy of your survey by the  success  of  the  promo  based
upon it. If the success is not great you resurvey.

SATURATION

When you are serving only the same people  all  the  time,  you  can  hit  a
saturation point (all filled up) by never offering their next action.

This next action requires a survey.

And new people must be fed in.

An example is an AO that got  fat  selling  OT  VII  to  old  customers  and
neglected promotion to get new customers and eventually saw its stats  begin
to sink.

So surveys of old customers and new customers  have  to  be  done  and  each
promoted to.

Thus, you have different PUBLICS which have to be  surveyed.  In  this  case
"old public" and "new public."  Each  requires  a  different  survey  and  a
different survey action and different promotion.

TOTAL EFFECT

Desperation often leads one to try for a TOTAL EFFECT.  (See  Effect  Scales
in HCOB 18 Sept. 67,  corrected  4  Apr.  74,  "Scales,"  and  in  the  book
Scientology 0-8.)

One has sometimes seen a student  trying  to  push  home  a  full  Dianetics
Course in fifteen minutes to his non-Scientology friends.

His R is wrong. He sometimes doesn't even get an ack in exchange!

If, perhaps, he demonstrated a Touch Assist expertly, explaining body  comm,
they would look on him as a wizard!

Some student can make his whole audience depart by talking about past  lives
and OT states when if he explained that people often led sad lives  after  a
family member died he might have an awed audience.

But to be sure how to have an awed audience, even the student would have  to
66survey" a little bit. He'd have to ask them what they  wanted  handled  or
something and then talk about that. In that  way  he  would  be  certain  of
attention.

A student or an org can get desperate and try for a total effect by telling
or

239



offering everything they know-and fly right out of the reality of their
audience.

MISSION

You as a Scientologist have a certain mission toward the world.

It is not a very civilized world.

You can bring it friendliness, peace and understanding,

How do you find an entrance point into this unfriendliness and lack of
love?

The answer is surveys.

Hereinafter, issue authority must be given only when promotion can cite
what survey it has based this upon.

Survey, lack of, is the weak link in all promotion.

To better your stats you must get this in.

Failure to survey can cost you thousands in ineffective promo and tens of
thousands in lost stats.

So the word is

SURVEY!

KNOW BEFORE YOU PROMOTE!

L. RON HUBBARD

Founder

LRH:nc.gm

240



HUBBARD COMMUNICATIONS OFFICE

Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 30 JANUARY 1979

PRs   CORRECTED AND REISSUED 9 FEBRUARY 1979

Marketing Pers   RESTORED 28 JULY 1983

Copywriters

Artists

Designers

Lecturers

Div 6 (Cancels HCO PL 30 Jan. 1979R, revised 16 June

      1980, POSITIONING, PHILOSOPHIC THEORY.

      That issue was illegally revised by another. The

      original LRH version issued on 30 Jan. 1979 was

      reissued 9 Feb. 1979 to correct the address in

      the second paragraph. That original version is

      hereby restored.)

Marketing Series 5

PR Series 30

POSITIONING, PHILOSOPHIC THEORY

Although Madison Avenue has used "POSITIONING" for some years,  it  has  not
fully  understood   the   actual   philosophical   background   that   makes
"POSITIONING" work.

There is an excellent booklet called The Positioning Era  put  out  by  Ries
Capiello Colwell, Inc., 1212 Avenue of the Americas, New York,  N.Y.  10036.
Copies of it are probably  available  from  the  company  or  the  Marketing
Bureau on Flag or Publications Organization US. It is an excellent  booklet.
It does not, however, give the philosophical background which, probably,  is
not generally known. Probably it was never discovered. I had to work it  out
myself.

Buckminster Fuller, an engineer and architect of some renown, says  that  it
is a two-terminal universe. In other words, the universe is built by twos.

In electricity you have heard of two "poles"-the positive and the  negative.
You only get movement or generated energy in  the  presence  of  two  poles.
That is the principle of the electric motor,  why  current  flows  from  one
point to another point and so forth. There are  four  possible  arrangements
of these two poles: they are positivenegative, positive-positive,  negative-
negative and negative-positive.

In the reactive bank a positive and a  negative,  when  occurring  together,
tend to bring about a stuck point in time.  You  sometimes  see  this  in  a
marriage where the husband is jolly and carefree and the  wife  is  sad  and
morose. One wonders why these people would ever stay together. The  fact  of
the case is, due to reactivity of the mind, they can't do anything else,

Despite propaganda that "one should live for oneself  alone,"  the  fact  is
that it is very difficult and most  disappointing  to  do  so.  Life  really
can't be lived on the first dynamic alone. If you don't  believe  it  go  on
out in space 300 miles and sit there for a while, you won't like  it.  You'd
be calling Houston every few minutes.

241



In any event, one could say that life was  at  least  a  two-pole  activity.
Actually, it is not only always just two but certainly it doesn't  go  along
well with just one and goes best with several, ask any popular person.

Fast communication is most easily done by comparisons. When one  asks  "What
is the book like?", he really is not trying  to  get  you  to  describe  the
book. He means that he wants some comparison. He will be happiest  with  the
answer if he is told  that  it  is  like  another  book  with  which  he  is
familiar. It would take you a lot longer and  involve  you  in  a  lot  more
arguments if you  just  tried  to  describe  the  book  to  him  instead  of
comparing.

"What does it taste like?" is satisfactorily answered, "Like  candy."  That,
if it has some shadow of truth and accuracy,  is  a  perfectly  satisfactory
answer to the other person.

So we get a law which is this:

THE UNFAMILIAR IS RAPIDLY INTRODUCED OR COMMUNICATED BY COMPARING  IT  TO  A
FAMILIAR.

Joe knows nothing about practice boxing gloves and there are none  there  to
show him and he will be fairly satisfied if he is given a  familiar  object,
pillows, to compare them to,

Thus, one can achieve a very rapid communication by observing the following

law:

ONE CAN ACHIEVE THE APPARENCY OF FAMILIARITY, EVEN WHEN  THE  PERSON  HE  IS
COMMUNICATING TO HAS NO KNOWLEDGE OF THE SUBJECT OF COMMUNICATION,  WHEN  HE
ASSOCIATES IT IN THE MIND OF THE OTHER WITH SOMETHING WITH WHICH  THE  OTHER
IS FAMILIAR.

Positioning takes advantage of a fact that one can compare the thing  he  is
trying to get the other person to understand with desirable  or  undesirable
objects. Desirable objects  are  now  more  commonly  used  in  advertising.
Undesirable objects are more commonly used in propaganda. By comparing  this
unfamiliar thing or the thing he wants to sell to another  desirable  object
or by comparing something he  wants  people  to  detest  to  an  undesirable
thing, he can achieve a rapid communication and comparison.

Further advantage is taken of  the  fact  that  one  can  position  above  a
familiar object, with a familiar object, below a familiar  object,  at,  to,
against and away  from  a  familiar  object.  This  opens  the  door  to  an
opportunity to  establish  an  opinion  of  the  thing  one  is  seeking  to
communicate. You might call it an "instant" opinion.

For example, we know that  an  astronaut  is  a  familiar,  highly  regarded
being. Thus, we position a product above, with, below, at,  to,  against  or
away from an astronaut.

We know that people think angels are good, sweet and kind,  so  we  position
another something above, with, below, at, to, against or away from angels.

We know people loathe psychiatry,  so  we  communicate  something  as  being
loathsome as saying it is below (worse than) psychiatry. We could also  make
people think something was good by saying it  was  against  psychiatry,  bad
because it would  bring  them  to  psychiatry,  or  awful  because  it  used
psychiatrists (like the tax people).

242



A common use of positioning in advertising is to take a  product  which,  by
reason of advertising, is familiar to the public and is regarded by them  as
the leader in the field and then  positioning  a  new,  untried,  unfamiliar
product above it, with it, or just below it. Thus the new  product  gains  a
sudden spurt in sales by being compared to the leader.

In fact, in the field of advertising  this  has  been  the  primary  use  of
positioning, probably because no one had carried the idea back  to  a  point
of formulating the actual laws of it  and  thus  broadening  its  use.  They
thought in advertising, evidently, that the  basic  theory  of  it  was  the
"pecking order of hens" which means  that  the  whole  barnyard  is  usually
found to have a top hen and a bottom hen and they peck each  other  in  that
order.

Apparently, from talking to ad guys, they  thought  that  by  putting  their
products in the pecking order  against  the  top  product  they  made  their
product higher or just with or just below  the  top  hen.  That's  what  the
advertising  people   get   for   associating   with   such   "experts"   as
psychologists.

POSITIONING can be seen to have  far,  far  broader  uses  than  "cola"  and
"uncola" ads when you study the above basic PL  data.  The  horizon  becomes
very, very vast  and  all  around  because  with  it  you  can  attain  fast
communication about the unfamiliar and can formulate "instant opinion."

When used in advertising, posters, write-ups, PR, propaganda, or any one  of
many  activities,  forceful  and  effective  positioning  requires   certain
requisites:

1. The selection and identification of the public or person  one  is  trying
to cause to have an instant opinion, desire or repugnance.

2. Work out whether you are trying to do a good or bad relationship  to  the
familiar object you will find  and  what  kind  of  an  opinion,  desire  or
repugnance.

3. Survey that public with questions which do not  even  mention  the  thing
you are eventually going to use the survey for to find  what  they  consider
wonderful, popular, useful, etc., etc., or awful, terrible, etc.,  etc.  You
can survey for attitudes, objects, professions or  anything  else  you  have
chosen that will even dimly compare with something you are going to use  the
survey to push.

4. From the majority answer of this survey, choose  an  object,  profession,
attitude, etc., etc., that they think is great or awful or whatever.

5. Get a bright idea of  how  to  compare  the  thing  you  were  trying  to
communicate to the familiar object, attitude, profession,  etc.,  that  they
all firmly have an opinion on.

Do as many other surveys as you like of this same public you are  trying  to
reach to get their attitudes in general or attitudes about  what  you  found
or even their general likes  and  dislikes,  vocabulary,  habits  of  dress,
etc., so you can write copy and draw pictures that seem to be them  or  what
they would say or do.

Do your drawings and write your copy.

If you have been clever, you will succeed in  communicating  forcefully  and
effectively and instantly at a glance something that was very unfamiliar  to
them previously.

All the other rules of copywriting, art and design, impingement,  etc.,  are
dovetailed into this to make more of it.

243



By doing a lot of practice with this and drill, drill, drill, drill and
getting experienced with it, you will suddenly find yourself able to use
this in PR, advertising, marketing, and communication in general with an
impact that will be very effective and very startling.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm , 1983

244



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 25 JUNE 1978

Org Staffis REISSUED 31 AUGUST 1979

Div 6s

Registrars  (BPL of 25 June 1978 now issued as

FSMs  an HCO PL under same date and title.)

Missions

Groups

      (Reissued 31 August 1979 as part of

      the Marketing Series.)

      Marketipg Series 6

      PR Series 32

COME-ON DISSEMINATION

A recent look at dissemination revealed the following data:

DISSEMINATION BY MEANS OF PURVEYING A LITTLE PIECE OR SEVERAL LITTLE  PIECES
OF TECH (to answer questions, show how a person's problem could be  handled,
show how the mind works, etc.) ENDS THE CYCLE AND TERMINATES THE REACH.

DISSEMINATION BY MEANS OF "COME-ON"  STRENGTHENS  THE  REACH  AND  LITERALLY
PULLS THE PERSON IN.

COME-ON

Come-on is defined by Ron as follows:

"A thetan is a mystery sandwich. If we tell him there is something  to  know
and don't tell him what it is we will zip people into Div 6 and on into  the
org." (LRH)

So in using come-on, one simply does the  above.  You  either  have  or  you
create interest in your prospects-then you channel  them  along.  Their  own
curiosity will pull them  along  the  channel,  providing  you  created  the
correct mystery in the first place.

You channel by indicating where and how to get the data-never just GIVE  the
data. And one can keep on doing this to a person-shuttle  them  along  using
mystery. Dept 17 services especially should be geared to this,  one  service
ending in some mystery that only the next Div  6  (or  better  yet,  Div  4)
service will solve. One can also put  this  type  of  come-on  promotion  in
books one sells so the person buying  the  book  is  put  into  mystery  and
doesn't just end on a win by reading that one book alone.

END-OFF

Reach gets blunted or terminated once a person gets his  question  answered,
the solution to his problem, etc. Purveying  random  and  little  pieces  of
tech to a prospect and the public at large does just this. This  is  end-off
dissemination.

Thus one should gear  one's  dissemination  to  the  come-on  and  keep  the
prospect's appetite for knowledge and mystery well  stimulated  and  channel
the  person  right  along  so  that  he  will  and  does  become  an  actual
Scientologist.

In our case, the curiosity restimulated eventually will  be  fully  answered
and to the person's complete advantage. When he is given  a  mere  scrap  of
information, he has

245



I

been denied the full data, gains and technology which  will  be  his  if  he
attains the benefits of major services.

DEFINITIONS

"MYSTERY:  the  glue  that  sticks  thetans  to  things."   (Dianetics   and
Scientology Technical Dictionary).

"MYSTERY SANDWICH: 1. the principle of mystery  is,  of  course,  this:  the
only way anybody gets stuck to anything is by a mystery sandwich.  A  person
cannot be connected to his body, but he can have a mystery between  him  and
his body which will connect him. You have to  understand  this  thing  about
the mystery sandwich. It's two pieces of bread, one of which represents  the
body and one of which represents the thetan, and the  two  pieces  of  bread
are pulled together by a mystery. They are kept together by  a  volition  to
know the mystery. (PAB 66) 2. a thetan stuck  to  anything  is,  of  course,
just a mystery sandwich. Thetan, mystery, object-mystery sandwich. (SH  Spec
48, 6108C3 1)" (Dianetics and Scientology Technical Dictionary).

COME-ON: (noun) "something offered as an inducement"  (Webster's  New  World
Dictionary).  "something  offered  to   attract   or   allure;   enticement;
inducement" (World Book Dictionary).

SUMMARY

Imbue your prospects and the public at large with a thirst to find out.

Mystery, not little scraps of data, will be found to be the biggest puller.

L. RON HUBBARD

Founder

Assisted by

Suzette Hubbard

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SH:dr.jk.gal.gm , 1979

246



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 FEBRUARY 1979R

Remimeo     REVISED 3 SEPTEMBER 1979

(Revisions in this type style)

                 (References updated and reissued as part of

                    Marketing Series, 3 September 1979.)

Marketing Series 7

PR Series 31R

THE BASICS OF MARKETING

There are certain stable data anyone engaged in marketing or  preparing  the
materials for marketing should memorize so that  he  can  think  with  them.
These are not just stable data which one uses to qualify whether  or  not  a
marketing thing is okay; these are the stable data from  which  a  marketing
person, or anyone connected  with  the  development  of  marketing,  use  to
create the products related to marketing such as fliers, ads,  info  sheets,
material for salesmen, posters, etc., etc. Memorize  the  basic  data  given
below and be familiar and able  to  work  with  the  material  contained  in
parentheses after them so that you can think with these stable data.

0.    Be a professional in anything you do.

I .   Survey for the public and then survey that public with regard  to  any
product. (HCO PL 2 Jun. 71 11, PR Series 10, BREAKTHROUGH-PR AND PRODUCTION-
TONE SCALE SURVEY; HCO PL I Jan. 77RA, Rev. 29 Aug. 79, Marketing Series  3,
PR Series 33R, MARKETING HAT, HCO PL 12 Nov. 69, APPEARANCES  AND  PRO;  HCO
PL 13 Aug. 70 11, PR Series 2, THE MISSING INGREDIENT, HCO  PL  13  Aug.  70
111, PR Series 3, WRONG PUBLICS; HCO PL 23 Nov. 69, INDIVIDUALS VS.  GROUPS,
and any other survey tech.)

2.    Do your homework. (Study the market, competitors, field, publics,
etc.)

3.    Be fully familiar with the propaganda line of PR or public image your
company is currently following.

4.    Know your product.

5.    Establish and use a positioning for every product.  (HCO  PL  30  Jan.
79, Reissued 30 Aug. 79, Marketing Series  5,  PP  Series  30,  POSITIONING,
PHILOSOPHIC THEORY.)

6.    Impinge! (Applies to graphic design, campaign ideas, anything else.)

7.    Be alive! (Don't compose dead downgrades.)

8.    Direct people's attention. (This applies to graphic design, wording
of ads, placement of ads, color choices, ideas, capers and stunts.)

9.    Make material aesthetic. (Know how to use geometric design, color
wheels, color depth perception, layout, etc.)

247



10.   Be clean, clear-cut, comprehensible. (Don't be complex and muddy.)

11.   Use come-on. (In advertising you never tell all you know, just tell
people how they can get it or find it.) (See HCO PL 25 Jun. 78, Reissued 31
Aug. 79, Marketing Series 6, PR Series 32, COME-ON DISSEMINATION.)

12.   Create want!

L. RON HUBBARD

Founder

LRH:dv.1r.jk.gal.gm

248



HUBBARD COMMUNICATIONS OFF

      Saint Hill Manor, East Grinstead, Susse

HCO POLICY LETTER OF 4 SEPTEMBE

Remimeo Marketing

      Personnel

Copywriters

Artists     Marketing Series 8

Designers

Div 2 PR Series 37

Div 6

Lecturers

PR    MORE ON MARKETING BASICS

The duty of marketing is to make sure that something gets marketed  in  such
a way that it will be wanted and delivered. To accomplish  that,  one  needs
to know his marketing basics.

PRODUCT AVAILABILITY

Marketing is supposed to create want and demand, but it is fatal  to  create
want and demand where no delivery is going to occur.

Marketing is also  supposed  to  engage  in  and  result  in  some  sort  of
exchange. Another way of saying "we deliver what we promise" would  be,  for
marketing purposes, 66we promise and promote what we can deliver."

A created demand which then cannot be fulfilled results in ARC breaks  with,
further, the time, effort and money put into that marketing action down  the
drain. Also, in such a case, as far as the public goes, the  credibility  of
any future marketing done is apt to suffer.

Thus, one markets  WHAT  IS  THERE  RIGHT  NOW  IN  EXISTENCE  THAT  CAN  BE
DELIVERED. And the marketing of a NEW  item  must  be  dovetailed  with  the
actual release and availability of the new item for delivery.

In this way we reap a whirlwind of business, the public  gets  delivered  to
and the created demand gets fulfilled.

TWO VITAL MARKETING DATA:

REALITY ON THE PRODUCT/REALITY ON THE PUBLIC

There are two important data which must be used  in  marketing.  When  these
are not applied, the result is a marketing piece which does not  communicate
to the public it was intended for, and therefore the promotion is  worthless
and a waste of money.

These data are

1.    TO GIVE ANY READER REALITY ON AN ITEM, THE COPYWRITER HIMSELF HAS TO
HAVE REALITY ON THE ITEM.

2.    TO COMMUNICATE TO AN AUDIENCE, YOU HAVE  TO  HAVE  A  REALITY  ON  THE
AUDIENCE AS TO WHERE THEY ARE AT AND WHAT THEY ALREADY KNOW OR DON'T KNOW.

Applied, these two data are the basics on  which  any  successful  marketing
campaign, small or large, is built. If one knows the product and  knows  his
audience, the remainder of the actions necessary to bring the  two  together
become relatively easy.

THE MARKETING CYCLE

Probably some marketing failures result from a false datum  that  to  market
is synonymous with directly  selling  to  the  customer.  That  is  a  wrong
concept and woefully incomplete.

Marketing includes all actions from before the beginning of the production
right

249



on through to its use by the customer and  its  word-of-mouth  promotion  by
the public. Your first step is you've got to have a product to  market  that
will market. And you have to groom that product up so you can market it.

From the first moment a product is conceived, much less produced,  marketing
has to be in there with surveys to establish  the  design  and  use  of  the
product, and it carries on through at every stage to make sure that it  will
eventually sell and get good word-of-mouth promotion.

Advertising enters into it.  The  basis  of  advertising  is:  you  have  to
attract, you have to interest, and you can then  get  your  message  across.
It's in that sequence.

Another part of marketing is distribution planning. Without a  plan  to  get
the promotion and the product distributed to those points  where  the  promo
will be used and the product sold and consumed, you can't market.

And there is one more step in marketing that you have to take, which is  the
standard step of PR. You have to review  your  marketing  program  and  your
issues and your promo and find out if they were put to use. Did  the  issues
and promo ever arrive? Did the promo  ever  get  printed?  Was  it  actually
used? And what was the response to it?

A completed marketing cycle would  always  include  such  a  follow-up.  The
success of an existing  marketing  campaign  or  the  success  of  the  next
marketing campaign would depend upon it.

SHOTGUN MARKETING

"Shotgun marketing" is marketing without any  concentration  on  the  actual
marketing of any one individual product.  Pushing  everything  all  at  once
scatters the audience attention and weakens the  impact  of  the  individual
items.

Cure yourself of sending all your materials out in a wad as it  is  a  fatal
failure. It  is  only  the  amateur  in  PR  and  marketing  who  sends  out
everything he has or has ever heard of in a single shot and  thus  winds  up
selling nothing.

On the professional side, one sends materials out piece by piece  to  arouse
and stimulate interest. When interest is stimulated one gets response.

So just don't indulge in shotgun marketing. And don't allow yourself  to  be
talked into it for whatever reason.

Release your materials strategically.

That's part of effective marketing and it's what brings about sales.

As a stable datum, the most attacked and  suppressed  line  in  any  org  or
management unit is promo and marketing and one has to know his  business  to
spot it and halt it before it does him in. Were we able to  clean  out  just
this one factor in management in every org, we'd  have  a  boom,  just  like
that!

A large part of handling this factor  lies  simply  in  both  marketing  and
management terminals understanding marketing  and  its  basics.  From  there
it's a fairly short step to getting the marketing basics applied.

That's really all it takes to produce a boom.

L. RON HUBBARD

Founder

LRH:nc.gm

250



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste

HCO POLICY LETTER OF 5 SEP

Remimeo

Marketing

      Personnel

Copywriters

Artists

Designers

Layout

Printers    Marketing Series 9

Div 2

Div 6 PR Series 38

THE ASSEMBLY LINE FOR PRODUCED PROMO

A few years back I found, in a study of the flow lines of promo, that it
was very difficult to get a line to move from idea stage to a disseminated
piece of promotion.

DESIGN OMISSION

A study of the graphic arts textbooks on layout  being  used  revealed  that
they began their org boards  and  flow  lines  in  the  print  shop!  That's
several notches down the line in the production of effective promo.  Omitted
was the vital step of design.

The textbooks were a printer's idea of the world and, being  printers,  they
would not really know much about the source  of  copy  or  ideas.  The  book
misdefined "dummy" as "rough layout" and misdefined "rough layout"  as  full
design and layout. And that was the text  being  used.  As  a  result,  when
requests were made for promo pieces, the  reply  was,  "Well,  give  us  the
dummy," and when the dummy came, it was, "This isn't the layout."

You can't start making columns of printing (galleys) without somebody  doing
a design and dummy. And you can't do a "rough layout" or any layout  at  all
unless you have a design of what the piece is trying to look like.

But there was no design step in the assembly line. Instead the  printer  was
being asked to put together a "layout" when he hadn't a  clue  of  what  the
person ordering the piece was trying to present. The result  of  that  could
only be hackneyed (trite), badlooking promo as there  was  no  real  design-
just type columns and photos.

Design is quite a subject; one I happen to know more  about  than  printing,
I'm afraid. So to see it omitted in texts  explained  all.  The  result,  no
matter how hard the printer worked, would be apt to be ineffective.

Once the real bug and omission was spotted, it was not difficult to get  the
missing vital functions added in and org  boarded  correctly  to  straighten
out the scene.

We now have a correct and complete assembly line for  produced  promo  which
permits a flow to occur from idea onward.

251



ASSEMBLY LINE FOR PRODUCED PROMO

1.    IDEA

2.    WORDS - DUMMY - ART

PHOTOS

3.    DESIGN

4.    ROUGH LAYOUT

5.    TYPESETTI

-7

6.    ASSEMBLY, PASTE-UP

PREPARATION

SHOOTING BOARDS

7.    PROCESS CAMERA WORK

8.    PLATEMAKI

9.    PRESS WORK

10.   FINISHING, CUTTING,

FOLDING, BINDING

      1

TO ORDERER 1

1

12.   FD-ISTRIBUTION

252



DEFINITIONS OF PROMO ASSEMBLY LINE FUNCTIONS

The following definitions correctly describe the functions at each  step  of
the promo assembly line.

IDEA: A concept or notion of something to be done; a plan of action;
intention.

DUMMY- A scrap paper expression of the idea. Includes in  the  same  package
the written materials or words (called copy), all  surveys  used,  captions,
photos and art work.

DESIGN: The artful  format  that  will  interest  and  lead  the  viewer  to
involvement in and finally desire to act (to attain, to  meet  a  challenge,
to acquire, to achieve, etc.).

ROUGH LAYOUT- The precisely measured pages, spaces,  type,  croppings,  laid
out with great  mechanical  accuracy  so  that  typesetting  can  begin  and
separation negatives or blocks that will fit can be made.

TYPESETTING: The act. art or process of setting type for printing.

SHOOTINGBOARD  LAYOUT-  (Includes  assembly,  paste-up,  preparation.)   The
exact, final arrangement and execution of  each  page,  its  type,  art  and
pictures and page arrangement in signatures, ready for  the  process  camera
(or in letter press, the press).

CAMERA WORK: Where plates are made and photos or art plates are  made.  This
has a branch line, in color, which comes just before  it,  of  making  color
separation negatives.

PLATEMAKING: The process of making a thin, flat piece of  metal  or  plastic
called a plate, upon which a picture or a page of type is engraved.

PRESS WORK: This is the actual printing.

FINISHING: That which completes or gives a finished appearance to  any  kind
of work. It includes the cutting, collation, folding and  binding,  stapling
or stitching of the printed sheets, to make a finished product.

CUTTING: The trimming or separating of the printed sheets to the specified
size.

COLLATION: This is assembly of the printed sheets.

FOLDING: This is doubling or bending the sheets over to the  specified  form
and size, if they are designed to be folded, or if they  are  to  be  folded
for mailing. It is done by machine or by hand.

STAPLING OR STITCHING: This fastens the sheets together.

BINDING: This fastens the sheets together into a cover (if one is to be
used).

PACKAGING: This envelopes or boxes the material.

SHIPPING: This gets the product off to destination.

While many substeps may occur, these are the main steps. Each has its own
tech.

If the above steps of dummy, design and rough layout are confused  with  one
another or are tried out of sequence, the final product  cannot  occur,  and
if by some bungling does happen, it will be an overt product.

Printers and graphic arts texts hint at  a  mysterious  upper  world  called
"commercial advertising firms." This is as close as they get  to  mentioning
DESIGN as noted above.

253



Graphic arts texts confuse "dummy" and "rough layout." As a result, the
industry is in a spin most of the time, as you may have noticed.

The only place the above assembly line backs up is when "rough layout"
cannot execute the design due to limitations, inadequate facilities or
errors. This requires liaison between these two to iron it all out.

Ignoring or misapplying these flow lines will give you poor promo or, at
best, make it hard to get promo out.

The line tangles AT THE TOP THREE POINTS below "idea" unless these are well
understood and done exactly in this sequence.

If the DESIGN definition is understood and well used, promo will be
effective.

HCOB 30 August 1965, ART and HCOB 29 July 1973, ART, MORE ABOUT are vital
if one is going to do promotion. They regulate the first three steps of
this line.

L. RON HUBBARD

Founder

LRH:gal.gm

254



            HUBBARD COMMUNICATIOP

            Saint Hill Manor, East Grinstea

            HCO POLICY LETTER OF 6 SEP]

Remimeo

Marketing

      Personnel

Copywriters

Artists

Designers   Marketing Series 10

Layout Artists   PR Series 39

THE RELATIONSHIP BETWEEN DESIGN AND ROUGH LAYOUT

What you're trying to get down the line is a product.

You've got the idea for a promo piece expressed  in  the  dummy  and  you're
trying to take it from design (the artful  format  that  will  interest  and
involve the viewer and stimulate him to act) into  a  precise  rough  layout
(the precisely  measured  parts  of  the  piece  laid  out  with  mechanical
accuracy).

And right here between these two-design and rough layout-your product  could
hang up and bog or get hopelessly bungled if the  difference  between  these
two actions and their relationship to each other is not fully understood.

DESIGN

The Purpose of Design

To do a rough layout or any layout at all, you must begin with  design,  and
the guiding line there is HCOB 29 July 1973, ART, MORE ABOUT.

What you're trying to do with the design of a layout throughout is

A. ATTRACT

B. INTEREST

C. DELIVER THE MESSAGE.

If you use the communication formula, you get an extension of this.

Some people abandon art for the message;  others  abandon  any  message  for
what they believe to be art. But if you double  it-apply  ATTRACT-INTEREST-M
ES SAGE and the comm formula to the layout as a whole-and then redouble  it-
apply  ATTRACT-INTEREST-MESSAGE  and  the  comm  formula  to   the   message
itselfyou get a double punch of impingement.

You want a design that, in itself,  communicates-a  design  that  talks.  It
requires the use of art forms.

Art Forms - Design Basics

The art forms we're talking about here are shapes or objects.

A keyhole, for example, is an art form. Different  shapes,  different  sizes
of keyholes, convey different things.  Circles,  squares,  triangles,  etc.-
these are all art forms.

There is a simple drill one can do, using art  forms,  to  grasp  the  basic
idea of  design.  Take  ovals,  squares,  rectangles,  circles.  Throw  down
certain shapes on an open

255



page of a brochure on each page  and  you  get  a  specific  design.  Is  it
pleasing? Not pleasing? Dramatic? Not dramatic? What is the effect?

Do this again and again, using the various shapes or combinations  of  them.
You can play around with this until you get the full feel of design basics.

Beyond this, one can  experiment  (but  not  on  the  final  product!)  with
different formats, different sizes, horizontals, verticals, different  sizes
of photos and backgrounds in color  or  not,  textures  and  two  dimensions
giving the impression of textures, as well as background designs.

The possibilities are many and one should feel at home with a wide range  of
them and how they align and integrate, or not, with the  rules  of  standard
composition.

Composition and the "Eye Trail"

When we talk about composition, we are talking about how you dispose of  the
objects in a picture or design, not how you draw one object. Composition  is
how you arrange or group the objects or shapes.

There are certain stable composition lines  and  there  are  dynamic  lines.
There are various types of mood lines. These must be used. They are part  of
standard composition, and they have everything to do with design.

In composition you are working not only with the mood of the piece but  with
the EYE TRAIL. The EYE TRAIL is vital in the layout of a design.

The eye must go somewhere-i.e., start at the top and follow down.  Where  it
starts and where it goes is called the eye trail. And  right  here  you  get
into the basic formula of ATTRACT-INTEREST-MESSAGE.  The  eye  trail  should
lead one-pull one-involuntarily through ATTRACT-INTEREST-MESSAGE.

You can have a design which, by itself, is so  irritating  that  it  forbids
reading it-it defeats the message. If you don't believe  it,  look  at  some
pictures in cubism. Cubism is a dead art, by the way. But why  did  it  die?
Well,  it  specialized  in  irritating  pictures,  jagged,  angry  pictures,
confused pictures. If the layout is ragged, the eye  does  not  follow  down
easily.

The actual design will deliver an emotional impact.  In  other  words,  your
design can be such as to prevent the piece from being read  or  deliver  the
wrong emotional impact for that piece, and therefore all the money  and  the
work and all the ideas and all the  think  that  went  into  it  is  totally
defeated.

Take squares. You put squares in the wrong place  and  have  the  eye  trail
going in the wrong direction and you have an irritated person who  will  not
go further.

Mono-sized shapes or objects  or  monotone  lines-the  piece  will  have  no
impact and no real eye trail. It's all monotone. It goes nowhere. Or  a  so-
called center spread where the eye is distracted  by  two  other  disrelated
photos and the attention is dispersed-wrong eye trail.

Thus design, the way you put something  together,  is  very,  very  able  to
deliver an  emotional  impact  by  itself.  Brilliant  design  will  deliver
exactly the emotional impact you intend. Brilliant  use  of  the  eye  trail
will carry one to and then through ATTRACT-INTEREST-MESSAGE.

The conclusion, therefore, is that  format  and  layout-the  design  of  the
piece-is the key to saleability.

So you use the emotional patterns of design and design itself as a means  of
communicating, to project the desired emotional response.

256



You're working for the  final  appearance  of  the  final  product  when  it
arrives in somebody's hands.

You're working for a technical quality which all by itself will deliver an
impact.

That's DESIGN.

ROUGH LAYOUT

Once the design has been established, rough layout can be done.

Rough layout precisely measures the pages,  precisely  measures  the  spaces
within the pages, precisely measures the copy  and  selects  the  type  that
will be used for the copy in the various spaces. It  crops,  precisely,  the
photos or other artwork that will be used in the piece.

Cropping

In cropping we see distinctly the relationship between design and rough
layout.

There are two types and two stages of cropping:

I . Artistic (design)

2.    Mechanical (rough layout).

1. In the design stage you indicate (describe) the artistic  on  the  design
in the space for the photo. Any crude black and white sketch will do.

2. Mechanical-rough layout-makes it fit and marks in  the  exact  dimensions
and the crop on the board the negative or transparency is in.

Cropping has to do only with format. The actual size of the  photograph  has
nothing to do with the established rules of cropping.  It  has  to  do  with
taste.

Rough layout follows the  design  and  scales  the  design  to  fit  in  the
prescribed space. It does this precisely  and  accurately  without  altering
the design and according to the balances and relationship described  by  the
design.

When we get into rough layout, we are into the graphic arts. (One could  get
into a confusion here between the terms graphic arts, graphics and  graphic,
so it had  better  be  made  clear.  Roughly,  most  encyclopedias  describe
graphic arts  as  engraving,  etching,  etc.,  involving  representation  or
expression by means of lines on flat surfaces. Graphics is described as  the
art or science of drawing  especially  by  mathematical  principles,  as  in
mechanical drawing, or calculating by means of graphs or diagrams.  But  you
look in the dictionary and you find graphic means "vivid." So  graphic  arts
and graphics do not mean the same thing as graphic.)

Graphic arts deals with the mechanical reproduction of a picture or  design.
It is done by means of graphing. You don't use arithmetic in  graphic  arts.
It's more a form of plotting.

They call the rough layout the mechanical, and they call it  the  mechanical
for a  good  reason-it's  MECHANICAL.  What's  mechanical?  That  means  "by
machine."

So in rough layout you're into the area where it's all  machine.  We're  not
talking  here  about  a  system  of  pistons  and  gears  and   levers   and
crankshafts, but we are talking about a mechanical action.

If you've ever been on the bridge of a ship plotting a course, or if  you've
ever taken arithmetic that gave you vectors whereby you draw  one  line  and
then you draw another line and then you measure the  length  of  the  second
line and that gives you a

257



mathematical solution, you'll see that this is a mathematics of  sorts.  And
that is what is used in graphic arts. But it doesn't  have  much  arithmetic
involved in it. It's a system of graphing. You draw  a  line  this  way  and
that intercepts or stops a line over here and then that makes  a  line  over
here do something. It's plotting, graphing, a machinelike action.

The only way numbers enter into it is that negatives have sizes,  paper  has
a size, prints have a size-and those things have to be accounted  for.  Your
job in rough layout is to make the back wall join with the roof.

From the rough layout you will be able to get the type  selection  and  size
and you'll be able to get the cropping.

So you do the design in rough layout so that it is totally practical.  Rough
layout is totally a practical, a mechanical  action.  "This  type  will  fit
here and it fits the design as close as we can get. . . ." Etc.

Design and Rough Layout Liaison

There may be instances where the design  as  presented  cannot  be  followed
exactly by rough layout. This can be due to limited equipment  or  materials
or an error in the design  or  other  reasons.  When  there  are  legitimate
reasons it can't be followed, rough layout liaises with  design  to  get  it
worked out so that the design can  be  executed.  Otherwise,  they  are  two
separate and distinct functions.

The watchword in rough layout is precision. It is done with fine  mechanical
accuracy so that the preparation of the materials for the  shooting  boards,
the typesetting of the copy, the processing  of  the  separation  negatives,
etc., can begin. It's all got to be made to fit  precisely  so  that  it  is
doable when it goes to the final shooting board stage.

If it's not mechanically accurate, the shooting boards won't be  doable.  If
it gets to final shooting board stage without it being  doable,  or  to  the
printer as a faulty shooting board, you won't get a product  or  you'll  get
an overt product.

When it gets to the printer and the shooting of the plates, if  you  are  to
have two plates, one to follow the  other,  they've  got  to  be  in  total,
absolute register. There can't be a  millimeter  of  difference.  Now  we're
into precision. But it's precision of what? It's the precision of  following
what was laid down by rough layout.  So  the  rough  layout  had  better  be
correct.

If it got up to final shooting board stage without the thing being  able  to
be doable, then somebody can't lay out the  plate,  he  can't  lay  out  the
printing, the halftone dots won't match, the  this  won't  match,  the  that
won't match, the color separation negatives won't fit in that piece.

The essence of it in the final analysis is, is it doable?

You've taken the design and you've executed it in layout as  it's  going  to
be-each part scaled precisely to the right size  and  mechanically  accurate
so it all fits together perfectly. It's ready to go onto  a  shooting  board
for business so it can then be put under a camera. It's doable.

That's ROUGH LAYOUT.

L. RON HUBBARD

Founder

LRH:gal.gm

258



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste

HCO POLICY LETTER OF 19 SEP

Marketing

      Personnel

Copywriters

Dirs Prorno

PRs

Div 2

Div 6 Marketing Series 11

PR Series 40

PROMOTION

Promotion is, of course, an essential part of marketing.

It is the action of making something well known and well thought of.

It is the art of offering what will be responded to.

RESPONSE is the key word here. Whether it's in terms  of  services  sold  or
commodities sold or communication or goodwill, it's  response  that  is  the
test of all promotion.

In order to get response you've got to first  find  out  what  people  want.
You've got to find out what people consider valuable.  When  you  know  what
people want and what  they  consider  valuable,  you  know  what  they  will
respond to.

It takes surveys. It's no good flying blind or trying to guess  at  it.  You
won't KNOW until you survey.

So your first question on all promotion is, "Am I absolutely sure, before  I
invest any money in this promotion (make-up, printing, postage) that  people
will consider what I am promoting valuable enough to  exchange  their  hard-
won valuables for it?"

The answer lies in the results of your survey. Promotion is always,  always,
always based on surveys, and it must include the exchange factor.

The real test of good promotion is: Are you getting an  effective  exchange?
The exchange may be communication, it may be goodwill, but-are  you  getting
exchange?

Communication and goodwill are valuable in themselves  and,  as  well,  they
precede and lead to the material exchange of valuable for valuable.  So  any
of these is considered effective exchange in promotion.

One must, however, in order to  continue  to  survive  and  to  continue  to
promote, arrive  very  shortly  at  a  material  exchange  of  valuable  for
valuable-a consumption of the  product  one  is  promoting.  On  a  material
exchange basis, if you are trying to produce something and  nobody  is  busy
absorbing or consuming it, you are in trouble right away because  nobody  is
going to support you, and that's where your income is. So  the  final  value
of promotion and where you get the money to  do  the  promotion  is  in  the
CONSUMPTION of the thing you're promoting.

The important datum here is YOU PROMOTE WHAT CAN BE DELIVERED AND CONSUMED.

Make it a firm policy that you push what you have ready  to  put  in  public
hands at the time of the promotion and  that  you  do  not  heavily  promote
future products not yet in hand.

259



~v

Then, in any promo piece, be it an ad, brochure, a flier, a pamphlet, a
poster, you follow the line of-

1. Attract

2. Interest

3. Get your message across,

That sequence, followed, can look many different ways in many different
promo pieces depending upon the subject, the mood, the design and the copy
of the piece. But in any successful promotion, the basic sequence will be
found to be just that: Attract-Interest-Message.

TWO GUIDING RULES

There are two guiding rules to be followed in any type of promotion:

1.    Don't soft sell.

2.    Don't set us up for false claims.

The results of Dianetics and Scientology are fantastic enough to please  all
but the most psychotic in the society. These results have never before  been
seen on the planet. But there are  always  SPs  out  there  who  don't  want
people to get well and who use literature to get you in trouble.

The art of hard sell is you tell people to do something. Hard sell is  based
on knowing and promoting in the line  of  truth  and  not  being  reasonable
about people who  want  "other  things"  and  "other  practices."  There  is
nothing to compare with  Dianetics  and  Scientology.  They  are  infinitely
valuable and transcend time itself.

So don't understate things in  your  promotion.  Just  tell  the  truth  and
you'll find that it's very effective.

QUALITY DEGRADES

A degrade of the quality  of  something  means  an  action  that  lowers  or
reduces its excellence or degree of excellence.

In promotion, a quality degrade would  be  a  poorly  designed  piece  or  a
sloppy printing job or dull, clich6-ridden or otherwise  inappropriate  copy
or any other of a number of carelessly done or not done actions  that  would
show up in the final result.

Quality degrades can be caused by:

a.    Willful unhattedness, or

b.    Lack of good taste or a sense of the fitness of things, or

C.    Knowing products or promotion are of poor quality but, for one  reason
or another, neglecting to remedy them or  call  them  to  the  attention  of
those who can and will remedy them.

There is no excuse, with all of the tech at our disposal, for any of the
above.

The standards for the quality of our promotion must  be  high  and  must  be
maintained. We are not playing children's games. This is your show and  your
planet too. You aren't doing this just for me-but I am sure you know that,

We have an incomparable technology. In order to get  it  delivered  we  MUST
communicate and in the communication we MUST interest people in order to  be
seen and listened to.

A quality degrade in promotion cuts our comm lines to a  greater  or  lesser
degree. And the world depends in no small measure on our comm lines.

260



Thus, quality degrades are no slight matter. They cut our comm lines
because, with dropped-out quality, what we make and the promotion of what
we make would be so flawed that it would not communicate.

So realize, when promoting, that the world needs us and our technology.
Make it well known and well thought of.

And keep the quality of your promotion such that it does attract and
interest and communicate and bring response.

L. RON HUBBARD

Founder

LRH:gal.gm

261



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 SEPTEMBER 1979

Remimeo     Issue III

Marketing

      Personnel

Copywriters

Dirs Promo

PRs   Marketing Series 12

Div 2

Div 6 PR Series 42

COPYWRITING

References:

Marketing Series PLs

PR Series PLs

HCO PL 10 Feb. 1965    AD AND BOOK POLICIES

There are many trends promotion and  ad  copy  can  take.  One  of  them  is
dignified, hard-hitting and dramatic. Another is warm, human  and  truthful.
Another, the kind we don't need, is pointless or banal.  It  specializes  in
words  like  "exciting"  and  "don't  miss"  which  are  clich6s  (worn-out,
overworked, hackneyed phrases) and would attract no attention  and  get  you
no customers.

The approach to promo and copywriting, whatever the mood or trend it  takes,
should  be  fresh  and  truthful.   Insincere,   overdone   or   stereotyped
advertising will never sell or bring anybody into anything.

It  is  possible  to  do  promotion  and  write  copy  that  is  alive   and
interesting, that attracts and is in good taste.

PRIMARY MISSION

The primary mission of any piece of promo is to create  want  and  sell  the
item. When one goes to the trouble and expense of putting  an  ad  together,
it has to accomplish its purpose. If you're getting up an  ad  for  a  book,
the purpose is to create a want for the book and sell the  book.  If  you're
getting up an ad on a service,  the  purpose  is  to  create  want  for  the
service and sell the service.

The question one asks himself is, "What ad would accomplish  this  purpose?"
and "How am I going to convince this audience that they ought to . . ."

You dig into your surveys and you find what people want and  expect  of  the
item. You yourself must have reality on the product and  the  worth  of  the
product, and you must also have a reality on your audience if  you're  going
to reach that audience and communicate to them in your copy.

This comes under the heading of "homework."

HOMEWORK

By "homework" is meant all the necessary  preliminary  or  preparatory  work
done, all the relevant facts dug up, all the data needed  that  will  enable
one to get a product out.

In copywriting it would mean getting fully  familiar  with  the  product  or
service one was promoting, knowing all about it. How is  it  produced?  What
does it do? Why is it valuable? What results can one expect from it?

262



Wherever possible, the copywriter would have personal  experience  with  the
product or service himself to be able to promote and sell  it  honestly.  He
would make it his business to find out about the experience of  others  with
it, delve into results produced, success stories, wins,  achievements.  He'd
know the product or service and he'd be able to turn  out  copy  that  shone
with reality and conviction.

And he would make it his business to know his audience. Who is  the  product
for? Who is this public? Has this particular public been surveyed? Were  the
survey questions correct? What does the survey show this public wants?  What
do they expect from such an item? What "buttons" has this survey turned up?

When the homework has been correctly done, you  know  the  product  and  you
know your public and you can produce a piece of promo that  will  bring  the
two together.

You use your knowledge of the product, you use the survey buttons,  you  use
audience viewpoint and you use positioning to attract and interest  and  get
the message across.

COPY AND POSITIONING

There has been some think in the past that when positioning is  done  it  is
then put at the beginning of the promo piece and  after  that  one  pays  no
attention to it. This is a misuse of positioning. It can ruin the impact  of
your ad; it can disperse the reader.

Everything  streams  out  from  the  positioning.  If  one  has   positioned
something against an airplane, then the rest of the copy would be  in  terms
of flight. It would be inherent in the way one used his words. A  new  item,
a can opener, would take off from the drawer and dive effectively at a  can.
It would also give your hand a smooth  ride.  This  is  known  as  frame  of
reference. The vocabulary one uses is  all  inside  a  frame  of  reference.
Positioning gives you a frame of reference. So you write your  copy  out  of
that frame of reference and you plan your promo piece around that  frame  of
reference, and you keep it consistent.

Impact depends mainly upon consistency  and  staying  on  the  same  subject
without departure from the frame of reference.

A good copywriter will make the most of positioning to enhance his copy  and
make it all-of-a-piece with the whole of the ad.

ASSUMING AUDIENCE VIEWPOINT

A common fault in writing ad copy or other material, both in  marketing  and
other areas, is an inability to assume the viewpoint of the reader  and  get
the idea of what impression the reader may have when he reads the ad. An  ad
must be written from the viewpoint of the public that is going to read it.

The actual trick of writing that wins is to be able to put  oneself  in  the
valence of the person who will read it. What kind of public is that? Who  is
this person? Get a reality on your reader, and then,  just  like  an  actor,
you assume that beingness and read your copy back. An experienced actor  can
flip into a beingness in about 1/25th of a second and flip out of it  again.
So just slide into such a beingness and read your copy,  and  you  will  see
what I'm talking about.

It is a skill in writing to be able to read one's copy newly as  though  one
has never heard of it before, from  the  beingness  of  the  reader.  It  is
something one should acquire.

MAINTAINING VIEWPOINT

If the writer doesn't have a firm viewpoint  from  the  beginning  and  hold
that viewpoint throughout the copy, his ad will  lack  impact.  Further,  it
will disperse his audience. If he switches viewpoints within the ad,  if  he
writes from the viewpoint of the

263



producer one moment and moves in from the viewpoint of the consumer  in  the
next paragraph, his copy is  going  to  be  confusing  and  he'll  lose  the
reader.

One can't have two different approaches to the same subject in one piece  of
literature.

Similarly, if he has no audience viewpoint or has  difficulty  assuming  the
viewpoint of  a  reader,  his  ad  will  fall  that  much  short  of  really
communicating.

WHAT THE PUBLIC ASKS OF AN AD

In an ad or flier, you don't try to enforce  understanding  on  the  reader.
That violates come-on. And it's not even what the public wants. An  ad  does
not have to teach anything; it merely has to create want. And when the  want
is created, you must, must, must tell the reader where he can  get  it.  You
never leave a mystery as to  where  someone  can  get  the  product  or  the
service.

Ad copy can defeat its own purpose (to create want and  sell  something)  if
it doesn't include the seven points  of  an  ad  as  listed  in  HCO  PL  10
February 1965, AD AND BOOK POLICIES.

That list contains the questions a public person actually  asks  himself  or
asks of an ad or a flier. What is this service? How  valuable  is  it?  What
does it do? How easy would it be for me to do it? How  much  does  it  cost?
How do I get it? Where?

A good copywriter carries the reader,  his  interest  increasing,  right  on
through the final question. Where this is missing, you  have  a  writer  who
doesn't have the audience viewpoint. He may even  create  a  want  but  then
leaves his audience dangling. Where it is handled  and  handled  well  by  a
good copywriter, you have an ad that sells.

HARD SELL

It is necessary in writing an ad or a flier to assume  that  the  person  is
going to sign up right now. You tell him that he is going to sign  up  right
now and he is going to take it right now. That is the  inference.  One  does
not describe something, one commands something. You will find that a lot  of
people are in a more or less hypnotic daze in  their  aberrated  state,  and
they respond to direct commands in literature  and  ads.  If  one  does  not
understand this, and if he doesn't know that Dianetics and  Scientology  are
the most valuable service on the planet, he will not be able  to  understand
hard sell or be able to write good copy.

So realize that you're not offering cars or life  insurance  or  jewelry  or
stocks or bonds or houses or any of the transitory  and  impermanent  things
which are based on things not surviving or on things that are in fact  being
destroyed. You're offering  a  service  that's  going  to  rehabilitate  the
thetan and that is lasting.

Hard sell means insistence that  people  buy.  It  means  caring  about  the
person and not being reasonable about stops or barriers  but  caring  enough
to get him through the stops or barriers to get the service that's going  to
rehabilitate him.

That is the sole reason for our use of surveys and promotion  and  marketing
in the first place.

When that one fact becomes real, it all falls into place and it should be  a
short step then for a copywriter to produce an ad that attracts,  interests,
creates want and sells Scientology products and services.

LRH:nc.gm   L. RON HUBBARD

      Founder



264



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinstea

HCO POLICY LETTER OF 27 SEP

Remimeo

Marketing

      Personnel

Copywriters

Dirs Prorno

PRs

Div 2

Div 6 Marketing Series 13

PR Series 43

ADS AND COPYWRITING

References:

Marketing Series PLs PR Series PLs

Ad copy has got to carry a message. It is a communication.

Some photographers never find out that  a  photograph  is  a  communication.
Some artists never find out that art is a communication. And  that  is  also
true of some copywriters.

SPLIT-SECOND TIMING

An ad is not textual information. It is a communication. But it has to be  a
very fast communication because people won't look at it very  long.  It  has
to be able to deliver its message in about a quarter  of  a  second.  That's
how long it takes somebody to go through the reflex of  throwing  the  piece
away.

You could actually go around with a stopwatch and time  how  long  it  takes
for a person to see if he is going to throw something away  or  not.  It  is
that span of time that you have in order to absorb the message.

The actual test of a piece of ad copy is WILL IT REGISTER IN THE INSTANT  IT
TAKES THE INDIVIDUAL TO PICK IT UP AND DECIDE HE IS GOING TO THROW IT AWAY?

If it communicates in that split instant of time, he won't  throw  it  away.
That is the test of an ad or a flier.

At each point a person would throw a promo piece away, he must  be  stopped.
You have to figure out the cycle by which he would throw something away  and
then you can write the ad copy. You have to figure out the  points  of  stop
when a person is going to discard this thing and catch him on  each  one  of
them.

ADS AND THE COMM CYCLE:

DIRECTING THE PUBLIC

You must recognize that the public has to be able to send for something or
be able to communicate easily or they don't buy the item. You have to
direct the public. An ad or flier must have something for them to do. It
must give them somewhere to go, or someone to write to, or someone to call
or contact. You first direct them. Then make it easy for them to respond.
That's part of the comm cycle.

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LOOKING AT MADISON AVENUE

The beautiful artwork and gorgeous stuff you see  in  magazines  is  Madison
Avenue's effort to keep people from throwing the piece away  because  it  is
aesthetic. But it doesn't communicate.

I've looked through a few magazines trying in  vain  to  find  out  what  to
order and where to order it from. I had the wildest time and  finally  found
in one magazine they had enclosed a card. But it wasn't actually a card;  it
was a piece of a card that had  to  be  cut  off  another  card.  It  wasn't
recognizable as a card so I didn't recognize it as something you  could  use
to send away for something. It just didn't register as a card, so there  was
no simple way to send away for the item.

Here's an example of an  ad  that  doesn't  communicate.  It's  an  isolated
object, beautifully photographed, sitting out in the middle of  space.  Then
underneath it all they say they've  just  won  an  award  for  something  or
other. But what's the ad about? It doesn't say. The message isn't there.  It
doesn't communicate.

Here's another: It's actually supposed to be a cigarette  ad  but  it  shows
somebody getting dragged on a sled  through  the  snow.  It's  obvious  what
they're selling-they're selling snow!

Most of the ads in the better magazines aren't  ads  at  all;  they're  just
assertions about a product. You will find that hardly any of  them  are  ads
that bring about exchange.

If this is the best of Madison Avenue, they don't know the basics of
advertising.

If our promo people are looking at or studying  that  kind  of  ad  all  the
time, they won't be able to write good ads themselves. Because these  aren't
good ads. They don't communicate.

SURVEYS AND COMMUNICATION

In magazines you have something on the  order  of  half  a  million  dollars
worth of advertising or more. It has pretty poor impact.

It is very outpointy for grown men  to  be  spending  this  much  trying  to
trickily capture somebody's attention. They get so involved in the  trickery
of it that they don't communicate what they want, which is, "We want you  to
buy this product."

Advertising must  represent  something  that  people  want  which  they  are
willing to exchange something for. The ad has to tell them what it is.

If you have a surveyed message, it has got to offer  something.  Advertising
people, with all their flossiness, all of the  color  and  everything  else,
aren't communicating.

Some ads use mainly only a symbol or a hallmark and  attempt  to  make  that
into a communication. But you can't take a symbol or a hallmark and make  it
into a communication. They are just decorations. That doesn't make an ad.

You have got to get the communication that matches  the  survey.  But  promo
people have found a new way of avoiding a survey. They just put it all  down
in the text, so the communication doesn't match the survey.

I realize that in school they teach you  that  you  must  be  original.  But
communication is duplication. You do  a  survey,  the  public  feeds  you  a
button, so you just feed it back to the public. That's duplication.  And  it
works. Don't make the mistake, in writing  ads  or  copy  or  promotion,  of
thinking that you have to  do  something  else  besides  feed  the  surveyed
button back to the public.

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CONCLUSION

Actually, in advertising you haven't got any competition at all.

So why is it that some promo people don't write good ads? Because the ads
they see all the time aren't good ads. That's the Why!

The handling is to write good ads!

With the survey and promotion tech we have, and the tech we have on
communication, there's absolutely no excuse whatsoever not to produce a
good ad-one that communicates!

L. RON HUBBARD

Founder

LRH:nc.gm

267



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 OCTOBER 1979

Remimeo

Marketing Series 14

VIEWPOINT

Before successfully  doing  or  okaying  copy  or  materials  for  marketing
purposes, one must  learn  the  skill  of  assuming  the  viewpoint  of  the
eventual reader or public who will be expected to react to it.

The essence of marketing is to create want and sell  services  or  products.
The only reason one writes copies or prints fliers  or  handouts,  handbills
or posters is just that

Any pictorial or written material is done or written for  the  sole  purpose
of being viewed by the eventual consuming public.

To execute or authorize material  which  does  not  bring  about  the  basic
purpose of marketing is of course extravagant. It may even  be  destructive.
It costs money to print and distribute material. So material which does  not
bring about the purpose of marketing in the public for which it is  intended
is a waste of money and time.

Further than that,  unless  one  learns  to  assume  the  viewpoint  of  the
eventual viewer of the copy, one can make quite destructive mistakes  which,
in addition to losses and waste in printing,  actually  destroy  income  for
the organization by preventing people from wanting or trying to acquire  the
products or services.

One must learn to shift from the viewpoint of a copywriter or layout  person
to the beingness of the eventual viewer. In  this  way,  one  can  estimate,
quite accurately, the impression that will be made by the pictures and  copy
when they are released to that public.

A thetan is quite capable of momentarily shifting his  identity  to  another
identity and getting an idea of the impressions or ideas that will occur  to
the identity shifted to. This skill is easily acquired. In a simpler  sense,
let us say one is writing a letter to Aunt Mamie. One can go on and  on  and
write the letter from the viewpoint of self, which  in  this  case,  let  us
say, is Joe. And the letter can be sent off and  totally  bomb  out  because
Joe had not the least concept of how Aunt Mamie would  view  his  letter  to
her. He may be later dismayed to find out that Aunt Mamie now believes  that
he has taken to drink. Actually, all he put in the letter was  that  he  had
attended a lot of parties lately. Now, you could say that he would  have  to
have an intimate idea of the character of Aunt Mamie before he could  assume
her viewpoint. But the truth of the matter is, Aunt Mamie is just  a  garden
variety, unmarried, middle-aged person who is  quite  critical  of  the  gay
side of life. It isn't vital to know much about the character of Aunt  Mamie
in order to assume her viewpoint, but it helps.  Joe  is  not  writing  this
letter with the tools of surveys but he knows from family  discussions  that
Aunt Mamie is a fairly straight-laced person. What he failed to do  is  read
his letter back from the viewpoint of Aunt  Mamie.  Had  he  done  this,  he
would have seen that his glowing descriptions of parties  he  was  going  to
lately and  having  a  good  time  at  would  have  registered  an  entirely
incorrect impression that he had entered upon a career of debauchery.

So what impressions do people get when they read copy or see posters or  are
exposed to ads? They get  the  impressions  from  their  own  viewpoint,  of
course. These people, by and large, do not exercise  the  tech  of  assuming
the viewpoint of the copywriter. That  is  not  part  of  the  requisite  of
watching TV or looking at  billboards.  It  is  the  responsibility  of  the
person conceiving, planning or executing or approving such copy or  pictures
to assume the audience viewpoint.

268



In this, one is helped by surveys. One has some idea of  what  his  audience
likes or doesn't like. The survey will permit  him  to  get  into  agreement
more quickly so as to get  his  message  across.  But  a  survey  is  not  a
substitute for assuming the audience viewpoint.

One can take a glowing, marvelous, beautiful, carefully  executed  piece  of
copy, design a marvelous, glowing, beautiful flier  and  then  leave  in  it
something which would  be  viewed  totally  incorrectly  from  the  audience
viewpoint. When the flier is issued, if it is not planned and done with  the
audience viewpoint in mind, don't be surprised if there is  a  sudden  crash
of stats when  it's  issued.  The  audience  might  get  an  entirely  wrong
impression out of it.

Let us give a case in point. Flag acquired new quarters as  an  addition  to
their already extensive quarters.  Somebody  wrote  a  poster  and  sent  it
through for approval and it came all the way along the line  without  anyone
noticing that, when  viewed  from  the  audience  viewpoint,  it  definitely
stated  that  Flag  had  moved.  This   would   have   caused   considerable
consternation. But Flag  hadn't  moved.  The  message  was  that  they  were
getting so much business that they had had to acquire new property quite  in
addition to their existing property  and  that  they  now  were  running  an
annex. And people also would have wondered, "Is this 15 miles away from  the
service center?" and had to be told that  it  wasn't.  But  the  person  who
ordered it, planned it, those who okayed and authorized it, all  missed  the
point that that poster all by itself could have cost Flag a half  a  million
dollars or more in lost business and could have started a black PR  campaign
of "See? They got chased out." And  all  of  this  because  nobody  anywhere
along the line assumed the viewpoint of  the  audience  and  looked  at  the
poster with a brand new, fresh eye to see what it actually was saying.  Now,
it didn't say anything destructive. It simply announced a new resort  hotel,
but it omitted to say that  Flag  was  still  there.  It  also  omitted,  in
boldface, where it was located.  This  new  resort  hotel  might  have  been
conceived to have been in North Africa.

Another example is copy which  said  that  the  NED  Course  was  now  being
offered to Class IV auditors, which meant that you  had  to  have  done  the
Class IV Course in order to do the NED Course.

One has to be aware of what impression the consuming public is going to  get
from any ad copy, picture, offering of any kind whatsoever.

There is more to it than just assuming the viewpoint. One has to assume  the
viewpoint as though he knows nothing whatsoever about the copy. One  has  to
un-know everything he knows about the copy and assume the viewpoint  without
knowing anything about the copy and then look at it. It  is,  as  I  say,  a
skill. This skill is possessed by any writer worthy of the  name.  Actually,
a trained writer can read one of his own stories from  the  viewpoint  of  a
future reader without knowing anything that is going to be said in the  next
two words. Then he can get an estimate  of  exactly  what  the  reader  will
think or see. Not only that, a well-trained writer  can  rewrite  the  whole
thing and then turn around and not know what it was in the first  place  and
what it was in the rewritten state and read it all over again, totally  from
the viewpoint of a future audience as though he knew nothing  about  it.  An
excellent composer can also listen to his  own  compositions  as  though  he
knew nothing about them and from the viewpoint  of  the  eventual  listening
audience.

There is another aspect of this which is of interest. A lot  of  people  who
wish they could write stories or music or ad copy or do some  creative  work
of this character are so solidly audience that they  can  never  assume  the
viewpoint of the originating professional. In other words, they're too  much
audience in the first place to assume the creative role. This shows up  when
you ask such a person what about a piece of music. He answers  you  with  an
idiot answer from a professional viewpoint, "I like it." To a  professional,
that is an idiot answer. An audience is no more articulate about  art  forms
or its technique than, "I like it. I don't like it." Really educated.

So for some who are trying to write marketing pieces or  design  or  present
or authorize them, one is already in an audience  viewpoint  and  has  never
assumed the

269



professional viewpoint in planning, writing or executing or approving.  This
shows up particularly on an approval line where the person on  the  approval
line cannot say what is wrong with the piece or what  has  to  be  corrected
about it but only can say, "I didn't like it." This is not very helpful.

So there are probably three  stages  one  has  to  go  through.  One  is  to
uneducate oneself as an audience, then take the viewpoint of a  professional
and do his job, and then reassume the viewpoint of an audience to  see  what
they will think about it or like or not like it. And  then  one  has  to  be
enough of a technician or creative professional to fix  it  up  so  that  it
will be accepted or liked.

What we're  examining  here  is  simply  the  facility  to  shift  from  one
viewpoint to another. It is also the facility to see something newly.

Unless this is mastered, people  on  marketing  and  promotional  lines  can
actually now and then cause a catastrophe.

There are two ways a catastrophe can be caused in marketing.  The  first  is
to not write anything at all and leave something unmarketed and  unpromoted.
The second is to market it or promote it in such a way  that  the  marketing
is destructive of the offering.

Both of these are a matter of failure to assume a viewpoint. The person  who
isn't writing up or marketing anything at all has not assumed the  viewpoint
of a professional. A professional marketing or copy or advertising  man  who
would sit around without marketing anything would be so ashamed  of  himself
he probably couldn't even look at himself in a mirror. He would  cringe.  He
would think of himself as an incompetent boob. Because he  wasn't  producing
anything, his morale would be in the basement. He would have nothing  to  be
proud of. If he assumed the viewpoint of a professional and found he  wasn't
doing anything, he'd get busy. He'd learn the tools of his trade  and  start
batting it out.

The second viewpoint, that of the eventual public  for  whom  the  piece  is
intended, has to be assumable at every  step.  Only  then  can  one  achieve
marketing items that actually do create want in that exact public for  which
they are intended and sell products and services.

One can practice this. Just walk around for an hour or two being Joe the  ad
copywriter and think what he would think and do what he would do.  And  then
open some magazines or walk through some stores and, for a couple of  hours,
just be a middle-class public and think  all  the  things  about  everything
that is seen that that public would think and see. And then go  through  the
same operation as a downstat bum and think and see  all  of  things  that  a
downstat bum would see. And then go around as  Mr.  Got-bucks  and  see  all
these things or even new and different things as  Mr.  Got-bucks  would  see
them.

One can keep up such actions until one actually can do it in the flash of  a
second. It's actually quite fun. It gives one a brand new  world.  In  fact,
one can have a lot of  new  worlds-one  for  every  public  he  assumes  the
viewpoint of. You would be utterly amazed.

The ability to do this is quite valuable. In  fact,  it  is  the  difference
between success and failure in marketing,

L. RON HUBBARD

Founder

      for the

BDCS:LRH:cb.gal.gm     BOARDS OF DIRECTORS



      of the

      CHURCHES OF SCIENTOLOGY

270



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste~

HCO POLICY LETTER OF I DE(

Marketing

      Hats

Copywriters

Dirs Prorno

Survey Hats

PRs   Marketing Series 15

Div 2

Div 6 PR Series 44

SURVEY BUTTONS ARE NOT THE MESSAGE

References:

      HCO PL 2 Sept. 79     Marketing Series 4, PR Series 36,

            SURVEYS ARE THE KEY TO STATS

HCO PL 7 Aug. 72R      PR Series 17R,

      Rev. 9 Aug. 72   PR AND CAUSATION

The book Fundamentals of Thought, chapter five: The A-R-C Triangle

The difference between survey buttons and the message in a promo piece  must
be crystal clear to those working in promotion and marketing.

The first thing to understand is that they are NOT the same thing.

The message is the communication, the thought, the significance you want  to
get across to an audience or public.

A button is what is used to get the public's agreement to hear the message.

Too often promo and marketing people seem to get all tied up  with  the  use
of buttons and thus they never put any message in the promo piece.  But  the
message is the whole reason for the promo piece in the first place!

Surveys can appear to not work  very  well  when  survey  buttons  and  only
survey buttons are used, as the result is messageless promo.

A survey is done so that you elicit response  and  agreement.  But  you  get
response because you've elicited agreement. You elicit  agreement  by  using
the right button. The button is the  R-factor.  It's  how  you  establish  a
reality with an audience.

To do a proper survey and to then use its results  effectively  requires  an
understanding of the purpose of surveys, and of ARC and  the  ARC  triangle.
It requires an understanding of what reality is.

One uses the ARC triangle in conducting a survey  initially  and,  following
that, one applies the ARC triangle in putting the survey results to use.

It goes like this: One communicates to  an  audience  (via  a  survey)  with
afjt'nity to find out what the reality  of  that  audience  is.  Reality  is
agreement as to what is. The reason you do a survey  is  to  find  out  what
that audience will agree with.

One then approaches the public with that reality in a  promo  piece  to  get
the public's agreement to  hear  the  message,  the  communication,  in  the
promo. And thus one raises  the  public's  affinity  for  the  item  one  is
promoting.

That is the simplicity of it. But it will only be simple to the  person  who
understands the ARC triangle. It is basic  Scientology  data  we  are  using
here. By improving

271



one corner of the ARC triangle, one improves  the  other  two  corners.  The
most important of these three related points,  ARC,  is  communication.  But
without  reality  or  some  agreement,  communication  will  not  reach  and
affinity will be absent.

Thus, surveys are done to get agreement. Dispel the idea  that  surveys  are
done for any other purpose. They're done  to  establish  agreement  with  an
audience.

In a survey, you question people to get their opinion on something-an  idea,
a product, an aspect of life, or any other subject. A button is the  primary
datum you get from this action. It is the answer given the  most  number  of
times to your survey question.

You ask ten or ten hundred people what they would most want or expect of  an
automobile tire and seven or seven hundred of them  tell  you  "durability."
That's the button. That's the reality, the point of agreement on  automobile
tires among that public. So you use that button with that public and  you've
established reality; you've got agreement and they will then listen to  what
you have to say about automobile tires.

Buttons have their use but we are not so much interested in them as  we  are
in MESSAGE. The message is the real essence of any promo piece. Buttons  are
just the grease to use to get your message through.

It would be a good idea for anyone with any confusion  on  these  points  to
work them out in clay. One should  be  able  to  make  a  clear  distinction
between these two terms, button  and  message,  and  to  view  them  in  the
correct relationship.

Once that distinction is made, it will be the end of messageless promo.

In its place we'll have promo that uses a button to strike  just  the  right
note of agreement and establish  a  reality  with  the  audience  and  then,
without fail, communicates, really DELIVERS THE MESSAGE, to what  is  now  a
receptive audience.

That's the secret of promo that gets response.

The first thing about it to understand is that SURVEY BUTTONS  ARE  NOT  THE
MESSAGE.

L. RON HUBBARD

Founder

LRH:kjm.gm

272



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 5 FEBRUARY 1982

Remimeo     Issue II

All Staff

Marketing Hats

Dirs Prorno Pubs

PRs

All Pubs &

      Comps Units

            Marketing Series 16

            PR Series 45

BOOKS AND MARKETING

Don't plan books to be printed without marketing liaison and don't  mishmash
and cross publics when marketing  books.  Don't  market  with  generalities;
marketing is aimed at specific publics. And above all,  don't  downgrade  or
put black PR in books. Also, don't hit at allies to upset them.  This  is  a
theta line. Make it theta all the way. If any black PR is done on it, it  is
only to blow enemies off it. But the theta in these works,  all  by  itself,
will blow the enemy away.

L. RON HUBBARD

Founder

Assisted by

Special Marketing Pgm Ops

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:SMPO:bk.gm

273



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I I MARCH 1982

Remimeo     CORRECTED AND REISSUED 21 MAY 1982

Exec Hats

Finance Hats     (Correction in this type style)

Marketing Series 17

Finance Series 30

PROPORTIONATE MARKETING

In marketing, one must always push harder toward the largest bulk of future
business. It is peculiar to Scn marketing that you have to push hardest at
the lowest levels to make the upper levels come off.

This gives you a sort of scale that tells you the target proportion of
finance and effort to allocate in marketing.

For Scn and types of orgs, it goes like this:

Heaviest: Raw public not yet into Scn.

Next heaviest: First services they will take.

Next heaviest: Into HGCs and Academies.

Next heaviest: To SHs.

Next heaviest: To AOs.

Next heaviest: On to Flag.

You can also draw a scale of this for individual business or orgs of any
class.

It can be done simply by how much money and personnel and pieces are to be
devoted to each point of the scale.

Failure to do this gives one faltering stats as the flow is not being
proportionally marketed. Done correctly, one gets a very heavy and quite
even flow up the Grade Chart. Doing it unevenly, one gets booms,
depressions, and instances of cannibalizing.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm

274



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 13 APRIL 1982

Orgs and

      Mgmt Only

NOT BPI

Marketing Series 17-1

PROPORTIONATE MARKETING ADDITION

How to create a  REAL  BOOM  as  per  a  recent  breakthrough  on  marketing
(proportionate marketing), the heaviest outflow must be to raw public.

The  merchandise  one  markets  to  raw  public  is  books.   Given   enough
booksalesand providing the orgs don't have iron bars across their  doors  or
hide-heavy inflow on orgs becomes inevitable.

While there are other problems in achieving the heavy outflow of books  into
public hands, one factor above all has the greatest influence  in  affecting
this.

The one factor is called "order of magnitude." This means how large  or  how
small something is in relation to other things.

When one conceives the wrong order of magnitude, all else can fail.

This Earth civilization is a great example of  wrong  orders  of  magnitude.
They think small. Even microscopic about too many  things.  How  much  water
does California need? Count on Earth think to  underestimate  it  IOOX!  The
result is deserts, lack of food, crazy worries about "overpopulation" (on  a
grossly underpopulated planet).

Earth engineers apparently cannot conceive of the order of magnitude of  the
engineering works required. You'd think they were playing with mud pies.

This underestimation-wrong orders of magnitude-is ingrained in  the  present
culture. Typical of losers.

So let's not make the same mistake. Let's get rid of the cultural habit.

The order of magnitude of marketing and booksales is  SO  much  higher  than
Pubs Orgs, orgs, Management or Marketing has ever  conceived  of,  that  the
comparison is a fly to an elephant.

Unless this think is adjusted, Int stats will go on  limping  in  low  range
and clearing a planet will be far off.

Marketing is a game called "getting one's share of the  market."  Every  big
manufacturer plays it.

Pubs Orgs, orgs, Management and Marketing must adjust to a proper  order  of
magnitude on the effort and action it will  take  to  adequately  flood  out
books.

Here is the question to answer: What would one have to  do  to  capture  our
share of the world book market?

To do our job, one would aim at capturing at least 5% of all books  sold  in
the world. And aim for 10% and up.

275



It's a question of thinking in proper orders of magnitude.

If Int stats are to really boom (and that means every org's stats) then,
one has to work to capture our share of the world's book market.

Got it?

We've got the product. The demand is provenly there.

Well, get going!

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:bk.gm

276



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 15 APRIL 1982

Orgs and

Mgmt Only NOT BPI

Marketing Series 18

PLANETARY DISSEMINATION

There  is  often  an  omitted  step  and  sequence  part  in  marketing  and
Scientology management.

It is a shortfall. And must be given attention.

This planet is an "almost"  planet.  It  almost  has  airplanes  (save  they
crash). It almost has space flight (but it costs $100 million  every  launch
and carries no one outside the moon orbit). It  almost  has  radios  (except
you only listen to your own city).  It  almost  has  education  (except  the
students taught can't do their jobs).

This almost factor is visible on every hand.  The  best  example  is  almost
governments (except that they have lost  control  and  allegiance  of  their
people and cannot even manage their money).

This factor  probably  comes  from  several  things.  (I  will  not  mention
suppressive ones as I am in a kind mood.)

One of these factors is the short life span. Of  all  civilizations  around,
Earth, at 70 years average, is the shortest.  This  makes  it  hard  to  get
anything really started-one has an almost life. This also makes  for  hectic
change-a frantic feeling of  it  is  too  late  already.  Or  apathy-why  do
anything at all?

But regardless of these factors, there is no excuse to  almost  disseminate,
almost market, almost run orgs.

We must not continue to omit the sector of planetary dissemination.

The cycle currently-and ornittingly in vogue-is  only  to  do  those  things
that immediately affect the org GI.

Admittedly this is vital. On this planet  the  only  real  crime  is  to  be
broke. But the shortfall think is affecting this GI  and  reducing  it  very
greatly.

There  is  a  correct  sequence-it  goes:   planetary   dissemination,   org
procurement  dissemination,  high  bodies  in  the  shop  and  service   and
resulting GI.

By varying or changing or omitting parts of that sequence, trouble  is  made
for an org.

We have seen orgs only sell and not deliver. Their GI fails at last-they
crash.

Well, there are other ways orgs can be crashed.

Suppose one sells books only to people who come into the org. Well, this  is
backwards. If you sell books to raw public,  a  certain  percent  will  walk
into the org. Another example-Pubs Orgs market to in-org public. If they  do
only this, their market shrinks-and they can  do  this  in  several  ways-by
omitting to publish basic books is one.

Until its publisher  (Grosset  &  Dunlap)  was  gotten  onto  lately,  DMSMH
paperback was not in most bookstores. Yet no one noticed.

277



The best ambassadors to the raw public are books and cassettes. Sell  enough
of them to raw public and a percent will come into the org.

Yet, aside from an occasional DMSMH or radio or mag ad (very  small),  there
is no Pubs Org or Management push on books to raw public.

Not only this but a black PR item has been put  out  and  believed  that  "a
radio ad for DMSMH is too expensive. It costs $20 of ads  to  get  a  person
into Div 6." What  a  mixed  outpoint!  DMSMH  was  not  even  in  many  wog
bookstores. But it indicates that the think  was  that  the  only  value  in
selling DMSMH was to get bodies in the shop at once!

DMSMH is not an org come-on leaflet. It was written to  begin  the  clearing
of a planet. And it has made some progress.

But let's look at this-here Dianetics and Scientology sit, a total  monopoly
on effective handling of the mind and spirit-no other even close  rivals  or
competitors at all-and a group is selling to in-org public? Preposterous.

Some trainees used to  hoard  the  tech-to  be  an  only  one.  Is  somebody
hoarding Dianetics and Scientology and not letting  it  flow  out?  Not  me,
brother, not me.

What's missing here is the concept of planetary dissemination.

Here we are in a short-lived planet. The  Reds  and  Democrats  are  getting
ready to hit an atomic button. And a yellow dwarf star like  Sol?  Oh,  come
on, man. A yellow dwarf is not the favored star for civilizations.  No  way!
They're a last stage impending catastrophe-a yellow dwarf blows up!  (Before
anyone panics, a yellow dwarf lets out radio signals strong enough to  wreck
radio for several centuries before they bang and  this  one  may  have  some
life left in it.)

But what I'm saying is, let's get this in perspective. Let's  put  the  real
values on it and quit fooling.

ONLY Clears and OTs will survive this planet!

And we're the only ones that can make them.

The order of magnitude of what it takes to  do  planetary  dissemination  is
not even just now at this writing being conceived of. In fact Pubs Orgs  are
not even thinking of raw  public  marketing.  And  that  is  sure  an  awful
shortfall.

The majority of three billion people out there  have  never  even  heard  of
Dianetics and Scientology, much less read a book!

No, it's not the enemy. We cream them whenever they raise their heads.  It's
simply just not thinking in a correct order of magnitude.

What would one really have to do to clear this planet?

So all this PL is about is just that-planetary dissemination. It simply
points out

one omit. At least conceive of it.

      So let's go!

L. RON HUBBARD

Founder

      Adopted as official

      Church policy by the

CSI:LRH:bk.gm



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

278



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 MARCH 1982

Remimeo

Finance Series 31

Marketing Series 19

Executive Series 35

EXECUTIVE SUCCESS

"The whole story of marketing is told in just a few words:

ONE FINDS OR STRENGTHENS OR CREATES A DEMAND.

"The whole story of economics is told in a few words:

ONE SUPPLIES OR DOES NOT SUPPLY A DEMAND AND GETS ADEQUATELY PAID OR DOES
NOT GET PAID FOR IT.

"The speed with which one can collect information, debug, write immediate
bright, applicable, doable programs or evaluations on each area that will
handle marketing, economics, delivery and collection and, above all, the
speed with which one can get out letters, despatches and telexes based on
the programs and get real dones on them back determines the volume of
income in any given time period.

"And that's the full essence of executive success."

L. RON HUBBARD

Founder

Assisted by

Operations Chief

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:OC:kjm.gm

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Executive Series 33.]

279



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 AUGUST 1970

Remirneo    Issue I

Dept I Hat

HCO Area Hat

ES Hats

Dept 13 Hat

Dept 14 Hat Personnel Series I

Qual Sec Hat

PERSONNEL TRANSFERS

CAN DESTROY AN ORG

It is an observation  that  personnel,  by  critical  definition,  is  "that
function which creates havoc in one place in an org by  trying  to  solve  a
personnel mess in another."

Example: We have just gotten in our Div 6. It has two people.  The  org  has
been suffering for lack of Div 6 actions. Now we've finally got  two  people
there and they are being trained up. Meanwhile there is a shortage of  staff
in CF. Personnel "solves" the CF problem by transferring those in Div  6  to
CF in Div 2. There goes any progress on Div 6.

By solving one problem, another is created.

Also there is the fact that it takes a while to train someone on a post  and
get the post in order. So  rapid  transfers  defeat  any  post  training  or
competence.

We call this action "musical  chairs."  That  is  a  game  in  which  people
rapidly change positions.

So these transfers defeat not only the org on the  third  dynamic  but  also
the individual on the first dynamic.

An earlier action similar to  this  went  on.  Then  whenever  Tech  got  an
auditor trained up, Personnel would transfer the auditor to an admin post.

As the auditor was tech trained and not  OEC  trained,  you  began  to  find
auditors  in  charge  but  they  didn't  have  any  admin   training,   thus
shattering, by ignorance, the org form and defeating the org's production.

I've just seen a case where a staff member went on full-time training  Class
VI (very expensive) and was made HCO ES on his return. But had never had  an
OEC.

Using the Tech Divs as a "personnel pool" and taking tech people  for  admin
posts thus defeats  twice-defeats  the  org  as  a  producing  activity  and
defeats its form by not training people in admin (OEC) when they  are  going
to be used in admin.

These personnel errors (or crimes) cause every staff  member  to  suffer  in
terms of lowered income, lowered pay, lowered facilities, lower  success.  I
doubt there is any org where these errors (or crimes)  are  not  current  at
this writing.

To give the HCO ES candidate full-time training on the  OEC  or  FEBC  would
make sense. Not Class VI! If you reverse it, you'll  see  what  I  mean:  we
give a new staff member an OEC only and put him  onto  auditing.  Of  course
that would be disastrous. It's just as  disastrous  the  other  way  around-
taking an auditor who is a Class VI but not an OEC grad and making  him  the
HCO Area Sec!

There  is  an  optimum  executive  who  is  both  an  experienced,   trained
administrator (OEC and time on org posts) and an auditor. But an  org  would
have to be in high production  with  lots  of  auditors  before  that  could
happen.

280



ERRORS

These errors are of long duration. They happen over and over.  And  they  do
more to destroy an org than any other action.

A. Making a hole in one place to remedy a hole in another

B. Training a person for tech but not admin and putting him in admin

C. Using the Tech Divs as personnel pools from which to man other divs

D. Rapid shifts of post

E. Leaving areas in an org unmanned.

SOLUTIONS

The reason why these things are done all come under the heading of  failures
to recruit and properly train.

Org expansion often gets pinned by false economy in personnel. "If we  hired
anyone else, we would get less pay."  This  completely  overlooks  the  fact
that if the org doesn't hire more people it will go broke. An org has to  be
of a certain size to be solvent; it has certain basic expenses such as  rent
which makes it cost just so much to run. Yet  personnel  can  be  so  poorly
thought out that the org is kept at starvation level.

I heard one not long ago which takes a prize, "But we don't need an  Advance
Registrar. We can't afford one  anyway.  You  see  we  have  pcs  booked  in
advance for ten weeks already as we  don't  have  enough  auditors,  so  why
should we have any further promotion?" An idiot  smile  went  with  this  of
course. Backlog became "advance registration."

Orgs in various ways fix their income and prevent its  increase.  First  and
foremost of these is personnel.

In every org where I  have  acted  as  Executive  Director,  I  have  had  a
personnel procurement problem. In  each  case  the  problem  was  internally
created. First I would get, "Well, units are low .  .  ."  or  "Nobody  ever
applies." I would take it from there. I finally became very clever at  these
impasses. "What," I would ask the Receptionist,  "do  you  tell  people  who
come looking for a job?" Cunning. "Oh them!" I would get, "I  tell  them  we
aren't hiring of course." I would set up a line from a  specially  appointed
personnel person to me only and would shortly have  enough  people.  I  have
run an org from eight people to sixty-three in thirty days and its  GI  from
E50 to F-3,000 in sixty days. Just by doing  the  usual.  It  created  awful
problems of course, like auditing rooms, classrooms,  hand  grooving  people
onto posts-it was busy. The favorite graveyard calm, so adored there  before
that, got shattered to hell!

I concluded many times then and conclude now that it is a characteristic  of
an org to refuse new personnel and to keep them  off.  In  approaching  this
problem in an org, I am afraid experience has taught me to begin  with  that
assumption and handle it from that viewpoint.

So I normally set up a line that can't be stopped and get  people  on  post.
Then I force in training on posts. And I  personally  inspect  and  talk  to
every section every day about what they need and how it's going and keep  up
their section production.

LRH Comms tell me they can't get execs to inspect  their  areas  daily.  And
personnel shortages  show  that  others  do  not  blow  the  lines  open  on
recruiting and even prevent handling,

So here is one area where I do some things  in  managing  a  production  org
that not many others do:

281



1.    Force recruitment

2.    Train on post

3.    Daily inspection and comm with everyone in the place in his post area

4.    Concentrate on section and individual production

5.    Let people finish the job they are on.

The result of all this has uniformly  been  sky-high  stats,  sky-high  pay,
huge reserves and excellent tech produced.

So these are the magic solutions.

I do NOT empty out tech to fill admin. I do NOT encourage  transfers.  I  do
NOT create problems in one area by  transferring  to  another.  I  will  NOT
accept that no one applies for jobs.  And  I  don't  wreck  one  project  by
grabbing people off it to start another. I FIND NEW PEOPLE.

IMPOSSIBILITIES

Behind every "impossibility" lies some great big  WHY  which  if  not  found
keeps things messed up. One  area  that  "couldn't  get  any  auditors"  had
expelled 60% of the field from the church! Another area  had  dismissed  50%
of staff every time the income dropped. Another area  cut  the  staff's  pay
very low and then made it go lower each time the gross income fell.  Another
"never could find the right people."

Sometimes internal squabbles are given a much  higher  importance  than  the
org itself.

Some areas use "social acceptability" instead of stats to handle personnel.

Whatever the reason an org isn't getting on, it is internal. It  isn't  some
other org or some senior  management  body.  It's  right  inside  that  org.
Further, it has to do with personnel mishandling.

Any org at any time has not given as much quantity of service as the  public
demanded. If you continued to expand at the  rate  of  demand,  giving  very
high quality of service mind you, the org would expand to hundreds  or  even
thousands of staff members.

Somewhere, when that doesn't happen, personnel mishandling has cut  off  the
expansion.

So when we look this  over,  we  find  that  quality  of  delivered  product
determines how much it will be in demand and that the only thing which  will
limit an expansion to meet that demand is  personnel  procurement,  training
and stability on post, getting the staff to produce and holding the form  of
the org and making it go.

When personnel commits the  errors  (or  crimes)  mentioned  here  and  when
management fails to do the I to 5 listed above that I do in  an  org,  there
will be a halt.

True, an org is complex. True, quality is hard to maintain.  True,  one  has
to work. But unless personnel procurement and handling is IN, all else  will
fail. So that's the weak spot.

An undermanned division will empty.

An undermanned org will pay badly and go down.

The point to handle is personnel.

L. RON HUBBARD

Founder

LRH:sb.gm

282



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 AUGUST 1970

Remimeo     Issue 11

Dept I Hat

HCO Area Hat

HCO ES Hat

Dept 13 Hat Personnel Series 2

PERSONNEL PROGRAMING

If personnel are not programed, you get chaos.

The subject of personnel carries with it always  the  subjects  of  training
and experience and suitability.

Dept 13 has been created to permit personnel to be "enhanced" or improved.

This is done by programing.

HCO should make known what it will need in the org in  the  next  year.  How
many of what kind it now has.

Dept 13 must work out what programing is now needed. It posts a board,  puts
the names on it and sees that part-time study will  occur  and  be  followed
for the next post. It sees that this will be made.

HCO by looking back over some period of expansion will be able  to  forecast
what will be needed more easily. Anyone in the org is usually aware  of  the
undermanned points that exist and the unfilled posts as they  get  hit  with
them continually. So if HCO doesn't know what these points  are  by  record,
it is easy to do a survey.

With an inefficient HCO which has not recruited and programed,  the  org  is
already starting well behind the gate and is already  howlingly  undermanned
and undertrained. Yet to solve all  this  by  instantaneous  transfers  will
unmock the lot.

The RIGHT way to do it is to

1.    Count up what you have.

2.    Figure out where they will be promoted to.

3.    Program them on part-time training and

4.    Recruit.

5.    When recruits are on, get them genned in fast on the lower posts so
they can operate.

6.    Shift the programed people to the posts for which they have been
programed.

7.    Begin to train up the recruits with part-time programing.

8.    Recruit.

This does not mean you shift every post in the org. It does mean your more
experienced people are the ones that go up.

283



Various rules go with this:

TRY TO KEEP TECH TRAINED PEOPLE IN TECH.

TRY TO TRAIN ADMIN PEOPLE FULLY FOR ADMIN.

There are ways to waste enough training time to  crash  your  org.  Train  a
person to Class VI, put him in Public Divs. Train up a PES and transfer  him
to tech training. All sorts of goofs can be made in programing, all of  them
costly to the org, all of them defeating the objects  of  Personnel  Dept  I
and Enhancement Dept 13. One obvious way is to train  somebody  up  with  no
contract or note. But the main one is not to program at all and just  rattle
around as a total effect.

Part of the action by Dept I is to beat down all the reasons  why  we  can't
hire anyone. I recently reviewed  an  area  where  personnel  problems  were
desperate. Five to ten people a week were applying. Only  one  to  two  were
"suitable," whatever  that  meant.  That  ratio  is  wrong.  Eighty  percent
unsuitable? Ten percent maybe, not 80%.

The area Dept 13 has to beat down is arranging work so  no  part-time  study
can occur. Only about 20% of a staff won't study.  Nearly  90%  will  handle
their post if it's overloaded rather than study, which is okay. But  putting
somebody on Day and Foundation and putting one man on a  ten  thousand  name
address section to keep it up and in use are the usual reasons for no  study
time.

This comes together between Dept 1 and Dept 13  AND  IS  AN  INDICATOR  THAT
DEPT I IS GOOFING ITS RECRUITING ACTIONS.

Dept 3, Inspections, or the Executive Secretaries or  Secretaries  can  also
foul up both Dept I and Dept 13. By not inspecting and not  running  on  and
by stats, these salt the org down with idling people. So you  see  Dept  22,
let us say, with six people and no production while the Treasury Sec has  to
work every night to handle an undermanned Dept 8.

The answer is stats, honest stats for everyone.

You can get a situation where you have enough people in  the  whole  org  to
run an org but a third are overloaded and the rest dev-ting  around.  That's
where there is no stat watching and no daily area inspections  or  executive
interest.

I know of one org that has forty-four on staff doing the work and  potential
service load of about seventy-five. Naturally they can't take  time  off  to
study so they can't be programed. Yet the stat situation is not  watched  or
used nor is the place inspected so the production is about  a  twenty-person
org and no funds exist to pay forty-four much less  seventy-five.  The  clue
is that it's all manned except for Tech! The customers are there in  droves.
They can't get service. So no pay.

It is  silly  situations  like  this  that  occur  when  personnel  are  not
programed. Two years ago the above org did not train  anyone,  worked  as  a
clinic and would not even audit staff. All its  auditor  contracts  expired.
HCO and the OES sat there in a fog and let it happen. There was no  Dept  13
to program anyone.

So here is a new angle to the recruitment problem. HCO  is  faced  with  the
vital necessity of recruiting trained auditors  NOW.  Yet  at  this  writing
hasn't even sent around a bulk mailing to ask field auditors to drop in.

DEPT 14

So this is where Dept 14  gets  into  the  act.  It  is  a  problem  in  org
correction. If even Qual is empty, it's all an  OES  function.  The  correct
solution is to force recruitment of trained auditors, force  recruitment  of
ordinary applicants, and program it in Dept 13 to train up new  auditors  as
well.

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THEREMEDY

You should realize that no matter how rough the problem looks,  it  involves
recruitment and programing. Instant transfers  can  utterly  wreck  an  org.
Yet, inevitably, transfer! is all you hear when a solution  is  required  to
org production failures.

I think this comes in from the world of "psychology."  Maybe  labor  unions.
If a man isn't doing well on a post you transfer him. It assumes  that  each
person has "aptitude." It never changes so you fit the post  to  the  person
by finding a new  post.  That's  really  nonsense.  You  can  actually  more
profitably fit the person to the post.

Only when programing has failed  (or  doesn't  exist)  does  one  resort  to
transfers to solve personnel problems. Of course  experienced,  able  people
get promoted. But unless they are programed and trained, watch out!  He  was
a fine CF Clerk and a lousy Dissem Sec. Why9 It isn't his personality.  It's
that nobody trained him to be a Dissem Sec. He wasn't programed.

It's cruel to promote a person and let the guy fall on his head.

Transferring because somebody doesn't do  well  is  discipline,  it  is  not
"adapting people to jobs they can handle."

There is quite an awful jolt in losing one's post. Never think there isn't.

Promote-demote occurs when the person is not programed.  Therefore  the  new
Dept 13.

Therefore this Personnel Series.

L. RON HUBBARD

Founder

LRH:rr.rd.gm

285



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 AUGUST 1970

Remimeo     Issue III

Dept I Hat

HCO Area Sec Hat

ES Hats

Dept 13 Hat

Dept 14 Hat Personnel Series 3

Qual Sec Hat

      RECRUIT IN EXCESS

1 have always followed a doctrine of hiring or recruiting in excess.

There is a heavy turnover in personnel. There are many stresses in human
society.

You lose people from all ranks, particularly toward the top. Early  on,  for
instance, 1 never could keep a secretary. Because she'd been  my  secretary,
she could get a big-pay job (one of them $ 10,000 a year) from a bigwig.  Or
some young man had to marry her (and divorce her when she was no  longer  so
glamorously placed). Anyway she was trained  and  had  become  an  executive
secretary. The only one 1 know of who didn't go  UP  had  a  commie  husband
making sure she went down.

So the higher they go

A.    The more altitude they have that has market value, and

B.    The more stress that hits them and blows them apart.

This is true of auditors. You'll lose three times as  many  Class  VIlls  as
you lose Class V1s. You'll lose three times as many  Class  VIs  as  you  do
Class IVs. Etc. And you'll lose more auditors than you will admin people,

Therefore you have to be very careful indeed who  you  send  for  full-time,
expensive technical training. You have to ask these questions:

A.    Is the candidate a uniformly good HDC auditor?

B.    Is the candidate scheduled for a technical post?

C.    Is the candidate a fast study by record?

D.    Is the candidate uninvolved with anti-Scientology or non-Scientology
connections such as wife or family?

E.    Is the candidate out of personal debt?

F.    Does the candidate have a good record of keeping his promises?

G.    Is the candidate willing to sign a new contract and note?

H.    Have the candidate's stats been high on post or especially in
auditing?

1.    Does the candidate stay with the org and not go into franchise?

If the answer to all these is emphatically yes there is a  chance  that  the
org will benefit. If any of these are no, or if any  are  even  maybe,  then
don't do it. Find somebody who will be able to get a YES on every one.  They
are more numerous than you suppose.

This is also true for highly  specialized  admin  training.  The  same  list
except for B (and is scheduled for an admin post  and  is  a  candidate  for
higher org admin training) applies rigorously.

286



Failing to establish these things first and getting it all  understood,  you
can find yourself with  all  such  funds  expended  and  no  highly  trained
personnel either.

LOSSES

The percentage of loss or incompetence discovered is hard to  establish  but
is remarkably high. In the decade from  1960-1970,  personnel  turnover  was
quite heavy even in orgs that were booming.

During that time staff staff auditing  was  at  a  minimum.  The  orgs  were
jittery under psychiatric inspired attacks. Dianetic tech  was  not  in  use
until mid-1969. From 1966 to 1970  Scientology  tech  was  quickie  and  the
Grade and Class Chart not followed. Pay, after  I  ceased  to  be  Executive
Director, was low. Therefore you can make a list of things that have  to  be
in hand to reduce heavy turnover.

1.    Audit staffs well and train them for Staff Status.

2.    Keep PRO area control in, in areas and in the org.

3.    Use Dianetics heavily and teach it well.

4.    Keep all Scientology tech materials in action with tapes and all
materials and books in full use, well used, well taught.

5.    Keep personal and sectional, departmental and divisional stats high.

6.    Keep the org recruited up.

7.    Keep personnel programed.

8.    Hold the form of the org.

9.    Deliver an excellent, flubless product.

10.   Work for volume of training and processing as the org's product.

As recruitment was also neglected and as  contracts  expired  without  being
filled, we can add

11.   Overrecruit always.

If you have an idea you will need twenty people in the next six months,  you
had better take on at least forty and you will have your twenty. And  double
is a low figure.

LINEAR RECRUITING

A firm hires a girl to write their letters. After  60  days  they  find  she
doesn't do her job. So they get rid of her and hire another. And in 90  days
find she can't do her job. So they fire her and hire another.... That's  150
days of no correspondence. It's enough to ruin any firm. It's costly.

SIMULTANEOUS HIRING

A firm hires three girls feeling they need one.

At the end of 150 days they have one girl.

But they had 150 days of correspondence. And a profit.

The economical answer in terms of saved profit is keep  up  the  production.
Don't fixate on personnel. Always do multiple personnel procurement.

In actual practice when you do this, you seldom fire anyone. They  blow  off
or they were actually needed.

If people are let go, you don't just brush your hands of it. You in an
organization

287



can let them continue being programed while they hold an  outside  job,  fix
them up, get them trained and hire them later.

Modern society is very loose  footed.  The  state  pays  them  not  to  work
(apparently only). The society is suppressively oriented. The push and  pull
of personal relationships is poor.

You are edged in upon  a  society  of  dying  cultural  values,  encroaching
drugs, threatened annihilation.

No one out there feels very safe.

This insecurity leaks into the org and people  get  pushed  around  or  push
people around.

Real or fancied wrongs occur.

People are rather timid really.

And the more the society buys the idea it's a world of tooth and  claw,  the
more it becomes so.

All this reflects into the picture of personnel.

You have to really work to keep orgs manned and trained up.

You do this by

A. Running a very good org

B. Delivering an excellent product

C. Keeping a steady inflow of new personnel

D. Training and processing well those you have.

If the I to I I are in, in  the  org,  then  EXPANSION  occurs  and,  losing
hardly anyone, you have to scramble to keep up.

As the INCOME OF THE ORG DEPENDS  WHOLLY  ON  ITS  GDSes  (Gross  Divisional
Statistics) and as these are wholly under the control of the org, then  it's
obvious that the only finance trouble or pay trouble an org can have  is  by
undermanning, undertraining and underproducing.

No great international GI slump has ever occurred unless there  has  been  a
long GDS slump. So it's obvious that an undermanned  org  is  asking  for  a
cave-in.

Much of this has been learned in recent years.

At this writing there is little or no recruitment by HCOs  and  training  of
staffs could be better.

But the lessons we learn, we learn and apply.

And so it is with personnel.

L. RON HUBBARD

Founder

LRH:rr.rd.gm

288



HUBBARD COMMUNICATIONS

      Saint Hill Manor, East Grinstead,

HCO POLICY LETTER OF 30 AUG

Remimeo

Dept I Hat

HCO AS Hat

ES Hats     Personnel Series 4

Dept 13 Hats

Dept 14 Hats

      RECRUITING ACTIONS

The first thing one has to handle in recruiting is  the  willingness  of  an
org staff to have new people as staff members.

New people tend to cut  pay  down,  they  stretch  internal  staff  services
thinner, they are not yet "with it"  and  create  a  lot  of  dev-t.  Ethics
problems rise. Deadwood goes overlooked. Staffs have a  certain  esprit  and
61an and aren't all that willing to confer it.

Some orgs plug along  on  a  fixed  inadequate  gross  income,  refusing  to
recruit, losing old staff by contract expiry or graduating  to  higher  orgs
or general wear and tear.

They have a sort of horror of green staff members.  One  can't  blame  them-
files get  upset,  comms  vanish,  body  interruptions  go  high,  one  gets
overloaded just handling the dev-t generated.

BUT THERE IS A WAY TO HANDLE ALL THIS.

HCO PL 4 Jan. 66, PERSONNEL-STAFF STATUS, and Staff Status 0, 1, Il and  III
take care of these faults.

All this is programed in LRH ED 121 INT, 29 Aug. 70, STAFF TRAINING PGM  NO.
2, which is a part of this series.

Taking on new staff has to be done. Otherwise the org will not expand;  that
which stays the same shrinks and the org faces collapse.

So recruitment is a vital necessity.

To overcome any objections, one makes sure that HCO  PL  4  Jan.  66,  STAFF
STATUS is IN. Otherwise the place becomes a maelstrom. It is  gotten  in  by
the LRH ED, STAFF TRAINING PGM NO. 2.

RECRUITING POOLS

HCO PL 24 June  1970  lists  proper  personnel  pools  for  a  Dianetics  or
Scientology organization.

This covers areas for recruitment and gives ways to do it.

The main thing, the most important thing, is that IT  HAS  TO  BE  DONE.  It
doesn't just happen.

Any organization or activity has to recruit and it has to train.

The dream of the industrialist and even the  modern  agriculturalist  is  an
activity which is totally automated  (automatically  run  by  machinery  not
people). The more "overpopulated" the world becomes, the  more  the  bigwigs
dream about automation. 1 had a psycho  editor  once  (cured  him  of  being
psychotic but never cured him of being an  editor)  who  used  to  dream  up
civilizations where the machines were even repaired by machines.

289



The lovely part of machines is that they are supposed to  be  invariable  in
action. Each part meshes smoothly with every other part.

If you conceive of a machine made out  of  human  beings  instead  of  metal
parts, you see at once that the parts are not exact nor are  they  perfectly
adapted to each other.

This is the fact about beings that  dismays  the  industrialist.  The  parts
don't fit, they vary, they have ideas of their own.

The "parts" also drop out of the "machine."

Any old-time personnel system seeks to fit the  people  into  the  "machine"
composed of people or fit the "machine" to the people.

All these systems were based upon a psychological principle that  no  person
ever changed or got better.

Also the idea was that people's social order as it  existed  was  the  basic
social order. (That the existing departure from  the  ideal  scene  was  the
ideal scene. See the Data Series Policy Letters.)

Thus it  was  conceived  that  an  organization  composed  of  human  beings
required perfect human beings or it wouldn't run at all. But  there  are  no
perfect human beings.

In "straightening an organization up" there is a belief that  one  must  get
rid of all its imperfect beings.

And this can go so far as to refuse to try out or let in any beings who  are
not perfect.

When things get to this pass, one is looking at the probable death of an
org.

In real life only a small percentage of people are "unsuitable."  They  come
in four general classes:

a.    Those who are destructively anti-social (suppressive persons).

b.    Those who are connected with the destructively anti-social outside
the org (potential trouble sources).

C.    Those ill, diseased or in some way unable to function.

d.    Those who are active enemies sent in by active enemies to harm the
org.

Anyone hiring  should  be  familiar  with  the  HCOBs  covering  suppressive
persons and HCOBs and policy letters concerning potential trouble sources.

He should also be familiar with testing procedures:  (1)  E-Meter  tone  arm
position and needle manifestation (HCO  PL  26  August  66,  Ethics  E-Meter
Check), (2) IQ tests, (3) aptitude tests, (4) leadership score,  (5)  Oxford
Capacity Analysis, (6) The Chart of Human Evaluation (Science of Survival).

These skills and procedures are part of the Hubbard Consultant (HC)
Checksheet.

Using this technology, one minimizes the entrance onto staff of persons  who
will upset the place.

If no reasonableness (faulty explanations) enters into  this,  the  10%  who
would enter disturbance into the place are eliminated.

If this barrier is put up and held up, then the people brought in  on  staff
will not upset anything.

Following the Staff Status procedure, one grooves them in.

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And all is well.

If this procedure is NOT followed rigorously, the org will  become  educated
into resisting new staff or recruiting. If it IS  followed  rigorously,  the
place will smoothly expand.

BEGINNING HIRING

To begin a  cycle  of  recruitment,  one  must  first  apply  all  the  test
procedures to all on  the  existing  staff  and  compare  it  to  production
records.

This is important.  In  one  case  where  scores  of  green  personnel  were
recruited, the place was very upset. The whole organization blamed  the  new
recruits. BUT THE TROUBLE WAS COMING FROM THREE  PERSONS  ALREADY  THERE-two
were on drugs, the third was a suppressive  of  a  classic  kind  and  these
three blocked all training and processing of the  new  recruits!  The  three
eventually blew off, people got trained and  processed  and  the  whole  org
went upstat. There were no undesirables amongst the new  people!  They  were
just so battered around and left so untrained that they were  made  to  look
bad!

Any org which has lost a lot of staff and has failed to recruit  had  hidden
in it someone who should have been screened out!

So one is looking for a small percentage. He is NOT trying to find perfect
people!

With that  small  percentage  screened  out,  one  can  make  recruits  into
valuable staff members.

Whenever I see "80% were  unsuitable"  I  really  raise  an  eyebrow.  Wrong
percentage. When I see "we dismissed 50%" 1 raise the other  eyebrow.  Wrong
percentage. Ten percent yes. Fifty to 80% no.

So when I see figures like that, I know that the screening is  taking  place
in the wrong area. Somebody already IN is blocking others  out  and  getting
rid of them.

The test is not PAST. The test is what  the  E-Meter  reads  (no  questions,
just what is the read). What's the  IQ,  leadership,  aptitude  and  Oxford?
Where does he sit on the Chart of Human Evaluation?

If that's all okay  and  the  personnel  is  IN  now,  what's  his  stat  of
production? What's his study stat? What's his case gain?

And that handles that. Without much trouble. Without  opinion.  Without  any
oppression or threats.

THE CHARACTER OF MAN

You see, Man is not a savage beast at all. He is rather timid. He is easily
alarmed.

His symptoms of revenge grow out of his fears.

His basic nature is social, not anti-social. He is not an animal.  He  likes
to communicate. He actually would like to be  friends.  Rebuffs  and  upsets
and failures to understand him and efforts to harm him  can  make  him  hide
under a mask of aggression. And this when it gets too bad and  is  wrong  is
apt to drive him crazy.

If he isn't crazy, he is decent and tries to do his best.

That he put a foot wrong is unimportant. Will he put his foot right? is  all
I ever care about.

291



Discipline and punishment and threats can go far too far and can  upset  him
very badly rather than crowd him "into line."

When madmen are  amongst  him  he  responds  badly,  is  upset  and  becomes
turbulent. Protected, he acts well and behaves well and is constructive.

A lot of experience is talking. I've even made great  crews  out  of  people
the government had made into convicts.

A very few have gone so wrong that only huge  amounts  of  processing  would
ever repair. In personnel recruiting and training they have  to  be  audited
so long that they are only cases, not personnel. They cause upsets  for  too
long a period before they are handled as cases to be trusted.

They are not even natively bad. They think they are psychiatrists or  wolves
or vultures or something. They are crazy and think  they  have  to  kill  or
destroy.

People closely connected to them are a bit psycho as they go into terror.

When any weeding out goes further than this, it is a bad mistake, upsets  an
organization, blows people off and is itself oppressive.

THE TOOLS

You have to realize that we have precision tools. If we lose them  or  don't
use them we get into trouble.

For a long while the E-Meter as a personnel instrument was  out  of  use  in
the test battery. The Chart of Human Evaluation was laid aside.  The  Oxford
Capacity Analysis was not used.

And personnel errors almost destroyed several orgs.

The tools we have tell the story well. They  can  be  disregarded;  opinion,
police record, social acceptability, etc., get put into use instead  and  we
are for it. Those are the OLD tools that failed.

But to use the tools we have, one has to realize  they  are  precise  tools.
One doesn't get a bad needle on a personnel and explain it away. It's a  bad
needle (a rock slam or a dirty needle or a stuck  needle  or  a  stage  four
needle). It means we are dealing with dynamite.

We can handle it in processing. We can bring the person  up  to  a  valuable
person IF WE ARE PROCESSING THE PERSON AS A PC.

But we are discussing staff members. We are discussing  PRODUCTION.  We  are
discussing hiring personnel.

Only about 10% fall into an unacceptable category. And they too can be
saved.

BUT WE DON'T WANT THEM AS PART OF AN ORG STAFF.

You see, there are two different things here. One is  CASES.  The  other  is
PERSONNEL.

When a person knows he can handle offbeat cases, he tends  to  get  careless
about cases being offbeat as personnel. AND IT'S A NEAR FATAL ERROR.

It costs the org its calm, staff members their pay and deprives the area  of
full use of the product.

So it's quite an overt to overlook the niceties and technology of  personnel
and goof it up.

292



A very bad off case on staff can actually cause enough trouble to blow off
and bar out all good staff.

Bad recruits can make a whole org allergic to any recruits.

It's up to those in charge of personnel to get trained as HCs and act
accordingly.

L. RON HUBBARD

Founder

LRH:rr.rd.gm

293



                               L. Ron Hubbard

                             EXECUTIVE DIRECTIVE

LRH ED 121 INT   Date: 29 August 1970

To:   LRH Comm

      HCO ES

      STO

      ALL STAFF

From: RON

Subject:    STAFF TRAINING PGM NO. 2

Reference:  LRH ED 27 INT 20 Sept. 1969

      LRH Comm Staff Pgm No. I

The LRH ED 27 INT "LRH Comm Staff Pgm No. I" is discontinued.

By and large this was a very successful program. In all those orgs where  it
was applied-especially those where No. I Pgms were checked out on all  staff
and followed-a considerable gain was achieved. We made LOTS  of  HDCs,  HDGs
and OECs.

I wish to thank all those who participated in it.

COMPLETION

Anyone on the HDC,  HDG  or  OEC  currently  should  complete  his  existing
course. This ED does not "pull people off courses they are on."

THIS ED RESTORES THE TIME-HONORED STAFF STATUS  ADMIN  STUDIES-STAFF  STATUS
0, STAFF STATUS 1, STAFF STATUS 11, STAFF STATUS 111-FOR USE ON OLD  OR  NEW
STAFF.

PURPOSE:

To improve admin and stats of orgs.

MAJOR TARGET-

To revive Staff Status 0, 1, 11, 111 on administratively  untrained  or  new
staff in your org.

PRIMARY TARGETS:

1.    LRH Comm or HCO ES to accept this program and get it in.

2.    Qual Sec or OES to activate Dept 13 Div V, HCO PL 8 August 1970,
"Reorg of

the Correction Div" so that staff can get training and processing.

3.    HCO Area Sec to bring up-to-date or begin staff personnel records,
Dept 1, and open them to new Dept 13 information.

294



4.    Staff Training Officer to take post in Dept 13 as per HCO PL 8 Aug.
1970

"Reorganization of the Correction Division" as a double or single-hatted
function

depending on staff size.

5.    Dissem Div to dig up and make available to HCO  Dept  I  and  Dept  13
adequate copies of HCO PL 4 January 1966, Issue V, "Personnel Staff  Status"
and to redistribute copies of it to all staff members.

6.    HCO to hand out HCO PL 4 Jan. 1966 to all new applicants.

7.    Dissem Div to exhume all old study packs of Staff Status  1,  11,  and
III and hand them over to Dept 13. If no packs available, Dissem Div  is  to
make them up from checksheets.

Staff Status 0 - HCO PL 4 Jan. 1966 Issue V

Staff Status I - SEC ED 196 INT (1966)

Staff Status 11 - SEC ED 217 INT (28 Feb. 1966)

Staff Status III - Pack of staff member's division as made up.

8.    Division III Disb is to work out any pay  scales  and  adjustments  or
bonuses to suit staff status,  OEC  completion  and  tech  class,  get  them
okayed by EC and distributed.

OPERATING TARGETS:

1.    Dept 13 is to draw up a staff list and establish status of each staff
member.

2.    OEC grads are credited with all three staff status classifications
unless Dept 13 on examination decides in individual cases to require
checkouts before awarding.

3.    Dept 13 is to program each executive and staff member.

a.    Administratively posted personnel, executives and  staff,  attain  and
use the knowledge and know-how  contained  in  staff  status  materials  and
eventually OEC.

b.    Technical personnel are not only technically qualified but also have
a staff status, as they are also part of the org, and should be programed.

C.    Get courses on which a staff student is progressing, completed before
pushing on with staff status.

4.    Dept 13 to coax and two-way comm staff up through their program.

5.    HCO Dept I to make the staff status of each staff member and any tech
class visible on the main org org board after his name.

6.    Dept 13 to keep HCO informed of staff status, case completions and
technical advances of each staff member.

7.    HCO Dept I to keep org board statuses in PT.

8.    HCO Dept I to keep staff personnel files in PT.

9.    Certs and Awards Dept 15 to issue certs based on staff study
achievements.

10.   HCO Dept I to RECRUIT (see HCO PLs Personnel Series 1970).

11.   HCO Dept I to follow Staff Status HCO PL 4 Jan. 1966, Issue V, in
hiring and in staff status and to ADVISE DEPT 13 CONTINUALLY ON NEW
PERSONS.

295



12.   Dept 13 to follow through to program new personnel for staff status.

13.   Div III Disb to follow through with pay changes or bonuses based on
status achieved.

14.   WARNING - When this program re temporary staff (HCO PL 4 Jan. 1966,

Issue V) was first put in, the temporary status was let drag on;
undesirable new

hirings that could not achieve staff status were left on post and not
routed off

staff. Also they were often left in temporary status by neglect. The ETHICS

OFFICER and HCO ES must see that

a.    Newly hired people are not left to accumulate as temporary

b.    New personnel are either routed off staff or up in status.

15.   Dept 13 is to program any person sent off staff to improve his
employability for the future.

16.   THE CHAPLAIN or Pub Div personnel are to inform and handle any person
routed off staff using the data from Dept 13.

THE LINE IS HCO DEPT I WRITES DISMISSAL OF TEMPORARY OR  OTHERS,  PASSES  IT
TO DEPT 13 FOR PROGRAM, PASSES IT TO CHAPLAIN OR PUB DIV FOR  INFORMING  THE
PERSON.

17.   THE CHAPLAIN (or PUB DIV PERSON) is to see that HCO PL 4 Jan. 1966,
Issue V, is not violated in dismissals as violations upset both staff and
field.

18.   The ETHICS OFFICER handles all BLOWS, gets them back or dismisses
according to his own and Dept 13 data and HCO PL 4 Jan. 1966, Issue V.

19.   EXECUTIVES CONSISTENTLY NOT ON POST are turned in to the nearest
Guardian's Office by the ETHICS OFFICER or, failing that, the LRH Comm.

20.   HCO Dept 3, Inspections and Reports, which handles stats, advises  HCO
ES, OES, HCO Dept I and Dept 13 of  all  EXTREME  CONDITIONS  of  personnel,
meaning very high upsurges and  low  falls,  so  that  personnel  and  staff
training actions can occur.

21.   Dept 13 dates all beginnings and ends of  all  checksheets  and  keeps
track of Staff Status overdue completions and advises HCO ES  and  Personnel
of all overdue completions.

22.   Dept 13 posts or releases to the org all completions of all staff
completions as to Staff Status and other studies and case completions.

23.   When this program is fully and honestly in, the LRH Comm (or HCO ES)
will advise Flag via LRH Comm WW.

THE ULTIMATE RESPONSIBILITY FOR ACHIEVING STAFF  TRAINING  PGM  NO.  2  LIES
WITH THE LRH COMM OF THE ORG OR THE HCO ES

      WHERE THERE IS NO LRH COMM.

Program Code:    STPGM No. 2

Program Comm: LRH Comm Flag.

      L. RON HUBBARD

LRH:rr.gm   Founder





[Note: This issue is part of the Personnel Series as stated in Personnel
Series 4, paragraph 7, page 289.]

296



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 10 SEPTEMBER 1970

Remimeo

Personnel Series 5

TRANSFERITIS

A survey of personnel on  posts  who  would  ordinarily  be  considered  for
transfer brings to  light  certain  factors  which  underlie  WHY  they  are
failing on post even while seeming to work at it.

People on  personnel  posts  in  companies  have  followed  a  19th  century
psychological approach that if  a  person  can't  do  one  post  he  can  be
transferred to another post to  which  he  is  better  "adapted."  "Talent,"
"native skill," all sorts of factors are given. But if  a  person  with  all
things considered in the first place is then  found  to  do  badly  on  that
post, the second think of 19th century personnel  was  to  transfer  him  to
another post and yet another and another. The  third  think  when  again  he
fails is then to fire him.

Transferring under these circumstances is usually not  only  wrong  for  the
person but strews the error all through the org.

The HCO PL 24 June 70, "Management Cycle," gives an answer  to  "has  to  be
transferred."

CAMOUFLAGED HOLES

A "camouflaged hole" means a hole in the org line-up that appears  to  be  a
post. Yet it isn't a held post because its duties are not being done. It  is
therefore a hole people and actions fall into without knowing it  is  there.
It can  literally  drive  an  org  mad  to  have  a  few  of  these  around.
Camouflaged means "disguised" or made to  appear  something  else.  In  this
case a hole in the line-up is camouflaged by the fact that somebody  appears
to be holding it who isn't.

Let's take a Receptionist who doesn't receive and  route  people.  You  will
find the people in the org being fouled up by this. They  all  have  to  act
after the fact of no Reception. This makes  them  handle  Reception  in  the
midst of a mess of Reception goofs. But there appears to be a  Receptionist.
If there were NO pretended Receptionist, people would  at  least  know  this
and keep an  eye  out.  But  as  there  "is  a  Receptionist"  who  isn't  a
Receptionist, all Reception actions have to be handled by others  each  time
after there has been a goof! Guaranteed  to  mess  up  the  environment  and
strain tempers more than somewhat.

An executive post is much harder to detect. Those below it are not aware  of
the skills the post needs and are only aware of trouble. Yet it  easily  can
be just a camouflaged hole.

Given the fact that one is not dealing with a sick  person  or  a  scoundrel
(any post requires that a person be fairly healthy and with a  clean  ethics
record), for a person to be on a post and not doing it, he or  she  must  be
suffering from one or more of the following conditions:

I .   Never trained up for the post in the first place (per Management
Chart)

297



2.    Never grooved in on the post purpose

3.    Unreality or unfamiliarity with the ideal scene in its practical
aspects, resulting in omitted data or a missing scene.

Furthermore, for a person to remain on a post under these conditions he/she
must

a.    Be unaware of their lack of knowledge

b.    Blame it on another or

C.    Have considerations about status (i.e., it would be damaging to their
reputation for it to be found out that they didn't know).

This last point, status, puts any post flub onto a WITHHOLD basis  resulting
in continuously deteriorating performance each time it occurs.

In actual fact in each one of the cases examined, one or more of  the  above
points were evident in greater or lesser degree. My suggested  remedy  would
be

1.    Thorough training as deputy before putting any person on a major
post. The purpose being to familiarize the person with actual working
conditions.

2.    A clear, approved statement of post purpose must  be  written  in  the
front of the post hat write-up, which is easily comprehensible  and  simple.
This post purpose is then cleared to F/N in Qual before the  person  can  be
considered fully on post.

3.    Once on post the person must constantly maintain  and  increase  their
working knowledge of their appointed areas of responsibility and  study  and
familiarize themselves with old and new HCOBs and P/Ls as they apply.

That they undergo a competent examination from time to time  on  the  duties
and actions of their post as they exist or are extended.

4.    That to this end any poor performance on post be reported  to  Div  V,
Dept 13 for investigation and correction by examining the above  points  and
putting in those found out.

5.    That within the framework of Cases and Morale Policy Letter,  priority
be given to those posts in the org that most likely  could  be  expected  to
collect a 64status value" so that the integrity of those holding such  posts
be maintained.

6.    That in any case, notwithstanding  the  above  paragraph,  persons  on
such posts should make every attempt to keep  themselves  clean  of  0  /Ws,
including making it known to the proper terminals when they find  they  have
misunderstoods or missing data on post.

If there is any trouble in training a person up  for  a  post,  it  will  be
traced ordinarily to LACK OF  ADEQUATE  MATERIAL  about  that  post  and  no
checksheet to be thoroughly checked out on.

This should be checked as a point.

It is common not to have a pack of data or checksheet for  a  post  and,  if
so, one must be made.

298



SUMMARY

Given a person on post not producing, TRANSFER is almost never the right
answer. Yet it is the one most frequently done.

If a person is morally unfit, a criminal or mad, it is obvious that
"transfer" is the wrong answer.

So this leaves us with these actions to do:

As given in the Management Cycle, HCO PL 24 June 70.

L. RON HUBBARD

Founder

LRH:rr.rd.gm

299



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 SEPTEMBER 1970

Remimeo

Personnel Series 6

TRAINING

By  actual  test  and  practical  experience,  a  fully  trained,  on-policy
executive will raise the stats of an org.

An untrained executive will depress the stats.

An officer trained on the Flag Executive Briefing Course will send stats  up
where an equivalent officer not so trained will send them down.

This appears so obvious that it can be missed.

It means that it costs an org thousands upon thousands to use  an  untrained
executive who has not done an FEBC. It  costs  personnel  their  pay,  their
facilities and their security.

If an FEBC cost $30,000 (which it does not), the org would make it  back  in
a few weeks.

If an untrained executive is placed in charge of an org, it can prepare  for
losses and can succumb.

This is a very simple lesson. It is a matter of actual fact, not of PR.

This is shown up well when a fully trained executive is placed in charge  of
a whole org.

It is less visible but just as decisive regarding ANY post.

An untrained person on a post will be at best somebody not  too  destructive
and at worst a camouflaged hole.

These facts are facts.

When you do not know this, be prepared to have lots of trouble, losses and
dev-t,

It costs money not to spend money pretraining for  a  post.  It  also  costs
money not to train a person on a post to familiarize him with it.

Training is of  course  a  relative  word.  The  materials  taught  must  be
practical and useful and must apply to the job to be held.

Given this, a personnel officer who does not  advise  or  provide  for  full
prepost training will be found to be very costly.

One who insists on full pretraining and on-post training will  be  found  to
be a very valuable asset.

This data is not theoretical. It is the living truth.

L. RON HUBBARD

Founder

LRH:rr.rd.gm

300

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 13 SEPTEMBER 1970

Remimeo

Personnel Series 7

HATS - VITAL DATA

I can prove conclusively and utterly that any down statistic traces at  once
to two points:

1.    Failure to hire or recruit

2.    Failure to train people on their hats.

Regarding training, the failure of any executive is traceable to three
points:

A.    Not making up a checksheet for the posts of juniors under him

B.    Not making up a pack for the checksheet and a hat for each junior

C.    Not fully training his juniors up on their hats as per A & B.

To do all this an executive must himself be trained.

HAT-means the duties of a post. It comes from the fact that jobs  are  often
distinguished by a type of hat as fireman, policeman, conductor, etc.  Hence
the term HAT.

A "hat" is really a folder containing the write-ups of past incumbents on  a
post plus a checksheet of all data relating to  the  post  plus  a  pack  of
materials that cover the post.

One also has a "staff hat" which is to  say  a  folder  containing  all  his
duties as a staff member, the org itself and its lines and purposes.

There is also a hat folder for general or  technical  directives  issued  to
all the staff regardless of post.

So there is a

Post Hat

Staff Hat

Tech Hat

for every staff member.

Before Personnel transfers and begins a musical chair parade, it is well  to
inspect and see if

a.    The post has all these hats and knows them

b.    The post's senior has actively provided them and checked them out or
had them checked out on the junior.

301



If (a) and (b) are not true then I can assure you Personnel will be
replacing and musical chairing forever.

It well may be that the executive is the trouble, not the incumbent.

A senior who does not see to full hats in the possession of juniors and
does not see they are fully checked out is a liability.

ANY ORG'S TROUBLES CAN BE TRACED TO THESE TWO POINTS.

Therefore one must be very sure that seniors take responsibility for the
hats, checksheets, packs and know-how of juniors.

A successful executive is one who understands

1.    Organization

2.    His own hat, has a checksheet and pack for it and knows these

3.    That he is at extreme risk if he does not enforce hat, checksheet and
pack checkouts on his juniors.

ANYONE WHO HAS JUNIORS UNDER HIM IS A TRAINING OFFICER FOR THOSE JUNIORS AS
A VITAL ADDITIONAL DUTY.

So really, Personnel, if you want to know who your executives are, find one
who

i.    Has been trained

ii.   Who produces well himself

iii.  Who enforces hats, checksheets and packs on his juniors and

iv.   'Trains his juniors as per (iii).

There you have an excellent executive, if not an executive director.

It is a cruel, vital, total truth that you normally can trace the reason
for inefficient areas in an org or company to

1.    Lack of hiring or recruiting

2.    Lack of trained executives

3.    Lack of executives who will assemble hats for and train their
juniors.

An organization is a third dynamic technology.

When the hats aren't known or worn, it's a mob.

A division which blows up or unmocks is usually

1.    Undermanned

2.    Unorganized

3.    Untrained.

302



Whenever a senior on the line of command fails to see to the hats and full
training of his juniors, you have a total breakdown.

Personnel sees this in terms of hiring and firing and transfers.

Look into any area that can't keep its people and you find not enough
people or untrained people. And you for sure will also find an executive
who WILL NOT train his people, see that they have post hats and checkouts.

The solutions are pretty obvious.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

303



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 16 SEPTEMBER 1970

Remimeo

Personnel Hats

Ethics Hats

Personnel Series 8

ETHICS AND PERSONNEL

      (Applies to E/Os.)

Personnel can be harassed by utilization failures.

Demandsfor personnel are usually met by an inspection of the area (dept or
div or activity) that is demanding the personnel.

A personnel demand received by Personnel is properly routed to the Ethics
Officer with the following request:

"Dept (or activity) - is asking for personnel.

"Please check these points.

"A.   Are existing personnel there busy?

"B.   Have there been recent blows from that area?

"C.   Are their mest and comm lines in good condition?

-D.   Do the personnel in that area each have HATS, FULL CHECKSHEETS FOR
POST AND AREA?

"E.   Does the senior officer of that area have and support a program for
training and grooving in his personnel?

"F.   Have the personnel now on post been ill (PTS)?

"G.   Is there an SP in the area by meter check?

"H.   Is study and auditing time arranged for?

"Please note by HCO PL 16 Sept 70, ETHICS AND PERSONNEL, that if D and E
above are out and no vigorous action is in progress to get these two points
in, a Comm Ev should be convened.

"Please let me have a report on this area so that 1 can expedite needful
personnel or demand utilization of existing personnel.

Personnel 1/C"

UTILIZATION

An area which does not make hats, checksheets and packs for its staff
members and does not vigorously groove in and get personnel on purpose
lines and knowledgeable will cause endless trouble for personnel
recruitment officers and personnel control officers.

304



An area can get into this hideous cycle

Recruit

Don't train

Don't groove in

Don't utilize

Apply heavy ethics

Lose personnel

Demand personnel

Don't train

Don't groove in

Don't utilize

Apply heavier ethics

Lose personnel

It will just keep on and on and on.

The staff member who goofs is NOT the proper ethics target. The correct
ethics target is the divisional officer or department head who does not
hat, checksheet and pack and train on them and groove in on post every
personnel he has.

In some areas this failure is not sloth or "no time" but a solid great big
WON'T TRAIN.

As the area subjected to this is downtone and poor imaged and overloaded,
the job of recruitment is made nearly impossible.

PURPOSE AND CRIME

A breakthrough in the know-how of civilization is that  a  thetan  evidently
considers any beingness better than no beingness.

This would explain how people cling to an even  painful  existence  and  why
even a slave or prisoner does not just drop a body.

Beingness is valuable.

A post or job is enormously valuable. Even the most minor post has a status
value.

The only quality that is critical about a job is can it be held at  all?  By
heavy overload and harassment a job can be made untenable. But a  "blow"  or
departure is only occasioned by hope of a better one elsewhere in this  same
life. A workload can be heavy. But when  it  gets  impossible,  one  gets  a
blow.

An overloaded division will empty.

The most common way to overload an area is to fail to  hat,  checksheet  and
pack the personnel and not train them. Then they work badly as a  team  with
lots of friction as  the  jobs  are  not  meshed  with  one  another.  Dev-t
results. An apparency of hard work ends up in poor or little production.

Then personnel begin to make goofs which absorb the time of other
personnel.

Not only this but A PERSONNEL WITHOUT PURPOSE CAN COMMIT CRIMES.

The secret of a turbulent society is contained in these facts.

A welfare state pays people not  to  work.  It  is  paying  to  have  people
without purpose or hats. Therefore it gets crime. There is NO surer  way  to
beget an insurgent society than to deny purpose and posts to its members.

305



Knowingly or unknowingly,  welfare  statism  is  aimed  at  disenfranchising
citizens. From Rome on forward, every welfare state has  eventually  erupted
in revolt and civil war. And every state which denied  jobs  or  status  has
blown up in revolt. The French and Russian revolutions were fully  concerned
with breaking a monopoly of status.

However you view it or  however  it  was  done,  FAILURE  TO  PROVIDE  JOBS,
PURPOSE AND TRAINING ON JOBS BEGETS REVOLT.

Unhappiness, social misery, are not answered by denying in any  way  actual,
useful jobs.

The sense of belonging and purpose in living can be strangled in many ways.

Whenever it is done, it is done by some mechanism (like the dole  or  relief
or plain unemployment) which prevents participation.

Participation is only achieved by the worthwhileness of  the  activity,  the
factualness and understanding of the  activity,  explained  purpose  and  an
exact and trained-in set of duties.

Crime stems totally and entirely from lack of  belonging  and  understanding
that to which one belongs. The criminal or juvenile  gang  is  a  substitute
for society. It is an outlaw pack at the throat of that which forced it  not
to belong.

Preventing youthful participation, permitting airy-fairy  education,  unreal
values and lack of understanding turns youth against the state.

Politicians and  financiers  have  been  too  deficient  in  imagination  to
provide real jobs, real training, real objectives.  It  is  easier  to  toss
contemptuous  starvation  handouts  to  the  multitude.  Or  lock  them  out
entirely.

The wages of such action are revolt and social decline.

There is work and thought needful in providing

A. A worthwhile cause

B. Valuable production

C. Jobs and status

D. Real education for the posts held

E. Perpetuation of a valuable activity.

Any businessman for  various  reasons  tries  to  do  this.  He  is  usually
overburdened by the state.

In Russia, where there is only the cynical state, police duress is all  that
holds the rickety framework together.

Thus there is a direct coordination between (a) social disorder and  (b)  no
job or no hat or no training on it.

ETHICS AND HATS

Wherever Ethics has to be heavy you find

1.    No real hats

2.    No checksheet or pack

3.    No thorough grooving in.

306



Given a worthwhile cause, Personnel can be made a near  impossible  post  by
neglect of grooving in.

When a person is unable to wear a hat, processing can trace back  the  cycle
of attaining status and losing it until the person can have a hat.

Personnel placement is far less important than on-the-job hats,  checksheets
and packs grooved in.

Promotion follows any good production in due course.

This is how Ethics and Personnel work together or conflict.

If Ethics does not target those who fail to  train  rather  than  those  who
aren't trained or processed and goof or commit crimes, Ethics and  Personnel
both will come a resounding cropper.

In support of what 1 say, Ethics can trace any trouble in an area back to  a
failure to recruit and fully, realistically train on posts.

And Personnel can trace any trouble in an area to past failures  to  recruit
and fully, realistically train on posts.

You  have  here  in  an  org  what  has  been  destroying   all   of   Man's
civilizationsdenying jobs and status, failing to groove in  and  train.  Man
has only had force and Cossacks to remedy these lacks when  what  he  really
needed was imagination, jobs and training.

A full appreciation of this solves many riddles  regarding  social  planning
and societies.

In our own sphere we must use this understanding well and drive  the  social
aberrations out  of  our  orgs  and  keep  them  out  by  recruiting,  hats,
checksheets, packs and  full  training  for  every  post  and  the  sweeping
removal of all blocks and barriers which prevent it.

A man wants to belong. He can't if he does not know the purpose of  that  to
which he belongs and all the duties and actions of his post.

So make it so by recruiting, training and processing that he can belong  and
be valuable.

And by having upstat orgs make it so the public can  come  in,  get  service
and also belong by membership.

If you understand this fully, we can triumph,  for  it  is  a  know-how  few
other men have.

L. RON HUBBARD

Founder

LRH:nt.gm

307



      HUBBARD COMMUNICATION

      Saint Hill Manor, East Grinstea

      HCO POLICY LETTER OF 22 SEPI

Remimeo

Exec Hats

Personnel Hats

Ethics Hats Personnel Series 9

Org Series 4

A N URGENT IMPOR TA NT A ND STA RRA TE PL

HATS

HAT-A term used to  describe  the  write-ups,  checksheets  and  packs  that
outline the purposes, know-how and duties of a post. It  exists  in  folders
and packs and is trained-in on the person on the post.

HAT TECHNOLOGY

"Hats" developed in 1950 for use in Dianetic orgs as a  special  technology.
The term and idea of "a hat" comes from conductors or locomotive  engineers,
etc., each of whom wears a distinctive and different  type  of  headgear.  A
"hat" therefore designates particular status and duties in an organization.

A "hat" is a specialty. It handles or controls certain particles in  various
actions and receives, changes and routes them.

A "hat" designates what terminal in  the  organization  is  represented  and
what the terminal handles and what flows the terminal directs.

Every hat has a product.

The product can be represented as a statistic.

Any job or position in the world could have its own hat. The  reason  things
do not run well in a life, an org, a  group,  nation  or  the  world  is  an
absence of hats.

The reason why an org runs well when it does is hats.

Any protest of anyone against things not running  right  can  be  traced  to
lack of hats.

Any slump an org goes through can be traced  directly  and  at  once  to  an
absence of one or more hats being worn.

HAT CONTENT

A hat must contain

A.    A purpose of the post.

B.    Its relative position on the org bd.

C.    A write-up of the post (done usually by people who have held it
before relief and when so done it has no further authority than advice).

D.    A checksheet of all the policy letters, bulletins, advices, manuals,
books and drills applicable to the post. (As in a course checksheet.)

308



E.    A full pack of the written materials or tapes of the checksheet plus
any manuals of equipment or books.

F.    A copy of the org bd of the portion of the org to which the post
belongs.

G.    A flow chart showing what particles are received by the post and  what
changes the post is expected to make in them and to where  the  post  routes
them.

H.    The product of the post.

1.    The statistic of the post, the statistic of the section, the
statistic of the department and division to which the post belongs.

STAFF HAT

There is also a general staff hat.

This hat contains

(a)   The overall purpose of the org, its aims, goals and products.

(b)   The privileges or rewards of a staff member such as auditing,
training on post, general training availability, pay, vacations or leave,
etc.

(c)   The penalties involved in nonproduction or abuse of post privileges
or misuse of the post contracts.

(d)   The public relations responsibilities of a staff member.

(e)   The interpersonal relations amongst staff members including courtesy,
cleanliness, attitudes to seniors and juniors, office etiquette, etc.

(f)   The mest of posts generally, its papers, despatches, files,
equipment.

(g)   The comm and transport system of the org.

GRADIENT SCALE OF HATS

A "gradient scale" means "a  gradual  increasing  degree  of  something."  A
nongradient scale would be telling someone to enter a skyscraper by  a  32nd
story window.

Thus there is a gradient scale of organizing.

A key to this is found in Problems of Work's theory  of  confusion  and  the
stable datum.

One in actual practice has to cope while organizing.

COPE means to handle whatever comes up. In the dictionary it means "to  deal
successfully with a difficult situation." We use it to mean "to  handle  any
old way whatever comes up, to handle it successfully and somehow."

IF YOU REMAIN IN COPE, THE DEMAND TO COPE INCREASES.

In that you have the key to "exhausted executives"  or  staff  members.  You
have why the President of the US ages about 20 years in one term  of  office
as you can see by comparing dated photographs  of  past  presidents.  He  is
totally on cope. His government has an org board that looks like a  pile  of
jackstraws.  He  has  no  hat.  His  staff  have  no  hats.  His  government
departments have no hat.  The  technologies  of  economics,  law,  business,
politics, welfare, warfare, diplomacy, have been lost or neglected (they  do
exist to some extent).

309



The guy is on total cope. And the post has been on total cope since  it  was
created as an afterthought by the Constitutional  Congress  that  began  the
post in the 18th century. Even what it says in US civics  textbooks  is  not
found in practice.

So "difficult situations" are the order  of  the  day  and  are  handled  by
special actions and appointments.

The people who should handle them haven't got real hats.

This is all catching up with the country at this writing to  such  a  degree
that the citizen cannot benefit from a stable society or social  order.  The
country looks more like a war of insurgency.

In other words departures from hats has lead  into  total  cope  and  it  is
steadily worsening.

Any organization put in by one political party is knocked out  by  the  next
incumbent and who could totally organize a country in four years? (The  term
of a president.)

Yet it is hanging together some way and some way meeting increasing  demands
and pressures.

I have stated this in a large example so that it can be seen in a smaller
unit.

To handle this one would first have to want to straighten it  out  and  then
assemble the tech of admin to straighten it out. And then one would have  to
begin on a gradient scale of org bd and hats.

A cope sort of hat would be tossed off orders to some other people on  staff
who have some title of some sort.

Along with this would be a posted org bd that has little to do  with  duties
actually performed and used by a staff that doesn't know what it is.

One begins to move out of cope (as given in other series) by putting an  org
board together that labels posts and duties and getting people  on  them  to
handle the types of particles (bodies, mailings) of the org.

The next action would be brief write-ups of the posts and their  duties  and
checking people out on them.

Actually if you only got to the middle of the last  paragraph  with  an  org
the executives would remain in cope. So much know-how would  be  missing  in
the org's staff that every rough bit would shoot up  to  the  executive  for
special handling and that is cope.

Hats only in this far is not good enough as it still takes a genius to run
the place.

The next gradient scale is to get the hat to contain

(i) The post write-up itself

(ii) The theory and practical necessary to run it.

This is done by a preparation of checksheets of data and a pack matching  it
for key posts.

Naturally the org bd now has to  become  more  real  and  staff  has  to  be
checked out on it.

rhen hats as post checksheets and packs are extended to the rest of the
staff.

310



The mechanisms of training have to exist by this time.

Seniors have to be made responsible that every junior below them has  a  hat
consisting of write-up, checksheet and pack.

Meanwhile one continues to cope.

Gradually, gradually staff begin to know (through checkouts) their hats.

New staff coming on are grooved in better.

Cope begins to diminish and the organization tends to smooth out.

Here and there competent handlings begin to show up brightly.

Now we find a new situation. With  everyone  throwing  together  checksheets
and packs for staffs we find nonstandard checksheets. Some messenger has  to
do the full checksheet of the HCO Division pages and  pages  long.  The  HCO
Sec has a checksheet with just 10 items on it.

So a central authority has to standardize post checksheets  and  survey  and
put in overlooked bits of data.

But that is way up the line. The org long since has become smooth and
prosperous.

So that is the gradient scale of getting in hats.

EXPERTS

Here and there you find an area of special expertise in  an  org  where  the
expertise is so expert in itself that it obscures the fact that  the  person
does not also have a full post hat.

A lawyer would be a case in point. It takes so long to  learn  law  in  some
law school that an org executive can overlook the fact that the post hat  is
missing. Org policy on legal matters and staff hat remain  unknown  to  this
legal post AND JAM IT UTTERLY. This came to light when  a  whole  series  of
cases was being neglected because  the  legal  staff  member,  an  excellent
lawyer, did not know how to make out a purchase order or that one  could  or
should. Investigation found no post or staff hat. Only a legal degree.

Orgs continually do this  with  auditors.  They  are  technical  experts  in
auditing. So they get assigned to posts in the HGC  WITH  NO  HAT.  Backlogs
occur, things goof up. Tech fails. All because it is  overlooked  that  they
are PART OF AN ORG and need staff and post hats and need to  be  trained  on
them.

Worse than that, a highly classed auditor is often  put  on  an  admin  post
without hat or training for it.

You would not take an admin trained  person  and  without  further  training
tell him to audit. So why take an auditor and tell him to  handle  an  admin
division?

Without his post write-up, checksheet and pack  FOR  THE  POST  and  without
training on it, the person just isn't qualified for it no matter what  other
line he is expert in.

It is great to have an  expert  who  has  been  specially  trained  in  some
profession. But lawyer, engineer or public relations, he must have  his  hat
for the org post and be trained on  it  or  he  will  goof!  Yet  one  won't
suspect why that area is goofing because "he's a Class VI isn't he?"

311



UTILIZATION

Personnel can recruit madly, answering every frantic  demand  for  personnel
and yet HAVE THEM ALL WASTED for lack of full  hats  and  full  training  on
those hats.

An investigation of blows (desertions)  from  orgs  shows  that  lack  of  a
grooved-in hat was at the bottom of it.

People come on a job. It is at once a great  mystery  or  an  assumption  of
total know-one or the other.

Either one continued leads them into a state of liability to the org.

People who don't know what they are doing and people  who  don't  but  think
they do are both NONUTILIZED PERSONNEL.

Pay and prosperity for the rest of the staff will go down unless this is
remedied.

The whole org can sag and even vanish under these conditions.

So Personnel has a vested interest in hats being complete and staff  trained
on them. For Personnel people cannot possibly cope with  "no  pay  so  can't
hire anyone" and "no people so can't produce."

The answer is H-A-T-S.

And a hat is a write-up, a checksheet and a pack.

And the staff member trained on them.

ETHICS

When a person has no hat he lacks purpose and value.

When he has no purpose and value he not only goofs, he will commit crimes.

It is apparently easier to hit with ethics than to program and give  someone
a full hat and get him trained on it.

Police action is not a substitute for having purpose and value.

This is so fundamental that one can even trace the unrest  of  a  nation  to
lack of purpose and value. A  huge  welfare  program  guarantees  crime  and
revolt because it gives handouts, not hats.

Even a field Scientologist should have a hat.

By doing only this over  the  world  we  would  own  the  planet  as  in  an
expanding population, individual purpose and value are the  most  vital  and
wanted commodities.

If there are no real hats there will soon be no money of any value and no
bread!

SUMMARY

ANY HAT IS BETTER THAN NO HAT according to the way a thetan seems to think.

But be that as it may, the downfall of any org can be  traced  directly  and
instantly to no recruiting or no org board, no hats or  unreal  hats  or  no
training on hats.

The sag of an org can be traced  directly  to  lack  of  hats  and  lack  of
training on hats.

312



The overload of any post can be traced directly to lack of  an  org  bd  and
lack of hats and no training on hats.

The way out is to organize the org board and hats while you cope.

If you do not your cope will become an overwhelm.  If  you  do  your  burden
will lighten and your prosperity increase.

It took 13 months of hard work and 20  years  of  org  experience  to  learn
that, given a product, lack of HATS was  the  WHY  of  departures  from  the
ideal scene and that working toward providing full  complete  HATS  was  the
way to get back toward the ideal scene.

L. RON HUBBARD

Founder

LRH:sb.cden.ts.gm

313



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 6 OCTOBER 1970

Remimeo     Issue 11

Personnel Series 10

"MOONLIGHTING"

Staff members of an org who also have other jobs outside the  org  are  said
to be MOONLIGHTING.

Day staff with an evening or weekend job or Foundation staff with a day  job
have been accused unjustly in the past of injuring an org.

An org only gets injured when its doors get closed and it ceases to  promote
and deliver good service.

If a whole staff of a Day org decided to close the org all day and  open  it
only in the evening, "moonlighting" would have destroyed the Day  org.  This
would be heavily frowned upon.

If a Foundation staff closed the Foundation to get evening  work,  it  would
be a highly nonsurvival act and injurious.

An org which is just starting up or which has been  so  un-org  boarded  and
unhatted that it fell into such a slump that staff could  not  live  on  its
pay, the staff would be remiss not to moonlight while  they  built  the  org
back up. Built up, org boarded and hatted,  the  org  could  pay  its  staff
adequately.

To forbid the practice of moonlighting would be to force a staff  member  to
blow in self-defense,

INFLATION

As money inflates (purchases less) and as the cost of  operating  rises  and
fees remain unchanged,  an  org  can  get  into  a  situation  where  it  is
inefficient and pays low salaries.

"Moonlighting  on  the  government"  would  be   quite   permissible.   With
governments anxious to hand out welfare, in some depressed area it would  be
quite all right to go on the dole or relief and work as a  church  volunteer
in the org.

The higher unemployment rises, the less money will  buy,  the  more  finance
trouble there is.

Org staffs under such duress can even live as monasteries for food,  shelter
and pocket money and keep an org going.

SUBSIDY

At this writing the only subsidies available from governments are for  those
who kill people. The money the government should be spending to support  our
orgs goes to special interest groups  like  psychiatry  who  pocket  it  and
deliver nothing.

Up the years this may change.

314



Until it does we have to keep our heads up financially.

That also applies to an org staff member. There is no reason he should lose
his staff job because he also has to moonlight to live.

A well-run, well-recruited, well-org boarded, well-hatted, well-trained org
delivering high quality training and auditing makes very adequate income
and pays well. But it sometimes takes time to build up from a mismanaged
slump to an ideal scene again.

There is no policy against MOONLIGHTING where it does not injure the org.

L. RON HUBBARD

Founder

LRH:sb.gm

315



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 9 OCTOBER 1970

Remimeo

Personnel Hats

PR Checksheets

Personnel Series 11

PR Series 4

THE PR PERSONALITY

A public relations personnel has to be spot on in

a.    Confronting

b.    Organizing

C.    Working.

CONFRONT

In confronting, a shy or retiring PR is  not  about  to  handle  suppressive
persons or situations. A PR must be able to stand up to and handle the  more
wild situations easily and with composure. When he does  not,  his  confront
blows and any sense of presentation or organization would go up in smoke.  A
PTS (potential trouble source) person or one  who  roller-coasters  casewise
or one who tends to retreat has no business  in  PR.  His  connections  that
make him PTS and his case would have to be handled  fully  before  he  could
make good on PR lines.

ORGANIZE

In organizing, a PR has to be able not only to organize something  well  but
to organize it faultlessly in a flash.

Every action a PR takes concerns groups and therefore has  to  be  organized
down to the finest detail; otherwise it will just be a mob scene and a  very
bad presentation.

A PR who can confront,  can  "think  on  his  feet"  and  grasp  and  handle
situations rapidly and who can organize in a flash will succeed as a PR.

WORK

The last essential ingredient of a PR is the ability to WORK,

When appointing people to PR training, the person's  work  record  is  very,
very important.

The ability to address letters,  push  around  files,  haul  furniture  into
place,  handle  towering  stacks  of  admin  in  nothing  flat  are  all  PR
requisites.

To be able to tear out to Poughkeepsie before lunch  and  set  up  the  baby
contest and build a scene for a press conference on catfish before  two  and
get dressed, meet the governor by six is WORK. It takes sweat and  push  and
energy.

A PR should be able to get out a trade paper  in  hours  where  an  "editor"
might take weeks.

316



The ability to work must be established in a potential PR before wasting
any training time, as a PR who can't work fails every time.

DELUSORY REQUIREMENTS

People think a PR must be charming, brilliant, able to inspire, etc., etc.

These are fine if they exist. But they are actually secondary qualities in
a PR.

Lack of the (a), (b), (c) qualities is why you see PRs begin to hit the
bottle, get sick. fail.

If a PR is also charming, brilliant, able to inspire, he is a real winner.
Possibly one is born with all these qualities every few generations.

Personnel in appointing and training PR must look for the wish to be a PR
and (a), (b) and (c).

And anyone taking up PR who does so to escape hard work will fail as it IS
hard work.

A real top PR wants to be one, has the abilities of (a), (b) and (c) and is
trained hard and well on the subject. Then you have a real stat raiser, a
real winner, a real empire builder.

L. RON HUBBARD

Founder

LRH:sb.gm

Personnel Series I I Addition

[Note: HCO PL I I Apr. 1972, Personnel Series I  I  Addition,  PR  Series  4
Addition, THE PR PERSONALITY has been canceled. This issue,  not  written  ,
corrected a typographical error in HCO PL 9 Oct. 1970, Personnel Series  11,
PR Series 4, THE PR PERSONALITY. Since this correction has  now  been  made,
this additional issue is no  longer  necessary  and  has  been  canceled  by
Scientology Policy  Directive  8,  CANCELLATION  OF  PERSONNEL  SERIES  I  I
ADDITION, PR SERIES 4 ADDITION-THE PR PERSONALITY, dated 27 Apr. 1982.]

317



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 20 NOVEMBER 1970

                    CORRECTED AND REISSUED 29 AUGUST 1974

Remimeo

Personnel Series 12

Org Series 15

ORGANIZATION MISUNDERSTOODS

By Scientology study  technology,  understanding  ceases  on  going  past  a
misunderstood word or concept.

If a person reading a  text  comes  to  the  words  "Felix  Domesticus"  and
doesn't know it simply means HOUSE CAT, the words  which  appear  thereafter
may become 44meaningless," "uninteresting" and he may even  become  slightly
unconscious, his awareness shutting down.

Example: "Wind the clock and put out the  Felix  Domesticus  and  then  call
Algernon and tell him to wake you at 10:00 A.M.," read  as  an  order  by  a
person who didn't bother to find out that "Felix  Domesticus"  means  "house
cat" or "the variety of cat which has been domesticated" will  not  register
that he is supposed to  call  Algernon,  will  feel  dopey  or  annoyed  and
probably won't remember he's supposed to wake up at 10:00 A.M.

In other words, when the person hit  a  misunderstood  word,  he  ceased  to
understand and did not fully grasp or become aware of what followed after.

All this applies to a sentence, a book, a post or a whole organization.

Along the time  track  a  crashing  misunderstood  will  block  off  further
ability to study or apply data. It will also block further understanding  of
an organization, its org board,  an  individual  post  or  duties  and  such
misunderstoods can effectively prevent knowledge of or action on a post.

ALL THIS IS THE MOST COMMON CAUSE OF AN UNACCEPTABLE  POST  PRODUCT,  OR  NO
PRODUCT AT ALL.

The difficulties of an organization in functioning or producing stem from
this fact.

Personal aberration is the cause of products that are in fact overt acts.

Scientology technology today easily handles the personal aberration part  of
the problem, IF IT IS USED AND PROPERLY APPLIED. Leaving  an  org  unaudited
or being unable to figure out how to run a viable org so that it can  afford
to audit its staff members is asking for  post  or  org  products  that  are
overt acts.

Employing   persons   of   the   Leipzig,   Germany,   death   camp   school
(psychologists,  psychiatrists)  to  handle  personal  aberration  is   like
throwing ink in water to clean it  up.  Governments  stupidly  do  this  and
wonder why their final product  as  an  organization  is  riot,  war  and  a
polluted planet. The point is not how bad  psychology  and  psychiatry  are,
but that one does have to handle personal aberration in an organization  and
these schools were too vicious and incompetent to do so.

Those who are personally very aberrated are not about  to  produce  anything
but an overt act. They are difficult to detect as  they  are  being  careful
not to be detected. Things "just sort of go wrong"  around  them,  resulting
in a product that is in fact an overt act. But these constitute  only  about
10 or 20 percent of the population.

318



The remaining 80% or 90% where they are nonfunctional  or  bungling  are  so
because they do not understand what it's all  about.  They  have  in  effect
gone on by a misunderstood such as what the org is supposed  to  do  or  the
admin tech they use on their posts or where they are or what  their  product
is.

Earth organizations like governments  or  big  monopolies  get  a  very  bad
repute because of these factors:

I . Personal aberration of a few undetected and unhandled.

2.    Inadequate or unreal basic education technology and facilities.

3.    Inadequate or unknown organization technology.

4.    Noncomprehension of the individual regarding the activities of which
he is a part.

5.    Noncomprehension of the basic words with which he is working.

6.    Purposes of the post uncleared.

7.    Admin of the post not known or comprehended.

8.    Technology in use not fully understood.

9.    A lack of comprehension of products.

Out of these nine things one gets organizational  troubles  and  the  belief
that it takes a genius to run one successfully. Yet all the  genius  in  the
world will fail eventually if the above nine things are not handled to  some
degree.

The common methods currently in use on the planet  to  handle  these  things
are very crude and time-consuming as the items themselves are  either  dimly
comprehended or not known at all.

IA. Personal aberration is met  by  torture,  drugs  or  death  when  it  is
detected. Yet only the very  serious  cases  who  are  obviously  screaming,
muttering or unconscious are singled out  whereas  the  dangerous  ones  are
neither detected nor handled  at  all  and  become  with  ease  generals  or
presidents or dictators, to say nothing of lesser fry. Ten  percent  to  20%
of any organization is stark staring mad, doing the  place  in  so  adroitly
that only their actual product betrays them.

2A. Basic education as  well  as  higher  general  education  has  become  a
massproduced area crawling with bad  texts  and  noncomprehension  and  used
mainly by hostile elements to overturn the state or  pervert  the  race  and
its ideals.

3A. Organizational technology is so primitive as  to  change  national  maps
and leading companies many times a century, an extremely unstable scene  for
a planet.

4A. Very few individuals on the planet have any  concept  of  the  structure
entities such as their country or state or company.  Persons  surveying  the
public in the US, pretending to advise acceptance of "new measures"  already
in the  Constitution  were  threatened  for  being  revolutionaries.  Hardly
anyone knew the basic document of the nation's organization  much  less  its
rambling structure.

5A. The basic words of  organization  are  glibly  used  but  not  generally
comprehended-words like "company," "management,"  66  policy."  Vocabularies
have to be  increased  before  comprehension  and  communication  occur  and
misunderstoods drop out.

6A. Post purposes are often glibly  agreed  with  while  something  entirely
different is done.

319



7A.  Administrative  actions  involving   posts   are   often   only   dimly
comprehended and seldom well followed but in this matter  of  communication,
despatches, etc., the planet is not as deficient as in  others  except  that
these  functions,  being  somewhat  known  can  become  an  end-all-tons  of
despatches, no actual product. In some areas it is an obsession, an  endless
paper chain, that is looked on as a legitimate product even  when  it  leads
to no production.

8A.  The  planet's  technology  is  on  the   surface   very   complex   and
sophisticated but is so bad in actual fact that  experts  do  not  give  the
planet and its populations 30 years before the smoke  and  fumes  will  have
eaten up the air cover and left an oxygenless world.  (The  converters  like
trees and grass which change carbon dioxide  to  oxygen  are  inadequate  to
replace the oxygen and are  additionally  being  killed  by  air  impurities
coming out of factories and cities.) If the  technology  destroys  the  base
where it is done-in this case the planet-it is not adequate and may even  be
destructive technology.

9A. The whole idea of "product" is not in use except in commercial  industry
where one has to have a car that sells or a washing  machine  that  actually
washes.

THE HARD ROAD

It is against this primitive background that one is trying to run an
organization.

If it were not for improvements made on each one of these  points  the  task
could be hopeless.

I have gone to some length to outline the lacks in order to show the  points
where one must concentrate in (a) putting an org together  and  (b)  keeping
it viable.

In these nine areas we are dealing with the heart of it in running orgs.

Enthusiasm is a vital  ingredient.  It  soon  goes  dull  when  insufficient
attention is paid to resolving and getting in these nine points.

Bluntly, if they are not gotten in and  handled,  the  task  of  living  and
running a post or  an  org  will  become  so  confused  that  little  or  no
production will occur and disasters will be frequent.

THE WORDS

The by-no-means-complete list of words that have to  be  fully  cleared  and
understood  just  to  talk  about  organization  as  a   subject,   and   to
intelligently and happily work in an org EVEN AS ITS LOWEST EMPLOYEE is

A company A board of directors Top  management  Policy  Management  Programs
Targets Orders Technology Know-how Org bd Post Hat  Cope  Purposes  Organize
Duties A checksheet

320



A checklist A comm  channel  A  command  channel  A  relay  point  A  stable
terminal Double-hatted A product Aberration VIABILITY

This is key vocabulary. One could draw  up  a  whole  dictionary  for  these
things and no one studying it would be  any  wiser  since  it  would  become
salted with other words of far less importance.

The way to do this list is sweat it out with a meter until  one  knows  each
can't mean anything else than what it does mean.

Out of a full understanding of what is implied by each, a brilliantly  clean
view is attained of the whole subject of organization, not as a  fumble  but
as a crisp usable activity.

Unless one at least knows these words completely so that they  can  be  used
and applied they  will  not  buffer  off  confusions  that  enter  into  the
activity.

Glibness won't do. For behind these  words  is  the  full  structure  of  an
activity that will survive and when the words  aren't  understood  the  rest
can become foggy.

We do know all these needful things. We must communicate them and  use  them
successfully.

L. RON HUBBARD

Founder

LRH:kjm.rd.ts.gm

[Note: The 29 August 1974 reissue corrected the word test to text in the
second paragraph of this HCO PLJ

321



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 6 DECEMBER 1970

Remimeo

Dept 14 Hats

Personnel Series 13

Org Series 18

THIRD DYNAMIC DE-ABERRATION

The exact mechanism of 3rd dynamic (group  or  organization)  aberration  is
the conflict of COUNTER-POLICY.

Illegal policy set at unauthorized levels jams the actions of  a  group  and
IS responsible for the inactivity, nonproduction or lack of team spirit.

Counter-policy independently set jams the group together  but  inhibits  its
operation.

Out-reality on org  bds,  hats,  etc.,  is  to  a  large  degree  caused  by
disagreements and conflicts which are caused by illegal policy.

If we had a game going in which each player set his own rules,  there  would
be no game. There would only be argument and conflict.

VARIETIES OF COUNTER-POLICY

At the start it must be  assumed  or  effected  that  there  is  someone  or
somebody to set authorized policy for the group. Absence  of  this  function
is an invitation to random policy and group conflict and disintegration.  If
such a person or body exists, new proposed policy must be referred  to  this
person or  body  and  issued,  not  set  randomly  at  lower  levels  or  by
unauthorized persons.

Policies so set by the policy authority must be  informed  enough  and  wise
enough to forward the group purpose and to  obtain  agreement.  Ignorant  or
bad policy even when authorized tends  to  persuade  group  members  to  set
their own random policy.

When no policy at all exists random policy occurs,

When policy exists but is not made known, random policy setting will occur.

Ignorance of policy, the need or function of it, can cause random policies.

Hidden not stated random policies can conflict.

Correct policy can be relayed on a cutative basis-a few words left off or  a
qualifying sentence dropped which makes policy incorrect or null.  "Children
may not go out"  can  be  made  out  of  "Children  may  not  go  out  after
midnight."

Altered policy can be limitless in error.

Attributing a self-set policy to the  authorized  source  can  disgrace  all
policy as well as pervert the leadership purpose.

Policy can be excluded from a zone of a group that  should  be  governed  by
it. "Pipe-making policy does not apply to the small pipe shop."

Such masses of unnecessary policy can be issued that it cannot be
assimilated.

322



Policy can exist in large  amounts  but  not  be  subdivided  into  relevant
subjects as is done in hat checksheets.

Disgrace of policy can occur in a  subsequent  catastrophe  and  render  any
policy disgraceful, encouraging self-set policy by each group member.

CLEARING A GROUP

All authorized policy must be set or made  available  in  master  books  and
adequate complete policy files. This makes it possible to compile  hats  and
checksheets and issue packs.

Group surveys of "What policy are you operating on?" can reveal random
policy.

All bugged (halted) projects can be surveyed for illegal policy and  cleaned
up and gotten going again.

Other actions can be taken all of which add up to

1.    Get existing policy used.

2.    Get areas without policy crisply given policy from the authorized
source.

3.    Debug all past projects of false policy.

4.    De-aberrate group members as per the Organization Misunderstoods PL
and other materials.

5.    Educate the group members concerning policy technology,

6.    Set up systems that detect, isolate and report out-policy and get it
corrected and properly set, issued and known.

7.    Monitor any new policy against statistics and include policy
outnesses as part of all statistical evaluations.

ADMIN SCALE

I have developed a scale for  use  which  gives  a  sequence  (and  relative
seniority) of subjects relating to organization.

GOALS

PURPOSES

POLICY

PLANS

PROGRAMS

PROJECTS

ORDERS

IDEAL SCENES

STATS

VALUABLE FINAL PRODUCTS

This scale is worked up and worked down UNTIL IT  IS  (EACH  ITEM)  IN  FULL
AGREEMENT WITH THE REMAINING ITEMS.

In short, for success, all these items in the  scale  must  agree  with  all
other items in the scale on the same subject.

Let us take "golf balls" as a subject for the scale. Then  all  these  scale
items must be in agreement with one another on the subject  of  golf  balls.
It is an interesting exercise.

323



The scale also applies in a destructive subject. Like "cockroaches."

When an item in the scale is not aligned with the other items,  the  project
will be hindered if not fail.

The skill with which all these items in any activity are aligned and  gotten
into action is called MANAGEMENT.

Group members only become upset when one or more of  these  points  are  not
aligned to the rest and at least some group agreement.

Groups appear slow, inefficient, unhappy, inactive or quarrelsome only  when
these items are not aligned. made known and coordinated.

Any activity can  be  improved  by  debugging  or  aligning  this  scale  in
relation to the group activity.

As out-reality breeds out-comm, and out-affinity,  it  follows  that  unreal
items  on  the  scale  (not  aligned)  produce  ARC   breaks,   upsets   and
disaffection.

It then follows that when these scale  items  are  well  aligned  with  each
other and the group there will be high reality, high communication and  high
affinity in the group.

Group mores aligned so and followed by the group gives one an ethical  group
and also establishes what will then be considered as  overts  and  withholds
in the group by group members.

This scale and its parts and ability to line them up are  one  of  the  most
valuable tools of organization.

DEBUG

When orders are not complied with and projects do not come off,  one  should
DETECT, ISOLATE and REPORT and handle or see that it is handled, any of  the
scale items found random or counter.

If any item below POLICY is  in  trouble-not  moving-one  can  move  upwards
correcting these points, but  certainly  concentrating  on  a  discovery  of
illegal or counterpolicy. Rarely it occurs some old but legal  policy  needs
to be adjusted. Far more commonly policy is being set  by  someone  verbally
or in despatches, or hidden, that is bugging any item  or  items  below  the
level of policy.

So the rule is that  when  things  get  messed  up,  jammed  up,  slowed  or
inactive or downright destructive (including a product as an overt act)  one
sniffs about for random or counter-policy illegally being set in  one's  own
area or "out there."

Thus in the face of any outness one DETECTS-ISOLATES-REPORTS and handles  or
gets handled the out-policy.

The detection is easy. Things aren't moving or going right.

The isolation is of course a WHAT POLICY that must be found and WHO set it.

Reporting it would mean to HCO.

Handling it is also very easy and would be done in Qual.

This admin tech gives us our  first  3rd  dynamic  de-aberrater  that  works
easily and fast.

Why?

324



Well, look at the Admin Scale. Policy is just below purpose.

Purpose is senior to policy.

The person who is setting random or counter  illegal  policy  is  off  group
purpose. He is other-purposed to greater or lesser degree.

From 1960 to 1962 1 developed a vast  lot  of  technology  about  goals  and
purposes. If we define a goal as~ a whole track long, long-term  matter  and
a purpose as the lesser goal applying to specific activities or subjects  we
see clearly that if we clean up a person's purposes relating to the  various
activities in which he is involved and on the eight dynamics we will  handle
the obsession to set random or counter-policies! ,

So it is an auditing job and the tech for it is extensive. (The African  ACC
was devoted to this subject. Lots of data exists on it.)

It happens however that around 20% (probably more) of  any  group's  members
are actively if covertly anti-group and must be handled at a  less  profound
level under "personal aberration" in the Org  Misunderstoods  policy  letter
before you can begin to touch purpose.

Thus any group member, since this tech  remedy  helps  them  all,  would  be
handled with

1. General case de-aberration (called LIN on Flag).

2. Purpose handling for posts.

3. Org bd, hatting and training.

Those setting random or counter-purpose later  detected  would  get  further
no. 2 and no. 3.

As the universe is full of beings and one lives with them whether  he  likes
it or not, it would be to anyone's interest to be able to  have  functioning
groups.

The only way a group jams up and (a) becomes difficult to live in,  and  (b)
impossible to fully separate from, is by random and counter-purposes.

If one thinks he can go off and be alone anywhere in this universe he is
dreaming.

The first impulse of a hostile being is "to leave" a decent group. What a
weird one.

The only reason he gets in jams is his inability to tolerate or handle
others.

There's no road out for such a being except through.

Thus all we can do to survive even on the first dynamic is to  know  how  to
handle and be part of the third or fourth dynamic and clean it up.

Probably the reason this universe itself is considered by some as a trap  is
because their Admin Scale is out regarding it.

And the only reason this universe is sometimes a trial  is  because  no  one
published its Admin Scale in the first place.

All this is very fundamental first dynamic tech and third dynamic tech.

It is the first true group technology that can fully de-aberrate and  smooth
out and free within the group every group member and the group itself.

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Thus, combined with auditing tech, for the first time we can rely wholly on
technology to improve and handle group members and the group itself toward
desirable and achievable accomplishment with happiness and high morale.

Like any skill or technology it has to be known and done and continued in
use to be effective.

The discovery, development and practical use of this data has made me very,
very cheerful and confident and is doing the same thing on the test group.

I hope it does the same for you.

L. RON HUBBARD

Founder

LRH:nt.rd.ts.gm

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                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 14 DECEMBER 1970

Remimeo

                             Personnel Series 14

                                Org Series 19

GROUP SANITY

The points of success and failure, the make and break items of an
organization are

1. HIRING

2. TRAINING

3. APPRENTICESHIPS

4. UTILIZATION

5. PRODUCTION

6. PROMOTION

7. SALES

8. DELIVERY

9. FINANCE

10. JUSTICE

11. MORALE

These eleven items MUST AGREE WITH AND BE IN LINE WITH THE ADMIN SCALE (Org
Series 18).

Where these subjects are not well handled and where one or more of these
are very out of line. the organization will suffer a third dynamic
aberration.

This then is a SANITY SCALE for the third dynamic of a group.

The group will exhibit aberrated symptoms where one or more of these points
are out.

The group will be sane to the degree that these points are in.

Internal stresses of magnitude begin to affect every member of the group in
greater or lesser degree when one or more of these items are neglected or
badly handled.

The society at large currently has the majority of these points out.

These elements become aberrated in the following ways:

1. HIRING

The society is running a massive  can't  have  on  the  subject  of  people.
Automation and employment penalties  demonstrate  an  effort  to  block  out
letting  people  in  and  giving  them  jobs.  Confirming  this  is  growing
unemployment and fantastic sums for welfare-meaning  relief.  Fifty  percent
of America  within  the  decade  will  be  jobless  due  to  the  population
explosion without a commensurate expansion in production. Yet production  by
US presidential decree is being cut back. War, birth control, are two of

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many methods used to reduce population. THIS THIRD DYNAMIC  PSYCHOSIS  IS  A
REFUSAL TO EMPLOY PEOPLE. EXCLUSION OF OTHERS IS THE BASIC CAUSE OF WAR  AND
INSANITY.

2. TRAINING

Education has fallen under the control of one-worlders,  is  less  and  less
real. Data taught is being taught less well.  Less  data  is  being  taught.
School and college unrest reflect this.  Confirmation  is  the  deteriorated
basic education found in teenagers such as writing. Older  technologies  are
being lost in modern rewrites. THIS THIRD  DYNAMIC  PSYCHOSIS  IS  A  COVERT
REFUSAL TO TRAIN.

3. APPRENTICESHIPS

The most  successful  industries,  activities  and  professions  of  earlier
centuries were attained by training the person as an apprentice,  permitting
him to understudy the exact job he would  hold  for  a  long  period  before
taking the post. Some European schools are seeking to revive this but  on  a
general basis, not as an apprentice system. A THIRD DYNAMIC PSYCHOSIS  IS  A
DENIAL OF ADEQUATE EXPERIENCE TO SUCCEED.

4. UTILIZATION

In industries, governments and  armed  services  as  well  as  life  itself,
personnel are not utilized. A man trained for one thing is  required  to  do
something else. Or his training is not used. Or he is not  used  at  all.  A
THIRD DYNAMIC PSYCHOSIS IS FAILURE TO UTILIZE PEOPLE.

5. PRODUCTION

Modern think is to reward downstats. A  person  is  paid  for  not  working.
Governments who produce nothing employ  the  most  people.  Income  tax  and
other current practices penalize production. Countries which produce  little
are  given  huge  handouts.  War  which   destroys   attains   the   largest
appropriations. A THIRD DYNAMIC PSYCHOSIS IS TO PREVENT PRODUCTION.

6. PROMOTION

Promotion activities are subverted to unworthy  activities.  True  value  is
seldom promoted. What one is actually achieving  gets  small  mention  while
other things are heavily promoted. Reality and PR  are  strangers.  A  THIRD
DYNAMIC PSYCHOSIS IS UNREAL OR NONFACTUAL PROMOTION.

7. SALES

Sales actions are unreal or out of balance. Clumsy or  nonfunctioning  sales
activities penalize producers and consumers. In areas of high demand,  sales
actions are negligible even when heavy advertising exists.  This  is  proven
by the inability to sell what is produced even in large  countries  so  that
production cutbacks are  continual  threats  to  economies  and  workers.  A
population goes half-fed in times  of  surplus  goods.  With  curtailed  car
factories a nation drives old cars. With  a  cutback  construction  industry
people live in bad  houses.  Sales  taxes  are  almost  universal.  A  THIRD
DYNAMIC PSYCHOSIS IS THE IMPEDING OF  PROD  UCT  DISTRIBUTION  TO  POTENTIAL
CONSUMERS.

8. DELIVERY

Failure to deliver what is offered is standard procedure for groups  in  the
humanities. Commercially it is well in hand.

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9. FINANCE

One's own experience in finance is adequate to demonstrate the  difficulties
made with money. A THIRD DYNAMIC PSYCHOSIS IS THE PERVERSION OF FINANCE.

10. JUSTICE

Under the name of justice, aberrated Man accomplishes fantastic  injustices.
The upstat is hit, the downstat let go. Rumors  are  accepted  as  evidence.
Police forces and power are used to ENFORCE the injustices contained I to  9
above. Suppressive justice is used as an ineffectual  but  savage  means  of
meeting situations actually caused by the  earlier  listed  psychoses.  When
abuses on  I  to  9  make  things  go  wrong,  the  social  aberration  then
introduces suppressive injustices as an effort to cure. Revolt and  war  are
magnified versions of injustices. Excess people-kill them off in  a  war.  A
THIRD DYNAMIC PSYCHOSIS IS THE SUBSTITUTE OF VIOLENCE FOR REASON.

11. MORALE

A continuous assault on public morale occurs in the press and  other  media.
Happiness  or  any  satisfaction  with  life  is  under  continuous  attack.
Beliefs, idealism, purpose, dreams, are assaulted. INSANITY IS A REFUSAL  TO
ALLOW OTHERS TO BE, DO OR HAVE.

Any action which would lead to a higher morale has to  be  defended  against
the insane few. A THIRD DYNAMIC PSYCHOSIS IS A DETESTATION OF HIGH MORALE.

The COMMON DENOMINATOR of all these insanities is the desire to SUCCUMB.

Insanities have as their end product self or group destruction.

These eleven types of aberration gone mad are the main points through  which
any group SUCCUMBS.

THEREFORE, these eleven points kept sane guarantee a group's SURVIVAL.

EXAMPLES

Seeing all this in one example permits one to see that these  third  dynamic
insanities combine to destroy.

A. Believing it impossible to obtain money or make it, a  firm  cannot  hire
enough people to produce. So has little to sell,  which  is  badly  promoted
and is not sold so it has no money to hire people.

B. Needing people for another job the firm robs  them  from  a  plant  which
then collapses and fails to make money so no new people can be  hired.  This
reduces production so people have to be dismissed as they can't be paid.

C. Persons are in the firm but are kept doing the wrong things so  there  is
little production and no promotion or sales so there  is  no  money  to  pay
them so they are dismissed.

D. A new product is put in. People to  make  it  are  taken  from  the  area
already making a valuable product which then collapses that area  and  there
is not enough money to promote and selling fails so people are dismissed.

The examples are many. They are these same eleven group insanities  in  play
upon a group, a firm, a society.

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SANITY

If this is a description of group aberration, then it gives the keys to
sanity in a

group.

1. HIRING

Letting people INTO the group at large is the key to  every  great  movement
and bettered culture on this  planet.  This  was  the  new  idea  that  made
Buddhism the strongest civilizing influence the world has seen in  terms  of
numbers and terrain. They did not exclude.  Race,  color,  creed,  were  not
made bars to membership in this great movement.

Politically the strongest country in the world was the  United  States,  and
it was weakened only by its efforts to exclude certain races  or  make  them
second-class citizens. Its greatest internal war  (1861-65)  was  fought  to
settle this point, and the weakness was not resolved even then.

The Catholic Church only began to fail when it began to exclude.

Thus inclusion is a major point in all great organizations.

The things which set a group or organization on a course  of  exclusion  are
(a) the destructive impulses of about 10 or 15% of the society (lunacy)  and
(b) opposition by interests which  consider  themselves  threatened  by  the
group or organization's potential resulting in infiltration (c)  efforts  to
mimic the group's technology destructively and set up rival groups.

All these three things build up barriers that a  group  might  thoughtlessly
buy and act to remedy with no long-range plans to handle.

These stresses make a group edgy and combative. The organization then  seeks
to solve these three points by exclusion, whereas its growth depends  wholly
upon inclusion.

No one has ever solved these points successfully  in  the  past  because  of
lack of technology to solve them.

It all hinges on three points: (1) the sanity of  the  individual,  (2)  the
worthwhileness  of  the  group  in  terms  of  general  area,  planetary  or
universal survival, and (3) the  superiority  of  the  group's  organization
tech and its use.

Just  at  this  writing,  the  first  point  is   solved   conclusively   in
Scientology. Even hostile and destructive personalities wandering  into  the
group can be solved and, due to the basic nature of  Man,  made  better  for
the benefit of themselves and others.

The worthwhileness of the  organization  is  determined  by  the  assistance
given to general survival by the group's products  and  the  actual  factual
delivery of those valid products.

The superiority of a group's admin tech  and  its  application  is  at  this
current writing well covered in current developments.

Thus inclusion is almost fully attainable. The only  ridges  that  build  up
are the short-term defense actions.

For instance, Scientology currently  must  fight  back  at  the  death  camp
organizations of psychiatry whose solution is a dead  world,  as  proven  by
their actions in Germany before and during World War II. But  we  must  keep
in mind that we fully intend to reform and salvage even these opponents.  We
are seeking to include them in the  general  survival  by  forcing  them  to
cease their nonsurvival practices and overcome their gruesome group past.

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There are  two  major  stages  then  of  including  people-one  is  as  paid
organization personnel and one as unpaid  personnel.  BOTH  are  in  essence
being "hired." The pay differs.  The  wider  majority  receive  the  pay  of
personal peace and effectiveness and a better world.

The org which excludes its own field members will fail.

The payment to the org of money or the money payment to the staff member  is
an internal economy. Pay, the real pay, is a better personal survival and  a
world that can live.

Plans of INclusion are successful. They sometimes contain defense  until  we
can include.

Even resistance to an org can be interpreted as a future  inclusion  by  the
org. Resistance or opposition  is  a  common  way  point  in  the  cycle  of
inclusion. In an organization where  everyone  wins  eventually  anyway  the
senselessness of resistance becomes apparent even to the most  obtuse.  Only
those  who  oppose  their   own   survival   resist   a   survival-producing
organization.

Even in commercial companies the best organization  with  the  best  product
usually finds competitors merging with it.

2. TRAINING

Basic training, hats, checksheets and packs MUST exist for every  member  of
a group.

Criminal or antisocial conduct occurs where there is no hat.

Any type of membership or role or post in  the  whole  organization  or  its
field requires individual and team training. Only where  you  have  a  group
member who will not or cannot bring himself to have and wear a hat will  you
have any trouble.

This is so true that it is the scope of personnel enhancement.

Ask yourself "Who isn't trained on his post and hatted?" and you can  answer
"Who is causing the trouble?"

Basic training, slight or great, is vital for every member of a group, paid
or unpaid.

A field auditor must have a hat. A student needs a student hat, etc., etc.

This requires training,

Training begins in childhood. Often it has to be reoriented.

Training as a group member must be done.

Training in exact technology or in the precise tech  of  admin  is  not  the
first stage of training. Basic training of  group  members,  no  matter  how
slight, must exist and be done.

Otherwise group members lack the basic points of  agreement  which  make  up
the whole broad organization and its publics.

Training must be on real materials and must be rapid. The technology of  how
to train is expressed in speed of training.

The idea that it takes 12 years to make a mud pie maker is  false.  TIME  in
training does not determine quality of  training.  Amount  of  data  learned
that can be applied and skills successfully drilled determine training.

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That the society currently stresses time is an aberrated factor.

The ability to learn and apply the data is the end product of training. Not
old age.

The rate of training establishes to a marked degree the expansion factor  of
a group and influences the smoothness of the group during expansion.

If training is defined as making a person or team into a part of  the  group
then processing is an influencing factor. The facilities for processing  and
quantity available are then a determining factor in group expansion.

3. APPRENTICESHIP

Training on post is a second stage of any training-and processing-action.

This is essentially a familiarization action.

To  have  a  person  leave  a  post  and  another  take  it  over  with   no
"apprenticeship" or groove-in can be quite fatal.

The deputy system is easily the best system. Every post is  deputied  for  a
greater or lesser period before the post is turned over and the  appointment
is made. When the deputy is totally familiar he becomes the  person  on  the
post.

Rapid expansion and economy on personnel tend to injure this step.  Lack  of
it can be very destructive.

Optimally there should be one or two deputies for  every  key  post  at  all
times. This is a continual apprenticeship system.

Economically it has limitations. One has to weigh the losses  in  not  doing
it against the cost in doing it. It will be found that the  losses  are  far
greater than the cost, even though it increases  personnel  by  at  least  a
third for a given organization.

When an organization has neglected it as a system (and has turned  over  too
many posts without deputy or apprenticeship action) its economics may  decay
to where it can never be  done.  This  is  almost  a  death  rattle  for  an
organization.

In a  two-century-old,  highly  successful  industry,  only  the  apprentice
system was and is used (Oporto wine industry). The quality  of  the  product
is all that keeps the product going on the  world  market.  If  the  quality
decayed the industry  would  collapse.  Apprenticeship  as  a  total  system
maintains it.

Certainly every executive in an  organization  and  every  technical  expert
should have a deputy in training. Only then could  quality  of  organization
be maintained and quality of product guaranteed.

The total working organization  should  be  on  this  system  actually.  And
whenever a person is moved up off a post, the  deputy  taking  over,  a  new
deputy should be appointed. The last step (appointment of a new  deputy)  is
the one that gets forgotten.

Failure to recruit new people over a period will very surely find the  whole
organization declining soon solely because there is no apprentice system  of
deputies. The organization expands, singles  up  the  posts,  promotes  some
unapprenticed people and begins to lose  its  economic  advantage.  Low  pay
ensues, people blow off, and then no one can be hired. It's a  silly  cycle,
really, as it is prevented easily enough by hiring enough soon  enough  when
the org is still doing well.

The rule is DEPUTY EVERY POST AND NEWLY DEPUTY THEM WHEN PROMOTIONS OCCUR.

The most covert way to get around this is just to call each person's junior
a deputy

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even though he has other duties. This makes it  all  look  good  on  an  org
board. "Do you have each post deputied?" "Oh  yes!"  But  the  deputies  are
just juniors with posts of their own.

A deputy is used to run the same post as it is deputied for.  This  means  a
double posting pure and only.

You'd be amazed at how much production an executive post  can  achieve  when
it is also deputied and when the principal holder of the post will  use  the
deputy and gen him in, not get him to cover an empty lower post.

4. UTILIZATION

People must be utilized.

Equipment must be utilized

Space must be utilized.

Learning to USE is a very  hard  lesson  for  some.  Untrained  people,  bad
organization, poor machinery. inadequate space all  tend  to  send  one  off
utilization.

The rule is, if you've got it use it; if you can't use it get rid of it.

This most specifically applies to people. If you've got a man, use  him;  if
you can't use him get him over to someone who  can  use  him.  If  he  isn't
useful, process and train.

Anyone who can't figure out how to  use  people,  equipment  and  spaces  to
obtain valuable final products is not worthy of the name of executive.

Reversely we get what an executive or foreman is-an executive or foreman  is
one  who  can  obtain,  train  and  use  people,  equipment  and  spaces  to
economically achieve valuable final products.

Some are very skilled in preparing people, systems, equipment, property  and
spaces to be used. But if these then go to someone who  does  not  USE  them
you get a bad breakdown.

The welfare state and its inflation is a sad commentary on "executive
ability."

An executive whose people are idle and  whose  materiel  is  decaying  is  a
traitor to his people and the org, just that, for he will destroy them all.

UTILIZATION requires a knowledge of what the  valuable  final  products  are
and how to make them.

Action which doesn't result in a final product  that  adds  up  to  valuable
final products is destructive, no matter how innocent it seems.

Man has a planet as a valuable final product. Improper use of the  countries
and seas, air and masses which compose it will wind up with the  destruction
of Man, all life  on  it  and  the  usefulness  of  the  planet.  So  proper
utilization of anything is a very real factor.

The  19th  century  industrialist,  like  the  mad  kings  who  built  great
structures, used up men; they didn't properly use men.

And not using them at all, the current fad, is the most deadly of all.

UTILIZATION is a big subject. It  applies  to  resources,  capabilities  and
many other factors.

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The question being  asked  in  all  cases  is,  "How  can  we  USE  this  to
economically obtain a valuable final product?"

Failing to answer that question gives one the "mysteries of life."

5. PRODUCTION

One may be prone to believe there is no sense  in  any  production  at  all.
Such a one would also be likely to say, "There is no sense at all."  Or  "If
they keep on producing it will become impossible to destroy it all."

Production of some final valuable product is the chain of all production
sequences.

Even the artist is producing a reaction. The reaction's service in  a  wider
sphere to enforce it is what gives art its sense. A  feeling  of  well-being
or grandeur or lightheartedness are legitimate valuable final products,  for
instance.

The production areas and activities of an  org  that  produce  the  valuable
final products are the most important areas and activities of the org.

6. PROMOTION

The acceptance of valuable final products and of their value  depends  in  a
large degree upon (a) a real value and (b) a desire for them,

Promotion creates desire for the valuable final product.

The old saw that the man who builds a better mousetrap will have  the  whole
world coming to his door is a total falsity.

Unless the value is made known, and the desire created, the  mousetraps  are
going to go unsold.

Promotion is so important that it can  stand  alone.  It  can  have  limited
success even when there is no product! But in that case it will be of  short
duration.

Promotion must contain reality and the  final  product  must  exist  and  be
deliverable and delivered for promotion to be fully successful.

Public relations and advertising and all their skills cover this area of
promotion.

7. SALES

It is hard to sell what isn't promoted and can't be delivered.

Economics greatly affect selling.

Anything must be sold for a price comparable to its value  in  the  eyes  of
the purchaser.

COSTING is a precise art by which the total  expenses  of  the  organization
administration and production must be  adequately  covered  in  the  PRICING
allowing for all losses and errors in delivery and  adequate  to  produce  a
reserve.

PRICING (the amount being asked) cannot be done without  some  idea  of  the
total cost of the final valuable product.

The sale price of one final valuable product may have to cover the  cost  of
producing other products which are delivered without price.

PRICING however does not necessarily limit itself to only covering
immediate

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cost of a product. A painting with a dollar's worth of paint and canvas  may
have a price of half a million dollars.

Also a painting used in promotion  may  cost  two  hundred  dollars  and  be
displayed at no cost at all to the beholder.

These relative factors also include the SKILL of the  salesman  himself  and
there is much technology  involved  in  the  act  of  selling  something  to
someone and the world abounds in books on the subject.

Therefore sales (once promotion is done) are bound  up  really  in  COSTING,
PRICING AND SELLING.

The value in the eye of the purchaser is monitored by the desire created  in
him for it. If this is also a real value and  if  delivery  can  occur  then
SELLING is made very easy-but it is still a skilled action.

The production of a valuable final product is often  totally  determined  by
whether or not it can be sold. And if it can be  sold  at  a  price  greater
than the cost of delivering it.

That it gets sold depends on the salesman.

The skill of the salesman is devoted to enhancing the desire  and  value  in
the eyes of the buyer and obtaining adequate payment.

8. DELIVERY

The subject and action of DELIVERY is the most susceptible to  breakdown  in
any organization. Any flaw  on  the  sequence  of  actions  resulting  in  a
valuable final product may deteriorate it or bar off final delivery.

There are many preparatory or hidden-from-public-view steps on a  production
line. When any of these break down, delivery is imperiled.

Given the  raw  materials  and  wherewithal  to  make  some  valuable  final
product, the valuable final product should occur.

WHEN  A  VALUABLE  FINAL  PRODUCT  DOES  NOT  GET  PRODUCED  AND  CANNOT  BE
DELIVERED, REPAIR THE EARLIER STEPS OF ITS PRODUCTION.

Example: An auditing result is not delivered.  Don't  just  repair  the  pc.
Repair training of auditors and C/Ses. Repair the assembly line  before  the
valuable final product. The subproducts are less visible. Yet  they  add  up
to the valuable final product.

THE LAW OF THE IRREDUCIBLE MINIMUM occurs in all delivery problems.  Someone
is trying to produce only the visible end product of a  post  or  production
line and neglects the earlier contributory actions  and  products  as  these
are not plainly visible.

When an organization or its posts operate only on  an  irreducible  minimum,
production goes bad and DELIVERY crashes.

Take a cook who has his post at an irreducible minimum.  Food  is  appearing
on the table. If he reduced just one bit more the food would  no  longer  be
edible at all. He neglects purchasing, menus  and  preparation.  That  these
occur is invisible to the diners. That food appears on the table is  visible
to the diners. If the cook operates at any less level than he is, no  edible
food would be visible-hence, irreducible minimum. The food  served  will  be
bad. But it will be visible. Invisible-to-the-diners  actions  aren't  being
done.

To improve the food, get the less visible actions done. Get the sequence  of
actions all done. The result will be improved food.

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Take training. The final valuable product is a trained auditor.  The  Course
Supervisor who runs his post on an  irreducible  minimum  is  simply  there,
appearing to supervise.

His final product may be horribly unskilled. The teaching may take
"forever."

To improve this one goes earlier  on  the  assembly  line-materials,  packs,
tapes, student tech services, recorder repair. scheduling-dozens of  actions
including getting the Course Supervisor trained.

The visibility is still a Course Supervisor and students being  taught.  But
with the whole earlier line in, the final valuable product is excellent!

A being hopes lazily for instantaneous production. It  doesn't  happen  this
way in the mest universe. Things are produced in a sequence  of  subproducts
which result in a final valuable product. Hope all you  want  to.  When  you
omit the subproducts you get no valuable final product.

When the people in an organization do not know the valuable  final  products
of the org and when a person on a post does not know the final  products  of
his post, a condition arises where no org DELIVERY  will  occur,  or  if  it
does occur it will be poor or costly. It is vital that a person  knows  what
his post final products are and  what  his  unit,  section,  department  and
division subproducts are and how his own and each  of  these  contribute  to
the valuable final products of  the  organization  for  actual  delivery  to
occur.

Delivering other than valuable final products or useless final  products  or
final products that need constant correction also adds up to nondelivery.

A whole civilization can break down around the point of DELIVERY. So can  an
organization.

Since money can be looked upon as  too  valuable  a  final  product  it  can
actually prevent DELIVERY.

Failure to deliver is the one point beings do not forgive. The  whole  cycle
hangs upon DELIVERY.

DELIVER WHAT IS PROMISED when it  is  expected,  in  sufficient  volume  and
adequate quality, is the first maxim even of a  group  in  politics  or  the
humanities.

9. FINANCE

Finance too often disregards the other factors in this scale  or  the  other
factors in this scale too often disregard finance for organizations to  long
remain viable.

Financing must be in agreement with all the other factors of this scale  and
all the other factors must be in agreement with  finance  for  viability  to
occur.

Because money is interchangeable for commodities then people can confuse  it
with too many things.

If you regard money like so many beans, as a commodity in itself,  you  open
the door to understanding it.

Money is so many beans in to get so many beans out.

When you can master this you can handle FINANCE.

The FINANCE persons of an org, a civilization, a planet, should put so  many
beans in and expect more beans out than they put in. This is  quite  correct
as a viewpoint for finance.

336



The difference of beans in and beans out for a planet is made up  by  adding
beans enough to those already in existence to cover new commodity.

When finance people fail  to  do  this  beans  cease  to  be  in  pace  with
production and inflation and deflation occur.

In an org or any of its  parts,  industriousness  of  the  staff  makes  the
difference between the beans in and beans out.

An org has to have income greater than outgo. That  is  the  first  rule  of
finance. Violating it brings bankruptcy.

Now if the FINANCE people of an org apply the  same  rule  remorselessly  to
all its transactions (financial planning) with each person and  part  of  an
org, finance becomes real and manageable.

So many beans in to support the first division means so many  beans  out  of
the org back to finance  because  of  the  cooperative  work  of  the  first
division.

A hectic effort to work only with production products will wind  finance  up
in a knot.

One has to estimate (COST) the contribution of each part of an  org  to  the
valuable final product to know what to allow what part of an org.

Finance has to have a full reality on the valuable final  products  and  the
subproducts and post products of the whole  org  to  intelligently  allocate
funds.

This person, that division, each contributes some part of  the  action  that
results in the money received for the valuable final products.

So finance can extend so  much  money  for  each  and  expect  that  and  an
additional amount back,

If this occurs, so will expansion.

Finance comes unstuck when it fails to "COST" an organization and  fails  to
support valuable final product production.

Finance must not only practice "income greater than outgo" for the  org,  it
must practice it for each part of the org as well.

Then solvency becomes real.

The greatest aberration of finance is that it  seeks  to  save  things  into
solvency. The real losses in an org are the sums never made. These  are  the
most important losses for finance to concentrate upon.

An org that makes f-500 a week that should make E5000 a  week  in  potential
is losing the finance people f-4500 a week!

Finance can force production along certain lines by  putting  in  funds  and
getting more back.

Finance becomes too easily the management of an org but it  only  does  that
when it ceases to deal in its own commodity-money.

An org which has executives unfamiliar with finance will fall at  once  into
the control of the finance people in the org. And these finance  people,  if
they don't really know money,  will  fall  at  once  under  the  control  of
outside finance people.

One has to know finance in any organization anywhere, even in  a  socialism.
Sooner or later the books get balanced in any society.

337



10. JUSTICE

Without justice there can be no real organization.

Even a government owes its  people  an  operating  climate  in  which  human
transactions and business can occur.

Where insane and criminal individuals operate unchecked  in  the  community,
justice is uncertain and harsh.

The society in which the insane rise to positions of power becomes a
nightmare.

Justice is a difficult subject. Man handles it badly.

Justice cannot occur until insanity can be detected and cured.

The whole task of justice is to defend the honest man. Therefore the  target
of justice is the establishment of a sane society.

The inability to detect or cure the insane destroys civilizations.

Justice is an effort to bring equity and peace. When one cannot  detect  and
cure insanity then sooner or later justice actions will  become  unjust  and
be used by the insane.

To us, justice is the action necessary to restrain  the  insane  until  they
are cured. After that it would be only an action  of  seeing  fair  play  is
done.

11. MORALE

When all factors balance up in an org and give the group a common  direction
and mutual viability, morale can be expected to be good.

When the Admin Scale and the ten  elements  described  are  out  of  balance
(without proper importance given to each) and when  one  or  many  of  these
(Admin Scale and the elements herein described) are  not  in  agreement  one
with another, then morale will be poor.

Morale is not made of comfort and sloth. It is made of  common  purpose  and
obstacles overcome by the group.

When the Admin Scale and these elements are not  held  together  by  similar
aims, then morale has to be held up artificially.

The most ghastly morale I have ever seen was amongst "the idle rich."

And the highest morale I've ever seen was  amongst  a  furiously  dedicated,
common-purposed group working under  fantastic  stresses  with  very  little
against almost hopeless odds.

I used to observe that morale in  a  combat  unit  would  never  materialize
before they had been through hell together.

All drama aside, morale is made up of high purpose  and  mutual  confidence.
This comes from the Admin Scale items and  these  elements  of  organization
being wellaligned, one with the next, and honest sane endeavor to achieve  a
final goal for all.

L. RON HUBBARD

Founder

LRH:ms.rd.ts.gm

338



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 30 DECEMBER 1970

Remimeo

SO Member Hat

Staff Member Hat

Personnel Series 15

Org Series 20

ENVIRONMENTAL CONTROL

The differences between a competent person and  an  incompetent  person  are
demonstrated in his environment (surroundings).

A person is either the effect of his environment  or  is  able  to  have  an
effect upon his environment.

The 19th century psychologist preached  that  man  had  to  "adjust  to  his
environment." This false datum helped begin a racial degeneration.

The truth is that Man is as successful as he adjusts the environment to
him.

Being competent means the ability to control and operate the things  in  the
environment and the environment itself.

When you see things broken down around the mechanic who is  responsible  for
them, he is plainly exhibiting his incompetence-which  means  his  inability
to control those things in his environment and adjust  the  environment  for
which he is responsible-motors.

When you see the mate's boats broken up you know he does  not  have  control
of his environment.

Know-how, attention, and the desire to be effective  are  all  part  of  the
ability to control the environment.

One's "standards" (the degree of rightness one is trying  to  establish  and
maintain) are  directly  related  to  one's  desire  to  have  a  controlled
environment.

The attainment of  one's  standards  is  not  done  by  criticism  (a  human
system). It is done by exerting control  of  one's  environment  and  moving
things effectively toward a more ideal scene.

Control of the environment begins with oneself-a good  case  state,  a  body
that one keeps clean and functioning. This extends to one's  own  gear,  his
clothing, tools,  equipment.  It  extends  further  to  the  things  one  is
responsible for in the environment. Then  it  extends  out  into  the  whole
environment, the people and the mest.

One can get pretty dirty fixing things up. That's okay.  But  can  one  then
also clean oneself up?

The ability to confront mest  is  a  high  ability.  After  that  comes  the
ability to handle and control it.

The ability to confront people is also a high ability. After that comes  the
ability to get along with them and to handle and control them.

There is the supreme test of a thetan-the ability to make things go right.

The reverse of this is the effort to make things go wrong.

339



Incompetence-lack of know-how, inability to control-makes things go wrong.

Given some know-how or picking  it  up  by  observation,  sane  people  make
things go right.

The insane remain  ignorant  intentionally  or  acquire  know-how  and  make
things go wrong.

Insane acts are not  unintentional  or  done  out  of  ignorance.  They  are
intentional, they are  not  "unknowing  dramatizations."  So  around  insane
people things go wrong.

One cannot tell the  difference  really  between  the  sane  and  insane  by
behavior. One can tell the difference only by the product.  The  product  of
the sane is survival. The product of the insane is an overt act. As this  is
often masked by clever  explanations  it  is  not  given  the  attention  it
deserves. The pretended good product of the insane turns out to be an  overt
act.

A large percentage of this planet's population (undetermined  at  this  time
for the "general public" but in excess of 20%) are  insane.  Their  behavior
looks passable. But their product is an overt act.  The  popularity  of  war
confirms this. The products of existing governments are mainly  destructive.
The final  product  of  the  human  race  will  be  a  destroyed  planet  (a
contaminated air cover rendering the planet unable to sustain life,  whether
by radiation or fumes).

Thus, due to the inability  to  detect  and  handle  the  insane,  the  sane
majority suffers.

The hidden actions of the insane can destroy faster than an environment  can
be created UNLESS one has the know-how of the mind and life and the tech  of
admin and the ability and know-how to handle mest.

An area or activity hit by an influx of new recruits or new customers  tends
to unsettle. Its mest gets abuse, things go out of control.

Gradually, working to put in order, the standards are again being  attained.
The minority insane get handled, the know-how of  groups  and  orgs  becomes
more generally known, the tech of mest gets used again.

As an organization expands it goes through cycles of lowered  condition  and
raised condition. This is normal enough since by taking  on  more  and  more
area one is letting in more and more insane even though they are in a  small
proportion to the sane.

Order is reestablished and survival trends resumed to the  degree  that  the
sane begin to reach out and handle things around them and as the insane  are
made sane.

Thus one gets downtrends and uptrends. As soon as a  group  begins  to  feel
cocky, it takes on more area. This includes  more  unhandled  people,  admin
and mest and a downtrend begins. Then the  sane  begin  to  handle  and  the
insane begin to be sane and the uptrend starts.

This is probably even the basis of national economic booms and depressions.

This is only bad to the degree that the insane are put in  charge.  As  soon
as this happens the downtrend becomes permanent and cultural decay sets in.

A group expanding rapidly into  a  decadent  culture  is  of  course  itself
subjected to the uptrend-downtrend cycles  and  has  to  take  very  special
measures to counteract the consequences of expansion in  order  to  maintain
any rate of growth.

The individual member of a group can measure his own progress  by  increased
ability to handle himself, his  post  and  environment  and  the  degree  of
improvement of the group itself because of his own work within it.

340



A group that is messing up its gear and environment worse than it did a
while ago and is not improving it of course has to be reorganized before it
perishes.

No group can sit back and expect its high brass to be the only ones to
carry the load. The group is composed of individual group members, not of
high brass.

The survival of a group depends upon the ability of its individual members
to control their environment and to insist that the other group members
also control theirs.

This is the stuff of which survival is made.

A sane group, knowing and using their technologies of handling men and
mest, cannot help but control their environment.

But this depends upon the individual group member being sane, able to
control his mest and those around him and using the tech of life, the tech
of admin, the tech of specific types of activity.

Such a group inevitably inherits the culture and its guidance.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

341



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste

HCO POLICY LETTER OF 27 DE

Remirneo

HCO Area Sec

Dir RAP

Hats Officer     Personnel Series 16

HATS PROGRAM PITFALLS

The main outnesses about hats are

1. Personnel having a hat and title but doing some other job or jobs.

2.    Personnel falling between two divs or posts and being in neither.

3.    Personnel having no hat at all.

4.    Personnel unable to even cope because people around them don't have
hats.

5.    Hats matching an org board but the org board itself is disorganized.

6.    Personnel holding a part-time hat but no other hat even though full-
time.

7.    Hats lost in post turnovers and no complete hat file.

8.    The only other copy in the hat file issued and also lost.

9.    Org pattern changes which make hats unreal.

10.   Juniors trying to wear their hats but a senior, being unaware of
them, issuing different orders.

11.   Seniors trying to wear their hats but juniors unaware of them and
making different demands.

12.   Personnel moving off not replaced, leaving others in the organization
to carry a load for which they have no hat.

13.   Missing ideal scene for hat.

14.   Missing general ideal scene for division.

15.   No concept of the scene at all.

16.   A person just not doing his hat.

17.   Checksheet and/or pack missing or incomplete for post.

18.   Missing any part of full hat content per HCO PL 22 Sept. 70, HATS.

19.   Hat checksheet contains (a) omissions (too short); (b) highly
irrelevant data; (c) doesn't belong to the post.

20.   Counter-policy present in hat write-up.

21.   Seniors issue counter-policy in despatches or verbally.

22.   Senior not grooving personnel in on post or seeing to proper hat
study.

342



23.   Valuable final product missing for hat.

24.   Purpose and/or valuable final product missing in hat for group's
whole activity.

25.   An earlier or more basic hat is out such as a top executive not
knowing the basic staff hat fully.

26.   Nonutilization in any  of  its  various  forms  such  as  a  personnel
trained for one thing is required to do something else. Or his  training  is
not used. Or he is not used at all.

If the Hats Officer can do his job and not get caught up in these  pitfalls,
we'll really soar.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

343



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 JANUARY 1971

Remimeo

Personnel Series 17

Org Series 21

DUPLICATING FUNCTIONS

All you have to do to run out of personnel, finance and  get  no  production
is to duplicate the same functions that give the same product in an org.

Take three orgs side by  side  under  the  same  management.  Only  if  each
division  of  each  org  had  entirely  different  products  would  this  be
possible.

Now let's do it wrong. Each of these 3 orgs have an HCO and  full  personnel
duties. Each separately promotes. Each has its own finance office, each  has
its production div producing the same products. Each has its own  correction
div-the place in general would be very overmanned, yet  each  div  would  be
undermanned for its full functions. The product  would  be  terrible  if  it
existed at all. Morale would be ghastly, inter-org collisions continual.

      The right way would be to work out the different products and then
assign them

to one or another of these orgs. One org would have to be the source org
that produced

the other two. One org would have all the finance with liaison only in the
other two

orgs. One org would have to hire, hat and train with only liaison in the
other two. The

orgs would have org bds which had the function but under it would be the
note

"Liaison with    19 source org.

In the impatience and emotion of organizing, one org  tends  to  individuate
and establish a duplicate function because  "it  can't  get  service."  This
begins the catastrophe. Now they'll all begin to go broke while  having  men
bulging out of the windows.

In looking over potential insolvency, look over duplicate functions.

L. RON HUBBARD

Founder

LRH:mes.gm

Personnel Series 18

[Note: BPL 10 Feb. 1971R, Personnel Series 18, ADDS TO PERSONNEL SERIES  NO.
8,16 SEPT. 1970, ETHICS  AND  PERSONNEL  has  been  canceled.  It  has  been
replaced by Scientology Policy Directive 22, Personnel Series  18,  ADDS  TO
PERSONNEL SERIES NO. 8,16 SEPT. 1970, ETHICS AND PERSONNEL,  dated  14  July
1982. The text of Personnel Series 18 remains essentially the same.

Personnel Series 18 is based on a Founder advice to write an  issue  on  I&R
Forms being done on all personnel demands coming into Dept 1. As it was  not
written , Personnel Series 18 is not included in this volume.]

344



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 16 MARCH 1971

                                  Issue IV

Remimeo

Org Series 25

Personnel Series 19

LINES AND HATS

It will be found that in organization there are MANY major factors
involved.

The following three, however, give the most problems:

1.    Personnel

2.    Hats

3.    Lines.

Technology is a subdivision of both personnel (who may have to be  specially
trained before they can be considered personnel) and hats (which are  mainly
admin technology and line functions).

To solve any problem, one has to recognize what the problem is.  One  cannot
solve problem A by trying to solve problem B or C. Example: Problem: broken-
down car. You cannot fix the car by repairing  the  kitchen  lino.  Example:
You cannot floor the kitchen by fixing the car.

All this may seem obvious when obviously stated. But there is a more  subtle
version. ANY PROBLEM THAT DOES NOT SOLVE IS NOT THE PROBLEM. There  must  be
some other problem.

Locating and isolating situations  (problems)  in  an  organization  is  the
technique of the Data Series. That technology will find for one the  problem
that should be solved.

As there are three major organizational factors these  then  also  form  the
core of all organizational situations (or problems, same thing).

Each one of these is its own zone-personnel, hats, lines.

Each one has its own problems. There are situations in personnel. There  are
situations in hats. There are situations in lines.

They are related. They are not identical.

You will find you  cannot  wholly  solve  a  problem  in  lines  by  solving
personnel. You cannot wholly solve a problem in hats by solving  lines.  You
cannot wholly solve a problem in personnel by solving the other two.

Example: Production hours are down. Fifteen new personnel are added  to  the
area. Production stays down. It was a problem in lines.

Example: Confusion  reigns  in  the  pipe  shop.  The  lines  are  carefully
straightened out. Confusion still reigns. It was a problem in hats.

Example: Broken products are wrecking org repute.  Hats  are  carefully  put
on. Products continue to be broken. It was a problem in personnel.

345



Example: The org stays small. Executives work harder. The org  stays  small.
It was a series of problems in personnel, hats and lines, none addressed  at
all.

You will see symptoms of all this in various guises. The test of whether  or
not the right problem was found is whether or not  production  increased  in
volume, quality and viability.

In actual practice one works on  all  three  of  these  factors  constantly-
personnel, hats and lines-when one is organizing.

You will find with some astonishment that failure to have or  know  or  wear
or do a hat is the commonest reason why lines do not go in.  That  personnel
is hard to procure and train because hats and lines are being  knocked  out.
That hats can't be worn because lines or personnel are out.

Situations get worsened by solving the wrong problem  instead  of  the  real
problem. In the Data Series this is called finding the right Why.

Organizational problems center around these three  things  in  the  broadest
general sense. More than one can be present in any situation.

Production problems are concerned with  the  particles  which  flow  on  the
lines, changed  by  the  hatted  personnel,  with  consumption  and  general
viability.  So  to  make  a  full  flow   from   organization   through   to
distribution, one would add raw materials, changed state  of  materials  and
their consumption. Organization is not an end-all. To  have  value  it  must
result in production.

But when personnel, hats and  lines  are  not  solved,  production  is  very
difficult. Therefore to get production one  must  have  an  organization  to
back it up. And personnel, hats and lines must exist and be  functional.  If
these exist, the rest of the factors of establishment can  be  brought  into
being.

It goes without  saying  that  organization  involves  other  problems  like
space, materiel, finance, etc. These and many more also  enter  into  "Whys"
of no production. But dominating others are problems in personnel. hats  and
lines. Others tend to solve if these are handled and organized.

L. RON HUBBARD

Founder

LRH:mes.sb.rd.gm

346



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 MARCH 1971

Remimeo

PerNonnel Series 20

PERSONNEL PREDICTION

Sudden and unauthorized transfers of personnel for whatever  reason  disrupt
hats and lines. Every such transfer  is  a  failure  to  predict  concerning
personnel.

By a few transfers ("musical chairs"), an area can be totally unmocked.

Personnel people tend to undervalue the time and care  necessary  to  train,
hat and apprentice people.

Even a small unit is a "working installation" if it produces.  An  order  to
"turn over the hat this morning and take another post" is quite unreal.

Prediction is the button that is usually out in personnel handling.

How many will we need in - weeks or months? is the key question. It  is  the
one Personnel should continually work on. Stressing only "Who can we  assign
to - - 9" shows a lack of prediction.

Man tends to run in today and seldom in tomorrow  much  less  next  week  or
year. The fault will someday destroy him as a species. He is even unable  to
predict the fate of his habitat, the planet.

Thus Personnel should be very wary of this fault.

Recruiting for tomorrow instead of yesterday, people in full-time  training,
future executives being sorted out by today's performance,  all  add  up  to
good prediction by Personnel people.

One must catch up the backlog of yesterday's  needs  by  gradual  moving  up
into the future.

Every key post should have a deputy in training  or  in  apprenticeship  for
the post. By key post is meant one that has urgent responsibility and  great
expertise.

Personnel will see where it stands by just listing their current answers  to
these questions:

1.    What are the key posts of the org or activity that require great
expertise and training9 From top to bottom list them out.

2.    How many of the above list have people in training or apprenticeship
for them?

3.    What will be the personnel scene on these posts in one year?

4.    What plans did you have yesterday to do this?

5.    What plans can be made now to do this?

347



Having actually done the above  questions,  one  will  see  what  prediction
consists of regarding personnel and a sample of what it means to predict.

This should be done at full org level and then at divisional level and  then
at department level.

Then  one  will  see  that  sudden  transfers  done  without   training   or
apprenticeship can be avoided in the future at key levels  IF  ONE  PROGRAMS
IT NOW. And then ACTS to make the program work out.

Where prediction is out, expansion becomes impossible to do without
collapse.

For one has to predict expansion as well.

An action on expansion would be:

1.    To increase the org's stats five times (GDSes and GI) how many more
trained, hatted people would be needed:

a.    In the C/O or ED Office?

b.    In HCO?

C.    In Div 2?

d.    In Div 3?

e.    In Dept of Training?

f.    In the HGC?

g.    In Qual?

h.    In the Distribution Division?

i.    In the LRH Comm Office?

j.    In the Estate area?

k.    In the Guardian Office?

1.    In space?

in.   In furniture?

n.    In equipment?

0.    In decoration?

P.    Finance?

q.    Personnel care (food, shelter, clothes)?

While the last (I to q) are not properly "Personnel"  the  personnel  action
would collide with them so hard that personnel action would be stopped.  "Do
not hire anyone else!" "Do not. . . ." "Do not. . . ."

So somebody says, "We are going to boost the GI from $100 to $50,000."

Well, to do that one would have to promote and deliver as well as make
money.

So, when such a prediction is made, what does a good Personnel Officer do?

He does the computations outlined in this policy letter and any  other  that
seem indicated and says, "There you are, chums. This is my part of the  deal
and (presenting a plan) this is how I'll go about it, to hire, recruit,  get
trained and apprenticed the needful personnel. Now what are YOU doing  about
(1) to (q) in this P/L so you  don't  stop  my  progress  doing  my  job  of
getting you eighty additional,  functional,  useful,  nongoofing,  producing
staff?"

This wakes up the prediction elsewhere  so  Personnel's  prediction  doesn't
fall down plop.

Once the action is begun, part of the prediction is  that  it  will  require
continuous guiding, handling and pounding to make it come true.

For instance, it can be predicted that as Personnel  loads  them  in,  there
will be failures  to  program,  hat,  train,  apprentice  and  utilize.  One
Personnel loaded an org full

348



and a month later fifty-seven nonutilized, nonassigned  people  were  combed
out of the debris. "But they are so new. . . ." "But you can't assign.  .  .
." etc., etc. And Personnel got blamed for recruiting  "unsuitable  people."
Because the hatting, training,  apprenticing  actions  were  neglected!  You
can,only recruit untrained people, really.

So Personnel regards unutilized people as a backlog on his lines.  Recruited
not utilized means he still has them as they have not "fed into the org."

"Prove you have used what I got. Show me the programing of  their  training.
How many  have  hats?  How  many  are  apprenticed?"  These  are  legitimate
Personnel questions. And they are demands.

Until utilized, personnel are regarded as  still  on  Personnel's  plate  no
matter where they've gotten to in the org.

Otherwise, Personnel is pounded, pounded for  people,  people,  people  when
the halls are impassable with nonutilized personnel.

Yet I've never heard a Personnel man say, "What'd you do  with  the  guys  I
got you last week?" It would produce some blushes.

Personnel aren't personnel really until they are utilized.

Hectic transfers from working posts, "musical chairs," all  come  from  lack
of personnel programs based on predictions.

When programs are made and are in action,  a  failure  to  predict  probable
failures to hat, train, apprentice, post, is  a  legitimate  prediction  and
should be watched carefully and corrected by Personnel.

L. RON HUBBARD

Founder

LRH:mes.rd.gm

349



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 29 JULY 1971

Remimeo

Org Series 28

Personnel Series 21

WHY HATTING?

A few days ago when I found that musical  chairs  and  flubbed  hatting  had
unstabilized some areas, I wondered whether or  not  this  might  stem  from
some social aberration that was very general in the societies  in  which  we
are working.

And it seems to have been the case. I worked on it a bit and found this:

LAW: THE POWER OF A THETAN STEMS FROM HIS ABILITY  TO  HOLD  A  POSITION  IN
SPACE.

This is quite true. In Scn 8-80 the base  of  the  motor  is  discussed.  It
holds two terminals in fixed positions. Because they  are  so  fixed,  power
can be generated.

If a thetan can hold a position or location in space he can generate POWER.

If he cannot, he cannot generate power and will be weak.

We have known this for 19 years. It applies here.

Observation: MODERN SOCIETY TENDS TO CONFUSE AND  UNSTABILIZE  PERSONS  WITH
ITS HECTIC PACE.

Observation: BEINGS WHO ARE AFRAID OF STRONG PEOPLE TRY TO WEAKEN THEM.

Observation: PERSONS WHO ARE PUSHED AROUND FEEL THEY CANNOT HOLD A  POSITION
IN SPACE.

Observation: PEOPLE HATE  TO  LOSE  THEIR  POSTS  AND  JOBS.  THEY  FIND  IT
DEGRADING.

In processing picking up this chain of lost  positions  achieves  very  good
gains and rehabilitates a person's ability to hold a job.

LAW: BY GIVING A PERSON A POST OR POSITION HE IS SOMEWHAT  STRENGTHENED  AND
MADE MORE CONFIDENT IN LIFE.

LAW: BY LETTING A PERSON RETAIN HIS POST HE IS MADE MORE SECURE.

LAW: BY HATTING A PERSON HE IS GREATLY STRENGTHENED AS HE IS HELPED TO  HOLD
HIS POST.

A basically insecure person who feels he is unable to hold his  position  in
space, is sufficiently strengthened by hatting to feel secure enough  to  do
his job.

LAW: HAVING A HAT,  BEING  HATTED,  AND  DEMONSTRATING  COMPETENCE  MAKES  A
PERSON FEEL CAPABLE OF HOLDING HIS POSITION IN SPACE  AND  HE  BECOMES  MORE
STABLE, CONFIDENT IN LIFE AND MORE POWERFUL.

350



LAW: UNHATTED PERSONS ON A POST CAN BECOME CRIMINAL ON THE POST BECAUSE
THEY FEEL INSECURE AND BECOME WEAK.

When a person is secretly afraid of others he instinctively will not hat
them or hats them wrongly and tends to transfer or move them about-

When a person is insecurely posted and insufficiently hatted he can try to
weaken others by trying to prevent their hatting and trying to get them
transferred or even dismissed.

This is apparently the social aberration at work.

The answer to a sane org and a sane society is not welfare and removal. It
is

Recruit them Train them Hat them Apprentice them Give them a post.

This is so strong in truth it would de-aberrate the bulk of the crime out
of a society.

And it sure will put an org in POWER.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

351



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I I AUGUST 1971

Remimeo     Issue 11

Personnel Series 22

DON'T UNMOCK A WORKING INSTALLATION

The stable rule of a good HAS or HCO Cope Officer is NEVER UNMOCK A  WORKING
INSTALLATION.

It takes a lot of executive time and effort to build up a section or dept
or division.

For someone to then come along and  scramble  it  up  with  transfers  is  a
criminal action.

If a unit, section, dept or division is operating well, don't unmock it.

Strengthen it. Hat it better. Put apprentices in it opposite  to  its  posts
to learn. Give it help.

But DON'T SCRAMBLE IT.

The work of years can be destroyed overnight by "urgent," "vital"  personnel
action.

Such crazy actions are only done by people too lazy  to  recruit  and  train
new people or by unreal financial  planning  or  a  failure  to  get  it  to
produce.

THE MAIN REASON WE HAVE EVER HAD SLUMPS HAS BEEN UNMOCKING ORGS OR UNITS.

Firing people, too heavy ethics, putting off people as "PTS"  when  all  you
needed was to pull their withholds, a thousand  reasons  can  be  given  for
unmocking an org or its parts.

They are all cover-ups for execs who won't keep the place busy and  for  HCO
failures to recruit, train and hat.

To do so is a sign of insanity.

People like their jobs.

DON'T UNMOCK A WORKING INSTALLATION.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

[Note: See also HCO PL 13 July 1974, Issue 11, Org Series 34, WORKING
INSTALLATIONS on page 423 of Management Series Volume 1.]

352



Personnel Series 23R

[Note: BPL 23 Dec. 1971R, Personnel Series 23R, 1:1 TECH ADMIN RATIO ON  NEW
RECRUITS, which was not written , has been canceled  by  Scientology  Policy
Directive 23, BPL 1: 1 TECH ADMIN RATIO ON NEW RECRUITS CANCELED,  dated  14
July 1982. The subjects of "tech/admin ratio" and "manning up  an  org"  are
more properly covered in the following list of issues:

HCO PL 2 June 60 REQUIREMENTS FOR STAFF POSTS

HCO PL 20 July 66RA    STAFF STATUS

      Re-rev. 21 Dec. 78

LRH ED 49 INT    ORGANIZATION PROGRAM NO. I

HCO PL 29 Aug. 70      Personnel Series 2

      Issue 11   PERSONNEL PROGRAMING

HCO PL 29 Aug. 70      Personnel Series 3

      Issue III  RECRUIT IN EXCESS

HCO PL 24 Sept. 7 1 RB ASSIGNMENT, MODEL TO BE USED

HCO PL 14 Nov. 76      Admin Know-How Series 36

            Org Series 36

            Executive Series 18

            Personnel Series 28

            MANNING UP AN ORG

HCO PL 23 Dec. 79R     TECH ADMIN RATIO

      Rev. 17 June 81

HCO PL 30 Dec. 79R     TECHNICAL TRAINING CORPS

      Rev. 13 Feb. 80

HCO PL 30 Oct. 80      Personnel Series 37

      Issue III  POST TRANSFERS

FO 3756RA   RECRUIT TRAINING LINE-UP

      (Sea Org orgs only)]

Personnel Series 24

[Note: HCO PL 14 Jan. 1972, Issue IV, Personnel Series 24, THE "OK TO BE  A-
" SYSTEM has been canceled by Scientology Policy Directive 10,  CANCELLATION
OF HCO PL 14 JAN. 72 ISSUE IV -PERSONNEL  SERIES  24,  PERSONNEL  PROGRAMING
SERIES I I - THE "OK TO BE  A--"  SYSTEM,  dated  28  Apr.  1982.  Personnel
Series 24, which was not written , was based on a sequence of hatting  which
has since been changed. The correct basic sequence of hatting  is  given  in
HCO PL 23 July 1972R, Esto Series 23R, Exec Series 15R,  Org  Series  31  R,
THE VITAL NECESSITY OF HATTING and HCO PL 24 June 1970, MANAGEMENT CYCLE.]

353



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 12 MAY 1972R

Remimeo     REVISED 27 OCTOBER 1982

Int Finance

      Network for

      Enforcement

            (Revised to update the distribution

            in light of the new Finance Network)

ETHICS

                            Executive Series 13R

                             Finance Series 12R

                            Personnel Series 25R

PTS PERSONNEL AND FINANCE

PTS means Potential Trouble Source. This is a person who is connected  to  a
suppressive person, group or thing. (For further data on  PTSness  see  HCOB
24 Nov. 65, SEARCH AND DISCOVERY and HCO PL 27 Oct.  64  (reissued  23  June
1967),  POLICIES  ON  PHYSICAL  HEALING,  INSANITY  AND  POTENTIAL   TROUBLE
SOURCES.)

NCG means No Case Gain despite good and sufficient auditing.

A chronically ill person, whether the person is known to be connected  to  a
suppressive or not, is always found to have been so connected and PTS.

IT IS UNSHAKABLE POLICY HEREAFTER THAT NO PERSON WHO IS PTS  OR  CHRONICALLY
ILL OR WHO GETS NO CASE GAIN MAY BE ON FINANCE OR REGISTRAR LINES OR IN  TOP
COMMAND POSTS OR AS HAS OR ETHICS OFFICER OR MAA.

TECHNICAL FACT

A person who is connected to a  suppressive  person,  group  or  thing  will
dramatize a "can't have" or an "enforced overt have"  on  an  org  or  staff
members.

A "can't have" means just that-a depriving of substance or action or
things.

An "enforced overt have" means forcing upon another a substance, action,  or
thing not wanted or refused by the other.

The  technical  fact  is  that  a  PTS  person  got  that  way  because  the
suppressive was suppressive by depriving the  other  or  enforcing  unwanted
things upon the person.

The PTS person will dramatize this characteristic in reaction to the
suppression.

Therefore, a PTS person  as  an  ED,  C/O,  Product  Officer,  Org  Officer,
Treasury Sec, Cashier, or Body Reg will run a can't have on the org and  its
staff by

a.    Refusing income

b.    Wasting income made

354



C.    Accepting wrong customers (like psychos) and forcing them on the org

d.    Fail to provide staff or service

e.    Advocate overt products.

HISTORICAL

When staffs went on proportionate pay in the late 1950s, so long  as  1  ran
the orgs directly, the staffs made more money than before.

When 1 moved off these lines directly, the  staffs  began  to  receive  less
money personally.

At that time it seemed to me that proportionate pay served as an  excuse  to
some in an org to run a can't have on the staff.

We knew that some Registrars could take money in  easily  and  others  never
seemed to be able to.

The technical reason for this has just emerged in another line of research
entirely.

In completing materials and search on Expanded Dianetics, 1 was  working  on
the mechanism of how a PTS person remained ill.

1 found suppressives became so to the person by running a -can't  have"  and
"enforced overt have." This pinned the PTS person to the suppressive.

Working further 1 found that a PTS person was a robot  to  the  suppressive.
(See HCOB 10 May 1972, ROBOTISM.)

This research was in the direction of making people well.

Suddenly it was apparent that a PTS person, as a  robot  to  SPs,  will  run
"can't haves" and "enforced overt haves" on others.

Checking rapidly, it was found that where finance lines  were  very  sour  a
PTS person was on those lines.

RECOVERY

PTS tech, Objective Processes, PTS Rundowns, Money  Processes  and  Expanded
Dianetics will handle the condition.

However, one cannot be sure that it has been handled expertly in orgs  where
a money "can't have" has been run as its tech quality will be low due to  an
already existing lack of finance.

Only stats would tell if the situation has been handled fully.

Thus the policy stands. Handled or not handled, no person who is PTS or  who
has no case gain will  be  permitted  in  top  command  or  any  lines  that
influence finance.

Any org which has consistently low income  should  be  at  once  suspect  of
having PTS or NCG persons on the key finance posts, and an immediate  action
should be taken to discover the  PTS  or  NCG  condition  and  replace  such
persons with those who are not connected to suppressives or who do get  case
gain.

Nothing in this policy letter permits any PTS person to  be  in  an  org  or
cancels any policy with regard to PTS.

This policy letter requires direct check, close investigation and handling
of PTS or

355



SP situations on these posts that may go undetected otherwise.

NOTHING IN THIS POLICY LETTER PERMITS ANY KEY ORG POST TO

REMAIN EMPTY.

NATIONAL

As a comment on something that may impinge on orgs and might affect them,
the

FOREMOST reason for  a  failing  national  prosperity  and  inflation  is  a
personal Income Tax agency. This runs a vicious can't have on every  citizen
and makes them PTS to the government. Individuals even begin to run a  can't
have on themselves and do not produce.  This  IS  the  cause  of  a  failing
national economy. It can be a factor in an org and must be  handled  on  the
individuals so affected.

L. RON HUBBARD

Founder

Revision written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm Copyright@ 1972, 1982

[Note: In addition to the updated distribution, the first paragraph of this
policy letter has been revised. That paragraph in the original policy
letter read as follows: "PTS means Potential Trouble Source. This is a
person who is connected to a suppressive person, group or thing. (For full
information on PTS see HCO PL 31 May 1971, Issue IV, revised 5 May 72, a
checksheet.)"I

Personnel Series 26R

[Note: BPL 3 Apr. 1973R, Issue 1, Personnel Series 26R, HATTING, has been
canceled by Scientology Policy Directive 9, PERSONNEL SERIES 26R HATTING
CANCELED, dated 28 Apr. 1982. Personnel Series 26R, which was not written ,
was found to be an unnecessary restatement of already existing policy on
hatting and Hats Officers.]

356



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 24 JUNE 1973R

Remimeo     REVISED 23 OCTOBER 1975

      (The revision is the signature.)

      Establishment Officer Series 29R

      Personnel Series 27R

The concept of what is a "complement" is probably  generally  misunderstood.
This means the officially allowed  number  of  persons  and  the  officially
designated posts for an activity, whether an org or a ship.

Without these basic complements orgs get misposted. Instead of ten  auditors
they have one auditor and nine admin personnel somewhere else.

This general concept of complement is generally missing  and  underlies  the
reason why org boards are, to some degree, in disuse.

In any org which is not doing well you may find  not  enough  personnel  and
too many personnel. You may also find  that  the  personnel  there  are  not
posted onto the post necessary to be held.

Designating the post necessary to be held is what is meant by  "assigning  a
complement."

I never realized the concept was hard to get across until recently.  In  the
dictionary it says that a complement is simply a full list of  the  officers
and men of a ship. This falls so far short of the actual definition that  it
generates confusion

A complement is the full list of posts and where  they  belong  on  the  org
board, which must be held. This gives you a slightly different idea of  what
is meant by "complement."

One org, for instance, didn't have a standard complement. It simply had  all
possible posts which could be held in the org. This does not tell  you  what
posts should be held in the org.

Therefore, personnel control is not possible.

In the case of another org there was a maximum  allowed  complement  but  it
was never filled up.

There is a complement for every separate and individual org.

Until the complement of an org is laid out, known and filled, there will  be
continual trouble with personnel and difficulties in handling it.

The sooner this is straightened out, the easier time there will be for all.

L. RON HUBBARD

Founder

LRH:mg.gm , 1975

357



HUBBARD COMMUNICATIONS

      Saint Hill Manor, East Grinstead,

HCO POLICY LETTER OF 14 NOVE

Remimeo Flag Bu All Orgs

Ext HCO FB  Admin Know-How Series 36

Org Series 36

Executive Series 18

Personnel Series 28

MANNING UP AN ORG

The Sequence of Posting Depts and Divs

You need an org bd first and an allocation board.

The sequence in which an org is manned up is roughly:

- Dept I

- Dept 11

- Reg and Body Routers and Intro people in Div 6

- Dept 12 (enough auditors and C/Ses to approach 2 admin to I tech in org)

- Dept 6

- Dept 7

- Dept 3

- SSO and Supers in Qual to train staff

- Dept 5 for CF Address and Letter Reges

- Dept 4 for promo

- Dept 21 (LRH Comm)

- Dept 10

- Dept 20

- FR & execs

- Full Div 6

- Full Div I

- Full Div 4

- Full Div 2

- Full Div 5

- Full Div 7

- Full Div 3

(Note, an AO always mans up the AO dept or div along with the SH one in
each case.)

Wrong sequence of manning is Dept 6, Dept 12, Dept 6, Dept 12, Dept 6, Dept
12, as you wind up with a stuck clinic that won't expand.

Wrong sequence will contract an org while trying to expand it as the org
will go out of balance, bad units, noisy and unproductive.

If manned in a correct sequence its income has a chance to stay abreast of
its new staff additions.

Emphasis on GI without comparable emphasis on delivery and organization can
throw an org into such a spin only a genius can run it.

Manned in proper sequence, and hatted as it goes, an org almost runs
itself.

358



Single-handing from the top comes from longstanding failures to man  or  man
in sequence, from earlier noncompliance with explicit  orders  or  from  not
understanding orgs in the first place.

An unhappy org that doesn't produce has usually been manned  only  partially
and out of sequence.

The trick is planned manning, ignoring the screams of those  who  know  best
or demand personnel; just manning by posting those who  have  been  screamed
for the loudest is a sure way to wind  up  with  no  people  and  total  org
problems instead of a total org that is prosperous and producing.

Incidently, this is a rough approximation of the sequence  of  hats  the  ED
gradually unloads as his org takes over.

L. RON HUBBARD

Founder

LRH:nt.gm

359



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 29 NOVEMBER 1978

Remimeo

                          Admin Know-How Series 37

                             Personnel Series 29

HOW YOU HANDLE DEMANDS FOR PERSONN

(R ef.

HCO PL 22 Sept. 70     HATS

HCO PL 1 Jul. 65 HATS, THE REASON FOR

HCO PL 15 Sept. 59     HATS AND OTHER

      FOLDERS)

HCOs get continual demands for personnel from all areas of an org.  To  keep
an HCO from going mad with all these demands, they must, on  every  request,
(1) have the Dir of I&R do a full utilization survey on the  division,  dept
or section requesting personnel and (2) do a  full  hat  inspection  on  all
personnel in that division, dept or section.

Only if these two steps are done for  each  personnel  request  will  sanity
reign in HCOs on the subject of personnel.

HCO PL 15 Sept. 59 HATS AND OTHER FOLDERS (Vol 0, page 65), HCO  PL  I  Jul.
65 HATS, THE REASON FOR (Vol 0, page 66) and HCO PL 22 Sept. 70  HATS  (Mgmt
Vol, page 21 W must be well known by all staff in Depts I and 3.

Personnel can recruit madly, answering every frantic demand  for  personnel,
and yet HAVE THEM ALL WASTED for lack of full  hats  and  full  training  on
those hats.

The whole org can sag and even vanish under these conditions.

So Personnel has a vested interest in hats being complete and staff  trained
on them. For Personnel people cannot possibly cope with  "no  pay  so  can't
hire anyone" and "no people so can't produce."

So for every demand for personnel, ALWAYS demand a  utilization  survey  AND
an inspection of hats in that area.

L. RON HUBBARD

Founder

LRH:kjm.gm

*[Note: In Management Series Volume 2 see page 308 for the text of HCO PL
22 Sept. 70, HATS.]

360



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 16 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                              of 10 Oct. 1970)

Personnel Series 30

UTILIZATION

Personnel  utilization  is  a  very   important   factor.   Overmanned   and
undermanned areas are the  first  consideration.  The  next  is  hatted  and
producing. An area can be overmanned and  also  not  producing,  the  reason
being lack of org board or lack of hats or both,

Utilization is proven only by production, not by busyness.

Org board and hat and training when done and followed add up to production.

Lack of org board, hats and training or  neglect  of  them  can  add  up  to
frantic busyness with poor production. A government does  this  so  well  it
takes millions of them to add up to liability.

Only if well organized and trained and producing can a  small  group  attain
any control of its area.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:bk.gm , 1980

361



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                   HCO POLICY LETTER OF 21 SEPTEMBER 1980

                                  Issue 11

Remimeo

                          (Originally LRH OODs item

                               of 29 Oct 1970)

                             Personnel Series 31

                                Org Series 44

AN ORG BOARD

REF: HCO PL 28 Oct 70 ORGANIZING AND HATS

An org board is a list of hats with seniorities. The hats are in flow
sequence.

A hat is  a  duty.  It  outlines  the  actions  necessary  to  accomplish  a
production and receive what's needed, change and route it.

In theory the I/C holds all functions. When he doesn't  fully  outline  them
they can't be hatted. If they're not hatted he  wears  them  as  an  unknown
fog. Simple as that.

What defines a hat is a product.

If you count up the expected products you get the minimum  number  of  hats.
The steps to get the product is the  hat.  Products  are  also  composed  of
lesser products, so hats can be enlarged.  It's  what  you  designate  as  a
product that makes a hat. It's the importance of that product to  others  on
the line that makes the hat's importance.

The completeness and size of the product make the seniority of the hat.

The overall product of a division  determines  the  hat  of  the  divisional
officer. The lesser products that when combined  make  the  overall  product
determine the rest of the division hats.

Until you can define in one go the overall product of a division you  aren't
likely to be able to post any real part of its org board.  For  the  product
of hats of that div add up to the div product.

When you see an unposted or unreal org board, the head of  the  div  is  not
producing a product with that div, no matter how busy it all  looks  or  how
exhausting.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

362



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 24 SEPTEMBER 1980

Remimeo     Issue 11

                        (Taken from an LRH OODs item

                               of 31 Aug. 71)

Exec Series 32

Personnel Series 32

OVERLOAD AND HATTING

I have found that whenever I have had to handle something, I found the
person who should have handled it unhatted and with misunderstood words on
things intimately connected with his duties.

Thus I have found this cycle of great use and thoroughly recommend it.

I . Emergency item or omission requiring handling turns up.

2.    Handle it right now fast (my handling something time lapse is about 5
minutes to half an hour). (That means terminatedly.)

3.    Spot who should have handled it.

4.    Interrogate the person on basics of his post (not ask about "hat
folders," etc.).

In all cases so far I have found the person not doing his post duties,
unhatted, with huge misunderstoods on words like "post," "hat," "muster,"
etc.

5.    Hat the guy.

So I can tell you that any overload you have is from unhattedness of the
most basic kind.

An org is as efficient and looks as good as its people are individually
hatted and do their jobs.

It's a very good system. I recommend it.

A sort of a do-it-yourself HCO!

It works.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BDCS:LRH:SA:dr.gm      BOARDS OF DIRECTORS

Copyright@ 1971, 1980

      of the

      CHURCHES OF SCIENTOLOGY

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Exec Series 24.]

363



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 28 SEPTEMBER 1980

Remimeo

                          (Originally LRH OODs item

                            of 12 February 1971)

Personnel Series 33

HAT KNOCK OFF

               Also issued as Flag Order 2740 with same title.

             Ref: HCO PL 13 Jan. AD29, ORDERS, ILLEGAL AND CROSS

                             Corr & Reiss 2.5.79

Your functions will be found in PLs and HCOBs.

If anyone tells you your job  is  different  than  stated  in  such  issues,
please realize that there are  no  orders  senior  to  such  issues  and  an
"illegal order" is defined as one contrary to existing issues. Accepting  an
illegal order is actionable.

What one gets comm-eved for is in the PLs and HCOBs.

You can't be comm-eved for failing to follow an illegal order. You sure  can
be for departing from policy issues.

Orders don't equal orders equal orders. That's the road  to  disaster.  Some
orders are senior to others. A dock  worker  telling  you  to  put  on  your
jacket is not the same as your division head telling you to do so.

Similarly a "senior" giving you orders contrary  to  your  hat  is  knocking
your hat off. He may have no idea what your hat is. If you  follow  such  an
illegal order and fail to follow the policy in your hat,  you  could  be  in
for it.

Orders are not orders are orders are orders.

You have policy to keep things straight. If policy  doesn't  cover,  request
clarification. If you are doing something other than  your  hat,  sooner  or
later it will catch up to you.

Seniors should have a list of the hats and their duties of everyone  in  the
org and know them.

Unless such a list exists and  you  are  foolish  enough  to  accept  a  hat
misinterpretation, not only you but all of us are at risk.

You are counted upon to wear your hat as laid down by PLs and HCOBs.

Don't let the group down.

      L. RON HUBBARD

      Founder

      Compiled and edited for issue by

      Sherry Anderson

      Compilations Missionaire

      Accepted and approved by the

BDCS:LRH:SA:dr.gm      BOARDS OF DIRECTORS

, 1980

      of the

      CHURCHES OF SCIENTOLOGY

364



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 6 OCTOBER 1980

Remimeo     Issue 11

Hats Officer

HAS   (Originally LRH OODs item

      of 6 June 1971)

Org Series 51

Personnel Series 34

A MAJOR DUTY OF THE HATS OFFICER

REF: HCO PL 7 JANUARY 1966 LEAVING POST

If you leave a post without turning over  your  hat  and  grooving  in  your
relief, you are at risk. You can be called back for the next  two  years  if
that post goes wrong.

You must HAVE a hat in a folder and its write-ups  (all  of  them)  and  you
must turn it over.

The Hats Officer is supposed to see this is done. It  is  really  his  major
duty. He must see that it is done and he must be able  to  attest  that  the
relief on the post HAS and CAN DO and IS DOING the hat.

Hats, checksheets and packs are also furnished by the Hatting Section  under
Hats Compilations. These are issued as prepared. However there is  ALWAYS  a
hat.

Anyone on post without a hat cannot be expected to be paid.

If a Hats Officer only compiles hats he unmocks the org.

The Hats Officer must be there in a flash at every post change and see  that
the hat and duties of the post are turned over and the  relief  grooved  in.
Records, Assets and Materiel Dept 9 sees that the materials are turned  over
and are correctly inventoried or the Dir of RAM or the Treas Sec can be  hit
for any lost items.

This is an old, old drill.

There are standard ways to do things.

Any post not so turned over MUST be  turned  over  correctly  with  hat  and
materiel or the org will shatter.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:ns.gm , 1980

365



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                     HCO POLICY LETTER OF 6 OCTOBER 1980

                                  Issue III

Remimeo

                          (Originally LRH OODs item

                              of 24 June 1972)

Personnel Series 35

Esto Series 47

POSTING

I am finding that persons not grooved in on new posts before being asked to
act have a high confusion level which is hard on the area. Estos should
groove people in hard on the duties and existing scene and if the person is
too confused or out-ethics, alert HCO and not place them.

A person needs a day or two to find his feet on the new ground before
acting or he'll be nervous and uncertain.

We want certain and competent people on post.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

366



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 OCTOBER 1980

Remimeo

                          (Originally LRH OODs item

                             of 20 August 197 1)

Personnel Series 36

MUSICAL CHAIRS

HCO PL 29 Jul. 71, Issue 1, WHY HATTING? is truer than I knew.

Musical chairs in life is the mechanism below ARC breaks in Grade III! To
unstabilize gives ARC breaks!

Whole staff can be put into a sad effect!

This is the mechanism governments use.

It's the basic tool of the socialist. If he can just unstabilize everyone,
he can kill them with degrade.

It's a basic tool of the insane to maintain their own stability by
unstabilizing everyone else.

There's more to it, but it's a major discovery that affects even the ARC
break rud and affects the no case gain case.

So that's where I've been working lately in research and wow is it paying
off!!!

It began when I assumed that the musical chairs we get in orgs was a social
aberration, not an admin error. From there it's been discovery all the way.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm , 1980

367



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 30 OCTOBER 1980

                                  Issue III

Remirneo

                          (Originally LRH OODs item

                            of 13 December 1969)

Personnel Series 37

POST TRANSFERS

Don't, please, don't start musical chairs again.

People aren't checkers. Their jobs are valuable to them.

The correct way to get a Dianetic auditor  in  Qual  is  to  demand  one  be
selected off a noncritical post and trained.

Also, the next lot of recruits will give  us  new  people.  Thus,  somewhere
there in a noncritical post one can find a Chaplain, get  him  to  part-time
study the Chaplain's post. When recruits arrive, he can turn over  his  post
to a recruit and groove it in, then relieve the Chaplain  and  the  Chaplain
goes to Dianetic auditor. It takes time. It takes skill to  shift  personnel
without caving the org in by removing stable terminals.  These  wild  shifts
deluge us with dev-t, invalidate post importances and  make,  actually,  one
unstable dangerous environment.

No more musical chairs, please. It's absolute hell on everyone.

In actual fact musical chairs comes about through recruitment  failures  and
improper org design.

There should be HCO Expeditors to take up the slack. From lack of them,  all
else goes to blazes. When you have no excess personnel, any transfer  starts
musical chairs.

We also ask people if they want a post.

Get some HCO Expeditors through better recruitment and all is solved.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Approved and accepted by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:dr.gm Copyright@ 1969, 1980

368



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I I OCTOBER 1980

Remimeo

                        (Taken from an LRH OODs item

                              of 28 March 1971)

Personnel Series 38

PERSONNEL TROUBLES

Ref.. HCO PL 29 Aug. 701    PERSONNEL TRANSFERS CAN

      DESTROY AN ORG

All personnel troubles are coming from the practice of paragraph No. 1,
Personnel Series No. I (HCO PL 29 August 1970).

Working installations are being used as personnel pools.

So long as Dept I fails to solve this, it will have personnel troubles and
form-ofthe-org troubles, and hatting troubles.

That is why paragraph No. I of Personnel Series No. I is paragraph 1.
Unsolved, all other personnel actions become a miserable mess.

Also the training of future personnel is not being predicted. There are no
apprentice appointments for any post in any org. Thus experience is never
passed on.

We have a year backlog of personnel problems and deficiencies, plus
expansion, plus export requirements.

Unless this backlog is caught up and apprentices get posted, paragraph No.
I of Personnel Series No. I will continue to prevent any smooth personnel
handling.

L. RON HUBBARD

Founder

Compiled and issued by

Sherry Anderson

Compilations Missionaire

Accepted and approved by the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SA:ns.gm Copyright@ 1971, 1980

369



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

                    HCO POLICY LETTER OF 3 NOVEMBER 1980

                                  Issue III

Remimeo

                          (Originally LRH OODs item

                                of 31 Oct 71)

                                Org Series 60

                             Personnel Series 39

FULL HATTING

A person is responsible for his own hatting. Dept I is also responsible.

As lack of full hatting is the WHY of declining organization it is very
important that persons be fully hatted.

The gradient is instant hatting, mini hatting and full hatting.

A person found on a post who is not fully hatted is liable to ethics
action.

Awareness of the scene does not seem to exist in the absence of hatting.
Thus unhatted persons look sort of blind.

For instance, an unhatted Dissem Div is completely unaware of no money, no
students, no pcs.

It's sort of strange. Mystery about the post seems to result in no
perception of its environment. Mystery on post equals mystery of
environment. You see this as a sort of frightened no confidence.

I think hatting even changes eyesight. We ought to test it out.

We already know that unhatted people get hurt more than hatted people. We
know overts stem from misunderstoods. And we know running overts changes
eyesight.

It then probably follows that unhatted people couldn't see a tiger if it
was biting them!

So, how to be mystified by it all and afraid-remain unhatted.

Get hatted and see.

L. RON HUBBARD

Founder

Compiled and issued by Sherry Anderson Compilations Missionaire for the

BDCSC:LRH:SA:dr.gm     BOARD OF DIRECTORS

, 1980      of the

      CHURCH OF SCIENTOLOGY

      OF CALIFORNIA

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Personnel Series 38.]

370



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 MARCH 1982

Remimeo     REISSUED 14 APRIL 1982

      (Only change is to make this issue

      a part of the Personnel Series.)

Personnel Series 40

PERSONNEL POLICY

We are building strongly for the future.

Scientology is going to go on for a VERY long time.

The way to build a strong future is to build a strong organization.

Internally, the only way we  have  been  held  back  is  by  out-ethics  and
nonproduction. This does  not  build  a  strong  organization  or  a  strong
future.

Therefore, we have no room on staffs for those who do not produce-or  worse,
are  extravagant  and  produce  overt  products-or  (which  goes  with  poor
production) are out-ethics.

We need productive people who keep their ethics in.

Individuals, and above all execs, are the building blocks of organizations.

To build strongly for the future,  keep  the  above  points  in  mind  where
appointing, promoting or handling personnel.

Personnel of that caliber belong outside orgs-they are the  pcs  and  cases.
Do not recruit them, appoint them or leave them on post when found.

One can mend people. But one cannot build a new world with broken straws.

It takes the ethical few to handle the many. And these  are  what  our  orgs
must be built with now. The strong within only  then  can  handle  the  weak
outside.

Make it easy in the future for all of us. We have a  long  way  to  go.  The
speed we get there is measured by the ethical quality  of  persons  on  exec
posts and on staffs. It is fine to be big brother to all the  world-so  long
as we keep our staffs the top people. Be them.

L. RON HUBBARD

Founder

Adopted as official

CSI:LRH:bk.gm    Church policy by the



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

Personnel Series 41

[Note: Personnel Series 41 was issued 14 Sept. 1982  as  Scientology  Policy
Directive 36, Personnel Series 4 1, POST CHANGES AND  PRODUCTION.  Since  it
was not written , it is not included in this volume.]

371



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 DECEMBER 1982

All Orgs

All Execs

All Staff

All Div Heads

LRH Comms

HCO

Dept I Hats

Dept 3 Hats

Personnel Series 42

Org Series 63

"DOING A QUICKSILVER" FORBIDDEN

References:

HCO PL 19 Mar. 71      Personnel Series 20

            PERSONNEL PREDICTION

HCO PL 24 June 70R 11  PERSONNEL POOLS

      Rev. 30.4.75

HCO PL 7 Jan. 66 URGENT-LEAVING POST

            WRITING YOUR HAT

HCO PL 20 Apr. 69 11   HATS, NOT WEARING

HCO PL 20 Oct. 80      Personnel Series 36

            MUSICAL CHAIRS

HCO PL I I Aug. 71 11  Personnel Series 22

            DON'T UNMOCK A WORKING

            INSTALLATION

HCO PL 7 Mar. 65 111   OFFENSES AND PENALTIES

HCO PL 13 July 74      Org Series 34

            WORKING INSTALLATIONS

There is a condition that can exist in  orgs  which  differs  slightly  from
"musical chairs" (the rapid transfer of personnel from post to post) but  is
akin to that and every bit as deadly.

We could call it a "quicksilver personnel" scene. ("Quicksilver" is  another
name for  mercury,  the  silvery-white  metallic  element,  liquid  at  room
temperature,  which  is  used  in  thermometers,  barometers   and   similar
instruments.)

Used figuratively, the term "quicksilver" means  something  that  is  quick-
moving, unpredictable and as elusive as mercury, or  "mercurial."  Something
that is mercurial is changeable, variable, volatile.

To anyone who has ever observed a drop of quicksilver,  or  mercury,  in  an
open container or placed on a slab of glass, this will be real.  One  second
it's here, the next second it's there. Just about all  you  have  to  do  is
breathe on it and it changes its position. And where it  was  a  second  ago
there's now nothing.

It is miserable (if not impossible) for  an  executive  or  management  body
trying to run things with staff doing a quicksilver. One can hit up  against
some nasty surprises.

For example, an org's personnel scene may look  great  on  the  board,  with
posts filled, hats existing and known, production occurring and on the rise-
all is looking good when suddenly the stats crash.

372



An initial check may show there haven't honestly been  any  post  transfers,
per se. But dig a bit further  and  you're  likely  to  find  a  quicksilver
personnel scene. The top delivery auditor is off  on  a  two-week  vacation.
The Qual Sec has been fired on a recruitment tour. The  Reg  has  gone  out-
ethics and been suspended, unreplaced, pending  some  ethics  handling.  The
Chief Officer is off on maternity leave and the CO, holding  her  post  from
above, is being the guest speaker at an event in the next city.

It happens and it happens not only in  Class  IV  Orgs  but  in  the  higher
service orgs and management units where tours  are  essential  and  missions
need to be fired and other situations can crop up requiring personnel.

It has shown up drastically at times in several  large  orgs.  In  one,  the
head of a vital network went off on mission and, with no one left being  the
senior, the stats in the area crashed. In another, the  sales  manager  took
his leave, his routine functions were ignored and sales  suffered  severely.
And in still another org, no less than six key delivery terminals  were  all
found to be out on regging tours in one week, some of them over a period  of
several weeks,  at  a  time  when  delivery  of  paid-in-full  services  was
backlogged!

None of these terminals had been removed or  transferred  or  promoted.  And
one could say the actions being done are all covered in some way in  policy,
are needed, and therefore justified. But these terminals were all  off  post
unreplaced, weren't they?

That's a quicksilver personnel scene. It's unstable.

CONTRIBUTING FACTORS

Executives  who  issue  orders  that  unmock  working  installations   where
production is occurring at "A" to get something  done  at  "X"  bring  about
such scenes.

Personnel who, like quicksilver, accommodatingly  move  off  their  assigned
posts unreplaced to do something else at  the  first  invitation  or  order,
help to generate and sustain such scenes.

Seniors who permit or condone this are also a party to them.

Personnel can do a quicksilver for any of a number  of  reasons.  For  some,
the chance to go off and see other people and new places may be an  alluring
prospect. Some are too timid to refuse  a  destructive  order  and  so  they
comply, under protest. For others there  is  financial  gain  involved-there
are often commissions or a bonus at stake.

Tours have been used by some, apparently condoned  by  executives,  to  take
longer leaves (more time off on leave per year) by combining 4 to 6 or  even
8 weeks of a "regging tour" with a "leave," with the  org  paying  both  the
person's fare and living expenses and no clear distinction made between  the
period of "tour" and the period of the "leave." (While this is  part  of  an
unstable personnel scene it is also a situation requiring a separate  ethics
handling in itself.)

Sometimes a staff member is made to feel, by a very  convincing  exec,  that
the action  which  calls  for  his  suddenly  going  off  post  with  no  or
inadequate replacement is actually more important than his job.  Where  this
threatens production and there is no adequate  replacement  this  is  almost
always a falsehood,

It is true that missions need to be fired. Tours are  vital  to  income  and
delivery. Staff sometimes do need to go off post  temporarily  for  handling
of one  type  or  another.  Events  are  valuable  in  terms  of  promotion,
goodwill, PR and sign-ups; and for certain types of these, key personnel  or
trained tech delivery personnel  may  be  required.  Emergencies  do  arise.
Personnel  are  entitled  to  annual  leave.  And  speed  of  operations  is
important.

373



On the plus side, we do have capable and versatile staff who are willing  to
extend themselves, when needed, to make things go right. We have  demanding,
fire-breathing executives who are out to handle situations and open  up  new
fields for delivery which, in itself, is a good thing. And many of these  go
about it standardly.

But the senior or exec at any  level  who  endangers  ongoing  delivery  and
production and/or unstabilizes a producing  personnel  scene  to  get  these
things done is simply advertising to one and all that he can't  predict  and
plan and organize or get others to do so. Control is lacking  here  as  well
as just plain common sense. The kindest thing one could say  about  such  an
exec is that he is short-sighted. And "quicksilver" is a  rather  mild  term
for the staff member who steps so easily off his post and leaves a  hole  in
the lineup with no thought of the consequences.

One could say that everyone has personnel problems. BUT that is no WHY.

HANDLING "QUICKSILVER PERSONNE12' SCENES

The first policies missing in application are  those  covering  replacements
and hat turnovers.

BECAUSE IT IS A "TEMPORARY" ABSENCE, NO ONE  IS  DEMANDING  REPLACEMENT  AND
TURNING THE HAT OVER TO SOMEONE WHO CAN COVER THE POST COMPETENTLY.

But policies exist in abundance on this  subject.  HCO  PL  29  Aug.  70  1,
Personnel Series 1, PERSONNEL TRANSFERS CAN DESTROY AN ORG,  points  up  the
outnesses which can destroy an org faster than any others.  HCO  PL  7  Jan.
66,  LEAVING  POST,  WRITING   YOUR   HAT,   covers   the   staff   member's
responsibility for a post he is vacating under any circumstances. HCO PL  20
April  69  11,  HATS,   NOT   WEARING,   emphasizes   the   staff   member's
responsibility for knowing that he is the Qual Sec,  or  Reg,  or  the  post
title for the post and functions he has accepted. HCO PL I  I  Aug.  71  11,
Personnel Series 22, DON'T UNMOCK A WORKING  INSTALLATION,  cites  the  main
reason we have ever had slumps in orgs.

The personnel policies are there.  But  very  often,  where  a  "quicksilver
personnel" scene is permitted, BECAUSE SOMEONE PULLS OFF A  SUCCESS  IN  ONE
AREA, EVEN THOUGH STATS IN HIS OWN  AREA  MAY  CRASH,  THE  EXISTING  ETHICS
POLICIES THAT COVER SUCH  A  CRASH  OR  THE  COLLAPSE  OF  AN  AREA  MAY  BE
OVERLOOKED OR DELIBERATELY IGNORED.

So how do we handle "quicksilver personnel" scenes?

The answer is to add some teeth to the existing policies:

1.    AN ABSENCE FROM POST FOR EVEN A TEMPORARY PERIOD OF AS LITTLE AS  HALF
A WEEK IS AN ETHICS  OFFENSE,  UNLESS  SOMEONE  IS  NAMED  AND  THERE  AS  A
REPLACEMENT WHO HAS HAD THE POST PROPERLY TURNED OVER TO  HIM  AND  WHO  CAN
COVER THE POST COMPETENTLY.

2.    IF SUCH ABSENCE  WITHOUT  COMPETENT  REPLACEMENT  OCCURS  AT  ALL,  AN
IMMEDIATE COURT OF ETHICS MUST BE CALLED ON THE STAFF MEMBER WHO LEAVES  HIS
POST UNFILLED  OR  INADEQUATELY  COVERED,  AS  WELL  AS  ON  THE  SENIOR  OR
EXECUTIVE ORDERING, CONDONING OR PERMITTING IT.

3.    IF IT OCCURS AND RESULTS IN STATS CRASHING IN A  COURSE,  A  DIVISION,
DEPARTMENT, SECTION, UNIT, AREA, ZONE OR ORG, A COMMITTEE OF  EVIDENCE  MUST
BE CALLED WITH ALL INVOLVED NAMED AS INTERESTED PARTIES.

374



The charges are

CONDONING OR CONTRIBUTING TO CIRCUMSTANCES OR OFFENSES CAPABLE OF BRINGING
A COURSE, SECTION, UNIT, DEPARTMENT, ORG, ZONE OR DIVISION TO A STATE OF
COLLAPSE.

and

NEGLECT OF RESPONSIBILITIES RESULTING IN A CATASTROPHE EVEN WHEN ANOTHER
MANAGES TO AVERT THE FINAL CONSEQUENCES.

With this policy made known and enforced, there is a cure for those who do
a "quicksilver" and for executives and seniors whose out-planning and out-
prediction bring about quicksilver personnel scenes.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:pm.iw.gm

375



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 13 AUGUST 1970

Remimeo     Issue I

Div 6 Hats

Div 7 & 8 Hats

Div 2 Hats

Ltr Reg Checksheet

PES Hats

I/A Hat

PR Crs Checksheet

      PR Series I

LIABILITIES OF PR

PR = public relations, a technique of communication of ideas.

A casual investigation of the activities and effects of  "PR"  as  practiced
in the first 70 years of the 20th century gives one  ample  data  to  regard
"PR" with caution.

The subject is one which can be said  to  be  dangerous  in  its  incomplete
stage of development or in the hands of inexpert or unscrupulous people.

Thus we have three major liabilities in PR usage:

1.    It is an incomplete technology as developed and used up to 1970.

a.    The human mind was not a known field.

b.     Any  early  technology  of  the  human  mind  was  perverted  by  the
University of Leipzig studies and animal fixations of a Prof. Wundt in  1879
who declared  Man  a  soulless  animal  subject  only  to  stimulus-response
mechanisms and without determinism.

C.    Further perversions entered upon the scene in the 1894 libido theory
of Sigmund Freud attributing all reactions and behavior to the sex urge.

PR is essentially a matter of reaching minds.  Therefore,  the  above  three
factors have given PR strange elements and bedfellows which  have  curtailed
its development as a subject.

Naturally you'd have to know something of the mind to handle PR.  Yet  if  a
PR man is operating not only without  knowledge  of  the  mind  but  with  a
corrupt idea of it (as in Wundt or Freud),  his  use  of  PR  technique  can
spread a fantastic amount of aberration into the society and can  result  in
an aberrated society. PR men operating in the "mass  media"  (press,  radio,
television, magazines and  in  lobbying  parliaments)  push  strange  mental
ideas.

2.    Inexpert PR men can make a gruesome mess out of the subject and the
society.

a.     Working  with  an  incompletely  developed  subject,  yet  using  the
powerful communication systems of the society, it is not  only  not  unusual
for the work of a PR to recoil on his own employers but is  usual  to  bring
them into decay.

3.    PR lends itself to the use of unscrupulous persons and cliques.

a.    The extremists such as the Nazis and Stalinists saw in PR techniques
the means of subjugating their own people, perpetrating horrors and

376



bringing their opponents into disrepute. Such extremist groups were
enormously assisted by PR techniques.

b.    Using PR technique to bring about disrepute of their imagined
enemies, unscrupulous persons have brought about an atmosphere of war,
crime and insanity on the planet.

These are of course harsh words. But it is better to know all sides of a
subject.

PR practitioners of course spread PR about PR. But the use of black  PR  far
exceeds its other uses in this year of 1970.  Yet  teachers  of  PR  in  the
smoky cloister (smoke  from  marijuana)  give  us  only  the  Sunday  school
version. According to them, PR is a nicey-nicey way of bringing  good  works
to public notice and that is their favorite definition. In actual  fact  ten
times as much PR work is  done  in  getting  rid  of  someone  or  something
imagined to be dangerous to the PR's employer.

Bribing newspapermen and "free-lance writers" to write horrible  lies  about
a competitor, bribing or lying to congressmen or  ministers  or  members  of
Parliament to get a law passed  to  enable  a  fast  buck  to  be  made  and
countering the ploys of the other firm's PR men are the common duties  of  a
working public relations employee.

This scene doesn't seem to be quite the same as PR  as  represented  in  the
ivory skulls of its professors.

It's a PR world.

When you read the papers, books and watch the TV of the 20th  century,  it's
not a very nice world. Well, that's PR at work.

The far right PRs against the  far  left.  And  in  between,  more  moderate
groups PR both.

Every government department in England has a PR  office.  The  beginning  of
the  decline  of  the  British  Empire  and  the  first  British  government
"information office" are of similar date.

The unsavory history of PR, its use  to  perpetuate  questionable  interests
and cause needless and murderous quarrels must be confronted as part of  the
study of PR.

It is not for no reason  that  PR  men  are  often  of  pitiful  morals  and
degenerate character.

The countless trillions of volts of radio and TV, the  rivers  of  newsprint
and pages tearing through presses, pour fantastic lies into the  overwhelmed
population of Earth.

The prevailing tone of dismay and contempt across the  world  is  stimulated
and kept alive by PRs.

So disabuse yourself of any idea of a pleasant scene in the field of PR.

Even if you are engaged in the promotion  of  the  most  worthwhile  objects
pushed by the most altruistic leader, PR work is done  cheek  by  jowl  with
some pretty questionable characters whose objects are  far  from  worthwhile
and whose masters are about as altruistic as a rattlesnake.

Thus PR easily becomes a cynical activity. The PR  deeds  of  the  bad  hats
throw the Field into disrepute and throw the whole world  into  a  whirlpool
of hate and decay.

So in entering or studying this field, do not walk into it like a wide-eyed
virgin

377



making an incautious visit to a military brothel.

There is no reason to be disillusioned if one does not start out with
illusions.

PR is  a  partially-developed  technique  of  creating  states  of  mind  in
different types of audiences or publics.

PR can be used or abused.

Thus before proceeding any further with the subject,  it  was  necessary  to
restudy the subject and find out what was wrong  with  it,  add  it  to  the
subject and thus make it less dangerous to use.

The liabilities of PR, as taught and used before 1970 were

A.    It inevitably recoiled in greater or lesser degree to the harm of its
user.

B.    It had long repute as a carelessly or badly used subject, full of
failures.

C.    It is normally used into the teeth of competitive PR.

Unless  these  objections  could  be  nullified  or  new   discoveries   and
developments could be accomplished, the basic techniques of  PR  were  about
as safe as a cocked Spanish pistol-ready to blow up its user long before  it
hit anyone else.

This is what has been done with PR in our hands:

1.    Its more dangerous points have been located.

2.    A full study of its texts is required.

3.    It is designed now for use that is beneficial as well as offensive
and defensive.

Thus the standard texts of PR have to be studied and studied well. And  they
must be studied WITH  THE  ADDITIONAL  DEVELOPMENTS  KNOWN  AND  GIVEN  HIGH
IMPORTANCE.

Only then is it safe to use  PR  techniques.  Otherwise  PR  activities  are
almost a complete liability and will lead to trouble.

In this series we will bring PR up-to-date from the liabilities which  exist
in its purely PR college textbook practice.

L. RON HUBBARD

Founder

LRH:sb.nt.gm , 1973

378



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 13 AUGUST 1970

Remimeo     Issue 11

Div 6 Hats

Div 7 & 8 Hats

Div 2 Hats

Ltr Reg Checksheet

PES Hats

I/A Hat

PR Crs Checksheet

PR Series 2

THE MISSING INGREDIENT

The primary corrective discovery about PR has to do with  the  ARC  triangle
of Scientology.

This triangle is Affinity-Reality-Communication. If one corner  (say  A)  is
raised, the other two will rise. If one corner is  lowered,  the  other  two
are as well.

Thus  with  high  affinity,  one  also  has  a  high  reality  and  a   high
communication. With a low affinity one has also a  low  reality  and  a  low
communication.

With a high or low R one has a high or low A and C.

And so it goes. The whole triangle  rises  and  lowers  as  one  piece.  One
cannot have a low R and a high A and C.

PR is supposed to be  a  communication  technique.  It  communicates  ideas.
Suppose one were to try to communicate an out-the-bottom R. In such  a  case
the communication would possibly at first reach, but then  it  would  recoil
due to its R.

This is of course an advance in the mental  technology  of  Scientology.  It
was not available to early pioneers of PR. So they talked (and  still  talk)
mainly lies.

Older PR practitioners preferred lies.  They  used  circus  exaggeration  or
black propaganda. They sought to startle or intrigue and the easiest way  to
do it was with exclamation point "facts" which were in fact lies.

"Mental health" PRs dreamed up out of whole cloth the  "statistics"  of  the
insane. "Nine out of every 15 Englishmen will go insane at  some  period  of
their lives" is a complete lie. Streams of such false statistics  gush  from
PR lobbyists to get a quick pound from Parliament.

The stock in trade of PRs, whether hired  by  Stalin,  Hitler,  the  1  Will
Arise Society, the US President or the International Bank, has  been  black,
bald-faced lies.

The US President  has  given  2  different  figures  of  the  percentage  of
increased government cost per year in 2 months. His PR  man  was  trying  to
influence Congress.

The "Backfire 8" as the "Car of the Century" and  the  parachute  exhibition
"record delayed drop" and the ambassador's press conference on "Middle  East
Aims" are all PR functions-and salted throughout with lies.

You pick up a newpaper or listen in the street and you see PR-PR-PR-all
lies.

A battle cruiser makes a "goodwill visit" to a town it  is  only  equipt  to
crush and you have more lies.

379



The tremendous power of newpapers, magazines, radio,  TV  and  modern  "mass
media" communication is guided by the PRs  of  special  interests  and  they
guide with lies.

Thus PR is corrupted to "a technique of lying convincingly."

It makes a cynical world. It has smashed idealism, patriotism and morality.

Why?

When an enforced communication channel carries only lies, then the  affinity
caves in and you get hate. For the R is corrupted.

PR, dedicated to a false reality of lies, then becomes  low  A,  low  C  and
recoils on the user.

So the first lesson we can learn that enables us to  use  PR  safely  is  to
KEEP A HIGH R.

The more lies you use in PR the more likely it is that the PR will recoil.

Thus the law

NEVER USE LIES IN PR.

The trouble with PR then was its lack of reality. A lie of course is a
false reality

The trouble with PR was R!

In getting out a press release on a new can opener that opens  cans  easily,
and you want to say "A child could use it," find out if it's  a  fact.  Give
one to a child and have him open a can. So it's true. So use  the  line  and
say what child. Don't call it the "Can Opener  of  the  Century."  It  won't
communicate.

Just because radios, TVs and press pour out does not mean they  communicate.
Communication implies that somebody is reached.

Don't tell a lie to city officials when the truth is just as easy  to  tell.
Why go to all the work of dreaming up a lie? If you do, it will  weaken  you
if it is found out that it is a lie. Now you do have a PR problem  with  the
"official public."

Any lie will either blunt the C (communication) or end the  C  off  one  day
with revulsion.

Handling truth is a touchy business also. You don't have to tell  everything
you know-that would jam the comm line too. Tell an acceptable truth.

Agreement with one's message is what PR is  seeking  to  achieve.  Thus  the
message must compare to the personal experience of the audience.

So PR becomes the technique of communicating an acceptable  truth-and  which
will attain the desirable result.

If there's no chance of obtaining a desirable result  and  the  truth  would
injure, then talk about something else.

PR is employed to obtain a result desired by the PR and his group.

Or it is employed to cancel out the undesirable PR of others.

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Thus there is offensive and defensive PR.

In defending against hostile PR, once more it is the R that counts. Sun  Tzu
in his book about warfare gives several types of agent. One of these is  the
"dead agent" because he tells lies to the enemy and when they find out  they
will kill him.

Hostile (or counter-PR) is usually the usual fabric of lies.

If one finds out the lies being told and documents just one as being  false,
he has made counter-PR recoil. His hearer  will  never  believe  him  again.
He's dead.

In the war between psychiatric hostile PR and the truth of Scientology,  the
"dead agent" caper has a field day. Psychiatric PR has  been  lying  for  20
years.  Documented,  the  fact  of  these  lies  are  lies  is  killing  off
psychiatry.

You understand, it's not one PR's word  against  another's.  It's  one  PR's
documents against the other PR's lies! That is correct defensive PR.

So you see that using out-R PR can be very dangerous.

If one is trying to  PR  an  abuse  into  decay  (a  dangerous  activity  in
itself), he obtains the desirable result by  documenting  TRUTH.  But  using
the "dead agent" caper is quite enough almost always.

The use of R not only involves truth, it involves acceptable truth and  that
involves the fixed opinions of another or others and their  experience.  All
this is contained in the subject of REALITY.

What is the R of another or others?

This involves SURVEYS.

Then you know what truth he or they will accept.

Imagination in PR is not limited at all. It takes lots of  imagination.  But
the imagination should be devoted to how the truth  is  made  acceptable  to
the R of others and how the comm is delivered.

A totally imaginary statement or story is quite useful  so  long  as  it  is
known to be imaginary and not passed off as truth.

In a PR world truth is the almost unknown commodity. This world is  full  of
the "noise" of many lies, many babbles, many old fixations and hates.

But truth has comm value. All the lies will dead-end someday.

A (affinity) supports the R and C.

Therefore PR which seeks to incite hate will not  have  the  C  value  of  a
message that carries actual affinity.

But affinity can also be falsified and in the PR world too often is.

A person who is sane has a high ARC value.

So the PR who is sane has a high potential. And those who have corrupted
their

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A, R and C into a hole, wind up on the bottle or beating their dogs or
cynical beyond belief.

Serving mad masters, a PR hasn't much chance.

So there is a technique known as public relations. And it has the high
liability of abuse through lies and the degrade of its practitioner.

But if one strictly attends to the values of truth and affinity, he will be
able to communicate and can stand up to the strain.

Knowing this, PR becomes a far more useful and mature subject.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

382



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 13 AUGUST 1970

Remimeo     Issue III

Div 6 Hats

Div 7 & 8 Hats

Div 2 Hats

Ltr Reg Checksheet

PES Hats

I/A Hat

PR Crs Checksheet      PR Series 3

WRONG PUBLICS

What is a "public"?

One hears "the public," a star says "my public." You look in the  dictionary
and you find "public" means an organized or general body of people.

There is a specialized definition of the word "PUBLIC" which is not  in  the
dictionary but which is used in the field of public relations.  "PUBLIC"  is
a professional term to PR people. It doesn't mean the mob or the masses.  It
means "a TYPE OF AUDIENCE."

The broad population  to  PR  professionals  is  divided  up  into  separate
publics.  Possibly  the  early  birds  in  PR  should  have  begun  to   use
"audiences" back in 1911. But they didn't. They used the word  "publics"  to
mean different types of audiences for their communications.

So you won't find this in the dictionaries as a PR  professional  term.  But
you sure better wrap  your  wits  and  tongue  around  this  term  for  USE.
Otherwise you'll make more PR errors than can easily be computed.

WRONG PUBLIC sums up about 99% of the errors in PR activities  and  adds  up
to the majority reason for PR failures.

So what's a "public"?

In PRese (PR slang) use "public" along with another word  always.  There  is
no single word form for "public" in PR. A PR never says THE public.

There is the "community public," meaning people in the town  not  personally
grouped into any other special  public.  There  is  the  "employee  public,"
meaning the people who work for the firm. There's the "shareholder  public,"
meaning the birds who own shares in the PR's company. There's  the  "teenage
public," meaning  the  undertwenty  people.  There's  the  "doctor  public,"
meaning the MD audience the PR is trying to reach.

There are hundreds of different types of publics.

An interest in common or a professional or caste characteristic  in  common-
some similarity amongst a special group-determines the  type  of  public  or
audience,

The PR needs this grouping as he can expect each different  type  of  public
to have different  interests.  Therefore  his  promotion  to  them  must  be
designed specially for each type of public.

In the PR world there aren't kids-there is a "child  public."  There  aren't
teenagers-there's a "teenage public." There  aren't  elderly  people-there's
an "elderly public."

383



The PR man thinks not in huge masses. He thinks in group  types  within  the
masses.

PR is an activity concerned with presentation and  audience.  Even  when  he
writes a news release, he "slants" it for a publication that reaches a  type
of audience and he writes  it  for  that  audience  (modified  by  editorial
idiosyncrasies).

A PR surveys in terms of special publics. Then he presents his  material  so
as to influence that particular public.

He doesn't offer stories about wheelchairs to the teenage public  or  Mickey
Mouse prizes to the elderly public. If he is a good PR man.

All releases should be designed to reach a special public.

When you mix it up, you fail.

When you get it straight and survey it, you succeed.

The "police public" is not going to buy the glories of hash.  The  "criminal
public" isn't going to go into raptures over the "heroes in blue."

All expert PR is aimed at a specific, carefully surveyed, special audience
called a

66    public."

When you know that, you can grasp the subject of PR.

When you can use it expertly, you are a pro PR!

To give some examples of wrong publics, Ron's Journal was designed  for  org
staffs as an intimate chat with staff members  to  let  them  in  on  what's
going on and what we're planning so that staffs could be informative to  the
Scientology public. It was a "staff public" medium of communication.

Somebody (in NY) broke the rules, played it to the Scientology public.  Then
somebody else figured it  was  a  substitute  for  a  congress  and  dropped
congresses.

The exact end result was to cut totally my comm  line  to  org  staffs.  The
other day I heard how staffs missed hearing from me.

If my line to staffs in orgs is going to be played to PE  attendees,  that's
it. Wrong public. No comm line to staffs.

I do a briefing of SO members on Flag,  some  dimwit  uses  it  to  play  to
Public Div public. Wrong public. So that line is cut.

Clear News publishes Treason orders on students  to  promote  an  AO!  Wrong
public.

Clear News is used for an FSM newsletter. Wrong public.

Clearing Course fliers go to new book buyers. Wrong public.

Letter Registrars write to people on a mailing list sent in by a mail  order
house, Wrong public.

A conclusion someone not knowledgeable in PR technique could reach would  be
"promotion doesn't work."

Promotion never works on wrong publics.

384



THE SYSTEM

The PR has to figure out his precise publics. There may be several distinct
types.

Then he has to survey and look over the reactions of each different type.

He then plans and designs his communication and offerings for each one.

An orderly org has each different public categorized and labeled in
Address.

Then the PR sends the right message to the right public in each case. There
may be a dozen different messages if there are a dozen different publics.
Each one is right for that public.

The PR is after a result, a call in, a reply, a response.

The right message in the right form to the right public gets the result.

A wrong message to the wrong public simply costs lots of money and gets no
result.

Even if a PR is engaged in "molding public opinion," it still requires a
different message to each different public.

L. RON HUBBARD

Founder

LRH:rr.rd.gm

385



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 9 OCTOBER 1970

Remimeo

Personnel Hats

PR Checksheets

Personnel Series 11

PR Series 4

THE PR PERSONALITY

A public relations personnel has to be spot on in

a.    Confronting

b.    Organizing

C.    Working.

CONFRONT

In confronting, a shy or retiring PR is  not  about  to  handle  suppressive
persons or situations. A PR must be able to stand up to and handle the  more
wild situations easily and with composure. When he does  not,  his  confront
blows and any sense of presentation or organization would go up in smoke.  A
PTS (potential trouble source) person or one  who  roller-coasters  casewise
or one who tends to retreat has no business  in  PR.  His  connections  that
make him PTS and his case would have to be handled  fully  before  he  could
make good on PR lines.

ORGANIZE

In organizing, a PR has to be able not only to organize something  well  but
to organize it faultlessly in a flash.

Every action a PR takes concerns groups and therefore has  to  be  organized
down to the finest detail; otherwise it will just be a mob scene and a  very
bad presentation.

A PR who can confront,  can  "think  on  his  feet"  and  grasp  and  handle
situations rapidly and who can organize in a flash will succeed as a PR.

WORK

The last essential ingredient of a PR is the ability to WORK.

When appointing people to PR training, the person's  work  record  is  very,
very important.

The ability to address letters,  push  around  files,  haul  furniture  into
place,  handle  towering  stacks  of  admin  in  nothing  flat  are  all  PR
requisites.

To be able to tear out to Poughkeepsie before lunch  and  set  up  the  baby
contest and build a scene for a press conference on catfish before  two  and
get dressed, meet the governor by six is WORK. It takes sweat and  push  and
energy.

A PR should be able to get out a trade paper  in  hours  where  an  "editor"
might take weeks.

386



I

The ability to work must be established in a potential PR before wasting
any training time, as a PR who can't work fails every time.

DELUSORY REQUIREMENTS

People think a PR must be charming, brilliant, able to inspire, etc., etc.

These are fine if they exist. But they are actually secondary qualities in
a PR.

Lack of the (a), (b), (c) qualities is why you see PRs begin to hit the
bottle, get sick, fail.

If a PR is also charming, brilliant, able to inspire, he is a real winner.
Possibly one is born with all these qualities every few generations.

Personnel in appointing and training PR must look for the wish to be a PR
and (a), (b) and (c).

And anyone taking up PR who does so to escape hard work will fail as it IS
hard work.

A real top PR wants to be one, has the abilities of (a), (b) and (c) and is
trained hard and well on the subject. Then you have a real stat raiser, a
real winner, a real empire builder.

L. RON HUBBARD

Founder

LRH:sb.gm

PR Series 4 Addition

[Note: HCO PL I I Apr. 1972, Personnel Series I  I  Addition,  PR  Series  4
Addition, THE PR PERSONALITY has been canceled. This issue,  not  written  ,
corrected a typographical error in HCO PL 9 Oct. 1970, Personnel Series  11,
PR Series 4, THE PR PERSONALITY. Since this correction has  now  been  made,
this additional issue is no  longer  necessary  and  has  been  canceled  by
Scientology  Policy  Directive  8,  CANCELLATION  OF  PERSONNEL  SERIES   11
ADDITION, PR SERIES 4 ADDITION-THE PR PERSONALITY, dated 27 Apr. 1982.]

387



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 18 NOVEMBER 1970

Remimeo     Issue 11

PR Series 5

PR DEFINITION

The definition of public relations is very precise. The definition is not
given sufficient importance in the texts and it is way down in the middle
of most books. It is what the subject is all about and without it the
subject doesn't make sense. (And doesn't make sense to many PR pros
either.)

It took me a whole hour to clear this definition and misunderstoods of it
and related words on a PR student. It should be meter cleared. Every word
in it should be clay tabled.

THE DUTY AND PURPOSE OF A PUBLIC RELATIONS MAN IS

THE INTERPRETATION OF TOP MANAGEMENT POLICY TO THE DIFFERENT PUBLICS OF THE
COMPANY-TO ADVISE TOP MANAGEMENT SO THAT POLICY IF LACKING CAN BE SET-TO
MAKE THE COMPANY, ITS ACTIONS OR PRODUCTS KNOWN, ACCEPTED AND UNDERSTOOD BY
THE DIFFERENT PUBLICS-AND TO ASSIST THE COMPANY TO EXIST IN A FAVORABLE
OPERATING CLIMATE SO THAT IT CAN EXPAND, PROSPER AND BE VIABLE.

If a PR man understands all that so he can apply it rapidly and perfectly,
he will then be in a position to know what PR procedures are and do his
job.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

388



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I I MAY 1971

Remimeo     Issue 11

PR Series 6

OPINION LEADERS

An "opinion leader" is that being to whom others look for interpretation  of
publicity or events. Through wisdom, proximity to data sources,  personality
or other factors including popularity itself, certain members of the  group,
company, community or nation are looked to by others for evaluation.

In the teething days of public relations, George Creel,  who  conducted  the
massive Liberty Loan drives for the US Government, considered  that  it  was
enough to batter avalanches of publicity down on the heads of  the  "general
public." Given enough money, enough  media  of  communication  and  no  real
opposition this proved successful enough.

But as time unreeled, some unsung  PR  man  recognized  the  fact  that  the
"general" public was made up of  smaller  groups.  Churches,  social  clubs,
factories,  and  thousands  of  other  large  or  small  groupings  of   the
population were what made up the "general" public.

Each of these groups had its own "opinion  leader"  and  within  each  group
there were smaller groups who each in turn had its own opinion leader.

"To whom do they listen?" "Whose opinion do  they  accept?"  "Whom  do  they
trust?" "On whom do  they  depend?"  are  the  questions,  which,  answered,
identify the opinion leader of the group, large or small.

Further, the opinion leader of a very large group, in turn,  is  interpreted
by the opinion leaders of the smaller units which go to make up  the  larger
group.

As an example, government spokesman X puts out Bulletin A on the  radio  and
TV and into the press. He is NOT talking to  masses  of  people.  He  is  in
reality talking to opinion leaders. On a crucial question there will not  be
a reaction to X until the listeners have heard what  their  opinion  leaders
have to say about Bulletin A.

If there have been other issuances like  Bulletin  A,  the  opinion  leaders
will have voiced their  own  opinions.  Their  groups  will  then  know  the
attitude. In this case Bulletin A will receive an apparent "general  public"
reaction. In short, the opinion about Bulletin As will have  been  preformed
by the opinion leaders. This  makes  it  look  like  there  is  mass  public
opinion without opinion leaders.

One of the great dangers of PR practice comes from not  really  knowing  the
subject well enough or in twisting it or in losing bits of it.

Having discovered the principle that "opinion leaders" form public  opinion,
not the "general" public, many PR  people  forgot  it,  or  didn't  give  it
enough importance or even in some cases chose to  be  willfully  destructive
of their employers.

It should be very obvious that if general public reaction  to  an  event  is
dependent upon the reaction and interpretation of opinion  leaders,  then  a
PR action's success depends upon favorably influencing the  opinion  leaders
of that part of the population one is trying to reach and  calculating  what
opinion leaders one can neglect or even offend.

This would be almost mathematical in computation. Spokesman X issuing a

389



Bulletin A that offended 55% of the opinion leaders would  get,  roughly,  a
55% opposing reaction from the whole public.

I Surveys for the identities of opinion leaders would then  become  a  MAJOR
activity of PR in any area and for any type of message or event.

Even a rough estimation, which is easily done, would serve  better  than  no
thought of it at all.

PR men go for Very Important People. PR wears this out  beyond  belief.  But
it is an alter-is. VIPs  to  PR  are  only  opinion  leaders.  A  government
minister is tagged automatically by PR people as a VIP because his  car  has
flags and he is a minister. Yet he may be a drunken nephew whose opinion  is
about as welcome to his colleagues as a hangover. So he may be a VIP but  he
is not an opinion leader. When he says "blue," his colleagues think  "black"
and the opinion leaders in the public think "red." The only PR use  of  this
minister would be to get him to embrace and speak up for someone you  wanted
shot or some cause you wanted opposed!

There is such a situation currently in a man called Goodrich  or  some  such
name, head of FDA in  Washington.  Thirty-two  years  in  that  agency,  big
record. Head of it = VIP. All he has to do is open his mouth and  his  staff
writhes, Congress spits and opinion leaders say no-no-no. So he  could  only
be used to oppose something you wanted popular.

So it's very lazy PR to assume that a  "VIP"  is  worth  knowing  or  using.
Sometimes VIPs are also opinion leaders.

Celebrities are more often opinion leaders as they arrive at their  role  by
popular acclaim. But even here one has to  operate  with  good  sense.  Paul
Robeson, the great American singer, was used by Communists in the  1930s  to
popularize their cause. It did not achieve this.  Paul  Robeson  championing
his own race probably would have advanced civil rights legislation  greatly.
The misuse brought anti-Communists to believe that  all  the  Negroes  would
now become a Communist fifth column and brought about strong  opposition  to
Negroes and to Communists.

The rule that should not be violated is to use an  opinion  leader  only  to
further an opinion he could have visibly. The equation must add up with  all
factors of a kind, not a strange factor interjected into the sequence.  Like
music, you don't introduce a wrong note in the scale if you want  harmonious
rendition. Robeson (black singer)-opinion leader  of  blacks-communism.  Too
odd a  sequence.  Robeson  (black  singer)-opinion  leader  of  blacks-black
relief. Obvious sequence.

The equation:

Bertrand Russell (British  philosopher)-academic  opinion  leader-communism:
caused a strengthening of the Communist  cause  because  he  was  a  thought
symbol and "anybody was free to  think"  and  "they're  always  forming  odd
ideas in the halls of learning." His statement "Better red than dead" was  a
classic PR caper. It was widely quoted. Helped Russell,  of  whom  few  ever
would have heard, and possibly helped  communism,  at  least  to  be  talked
about, and obviously was picked up by the group in  which  Russell  existed.
To the rest of us this may have sounded like naked  atomic  war  threat  and
war-mongering. But it was the proper use of a foreign opinion  leader  by  a
large group.

Now if the paragraph above jarred on you in any way or seemed to  espouse  a
strange cause, etc., etc., you will  have  the  reason  why  PR  men  cannot
always see clearly and objectively. They  themselves  are  too  involved  in
causes and pros and cons to remain pan-determined (viewing or  handling  all
sides).

By permitting prejudice to get in the way of handling  opinions,  a  PR  man
loses control of his subject. He becomes so violently partisan that many  of
his stable data become blurred or abused.

390



Thus the subject of opinion leaders can become abandoned. Disagreement  with
the views of some of them remove not only the opinion leaders but the  whole
subject of opinion leaders out of use.

While conducting themselves like status-mad prima donnas, seeking  to  exist
mainly by PR techniques, most  people  in  government  power  positions  are
remarkably badly served by their PR men  and  by  their  own  prejudices  or
jealousies.

Essentially, a person in power is not the same person seeking power.

Maintaining power is a different subject than attaining power.

A politician by definition is someone who  handles  people.  Even  the  word
means "people." Thus the  subject  of  "public  relations"  does  a  natural
closure with government.

Yet the alteration of the subject of PR and its misuse, neglect or abuse  by
government PR men could be in itself a considerable study.

The vast majority of population unrest stems from  the  misuse,  neglect  or
abuse of PR technology by governments, even those governments that  consider
themselves experts.

A politician commonly is boosted to power by opinion leaders. This could  be
called the "will of the people." Once he has  attained  power,  the  garden-
variety politician of this age finds himself committed to special  interests
that have little  to  do  with  the  "will  of  the  people."  Few  are  the
politicians who have the integrity to continue to  look  to  the  people-the
opinion leaders-who put them  there.  Thus,  now  apparently  serving  other
masters, they appear to have been false in their  earlier  pretensions.  Not
remaining true to their opinion leaders, politicians as  a  general  subject
acquires a cynical reputation with the "people."

A Labor leader in England, put into power by opinion  leaders,  then  spends
his time in office talking about bankers, banking,  deficits  and  all  that
mumbo jumbo of modern government, speaks hostilely about  unions,  seeks  to
restrain shop stewards and union bosses, puts  on  a  tax  to  penalize  any
company that hires someone and then has the dullness to wonder why  he  took
a beating at the polls  eventually  and  lost.  He  turned  on  his  opinion
leaders. Where were his vaunted PR experts?

The US Government routinely achieves the impossible of turning the  bulk  of
the population against it on most  issues.  Its  politicians  are  regularly
forced to maintain their positions by huge avalanches of public funds.

Hiring more and more police and spies for more and  more  government  police
agencies, the government is becoming less  and  less  popular.  "Patriotism"
and "idealism" are now considered dirty words.

Why? How did this get this bad?

Well, one reason is that government  PR  is  continually  recoiling  on  the
government. Either they don't hire good PR men, or if they  do,  they  don't
take their advice. Or their PR  men  don't  know  their  subject  or  aren't
permitted to practice it.

The general unrest and  unpopularity  is  largely  traceable  to  a  violent
disregard of the subject of opinion leaders.

Attaining power is done usually by the consent of or with the  help  of  the
opinion leaders. Arrival in a position of power too often causes the  person
to shift the basis of his operation. He is now  associating  with  different
people in a power strata. It would require quite an effort of  will  to  not
be seduced. Having achieved power by opinion leaders, the person may  forget
them and seek to maintain  power  by  other  means  or  by  force.  This  is
essentially a violation of the Power Formula which indicates one should

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not disconnect. By disconnecting from  the  previous  opinion  leaders,  the
person begins his own demise.

This is terribly easy to do in the case of government. It is so easy  for  a
government to use FORCE that a disregard of  previous  opinion  leaders  can
occur.

Money power is usually  available  to  persons  who  rise  to  positions  of
leadership and can be, like force, a substitute.

Thus a truly suborned leader would desert "opinion leader"  as  a  basis  of
power and begin to use FORCE and MONEY to hold his position.

But when one assumes a position of power, regard for opinion leaders  should
broaden, not be dropped.

The astute leader on his way up may tread heavily on the opinion leaders  of
the opposition. This has its benefits in reinforcing the  favor  of  opinion
leaders for him. But it also has its liabilities for, now in power,  he  may
have serious enemies who are all the more perturbed now that they  too  have
him as a leader.

Few politicians-indeed  few  men  who  move  into  any  kind  of  power-ever
satisfactorily solve this problem. The  very  able  ones  do  solve  it  and
become far more powerful as a result since they do  not  violate  the  Power
Formula.

Not only does the brilliant leader refuse to  disconnect  from  the  opinion
leaders who put him there through "public approval," he also  connects  with
the previously opposing opinion leaders. If truly magnificent, he gains  the
good opinion of  former  hostile  opinion  leaders  without  decreasing  the
goodwill of the opinion leaders who put him  there.  This  actually  defines
the difference between a second-rate politician and a  real  statesman.  The
genius required to arrive at such solutions cannot  be  underestimated,  but
the formula of achieving it is elementary PR.

The leader of the "blues" (supported of course by  the  opinion  leaders  of
the "blues") rises to power in the  teeth  of  "green"  opposition.  Now  in
power, he has sway over both the blues and the greens.  The  blue's  opinion
is that this should signal a panorama of dead greens. But unless  this  rule
is to be just one long bloodbath it is now necessary  to  cool  off  tempers
all around, preserve  blue  support  and  win  green  support.  That  is  an
elementary equation.

Attilas and Huns and Genghis Khans  solved  this  by  simply  murdering  all
imagined hostile elements. They may be  known  in  history  but  politically
they built nothing that endured. Even the pyramids of skulls vanished.

Men like Hitler went so far in  reverse  in  handling  this  problem  as  to
finally slaughter even their adherents.

In the general field of human  activities  every  different  or  specialized
group can be considered a political unit. It elects with a wide  variety  of
formalities or lack of them its leaders, and when  different  agencies  than
themselves elect them (inheritance, appointments from  without),  the  group
at least elects its opinion leaders if only by listening.

And people strive to be opinion leaders and  also  back  down  or  otherwise
react when someone else is so "elected."

So being an opinion leader involves the responsibility  of  maintaining  the
position by remaining well-informed or personable or whatever else seems  to
be required.

One has to decide in some degree  what  he  is  an  opinion  leader  for  or
against or at least about. And one has to set a zone or  have  one  set  for
him in which he operates.

A usual example is the family. Often someone in it is the opinion leader.
It is not

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necessarily the one with the money or the force. Where one member or  clique
has the money or force and uses these and  the  opinion  leader  is  someone
else, strife and domestic upset may result.

All the children may  look  to  an  aunt  for  their  styles,  thoughts  and
approval. Where this runs counter to the money-force  persons,  somebody  is
going to have a broken home or a horrible old age.

Such is human prejudice-or ignorance-that  the  money-force  persons  almost
never dream of winning the support of the opinion leader aunt by  sound  but
popular policy based on consultation.

The right answer of course is  for  the  money-force  power  to  operate  in
consultation with the opinion leader.

This is true all the way on up to government-sized groups.

Money-force may bribe and break necks but it really never  does  become  the
leader in the absence of the approval of a majority of opinion leaders.

Prosperity and an easy rule depend utterly upon the cooperation  of  opinion
leaders.

The US Government in the last few  decades  has  seemed  obsessed  with  the
antagonizing or destruction of opinion leaders.

Using the broad mass approach long since found faulty in PR activities,  the
US Government has lately sought to reach the "public" without that  annoying
step of reaching and getting the approval of opinion leaders.

Instead, an army of spies from every agency (according to the  Committee  of
Senator Ervin), descend upon any and every popular leader, hound him,  annoy
him,  discredit  him.  Even  managers  of  businesses  are  so  plagued   by
government they can hardly do their work. This is also true of  England  and
other countries.

The unrest in the United  States  and  some  other  countries  is  traceable
directly to this fantastic omission in their PR  technical  expertise.  They
not only do not seek the favor of opinion leaders, they actively harass  and
seek to destroy them.

In return the opinion leaders feel endangered and have  and  state  opinions
accordingly. The power of the government  drops  back  on  money  and  force
only. Governmental survival is thus greatly impaired.

The so-called "mass news media," by which is  meant  newspapers,  TV,  radio
and magazines, has the fault built into its title. It cannot and never  will
reach any masses directly. It reaches only through opinion leaders.  It  has
to quote this one and that one which it fancies as an  opinion  leader.  But
it never finds out WHO the opinion leaders are.

Newspaper editorials are a direct effort to force opinion.  They  quote  the
opinions of other papers just as though these were opinion leaders.

They believe they "mold public opinion" but PR men long since have given  up
this idea and even greet it with raucous laughter.

Newspapers have ceased to wonder about their rapid demise. They are  getting
fewer fast. They thought it was radio. Then TV. It wasn't.

Willy Hearst's 1890 yellow journalism and scandal  mongering  began  to  dig
the grave of the newspaper that many decades ago.

Hear this: while seeking to control public opinion, newspapers began to
strike

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viciously  at  opinion  leaders.  Name  him,  sooner  or  later  any  really
important opinion leader in the area would be hit with scandal. It  happened
so often that opinion leaders automatically began  to  say,  "Don't  believe
the newspapers."

The day of the newspaper is dead. The not-mourned London Daily Mail hit  one
too many opinion leaders one too many times. And nobody believed it  anymore
and nobody bought it. And it folded.

So government or newspaper or church or hockey club, the same rule  applies.
The goodwill of the opinion leaders is necessary for survival. Not the  good
opinion of the masses! Since that cannot be reached.

The  Russian  state  talks  down  about  individualism.  The  "cult  of  the
individual" is a bad thing.

Their internal police is vital to them. They have forgotten that the  Czar's
Okhrana* destroyed the Czar by destroying every opinion leader  amongst  the
people whom they could seize or slay.

Almost amusingly, the US Government has taken  over  the  exact  operational
pattern of the Okhrana.  You  can  hardly  get  to  your  desk  through  the
government forms and mobs of spies urging the  staff  to  commit  crimes  so
they can be arrested or holding out bribes to falsify the tax  reports.  All
one has to do is mention the US Government in a pop program and  he'll  have
three army sergeants from G-2 pushing the band out of the  way.  That's  the
way it was in pre-1917 Russia just before the opinion leaders decided NO  in
one final bloodbath.

So as 1 said earlier in this series, PR is dangerous stuff  if  one  doesn't
really know it and if one only applies half of it.

Omitting the opinion leader is bad enough. Seeking to destroy  him  is  far,
far worse.

Yes, one says, but how about the violent opposition? How about that fellow?

Well, he's a problem. But he is an opinion leader.

One has to decide how much of an opinion leader he is.

If you don't handle a would-be opinion leader who is anti but who is NOT  an
opinion leader, people get cross.

The decision here sterns from

a.    Is he talking about actual abuses, or

b.    Is he just lying?

In either case one has certain courses of action. If the abuses are  actual,
work to remedy them. If he is just lying, lay out the truth.  If  he  really
isn't an opinion leader, ignore him.

But one can only interfere with him or remove him if many, many are  getting
cross because you don't. But that's a risky business.

As a rule, only that dissident person should be removed who is  speaking  in
your name and on your lines and using your power to do you  down.  And  then
he can only be removed off your lines as you  are  under  no  obligation  to
finance or empower your  own  opposition.  That's  suicide.  He  is  not  an
opinion leader but a traitor, for he owes his power to you.

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Usually anti-opinion leaders are made by neglect.

PR-wise, one has to catch them early and handle.

Abuses by those in charge are never put right by force. They are only
worsened.

Perhaps there is no excuse whatever to use  force  to  enforce  an  opinion.
Wars are notorious for failing to solve. You can always find a  point  years
or decades before the war when a point existed that PR and cooperative  rule
could have solved.

PR imperfectly known or unknown as a subject leads to big trouble.

PR is powerless when it doesn't know.

PR loses when it neglects.

Early enough, PR alone does it.

Later, PR with concessions is needed.

Then, PR is out and only force is thought to serve.

This would be a DETERIORATING SITUATION.

The longer PR takes to catch it up, the more imminent loss or force
becomes.

From this, technically adept PR could be seen to have too limited a role  in
the affairs of nations or groups.

The way to attain a more dominant role with PR is first  to  know  it  well,
next to be sure others, who  should,  understand  it  and  then  to  use  it
effectively,

As it is a subject which is meant to reach masses,  remember  that  it  must
reach them through opinion leaders.

Opinion leaders may or may not be VIPs. But  they  are,  whoever  they  are,
barber or king, VIPs to the PR.

Thus surveys for opinion leaders are necessary. And the opinions of  opinion
leaders must be known.

And for heaven's sake restrain the boss from  shooting  opinion  leaders  no
matter how just his wrath.

But also don't tell him Dr. Kutzbrain is an opinion leader just  because  he
talks to two nurses and his wife.

Peace is not necessarily a target of PR. Survival is. And survival  requires
some control of opinion.

When this becomes control of numbers of  people,  PR  is  only  accomplished
through opinion leaders.

L. RON HUBBARD

LRH:nt.rd.gm     Founder





(*Okhrana or Ochrana: [Russian, literally, protection,  guard]  The  Russian
secret  political  police  under   the   czarist   regime.   Webster's   New
International Dictionary Second Edition.)

395



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I I MAY 1971

Remimeo     Issue III

PR Series 7

BLACK PR

About the most involved employment of PR is its  covert  use  in  destroying
the repute of individuals and groups.

More correctly this is technically called BLACK PROPAGANDA.

Basically it is an intelligence technique.

It can be a serious error to cross intelligence and PR.

These are two different fields. They have two distinctly different
technologies.

A PR man must also know something of intelligence technology. Otherwise  one
day he will be left gaping.

Intelligence is intelligence. PR is PR,

When you gather information by intelligence procedures and  at  once  employ
it for PR, the result is likely to be poor.

It is not that it isn't done. It's that it isn't very effective. Also it  is
an act of desperation.

PR IS OVERT.

INTELLIGENCE IS COVERT.

PR is at its best when it begins and ends overtly.

Intelligence is best when it begins and ends covertly.

PR with an open demand by known authors, a demonstration, a  conference,  is
normal PR.

Intelligence trembles on the edge of PR when filched data explodes  a  storm
in the public. It recoils when the authors are then known.

Black propaganda is, in its technical accuracy,  a  covert  operation  where
unknown authors publicly  effect  a  derogatory  reaction  and  then  remain
unknown.

The effect of black propaganda is largely wiped out  by,  "Oh,  it  was  the
Germans who set them up."

So PR enters intelligence in this way:  One  finds  who  set  up  the  black
propaganda and explodes that into public view.

This use of PR is almost that of an auditor to the group. One is  disclosing
hidden sources of aberration.

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To use intelligence to find where they hid the body and then flip over  into
wide publicity is not very powerful in actual practice. There  better  be  a
body there and one better tell the police, not the public.

If there are no effective  police,  then  one  has  the  problem  of  police
action. Exploding it to the public,  ideally,  is  an  effort  to  make  the
public  a  vigilante  committee.  Modern  publics  seldom  rise  this  high.
Educated publics seldom explode to the explosion.

A PR man who thinks of taking Blitz & Company's  crimes  to  the  public  is
really just dreaming hopefully-without foundation. It may or  may  not  hurt
Blitz. It might recoil. The ability of the public to stand around  and  look
stupidly at a dripping-handed murderer without doing a thing about it  is  a
symptom of our civilization. They ought to act. They don't. You can form  an
opinion amongst them but governing bodies won't consult it.

Exposure is not an effective road to action. It can be to opinion. It is
slow.

Then what is effective?

INTELLIGENCE

By definition intelligence is covert. Under cover. If it is kept so all  the
way, it is effective.

When intelligence surfaces, it becomes very ineffective.

Threat and mystery are a lot of the power of intelligence. Publicity blows
it.

Take the Red  Orchestra,  World  War  11,  Stalingrad  Campaign.  In  Berlin
SchulzeBoysen and other highly placed Russian agents got  the  whole  German
plan  of  the  battle  that  was  to  Stalingrad.   Brilliant   and   covert
intelligence. They passed it to the Russians.  Brilliant  and  covert  comm.
The boss at Center in Moscow put the ring's names and addresses  in  a  code
radio message. The Germans of course broke the  code.  The  Germans  rounded
them up and messily executed them on meat hooks. The Germans  had  no  other
battle plans but contemplated not attacking Stalingrad that  way.  This  put
the whole coup at risk. Then the Germans did  use  the  plans  the  Russians
knew and that was the beginning of the end of WW 11.

So TWO exposures threatened the success of this intelligence coup.  One  was
the stupid radio message. The other was the  realization  the  Russians  had
the battle plans.

Exposure is the basic threat of intelligence.

PR is the willful broadcast of information.

The two don't mix well.

BLACK PROPAGANDA

Possibly used since the  morning  pale  of  history,  black  propaganda  was
developed by the British and German services in World  War  I  into  a  fine
art.

The word "propaganda" means putting out slanted information to populations.

One propagandizes the enemy population or one's own or neutrals.

In popular interpretation it is a parade of lies or half-truths or
exaggerations.

PR and advertising technology and mass news media are employed  as  well  as
word of mouth and posters.

397



The trouble with it is that it can often be disproven, discrediting the
utterers of it.

It may serve the moment but after a war it leaves a very bad taste.

If one is engaging on a campaign of this  nature,  its  success  depends  on
sticking to the truth and being able to document it.

The entire black propaganda campaign conducted for twenty-one years  against
Scientology began to fold up in its 16th year because never at any time  did
its instigators (a) have any factual adverse data or (b) tell the truth.

The Scientology movement continued if only by heroic means and much
sacrifice.

But at last nobody of any note believed the propaganda.

The attackers pulled in on themselves a counterattack based on  penetrating,
horrible, documented truth.

It required intelligence-like tactics to discover who it was exactly.

The "dead agent caper" was used to disprove  the  lies.  This  consisted  of
counterdocumenting any area where the lies were circulated.  The  lie  "they
were . . ." is countered by a document showing "they were not." This  causes
the source of the lie and any  other  statements  from  that  source  to  be
discarded.

That  real  trouble  and  damage  was  caused  Scientology  is  not  to   be
discounted. The brilliance of the  defense  was  fantastic.  The  depth  and
inroads the propagandists reached was alarming. BUT THEY DIDN'T MAKE IT.

Some black propaganda campaigns have won in other areas, not Scientology.

The British got the US into World War I with  black  propaganda,  despite  a
president elected on a peace platform.

Many individuals have been destroyed  by  black  propaganda.  Wilhelm  Reich
was, by the lies and violence of the FDA.

So black propaganda is not a certain-result technology.  It  is  costly.  It
makes fantastic trouble.

Essentially it is NOT a PR campaign. It is a cross between PR and
intelligence.

The technique is

A hidden source injects lies and derogatory data into public view.

Since it is a  hidden  source,  it  requires  an  intelligence  approach  to
successfully end it.

In the meanwhile the "dead agent caper" is the best tool to counter it.

Legal action can restrain such a campaign but is  chancy  unless  one  knows
the source or at least has counterdocuments.  It  is  risky  solely  because
"law" is unpredictable.  However,  legal  action  has  a  definite  role  in
restraining, not in ending, such a campaign.

A good policy when faced with a black propaganda campaign is  to  defend  as
best  you  can  (dead  agent  and  legal  restraints)  while  you  find  out
(intelligence) WHO is doing it. Then, confrontation can occur.  Finding  and
suing false whos can make things much more involved.

Black propaganda countercampaigns are inevitable. One engages upon them

398



whether he would or not. These are engaged on while  one  narrows  down  the
area to an exact WHO. For instance, one knows  the  whatsits  are  attacking
one. Thus he can counterattack the  whatsits.  But  what  are  the  whatsits
exactly, and to whom are they connected,  and  exactly  WHO  (an  individual
always)  is  keeping  it  going?  These  last  three  have  to  be  answered
eventually. And that requires an intelligence-type search.

THE CROSS

So there is where intelligence and PR cross.

When PR goes into black propaganda (hidden source using lies and  defamation
to destroy) it has crossed  intelligence  with  publicity.  They  don't  mix
well.

The action is risky to engage upon as it may  run  into  an  ex-intelligence
officer or trained intelligence personnel. It  may  also  run  into  a  dead
agent caper or legal restraint.

Anyone engaging in black propaganda is either using a wrong way to  right  a
wrong or confessing he can't make it in open competition.

PROTEST PR

Outright protest PR, based on facts, is a legitimate  method  of  attempting
to right wrongs.

It has to be kept overt. It has to be true.

Protest PR can include demonstrations, hard news stories and any PR
mechanism.

Minorities have  learned  that  only  protest  PR  can  get  attention  from
politicians or lofty institutions or negligent or arrogant bosses.

Where protest PR is felt to be a necessity, neglect has already occurred  on
the issues.

The riots of Panama some years ago were very violent, verging on  open  war.
This followed the negligence of  the  US  in  negotiating  new  treaties,  a
matter arranged for long ago and arrogantly skipped  for  several  years  by
the US.

The slaves were freed in 1864 but were either misused or neglected  for  the
next century and finally became a key racial problem full of  demonstrations
and riots and social unrest. Imperfect redress  of  wrongs  following  these
then continued the riots. This is probably the biggest PR mess of  the  last
century and a half, wobbling this way and that. It is still in the stage  of
protest PR, possibly because it went so very, very long unhandled.

The only real recourse these people had  was  protest  PR.  Recently,  black
congressmen were refused audience by  the  President  and  had  to  stage  a
demonstration before it was granted. But protest PR did obtain an audience.

The silliest idea of modern times is conscription.  Drafted  soldiers  might
possibly be excused as a levee en masse but not as the habit  of  government
in peace and war just to overcome their lack of ability to make the  country
worth fighting for and the armed services a stable attractive  career.  This
is all the more foolish since hardly anyone in history ever had any  trouble
recruiting an army that could pay for one. Even Gibbon remarks on it  as  an
amazingly easy thing to do in any civilization. And that is true today.

So conscription is continued. Facing  every  young  man  with  an  arbitrary
military future was a bad thing. Napoleon invented it and he lost.

Protest PR was the answer used to contest it. Met by force and violence,  it
has not halted.

399



Somebody will have  to  give  the  country  a  nobler  cause  more  decently
prosecuted, will have to better the services and conditions  and  will  have
to admit men without demanding their right names  or  perfect  physique  and
make them immune to recall for civil  offenses.  Probably  that  army  would
fight well. Conscript services are too expensive, too  inefficient  and  too
ready to revolt  for  any  sane  government  to  use  them.  But  here  this
unhandled wrong has to resort to protest PR.

So protest PR has its place. It  is  a  fine  art.  It  is  the  subject  of
fantastic skill and tech.

It is not good. But it does work and it  is  used  as  a  last  resort  when
normal hearings and good sense fail.

When money and force lead and opinion leaders  are  unheeded,  when  special
privilege enters management or  government,  protest  PR,  the  strike,  the
demonstration, is the tool employed.

If that doesn't work, or if  it  is  crushed,  subversive  actions,  general
intelligence actions, black propaganda and other evils occur.

PR used soon enough can avert much of these consequences.

But there are always two in any fight and the other side  may  not  want  to
live and so set themselves up.

Intelligent, early PR is the best remedy. But it is not always possible.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

400



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 MAY 1971

Remimeo

PR Series 8

TOO LITTLE TOO LATE

The hallmark of bad promotion is "Too Little Too Late."

Probably the most aggravating and most suppressive error that  can  be  made
by those doing promotion or other PR actions  is  to  plan  or  announce  an
event too close to the date for anyone to come.

Typical report, "Only 50 came to the congress. I guess it just wasn't
popular."

An exec hearing this can validly suspect "too little too late" as  the  real
WHY. He would be 95% right without even querying further.

"When did you announce the July I congress?" Usual  true  answer:  June  25!
"How many mailings were sent?" Usual true answer: 500 "because  FR  .  .  ."
"What other promotion was done?" Usual true answer: None.

Reason for only 50 at the congress:  "Too  little  promotion  announced  too
late for anyone to come."

Often this factor is hidden. Other  more  dramatic  reasons,  not  the  true
WHYs, are advanced. "There was a football match the same date." "We  are  in
disrepute." "There is an anti-campaign." "The press. . . ." Yap,  yap,  yap.
All lies. It was just too little promotion too late.

"Nobody showed up for the VIP dinner." The right response to this is,  "When
did you send the invitations?" "Well, you  see,  FP  wouldn't  give  us  any
stamps so ...... "WHEN did you send the invitations?" "The same  morning  as
the dinner was held." "Were they engraved?" "No, we sort of ran them off  on
mimeo."

Just why event failures are 95% traced "handled at the last  moment  without
proper planning and without proper verified  addresses  and  without  enough
posh or volume" is itself a mystery.

Undermanned PR section is the most charitable reason.

PR in reality is about 80% preparation of the event and about 20% event.

If the preparation is not planned and prepared fully well in advance of  the
event, the events fail.

Off-the-cuff PR is sometimes necessary. But usually made necessary  by  lack
of foresight and hard work.

There is a rule about this:

THE SUCCESS OF ANY EVENT IS DIRECTLY PROPORTIONAL TO THE

TIMELY PREPARATION.

In other words, poor preparation made too late gives an unsuccessful event.

401



PR is hard work. But the hard work mostly occurs before there is any  public
view of it. The work in the event itself is pie.

You  see  these  beautifully  staged  affairs,   these   flawless   polished
occurrences. They look so effortless. Well, they LOOK effortless  because  a
fantastic amount of preparation went into them ahead of time.

A well-attended event is planned and drilled and  announced  ages  ahead  of
the occurrence.

Even a mere dinner has to be announced at least a week in advance.

PRs who don't work hard to plan and drill and who  don't  announce  in  time
with enough promotion have flops.

So PR flops come from failures to plan, drill, promote enough and in  plenty
of time.

Therefore, PR  successes  are  best  guaranteed  by  data  gathering,  sharp
planning, heavy drilling, timely announcement and adequate promotion.

Even a surprise event has to be handled this way for everyone  except  those
for whom the surprise is intended.

So gather the data that will guide planning, plan well, program it,  do  all
the clerical actions necessary, announce it in ample time, drill  all  those
connected with it heavily until they're flawless and then stage it.

And there you are, a "spontaneous," highly successful event.

Whether it's a protest march, a press conference, a congress, a  new  course
or dinner for VIPs or even just friends, if it's to be  a  success,  prepare
it and announce it widely in plenty of time.

There was this grave  where  they  buried  a  failed  PR  man.  And  on  the
headstone they put, "George Backlog. Too Little,  Too  Late."  They  had  to
shoot him because he broke the company's leg.

A mediocre event very well-prepared and announced  well  and  in  time  will
succeed better than the most splendid event done off-the-cuff.

The next time you see empty seats  remember  and  use  this  PL.  Or  better
still, do it right in the first place.

L. RON HUBBARD

Founder

LRH:sb.rd.gm

402



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 30 MAY 1971

Remimeo

PR Series 9

MANNERS

The original procedure developed by  Man  to  oil  the  machinery  of  human
relationships was "Good Manners."

Various other terms that describe this procedure  are  politeness,  decorum,
formality,  etiquette,  form,   courtesy,   refinement,   polish,   culture,
civility, courtliness and respect.

Even the most primitive cultures  had  highly  developed  rituals  of  human
relationship. In studying twenty-one different primitive races, which I  did
firsthand, I was continually impressed with the formalities  which  attended
their interpersonal and intertribal and interracial relationships.

Throughout all races, "bad manners" are condemned.

Those with "bad manners" are REJECTED.

Thus the primary technology of public relations was "manners."

Therefore, a public relations man or team that has not drilled and  mastered
the manners accepted as "good manners" by those being contacted  will  fail.
Such a PR man or team  may  know  all  the  senior  PR  tech  and  yet  fail
miserably on the sole basis of "exhibiting bad manners."

"Good manners" sum up to (a) granting importance to  the  other  person  and
(b) using the two-way communication cycle (as in  Dianetics  55!).  Whatever
motions or rituals are, these two factors are involved. Thus a PR  violating
them will find himself and his program rejected.

Arrogance and force  may  win  dominion  and  control  but  will  never  win
acceptance and respect.

For all his "mental  technology"  the  psychiatrist  or  psychologist  could
never win applause or general  goodwill  because  they  are  personally  (a)
arrogant beyond belief (b) hold others in  scathing  contempt  ("Man  is  an
animal," "people are all  insane,"  etc.).  Born  from  Bismarck's  military
attitude, these subjects have borrowed as well the attitude which  made  the
Nazis an object of worldwide condemnation. No matter how  many  people  were
maimed or killed, the Nazis would never have dominated the  world  any  more
than their "mental scientists" will ever win over humanity.

They just don't have "good manners"; i.e., they do not (a) consider or  give
others a feeling of importance and (b) they are total strangers  to  a  comm
cycle-

SUCCESSFUL PR

All successful PR, then, is built upon  the  bedrock  of  good  manners,  as
these are the first technology developed to ease human relations.

Good manners are  much  more  widely  known  and  respected  than  PR  tech.
Therefore NO PR tech will be successful if this element is omitted.

403



Brushing off "mere guards" as beneath one's notice while one  goes  after  a
contact with their boss can be fatal. Who talks to their boss?  These  "mere
guards."

Making an appointment and not keeping it, issuing  an  invitation  too  late
for it to be accepted, not offering food or a drink, not standing up when  a
lady or important man enters, treating one's subordinates  like  lackeys  in
public, raising one's voice harshly in  public,  interrupting  what  someone
else is saying to "do something important," not saying  thank  you  or  good
night-these are all "bad manners." People who do these or a  thousand  other
discourtesies are mentally rejected  by  those  with  whom  they  come  into
contact.

As PR is basically acceptance then bad manners defeat it utterly.

A successful PR person has to have good manners.

This is not hard. One has to assess his attitude toward others and  iron  it
out. Are they individually important? One  has  to  have  his  two-way  comm
cycle perfect, so perfect it is so natural that it is never noticed.

Given those two things, a PR can now learn the bits of  ritual  that  go  to
make up the procedure that is considered "good manners" in  the  group  with
which he is associating.

Then given PR tech correctly used, one has successful PR.

IMPORTANCE

You have no idea how important people are. There is a  reversed  ratio-those
at the bottom have a self-importance far greater than those at the  top  who
are important. A charlady's concept of her own  importance  is  far  greater
than that of a successful general manager!

Ignore people at your peril.

Flattery is not very useful, is often suspect, as it does not  come  from  a
sincere belief and the falsity in it is detectable to all but a fool.

A person's importance is made evident to him  by  showing  him  respect,  or
just by assuring him he is visible and acceptable.

To see and acknowledge the existence of someone is a granting of their
importance.

To know their name and their connections also establishes importance,

Asserting one's own importance is about as acceptable as a dead cat at a
wedding.

People have value and are important. Big or small they are important.

If you know that, you are halfway home with good manners.

Thus PR can occur.

COMMUNICATION

The two-way comm cycle is more important than the content.

The content of the comm, the meaning to be put across to another or  others,
is secondary to the fact of a two-way comm cycle.

Comm exists to be replied to or used.

Comm with the comm cycle being in first must exist before it carries any
message.

404



Messages do not travel on no line.

Advertising is always violating this. Buy Beanos! Into the empty air.  Other
things must establish the line. And the line must be such as  to  obtain  an
answer, either by use or purchase or reply.

A funny example was a letter writer who  without  preamble  or  reason  told
people to buy a multi-thousand dollar package without  even  an  explanation
of its use or value. Response zero. No comm line. He was writing to  a  name
but not really to anyone.

In  social  intercourse  a  comm  cycle  must  be  established  before   any
acceptance of the speaker can occur. Then one might get across a message.

Good manners require a two-way comm cycle.  This  is  even  true  of  social
letters and phone calls.

Out of this one gets "telling the hostess good night as one leaves."

One really has to understand the two-way comm  cycle  to  have  really  good
manners.

Without a two-way comm cycle, PR is pretty poor stuff.

PRIMITIVES

If an American Indian's ritual of conference was so exact and complex, if  a
thousand other primitive races had  precise  social  conduct  and  forms  of
address, then it is not too much to ask modern man to have good  manners  as
well.

But "good manners" are less apparent in our times than they once were.  This
comes about because the intermingling of  so  many  races  and  customs  has
tended to destroy the ritual patterns once well-established in  the  smaller
units.

So one appears to behold a sloppy age of manners.

This is no excuse to have bad manners.

One can have excellent manners by just observing

a.    Importance of people

b.    Two-way comm cycle

C.    Local rituals observed as proper conduct.

These are the first musts of a PR man or woman.

On that foundation can be built an acceptable  PR  presence  that  makes  PR
succeed.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

[Note: Paragraph 4 under the "Communication" section which formerly read
"Comm without the comm cycle being in first must exist before it carries
any message" has been corrected to read "Comm with the comm cycle being in
first must exist before it carries any message."]

405



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 2 JUNE 197 1 R

Remirneo    Issue 11

PRO Course  REVISED 28 JULY 1983

      Checksheet

Div 6 Sec Hats

Dept 16 Hats     (Revised to correct typos in the original issue and

            to correct the word "average" to read "majority" in

            the second last paragraph.)

            (Revisions in this type style)

PR Series ]OR

      BREAKTHROUGH

      PR AND PRODUCTION

      TONE SCALE SURVEYS

      (Reference: FEBC Tape No. 2

      which contains the full text.)

THE LAWS OF PR

THE PRIMARY BARRIER TO PRODUCTION IS HUMAN EMOTION AND REACTION.

PR IS THE SOCIAL TECHNOLOGY OF  HANDLING  AND  CHANGING  HUMAN  EMOTION  AND
REACTION.

A LOW PRODUCTION AREA IS OUT-MORALE BECAUSE IT IS  LOW  PRODUCTION.  IF  YOU
CAN NURSE THE AREA UP TO PRODUCTION, YOU HAVE MORALE.

DON'T USE NEGATIVE ARC IN  A  PR  SURVEY.  MAKE  IT  LIGHT  SO  IT  INVOLVES
COMMUNICATION.

To get a PR survey done in an area that  is  barriered  against  production,
you begin by  writing  down  three  VERY  DIRECT  questions  that  you  want
answered. One question for each of BE, DO, HAVE.

On a survey of Lower  Slobovia  central  command  point,  the  three  direct
questions could be

1.    (BE) Do you want this joint to succeed?

2.    (DO) Are you personally going to be active in getting this show on
the road?

3.    (HAVE) Are you going to directly assist Scientology to acquire Lower

      Slobovia?

Now you translate these  into  the  field  of  human  emotion.  Each  direct
question is concerned with one or more of A, R and C. You put down  by  your
direct question what each question is concerned with.

In the example above,

1.    is A

2.    is A or C

3.    is R.

406



You now phrase a question to  which  you  will  get  a  reaction,  and  that
reaction you get has to be the reaction of  the  individual  to  the  direct
question, but you get that reaction  by  asking  him  a  different  question
translated into terms of emotion that will  give  you  his  reaction  willy-
nilly. He can figure his way round the direct question  to  give  you  a  PR
answer. He cannot help  but  give  you  his  reaction  if  you  involve  his
emotions. The direct question does not involve his emotions  so  he  doesn't
give a reaction you can observe clearly as the reaction to the question.

Having established your BE, DO, HAVE questions and added  your  connotations
of A, R, C, you can translate the direct question  into  a  survey  question
that involves his emotions and gives you his reaction.

The examples above could translate as follows:

I     Do you think that increased efficiency in management would bring
about a more desirable organization?

2.    Would it be more pleasant working within such a framework?

3.    Have you envisioned improvements that would occur in Lower Slobovia
if Scientology were more widely used?

Now you pretest  the  survey  mentally,  paying  attention  to  diction  and
comprehension, rephrasing to ensure adequate  communication  without  losing
any of the sense of your question, per the art formula.

The surveyor contacts the people to be  surveyed,  asks  his  questions  and
makes notes of the answers given; he also makes sure he notes the  reaction.
He should write down the tone level of the reaction  to  each  question.  He
doesn't handle anything-just the question,  recording  the  answer  and  the
reaction.

Tabulation of the results gives you a majority of reactions on one tone
level.

You can now design your PR campaign on a tone level half or one notch  above
that level and be sure to obtain wide agreement, by the rules  contained  in
Science of Survival.

Thus the barrier of human emotion and reaction is removed.

The duty and function of PR is to remove the barrier of  human  emotion  and
reaction.

You hit at the heart of reaction when you get into human involvement.

You hit at the basic on any production situation when you get into  BE,  DO,
HAVE.

You hit at his emotion when you address his A, R, C.

So you involve him when you get his emotion and thus his reaction.

You can strip off the verbiage in the survey and its tabulation  and  get  a
numerical answer (tone level figure) for each question.

Different publics can be PRed. Finance  publics  for  example,  as  well  as
production  publics-sometimes  finance  people  get  into   conflicts   with
production.

PR is always perfectly okay as long as it is real. If not real, it  acts  as
a stop. You find the R by establishing if there  is  a  situation  to  begin
with, surveying to get the tone level, figuring out  the  majority  response
of the group on each question-and design a PR campaign to handle.

407



There is a 1-2-3 not quite figured out in designing the campaign. But these
are the basic concepts of the science of PR. It covers the field of
manipulation of human emotion.

L. RON HUBBARD

Founder

Revision assisted by

LRH Compilations Bureau

CSI:LRH:RCOMPS:iw.gm   Adopted as official

Copyright@ 1971, 1983  Church policy by the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 28 JULY 1983

Remimeo     (Flag Order 3094 of 16 Dec. 1971,

Div 6 PRO AREA CONTROL reissued as an HCO PL)

PR Series 10-1

PRO AREA CONTROL

PRO (Public Relations Office) Area  (port  and  town  and  country)  Control
(regulate; start, change and stop from cause point) is the basic  action  of
the Port Captain's Office (or Div 6 in an org).

Customs,  immigration,  dockmasters,  police,  officials,  town   officials,
inhabitants, country officials,  country  inhabitants,  and  the  lines  and
activities of all these as they affect the ship or org are  the  subject  of
"PRO area control."

The tech of how  this  is  done  is  found  in  the  book  Effective  Public
Relations, the PR Series PLs, Flag Orders and Flag  Ship  Orders.  It  is  a
technology.

The extent of one's PRO area control can be measured at once by counting  up
the points one is not controlling from the company or org viewpoint and  the
points one IS controlling. This gives you a ratio like three to six or  one-
half.

Example: Immigration and  customs  are  NOT  doing  what  we  want.  Agents,
dockmasters and police are. Thus  we  have  two-thirds  effective  PRO  area
control.

This is poor, showing a one-third failure.

Now the tech to apply is a survey of all five points to  find  out,  let  us
say, what they want one to be, what they want one to do, and what they  want
to have from one. (See FEBC Tape on PR.)

Then one surveys further to find out what problem they are trying  to  solve
by having us be, do, have these things.

This puts us at cause  because  we  can  now  handle  their  misinformation,
reassure their suspicions and generally increase ARC.

A project to get all required points now known in and followed would now  be
done and executed.

Result - PRO area control.

L. RON HUBBARD

Founder

CSI:LRH:iw.gm    Adopted as official

      Church policy by the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

408



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 15 JUNE 1972R

Remimeo     REVISED 24 JANUARY 1983

(Cancels BPL 15 June 72, PR Series 11, PR AREA CONTROL  -  THREE  GRADES  OF
PR, which was the wrong issue type. This issue is from an LRH conference.)

PR Series I I R

                               PR AREA CONTROL

                             THREE GRADES OF PR

These are the three grades of PR:

Perfect PR: GOOD WORKS WELL PUBLICIZED.

Inadequate PR: GOOD WORKS WHICH SPEAK FOR THEMSELVES.

Enemy PR: BAD WORKS FALSELY PUBLICIZED.

L. RON HUBBARD

Founder

Extracted from

LRH conference notes by

Diana Hubbard

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:sk.gm Copyright@ 1972, 1983

409



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 5 OCTOBER 1971

Remimeo Gdn Office

PR Series 12

PROPAGANDA BY REDEFINITION OF WORDS

A long-term propaganda technique used by socialists  (Communists  and  Nazis
alike) is of interest to  PR  practitioners.  I  know  of  no  place  it  is
mentioned  in  PR  literature.  But  the  data  had  verbal  circulation  in
intelligence circles and is in constant current use.

The trick is-WORDS ARE REDEFINED TO MEAN SOMETHING ELSE TO THE ADVANTAGE  OF
THE PROPAGANDIST.

A prime example is the word CAPITALIST. Once it meant  "one  who  makes  his
income from the interest of loaning money to  others."  That  is  still  the
definition  in  economics.  Through  propaganda  redefinition  a  capitalist
became a person of wealth who invested in business  (making  him  an  owner,
not a banker) and currently is someone who exploits others,  urges  war  and
stamps on workers! In short, the word is changing in meaning by the  efforts
of those who are trying to own everything in the country under the guise  of
being  the  workers'  friend.  Totalitarian  socialism  must  eradicate  the
private owner in order to  grab  the  property  for  themselves.  Hence,  an
intense concentration on redefining the word "capitalist" and "capitalism."

Many instances of this exist. They are not "natural"  changes  in  language.
They are propaganda changes, carefully planned and campaigned  in  order  to
obtain a public-opinion advantage for the group doing the propaganda.

Given enough repetition of the redefinition, public opinion can  be  altered
by altering the meaning of a word.

The technique is good or bad depending on  the  ultimate  objective  of  the
propagandist.

"Psychiatry" and "psychiatrist" are easily redefined to mean "an  antisocial
enemy of the  people."  This  takes  the  kill-crazy  psychiatrist  off  the
preferred list of professions. This is a good use of the technique as for  a
century the psychiatrist has been setting an all-time record for  inhumanity
to Man.

The redefinition of words is done  by  associating  different  emotions  and
symbols with the word than were intended.

The American Medical Association and the  National  Association  for  Mental
Health  in  England  and  South  Africa  and  the   "British   Psychological
Association"  in  Australia  have  been  working  very  hard   to   redefine
Scientology in the public mind.

Two  things  occur  because  of  this-the  Scientologists   are   redefining
"doctor," "psychiatry" and  "psychology"  to  mean  "undesirable  antisocial
elements" and are trying to stabilize the actual meaning of "Scientology."

The AMA has even  gotten  US  dictionaries  to  redefine  "Dianetics"  as  a
"pseudoscience from science fiction."

Fortunately the public does not respect and is not responding to mass news
media.

410



Mass news media believes it steers public opinion, but in  actual  fact  can
get a reverse effect.

"The capitalistic AMA is seeking to deny the  people  the  benefits  of  new
discoveries such  as  Scientology  because  it  would  eradicate  the  great
profits the AMA makes from  the  psychosomatic  illnesses  of  the  people,"
would be a statement reversing the reversal of meaning.  One  has  to  find,
pinpoint and denounce the propagandists to  make  headway  against  such  an
effort of redefinition. One brands the propagandist and blows the effort  to
redefine, using a steady, standard PR campaign to do so.

One can also use redefinition by exposing the effort to redefine.

A case in point is the word "psychology."

Webster's International Dictionary  of  the  English  Language-1829  defines
"Psychology: A discourse or treatise on the human soul; the doctrine of  the
nature and properties of the soul."

Webster's High School Dictionary-1892 "Psychology: The powers  and  function
of the soul."

Merriam  Webster's  3rd  International  Dictionary-1961   "Psychology:   the
science of mind  or  mental  phenomena  or  activities;  the  study  of  the
biological organism (as man) and the physical and social environment."

Somewhere along the way, Man lost his soul!

We pinpoint when and we find Professor Wundt, 1879, being urged by  Bismarck
at the period of Germany's greatest militarism, trying to get  a  philosophy
that will get his soldiers to kill men.  And  we  find  Hegel,  the  "great"
German philosopher, the idol  of  supersocialists,  stressing  that  WAR  is
VITAL to the mental health of people.

Out of this we can redefine modern psychology as a  German  military  system
used to  condition  men  for  war  and  subsidized  in  American  and  other
universities at the time the government was having trouble with  the  draft.
A reasonable discourse on why "they" had to push psychology would of  course
be a way of redefining an already redefined word, "psychology."

The way to redefine a word is to get the new definition  repeated  as  often
as possible.

Thus it  is  necessary  to  redefine  medicine,  psychiatry  and  psychology
downward and define Dianetics and Scientology upwards.

This, so far as words  are  concerned,  is  the  public-opinion  battle  for
belief in your definitions, and not those of the opposition.

A consistent, repeated effort is the key to any success with this  technique
of propaganda.

One must know how to do it.

L. RON HUBBARD

Founder

LRH:mes.rd.gm

411



[Note: The following issues were not written  and are therefore not
included in this volume.

PR Series 13

BPL 5 Dec. 1971, PR Series 13, HOW TO DO A PR SURVEY has been canceled and
replaced by Scientology Policy Directive 66, PR Series 13, HOW TO DO A PR
SURVEY, dated 27 Dec. 1982.

PR Series 14R

BPL 7 Jan. 1972R, PR Series 14R, CREATING SURVEY QUESTIONS.

PR Series 15R

BPL 25 Jan. 1972R, PR Series 15R, POPULATION SURVEYS.

PR Series 15R-1

BPL 25 Jan. 1972R-1, PR Series 15R-1, AMEND POPULATION SURVEYS.

PR Series 16RA

BPL 13 July 1972R, PR Series 16R, SURVEY BUTTONS AND PROMO, has been
canceled and replaced by Scientology Policy Directive 26, dated 23 Sept.
1982, PR Series 16RA, SURVEY BUTTONS AND PROMO which revises portions of
the text of the BPL.]

412



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 AUGUST 1972 REVISED

Remirneo    REVISED 9 AUGUST 1972

(Revisions in this type style)

PR Series 17R

PR AND CAUSATION

Public relations is causative. To be effective it must cause something.

PR is essentially a communications subject  and  follows  the  communication
formula:

SCIENTOLOGY AXIOM 28

AXIOM 28. COMMUNICATION IS THE CONSIDERATION  AND  ACTION  OF  IMPELLING  AN
IMPULSE OR PARTICLE FROM SOURCE-POINT ACROSS A  DISTANCE  TO  RECEIPT-POINT,
WITH  THE  INTENTION  OF  BRINGING  INTO  BEING  AT  THE   RECEIPT-POINT   A
DUPLICATION AND UNDERSTANDING OF THAT WHICH EMANATED FROM THE SOURCE-POINT.

The formula of Communication is Cause,  Distance,  Effect,  with  Intention,
Attention and Duplication WITH UNDERSTANDING.

The  component  parts  of  Communication   are   Consideration,   Intention,
Attention,   Cause,   Source-point,   Distance,    Effect,    Receipt-point,
Duplication,  Understanding,  the  Velocity  of  the  impulse  or  particle,
Nothingness or  Somethingness.  A  noncommunication  consists  of  Barriers.
Barriers consist of Space, Interpositions (such  as  walls  and  screens  of
fast-moving particles), and Time. A communication, by definition,  does  not
need to be two-way.  When  a  communication  is  returned,  the  formula  is
repeated, with the receipt-point now becoming a source-point and the  former
source-point now becoming a receipt-point.*

SIGNIFICANCE

Public relations deals mainly in significances.

It uses those channels of communication which convey thought. Some of  these
channels are the spoken word, word  of  mouth,  TV,  radio,  cinema,  tapes,
pictures, symbols, designs, colors,  the  written  word  as  represented  in
books, signs, advertisements, pamphlets, handouts,  newspapers  and  various
combinations. Any channel which conveys thought overtly  or  covertly  is  a
legitimate channel for public relations use.

PERSUASION

The object of PR is persuasion to think, either newly or differently  or  to
keep on thinking the same way.

Therefore, coercion to think in the way required is done  by  varying  ideas
persuasively.

INTELLIGENCE

When coercion takes the form of blackmail or threat, PR is no longer PR  but
has entered the field of intelligence.

413



VIOLENCE

When the persuasion is attempted by threat of mass violence, it has  entered
the field of war.

"WHITE" PR

When PR is used for the improvement of things,  ideals,  conditions  or  any
promotion of pro-survival factors, it could be called "white PR."

BLACK PR

When PR is used for the destruction of ideals or institutions or  repute  of
persons, it is called, traditionally, black PR.

CAUSATION

Thus it can be seen that the person undertaking PR must be causative. He  is
causing an effect in the field of thought  by  utilizing  the  communication
channels that are open to him or that he can develop.

He can assign as his source authoritative persons. He can use  authoritative
channels. Or he can make his apparent  sources  bear  more  weight.  Use  of
opinion leaders is a routine mechanism.

He can in many  ways,  not  the  least  of  which  is  logic,  persuade  the
acceptance and continuance of thoughts he causes to emanate.

KNOWNNESS

In dealing with products or persons in white PR, the PR person  achieves  as
his first action knownness. This is done by  simply  repeating  continuously
on as many channels as possible the identity of what he is representing.

To this basic significance he  must  attach  associated  significances  that
cause the acceptance and understanding of the basic  significance  which  is
being PRed.

For this  he  continues  to  use  suitable  channels  and  develops  further
channels for his use.

MESSAGE

The thought or significance which the PR person is attempting to  convey  is
called "the message."

The PR person must clearly understand  this  message  himself  in  order  to
cause its communication in the many varied ways required.

PUBLICS

The receipt points of the message are called "publics."

There are many different publics. These  are  types  or  groups  who  accept
differently from other types or groups.

It is the task of the PR person to study  and  separate  out  the  different
publics and know what they want or will accept.

It is then his task to couch variations of his message in  terms  and  forms
which will be accepted by a particular public.

414



Unless he knows what to offer each different public, his  message  will  not
be received.

The common tool of the PR in getting to know various publics is SURVEYS.  He
has to know the reality, tone and acceptance level  of  each  public  he  is
trying to reach. And use it for that exact public and no other.

IMAGINATION

As a PR person IS operating at the CAUSE point, he must be able to IMAGINE.

In other words he has to be able to think creatively and create images.

Without this ability he cannot conceive of various forms of his  message  or
conceive of his publics.

If he is a type who simply records or writes down  only  what  he  sees,  he
will not be able to master PR. If he can imagine, he will master PR.

IDEALIZATION

White PR is engaged in IDEALIZATION at all times to a greater or lesser
degree.

The better side of life or persons or dreams or hopes is the subject of
white PR.

This is true even when the truth of the message is  a  very  high  level  of
betterment or stature. Here the imagination is  used  to  bring  the  public
chosen into a greater awareness of the ideal.

DEGRADATION

Black PR also uses imagination in order to degrade or  vilify  or  discredit
an existing or fancied image.

MIDDLE GROUND

Common, ordinary,  dull  statement  of  the  is-ness  of  things  is  hardly
classifiable as PR. It is communication of a sort but it is not  PR  because
it is only attempting to inform; it is not attempting to persuade.

TRUTH

Too glowing an idealization can be punctured when it is a lie.

Too vicious degradation can be exploded when it is a lie.

The only safe ground is to idealize what is already true  and  when  engaged
in black PR to degrade what is already bad.

PERSONALITY

The personality of the PR man tends to determine what kind of PR he will  do
(or not do).

But whether handling white PR or black, the successful PR man or woman  must
be causative, imaginative, energetic and capable of  a  lot  of  fast,  hard
work.

The middle-grounders, who, neither bright nor sour,  live  a  dull  monotone
and see only what they see, do not make PR people.

Taking or choosing photographs or programs, the true  PR  personality  moves
things, directs things, combines things until he gets the  effect  he  wants
regardless of

415



work. Then he lets it roll. For black PR he will twist things around and
put out lights and tear cloth and move garbage until he gets a suitable
awfulness. And then lets it roll.

The middle-grounder just records or takes what's there and lets it go on-
which is not PR.

His, however, is not a hopeless case. All he has to do is decide to be
causative and capable of PR actions. And then do them with a will!

SCENES

The PR deals in three scenes.

The EXISTING SCENE is what is really there.

In white PR the idealized scene is the way he wants the scene to be  praised
by a public.

In black PR the degraded  scene  is  the  way  he  wants  the  scene  to  be
condemned by a public.

He can actually raise a scene  by  idealizing  it  or  degrade  a  scene  by
condemning it. At times he condemns the bad to idealize the good.

He must know all three scenes whatever he is doing with  PR.  He  must  have
the scene he wants clearly in view and project it so that it is accepted.

He is lucky when he has a near-ideal scene to idealize  or  a  near-degraded
scene to degrade as then he closely approaches the  existing  scene  and  is
dealing in truth with only changes in emphasis.

SPEED

Real PR has to move fast. The moment and timeliness of an action is so
swiftly gone in PR that great speed is required in spotting, developing and
executing an action.

Whether pushing for new ideals or social reform, a PR has to MOVE FAST.

Because it is all a world of thought anyway, the structures put up by PR,
the campaigns developed, the situations seen and handled all approximate
thought velocity rather than the physical universe.

The time it takes to get something done must not continue beyond the need
of the message. If it does, PR has failed.

PR is always seizing the moment and getting in the message. And the moment
has a habit of passing.

Thus, speed in PR is essential.

PR could be called the busiest profession.

The speed of a PR determines how many times he can get his subject known
and thought about and wanted or approved or disapproved.

This is what really measures success in PR: number of times.

Thus those wanting a quiet life should take up something else.

But for excitement, PR has all the pluspoints whether white or black.

416



The world is a PR world today.

And PR is a great and useful subject.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

*[Note: Scientology Axiom 28 has since been amended in  HCOB  5  Apr.  1973R
(revised 24 Sept. 1980), AXIOM 28 AMENDED. Following is  the  text  of  that
HCOB with revisions shown in a different type style.

"COMMUNICATION IS THE CONSIDERATION AND ACTION OF IMPELLING  AN  IMPULSE  OR
PARTICLE FROM SOURCE-POINT ACROSS A  DISTANCE  TO  RECEIPT-POINT,  WITH  THE
INTENTION OF BRINGING INTO BEING AT  THE  RECEIPT-POINT  A  DUPLICATION  AND
UNDERSTANDING OF THAT WHICH EMANATED FROM THE SOURCE-POINT.

"The formula of Communication is Cause, Distance,  Effect,  with  Intention,
Attention and Duplication WITH UNDERSTANDING.

7he component parts of the full Communication cycle are

"Observation, Confront, Consideration, Intention, Attention, Cause,  Source-
point, Particle or Impulse or Message,  Distance,  Estimation  of  Distance,
Control (Start- Change- Continue- Stop), Direction,  Time  and  Timing,  the
Velocity of the impulse or particle or message, Vblume,  Clarity,  Interest,
Impingement, Effect, Receipt-point,  Duplication,  Answer,  Acknowledgement,
Understanding, Nothingness or Somethingness.

"A  ~communication  consists  of  Barriers.  Barriers  consist   of   Space,
Interpositions (such as walls and screens  of  fast-moving  particles),  and
Time. A communication, by definition, does not need to be two-way.

"When a communication  is  returned,  the  formula  is  repeated,  with  the
receipt-point now becoming a source-point and the  former  source-point  now
becoming a receipt-point.-L. Ron Hubbard"]

417



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 21 NOVEMBER 1972

Remimeo     Issue I

All PR Packs

PR Series 18

HOW TO HANDLE BLACK PROPAGANDA

                            RUMORS AND WHISPERING

                                  CAMPAIGNS

"Black propaganda" (black = bad or  derogatory,  propaganda  =  pushing  out
statements or ideas) is the  term  used  to  destroy  reputation  or  public
belief in persons, companies or nations.

It is a common tool of agencies who are seeking to destroy real  or  fancied
enemies or seek dominance in some field.

The technique seeks to bring a reputation so low that  the  person,  company
or nation is denied any rights whatever by "general agreement." It  is  then
possible to destroy the person, company or nation with  a  minor  attack  if
the black propaganda itself has not already accomplished this.

Vicious and lying gossip by old women was the earlier form  of  this  tactic
and was so bad that some areas put them in public  stocks  (neck  yokes)  or
drove them out of town.

In modern times there is no such check  on  black  propaganda.  Difficulties
and costs of libel and slander suits, abuse of press privilege,  lay  anyone
open to such a campaign.

All one needs is an enemy. And there are few men in history  who  have  been
without enemies.

There are random individuals in the  society  who  do  not  understand  very
much. This is expressed as a sort of malicious glee about things. Such  pass
on slanderous rumors very easily.  In  an  illiterate  society  such  people
abound. Since they cannot read, the bulk of knowledge  is  denied  to  them.
Since they do not know very many words, much of what is said to them is  not
understood.

This is not isolated to the illiterate only.

What they do not understand they substitute for with imaginary things.

Thus such persons not only listen to slander but also corrupt and twist
even it.

Thus a rumor can go through a society that has no basis in truth.

When numbers of such  rumors  exist  and  are  persistent,  one  suspects  a
"whispering campaign." This is not because people whisper these  things  but
because like an evil wind it seems to have no source.

Black propaganda makes use of such a willingness  to  pass  on  and  amplify
falsehoods.

Much black propaganda is of  course  more  bold  and  appears  blatantly  in
irresponsible (or covertly controlled) newspapers and radio and television.

418



But even after a bad  press  story  has  appeared  or  a  bad  radio  or  TV
broadcast has been given, the  "whispering  campaign"  is  counted  upon  by
black propagandists to carry the slander through the society.

Thus any person, any being, is at risk.

No person, company or nation has totally clean hands. That is  left  to  the
saints. In childhood one stole a few apples, broke a window or  two,  dented
a fender, went joy-riding in a "borrowed" vehicle or took pennies  or  candy
bars that weren't his own.

Childhood is quite lawless and the teenage period is often a revolt  against
the closer and closer fitting straightjacket  of  "proper  social  conduct."
One marries the wrong spouse or goes astray with another in some  incautious
moment,  or  commits  various  large  and  small  sins  of   which   society
disapproves.

Any of these things tend to make one vulnerable to attack, upon his past  or
repute.

A person comes to fear bad things being said about him. In  the  face  of  a
whispering campaign, real or imagined,  one  tends  to  withdraw,  tends  to
become less active and reach less.

This is equally true of companies and even nations.

Thus, unless one knows how to handle such an attack,  one  can  in  fact  be
made quite miserable and ill.

THE ATTACKER

The world is full of madmen.

The basic characteristic of extreme madness is perpetual attack, attacks  on
anything, attacks on persons or things which contain no menace.

Extreme, not petty, crime is at the root of such an impulse.

The attacker has an evil purpose in life. He is a thing of death, not  life.
And his harvest is a death harvest.

Such a person feels he cannot be safe unless everything else is dead.

His evil purpose takes many forms and expressions. The end  product  is  the
same-death.

Where an attacker has gone too  far  he  is  himself  then  attacked.  Long,
bitter quarrels and national wars are alike  the  to  and  fro  exchange  of
violence.

Where an attacker lacks the physical means of destroying  others  and  where
his own purpose would fail if disclosed, the attacks become covert.

He uses word of mouth, press media, any communication channel  to  spit  his
venom. He hides himself as the source;  he  makes  the  verbal  attack  seem
logical or real or proven.

He counts on the utterances being picked up or distorted and  passed  on  by
the more base people in the society.

This is black propaganda. It is  intended  to  reduce  a  real  or  imagined
enemy, hurt his income and deny him friends and support.

Companies or associations do  this  to  competitors.  The  American  Medical
Association maintains its multibillion  dollar  monopoly  over  sickness  by
continuing a long, well-financed black propaganda  campaign  against  anyone
it thinks might threaten their income. The  head  of  their  "Department  of
Investigation" (as they call their black propaganda  department)  once  said
they just kept it up and kept it up against any rival

419



and one day WHAM! They use press releases,  their  own  members,  paid  ads,
displays, government connections  and  speakers,  any  channel,  to  release
endless streams of imaginary tales against any imaginary rival.  While  this
does bring them government support it has brought them deep hatred not  only
from rivals but the public at large.

They get back what they put  out.  They  were  once  wealthy.  They  are  no
longer. Their members dislike them and increasingly doctors belong  only  to
state medical societies, not the AMA. The individual doctor most  often  has
good public relations. His main society benefits from this and  betrays  it.
One day, no AMA. WHAM!

So black propaganda is not something one lightly instigates. For it  recoils
on the person who uses it.

Let us see how it recoils.

Too much venom put out stains one with venom.

Too much black propaganda gets attacks in return.

Black propaganda is essentially a fabric of lies. The  AMA  simply  imagines
stories to put out or have put out.

Sooner or later such stories are found not to be true. ONE false  story  can
destroy the credit of the teller. Now who listens?

Thus a black propaganda campaign  is  vulnerable.  The  attacker  sooner  or
later is attacked-often by many.

But those who have to counter such a campaign need the technology of how  it
is handled.

ANY NEWS

There is a natural law at work that unfortunately favors black propaganda.

WHERE THERE IS NO DATA AVAILABLE PEOPLE WILL INVENT IT.

This is the Law of the Omitted Data.

A vacuum tends to fill itself. Old philosophers said that "nature  abhors  a
vacuum." Actually  the  surrounding  pressure  flows  into  an  area  of  no
pressure.

It is this way with a person, company or nation.

Hit by lies the person tends to withdraw. This already tends to pull things
in.

The person does not then wish to put out data. He becomes to some  degree  a
mystery.

To fill that mystery people will invent data.

This is true of persons, companies or nations.

This is where public relations is a necessity.

Essentially public relations is the art of making good works well known.

It is a fatal error to think good works speak for themselves. They  do  not.
They must be publicized.

Essentially this is what public relations is. And this is why it is-to  fill
that vacuum of omitted data.

In  the  midst  of  a  black  propaganda  campaign  one  is  denied   normal
communication channels. The press media along which the  campaign  is  being
conducted will not

420



run favorable comment. One is mad if he thinks it  will  as  it  is  serving
other masters that mean to destroy the repute of the target.

"Authoritative" utterances push plain truth out of sight.

Thus public relations people have to be  very  expert  in  their  technology
when they confront black propaganda.

THE TECH

When  one  is  not  fighting  a  battle  against  black  propaganda,  public
relations is easy.

One hires a reporter who gets to work thinking  up  ideas  and  turning  out
releases. That's why reporters are often  thought  of  as  public  relations
people which they are not.

In the face of a black  propaganda  campaign,  such  releases  are  twisted,
refused and that is the end of it.

There is far more to the art than this.

These are some of the rules that apply:

1.    Fill the vacuum of omitted data with factual data.

2.    Prove all false utterances heard are lies.

3.    Discredit every rumor encountered.

4.    Handle the interest level with any utterance.

5.    Carefully study out the scene until the exact source is located.

6.    Use the knowledge of source to impede or destroy the source of black
propaganda by noncriminal means.

7.    Continue to fill the vacuum of no data with good data using any
channels available.

Each one of these points could well take a book. But understanding them  and
using one's initiative, one can fill in a lot of the tech himself.

The variations of each one are endless.

APPLICATION

1. Fill the vacuum.

First of all, cease to withdraw. It is proven conclusively  that  in  public
relations handling of  black  propaganda,  only  outflow  pays  off.  Saying
nothing may be noble in a character but it is  fatal  in  public  relations.
Yet even "experts" advise it (when they are doing their clients in).

Blunt denial is crude and can be used against one as a sort of
confirmation.

You don't have to announce or spread a flap and never should. PR  men  often
make the flap.

But don't interpret this as "silence is necessary." Get in a safe place and
speak up.

Use any channel to speak up. But don't seek channels that will corrupt  what
you say in repeating it.

Don't stay on the same subject that you are being attacked on.

An example of speaking up without denying and thus confirming might be

421



STATEMENT. "I read your company went broke last month."

REBUTTAL: "My God. You're telling me! If we hadn't got out of that  contract
we really would have gone broke. There was a hell of  a  row  in  the  board
room. But McLinty won. Scotch to the core. He said, 'I won't sign it!'  Like
to have tore the president's head off. Hell of a row. Seems like we  got  80
million buried somewhere and McLinty is in charge of it and  he  won't  move
an inch on it."

The interrogator's conclusion is  you're  not  broke.  He's  got  data.  The
vacuum is filled with a story  of  board  rows  and  80  million  mysterious
reserves.

2. Disprove false data.

The technique of proving utterances false is called  "DEAD  AGENTING."  It's
in the first book of Chinese espionage. When the  enemy  agent  gives  false
data, those who believed him but now find it  false  kill  him-or  at  least
cease to believe him.

So the PR slang for it is "dead agenting."

This consists of disproving utterly the false statement  with  documents  or
demonstration or display.

One has to have a  kit  (a  collection  of  documents)  or  the  ability  to
demonstrate or something to display.

STATEMENT. "I've been told you are in trouble with income tax people-"

REBUTTAL:  "Here's  a  document  of  fully  paid  taxes  and  a  letter   of
commendation from the tax authorities." Displays same.

Result? Whoever told him that is now dead with him as an accurate informer.

The best way to dead  agent  is  when  the  person  makes  some  disprovable
statement, find WHO to fix his mind on it and then produce the rebuttal.

STATEMENT: "I hear you aren't married to the man you're living with."

REBUTTAL: "WHO told you that?"

STATER: "I forget."

REBUTTER: "Well you remember and I'll show you some proof."

STATER: "Well, it was a man...."

REBUTTER: "WHOT'

STATER: "Joe Schmo."

REBUTTER: "Okay. Here's my marriage certificate. Who's  the  Joe  Schmo  nut
anyway?"

Now it's Joe Schmo who's the mystery. How come he lies? What's in it for
him?

When one hasn't got the document but can get it, one can say, "You  tell  me
the name of whoever said that  and  next  time  I  see  you  I'll  show  you
something very interesting about it."

And be sure to get the document and see him again.

Dead agenting has a billion variations. "It won't fly." Fly  it.  "Place  is
empty." Show him it's full.

The subject matter of dead agenting is PROOF in whatever form.

422



You  only  challenge  statements  you  can  prove  are  false  and  in   any
conversation let the rest slide.

EVERY FRIEND, EVERY OPINION LEADER, EVERY STAFF MEMBER YOU HAVE,  SHOULD  BE
SUPPLIED WITH A DEAD AGENT PACK  CONTAINING  PROOFS  AGAINST  COMMON  RUMORS
(AND BROCHURES AND COACHING TO FILL THE VACUUM),

3. Disprove every rumor.

Proving negatives is almost impossible. "How do I  know  you  aren't  a  CIA
man?" Well, how can one prove that? One can't whip out a KGB badge  as  that
would be just as bad. No one ever wrote a document,  "Bill  Till  is  not  a
member of the CIA." Useless. It is a denial. Who'd believe it?

Sometimes "You don't" works.

But the right answer to a negative (no proof) is a "fill the vacuum."

STATEMENT. "How do I know you're not a CIA man?"

REBUTTAL: "Christ, please don't insult me! The CIA tried to  hire  me  once.
Said they'd shoot me if I didn't join  up.  Cuba  it  was.  I  was  a  sugar
salesman. And Batista was trying to .... etc., etc.  See  this  scar  on  my
leg? (Pulls up pants.) Batista cop shot me because he thought I was CIA.  So
don't bring up painful subjects. (Rubs scar.) (Laugh.)"

But once in a while you can prove a negative. Accused of drug smuggling  one
can show he's a member of the antidrug league. The  counter  in  a  negative
proof must be creditable.

A million million variations exist in dead agenting.

The basis of it is NOT to be the thing rumored and to be able to prove it
fast.

4. Handle the level.

Handling interest level is basically an exercise in  the  Tone  Scale.  (See
Tone Scale Charts of Human Emotion.)

Agreement occurs at the same emotional tone level as the person  making  the
statement. He buys his facts at that level.

To go half a tone up from his level is to command him within his zone of
reality.

STATEMENT. "It's hopeless trying to believe in anyone. I thought you  people
were all right but now I hear you are all hippies. (In a dull apathy.)"

REBUTTAL: "Oh, oh, oh, who could have told you such a sad lie. (Sob.)"

STATER: "Wouldn't be any use to say."

REBUTTER: "(Sob.) But you've got to say. Oh, I feel so awful."

STATER: "Well, he wouldn't care if I told. It's the local minister."

REBUTTER: "(Sob.) (Kleenex.) What an awful thing to  say.  Just  because  we
found him dead drunk and took him home to sleep it off, and he  said  if  we
ever told, he'd say we're hippies."

STATER: "What a sad story. Oh, it's a bad world. How ungrateful."

You go half a tone up. Give him a story, on the subject or not. Like  "(Sob)
That's because we lost our  instruments.  We  once  were  a  band  and  this
nightclub owner wouldn't pay us and we had to sleep in the barn (sob). . .

423



Another one.

STATEMENT: "I hear some bad things about you people. (Covert hostility.)"

REBUTTAL: "(Anger) Who would DARE say such things?"

Etc.

And story type can be matched in tone.

STATEMENT: "I hear those people stole some rowboats."

REBUTTAL: "Who said so?"

STATER: "The dock master's son."

REBUTTAL: "Oh, him. Gets things wrong. Our rowboat was stolen! With all  the
gear in it. We were out fishing and ... say, you don't suppose HE  stole  it
do you? Did you ever hear of him stealing anything? Has he got a record?"

Well, this dock master's son will  now  "have  a  record"  in  the  stater's
tales. As theft is of interest to him, crime will also be.

5. Carefully study out the scene.

The technology of finding who is shooting is very vast. But the core  of  it
is FILING.

All PR is expensive in time or  money  or  both.  And  nowhere  is  it  more
timeconsuming than in locating the source of a black propaganda campaign.

But, to live at all, one has to engage in this search at some time or
other.

One just keeps running down these tales until one locates the source.

There can be more than one apparent source and these  can  be  handled.  But
they will at last lead to the real instigator.

One just keeps locating names and filing them, with dates.

At length one name file is very thick. That's  your  boy-or  association  or
company or nation.

6. Impede or destroy.

As you have been dead agenting as you looked, the attacks get  handled.  The
campaign ebbs and flows but actually lessens.

There are thousands of variations on finding the real WHO.

But essentially it is just looking, dead agenting, filing, looking on and
on.

You are, in this whole period, handling.

Once in a while it happens fast.

Now and then the black propagandist packs up and fades  away  before  he  is
fully spotted. He becomes aware of the counteraction.

The usual action is a counterpropaganda campaign based on truth.

It is a long-to-find and hard-learned fact that people who engage  in  black
propaganda have big bursting crimes to hide.

They do not have little crimes. They have BIG ones.

One's own ability to confront evil may be too low to really grasp the  black
propagandist's crimes or believe they exist.

424



Such people are often SANCTIMONIOUS hypocrites. They  are  usually  arrogant
and will not parley (have conferences with a foe). They appear  so  terribly
sure they are RIGHT that it fairly shakes one's confidence that  they  could
ever do anything wrong.

Thus the black propagandist is not detectable as such  in  many  cases.  The
lordly institution, the lofty society, the glittering country are  far,  far
above such a nasty psychotic trick as  a  studied,  financed,  expertly  run
campaign of vicious lies.

Thus they are believed. Or their servants are believed. And their  campaigns
can be very effective.

But this makes them hard to suspect or detect. And it makes it hard  to  get
anything bad about them believed.

But under all this are real crimes. Not stealing apples or pinching  pennies
as a child. Real crimes like extortion,  blackmail,  embezzlement  and  mass
murder are sitting in their closets. Believe that.  For  in  the  course  of
your counterattack you may despair of ever finding anything.

But you will find it.

A lofty railroad-but  secretly  murdering  anyone  who  opposed  their  land
grabs. A minister of high renown-but a secret member of  and  taking  orders
from a murder mob. The biggest and "most  respected"  union  leader  in  the
country-but a numbered agent of a foreign intelligence service dedicated  to
destroying the country's fuel capacity and defeating its president!

And each of these engaged in and never was  suspected  of  black  propaganda
campaigns that ruined many lives.

Bad guys tend to get rid of good guys.  Sometimes  for  what  they  consider
good reasons, sometimes for imagined reasons, sometimes because the bad  guy
just can't stand a decent, bright person.

But there is no real truth in the bad guys always cause their own  downfall.
It may come, but it may be far too late to save the reputation or even  life
of the person being attacked by hidden campaigns.

Therefore it is vital to handle the matter. One can't just hope it will  all
go away. It won't. It will get disastrous to  the  degree  that  it  is  not
handled.

The less handling, the more disastrous.

There is another hard-won truth.

ONLY COUNTERATTACK HANDLES.

The fact is that just going on PRing oneself does not remove the effects  of
the campaign, and all too soon one no longer has  communication  lines  left
in order to handle anything since reputation is so  destroyed  no  one  will
listen and no lines remain.

One has to fill the vacuum  of  the  counterpropagandist's  evil  deeds.  As
these are never exposed to view, there is a vacuum there.

Another strange thing is that press will print attacks. Maybe this  will  no
longer be true in some enlightened age. But in this  era,  good  attacks  or
fights between things will get print space.

But press is very far from the only channel  of  communication.  Governments
do believe the press and think it is public opinion. A newspaper  can  be  a
fortress of some black propagandist. But a people often believes  little  it
reads.

There are opinion leaders, there are letters, there is word of mouth.  These
are also channels of communication and really far  more  powerful  than  the
press.

425



There is also friendly press. But a friendly-talking reporter is  often  the
most suspect. He was so nice in the interview, so vicious in his article.

Statements one makes can be curved. "She had a birthday party" becomes  "The
delinquents in her circle gathered yesterday for a sex  orgy  and  pretended
to the police it was a birthday party. No one was jailed."

The brand of black propaganda is very easy to see in writing twists.

So it takes time and work to reverse an attack because normal channels  have
to be reopened and reversed.

It is done by attacks.

But attacks which are not true earn  suits.  So  one  must  attack  only  on
proven ground.

This requires a lot of hard search.

However, a black propagandist often  has  many  other  enemies.  These  have
sometimes gathered data.

The principles  are  that  when  the  subterminals  are  located,  they  are
investigated and counterattacked. Then further investigation reveals  closer
terminals to  the  propagandist  and  these  are  attacked.  In  short,  one
investigates and attacks.

Always be ready to parley-that is, have a  conference  and  settle  it.  The
arrogance of the black propagandist often forbids this. And  when  it  does,
it means longer and harder work and, if well done, his downfall.

In any event, the attack is a long cycle,  a  complex  cycle  and  often  an
expensive cycle. It consists of investigate and attack.

But remember, one must attack once he has any idea of the  identity  of  the
black propagandist or even his subterminals.

There is no other way out.

Any other course is death.

7. Continue to fill the vacuum.

Continuous good works and effective release of  material  about  one's  good
works is vital especially in a black propaganda war.

One cannot just fight.

You are  in  effect  advertising  the  other  fellow  when  you  expose  him
repeatedly. This gives you a new sort of vacuum. One becomes  known  as  the
fellow or company or nation that attacks _. But who really  is  this  fellow
or company or nation?

Pamphlets, brochures, press releases,  one's  own  newspaper  and  magazine,
one's own contacts with opinion  leaders,  these  and  many  more,  must  be
supplied with A COMPREHENSIBLE IDENTITY OF SELF.

Distributing or using these, one publicizes one's own good works.

And one must also do good  works.  One  can't  just  dedicate  his  life  to
eradicating the enemy, even when that is tempting.

On  the  other  hand,  within  the  dictates  of  safety,  one  cannot  hide
continuously. One must, through his good works  and  actions  at  least,  be
visible.

So a continual, truthful and artful torrent of public relations pieces must
occur.

426



Then one day there is no enemy.

And one's repute is high.

There may be other attacks but now one can handle them as small fires and
not as a whole burning forest.

WHAT IS BLACK PROPAGANDA?

You can see that black propaganda is a covert attack on the reputation of a
person, company or nation, using slander and lies in order to weaken or
destroy.

Defense presupposes that the target is not that bad.

One does not have to be perfect to withstand such an attack, but it helps.

But even if one were perfect it would be no defense. Almost all the saints
in history have been subjected to such attacks. And most of them died of
it.

The answer is PR TECHNOLOGY SKILLFULLY APPLIED.

To be skillful in anything, one has to know it and be experienced in it and
DO it.

As weary a task as it may seem to some, as heartbreaking as it can be, one
still has to fight. And fight with tools and technology and dedication
superior to that of the enemy.

But progressing and getting small gains, small penetrations, small little
skirmishes and battles, one at length comes up to victory after victory and
at last wins the whole war.

One is saved.

L. RON HUBBARD

Founder

LRH:Idm.sb.nt.rd.gm

427



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I APRIL 1982

Remimeo

                            (Cancels and Replaces

                       BPL 12 Jan. 73, Reiss. 29.6.75,

                                same title.)

PR Series 19R

THE SAFE POINT

(In late 1972, the Founder gave a briefing on the subject of PR area
control to CS PR Area Control* and LRH Personal Communicator. This policy
letter is compiled from notes on the briefing.)

R ef.-

HCO PL 21 Nov. 72 1    PR Series 18

      HOW TO HANDLE BLACK PROPAGANDA

Under "Application" of Rule I  (Fill  the  vacuum)  of  PR  Series  18,  the
instruction is given: "Get in a safe place and speak up."

It is necessary of course to have a safe place to get into, from  which  one
can in safety speak up.

One cannot defend himself in a point that has no defenses.

Without some consideration of security in the first place,  any  attempt  at
PR area control is folly.

Thus the safe point takes consideration over active defense.

One can be in the situation of attempting to sell and deliver a  product  or
service and suddenly find it necessary to defend himself in the  same  place
from attack. The attack can make the point dangerous to  such  a  degree  it
becomes impossible to deliver from. One might even be forced to act  from  a
totally hidden point.

Thus the safe point takes consideration over active defense but  takes  even
greater consideration over delivery operations.

Where possible, PR area control makes the  point  safe  for  the  production
activity, before any production occurs.

Sometimes funds are  lacking  to  expand  over  a  long  period  on  a  non-
incomeproducing PR area control operation. In this case one is  forced  into
production to make money.

Whenever it is necessary to go into delivery operations  without  the  prior
step of making the safe point, a special unit must be  set  up  and  run  at
full steam to make a safe point and gain viable PR  area  control  over  all
publics in the area.

428



PREPARING THE SAFE POINT

You cannot operate without a  base  to  operate  from.  You  cannot  deliver
without somewhere to deliver it. You cannot sell what you cannot deliver.

The optimum action is to send a PR area control team to the  area  you  want
to operate in, and have it establish PR area control first.

A new group or company should be established first as a safe point and  then
as an operating point.

There is a formula here just a hair lower than Non-Existence: "Find a  point
from which to put out a comm line."

The PR area control action in a new area can go so far as to create  in  the
area a whole past and future track for the activity  being  established.  It
can make it sound old-established,  stable,  reliable,  expert,  productive,
and with continuing expansion before it-when the delivery  activity  arrives
and gets into operation.

Everything that accompanies an actual delivering unit is put  there.  Except
the delivery. With established PR area control, delivery is put in,  without
a ripple, and it is all perfectly natural and acceptable.

BASIC ESSENTIALS

The most important action to undertake when going about making a safe  point
is to carefully and painstakingly find out who exactly are the top  dogs  in
the area in financial  and  political  circles,  and  their  associates  and
connections, and to what each one is hostile.

A handful of allies with impressive sounding titles  and  positions  is  not
enough. Viability depends on having all areas and persons who  could  affect
or influence the operation under PR control. Most important are  the  groups
who survey out to be the key, real powers in an area. These persons  may  or
may not be those who occupy high political or social positions. They may  or
may not be the titular  heads  of  large  economic  concerns.  Research  and
survey alone can determine this.

One must learn carefully his Ps and Qs with regard to these people and  take
care not to step on their toes. Otherwise one can get tromped on  hard,  and
will. This data must be learned and USED.

Without a safe point established as above, it is a waste  of  time  to  rush
into dealings with a government or to promise them anything. It is too  easy
to step on hostile  toes  and  to  arouse  suspicion  of  you  or  make  you
difficult to account for. Build your PR area control on  a  well-researched,
surveyed and solid gradient.

To maintain your safe point when you have  started  delivery,  it  is  vital
that you be able to detect the SP-PTS character on your delivery  lines  and
HANDLE him, be he high or low in station, and get him out of the  road.  One
such person acting  against  you  in  the  midst  of  your  safe  point  can
undermine it totally.

One of the reasons for this is that violations of study tech in  a  person's
education can turn him into a seething mass of  BPC.  This  is  very  easily
stirred up by an SP or PTS, and at the slightest chance he  will  do  so.  A
whole class can explode like a powder keg, and with it the  safety  of  your
delivery point and its whole PR area control.

Thus SP-PTS tech is a basic tool of PR area control for the operating
activity.

Delivery of excellent  results  is  of  course  a  vital  necessity  in  any
activity, no matter  what  the  degree  of  PR  area  control,  once  it  is
established.

429



Follow this procedure to make a safe point and the Rules of PR Series 18 to
make it safer.

But make it safefirst.

L. RON HUBBARD

Founder

Assisted by

LRH Pers Comm

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:KU:bk.gm , 1973, 1975, 1982

*[Note: CS PR Area Control = The post of Commodore's Staff Aide for Public
Relations Area Control]

PR Series 19-1

[Note: PR Series 19-1 is a limited issue and will be found in hats and
training materials to which it applies.]

430



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 FEBRUARY 1974

Remimeo

PR Series 20

THE UNTRAINED PR

An untrained PR will do at least two wrong things:

1.    He will waste events and materials and

2.    He will not only not handle existing

      situations, he will create new ones.

PR is a real technology. Until he studies it, a person may not realize it.

Therefore people who are "in PR" must be called  and  must  sign  themselves
I/T until such time as they have studied the full  approved  text  and  done
the most recent PL full PR checksheet and its practical and  have  had  some
apprenticeship.

Life is rather hard for the trained  PR  who  has  to  work  with  the  very
untrained as he is likely  to  be  kept  busy  correcting  or  creating  new
materials that are then wasted and handling stupid situations  generated  in
the name of PR.

The real pro has a right to insist that anyone on  his  lines  "helping"  or
"assisting" or holding PR posts GET TRAINED. That they put their seat  on  a
student chair and do the course thoroughly,

It is easier to do this than to be worked half to death without  getting  PR
products out of juniors.

This  applies  to  Public  Div  Secretaries,  Port  Captains,  PR  Officers,
photographers, artists, magazine  editors  and  make-up  people  and  anyone
directly concerned with PR.

GET TRAINED!

L. RON HUBBARD

Founder

LRH:ntm.ts.gm

431



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 FEBRUARY 1974

Remimeo

PR Series 21

WASTED PLANNING

It too often occurs in PR that the planning of several capers (PR events  or
actions) comes to nothing.

This can be the planning of four hard news (events rather  than  statements)
stories or six future issues of a magazine.

The trained PR outlines it all quite plainly.

Then the debacle.

In execution by untrained juniors, the four hard  news  stories  become  one
and the one is presented badly in the wrong place. The six  magazine  issues
become one handout.

Why?

Well, it's Data Series No. 1, "The Anatomy of Thought," HCO PL 26 April
1970.

It is also in Book One, Dianetics: The Modern Science of Mental Health: A  =
A = A.

The junior conceives things as identical which are in fact only  similar  or
even very different.

It might not be realized  by  the  trained  PR  that  people  are  sometimes
incapable of differentiating.

To the untrained and aberrated "helper,"  the  capers  are  all  alike  even
though one displays a burning building and another the birth of  twins;  the
magazine layouts were all identical to each other even though  one  was  for
winter complete with Santa Claus and snow and another was  full  of  bathing
beauties and sunburn.

Instead of going purple about it, the right answer is to  point  out  simple
differences to the "helper" so that he spreads out his tendency to  identify
everything with everything.

If you do this well, you will get understanding cooperation in most cases.

L. RON HUBBARD

Founder

LRH:ntm.ts.gm

PR Series 22

[Note: PR Series 22 is a limited issue and will be found in hats and
training materials to which it applies.]

432



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 MARCH 1974

Remimeo

PR Series 23

THE PRESS BOOK

A professional PR who has a "client" always at  once  constructs  a  display
book. And he keeps it added to and up-to-date.

IT IS VITAL THAT THIS BOOK BE CREATED AT ONCE.

The book is used to get interviews, bookings, press.

Usually it is a loose-leaf big fancy clipping scrapbook.

Such a book begins with an acceptable story of the group creation  which  is
factual and contains itself PR.

There follow press cuttings including photos as in  the  press.  Such  press
sections go on and on in the book as new  press  occurs  so  other  data  is
sandwiched in between expanses of press.

Radio and TV appointments or plays are noted  or  clipped  from  papers  and
posted in.

Display photos of the group exist in different locations.

Group members  are  individually  photographed  and  a  short  PR  biography
(quotable gimmicks)  is  included  for  each  member.  This  is  material  a
reporter or interviewer would pick up and use for human interest.

Awards, plaques, are photographed well and included.

What they do is described.

In the case of a music group, a cassette player and a sample tape  are  part
of the kit-a piece that shows audience participation.

Several full packs of photos, duplication quality, one  of  each  displayed,
are included in the kit. This is so no one tears photos from the book.

Real handbills and posters are posted in as they occur.

Such a book is  a  responsibility  of  any  professional  PR.  A  pro  never
operates without one. He also keeps  it  up-to-date  as  a  routine  action,
putting new photos and clippings in it as a day-to-day part of his admin.

The book is not created in two or three months. It is knocked together  fast
and then gradually built fully.

It is of tremendous use and gets bookings and interviews with speed.

That it is fat is a big recommendation in itself.

Usually it and its packs are kept in an attach6 case big enough to hold the
works.

433



No professional PR or booking agent or advance man is ever without a
display book telling of and selling his client.

A group's popularity and usefulness depend as much upon doing the usual
steps (such as a display book) of PR and booking as they do upon the
performance itself.

PR is defined as GOOD WORKS WELL PUBLICIZED.

The first public one contacts is usually the person in charge of programs.

This book is what you PR him with. If you win there, you are in and have a
comm line to the broader public.

Thus a PR or booking man without a good effective display book is liable to
miss selling the person who has the key to the door!

So be sure to make and have such a book!

L. RON HUBBARD

Founder

LRH:ams.ts.gm Copyright C) 1974

PR Series 24

[Note: PR Series 24 is a limited issue and will be found in hats and
training materials to which it applies.]

434



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 27 OCTOBER 1974

Remimeo

PR Series 25

SAFE GROUND

1.    NEVER SAY OR PUBLISH ANYTHING YOU CANNOT PROVE OR DOCUMENT.

2.    ALWAYS DOCUMENT THE TRUTH TO OPPOSE LIES

These two rules are a PR's safe ground.

Violating them can bring on catastrophe!

About the most trouble that can be caused by violations of rule  one  is  to
tell several versions of a tale that then by their own  contradiction  bring
about the collapse of creditability.

On the second rule, letting any lie remain disproven can be a fatal  course.
Dead agenting-as this is called-is a VITAL PR function.

THE ART OF PR

The art of PR consists of how the truth is told and how the lie is
disproven.

PR is not a dry-as-dust activity. One could follow the above two rules in  a
variety of moods.

Truth can be revealed in an enhancing way, a dull way, a derogatory way.

Lies can be disproven spectacularly or dully or in a derogatory fashion.

The imagination of the good PR is wholly exercised only in how he  is  doing
rules one and two.

A very bad and dangerous PR  exercises  his  imagination  in  inventing  the
"truth" and the disproof of lies. In this way  he  erects  a  structure  any
baby can topple over.

There is NO limit to the amount of imagination a PR  can  use  PROVIDING  he
does not violate the above two rules.

If this seems a contradiction, let us examine examples.

Statement about the PR's subject by PR: "He drives." "He is a good  driver."
66 He is a fantastic driver." Proof. He wins or has won a  road  rally.  The
imagination of the PR is employed in the mood of his statement  and  in  his
device to prove. Reversely, he has the proof already, so  he  can  make  the
statement.

A foolish PR, in violation of  rule  one,  says:  "He  is  a  world-champion
driver." The fact is, he had his license revoked for bad  eyesight!  What  a
picnic an enemy could have with that!

A lie example would be an enemy statement: "He can't drive."  The  DA  would
be showing his 20-year membership in the AAA and a safe driving award.

435



A violation of rule two would be a PR hearing an enemy statement  "He  can't
drive" and letting it go by! Or, hearing "He is a reckless driver,"  showing
a news clipping of his subject winning a speed rally!

Imagination plays its role in overall  image  planning  and  then  selecting
what can be proven easily and then building it up.

Also imagination plays its role in rule two  in  leading  a  hostile  person
into uttering lies which can be wiped out by the DA book  in  the  PR's  lap
simply by opening it. And  then  opening  another  display  that  shows  the
hostile person had lost seven suits for libel and  slander  he  has  uttered
against others!

There are other ways of applying imagination to rule two. One  would  be  to
let half a dozen hostile statements one cannot easily disprove pass (in  one
debate or article) and leap all over the seventh which can be documented  as
false and then  winding  the  whole  scene  into  a  hurricane  around  that
seventh!

But whatever you do, do NOT violate the two basic rules ever,  for  that  is
the road to PR disaster.

PR does not quite follow (as intelligence work does) the rules  of  warfare.
Deception is NOT a legitimate PR action.

The road to power in PR must be built on a highroad of truth.

L. RON HUBBARD

Founder

LRH:nt.gm

436



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 30 MARCH 1975

Remimeo

PR Series 26

PR AND INFORMATION

PR brings things to the notice of a public.

In order to do that, the PR himself has to notice things.

There is no "ivory tower" in PR.

One has to know what is going on.

To do that a PR has to be on info lines and has to know accurately (not by
gossip, which is a public's action).

In writing a release or furnishing a campaign, a PR has to do his homework.
He can't rely on guesses or faking the data if he is to succeed.

Information, collection of, on any subject is a first-step must in any PR
action.

This includes surveys. But there are other sources of info than surveys.

He notices things and handles.

He finds out the data before he acts.

The PR has to be the person in the know.

L. RON HUBBARD

Founder

LRH:nt.gm

437



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 9 JUNE 1975

PR Series 27

THE ENEMY LINE

When there is a concerted short  or  long-term  campaign  going  on  against
someone or something from a single or multiple  source,  there  has  been  a
black PR agreement as to what to say about that someone or something.

Some worked-out and agreed-upon entheta is concocted.

The enemy's PRs, media outlets and front groups are given  exact  statements
to make.

There is a maxim in PR or advertising that A MESSAGE MUST BE  REPEATED  OVER
AND OVER TO IMPINGE ON A GIVEN PUBLIC.  This  is  found  in  advertising  as
"brand name exposure." In general PR work it is used to get a client's  name
repeated over and over. Even in intelligence the  same  principle  is  used:
they have the same report appear in several places at once.  This  convinces
the opposition of its "truth."

An enemy group  usually  originates  several  carefully  worked-out  entheta
statements. You can always trace  these  as  being  a  planned  campaign  by
someone because the same perverted statements  appear  at  widely  separated
points.

Example: Glutz Biscuits is  monopolizing  the  market.  The  Weevil  Biscuit
Company PRs decide to attack Glutz Biscuits and get more of the  market.  At
a meeting, Weevil's PRs decide upon "Twelve  Glutz  Biscuit  employees  were
hospitalized for rabies." To make press on this they get Gussie Mug  to  get
a job at Glutz, pop some soap in her mouth and get carted off for  a  rabies
test. Gussie's "mother" calls the president of Glutz  and  confesses  Gussie
had scratched another employee. The Glutz president  has  several  employees
checked for rabies. Weevil PRs tip off the  press.  The  result  is  a  tiny
local item "several Glutz employees were tested  for  rabies  after  another
employee was hospitalized." Two-line filler. But Weevil PRs now go to  town.
A citizen's committee angrily condemns Glutz  for  unhygienic  actions.  The
Health Ministry and local city inspectors are called in and  Glutz  packages
are suspended in stores.

All Weevil Biscuit distributors and  salesmen  are  given  the  tip-off  and
clippings. They each are heard to say, "Too bad about Glutz-they had  rabies
develop in their plant and it has been shut down by the Health Ministry."

Glutz PRs now deny that the plant is shut down and say that there  was  only
one case of rabies. The idiots.

Glutz staggers into a ten million dollar loss,

Their error? They FORWARDED AN ENEMY COMMUNICATION LINE.

Glutz could have DAed and should have whenever  the  subject  came  up.  But
never brought it up!

And Glutz PRs should have (a) gotten  Gussie  to  confess  it  was  done  by
Weevil, (b) promptly done a campaign on Weevil,  and  (c)  instructed  their
own network to say (a

438



new arranged line) "Did you hear  about  Weevil  trying  to  buy  out  Glutz
yesterday? What these guys will do for a takeover!"

NEVER FORWARD AN ENEMY CAMPAIGN ON YOUR OWN OR OTHER LINES!

Don't deny rumors for that is what they want you to do.

HAVE A BETTER CAMPAIGN THAN THEY HAVE AND FORWARD IT!

Examples of enemy-planned statements re Scientology:

1. "People who should have professional help go to them!" (Truth  is,  those
who started this  kill  people  with  their  "professional  help.")  Answer:
Expose the source as murderous.

2. "Hubbard is a science fiction writer." (This is not  too  bad  as  people
respect science fiction  writers.  But  it  is  false.  Hubbard  only  wrote
1,000,000 words of science fiction over a short period and wrote  14,000,000
words on other things. They plug "fiction" to  connect  it  to  Scientology.
Subtly clever.) A countercampaign might be (the truth) "Hubbard's  books  on
Dianetics and Scientology sell more copies than any other writer  about  the
mind. Every Psychology course today tries to include Hubbard's work."

3. "Hubbard is not allowed to enter England." (The truth is  that  this  was
rigged while Hubbard was not in England and is based on no offenses  of  any
kind, a purely PR action.) A counteraction: Hubbard is a popular  member  in
a score of English clubs and professional societies."

The enemy line is now very ineffective.  It  has  put  itself  in  the  same
situation as the Weevil Biscuit Company! It is wide open to attack in  every
quarter and it opened the door by opening an attack.

Don't be a Glutz PR.

NEVER FORWARD AN ENEMY CAMPAIGN ON YOUR OWN LINES!

THE ONLY ANSWER TO A CAMPAIGN IS A CAMPAIGN OF YOUR OWN.

L. RON HUBBARD

Founder

LRH:Idv.gm

439



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 23 MARCH 1982

Remirneo

                            (CANCELS AND REPLACES

                              BPL 12 JULY 1976

                          Corr. and Reiss. 20.8.76,

                           same title, as BPL was

                           the wrong issue type.)

PR Series 28R

A REFINED DEFINITION OF PR

                         (Extracted and quoted from

                         LRH Tape 710IC18 SO FEBC-2

                           PR BECOMES A SUBJECT.)

"In the field of PR 'Good Works Well Publicized' is one of the definitions
which they (PR men) give in a textbook on the subject. That's supposed to
be the perfect definition of PR. It couldn't be further from the truth.
EFFECTIVE CAUSE WELL DEMONSTRATED. You see, they need a few little
refinements.

"Then you can make forward progress."

L. RON HUBBARD

Founder

Assisted by

Joann Milan

Compilations Exec Manager

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:JM:bk.gm , 1976, 1982

PR Series 29R

[Note: PR Series 29R is a limited issue and will be found in hats and
training materials to which it applies.]

440



HUBBARD COMMUNICATIONS OFFICE

Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 30 JANUARY 1979

PRs   CORRECTED AND REISSUED 9 FEBRUARY 1979

Marketing Pers   RESTORED 28 JULY 1983

Copywriters

Artists

Designers

Lecturers

Div 6 (Cancels HCO PL 30 Jan. 1979R, revised 16 June

      1980, POSITIONING, PHILOSOPHIC THEORY.

      That issue was illegally revised by another. The

      original LRH version issued on 30 Jan. 1979 was

      reissued 9 Feb. 1979 to correct the address in

      the second paragraph. That original version is

      hereby restored.)

Marketing Series 5

PR Series 30

POSITIONING. PHILOSOPHIC THEORY

Although Madison Avenue has used "POSITIONING" for some years,  it  has  not
fully  understood   the   actual   philosophical   background   that   makes
"POSITIONING" work.

There is an excellent booklet called The Positioning Era  put  out  by  Ries
Capiello Colwell, Inc., 1212 Avenue of the Americas, New York,  N.Y.  10036.
Copies of it are probably  available  from  the  company  or  the  Marketing
Bureau on Flag or Publications Organization US. It is an excellent  booklet.
It does not, however, give the philosophical background which, probably,  is
not generally known. Probably it was never discovered. I had to work it  out
myself.

Buckminster Fuller, an engineer and architect of some renown, says  that  it
is a two-terminal universe. In other words, the universe is built by twos.

In electricity you have heard of two "poles"-the positive and the  negative.
You only get movement or generated energy in  the  presence  of  two  poles.
That is the principle of the electric motor,  why  current  flows  from  one
point to another point and so forth. There are  four  possible  arrangements
of these two poles: they are positivenegative, positive-positive,  negative-
negative and negative-positive.

In the reactive bank a positive and a  negative,  when  occurring  together,
tend to bring about a stuck point in time.  You  sometimes  see  this  in  a
marriage where the husband is jolly and carefree and the  wife  is  sad  and
morose. One wonders why these people would ever stay together. The  fact  of
the case is, due to reactivity of the mind, they can't do anything else.

Despite propaganda that "one should live for oneself  alone,"  the  fact  is
that it is very difficult and most  disappointing  to  do  so.  Life  really
can't be lived on the first dynamic alone. If you don't  believe  it  go  on
out in space 300 miles and sit there for a while, you won't like  it.  You'd
be calling Houston every few minutes.

441



In any event, one could say that life was  at  least  a  two-pole  activity.
Actually, it is not only always just two but certainly it doesn't  go  along
well with just one and goes best with several, ask any popular person.

Fast communication is most easily done by comparisons. When one  asks  "What
is the book like?", he really is not trying  to  get  you  to  describe  the
book. He means that he wants some comparison. He will be happiest  with  the
answer if he is told  that  it  is  like  another  book  with  which  he  is
familiar. It would take you a lot longer and  involve  you  in  a  lot  more
arguments if you  just  tried  to  describe  the  book  to  him  instead  of
comparing.

"What does it taste like?" is satisfactorily answered, "Like  candy."  That,
if it has some shadow of truth and accuracy,  is  a  perfectly  satisfactory
answer to the other person.

So we get a law which is this:

THE UNFAMILIAR IS RAPIDLY INTRODUCED OR COMMUNICATED BY COMPARING  IT  TO  A
FAMILIAR.

Joe knows nothing about practice boxing gloves and there are none  there  to
show him and he will be fairly satisfied if he is given a  familiar  object,
pillows, to compare them to.

Thus, one can achieve a very rapid communication by observing the following

law:

ONE CAN ACHIEVE THE APPARENCY OF FAMILIARITY, EVEN WHEN  THE  PERSON  HE  IS
COMMUNICATING TO HAS NO KNOWL, EDGE OF THE SUBJECT  OF  COMMUNICATION,  WHEN
HE ASSOCIATES IT IN THE MIND OF THE OTHER  WITH  SOMETHING  WITH  WHICH  THE
OTHER IS FAMILIAR.

Positioning takes advantage of a fact that one can compare the thing  he  is
trying to get the other person to understand with desirable  or  undesirable
objects. Desirable objects  are  now  more  commonly  used  in  advertising.
Undesirable objects are more commonly used in propaganda. By comparing  this
unfamiliar thing or the thing he wants to sell to another  desirable  object
or by comparing something he  wants  people  to  detest  to  an  undesirable
thing, he can achieve a rapid communication and comparison.

Further advantage is taken of  the  fact  that  one  can  position  above  a
familiar object, with a familiar object, below a familiar  object,  at,  to,
against and away  from  a  familiar  object.  This  opens  the  door  to  an
opportunity to  establish  an  opinion  of  the  thing  one  is  seeking  to
communicate. You might call it an "instant" opinion.

For example, we know that  an  astronaut  is  a  familiar,  highly  regarded
being. Thus, we position a product above, with, below, at,  to,  against  or
away from an astronaut.

We know that people think angels are good, sweet and kind,  so  we  position
another something above, with, below, at, to, against or away from angels.

We know people loathe psychiatry,  so  we  communicate  something  as  being
loathsome as saying it is below (worse than) psychiatry. We could also  make
people think something was good by saying it  was  against  psychiatry,  bad
because it would  bring  them  to  psychiatry,  or  awful  because  it  used
psychiatrists (like the tax people).

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A common use of positioning in advertising is to take a  product  which,  by
reason of advertising, is familiar to the public and is regarded by them  as
the leader in the field and then  positioning  a  new,  untried,  unfamiliar
product above it, with it, or just below it. Thus the new  product  gains  a
sudden spurt in sales by being compared to the leader.

In fact, in the field of advertising  this  has  been  the  primary  use  of
positioning, probably because no one had carried the idea back  to  a  point
of formulating the actual laws of it  and  thus  broadening  its  use.  They
thought in advertising, evidently, that the  basic  theory  of  it  was  the
"pecking order of hens" which means  that  the  whole  barnyard  is  usually
found to have a top hen and a bottom hen and they peck each  other  in  that
order.

Apparently, from talking to ad guys, they  thought  that  by  putting  their
products in the pecking order  against  the  top  product  they  made  their
product higher or just with or just below  the  top  hen.  That's  what  the
advertising  people   get   for   associating   with   such   "experts"   as
psychologists.

POSITIONING can be seen to have  far,  far  broader  uses  than  "cola"  and
"uncola" ads when you study the above basic PL  data.  The  horizon  becomes
very, very vast  and  all  around  because  with  it  you  can  attain  fast
communication about the unfamiliar and can formulate "instant opinion."

When used in advertising, posters, write-ups, PR, propaganda, or any one  of
many  activities,  forceful  and  effective  positioning  requires   certain
requisites:

1. The selection and identification of the public or person  one  is  trying
to cause to have an instant opinion, desire or repugnance.

2. Work out whether you are trying to do a good or bad relationship  to  the
familiar object you will find  and  what  kind  of  an  opinion,  desire  or
repugnance.

3. Survey that public with questions which do not  even  mention  the  thing
you are eventually going to use the survey for to find  what  they  consider
wonderful, popular, useful, etc., etc., or awful, terrible, etc.,  etc.  You
can survey for attitudes, objects, professions or  anything  else  you  have
chosen that will even dimly compare with something you are going to use  the
survey to push.

4. From the majority answer of this survey, choose  an  object,  profession,
attitude, etc.. etc., that they think is great or awful or whatever.

5. Get a bright idea of  how  to  compare  the  thing  you  were  trying  to
communicate to the familiar object, attitude, profession,  etc.,  that  they
all firmly have an opinion on.

Do as many other surveys as you like of this same public you are  trying  to
reach to get their attitudes in general or attitudes about  what  you  found
or even their general likes  and  dislikes,  vocabulary,  habits  of  dress,
etc., so you can write copy and draw pictures that seem to be them  or  what
they would say or do.

Do your drawings and write your copy.

If you have been clever, you will succeed in  communicating  forcefully  and
effectively and instantly at a glance something that was very unfamiliar  to
them previously.

All the other rules of copywriting, art and design, impingement,  etc.,  are
dovetailed into this to make more of it.

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By doing a lot of practice with this and drill, drill, drill, drill and
getting experienced with it, you will suddenly find yourself able to use
this in PR, advertising, marketing, and communication in general with an
impact that will be very effective and very startling.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm , 1983

444



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 7 FEBRUARY 1979R

Remimeo     REVISED 3 SEPTEMBER 1979

(Revisions in this type style)

                 (References updated and reissued as part of

                    Marketing Series, 3 September 1979.)

Marketing Series 7

PR Series 31R

THE BASICS OF MARKETING

There are certain stable data anyone engaged in marketing or  preparing  the
materials for marketing should memorize so that  he  can  think  with  them.
These are not just stable data which one uses to qualify whether  or  not  a
marketing thing is okay; these are the stable data from  which  a  marketing
person, or anyone connected  with  the  development  of  marketing,  use  to
create the products related to marketing such as fliers, ads,  info  sheets,
material for salesmen, posters, etc., etc. Memorize  the  basic  data  given
below and be familiar and able  to  work  with  the  material  contained  in
parentheses after them so that you can think with these stable data.

0.    Be a professional in anything you do.

1.    Survey for the public and then survey that public with regard  to  any
product. (HCO PL 2 Jun. 71 11, PR Series 10, BREAKTHROUGH-PR AND PRODUCTION-
TONE SCALE SURVEY; HCO PL I Jan. 77RA, Rev. 29 Aug. 79, Marketing Series  3,
PR Series 33R, MARKETING HAT, HCO PL 12 Nov. 69, APPEARANCES  AND  PRO;  HCO
PL 13 Aug. 70 11, PR Series 2, THE MISSING INGREDIENT, HCO  PL  13  Aug.  70
111, PR Series 3, WRONG PUBLICS; HCO PL 23 Nov. 69, INDIVIDUALS VS.  GROUPS,
and any other survey tech.)

2.    Do your homework. (Study the market, competitors, field, publics,
etc.)

3.    Be fully familiar with the propaganda line of PR or public image your
company is currently following.

4.    Know your product.

5.    Establish and use a positioning for every product.  (HCO  PL  30  Jan.
79, Reissued 30 Aug. 79, Marketing Series  5,  PR  Series  30,  POSITIONING,
PHILOSOPHIC THEORY.)

6.    Impinge! (Applies to graphic design, campaign ideas, anything else.)

7.    Be alive! (Don't compose dead downgrades.)

8.    Direct people's attention. (This applies to graphic design, wording
of ads, placement of ads, color choices, ideas, capers and stunts.)

9.    Make material aesthetic. (Know how to use geometric design, color
wheels, color depth perception, layout, etc.)

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10.   Be clean. clear-cut, comprehensible. (Don't be complex and muddy.)

It.   Use come-on. (In advertising you never tell all you know, just tell
people how they can get it or find it.) (See HCO PL 25 Jun. 78, Reissued 31
Aug. 79, Marketing Series 6, PR Series 32, COME-ON DISSEMINATION.)

12.   Create want!

L. RON HUBBARD

Founder

LRH:dv.lrjk.gal.gm

446



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 25 JUNE 1978

Org Staffs  REISSUED 31 AUGUST 1979

Div 6s

Registrars  (BPL of 25 June 1978 now issued as

FSMs

Missions    an HCO PL under same date and title.)

Groups

                     (Reissued 31 August 1979 as part of

                           the Marketing Series.)

Marketing Series 6

PR Series 32

COME-ON DISSEMINATION

A recent look at dissemination revealed the following data:

DISSEMINATION BY MEANS OF PURVEYING A LITTLE PIECE OR SEVERAL LITTLE  PIECES
OF TECH (to answer questions, show how a person's problem could be  handled,
show how the mind works, etc.) ENDS THE CYCLE AND TERMINATES THE REACH.

DISSEMINATION BY MEANS OF "COME-ON"  STRENGTHENS  THE  REACH  AND  LITERALLY
PULLS THE PERSON IN.

COME-ON

Come-on is defined by Ron as follows:

"A thetan is a mystery sandwich. If we tell him there is something  to  know
and don't tell him what it is we will zip people into Div 6 and on into  the
org." (LRH)

So in using come-on, one simply does the  above.  You  either  have  or  you
create interest in your prospects-then you channel  them  along.  Their  own
curiosity will pull them  along  the  channel,  providing  you  created  the
correct mystery in the first place.

You channel by indicating where and how to get the data-never just GIVE  the
data. And one can keep on doing this to a person-shuttle  them  along  using
mystery. Dept 17 services especially should be geared to this,  one  service
ending in some mystery that only the next Div  6  (or  better  yet,  Div  4)
service will solve. One can also put  this  type  of  come-on  promotion  in
books one sells so the person buying  the  book  is  put  into  mystery  and
doesn't just end on a win by reading that one book alone.

END-OFF

Reach gets blunted or terminated once a person gets his  question  answered,
the solution to his problem, etc. Purveying  random  and  little  pieces  of
tech to a prospect and the public at large does just this. This  is  end-off
dissemination.

Thus one should gear  one's  dissemination  to  the  come-on  and  keep  the
prospect's appetite for knowledge and mystery well  stimulated  and  channel
the  person  right  along  so  that  he  will  and  does  become  an  actual
Scientologist.

In our case, the curiosity restimulated eventually will  be  fully  answered
and to the person's complete advantage. When he is given  a  mere  scrap  of
information, he has

447



been denied the full data, gains and technology which  will  be  his  if  he
attains the benefits of major services.

DEFINITIONS

"MYSTERY-  the  glue  that  sticks  thetans  to  things."   (Dianetics   and
Scientology Technical Dictionary).

"MYSTERY SANDWICH: 1. the principle of mystery  is,  of  course,  this:  the
only way anybody gets stuck to anything is by a mystery sandwich.  A  person
cannot be connected to his body, but he can have a mystery between  him  and
his body which will connect him. You have to  understand  this  thing  about
the mystery sandwich. It's two pieces of bread, one of which represents  the
body and one of which represents the thetan, and the  two  pieces  of  bread
are pulled together by a mystery. They are kept together by  a  volition  to
know the mystery. (PAB 66) 2. a thetan stuck  to  anything  is,  of  course,
just a mystery sandwich. Thetan, mystery, object-mystery sandwich. (SH  Spec
48, 6108C31)" (Dianetics and Scientology Technical Dictionary).

COME-ON: (noun) "something offered as an inducement"  (Webster's  New  World
Dictionary).  "something  offered  to   attract   or   allure;   enticement;
inducement" (World Book Dictionary).

SUMMARY

Imbue your prospects and the public at large with a thirst to find out.

Mystery, not little scraps of data, will be found to be the biggest puller.

L. RON HUBBARD

Founder

Assisted by

Suzette Hubbard

for the

BOARDS OF DIRECTORS

of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:SH:drjk.gal.gm , 1979

448



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I JANUARY 1977RA

Remimeo     REVISED 29 AUGUST 1979

(Revisions in this type style)

(Re-revised 29 August 1979 to include Marketing Purpose and reissued as
part of the Marketing Series.)

Marketing Series 3

PR Series 33R

MARKETING HAT

The Marketing Bureau motto is CREATE WANT!

The PURPOSE of marketing is to CREATE WANT and to SELL SOMETHING.

That includes selling something that can be delivered.

The keynotes of any marketing action are

1. Search around and find what there is to sell. Get very full lists.

2. Pick one item.

3. Find out all about it.

4. Find any past history of it or any similar item in sales.

5. Survey the item on a variety of publics to find out

a. Which public will buy it

b. What that public wants, needs or would demand

C. Any past surveys on it or a similar item

d.Do a positioning survey per HCO PL 30 Jan. 1979, Reissued 30 Aug.

1979, Marketing Series 5, PR Series 30, POSITIONING, PHILOSOPHIC

THEORY

6R. A. Use the survey results to position (particularly 5d).

B.    Use the remaining survey results to write the copy, keeping in mind
that your positioning dominates it.

7R.   Write a sales campaign including what want  it  fulfills  (by  survey)
and what the key buttons are for that public  chosen  (by  survey).  Include
fliers, info sheets, ads, material for salesmen  of  it,  order  forms.  Use
graphic design which forwards the positioning and  use  the  positioning  in
the surveys in all issues regarding the campaign. "The Basics  of  Marketing
Stable Data" has to be applied heavily at this point to all issues, ads  and
campaigns. (See HCO PL 7 Feb. 1979R, Rev. 3 Sept 1979, Marketing  Series  7,
PR Series 31R, THE BASICS OF MARKETING.)

8. Design or get designed and laid out the items in the sales campaign.

9. Get them printed (or placed, when ads) according to the design.

449



10.   Write a full program for the item's release whether new or old.

11.   Assure a supply of the item can be gotten for selling at the points
it will be sold.

12.   Release the campaign.

13.   Adjust and handle any bugs in any points above.

14.   Arrange a continuation of the campaign so that it is not just a "one-
shot" action but will go on and on, such as distribution and continued
issue of the literature.

15.   Keep a visible record of the successes of the campaign week to week
and be prepared to correct, review or restart the campaign whenever it
falters.

16.   While working on the above, during the wait periods, pick another
item and go through all steps for it as above.

17.   Keep each item's checklist (as per this PL) in a folder for that  item
which contains all marketing actions. All pertinent papers,  work  and  work
copies to be filed in this folder with all results as they continue to  come
in.

18.   Review folders from time to time to evaluate them and restart them or
reinforce them.

19.   Do not leave any stone unturned to find old or new items that could
be marketed.

20.   Do not fall for needing new items only or pushing  only  the  new  and
realize that volume selling of everything you have  is  the  way  to  market
successfully, and that you have to keep on selling anything in order to  get
a large constant gross.

21.   Be a high-volume success!

L. RON HUBBARD

Founder

for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS: LRH:lfjk.gal.gm Copyright C) 1977, 1979

450



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 AUGUST 1979

Remimeo

                             Marketing Series I

                                PR Series 34

DIANETICS AND SCIENTOLOGY ARE NEW

People who have been in Dianetics and Scientology for years see it as a  way
of life. They accept it.

But to listen to them you'd think Dianetics and Scientology had been  around
for the last 50 billion years at least!

They have lost their viewpoint of the newness of Dianetics and Scientology.

They do not realize that Dianetics and Scientology are new news to the  bulk
of the world's population.

They do not realize that the  oldest  Dianetics  or  Scientology  books  are
brand new books to the bulk of humanity!

Before 1949 Man's knowledge of himself, the spirit and the mind was a  black
barbarism. Look over the psychology, psychiatric and religious texts of  the
'30s and '40s. Man could not change. He was a degraded animal. The  way  you
applied therapy was dreams or drugs, ice picks and ice baths.

Only Dianetics and Scientology began the road out of that witch pit.

But the witch pit is still there for almost all the world!

Because Scientologists number millions, Scientologists do not  look  at  the
billions to whom Dianetics and Scientology are BRAND NEW!

Those billions are still in the witch pit. They are still boiling.

Dianetics and Scientology are NEW NEWS.

We are the only road out.

Just because YOU are making it is no reason the world will. (If  you  aren't
making it in auditing, if you are a "failed case," get  yourself  a  repair-
Scientology is the only approach ever developed  that  repairs  itself  too!
And that is also new news!)

Let them in on the new news!

Cultures change slowly. It took centuries for Man to  realize  that  slavery
was wrong and could be changed. Cultures don't shift overnight.

So write and act like you have new news.

Recover your viewpoint by comparing what you now know  to  what  they  still
don't know in even "modern" institutions.

You have new news. And Dianetics and Scientology are  good  news.  In  fact,
the best news Man has ever had. Don't sit on it!

L. RON HUBBARD

Founder

LRH:ab.gal.gm

451



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF I SEPTEMBER 1979

Remimeo

Marketing Series 2

PR Series 35

MARKETING, PROMOTION AND DISSEMINATION

DEFINED

MARKETING: The conceiving  and  packaging  and  the  moving  of  a  specific
product into public hands. It means to prepare and take to and place on  the
market in such a way as to obtain maximum potential and recompense.

PR OMO TION.- To make something well known  and  well  thought  of.  In  our
activities it means to send something out that will cause people to  respond
either in person or by their written order or reply to the end  of  applying
Dianetics or Scientology  service  to  or  through  the  person  or  selling
Dianetics or Scientology commodities, all to the benefit of the  person  and
the solvency of the org.

Promotion is the art of offering what will  be  responded  to.  It  consists
only of what to offer and how to offer it that will be responded to.

By promotion in a Scientology organization we  mean  reach  the  public  and
create want.

DISSEMINATION: Spreading  or  scattering  broadly.  By  dissemination  in  a
Scientology  organization  we  mean  making  broadly  known  the  materials,
services  and  results  of  Dianetics   and   Scientology   through   books,
promotional  material,  letters,  films  or  other  media   or   activities,
including word of mouth.

L. RON HUBBARD

Founder

LRH:nc.gm

452



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinstez

HCO POLICY LETTER OF 2 SEP

Remimeo

All Staff

Marketing Hats

Dirs Prorno

PRs

Div 6 Marketing Series 4

PR Series 36

SURVEYS ARE THE KEY TO STATS

(From LRH ED 161 INT, 18 Dec. 1971, same title.)

References:

HCO PL 13 Aug. 70      PR Series 2

      Issue 11   THE MISSING INGREDIENT

HCO PL 13 Aug. 70      PR Series 3

      Issue III  WRONG PUBLICS

HCO PL 27 Nov. 71      Executive Series 3

            MONEY

HCO PL 3 Dec. 71 Executive Series 4

            EXCHANGE

HCO PL 2 Jun. 71 PR Series 10

      Issue 11   BREAKTHROUGH, PR AND PRODUCTION,

            TONE SCALE SURVEYS

HCOB 25Sept.71RB TONE SCALE IN FULL

HCOB 26 Oct. 70  OBNOSIS AND THE TONE SCALE

We can do too much.

By just flying ruds on people we could cure what often passes as insanity.

By Word Clearing we could change the whole educational picture.

We could handle the whole problem of psychosomatic (mentally caused)
physical illness.

We could lower industrial absenteeism from illness.

We are the only people who can cure drugs.

We could do a thousand other things with our tech.

That makes us unbelievable. Nobody on the whole track could ever do these
things.

So when we broadly offer everything we can do, it is too much.

SURVEYS

To find out what people want or will accept or will believe, one does
SURVEYS.

HCO PL 2 June 71, Issue 11, PR Series 10, BREAKTHROUGH, PR AND PRODUCTION,
TONE SCALE SURVEYS, tells you how to phrase survey questions.

It is not hard to do surveys.

453



When you have one done, the data should be USED. The  real  fault  in  doing
surveys is not using the result in promotion.

EXCHANGE

You and your org are involved in exchanging valuables for valuables.

You offer a valuable service in return for valuable money.

(See HCO PL 27 Nov. 71, Executive Series 3, MONEY and  HCO  PL  3  Dec.  71,
Executive Series 4, EXCHANGE for further information on what exchange is.)

So in surveying, you are in actual fact seeking to know  WHAT  SERVICE  THAT
YOU CAN DO WILL PEOPLE CONSIDER VALUABLE ENOUGH TO GIVE MONEY  OR  VALUABLES
FOR.

STATS

When you have this answer, you have the answer to prosperity stats.

PROMOTION

Promo done without survey,  magazine  ads  without  survey,  flyers  without
survey, you are going it blind.

It's pathetic to realize that you might be within an eighth of  an  inch  of
the right offering without making it. Sort of like  digging  two  feet  away
from the gold vein and getting an empty hole when you could have  a  million
dollar mine.

Working without surveys, you could spend thousands a month on promotion  and
lose it all.

Or working WITH surveys, you could spend  hundreds  on  promotion  and  make
hundreds of thousands.

It all depends on knowing how to do surveys, doing them,  really  tabulating
the results and USING what you find.

INVOICES

You can even do a survey out of invoices. You can see what book  sells  best
lately and then look into the book to see what it seems to promise and  then
promote that; you do that and you'd increase your delivery volume.

Or you could find the popular book by invoices, find  who'd  bought  it  and
survey the buyers as to what they would consider valuable in it and  promote
that service, and you'd increase delivery sales.

You could review invoices to tabulate what part of the town  or  state  your
customers came from and saturate (fill up) the area with promo and  increase
your delivery sales.

You could see by invoice survey what they bought and do a flyer on that  and
use that flyer to saturate that area.

Invoices are very useful. It  is  a  must  to  set  up  an  invoice-counting
project to see what to put in the next bulk mailing.

SUCCESS STORIES

Taking all back success stories, particularly from an affluent  period,  and
finding  out  what  the  people  were  most  appreciative  about  and   then
converting that to a training or processing offer and using it for promo  is
a vital action. Not to quote the

454



success stories-we do that and it's fine. But to SURVEY the success  stories
to find out what to offer.

EXAMINER REPORTS

A survey of past Examiner Reports for exam comments after  certain  specific
actions or courses have been completed is very revealing.

This gives you what you can offer with confidence.

It gives you a promotion base on which to build a campaign.

PAST PROMOTION

One also surveys past promotion. What gave the largest percent of response?

Promo which returned 11% or 16% is phenomenal.

You judge the accuracy of"your survey by the  success  of  the  promo  based
upon it. If the success is not great you resurvey.

SATURATION

When you are serving only the same people  all  the  time,  you  can  hit  a
saturation point (all filled up) by never offering their next action.

This next action requires a survey.

And new people must be fed in.

An example is an AO that got  fat  selling  OT  VII  to  old  customers  and
neglected promotion to get new customers and eventually saw its stats  begin
to sink.

So surveys of old customers and new customers  have  to  be  done  and  each
promoted to.

Thus, you have different PUBLICS which have to be  surveyed.  In  this  case
"old public" and "new public."  Each  requires  a  different  survey  and  a
different survey action and different promotion.

TOTAL EFFECT

Desperation often leads one to try for a TOTAL EFFECT.  (See  Effect  Scales
in HCOB 18 Sept. 67,  corrected  4  Apr.  74,  "Scales,"  and  in  the  book
Scientology 0-8.)

One has sometimes seen a student  trying  to  push  home  a  full  Dianetics
Course in fifteen minutes to his non-Scientology friends.

His R is wrong. He sometimes doesn't even get an ack in exchange!

If, perhaps, he demonstrated a Touch Assist expertly, explaining body  comm,
they would look on him as a wizard!

Some student can make his whole audience depart by talking about past  lives
and OT states when if he explained that people often led sad lives  after  a
family member died he might have an awed audience.

But to be sure how to have an awed audience, even the student would have  to
66survey" a little bit. He'd have to ask them what they  wanted  handled  or
something and then talk about that. In that  way  he  would  be  certain  of
attention.

A student or an org can get desperate and try for a total effect by telling
or

455



offering everything they know-and fly right out of the reality of their
audience.

MISSION

You as a Scientologist have a certain mission toward the world,

It is not a very civilized world.

You can bring it friendliness, peace and understanding.

How do you find an entrance point into this unfriendliness and lack of
love?

The answer is surveys.

Hereinafter, issue authority must be given only when promotion can cite
what survey it has based this upon.

Survey, lack of, is the weak link in all promotion.

To better your stats you must get this in.

Failure to survey can cost you thousands in ineffective promo and tens of
thousands in lost stats.

So the word is

SURVEY!

KNOW BEFORE YOU PROMOTE!

L. RON HUBBARD

Founder

LRH:nc.gm Copyright C) 1979

456



HUBBARD COMMUNICATIONS OFFI

      Saint Hill Manor, East Grinstead, Susse

HCO POLICY LETTER OF 4 SEPTEMBE

Remirneo

Marketing

      Personnel

Copywriters

Artists

Designers   Marketing Series 8

Div 2 PR Series 37

Div 6

Lecturers

PR    MORE ON MARKETING BASICS

The duty of marketing is to make sure that something gets marketed  in  such
a way that it will be wanted and delivered. To accomplish  that,  one  needs
to know his marketing basics.

PRODUCT AVAILABILITY

Marketing is supposed to create want and demand, but it is fatal  to  create
want and demand where no delivery is going to occur.

Marketing is also  supposed  to  engage  in  and  result  in  some  sort  of
exchange. Another way of saying "we deliver what we promise" would  be,  for
marketing purposes, 66we promise and promote what we can deliver."

A created demand which then cannot be fulfilled results in ARC breaks  with,
further, the time, effort and money put into that marketing action down  the
drain. Also, in such a case, as far as the public goes, the  credibility  of
any future marketing done is apt to suffer.

Thus, one markets  WHAT  IS  THERE  RIGHT  NOW  IN  EXISTENCE  THAT  CAN  BE
DELIVERED. And the marketing of a NEW  item  must  be  dovetailed  with  the
actual release and availability of the new item for delivery.

In this way we reap a whirlwind of business, the public  gets  delivered  to
and the created demand gets fulfilled.

TWO VITAL MARKETING DATA:

REALITY ON THE PRODUCT/REALITY ON THE PUBLIC

There are two important data which must be used  in  marketing.  When  these
are not applied, the result is a marketing piece which does not  communicate
to the public it was intended for, and therefore the promotion is  worthless
and a waste of money.

These data are

1.    TO GIVE ANY READER REALITY ON AN ITEM, THE COPYWRITER HIMSELF HAS TO
HAVE REALITY ON THE ITEM.

2.    TO COMMUNICATE TO AN AUDIENCE, YOU HAVE  TO  HAVE  A  REALITY  ON  THE
AUDIENCE AS TO WHERE THEY ARE AT AND WHAT THEY ALREADY KNOW OR DON'T KNOW.

Applied, these two data are the basics on  which  any  successful  marketing
campaign, small or large, is built. If one knows the product and  knows  his
audience, the remainder of the actions necessary to bring the  two  together
become relatively easy.

THE MARKETING CYCLE

Probably some marketing failures result from a false datum  that  to  market
is synonymous with directly  selling  to  the  customer.  That  is  a  wrong
concept and woefully incomplete.

Marketing includes all actions from before the beginning of the production
right

457



on through to its use by the customer and  its  word-of-mouth  promotion  by
the public. Your first step is you've got to have a product to  market  that
will market. And you have to groom that product up so you can market it.

From the first moment a product is conceived, much less produced,  marketing
has to be in there with surveys to establish  the  design  and  use  of  the
product, and it carries on through at every stage to make sure that it  will
eventually sell and get good word-of-mouth promotion.

Advertising enters into it.  The  basis  of  advertising  is:  you  have  to
attract, you have to interest, and you can then  get  your  message  across.
It's in that sequence.

Another part of marketing is distribution planning. Without a  plan  to  get
the promotion and the product distributed to those points  where  the  promo
will be used and the product sold and consumed, you can't market.

And there is one more step in marketing that you have to take, which is  the
standard step of PR. You have to review  your  marketing  program  and  your
issues and your promo and find out if they were put to use. Did  the  issues
and promo ever arrive? Did the promo  ever  get  printed?  Was  it  actually
used? And what was the response to it?

A completed marketing cycle would  always  include  such  a  follow-up.  The
success of an existing  marketing  campaign  or  the  success  of  the  next
marketing campaign would depend upon it.

SHOTGUN MARKETING

"Shotgun marketing" is marketing without any  concentration  on  the  actual
marketing of any one individual product.  Pushing  everything  all  at  once
scatters the audience attention and weakens the  impact  of  the  individual
items.

Cure yourself of sending all your materials out in a wad as it  is  a  fatal
failure. It  is  only  the  amateur  in  PR  and  marketing  who  sends  out
everything he has or has ever heard of in a single shot and  thus  winds  up
selling nothing.

On the professional side, one sends materials out piece by piece  to  arouse
and stimulate interest. When interest is stimulated one gets response.

So just don't indulge in shotgun marketing. And don't allow yourself  to  be
talked into it for whatever reason.

Release your materials strategically.

That's part of effective marketing and it's what brings about sales.

As a stable datum, the most attacked and  suppressed  line  in  any  org  or
management unit is promo and marketing and one has to know his  business  to
spot it and halt it before it does him in. Were we able to  clean  out  just
this one factor in management in every org, we'd  have  a  boom,  just  like
that!

A large part of handling this factor  lies  simply  in  both  marketing  and
management terminals understanding marketing  and  its  basics.  From  there
it's a fairly short step to getting the marketing basics applied.

That's really all it takes to produce a boom.

L. RON HUBBARD

Founder

LRH:nc.gm

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HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste

HCO POLICY LETTER OF 5 SEP

Remimeo

Marketing

      Personnel

Copywriters

Artists

Designers

Layout

Printers    Marketing Series 9

Div 2

Div 6 PR Series 38

THE ASSEMBLY LINE FOR PRODUCED PROMO

A few years back I found, in a study of the flow lines of promo, that it
was very difficult to get a line to move from idea stage to a disseminated
piece of promotion.

DESIGN OMISSION

A study of the graphic arts textbooks on layout  being  used  revealed  that
they began their org boards  and  flow  lines  in  the  print  shop!  That's
several notches down the line in the production of effective promo.  Omitted
was the vital step of design.

The textbooks were a printer's idea of the world and, being  printers,  they
would not really know much about the source  of  copy  or  ideas.  The  book
misdefined "dummy" as "rough layout" and misdefined "rough layout"  as  full
design and layout. And that was the text  being  used.  As  a  result,  when
requests were made for promo pieces, the  reply  was,  "Well,  give  us  the
dummy," and when the dummy came, it was, "This isn't the layout."

You can't start making columns of printing (galleys) without somebody  doing
a design and dummy. And you can't do a "rough layout" or any layout  at  all
unless you have a design of what the piece is trying to look like.

But there was no design step in the assembly line. Instead the  printer  was
being asked to put together a "layout" when he hadn't a  clue  of  what  the
person ordering the piece was trying to present. The result  of  that  could
only be hackneyed (trite), badlooking promo as there  was  no  real  design-
just type columns and photos.

Design is quite a subject; one I happen to know more  about  than  printing,
I'm afraid. So to see it omitted in texts  explained  all.  The  result,  no
matter how hard the printer worked, would be apt to be ineffective.

Once the real bug and omission was spotted, it was not difficult to get  the
missing vital functions added in and org  boarded  correctly  to  straighten
out the scene.

We now have a correct and complete assembly line for  produced  promo  which
permits a flow to occur from idea onward.

459



ASSEMBLY LINE FOR PRODUCED PROMO

IDEA

I

2.    WORDS - DUMMY - ART

P     T S

3.    DESIGN

4.    OUGH LAYOUT

5.    TYPESETTI

6.    ASSEMBLY, PASTE-UP

      PREPARATION

SHOOTING BOARDS

7.    PROCESS CAMERA WORK

8.    PLATEMAKI

9.    PRESS WORK

10.   FINISHING, CUTTING,

FOLDING, BINDING

-7-

TO ORDER

12.   STRIBUTI

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DEFINITIONS OF PROMO ASSEMBLY LINE FUNCTIONS

The following definitions correctly describe the functions at each  step  of
the promo assembly line.

IDEA: A concept or notion of something to be done; a plan of action;
intention.

DUMMY.- A scrap paper expression of the idea. Includes in the  same  package
the written materials or words (called copy), all  surveys  used,  captions,
photos and art work.

DESIGN: The artful  format  that  will  interest  and  lead  the  viewer  to
involvement in and finally desire to act (to attain, to  meet  a  challenge,
to acquire, to achieve, etc.).

ROUGH LAYOUT- The precisely measured pages, spaces,  type,  croppings,  laid
out with great  mechanical  accuracy  so  that  typesetting  can  begin  and
separation negatives or blocks that will fit can be made.

TYPESETTING: The act, art or process of setting type for printing.

SHOOTING  BOARD  LAYOUT-   (Includes   assembly,   paste-up,   preparation.)
Theexact, final arrangement and execution of each page, its  type,  art  and
pictures and page arrangement in signatures, ready for  the  process  camera
(or in letter press, the press).

CAMERA WORK: Where plates are made and photos or art plates are  made.  This
has a branch line, in color, which comes just before  it,  of  making  color
separation negatives.

PLATEMAKING: The process of making a thin, flat piece of  metal  or  plastic
called a plate, upon which a picture or a page of type is engraved.

PRESS WORK: This is the actual printing.

FINISHING: That which completes or gives a finished appearance to  any  kind
of work. It includes the cutting, collation, folding and  binding,  stapling
or stitching of the printed sheets, to make a finished product.

CUTTING: The trimming or separating of the printed sheets to the specified
size.

COLLATION: This is assembly of the printed sheets.

FOLDING: This is doubling or bending the sheets over to the  specified  form
and size, if they are designed to be folded, or if they  are  to  be  folded
for mailing. It is done by machine or by hand.

STAPLING OR STITCHING: This fastens the sheets together.

BINDING: This fastens the sheets together into a cover (if one is to be
used).

PACKAGING: This envelopes or boxes the material.

SHIPPING: This gets the product off to destination.

While many substeps may occur, these are the main steps. Each has its own
tech.

If the above steps of dummy, design and rough layout are confused  with  one
another or are tried out of sequence, the final product  cannot  occur,  and
if by some bungling does happen, it will be an overt product.

Printers and graphic arts texts hint at  a  mysterious  upper  world  called
"commercial advertising firms." This is as close as they get  to  mentioning
DESIGN as noted above.

461



Graphic arts texts confuse "dummy" and "rough layout." As a result, the
industry is in a spin most of the time, as you may have noticed.

The only place the above assembly line backs up is when "rough layout"
cannot execute the design due to limitations, inadequate facilities or
errors. This requires liaison between these two to iron it all out.

Ignoring or misapplying these flow lines will give you poor promo or, at
best, make it hard to get promo out.

The line tangles AT THE TOP THREE POINTS below "idea" unless these are well
understood and done exactly in this sequence.

If the DESIGN definition is understood and well used, promo will be
effective.

HCOB 30 August 1965, ART and HCOB 29 July 1973, ART, MORE ABOUT are vital
if one is going to do promotion. They regulate the first three steps of
this line.

L. RON HUBBARD

Founder

LRH:gal.gm Copyright C) 1979

462



~k

HUBBARD COMMUNICATIOTS

      Saint Hill Manor, East Grinstea

HCO POLICY LETTER OF 6 SEPT

Remimeo

Marketing

      Personnel

Copywriters

Artists

Designers   Marketing Series 10

Layout Artists   PR Series 39

THE RELATIONSHIP BETWEEN DESIGN AND ROUGH LAYOUT

What you're trying to get down the line is a product.

You've got the idea for a promo piece expressed  in  the  dummy  and  you're
trying to take it from design (the artful  format  that  will  interest  and
involve the viewer and stimulate him to act) into  a  precise  rough  layout
(the precisely  measured  parts  of  the  piece  laid  out  with  mechanical
accuracy).

And right here between these two-design and rough layout-your product  could
hang up and bog or get hopelessly bungled if the  difference  between  these
two actions and their relationship to each other is not fully understood.

DESIGN

The Purpose of Design

To do a rough layout or any layout at all, you must begin with  design,  and
the guiding line there is HCOB 29 July 1973, ART, MORE ABOUT.

What you're trying to do with the design of a layout throughout is

A. ATTRACT

B. INTEREST

C. DELIVER THE MESSAGE.

If you use the communication formula, you get an extension of this.

Some people abandon art for the message;  others  abandon  any  message  for
what they believe to be art. But if you  double  it-apply  ATTRACT-INTEREST-
MESSAGE and the comm formula to the layout as a whole-and then redouble  it-
apply  ATTRACT-INTEREST-MESSAGE  and  the  comm  formula  to   the   message
itselfyou get a double punch of impingement.

You want a design that, in itself,  communicates-a  design  that  talks.  It
requires the use of art forms.

Art Forms - Design Basics

The art forms we're talking about here are shapes or objects.

A keyhole, for example, is an art form. Different  shapes,  different  sizes
of keyholes, convey different things.  Circles,  squares,  triangles,  etc.-
these are all art forms.

There is a simple drill one can do, using art  forms,  to  grasp  the  basic
idea of  design.  Take  ovals,  squares,  rectangles,  circles.  Throw  down
certain shapes on an open

463



page of a brochure on each page  and  you  get  a  specific  design.  Is  it
pleasing? Not pleasing? Dramatic? Not dramatic? What is the effect?

Do this again and again, using the various shapes or combinations  of  them.
You can play around with this until you get the full feel of design basics.

Beyond this, one can  experiment  (but  not  on  the  final  product!)  with
different formats, different sizes, horizontals, verticals, different  sizes
of photos and backgrounds in color  or  not,  textures  and  two  dimensions
giving the impression of textures, as well as background designs.

The possibilities are many and one should feel at home with a wide range  of
them and how they align and integrate, or not. with the  rules  of  standard
composition.

Composition and the "Eye Trail"

When we talk about composition, we are talking about how you dispose of  the
objects in a picture or design, not how you draw one object. Composition  is
how you arrange or group the objects or shapes.

There are certain stable composition lines  and  there  are  dynamic  lines.
There are various types of mood lines. These must be used. They are part  of
standard composition, and they have everything to do with design.

In composition you are working not only with the mood of the piece but  with
the EYE TRAIL. The EYE TRAIL is vital in the layout of a design.

The eye must go somewhere-i.e., start at the top and follow down.  Where  it
starts and where it goes is called the eye trail. And  right  here  you  get
into the basic formula of ATTRACT-INTEREST-MESSAGE.  The  eye  trail  should
lead one-pull one-involuntarily through ATTRACT-INTEREST-MESSAGE.

You can have a design which, by itself, is so  irritating  that  it  forbids
reading it-it defeats the message. If you don't believe  it,  look  at  some
pictures in cubism. Cubism is a dead art, by the way. But why  did  it  die?
Well,  it  specialized  in  irritating  pictures,  jagged,  angry  pictures,
confused pictures. If the layout is ragged, the eye  does  not  follow  down
easily.

The actual design will deliver an emotional impact.  In  other  words,  your
design can be such as to prevent the piece from being read  or  deliver  the
wrong emotional impact for that piece, and therefore all the money  and  the
work and all the ideas and all the  think  that  went  into  it  is  totally
defeated.

Take squares. You put squares in the wrong place  and  have  the  eye  trail
going in the wrong direction and you have an irritated person who  will  not
go further.

Mono-sized shapes or objects  or  monotone  lines-the  piece  will  have  no
impact and no real eye trail. It's all monotone. It goes nowhere. Or  a  so-
called center spread where the eye is distracted  by  two  other  disrelated
photos and the attention is dispersed-wrong eye trail.

Thus design, the way you put something  together,  is  very,  very  able  to
deliver an  emotional  impact  by  itself.  Brilliant  design  will  deliver
exactly the emotional impact you intend. Brilliant  use  of  the  eye  trail
will carry one to and then through ATTRACT-INTEREST-MESSAGE.

The conclusion, therefore, is that  format  and  layout-the  design  of  the
piece-is the key to saleability.

So you use the emotional patterns of design and design itself as a means  of
communicating, to project the desired emotional response.

464



You're working for the  final  appearance  of  the  final  product  when  it
arrives in somebody's hands.

You're working for a technical quality which all by itself will deliver an
impact.

That's DESIGN.

ROUGH LAYOUT

Once the design has been established, rough layout can be done.

Rough layout precisely measures the pages,  precisely  measures  the  spaces
within the pages, precisely measures the copy  and  selects  the  type  that
will be used for the copy in the various spaces. It  crops,  precisely,  the
photos or other artwork that will be used in the piece.

Cropping

In cropping we see distinctly the relationship between design and rough
layout.

There are two types and two stages of cropping:

I . Artistic (design)

2.    Mechanical (rough layout).

1. In the design stage you indicate (describe) the artistic  on  the  design
in the space for the photo. Any crude black and white sketch will do.

2. Mechanical-rough layout-makes it fit and marks in  the  exact  dimensions
and the crop on the board the negative or transparency is in.

Cropping has to do only with format. The actual size of the  photograph  has
nothing to do with the established rules of cropping.  It  has  to  do  with
taste.

Rough layout follows the  design  and  scales  the  design  to  fit  in  the
prescribed space. It does this precisely  and  accurately  without  altering
the design and according to the balances and relationships described by  the
design,

When we get into rough layout, we are into the graphic arts. (One could  get
into a confusion here between the terms graphic arts, graphics and  graphic,
so it had  better  be  made  clear.  Roughly,  most  encyclopedias  describe
graphic arts  as  engraving,  etching,  etc.,  involving  representation  or
expression by means of lines on flat surfaces. Graphics is described as  the
art or science of drawing  especially  by  mathematical  principles,  as  in
mechanical drawing, or calculating by means of graphs or diagrams.  But  you
look in the dictionary and you find graphic means "vivid." So  graphic  arts
and graphics do not mean the same thing as graphic.)

Graphic arts deals with the mechanical reproduction of a picture or  design.
It is done by means of graphing. You don't use arithmetic in  graphic  arts.
It's more a form of plotting.

They call the rough layout the mechanical, and they call it  the  mechanical
for a  good  reason-it's  MECHANICAL.  What's  mechanical?  That  means  "by
machine."

So in rough layout you're into the area where it's all  machine.  We're  not
talking  here  about  a  system  of  pistons  and  gears  and   levers   and
crankshafts, but we are talking about a mechanical action.

If you've ever been on the bridge of a ship plotting a course, or if  you've
ever taken arithmetic that gave you vectors whereby you draw  one  line  and
then you draw another line and then you measure the  length  of  the  second
line and that gives you a

465



mathematical solution, you'll see that this is a mathematics of  sorts.  And
that is what is used in graphic arts. But it doesn't  have  much  arithmetic
involved in it. It's a system of graphing. You draw  a  line  this  way  and
that intercepts or stops a line over here and then that makes  a  line  over
here do something. It's plotting, graphing, a machinelike action.

The only way numbers enter into it is that negatives have sizes,  paper  has
a size, prints have a size-and those things have to be accounted  for.  Your
job in rough layout is to make the back wall join with the roof.

From the rough layout you will be able to get the type  selection  and  size
and you'll be able to get the cropping.

So you do the design in rough layout so that it is totally practical.  Rough
layout is totally a practical, a mechanical  action.  "This  type  will  fit
here and it fits the design as close as we can get. . . ." Etc.

Design and Rough Layout Liaison

There may be instances where the design  as  presented  cannot  be  followed
exactly by rough layout. This can be due to limited equipment  or  materials
or an error in the design  or  other  reasons.  When  there  are  legitimate
reasons it can't be followed, rough layout liaises with  design  to  get  it
worked out so that the design can  be  executed.  Otherwise,  they  are  two
separate and distinct functions.

The watchword in rough layout is precision. It is done with fine  mechanical
accuracy so that the preparation of the materials for the  shooting  boards,
the typesetting of the copy, the processing  of  the  separation  negatives,
etc., can begin. It's all got to be made to fit  precisely  so  that  it  is
doable when it goes to the final shooting board stage.

If it's not mechanically accurate, the shooting boards won't be  doable.  If
it gets to final shooting board stage without it being  doable,  or  to  the
printer as a faulty shooting board, you won't get a product  or  you'll  get
an overt product.

When it gets to the printer and the shooting of the plates, if  you  are  to
have two plates, one to follow the  other,  they've  got  to  be  in  total,
absolute register. There can't be a  millimeter  of  difference.  Now  we're
into precision. But it's precision of what? It's the precision of  following
what was laid down by rough layout.  So  the  rough  layout  had  better  be
correct.

If it got up to final shooting board stage without the thing being  able  to
be doable, then somebody can't lay out the  plate,  he  can't  lay  out  the
printing, the halftone dots won't match, the  this  won't  match,  the  that
won't match, the color separation negatives won't fit in that piece.

The essence of it in the final analysis is, is it doable?

You've taken the design and you've executed it in layout as  it's  going  to
be-each part scaled precisely to the right size  and  mechanically  accurate
so it all fits together perfectly. It's ready to go onto  a  shooting  board
for business so it can then be put under a camera. It's doable.

That's ROUGH LAYOUT.

L. RON HUBBARD

LRH:gal.gm  Founder





466



HUBBARD COMMUNICATIOTS

      Saint Hill Manor, East Grinstea

HCO POLICY LETTER OF 19 SEP]

Marketing

      Personnel

Copywriters

Dirs Prorno

PRs

Div 2

Div 6 Marketing Series 11

PR Series 40

PROMOTION

Promotion is, of course, an essential part of marketing.

It is the action of making something well known and well thought of.

It is the art of offering what will be responded to.

RESPONSE is the key word here. Whether it's in terms  of  services  sold  or
commodities sold or communication or goodwill, it's  response  that  is  the
test of all promotion.

In order to get response you've got to first  find  out  what  people  want.
You've got to find out what people consider valuable.  When  you  know  what
people want and what  they  consider  valuable,  you  know  what  they  will
respond to.

It takes surveys. It's no good flying blind or trying to guess  at  it.  You
won't KNOW until you survey.

So your first question on all promotion is, "Am I absolutely sure, before  I
invest any money in this promotion (make-up, printing, postage) that  people
will consider what I am promoting valuable enough to  exchange  their  hard-
won valuables for it?"

The answer lies in the results of your survey. Promotion is always,  always,
always based on surveys, and it must include the exchange factor.

The real test of good promotion is: Are you getting an  effective  exchange?
The exchange may be communication, it may be goodwill, but-are  you  getting
exchange?

Communication and goodwill are valuable in themselves  and,  as  well,  they
precede and lead to the material exchange of valuable for valuable.  So  any
of these is considered effective exchange in promotion.

One must, however, in order to  continue  to  survive  and  to  continue  to
promote, arrive  very  shortly  at  a  material  exchange  of  valuable  for
valuable-a consumption of the  product  one  is  promoting.  On  a  material
exchange basis, if you are trying to produce something and  nobody  is  busy
absorbing or consuming it, you are in trouble right away because  nobody  is
going to support you, and that's where your income is. So  the  final  value
of promotion and where you get the money to  do  the  promotion  is  in  the
CONSUMPTION of the thing you're promoting.

The important datum here is YOU PROMOTE WHAT CAN BE DELIVERED AND CONSUMED.

Make it a firm policy that you push what you have ready  to  put  in  public
hands at the time of the promotion and  that  you  do  not  heavily  promote
future products not yet in hand.

467



Then, in any promo piece, be it an ad, brochure, a flier, a pamphlet, a
poster, you follow the line of-

1.    Attract

2.    Interest

3.    Get your message across.

That sequence, followed, can look many different ways in many different
promo pieces depending upon the subject, the mood, the design and the copy
of the piece. But in any'successful promotion, the basic sequence will be
found to be just that: Attract-Interest-Message.

TWO GUIDING RULES

There are two guiding rules to be followed in any type of promotion:

1.    Don't soft sell.

2.    Don't set us up for false claims.

The results of Dianetics and Scientology are fantastic enough to please  all
but the most psychotic in the society. These results have never before  been
seen on the planet. But there are  always  SPs  out  there  who  don't  want
people to get well and who use literature to get you in trouble.

The art of hard sell is you tell people to do something. Hard sell is  based
on knowing and promoting in the line  of  truth  and  not  being  reasonable
about people who  want  "other  things"  and  "other  practices."  There  is
nothing to compare with  Dianetics  and  Scientology.  They  are  infinitely
valuable and transcend time itself,

So don't understate things in  your  promotion.  Just  tell  the  truth  and
you'll find that it's very effective.

QUALITY DEGRADES

A degrade of the quality  of  something  means  an  action  that  lowers  or
reduces its excellence or degree of excellence.

In promotion, a quality degrade would  be  a  poorly  designed  piece  or  a
sloppy printing job or dull, clich6-ridden or otherwise  inappropriate  copy
or any other of a number of carelessly done or not done actions  that  would
show up in the final result.

Quality degrades can be caused by:

a.    Willful unhattedness, or

b.    Lack of good taste or a sense of the fitness of things, or

C.    Knowing products or promotion are of poor quality but, for one  reason
or another, neglecting to remedy them or  call  them  to  the  attention  of
those who can and will remedy them.

There is no excuse, with all of the tech at our disposal, for any of the
above.

The standards for the quality of our promotion must  be  high  and  must  be
maintained. We are not playing children's games. This is your show and  your
planet too. You aren't doing this just for me-but I am sure you know that.

We have an incomparable technology. In order to get  it  delivered  we  MUST
communicate and in the communication we MUST interest people in order to  be
seen and listened to.

A quality degrade in promotion cuts our comm lines to a  greater  or  lesser
degree. And the world depends in no small measure on our comm lines.

468



Thus, quality degrades are no slight matter. They cut our comm lines
because, with dropped-out quality, what we make and the promotion of what
we make would be so flawed that it would not communicate.

So realize, when promoting, that the world needs us and our technology.
Make it well known and well thought of.

And keep the quality of your promotion such that it does attract and
interest and communicate and bring response.

L. RON HUBBARD

Founder

LRH:gal.gm

469



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 25 SEPTEMBER 1979

Remimeo     Issue IV

LRH Personal PROs      REISSUED 31 OCTOBER 1982

GO PROs

LRH Comms

Honorary LRH

      Personal PROs

PR Series 41

"HOTLINE," POLICY OF

The HOTLINE Newsletter is the official  newsletter  to  PROs  from  the  LRH
Personal PRO Bureau.

PURPOSE

The purpose of HOTLINE is to feed PROs information they can use  which  will
get word of mouth and  which  will  help  them  build  an  image.  It  gives
information and  releases  they  can  get  into  newspapers,  magazines  and
periodicals.

The HOTLINE Newsletter is designed to keep PROs informed and  to  give  them
material which they can use to keep LRH's external publics informed  of  his
activities and products and the wins these create.

PROs are the main  public  of  HOTLINE  with  the  intention  that  external
publics are the main recipients of the news.

PROs are also the main contributors to HOTLINE in the  way  of  information,
news and wins and the idea of HOTLINE is to put into  professional  practice
the highest grade of PR, "GOOD WORKS WELL PUBLICIZED."

POSITIONING

Each issue of HOTLINE is to use the approved and positioned image which  the
LRH Personal PRO Bureau is trying to put  forward  for  their  principal  to
external publics. By doing this, an image can be built and  without  this  a
PRO can do little.

An image is built through repetitive public demonstration of a  mock-up.  It
is built by putting up, changing or taking down mock-ups. The  mock-ups  and
how they are demonstrated may vary but the positioning does not.

Because a mock-up tends not to be  permanent  and  a  PRO  is  dealing  with
thoughts and ideas, and vastly more significance  than  mass,  the  mock-ups
must be repeatedly created in order to build an image and keep it there.

Quite in addition to the surveyed position for LRH, standard  BE,  DO,  HAVE
surveys and REALLY FIND  OUT  surveys  are  done  of  external  publics  and
general information is collected from the media so the  HOTLINE  Editor  can
stay abreast of trends. From the surveyed data  and  information  collected,
the editor compares LRH or positions LRH in the  scene  using  the  approved
positioned image.

MOTIFS

Each issue of HOTLINE contains its own motif. HOTLINE  uses  LRH's  surveyed
position against matters of international concern.

The motifs compare the sectors which PROs have to push or handle, meaning

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subheads like "Education." HOTLINE issues  are  tailored  up  against  world
concerns of this nature.

One fits issue motifs to fit the image being presented.

Matters of world concern come under broad  headings,  i.e.,  "Drug  Reform,"
"Child Care," "Inflation,"  "Nuclear  Energy  and  Radiation,"  "Life  after
Death" and many others. These things would have to be timely  in  that  they
are chosen against what the world is interested in at the particular  moment
of issue.

One has to keep the general interest of the world continuously  spotted  and
surveyed.

In this way you get an LRH quote or statement or  position  with  regard  to
broad general matters of world concern. For example, there is  a  tremendous
amount being written and said these days about education  in  schools  being
poor and declining. That is a general concern.

The HOTLINE Editor using such an area of general concern then finds out  the
answers to the following questions:

A.    How does LRH fit into this?

B.    What has LRH done with regard to it?

C.    What has LRH produced to resolve it or aid it?

D.    What LRH works are the authorities neglecting concerning this?

E.    What quotable statement has LRH made about it?

F.    What opinion leaders or groups has he befriended or worked with, to
bring about a betterment of conditions on this subject?

G.    What official recognition or indisputable public recognition has LRH
received for his work in this sphere?

With homework done on the above, the motif of the issue will appear.

One is not talking about positioning LRH against some tremendous  event,  or
occurrence. This is wrong. We position against social and human  subject  or
subheads of human activity which are currently in vogue.

In this way a PRO will get his press accepted and get the quotes quoted  and
will be effective.

A good editor would keep a running file of  such  matters  of  international
concern, and by  keeping  himself  briefed  on  these  subjects  could  very
quickly position LRH in the scene, and develop his  motif  at  once  with  a
fresh news angle.

HOTLINE FUNCTION

HOTLINE must give PROs something they can use.

The HOTLINE feeds ammunition to the troops, things they can say  and  things
they can get published. It contains up-to-date and timely news which can  be
reprinted or used in other media. These articles are  written  for  external
publics which is their final destination.

The HOTLINE  Editor  has  to  know  the  background  of  the  person  he  is
representing. He has to know what LRH is pushing and doing. He has  to  know
the current scene and he must know the accurate  facts.  He  makes  sure  he
provides the documentation for what he says  in  the  news  articles,  which
PROs can use to forward the news stories themselves.

The HOTLINE Editor makes himself known as a terminal to whom newsworthy

471



information is sent and is a magnet for data which can be redistributed for
use.

HOTLINE is not a management issue pushing the interests of the Flag  Bureaux
or Flag. It is not some kind of press agentry piece but is to give PROs  the
FACTS which they can use to build an image  and  fill  the  vacuum  of  news
needed.

PRO USES OF HOTLINE

PROs use the information  provided  in  HOTLINE  to  forward  the  correctly
positioned LRH image to external publics in their local area.

Exact and specific directions of what is to be done with the information  in
HOTLINE and its accompanying particles is part of  the  standard  format  of
each HOTLINE and is contained in a box  with  six-point-high  titling,  very
noticeably on page four.

The PRO passes the information and news contained in HOTLINE on  to  opinion
leaders in his community  who  are  involved  in  social  affairs,  such  as
Kiwanis Clubs, Rotary Clubs, Parents and Teachers Associations, Chambers  of
Commerce, local business associations, community and civic services groups.

The PRO can also go one step further and secure from these  opinion  leaders
official acknowledgement of LRH good works. These have  often  been  offered
in the form of memberships, keys to cities and other official  recognitions.
PROs are authorized to accept these on LRH's behalf

PROs submit the LRH articles, quotes and news releases  concerning  LRH  for
publication in newspapers, periodicals or in  the  internal  organs  of  the
community groups mentioned above.

An Honorary  LRH  Personal  PRO  is  NOT  a  spokesman  for  the  Church  of
Scientology  and  does  not  attempt  to  represent  the  Church  or  answer
questions which concern Church affairs. These  he  promptly  refers  to  the
Guardian's Office.  He  IS  authorized  to  get  published  LRH  quotes  and
articles,  or  news  releases  concerning  LRH  and  to   answer   questions
concerning  L.  Ron  Hubbard  and  his  activities,  using  the  information
provided him in his Honorary LRH Personal PRO Press Pack and HOTLINE.

Any questions he cannot handle or does  not  have  information  for  can  be
referred to the  Honorary  LRH  Personal  PRO  I/C,  who  will  provide  the
information, instructions or  guidance  necessary  to  handle  the  specific
situation.

When a release or quote is published, 2 copies  of  the  entire  publication
are forwarded to the CIC Officer of the LRH Personal PRO Bureau without  the
item marred in any way. If the article is printed  back-to-back  on  a  page
and  cutting  out  one  side  would  damage  the  other,  4  copies  of  the
publication are sent. If publication or mention is in a book, then one  copy
of the book is forwarded.

The Honorary LRH Personal PRO operates off  authorized  projects  under  the
Honorary  LRH  Personal   PRO   I/C   and   reports   his   activities   and
accomplishments based on these projects.

Some Honorary LRH Personal  PROs  have  specialized  fields  in  which  they
operate, i.e., the film industry, science, etc. These projects  enable  them
to carry  on  specialized  functions  as  Honorary  LRH  Personal  PROs,  in
addition to the above basic functions.

SPECIFICS OF HOTLINE FOF

A. PUBLICS

- Honorary LRH Personal PROs and GO PROs.

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-     And by courtesy to, LRH Comms, COs and EDs of all orgs, Mission
Holders, Flag Service Consultants and all Tours Orgs.

B. FORMAT AND LA YO UT

-     It is four pages long on 81/2 by I I inch white paper.

-     The ink is dark blue and type style is routine with Vinetta Bold for
the masthead and Prestige Elite for the copy.

PAGE 1. Masthead, LRH news.

PAGE 2. Campaign news (external).

PAGE  3.      Wins  from  Honorary  LRH  PROs  and  GO  PROs.  Wins  through
application of LRH  technology  with  external  publics.  An  LRH  quote  in
keeping with the motif.

PAGE 4.     Standing Order No. I box with a reminder to PROs to tell  people
they can always write to Ron. A box with exact specific instructions  as  to
what  to  do  with  the  news  contained  in  the  HOTLINE  Newsletter   and
accompanying particles, with six-point-high titling.

C. ACCOMPANYING PIECES

-     A press release concerning L. Ron Hubbard (external) with permission
to publish.

-     An LRH article for placement in a local publication with permission
to publish.

-     An issuable quote which can be submitted for publication, or put on
display.

-     A document, or survey results, or a glossy photograph to accompany
the release or article sent for placement.

D. MA ILING

-     HOTLINE and the accompanying particles are sent in 9 x 12 inch
envelopes to avoid folding certificates, articles or photos.

-     HOTLINE is published and mailed monthly. It is numbered consecutively
in volumes with 5 issues to a volume.

E. SPECIAL ISSUES

-     At times when there has been a tremendous win or  LRH  breakthrough  a
special issue of HOTLINE can be sent. It follows the same format  above  but
is labeled as SPECIAL with a band over the bottom right-hand corner.

F.    SCHEDULE

-     A schedule for HOTLINE is worked out in advance and  mailing  done  on
time so PROs can predict when they will receive  their  next  copy  and  can
send in vital data for publishing on time.

G. FINANCIAL PLANNING

-     HOTLINE materials and mailing is part of the FP #1 of the LRH
Personal Public Relations Bureau.

L. RON HUBBARD

Founder

Assisted by

LRH Personal PRO

CSI:LRH:RPPRO:iw.gm    Adopted as official

, 1982      Church policy by the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

473



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 26 SEPTEMBER 1979

Remimeo     Issue III

Marketing

      Personnel

Copywriters

Dirs Prorno

PRs   Marketing Series 12

Div 2

Div 6 PR Series 42

COPYWRITING

References:

Marketing Series PLs

PR Series PLs

HCO PL 10 Feb. 1965    AD AND BOOK POLICIES

There are many trends promotion and  ad  copy  can  take.  One  of  them  is
dignified, hard-hitting and dramatic. Another is warm, human  and  truthful.
Another, the kind we don't need, is pointless or banal.  It  specializes  in
words  like  "exciting"  and  "don't  miss"  which  are  clich6   (worn-out,
overworked, hackneyed phrases) and would attract no attention  and  get  you
no customers.

The approach to promo and copywriting, whatever the mood or trend it  takes,
should  be  fresh  and  truthful.   Insincere,   overdone   or   stereotyped
advertising will never sell or bring anybody into anything.

It  is  possible  to  do  promotion  and  write  copy  that  is  alive   and
interesting, that attracts and is in good taste,

PRIMARY MISSION

The primary mission of any piece of promo is to create  want  and  sell  the
item. When one goes to the trouble and expense of putting  an  ad  together,
it has to accomplish its purpose. If you're getting up an  ad  for  a  book,
the purpose is to create a want for the book and sell the  book.  If  you're
getting up an ad on a service,  the  purpose  is  to  create  want  for  the
service and sell the service.

The question one asks himself is, "What ad would accomplish  this  purpose?"
and "How am I going to convince this audience that they ought to . . ."

You dig into your surveys and you find what people want and  expect  of  the
item. You yourself must have reality on the product and  the  worth  of  the
product, and you must also have a reality on your audience if  you're  going
to reach that audience and communicate to them in your copy.

This comes under the heading of "homework."

HOMEWORK

By "homework" is meant all the necessary  preliminary  or  preparatory  work
done, all the relevant facts dug up, all the data needed  that  will  enable
one to get a product out.

In copywriting it would mean getting fully  familiar  with  the  product  or
service one was promoting, knowing all about it. How is  it  produced?  What
does it do? Why is it valuable? What results can one expect from it?

474



Wherever possible, the copywriter would have personal  experience  with  the
product or service himself to be able to promote and sell  it  honestly.  He
would make it his business to find out about the experience of  others  with
it, delve into results produced, success stories, wins,  achievements.  He'd
know the product or service and he'd be able to turn  out  copy  that  shone
with reality and conviction.

And he would make it his business to know his audience. Who is  the  product
for? Who is this public? Has this particular public been surveyed? Were  the
survey questions correct? What does the survey show this public wants?  What
do they expect from such an item? What "buttons" has this survey turned up?

When the homework has been correctly done, you  know  the  product  and  you
know your public and you can produce a piece of promo that  will  bring  the
two together.

You use your knowledge of the product, you use the survey buttons,  you  use
audience viewpoint and you use positioning to attract and interest  and  get
the message across.

COPY AND POSITIONING

There has been some think in the past that when positioning is  done  it  is
then put at the beginning of the promo piece and  after  that  one  pays  no
attention to it. This is a misuse of positioning. It can ruin the impact  of
your ad; it can disperse the reader.

Everything  streams  out  from  the  positioning.  If  one  has   positioned
something against an airplane, then the rest of the copy would be  in  terms
of flight. It would be inherent in the way one used his words. A  new  item,
a can opener, would take off from the drawer and dive effectively at a  can.
It would also give your hand a smooth  ride.  This  is  known  as  frame  of
reference. The vocabulary one uses is  all  inside  a  frame  of  reference.
Positioning gives you a frame of reference. So you write your  copy  out  of
that frame of reference and you plan your promo piece around that  frame  of
reference, and you keep it consistent.

Impact depends mainly upon consistency  and  staying  on  the  same  subject
without departure from the frame of reference.

A good copywriter will make the most of positioning to enhance his copy  and
make it all-of-a-piece with the whole of the ad.

ASSUMING AUDIENCE VIEWPOINT

A common fault in writing ad copy or other material, both in  marketing  and
other areas, is an inability to assume the viewpoint of the reader  and  get
the idea of what impression the reader may have when he reads the ad. An  ad
must be written from the viewpoint of the public that is going to read it.

The actual trick of writing that wins is to be able to put  oneself  in  the
valence of the person who will read it. What kind of public is that? Who  is
this person? Get a reality on your reader, and then,  just  like  an  actor,
you assume that beingness and read your copy back. An experienced actor  can
flip into a beingness in about 1/25th of a second and flip out of it  again.
So just slide into such a beingness and read your copy,  and  you  will  see
what I'm talking about.

It is a skill in writing to be able to read one's copy newly as  though  one
has never heard of it before, from  the  beingness  of  the  reader.  It  is
something one should acquire.

MAINTAINING VIEWPOINT

If the writer doesn't have a firm viewpoint  from  the  beginning  and  hold
that viewpoint throughout the copy, his ad will  lack  impact.  Further,  it
will disperse his audience. If he switches viewpoints within the ad,  if  he
writes from the viewpoint of the

475



producer one moment and moves in from the viewpoint of the consumer  in  the
next paragraph, his copy is  going  to  be  confusing  and  he'll  lose  the
reader.

One can't have two different approaches to the same subject in one piece  of
literature.

Similarly, if he has no audience viewpoint or has  difficulty  assuming  the
viewpoint of  a  reader,  his  ad  will  fall  that  much  short  of  really
communicating.

WHAT THE PUBLIC ASKS OF AN AD

In an ad or flier, you don't try to enforce  understanding  on  the  reader.
That violates come-on. And it's not even what the public wants. An  ad  does
not have to teach anything; it merely has to create want. And when the  want
is created, you must, must, must tell the reader where he can  get  it.  You
never leave a mystery as to  where  someone  can  get  the  product  or  the
service.

Ad copy can defeat its own purpose (to create want and  sell  something)  if
it doesn't include the seven points  of  an  ad  as  listed  in  HCO  PL  10
February 1965, AD AND BOOK POLICIES.

That list contains the questions a public person actually  asks  himself  or
asks of an ad or a flier. What is this service? How  valuable  is  it?  What
does it do? How easy would it be for me to do it? How  much  does  it  cost?
How do I get it? Where?

A good copywriter carries the reader,  his  interest  increasing,  right  on
through the final question. Where this is missing, you  have  a  writer  who
doesn't have the audience viewpoint. He may even  create  a  want  but  then
leaves his audience dangling. Where it is handled  and  handled  well  by  a
good copywriter, you have an ad that sells.

HARD SELL

It is necessary in writing an ad or a flier to assume  that  the  person  is
going to sign up right now. You tell him that he is going to sign  up  right
now and he is going to take it right now. That is the  inference.  One  does
not describe something, one commands something. You will find that a lot  of
people are in a more or less hypnotic daze in  their  aberrated  state,  and
they respond to direct commands in literature  and  ads.  If  one  does  not
understand this, and if he doesn't know that Dianetics and  Scientology  are
the most valuable service on the planet, he will not be able  to  understand
hard sell or be able to write good copy.

So realize that you're not offering cars or life  insurance  or  jewelry  or
stocks or bonds or houses or any of the transitory  and  impermanent  things
which are based on things not surviving or on things that are in fact  being
destroyed. You're offering  a  service  that's  going  to  rehabilitate  the
thetan and that is lasting.

Hard sell means insistence that  people  buy.  It  means  caring  about  the
person and not being reasonable about stops or barriers  but  caring  enough
to get him through the stops or barriers to get the service that's going  to
rehabilitate him,

That is the sole reason for our use of surveys and promotion  and  marketing
in the first place.

When that one fact becomes real, it all falls into place and it should be  a
short step then for a copywriter to produce an ad that attracts,  interests,
creates want and sells Scientology products and services.

LRH:nc.gm   L. RON HUBBARD

      Founder



476



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste~

HCO POLICY LETTER OF 27 SEP

Remimeo

Marketing

      Personnel

Copywriters

Dirs Prorno

PRs

Div 2

Div 6 Marketing Series 13

PR Series 43

ADS AND COPYWRITING

References:

Marketing Series PLs PR Series PLs

Ad copy has got to carry a message. It is a communication.

Some photographers never find out that a photograph is a communication.
Some artists never find out that art is a communication. And that is also
true of some copywriters.

SPLIT-SECOND TIMING

An ad is not textual information. It is a communication. But it has to be  a
very fast communication because people won't look at it very  long.  It  has
to be able to deliver its message in about a quarter  of  a  second.  That's
how long it takes somebody to go through the reflex of  throwing  the  piece
away.

You could actually go around with a stopwatch and time  how  long  it  takes
for a person to see if he is going to throw something away  or  not.  It  is
that span of time that you have in order to absorb the message.

The actual test of a piece of ad copy is WILL IT REGISTER IN THE INSTANT  IT
TAKES THE INDIVIDUAL TO PICK IT UP AND DECIDE HE IS GOING TO THROW IT AWAY?

If it communicates in that split instant of time, he won't  throw  it  away.
That is the test of an ad or a flier.

At each point a person would throw a promo piece away, he must  be  stopped.
You have to figure out the cycle by which he would throw something away  and
then you can write the ad copy. You have to figure out the  points  of  stop
when a person is going to discard this thing and catch him on  each  one  of
them.

ADS AND THE COMM CYCLE:

DIRECTING THE PUBLIC

You must recognize that the public has to be able to send for something or
be able to communicate easily or they don't buy the item. You have to
direct the public. An ad or flier must have something for them to do. It
must give them somewhere to go, or someone to write to, or someone to call
or contact. You first direct them. Then make it easy for them to respond.
That's part of the comm cycle.

477



LOOKING AT MADISON AVENUE

The beautiful artwork and gorgeous stuff you see  in  magazines  is  Madison
Avenue's effort to keep people from throwing the piece away  because  it  is
aesthetic. But it doesn't communicate.

I've looked through a few magazines trying in  vain  to  find  out  what  to
order and where to order it from. I had the wildest time and  finally  found
in one magazine they had enclosed a card. But it wasn't actually a card;  it
was a piece of a card that had  to  be  cut  off  another  card.  It  wasn't
recognizable as a card so I didn't recognize it as something you  could  use
to send away for something. It just didn't register as a card, so there  was
no simple way to send away for the item.

Here's an example of an  ad  that  doesn't  communicate.  It's  an  isolated
object, beautifully photographed, sitting out in the middle of  space.  Then
underneath it all they say they've  just  won  an  award  for  something  or
other. But what's the ad about? It doesn't say. The message isn't there.  It
doesn't communicate.

Here's another: It's actually supposed to be a cigarette  ad  but  it  shows
somebody getting dragged on a sled  through  the  snow.  It's  obvious  what
they're selling-they're selling snow!

Most of the ads in the better magazines aren't  ads  at  all;  they're  just
assertions about a product. You will find that hardly any of  them  are  ads
that bring about exchange.

If this is the best of Madison Avenue, they don't know the basics of
advertising,

If our promo people are looking at or studying  that  kind  of  ad  all  the
time, they won't be able to write good ads themselves. Because these  aren't
good ads. They don't communicate.

SURVEYS AND COMMUNICATION

In magazines you have something on the  order  of  half  a  million  dollars
worth of advertising or more. It has pretty poor impact.

It is very outpointy for grown men  to  be  spending  this  much  trying  to
trickily capture somebody's attention. They get so involved in the  trickery
of it that they don't communicate what they want, which is, "We want you  to
buy this product."

Advertising must  represent  something  that  people  want  which  they  are
willing to exchange something for. The ad has to tell them what it is.

If you have a surveyed message, it has got to offer  something.  Advertising
people, with all their flossiness, all of the  color  and  everything  else,
aren't communicating.

Some ads use mainly only a symbol or a hallmark and  attempt  to  make  that
into a communication. But you can't take a symbol or a hallmark and make  it
into a communication. They are just decorations. That doesn't make an ad.

You have got to get the communication that matches  the  survey.  But  promo
people have found a new way of avoiding a survey. They just put it all  down
in the text, so the communication doesn't match the survey.

I realize that in school they teach you  that  you  must  be  original.  But
communication is duplication. You do  a  survey,  the  public  feeds  you  a
button, so you just feed it back to the public. That's duplication.  And  it
works. Don't make the mistake, in writing  ads  or  copy  or  promotion,  of
thinking that you have to  do  something  else  besides  feed  the  surveyed
button back to the public.

478



CONCLUSION

Actually, in advertising you haven't got any competition at all.

So why is it that some promo people don't write good ads? Because the ads
they see all the time aren't good ads. That's the Why!

The handling is to write good ads!

With the survey and promotion tech we have, and the tech we have on
communication, there's absolutely no excuse whatsoever not to produce a
good ad-one that communicates!

L. RON HUBBARD

Founder

LRH:nc.gm

479



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinste

            HCO POLICY LETTER OF I DEC

Marketing

      Hats

Copywriters

Dirs Prorno

Survey Hats

PRs   Marketing Series 15

Div 2

Div 6 PR Series 44

SURVEY BUTTONS ARE NOT THE MESSAGE

References:

HCO PL 2 Sept. 79      Marketing Series 4, PR Series 36,

            SURVEYS ARE THE KEY TO STATS

HCO PL 7 Aug. 72R      PR Series 17R,

      Rev. 9 Aug. 72   PR AND CAUSATION

The book Fundamentals of Thought, chapter five: The A-R-C Triangle

The difference between survey buttons and the message in a promo piece  must
be crystal clear to those working in promotion and marketing.

The first thing to understand is that they are NOT the same thing.

The message is the communication, the thought, the significance you want  to
get across to an audience or public.

A button is what is used to get the public's agreement to hear the message.

Too often promo and marketing people seem to get all tied up  with  the  use
of buttons and thus they never put any message in the promo piece.  But  the
message is the whole reason for the promo piece in the first place!

Surveys can appear to not work  very  well  when  survey  buttons  and  only
survey buttons are used, as the result is messageless promo.

A survey is done so that you elicit response  and  agreement.  But  you  get
response because you've elicited agreement. You elicit  agreement  by  using
the right button. The button is the  R-factor.  It's  how  you  establish  a
reality with an audience.

To do a proper survey and to then use its results  effectively  requires  an
understanding of the purpose of surveys, and of ARC and  the  ARC  triangle.
It requires an understanding of what reality is.

One uses the ARC triangle in conducting a survey  initially  and.  following
that, one applies the ARC triangle in putting the survey results to use,

It goes like this: One communicates to  an  audience  (via  a  survey)  with
affinity to find out what the  reality  of  that  audience  is.  Reality  is
agreement as to what is. The reason you do a survey  is  to  find  out  what
that audience will agree with.

One then approaches the public with that reality in a  promo  piece  to  get
the public's agreement to  hear  the  message,  the  communication,  in  the
promo. And thus one raises  the  public's  affinity  for  the  item  one  is
promoting.

That is the simplicity of it. But it will only be simple to the  person  who
understands the ARC triangle. It is basic  Scientology  data  we  are  using
here. By improving

480



one corner of the ARC triangle, one improves  the  other  two  corners.  The
most important of these three related points,  ARC,  is  communication.  But
without  reality  or  some  agreement,  communication  will  not  reach  and
affinity will be absent.

Thus, surveys are done to get agreement. Dispel the idea  that  surveys  are
done for any other purpose. They're done  to  establish  agreement  with  an
audience.

In a survey, you question people to get their opinion on something-an  idea,
a product, an aspect of life, or any other subject. A button is the  primary
datum you get from this action. It is the answer given the  most  number  of
times to your survey question.

You ask ten or ten hundred people what they would most want or expect of  an
automobile tire and seven or seven hundred of them  tell  you  "durability."
That's the button. That's the reality, the point of agreement on  automobile
tires among that public. So you use that button with that public and  you've
established reality; you've got agreement and they will then listen to  what
you have to say about automobile tires.

Buttons have their use but we are not so much interested in them as  we  are
in MESSAGE. The message is the real essence of any promo piece. Buttons  are
just the grease to use to get your message through.

It would be a good idea for anyone with any confusion  on  these  points  to
work them out in clay. One should  be  able  to  make  a  clear  distinction
between these two terms, button  and  message,  and  to  view  them  in  the
correct relationship.

Once that distinction is made, it will be the end of messageless promo.

In its place we'll have promo that uses a button to strike  just  the  right
note of agreement and establish  a  reality  with  the  audience  and  then,
without fail, communicates, really DELIVERS THE MESSAGE, to what  is  now  a
receptive audience.

That's the secret of promo that gets response.

The first thing about it to understand is that SURVEY BUTTONS  ARE  NOT  THE
MESSAGE.

L. RON HUBBARD

Founder

LRH:kjm.gm

481



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 5 FEBRUARY 1982

Remimeo     Issue 11

All Staff

Marketing Hats

Dirs Prorno Pubs

PRs

All Pubs &

      Comps Units

            Marketing Series 16

            PR Series 45

BOOKS AND MARKETING

Don't plan books to be printed without marketing liaison and don't  mishmash
and cross publics when marketing  books.  Don't  market  with  generalities;
marketing is aimed at specific publics. And above all,  don't  downgrade  or
put black PR in books. Also, don't hit at allies to upset them.  This  is  a
theta line. Make it theta all the way. If any black PR is done on it, it  is
only to blow enemies off it. But the theta in these works,  all  by  itself,
will blow the enemy away.

L. RON HUBBARD

Founder

Assisted by

Special Marketing Pgm Ops

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:SMPO:bk.gm

482



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 19 JULY 1982

Remimeo     CORRECTED AND REISSUED I AUGUST 1982

PRs

      (Corrections in this type style)

PR Series 46

FAILED PR

References:

HCO PL 18 Nov. 70 11   PR Series 5

            PR DEFINITION

HCO PL 7 Aug. 72R      PR Series 17R

      Rev. 9.8.72      PR AND CAUSATION

HCO PL 21 Nov. 72 1    PR Series 18

            HOW TO HANDLE BLACK PROPAGANDA

HCO PL I Apr. 82 PR Series 19R

            THE SAFE POINT

HCO PL 27 Oct. 74      PR Series 25

            SAFE GROUND

HCO PL 30 Mar. 75      PR Series 26

            PR AND INFORMATION

HCO PL 19 Sept. 79     PR Series 40

            Marketing Series I I

            PROMOTION

HCO PL 30 May 68 Admin Know-How Series 20

            ADMINISTRATION

HCO PL 16 May 65 11    INDICATORS OF ORGS

HCO PL 26 Dec. 68      THE THIRD PARTY LAW

HCO PL 15 Mar. 69      THIRD PARTY, HOW TO FIND ONE

HCOB 21 Jan. ADIO      JUSTIFICATION

HCOB 12 Feb. 62  HOW TO CLEAR WITHHOLDS AND

            MISSED WITHHOLDS

HCOB 8 Feb. 62   MISSED WITHHOLDS

HCOB 3 May 62R   ARC BREAKS, MISSED WITHHOLDS

      Rev. 5.9.78

HCOB 31 Jan. 70  WITHHOLDS, OTHER PEOPLE'S

HCO PL 3 May 72R Exec Series 12

      Rev. 18.12.77    ETHICS AND EXECUTIVES

HCOB 16 Nov. 61  SEC CHECKING GENERALITIES

            WON'T DO

HCOB 22 Feb. 62  WITHHOLDS, MISSED AND PARTIAL

HCO PL 19 Oct. 74      THE DRAMATIZATION OF WITHHOLDS

            ON VITAL INFORMATION LINES

HCOB/PL7 Aug. 79 Product Debug Series 8

            Esto Series 36

            FALSE DATA STRIPPING

There is a datum as follows: When admin won't go in, tech is out. When tech
won't go in, ethics is out.

Here is how this fits in the PR world: WHEN PR WON'T GO IN, ETHICS IS OUT.

483



There are several ramifications of this, which is to say,  several  possible
flows. It could be the PR himself is not pushing and is out-ethics.

It could be-the usual reason-that the via to the target public or  even  the
target public is out-ethics in some way.

It could occur that the target (or via to it) is being pressured by an  out-
ethics third flow-as in third party tech.

But. whatever the flow, the fact remains that the above datum is true.

Any PR pushing a worthwhile message and pushing it with good  ideas  and  PR
tech will get his only loses by reason of the above datum.

An example in PRing an org which then does  not  respond-an  instance  which
just happened-out-ethics was rife at the org top.

This is not to put PRs in the ethics game. And it is  not  to  serve  as  an
excuse for failure.

The datum is for use-to widen up the obs [observation]  ability  of  the  PR
for it opens a new avenue to him for a PR handling!

Out-ethics on the surface appears as  withhold  phenomena.  This  makes  the
person the PR is working on or via behave as they  do  per  withhold  HCOBs,
which a PR should know.

PR, as well as being bright, is often a wily,  clever  game.  If  one  knows
what he is up against, he can develop a PR handling to fit.

If one suddenly realizes he is talking to no avail, he need not just  go  on
butting his head against the wall or countering chop or insults.  There  are
ways to blow withholds into view and withholders out of the water  that  are
too numerous to mention. If one, seeing the key datum  of  this  PL  is  the
case, then shifts his approach to blowing the withhold  to  bits,  he  wins.
And he stands a big chance of now getting his message through  where  before
it was all failure.

As an example, the crudest form would be an abrupt shift and question,  "Who
has been lying to you about (principal)?" This enters  it  into  false  data
stripping instantly. There are many, many ploys depending on  the  flow  and
situation encountered.

"Worse than" is a tool a PR can use. One infers the withhold  is  far  worse
than it possibly could be. "Why are you planning to (shoot, destroy,  wreck)
(principal)?"

The above datum has a thousand uses.

Don't get bugged by failures to get a message  through.  Having  given  your
best efforts resulting in a block, don't quit. Apply  the  above  datum.  It
serves the same purpose as dynamite. It can clear the way for  flows  to  go
through even if the pieces fly sky-high!

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CSI:LRH:kjm.gm   CHURCH OF SCIENTOLOGY

      INTERNATIONAL



484



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 12 SEPTEMBER 1982

Remimeo PR Hats

PR Series 47

PR FUNCTIONS

The functions of a PR are all those listed  in  "Effective  PR"  (the  book,
Effective Public Relations by  Cutlip  and  Center,  published  by  Prentice
Hall, Inc.*), and policies relating to PR actions.

But remember this:

PRs evolved from press agents and a basic area of their hat-particularly  as
it applies to promotion-is PRESS AGENTRY.

A PR must have some skill in

A. News stories

B. News photography.

Without these skills he cannot really comm to the media.

In obtaining "profitable images" a  PR  must  take  advantage  of  stage  or
conceive of an event that gets attention. He must  be  able  to  assume  the
viewpoint of a reporter, an editor or any of  the  types  of  public  he  is
seeking to reach. Otherwise he will not  perceive  what  they  will  accept.
This done, they will find his comm convincing and he  can  get  his  purpose
done.

A PR must be able to write "handouts" ranging from all the  facts  he  wants
received to a complete news release that will be printed verbatim.

A PR must be able to get taken or take news type photographs for use in
media.

And a PR must be able to line up media-or audiences-to get his message
across.

The basic tools of a PR are all embraced in the word "messages."  These  can
be oral, written or pictorial.

They must be oriented to the purpose the PR is seeking to achieve.

They must be arresting enough to impinge. They  must  be  bright  enough  to
interest.

These are the basic tools of the PR: purposes,  messages.  From  these  come
profitable images.

The purposes are many, the message forms and channels are many.  To  achieve
his product of images, the PR must acquire knowledge of and skills  in  them
all.

      L. RON HUBBARD

      Founder

      Adopted as official

CSI:LRH:iw.gm    Church policy by the



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

*Board Note: There is a  special  edition  of  the  book,  Effective  Public
Relations, especially produced for Church of  Scientology  personnel,  which
can be obtained from Bridge Publications, US or from the FSO  (Flag  Service
Org) Bookstore at Flag.

485



HUBBARD COMMUNICATIO

      Saint Hill Manor, East Grinstea

HCO POLICY LETTER OF 7 A,

Remimeo

All Staff

All PRs

Div 6's

Class IV Orgs

Saint Hills

AOs

FSO

Missions    Executive Series 37

PR Series 48

GOODWILL

References:

HCO PL 10 Sept. 82     Finance Series 36

            EXCHANGE, ORG INCOME AND

            STAFF PAY

HCO PL 28 Feb. 65      DELIVER

HCO PL 26 May 61 Keeping Scientology Working Series 2

      Reiss. 30.8.80   A MESSAGE TO THE EXECUTIVE

            SECRETARIES AND ALL ORG STAFF

            QUALITY COUNTS

HCO PL 21 Nov. 68      SENIOR POLICY

HCO PL 2 Sept. 70      FIRST POLICY

HCO PL 17 June 69      THEORGIMAGE

HCO PL 24 Aug. 65 11   CLEANLINESS OF QUARTERS

            AND STAFF-IMPROVE OUR IMAGE

HCO PL I I Dec. 69     APPEARANCES IN PUBLIC DIVS

The amount of public demand for service and  your  future  income  are  both
largely dependent upon GOODWILL.

Goodwill is  the  reputation  an  organization  has  with  its  publics  for
integrity,  good  service,  prompt  bills  paying,  high  quality  delivery,
friendliness, etc.

Excellent technical delivery is what generates a blaze of  goodwill  and  PR
that spreads by word of mouth like wildfire.

Events, open houses, tours, film or slide presentations-all such  activities
serve to generate public interest and goodwill.

Training and processing are commodities that are  far,  far  more  desirable
than anything else this world has to offer.  And  when  they  are  delivered
with superlative technical  application  with  the  out-of-this-world  gains
that are possible, you would drum up so much public support that  you  would
soon have an army of ardent supporters outside  your  door,  no  matter  how
much the psychs and press railed about us (even if they are still around  to
do so).

PR

Good technical  delivery  makes  it  possible  to  have  good  "PR"  (public
relations). By definition, PR is the art of making good  works  well  known.
It  is  effective  cause  well  demonstrated.  When  technical  is  creating
miracles on a regular basis, it is simply a matter of  making  this  broadly
known. Your public will even do it for you on a "word of mouth" basis.

486



WORD OF MOUTH

Almost all Scientology prospects come from people who have had  service  who
are urging other people to have service or read books on the  subject.  That
is called WORD OF MOUTH. Word of mouth comes from having numerous people  in
the field who are happy and cheerful and satisfied with  their  service  and
who are active in the fields of Dianetics and Scientology.  There  is  where
the bulk of your income comes from.

Word of mouth is a superior form of advertising to newspaper, radio  and  TV
ads.  People  tend  to  believe  their  friends.  They  are   skeptical   of
advertising. "It worked for Joe, it will  probably  work  for  me"  is  what
people think. And in Scientology they are correct.

When word of mouth and PR have been in neglect, it will be because  the  org
has not worked on the basis of goodwill and has let its tech go out (and  is
therefore costing itself a mint). This  applies  to  all  organizations  and
missions all the way up to the FSO and includes other units and networks  as
well.

The "word," whether good or bad, spreads like wildfire.  That's  why  you'll
never see anything empty out quite  as  fast  as  an  Academy  that  is  run
nonstandardly; or conversely, anything fill  up  as  quickly  as  a  tightly
scheduled, smartly run, in-tech Academy.

SUMMARY

Other factors also enter in  where  goodwill,  word  of  mouth  and  PR  are
concerned. The public, in dealing with the  business  world,  has  grown  to
expect clean, pleasant quarters and smart, friendly service.

There is nothing as destructive  of  goodwill  as  dirty  quarters,  sloppy,
"help yourself" service and an unfriendly staff.

Clean  quarters,  professional  conduct,  good  service  and  above  all,  a
friendly staff, all go a long way to promoting goodwill.

It is not only thejob of the Public Relations Officer  to  secure  goodwill.
It is part of EVERY staff member's  job  to  help  build  goodwill  for  the
organization by doing those things that will cause the public to think  well
of it, and by refraining from doing those things that would  result  in  bad
PR for the organization.

Above all, it is every staff member's primary concern that the  organization
is delivering the best tech quality possible. This point IN  is  the  source
of goodwill.

You must take a hand in creating goodwill. It is YOUR org!

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:fa.iw.gm

487



            REVISED

      HUBBARD COMMUNICATIONS OFFICE    See page 490

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 JANUARY 1971

Remimeo

Finance Packs

SO & Scn Orgs

Finance Series I

FINANCE BANKING OFFICERS

The Finance Office is  an  autonomous  office  (similar  to  the  Guardian's
Office). It has representatives  in  every  bureaux  and  every  Continental
Liaison Office and every org, SO and Sen.

It is located on the org board in the Office of LRH.

Its authority stems from the corporate authority of the company  and  exists
at company director level of the corporation.

Its representative is called the FINANCE BANKING OFFICER (FBO).

When the office is established in an area and an org is designated  as  part
of this corporate authority (as already exists in the SO at  this  writing),
the following procedure is followed.

The FBO verifies and collects all  income  received  by  the  org  from  the
Cashier or Income Dept, Div Ill, Treasury Division. This is done daily.

Appropriate receipts are given the Cashier or Director of Income.

The FBO immediately banks this money in a Finance Office Account or  in  his
safe. making express and useful records of this action.

When the org or activity has undertaken its financial planning (FP)  to  the
satisfaction of the Treasury See (or Purser) who  can  verify  that  the  FP
covers the necessities of org  operation,  the  FP  is  transmitted  to  the
Treasury Bureaux Aide or Assistant Aide. It is again verified.

Accompanying the FP from Ad Council level must be a  statement  of  expected
future income and its planning. It is upon this that the  bureau  bases  its
authorization.

This authorization is then forwarded to the FBO complete with all papers
and FP.

The FBO on his own discretion then transfers to that org's Main Account  the
needed funds. This is the ALLOCATION.

From this Main Account the org now further transfers funds to its other
accounts.

Any reserves being built by the org are taken from the allocation.

The management of the allocation remains with the org.

The judgment of the FBO, based on the org's expected  income  as  stated  in
the FP, and on the FP submitted, as to what  amount  the  FBO  allocates  is
entirely up to the FBO and is not subject to appeal. The FBO must  make  his
experienced allowances for down periods and for  the  actual  production  of
final valuable products of the org.

Any  cash  shown  on  a  cash/bills  graph  is  cash  salvaged  from  former
allocations (org reserves) or current allocations.  The  cash  expressed  on
the cash/bills graph of the

488



org must exist in actuality and must be real sums that can be  expended.  It
may not be "credit coming to  us  from  an  FBO"  nor  collectible  but  not
received sums. Even checks delayed in clearing may not be part of  this  org
cash figure.

The FBO also pays from his own funds  so  collected  from  orgs,  management
expenses of the corporation incurred locally. These are no part of an  org's
expenses.

The sums and accounts of the FBO are the property of the corporation and  no
longer under the org's control. Allocated sums for the  org  are  under  the
org's control.

Funds requested by an org FP, or by  an  FBO  from  the  corporation  for  a
specific use, must be applied to that use or refunded to the FBO if  not  so
used.

The orderliness and in-admin of a Treasury Division in an org are under  the
overall supervision of the org's Treasury Sec and  the  org's  Treasury  Sec
and the state of his division and the reality  of  his  activities  are  the
responsibility of the Treasury Bureaux of the corporation as well  as  under
the Executive Director or the Commanding Officer of that org or activity.

Balance sheets and other reports are under the same  responsibility  as  the
Treasury Division; but in the matter of balance sheets and  tax,  also  come
under the Guardian Office Finance to which both Treasury Aides  and  A/Aides
are answerable.

The viability of the org and area is the local  responsibility  of  Treasury
Secretaries and A/Aides and Aides of the Treasury Bureaux  and,  as  it  may
seem to them to apply, the Guardian Office,

The solvency of the orgs and areas is the responsibility of the FBO.

The FBO statistics consist of cash paid in to  management  central  reserves
and the allocation-production ratio of each org and of the area.

Management  reserves  are  used  for  defenses  and  potential  refunds  and
management overall cost and viability.

Org reserves are used for local emergencies or  periods  of  down  stats  or
large acquisitions to increase production.

The exact financial administration to bring this  policy  letter  into  full
use is offered for approval to and authorized by the corporate board.

Nothing in this policy letter disturbs in any way  existing  finance  policy
except to modify the Cashier's and Dir Income's actions in turning over  all
income properly accounted for to an  FBO  and  receiving,  via  FP  and  the
Treasury Sec of the org and the Treasury Bureau application,  from  the  FBO
the allocation passed upon by the FBO.

L. RON HUBBARD

Founder

LRH:nt.sb.rd.gm Copyright C) 1971

489



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 29 JANUARY 1971R

Remimeo     REVISED 27 OCTOBER 1982

Finance Packs

SO and Scn Orgs  (Revised to align with current

FBO Hat     organizational structure)

Finance Series ]R

FLAG BANKING OFFICERS

The  International  Finance  Office  is  an  autonomous   office.   It   has
representatives in every bureaux and every Flag  Operations  Liaison  Office
and every org, SO and Scn.

It is located on the org board in the Office of LRH.

Its authority stems from the authority of the  ecclesiastical  hierarchy  of
Church of Scientology International.

Its representative is called the FLAG BANKING OFFICER (FBO).

When the office is established in an area, the following is the operating
procedure.

The FBO verifies and collects all  income  received  by  the  org  from  the
Cashier or Income Dept, Div III, Treasury Division. This is done daily.

Appropriate receipts are given the Cashier or Director of Income.

The FBO immediately banks this money in a Finance Office account or  in  his
safe, making express and useful records of this action.

When the org or activity has undertaken its financial planning (FP)  to  the
satisfaction of the Exec Council who can  verify  that  the  FP  covers  the
necessities of org operation, the FP is transmitted to the FBO.

Accompanying the FP from Exec Council level must be a statement of  expected
future income and its planning.

The FP is then forwarded to the FBO complete with all papers.

The FBO on his own discretion then transfers to that org's Main Account  the
needed funds. This is the ALLOCATION.

From this Main Account the org now further transfers funds to its other
accounts.

Any reserves being built by the org are taken from the allocation.

The management of the allocation remains with the org.

The judgment of the FBO, based on the org's expected  income  as  stated  in
the FP' and on the FP submitted, as to what  amount  the  FBO  allocates  is
entirely up to the FBO and is not subject to appeal. The FBO must  make  his
experienced allowances for down periods and for  the  actual  production  of
final valuable products of the org.

Any  cash  shown  on  a  cash/bills  graph  is  cash  salvaged  from  former
allocations (org reserves) or current allocations.  The  cash  expressed  on
the cash/bills graph of the

490



org must exist in actuality and must be real sums that can be  expended.  It
may not be -credit coming  to  us  from  an  FBO"  nor-collectible  but  not
received sums. Even checks delayed in clearing may not be part of  this  org
cash figure.

The FBO also pays from his own funds  so  collected  from  orgs,  management
expenses incurred locally. These are no part of an org's expenses.

The sums and accounts of the FBO are solely under the  control  of  the  FBO
and no longer under the org's control. Allocated sums for the org are  under
the org's control.

Funds requested by an org FP from the FBO's  accounts  for  a  specific  use
must be applied to that use or refunded to the FBO if not so used.

The orderliness and in-admin of a Treasury Division in an org are under  the
overall supervision of the org's Treasury Sec, and the  org's  Treasury  Sec
and the state of his division and the reality  of  his  activities  are  the
responsibility  of,  as  well  as  under,  the  Executive  Director  or  the
Commanding Officer of that org or activity.

Balance sheets and other reports are under the same  responsibility  as  the
Treasury Division but in the matter of balance  sheets  and  tax  also  come
under the Finance Network to which  both  Treasury  Aides  and  A/Aides  are
answerable.

The viability of the org and area is the local  responsibility  of  Treasury
Secretaries and A/Aides and aides of the Treasury Bureaux  and,  as  it  may
seem to them to apply, the Finance Network,

The solvency of the orgs and areas is the responsibility of the FBO.

The FBO statistics consist of cash paid  in  to  central  reserves  and  the
allocationproduction ratio of each org and of the area.

Central reserves are used for defenses and management overall cost and
viability.

Org reserves are used for local emergencies or  periods  of  down  stats  or
large acquisitions to increase production.

Nothing in this policy letter disturbs in any way  existing  finance  policy
except to modify the Cashier's and Dir Income's actions in turning over  all
income properly accounted for to an FBO and receiving from the FBO, via  FP,
the allocation passed upon by the FBO.

L. RON HUBBARD

Founder

Revision written at the request of the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm

, 1982



491



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 13 FEBRUARY 1971

Remimeo

Add Finance

      Checksheet

All FP Members

Finance Series 2

FINANCIAL PLANNING TIPS

FP need not be a burden at all.

If these five conditions exist then FP is very easy.

1. PRODUCE  AS  AN  ACTIVITY.  Look  over  what  your  products  should  be,
particularly your valuable final products,  and  then  begin  to  get  those
products somehow anyhow. This and only this is the shining  reason  why  you
can have a decent allocation. If it is then denied you, you can howl and  be
sure of redress. A cap in hand with no product is a sure  route  to  chopped
FP. (Example: An org with half a million collectable on its books but  which
didn't even send out statements had  an  awful  time  with  FP.  Asking  for
"allocations" that were really handouts, neither its FP  body  nor  its  FBO
fully understood WHY, but it just seemed unreal to give  it  money.  It  was
asking for money. It wasn't requesting the return to  it  of  money  it  had
made and was entitled to. It did not make other value so could  not  justify
value. Therefore it "sort of looked odd" to Finance. Even  Finance  did  not
know why. The wildest example of this was  the  1950  LA  Foundation  which,
under a US Navy ex-rear admiral,  wanted  $47,000  a  week  to  subsidize  a
foundation potentially making $80,000 a week. But he closed  its  doors  and
wouldn't run it until he could get "legal" and subsidized.  Another  one  is
DK 1969 wanting Flag to pay it $3,000 a  week  to  keep  it  going  when  it
wasn't even sending out letters and did not even own a  typewriter  yet  was
accidentally making $5,500 a week average. There are tons of such  examples.
Activities go on to government appropriation think instead of  promote-sell-
collect and deliver and wind up with no pay, no food,  no  uniforms  and  FP
troubles and conflicts you wouldn't believe possible.)

2. KNOW YOUR FINANCE PACK. When members of FP bodies  have  not  done  their
finance pack, they get into total confusion. Further, any finance  authority
gets disgusted with  their  admin  irregularities  and  won't  regard  their
propositions or troubles with any seriousness. Failure to do, refusal to  do
a finance pack (which only takes a couple part-time study days) can give  an
FP body a bad name with Finance people simply  because  their  ignorance  is
mistaken for foolish proposals.

3. SEPARATE OUT DIFFERENT TYPES OF EXPENDITURE. An early FO  on  "title"  of
various items helps clarify. Find out and get it agreed to what  is  covered
under Title A (permanent), Title B  (valuable  nonexpendable)  and  Title  C
(issuable or usable) and get Finance to agree to what is which  and  exactly
what one is doing FP on and the tangle  becomes  easier  to  undo.  What  is
Permanent Fixture? Does one FP for new ships, new buildings, vital  repairs,
vital spares? (Actually no, but it has to be covered  in  general  finance.)
Is one FPing for gimmicks and oddities and  possibly  useful  things  (Title
B). Or is one FPing for expendables, wages, food, fuel, papers?  (Title  C.)
Maybe one FPs for all three BUT in the category of  necessities  to  operate
and would be nice and future hopes. Necessary spare parts for Title  A  that
would break everything down are of course necessities.  So  probably  should
pass without question. Whereas Finance people  often  don't  see  them  that
way. Wages, food, uniforms, fuel are subject to cutbacks where  an  activity
is not able to demonstrate production. Good idea Title B  usually  comes  in
for purchase when the activity is really making the money and otherwise  are
a yawn. Future hopes depend totally upon one's profitable use  of  what  one
has. Once you get all this agreed to with Finance people, they can't  change
the rules on you every FP. And a lot of the strain goes out of it. No FO  or
P/L could easily set up

492



exact rules for every type of activity there is.  Essentially  it  would  be
what is agreed upon between the Finance people and the FP body. The  Finance
people want to get cash to reserves and  they  resent  justly  a  freeloader
activity that has subsidize or unwise think. They want to give  an  activity
X beans (money) and get back X beans plus. When they give out  X  beans  and
get back no beans, they are hard to live with. Even a ship that produces  no
money directly still sells  org  help  events  and  trained  experienced  SO
members for beans from orgs. Any org would give it good hard beans for  real
help and trained experienced  SO  members.  If  AOLA  could  "buy"  all  the
excellent SO members it wanted and needed from the station ship it would  be
delirious with joy. But if the station ship has not  been  making  them,  it
has a hat-in-hand aspect to Finance people. Finance people  then  shift  the
rules around to try to get out of giving any money at all, naturally.  While
this is covered in No. 1 above, it also affects No. 3, this one.  Everything
is considered Title C, even the ship, and subject to total reduction  as  it
does not increase Finance people's viability. So "the rules" get shifted  on
the FP body. If it isn't  making  a  valuable  final  product  that  can  be
changed for cash with something that has  cash  (No.  1  above)  and  if  it
doesn't know general finance rules (as in No. 2 above)  and  if  it  has  no
solid agreement with the finance authority on Title A,  B  and  C,  then  of
course FP is a nightmare for everyone concerned.

4. NEGLECTING NECESSITIES. When an FP body is not aware of  the  necessities
of its operation and neglects to FP for them, Finance people  (Bureau  Three
Treasury and FB0s) have to do it for them. This causes a lot of bad  feeling
from Finance people. A new drinking fountain or  trampoline  mat  for  staff
and no postage FPed for is sure to cause  a  lasting  engrain!  An  FP  body
should have a list of vital necessities by division and FP for  those  first
before  it  begins  to  wonder.  Strangely,  pay,  food,  uniforms  are  not
considered  necessities.  They  do  not  directly  influence  an  activity's
income. A "necessity" is what it takes to make products and  valuable  final
products. In a  cap-in-hand  activity  food  is  qualified  as  "some  food,
oatmeal maybe." Pay becomes "maybe but no  bonuses  ever."  Uniforms  become
"none." Recruiting posters YES. Fuel becomes "economical  amounts  carefully
used." Training materials becomes YES. So what's a  necessity?  A  necessity
is what it  takes  to  make  the  valuable  final  product,  not  individual
survival but group survival. So an FP body doing individuated think can  get
in severe FP trouble just by the nature of economics,

5. USING FP TO NEGLECT DUTY. It is a shame but true that people will  excuse
lack of vital action by blaming FP.  "The  building  burned  up  because  we
couldn't get fire hoses through FW' "The main engine broke down  because  FP
rejected. . . ." Actual tracing of such  statements  usually  discloses  the
item was never FPed for at all even to the FP body or that an "FP" was  used
as a means of escaping the work. If you buy all this blame of  FP  you  will
think FP and Finance people villainous. Actually FP is often a whipping  boy
to excuse not doing the job or to delay it. Failure to handle and saying  it
was FP when it wasn't is Comm Ev stuff. So don't  let  FP  get  a  bad  name
unjustly. It's grim enough even when done right.

The future of any activity depends upon these five factors above. It  is  an
economic world in which we live, regardless of  "isms"  like  capitalism  or
communism or socialism.

If you have these five things cared for, you can do FP quite merrily.

The essence of getting money is making money in the first place. FP  is  the
second step of what do we do with the money we make.  It  will  never  solve
neglecting to make it. You always have trouble with money if you don't  make
any.

I hope this helps lead some finance bodies out of the jungle into the sun.

LRH:sb.rd.gm     L. RON HUBBARD

      Founder



493



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 17 FEBRUARY 1971RB

Remimeo     RE-REVISED 27 OCTOBER 1982

Finance Packs

SO and Scn Orgs  (Cancels and replaces

      BPL 17 Feb. 7 1 R, same title.)

Finance Series 3RB

BASIC FBO DUTIES

(This issue was originally issued as a policy letter taken from

notes of a conference by the Founder. It was approved by the

Founder and adopted by the Board of Directors including the

Bank Accounts section written by the Founder. It was revised

and reissued incorrectly as a BPL dropping the Founder's

section on Bank Accounts. It is being reissued at the request

of the Church of Scientology International in original form,

revised to align with new Int Finance Network and with

correct signatory and issue type. It now has the full force of

policy.)

References:

      HCO PL 29 Jan. 71     Finance Series IR

      Rev. 27 Oct. 82  FLAG BANKING OFFICERS

      HCO PL 13 Jan. 71     Finance Series 2

            FINANCIAL PLANNING TIPS

ORG CASH COLLECTIONS

The FBO collects the cash from Div 111.

He verifies what he has received.

He gives a receipt for it.

He writes it all down in his records, making a total list of what the
monies are.

He makes out a bank deposit slip.

He goes to the bank and he deposits the money in his FBO No. 1 Account.

FP LINE

Exec Council of the org passes on and finalizes its FP and hands it to the
FBO who verifies it by production for himself.

The FBO writes a transfer check from his FBO No. 1 Bank Account and just
transfers the FP amount to the org's bank account (Main Account).

The org's own officers are signatories on their own bank account.

The FBO and the Finance Enforcement Officer of the org are signatories on
the FBO account. Where there is no Finance Enforcement Officer, the D/FBO
or CO or ED are cosignatories.

494



The FBO has a second bank account (FBO No. 2) to which  he  transfers  money
for management expenses.

He transfers money from the first (FBO No. 1) account to SO (not org)
reserves.

The FBO keeps an invoice-disbursements system on his No. 2 Account.

The FBO never spends any money out of his No. I Account. Money goes into  it
and is transferred out of it. Only transfer checks are drawn on  it  (to  SO
reserves or to Org Main Account).

The FBO keeps enough float in his No. I Account  to  cover  bounced  checks.
Checks bounce ONLY on that account.

The minute a check bounces or fails to clear, the  FBO  reports  the  drawer
for false report and personally contacts him to establish whether the  check
should be represented or another check drawn.

This transaction does not go through the org Div III and is not  entered  on
the org's books. The org is left in the position of the  customer's  friend.
It is the FBO who is the customer's devil.

Div III collections have to do with  collecting  Qual  credit  invoices  and
advanced payments and any other credit advanced by the org.

BANK ACCOUNTS

FINANCE OFFICE (org name) NO. I ACCOUNT. Signatories: FBO  of  the  org  and
Finance Enforcement Officer of the org as well  as  international  officers.
No org officers except as needed in the absence of the  Finance  Enforcement
Officer and D/FBO. Transfers only. Requires both signatories.

FINANCE OFFICE (org name) NO.  2  ACCOUNT.  Signatories:  FBO  of  the  org,
Finance Enforcement Officer of the org and international  officers.  No  org
officers except as needed in the absence of the Finance Enforcement  Officer
and D/FBO. Management expenses, no org expenses. Requires both signatories.

ORG MAIN ACCOUNT. Receives only monies transferred from FBO Account  No.  1,
never from Cashier. Usual org signatories. The allocation received from  the
FBO goes into this account. All org expenses, salaries, etc., are paid  from
this account.

ORG RESERVE ACCOUNT. Receives any funds like building fund  org  is  holding
as reserves for the org as saved from allocations. Held by and signed on  by
the org officers.

HCO BOOK ACCOUNT. Used as per policy. Any monies belonging to  it  collected
by FBO, into his No. I Account and transferred to HCO Book Account  by  him.
Usual org signatories and D/FBO who is the holder of the checkbooks.

L. RON HUBBARD

Founder

Revision written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

CSI:LRH:iw.gm    Adopted as official

Copyright@ 1971, 1982  Church policy by the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

495



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 17 FEBRUARY 1971-IRA

Remimeo     REVISED AND REISSUED 27 OCTOBER 1982

Int Finance

      Network

FBOs

Exec Council     (Cancels and replaces HCO Policy Letter of 17

Ad Council  February 1971R, Rev. & Reiss. 16 Aug. 75 as

Dept 7      BPL, same title.)

Dept 8

Dept 9

Finance Series 3-1RA

HANDLING OF BOUNCED CHECKS AND REFUNDS

(Modifies the canceled BPL 17 Feb. 71R, Finance Series 3R in that bounced
checks must be minus invoiced by orgs and debited to the customer's account
so that service is not delivered against them until re-collected. Reissued
as an HCO Policy Letter with the full power of policy.)

This policy letter outlines the exact handling of bounced  checks  including
FBO actions as would be required in connection with HCO PL  29  Jan.  1971R,
FLAG BANKING OFFICERS and HCO PL 17 Feb. 71RA, BASIC FBO DUTIES.

It is a duty of the FBO to safeguard incoming monies and to ensure that  all
income is properly and legibly invoiced by the org and that the  exact  same
amount is collected and receipted and banked by himself each day.

FBO records must therefore agree with and verify those of Div 3 always.

All daily income collections are thoroughly checked by the FBO before  issue
of any invoice of receipt.

He carefully  checks  the  tape  total  of  the  day's  income  against  org
invoices. He checks the invoices for admin correctness  and  legibility.  He
ensures that all copies of any voided invoices are stapled to the  in-series
copy.

He then tape-totals the checks and counts the cash against invoice totals.

These must equal the same amount exactly.

He inspects checks for correctness  of  date  and  endorsement  and  quickly
obtains any needed corrections.

The FBO then issues  his  invoice  to  Dept  7,  made  to  "Dir  Income"  or
"Cashier" in the exact currency of receipt.

He ensures that his deposit slips equal  the  same  amount  as  org  invoice
total and the amount of his receipt for the money.

All org income is then deposited to the Finance Office Account No. 1.

BOUNCED CHECKS

Thus, any bounced checks are returned from the bank to the FBO.

The FBO receiving a bounced check from the bank debits it to the org with a

496



MINUS INVOICE of the same number series on which he issues his  invoices  of
daily collections from the org.

The org Dir Income or Cashier then at once  writes  his  own  MINUS  INVOICE
debiting the account of the person  who  presented  the  check.  A  copy  is
provided the FBO.

This protects the org from delivering services which have not in  fact  been
paid for. One org had on its books in excess of $20,000  which  had  bounced
and remained uncollected but which still showed in the customers'  files  as
credits!

COLLECTION

The bounced check is now subject to immediate re-collection  action  by  the
FBO, who reports the drawer for FALSE REPORT and personally contacts him  to
obtain a new check or OK to redeposit.

The FBO makes notes of all collection actions on a  single  sheet  to  which
all other related papers are attached.

When the FBO has secured collection on  the  check,  he  writes  an  invoice
crediting the org, attaching a copy to  his  collection  notes  to  indicate
collection complete. These are then filed.

The org Dir Income or Cashier then at once writes  his  own  CREDIT  invoice
showing "BOUNCED CHECK COLLECTED" and crediting the person's org account.

The re-collected check is banked by the FBO.

WEEKLY INCOME TOTAL

Gross income as reported on OIC is the total of monies collected by the  org
and is unaffected by bounced checks or bounced check collections.

Minus invoices for bounced checks are NOT deducted from  the  weekly  income
total; and re-collected bounced checks, having  already  counted  as  income
once, are not again counted.

PACKET INVOICES

Div 3 weekly invoice tape total excludes any invoices for bounced checks  or
bounced checks collected.

The FBO's weekly invoice  tape  total  excludes  any  such  invoices  but  a
separate tape is made by the FBO for any bounced checks and a third for  any
such collected that week.

FBO deposit slips for checks being redeposited are made out  separately  and
are so marked by the FBO to distinguish them from org income being banked.

ADVANCE COLLECTIONS AND BOUNCED CHECKS

Advance collections obtained from persons in the org  on  behalf  of  others
were discovered in one org to be at the root of  large  numbers  of  bounced
checks.

Services are often sold to family groups with one member paying for some  or
all of them.

This is not uncommon and is perfectly legitimate.

But beyond that, org personnel  may  not  solicit  payments  from  staff  or
public on behalf of others.

497



Orgs may not arrange for checks to be issued temporarily on behalf of
another between public persons or with staff to obtain collections.

Occasionally a student or pc in the org offers payment for a friend. That's
fine.

But orgs may not solicit or suggest it. Not ever.

Advance collections are obtained by industrious collection from "hot
prospects" and other potential customers.

The essence of it is selling the service, collecting the money from the
customer and getting the service delivered. (Unused prepayments are subject
to refund.)

REFUNDS AND REPAYMENTS OF PREPAYMENTS

Refunds and repayments of prepayments are not minus invoices but are paid
by Dept 8.

A voucher copy debiting the customer's account is placed in his accounts
file.

Any monies required for such by the org must be obtained from the CVB
Reserve Payment Account before payment from the org's Main Account.

Refunds and repayments are handled per Scientology Policy Directive 28 July
1982, REFUND REPAYMENT CLAIMS.

L. RON HUBBARD

Founder

Revision written at the request of the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm , 1982

498



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I MARCH 1971RA

Remimeo     Issue 11

Finance Packs    REVISED AND REISSUED 27 OCTOBER 1982

FP Members

FBO Hats

(Cancels and replaces BPL I March 1971R, re

vised and reissued 18 July 1975 of the same title.)

(This HCO PL was originally issued in HCO PL

form adopted by the Board of Directors and later

revised and reissued incorrectly as a BPL. It is now

reissued at the request of the Church of Scien

tology International in full with minor updating

and has the full authority of policy.)

Finance Series 4RA

INCOME SOURCES

Added to FBO duties are

a.    Income demand

b,    Tracing and summarizing of present and past income sources of the org
for the org.

He does this  from  actual  invoices  and  promotion  returns  and  accounts
collectable files.

As a routine activity, he searches old records and  invoices  and  files  to
detect and revive any past income sources no  longer  current,  as  well  as
summarizing current income.

Results are presented to the Exec Council and Ad Council by the FBO.

None of this relieves the Registrar or Ad Council or Exec Council or  Div  3
of responsibility for income and collections.

Ad Council also has copies of its departmental income sheets, posted  weekly
by dept heads against service department copies of invoices.

Ad Council statement of projected future income, which it presents  to  Exec
Council, can now be based on a planned increase of actual past  and  current
products and income sources and promotion successes and new income planned.

The planning by which the projected income is to be made is expressed in
the FP.

An FP body and its FBO must know its products and income sources cold to  be
able to plan at all and to make the projected income materialize.

An FP body that can project expected income with reality and can produce  an
FP that will obtain increased org products and the projected  income  amount
sensibly and realistically will have no trouble with finance authorities.

An FP body that cannot do this will have endless trouble with finance
authorities

499



and an FBO who cannot allocate accordingly will have endless trouble with
FP bodies.

FP LINE

Added to the FP line is the FBO's prepared statement  of  summarized  income
sources of  present  and  recent  weeks  and  any  previous  income  sources
discovered and promotion successes insofar as they are available.

These are provided  Ad  Council  and  Exec  Council  by  the  FBO  prior  to
financial planning. The presentation is  in  figures  and  is  factual,  not
opinion.

Copies of such FBO reports are sent  to  the  Continental  and  Int  Finance
Offices and to Flag Data Bureau. Ad Council and  Exec  Council  now  have  a
basis on which to plan projected future income with reality.

Ad Council, having prepared its statement of projected income  and  proposed
its FP, passes the FP to the Exec Council who finalize the  org's  financial
planning and income planning  and  then  present  it  to  the  FBO  for  the
approval of the allocation.

ALLOCATION

The FBO looks at (a) expectancy of income as laid out by the Ad Council  and
Exec Council of the org and (b) the amount of FP. He  makes  his  allocation
accordingly.

When the org is really making the money and can project still  more  with  a
good FP realistically planned, the  FBO  must  take  this  into  account  in
allocating for items  of  image  and  facility  improvement  which  may  not
directly cause income increase but which were earned by high production  and
high income.

The amount of an FP is  of  less  concern  to  the  FBO  than  an  increased
allocationproduction ratio.

Activities (orgs) that have no direct expectancy of income are put in a cap-
in-hand status and demand is made to produce income and meanwhile  here's  a
bare necessity handout. The FBO tries to get more in from the activity  than
he gives out by considerable.

FINAL FP AUTHORITY

The FBO  is  the  final  FP  authority  and,  as  such,  arbitrates  on  any
disagreements or disputes in the FP.

Adjudication is based on current income and the reality of projected  future
income and the sensible and realistic planning of the expenditure that  will
result in that amount of gross income which has been projected.

Any staff member who feels that the use of the org allocation  is  incorrect
may appeal directly to the FBO on the matter per HCO PI, 4  Sept.  71RA,  FP
AND NECESSITIES and where dissatisfied with the result  of  the  appeal  may
take his appeal to the Cont FBO or FBO Int per that PL.

L. RON HUBBARD

Founder

Revision written at the request of the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

      Adopted as official

CSI:LRH:iw.gm    Church policy by the

, 1982

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

500



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 26 APRIL 1971RB

Remimeo     Issue 11

Finance and REVISED AND REISSUED 27 OCTOBER 1982

      FP Hats

Dept 8

Check Signers    (Cancels and replaces BPL of

Finance Enforcement    26 Apr. 71RA, revised and

      Officer Hat

FBO Hat     reissued 16 Oct. 1975.)

(This issue was originally issued as an HCO PL written by CS-3 and approved
by myself, and adopted by the Board of Directors. It was mistakenly
converted into a BPL. Having been requested to review the Finance Series
PLs written by others, Finance Series 5 is now reissued in its original
form with minor revision as an HCO PL.)

Finance Series 5RB

FP ACTIVATION

FP allocation amounts become due for transfer from the FBO No.  I  Acct.  to
the Org's Main Account immediately following FBO  approval  of  the  FP  and
allocation figure.

The FBO is generally watchful of the  FP  routing  and  handling  lines  and
prevents any undue delays.

With the FP approved and allocation amount established, the FBO  issues  his
transfer check AT ONCE rapidly  obtaining  the  needed  Finance  Enforcement
Officer cosignature (where there is no FEO the D/FBO cosigns or if no  D/FBO
either, then the CO/ED may be a cosigner) and  delivers  the  check  to  the
hands of the Treas Sec.

The Treas Sec gives his receipt  and  sees  that  the  allocation  check  is
banked AT ONCE to the Org's Main Account.

When the FP check has been cleared and  been  credited  to  the  Org's  Main
Account by the bank, the FP as approved may be activated by Division 3.  NOT
BEFORE.

Checks drawn or POs activated against an FP for which the  allocation  check
has not yet been deposited or cleared amounts to  spending  money  which  is
not there and violates  earlier  policies  and  falsely  affects  the  org's
cash/bills stats.

FSM commissions due for payment follow the same principle.

Dept 8 prepares all forms and related data and applies via the Treas Sec  to
the FBO AT ONCE when such payments are due. The  FBO  rapidly  verifies  and
immediately issues a check to cover valid FSM commissions due. His  transfer
voucher lists the names and amounts. FSM commissions are NEVER held  up  for
once-a-week check signing and where  the  FSM  has  personally  brought  his
selectee into the org and is due a commission it MUST be paid at  once  with
the FSM Account check given directly into the hands of the FSM by the org.

Org officers signing FSM checks from the FSM Account must see a copy of  the
FBO transfer voucher, the selectee invoice and a copy of the selection  slip
before they may sign the FSM commission check.

501



As it would cause delays on FSM commission  payments  to  require  that  the
transfer from the FBO No. I Account be in the org FSM Account before an  FSM
payment check can be issued, the FSM  Account  is  started  with  a  balance
equal to an average of one full week's commissions. After that, the  routine
of transferring the amounts for commissions paid  each  day  will  keep  the
account maintained at a level that commissions can be paid  with  no  danger
that they will not clear the bank. When the volume of commissions  increases
in range the org Dir of Disbursements should CSW  to  the  FBO  to  transfer
additional funds to the FSM Account to ensure that its basic level  is  kept
sufficiently high to handle the traffic. The FBO  would  then  transfer  the
additional funds from his FBO No. I Account to the org's  FSM  Account.  The
exact administration of the FSM commission line  is  covered  in  HCO  PL  5
April 1979RA, NEW FSM (INSTANT PAYMENT) ACCOUNT.

That the FSM Account is handled as above does NOT mean that it may  be  used
as a "float" to pay out FSM commissions on a bypass of the FBO.

A check signer who fails to verify that  the  FBO  transfer  has  been  done
before signing checks against that transfer  risks  signing  checks  against
funds not there or allocated to other purposes.

CASH/BILLS

Cash/bills as reported by Div 3 includes sums actually on hand in the  org's
accounts versus bills due and purchases newly ordered.

Thus a check signer accepting checks for FP activation without  evidence  of
FBO transfer also risks a falsely reduced cash/bills  stat  which  gives  an
untrue picture of the org's actual financial position.

L. RON HUBBARD

Founder

Revision written at the request of the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm Copyright C) 1971, 1982

502



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 10 MARCH 1971R

Remimeo     REVISED AND REISSUED 27 OCTOBER 1982

Finance Packs

FBOs

      (Revised to update sections on FBO purposes and

      statistics. Originally issued as an HCO PL adopted

      by the Board of Directors and is hereby reissued as

      revised as an HCO PL with the full authority of

      policy. Does not include ALL FBO duties as some

      were added subsequent to the original PL and will

      be found in later HCO PLs. Some of these duties

      have been delegated to the newly created post of

      D/FBO for M.O.R.E. but are included here as still

      overall under the responsibility of the FBO.)

Finance Series 6R

FBO HAT

This policy letter outlines FBO duties and actions as given in recent
issues and in early 1968 Flag Orders by which the post was initially
established.

ORG BOARD LOCATION:

1.    The Finance Office is an autonomous office.

2.    It is located on the org board in the Office of LRH, Dept 21.

3.    Its authority stems from the ecclesiastical authority of the Church
hierarchy.

4.    Its representative is called the FLAG BANKING OFFICER.

FBO PRODUCTS:

1.    Management reserves, hugeness of.

2.    Cash to management reserves in acceptable range and rising in trend.

3.    Increased org solvency as indicated by an increasing allocation-
production ratio.

4.    Int Finance Network programs, projects and orders quickly and
thoroughly and completely done.

5.    Data and reports completed accurately and on time and sent to Int and
Continental Finance. Includes accurate and contemporary data to Data Bureau
Flag and Continental.

6.    The competent and terminated handling of local finance situations
arising, by application of the related policies, and the reporting of such
to Int and Continental Finance.

7.    Solvency of Flag in the area.

8.    Financing of Flag projects and actions in the area.

503



FBO PURPOSES:

1.    TO MAKE THE ORG MAKE MORE MONEY.

2.    TO GIVE THE ORG A WELL-PAID STAFF.

3.    TO MAKE IT VERY WORTHWHILE FOR FLAG TO MANAGE AND HELP IT.

FB 0 S TA TIS TICS..

1.    Payments to Flag.

2.    Allocation-production ratio in the org.

3.    Payroll divided by staff.

IMMEDIATE SENIOR:

1.    The immediate senior of an org FBO is the Continental FBO.

2.    The immediate senior of the Continental FBO is the Int FBO located in
the Int Finance Office.

FB 0 DUTIES:

1.    To establish and maintain the proper uses, titles and signatories of
the two FBO bank accounts, No. I and No. 2, on-policy.

2.    To collect daily all sums of income from the org and  to  ensure  that
all  incoming  monies  are  invoiced  and  banked  by  the  FBO  before  any
allocation or expenditure may occur.

3.    To ensure that any loans from SO reserves and any debts to it are
recorded as such.

4.    To verify all sums collected by the FBO  against  the  org's  invoices
for that day, and to ensure that the org's invoices tape-totaled  equal  the
exact amount received by the FBO.

5.    To issue an invoice of receipt to the Cashier or Dir Income.

6.    To keep an FBO LEDGER into which all incoming monies are entered on
the left-hand page for that day, giving a total list of what the monies
are,

7.    To enter  separately  (bottom,  same  page)  and  apart  from  current
income, any bounced checks returned from the bank that day, and any  bounced
checks re-collected by the FBO.

8.    To record on the opposite (right-hand) FBO LEDGER page  for  the  same
day the exact disposal of the day's income-to  the  FBO  No.  I  Account  or
abroad for exchange.

9.    To inspect the dates and endorsements and currency of all checks for
correctness before deposit.

10.   To separate out any domestic nonconvertible checks from other
countries if such are received, to be sent by the FBO abroad for exchange.

11.   To make a deposit slip for the day's income being banked and a
separate slip for any bounced checks being redeposited.

504



12.   To deposit all incoming monies daily to the FBO No. I Account.

13.   To keep a consecutive record of bank deposit slips in a notebook or
bank deposit book provided by the bank.

14.   To file a second copy of each deposit slip with the FBO invoices for
the week.

15.   To package and label FBO invoices  weekly  to  include  the  in-series
invoices and add-strip, a loose set of copies,  the  week's  deposit  slips,
and the bank debit advice for any bounced checks for the week.

16.   To keep express and  exact  record  of  any  amount  sent  abroad  for
exchange and to follow up each such amount until returned. Such sums  having
been once invoiced by Div 3 on receipt may  not  return  via  Div  3  or  be
reinvoiced on return from abroad as such introduces an error into income.

17.   To maintain enough float in the FBO No. I Account to cover any
bounced checks returned from the bank.

18.   To collect daily from the bank any bounced checks.

19.   To handle all bounced checks at once by urgent  and  personal  contact
with  the  drawer,  obtaining  immediately  a  new  check  or  the  drawer's
authority to redeposit. It is a fast and urgent contact action  with  Ethics
in the offing.

20.   To redeposit such sums daily by separate deposit slip to the FBO No.
I Account.

21.   To ensure that bounced checks are collected only by the FBO  and  that
neither the bounced check nor the re-collection of it appear in org  records
or org GI or Div 3 stats. A reinvoicing of bounced checks  by  Div  3  would
introduce an error into income. The only org records these show  up  in  are
the individual's accounts file and adding the amount collected  to  the  org
corrected gross income.

22.   To threaten legal action on any long-uncollected, bounced check and
if still uncollected to give the action over to Legal.

23.   To report weekly to Continental Finance Office the amount of checks
bounced, checks collected and checks outstanding, with a copy to Int
Finance Office.

24.   To collect weekly from the Treasury Sec a copy of the income sheets
posted up by dept heads from their service-dept copies of the week's
invoices.

25.   To ensure that DEBIT invoices are also shown and clearly marked on
these sheets and to ensure collection of DEBIT invoices by Div 3.

26.   To weekly summarize receipts and income sources of the org for the
org.

27.   To search out org collection files and old invoices to detect and
revive any previous income sources no longer current or dropped in volume.

28.   To trace income sources to their successful promotional actions where
such info is available as factual (not opinion).

29.   To present the Exec Council and Ad Council of the org with  a  factual
summary of org income sources, to include the  current  week  or  month  and
copies of earlier reports and any  past  income  sources  newly  discovered.
This is presented prior to financial planning and assists the  Exec  and  Ad
Councils in preparation of FP.

30.   To demand income increase from the org, particularly where past
successful income sources or collections have been neglected.

31.   To know the vital necessities required by the activity to produce its
valuable final

505



products and particularly its income.

32.   To maintain agreement with the FP body regarding Title A, B and C
expenditure and product necessities, and how these are covered by FP and
general finance.

33.   To receive the proposed financial planning and statement of projected
income when passed as okay by the org Exec Council.

34.   To inspect the proposed FP with regard to  (a)  expectancy  of  income
and the plan by which it is to be materialized and (b)  the  amount  of  FP,
and to allocate to the org accordingly.

35.   To ensure that FP  sums  allocated  by  the  FBO  cause  an  increased
income, thereby giving  an  increased  allocation-production  ratio  and  an
increased statistic of cash to SO reserves.

36.   To transfer sums of expense thus approved by check to the org's Main
Account.

37.   To send to Int and Continental Finance Offices a copy of the approved
financial planning against which the allocation was made.

38.   To transfer all HCO Account income to the org's HCO BOOK ACCOUNT.

39.   To transfer to the org's CVB* Account any refund monies required.

40.   To transfer to the org's FSM Account monies for FSM commissions paid,
these not being subject to financial planning.

41.   To issue to the Treasury Sec of the org a voucher with each transfer
check, detailing the amount and intended use of the monies.

42.   To recover from the org any  allocation  amount  (except  HCO  Account
monies) not applied to the approved use. Sums allocated by the FBO may  only
be used for the purpose requested and approved and if not so  used  must  be
returned to the FBO.

43.   To receive a copy of  any  EMERGENCY  PO  not  covered  by  the  org's
financial planning but vital to org credit or promotion or product,  and  to
deduct 125% of its amount from future allocation to the vessel or org.

44.   To deduct from future allocation 200% of the amount of  any  EMERGENCY
PO found to have been approved without any copy advising the FBO, or if  the
expense presented as an emergency was not an emergency in fact.

45.   To collect from the Treasury Sec a weekly disbursement sheet listing
all vouchers and sums paid out by Div 3 during the week.

46.   To ensure that the Treasury Sec accounts for all monies issued to him
by weekly total of expenses and cash on hand against monies from FBO that
week.

47.   To transfer by check from the FBO No. 1 Account, sums to SO reserves
and to the FBO No. 2 Account for management expenses incurred locally.

48.   To see that amounts owing to management for services and missions are
collected from the org and paid in full.

49.   To keep a separate invoice-voucher series for the FBO No.  2  Account,
including separate deposit slip records and invoice  and  voucher  packs  as
with the No. 1 Account.

50.   To pay from the FBO No. 2 Account any international management
expenses incurred locally, keeping exact and express records of these.

506



51.   To keep accurate and flawless  record  of  all  FBO  receipts-banking,
transfers and  disbursements-as  required  of  any  accounting  activity  by
standard Scientology accounts policies.

52.   To make a brief weekly summary of receipts to and payments from both
FBO accounts, sending these to Int Finance Office and keeping a copy.

53.   To keep and reconcile weekly an FBO CASH JOURNAL for recording of  any
CASH amounts the FBO may hold on hand. A CASH JOURNAL and cash box are  only
for  the  occasional  CASH  disbursements,  usually   in   connection   with
management expenses. FBO disbursements and transfers are  normally  only  by
check.

54.   To receive checks cleared from the bank on the FBO No. I and 2
Accounts and to tape these back into their original checkbooks onto the
check stub.

55.   To collect from the bank a month-end statement on the FBO No. I and 2
Accounts and to reconcile each on receipt.

56.   To tape-total, package and label monthly the  FBO  in-series  vouchers
with a loose set of copies. FBO No. I and No. 2  Accounts  each  have  their
separate voucher series and the vouchers are packaged up separately.

57.   To make  a  full  monthly  financial  report  to  Int  Finance  Office
summarizing all income to and  transfers  from  the  FBO  No.  I  Account-to
include an attached copy of the month-end bank statement reconciled.

58.   To make a full monthly financial report to Int Finance Office
summarizing receipts to and disbursements from the FBO No. 2 Account.

59.   To include with this report a full statement  of  management  expenses
paid locally, categorized as required by Int Finance Office, and to  include
a xerox or carbon copy of all such bills paid and the  voucher  of  payment.
Also  attached  is  a  copy  of  the  month-end  No.  2  Account   statement
reconciled.

60.   To provide the required weekly and monthly  finance  reports  on  time
and with total accuracy so that management and org  solvency  and  viability
can be centrally summarized at the Int Finance Office.

61.   To provide Int Finance Office with a copy of  the  signature  mandates
for each of the FBO accounts and to provide  revised  copies  whenever  such
mandates are changed.

62.   To keep  FBO  accounts  and  funds  completely  secure  at  all  times
including an occasional check on bank  security  to  ensure  that  only  the
authorized signatures are accepted.

63.   To report FBO statistics promptly and accurately to org OIC and to
Continental and Int Finance Office.

64.   To provide Int and Continental Finance Offices with a stat analysis
of the FBO statistics at the end of each stat period.

65.   To know and apply Scientology finance and accounts policies with
regard to allocations to the org and with regard to the FBO's own
accounting admin.

66.   To act as a STABLE TERMINAL for Int and Continental Finance Offices.

67.    To  get  Command  orders  and  finance  programs  DONE  quickly   and
thoroughly and exactly and to include in the Compliance Report exactly  WHAT
was done and the results.

507



68.   To report Div 3 outnesses to FOLO and Flag Org Managers as well as
Int and Continental Finance Offices and to follow up the handling of these.

69.   To pick up and terminatedly handle local finance situations arising,
by application of the related policy. This is by DOING the handling-not
writing despatches.

70.   To make a brief and  concise  weekly  report  of  these,  stating  the
SITUATION and its HANDLING. These weekly reports go to  Continental  Finance
Office for relay to the Int Finance Office. A copy  is  made  for  Flag  and
Continental Data Bureaux.

71.   An FBO  produces  raised  FBO  statistics,  and  orders  and  programs
competently  DONE,  and  reports  completed  accurately  and  on  time,  and
situations handlednot reasons why, and can'ts, and problems.

OVERALL APPROACH

The chief concerns of an FBO are income sources, income  demand  and  income
increase.

It is factually the size of org  income  and  the  increase  of  allocation-
production ratio that determine cash to reserves.

This does not mean that he runs the org via financial management. He does
not.

But he does expect income increase and  an  increased  allocation-production
ratio from what he pays out, and if he doesn't get it, he finds out WHY.  He
finds his WHY in facts and figures, not opinion.

Org Managers can then take all this  up  along  with  other  data  affecting
management.

And if the FP members are well-hatted and the FBO knows  his  job  and  does
it, finance conflicts resolve  and  the  results  are  expressed  in  rising
stats.

L. RON HUBBARD

Founder

Revision written at the request of the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm , 1982

*[Note: CVB = Claims Verification Board]

508



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 19 MARCH 1971RA

      Issue 11

Remimeo     REVISED 14 SEPTEMBER 1981

All Orgs    RE-REVISED AND REISSUED 27 OCTOBER 1982

FBOs

FP Hats     (Cancels and replaces

      BPL 19 Mar. 71.)

Finance Series 7RA

      BEAN THEORY

      FINANCE AS A COMMODITY

(Originally issued as an HCO PL adopted by the Board of

Directors and later reissued by the Board of Directors, this

Source data is hereby correctly reissued by the Founder as an

HCO PL.)

The allocation paid out by Finance to an org or activity must BUY
SOMETHING.

It buys more funds back from the activity than it paid out and it  buys  the
production of that activity.

Finance is best understood as a COMMODITY in terms of beans.

So many beans issued to an activity and so many more beans back.

Beans do not magically materialize into more beans. What  brings  back  more
beans for those issued is the PRODUCTION and INDUSTRY of org staff  and  how
wisely the beans are allocated.

Even the interest one  earns  on  a  bank  account  is  earned  in  fact  by
someone's production and ability to get more beans out of an  activity  than
are put in.

Where Finance uses its beans to buy production and  industry  and  projected
income at a cost which requires the activity to  be  viable,  it  gets  back
more beans and a raised allocation-production ratio.

The first rule of Finance and any activity is INCOME GREATER THAN OUTGO.

Where Finance can skillfully apply this to the divisions  and  personnel  of
an org as well as the org as  a  whole,  the  additional  beans  materialize
because what is bought is production and the products which add  up  to  the
product of raised income and viability.

PRODUCTION

Activities that allocate by need and fail to force and  pay  for  production
are the basis of failed economies and welfare states.

"We need. . ." is taken by Finance with a yawn unless followed at once by  a
projected resulting valuable product or  income  realistically  planned  and
immediately in view.

Finance allocates against proven production and projected income.

The FBO looks at where the beans are going and what  income  and  production
they are buying.

509



When he finds that the beans issued to an area or division  are  not  buying
production or income, he designates a cap-in-hand status to  that  area  and
the beans issued become those essential to product only  until  the  product
emerges in the expected volume and quality.

One org  with  a  soaring  payroll  particularly  in  the  Tech  area  while
delivering less than five auditing hours per auditor per  week  had  all  on
full pay and bonuses. The org had finance troubles and found sums needed  to
promote absorbed instead by high payroll.

How? The org was  on  fixed  pay  (high)  and  gave  only  small  production
bonuses, obligating a high payroll expense without regard for production.

Other errors aside, the Finance error is an absent  demand  that  the  beans
issued to that area buy more beans or valid full capacity production.

A reversal of this, setting low  basic  pay  and  high  production  bonuses,
would have bought production for the beans issued and  where  there  was  no
production would have issued no beans or a bare minimum.

INCOME SOURCES

The apparency that income sources devolve upon certain  single  portions  of
an org leads Finance into difficulty unless the products and subproducts  of
the org and its divisions are fully grasped.

The tracing and reinforcing of income sources, while a necessary  and  vital
action, falls far short of the total action of Finance in its investment  of
beans.

A company receiving income only after the fact of delivery would  appear  to
an inept or unfamiliar Finance person to have DELIVERY as its  major  income
source. If Finance then seeks to raise income  by  forcing  all  beans  into
stepped-up delivery while neglecting the prior promotion  and  sales,  there
is soon no demand and nothing to deliver and NO BEANS.

Income sources traced superficially to  SALES  expertise  alone,  neglecting
promotion and delivery again gives NO BEANS.

A Finance person seeing sales  expertise  as  the  company's  immediate  and
major income source quite rightly issues more beans  to  sales.  But  if  he
leaves promotion and delivery underfinanced,  sales  suddenly  finds  itself
selling an unknown product due to absent prior promotion, and sales made  go
undelivered or poorly delivered or even refunded.

Finance tracing income sources to promotion alone and neglecting  to  follow
up with sums to sales and delivery gives the same result.

Thus, in addition to org income sources, Finance and org managers must  know
the valuable final products and subproducts of the  org  and  its  divisions
and posts in order to wisely allocate funds.

COSTING

Income greater than outgo applies equally to each division and person in an
org,

If Finance is fully familiar with the products of divisions  and  key  posts
of an org and their costing and value  to  the  completed  org  product  and
expected volume or capacity, it can skillfully  apply  income  greater  than
outgo individually to each.

An org has valuable final products for which it collects income.

Each division  and  area  of  the  org  has  a  product  or  products  which
contribute to the whole action which  gets  the  org  product  promoted  and
delivered and the income collected.

How much it costs to produce how much product is the COSTING of  a  division
or org or post.

510



It is not always possible to determine how much  income  a  single  post  or
division contributes to the whole activity.

But one can know to what degree a subproduct is vital  to  the  delivery  of
the org's valuable final product and one can  know  how  much  it  costs  to
produce it. And one can expect each area  and  post  to  be  productive  and
viable as a single activity.

Costing to be real must also take into  account  the  expected  CAPACITY  or
IDEAL SCENE of the activity.

A plant producing at half capacity yet fully  manned  and  running  at  full
expense gives a product which costs twice what it should if the activity  is
to be fully viable and profitable.

A costing of  the  Tech  Division  described  above  would  show  that  with
production at 1/5 capacity, its product cost five times what it should  cost
to be viable as an activity and profitable to the org.

Thus, funds allocated to an activity  by  costing  alone  will  not  buy  or
ensure production or return more beans.

If one were allocating beans by  income  and  products,  he  would  have  to
consider the COSTING of each product, the importance of  each  product  (how
vital it is to the valuable final products of  the  org)  and  the  expected
capacity or volume of each area.

One could juggle these about and assign an allocation value to each  product
and subproduct and key stat.

So many letters out, so much bulk mail out, so many student points and  well
done hours = so much allocation.

Under such a system the FBO would get production and  more  beans  back  for
the beans put in.

The Exec Council* doing FP on such an  allocation  would  shortly  see  what
underproductive areas were causing a  reduced  allocation  and  would  pound
those areas to produce. Likewise, the  activities  of  productive  divisions
and areas would be reinforced by the FP body.

What accomplishes this is NOT Finance acting as org management, but  Finance
applying income greater than outgo to each division and area of the org  and
handling money as a commodity of which one issues so much and gets  so  much
more back.

Finance becomes org management only where it ceases to handle finance  as  a
commodity like beans and where org managers themselves  fail  to  grasp  and
understand financial realities.

LOST INCOME

Financial planning is how one uses the funds one has to keep things  running
well and make more income.

There  is  some  degree  of  loss  in  a  failure  to  prevent  unreal   and
unprofitable expenditure.

Orgs and FP bodies are sometimes improvident in their planning  and  Finance
people are alert for this and have to be because they quite  rightly  expect
beans back plus more for beans expended.

But the greater loss to Finance is income lost or never made.

The difference between what an org should be making and what it  does  gives
Finance greater loss than any FP saving could ever recover.

Foolish or unreal expense is prevented because it's a poor  investment.  But
an org of $50,000 income potential making only $20,000 is a weekly  loss  of
$30,000 to Finance.

511



An org stacking up thousands in collected  but  undelivered  services  gives
Finance a potential and staggering loss in sums refunded.

An org seeking to save ten shillings while neglecting to develop and boom  a
continent doesn't make sense.

One knows the income sources of the org cold and one knows what  subproducts
promote and sell and deliver and collect income.

One puts finance as a commodity first and most into these  and  never  saves
on them except to raise the viability  of  a  vital  division  or  area  not
producing well and then only to raise production.

One seeks new income sources  and  means  while  reinforcing  those  already
successful and reviving any no longer current.

One gets sums already owed to the org collected with industry and in high
volume.

One handles emergencies by making more money and has lined up three or  four
valid income sources each and any one of  which  would  provide  the  needed
funds.

One uses beans to buy raised income and production and  refuses  to  finance
nonproduction or fruitless expense.

One knows cold the costing of vital and other org products and demands  full
capacity production and viability and income  greater  than  outgo  of  each
division and area and post of the org individually.

One predicts and plans for expansion occurring and the  future  adequacy  of
materiel and quality of delivery  before  the  sudden  absence  of  adequate
staff or delivery facilities becomes a screaming urgency.

And one knows that more profit can be lost than ever could be saved on
expense.

Money is a commodity.

It is subject to certain realities. Its realities apply  to  the  whole  org
and equally to the divisions and persons in the org. Its realities  have  to
be fully grasped by Finance and FP members and org managers.

Handled by Finance people as a commodity of which one always gets back  from
an area more than went in it, brings raised income, expansion and reserves.

L. RON HUBBARD

Founder

Revision written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm , 1981, 1982

*[Note: The words "Exec Council" have replaced the words "Ad Council" on
page 511, paragraph 11. This and the signature correction are the only
changes in the text of this HCO PLJ

512



HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

Remimeo     HCO POLICY LETTER OF 8 JUNE 1971RA

FBO Hats    Issue I

Int Finance REVISED AND REISSUED 27 OCTOBER 1982

      Network

            (Cancels BPL 8 June 1971R of same title)

            (Revised to update the original HCO PL

            and to make this a proper HCO PL with

            the full power of policy.)

            (Originally issued incorrectly as

            Finance Series 6.)

Finance Series 8RA

FINANCE OFFICE ACCOUNTS

(R efs:

      HCO PL 29 Jan. 7 1 R  FLAG BANKING OFFICER

HCO PI, 17 Feb. 71 RA  BASIC FBO DUTIES

      Rev. 27 Oct. 82)

Finance Office No. I and No. 2 Accounts are in the local org's name but  are
controlled by the joint signatures of the org FBO  and  Finance  Enforcement
Officer who administer them strictly  in  accordance  with  the  HCO  Policy
Letters which govern their use.

Thus the FBO account names become: FINANCE OFFICE (org name) No.  I  ACCOUNT
and FINANCE OFFICE (org name) No. 2 ACCOUNT.

In the event of  prolonged  absence  of  FBO  or  Fin.  Enforcement  Officer
without deputy, the CO/ED may substitute as joint signer until such time  as
a deputy FBO or Fin. Enforcement Officer can be appointed.

International signatories are

International Finance Director

      JOINT SIGNERS

Int FBO

The checkbooks for these FBO accounts are securely kept by the FBO.

Weekly financial summaries on these accounts are made  up  by  the  FBO  and
sent to Continental and Int Finance Offices. Monthly, quarterly  and  annual
audits on these accounts are the responsibility of Department 9, however  it
also remains a Finance Network responsibility to see  that  these  do  occur
and to personally produce them  in  default  of  Department  9  with  Danger
conditions assigned and enforced if such bypass is required.

TAX AND BALANCE SHEETS

The Finance Office No. I and No. 2 Accounts  are  part  of  org  records  as
regards tax and balance sheet preparations; the No. I  Account  representing
all org income receipts and  transfers  for  org  expenses,  and  management
fees, and the No. 2 Account

513



representing partial payments of management fees by means of local funds
placed at the disposal of Central Management.

While they are org accounts in this regard, both accounts are used entirely
at the discretion of the FBO. They have no part in org cash/bills figures,
and are not considered to be org funds in any other sense than for
accounting purposes.

L. RON HUBBARD

Founder

Revisions written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm , 1982

514



HUBBARD COMMUNICATIO~

      Saint Hill Manor, East Grinstea

HCO POLICY LETTER OF 23 SEP

Remimeo

17130 Hats

Item No. I of

      F130 Hats  IMPORTANT

To be WC 2

      and star-rate

      and in clay.     Finance Series 9

FINANCE BANKING OFFICER PURPOSES

      (His Most Important Policy Letter)

A Finance Banking Officer works  for  the  reputation  of  himself  and  his
network as follows:

"An org with an FBO makes more money and has a better paid staff  and  makes
it more worthwhile for Flag to manage it than any org ever would without  an
FBO."

This reputation is to be earned by the conduct and good sense of the FBO.

Therefore the purposes of the FBO are

1.    To make the org make more money

2.    To give the org a well-paid staff

3.    To make it very worthwhile for Flag to manage and help it.

FBO ABILITY

An FBO must know how to make money.

An FBO must know HOW an org  makes  money  and  keeps  its  reputation  with
excellent delivery.

An FBO must know the policy expertise used in making money.

An FBO must know that "turning down FPs" plays into the hands  of  any  that
wish the org to fail and that forcing in a proper FP allowing for  promotion
and needful actions is the way to defeat counter-intention in the org.

An F130 must know that expenses incurred in  the  future  beyond  the  org's
ability to pay must be halted before the expense is incurred, not after  the
org has been committed.

An FBO must realize that finance control is a primary  point  of  management
authority and that this control must not be locally  developed  to  a  point
where Finance forms a hidden command line, unknown to  management  or  Flag.
The F130 has no authority to permit new acquisitions or obligations  and  no
authority  to  dismiss  personnel  or  cut  off  obligations  without   Flag
Commanding Officer approval. No one  in  the  entire  network  from  top  to
bottom has any authority to change  operating  orders  or  policy  and  must
obtain such authority for specific cases only from those in actual  command,
i.e., Commanding Officer of a Continental Liaison Office or  the  Commanding
Officer of the Flag Bureaux as major changes affecting  basic  planning  are
command decisions. (Proper, future contracts, staff hiring  and  dismissals,
basic changes in the FP No. 1 of an org, are all command decisions,  not  to
be made in the F130 network. Things that are any future risk at all  require
authority from the Flag Bureaux.)

515



An FBO should realize that he is well backed up and that  his  warnings  and
suggestions are usually authorized by command channels.

An FBO must realize that one can pass endless regulations regarding  finance
to block off  efforts  to  escape  from  old  regulations  (as  witness  tax
people's problems), and that all new regulations will also be  escaped.  The
FBO  to  handle  this  should  work  instead  to  bring  understanding   and
cooperation into the org in matters of finance.

The FBO must know that lack  of  Word  Clearing  and  hatting  will  make  a
financially irresponsible org  and  must  see  that  Word  Clearing  on  all
finance policies occurs both in himself and in the org.

The FBO in doing his duty must work always to earn the  reputation  set  out
and postulated at the beginning of this policy letter.

L. RON HUBBARD

Founder

LRH:nt.rd.gm

516



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 22 OCTOBER 1971RC

Remimeo     REVISED 9 JUNE 1979

All Execs   RE-REVISED 27 OCTOBER 1982

Staff Hats

FBO & Finance

Enforcement Off Hats

Div 3 Hats  (Re-revised to align with

FP Packs

GO Legal    the new Finance Network.)

Finance Series 10RC

PURCHASING AND CHECK-SIGNING LINES MODIFIED

(Adds to existing purchasing and check-signing policies)

The effectiveness of financial control in orgs depends  primarily  upon  the
degree to which financial and income-making policies are known  and  applied
by FP members, FBOs and Treasury personnel.

However,  the  effectiveness  of  the  administrative  lines  which   govern
purchasing and bills payment is also a vital factor.

Unless these lines are sharply IN, the FBO and Finance  Enforcement  Officer
and execs can be working  full  ahead  to  ease  the  org  out  of  a  tight
financial situation only to find new bills arriving  that  nobody  heard  of
before or that a printing press has just been ordered by the  new  purchaser
because "somebody told him to"!

When an org has reached a low cash/high bills situation, it  may  take  many
months of careful planning to restore income and solvency.

And even when things are going well, the purchasing and bills  paying  lines
must be held under firm control to keep it that way.

Therefore, the following shall apply fully to all Sea Org and Scientology
Orgs, and

FOLOs:

1. All letterhead stationery in use by the Treasury Division must  bear  the
following statement:

"ANY EXPENSE COMMITTED IN THE NAME OF  THE  CHURCH  MUST  HAVE  THE  WRITTEN
AUTHORIZATION OF THE TREASURY SECRETARY  OF  THE  CHURCH  TO  BE  CONSIDERED
VALID AND PAYABLE BY THE CHURCH."

The word "organization" may be substituted for "Church"  in  any  org  where
corporate status may require it.

2. Every firm with whom the org does business and every new  firm  contacted
for purchasing or pricing must at once receive a letter  from  the  Treasury
Secretary using this letterhead and introducing by name  those  persons  who
are authorized to make purchases.

3. Such letters must promote our excellent credit standing and  should  make
clear that the persons named are the ONLY  persons  authorized  to  purchase
goods or services for the company.

517



This serves to make company policy known and prevents  random  persons  from
running up bills.

4.    Every personnel change within the org which causes a change of
authorized

purchasers must be followed at once by new letters to all firms advising of
the fact.

5. All expense commitment is by written order prepared by Dept 8, signed  as
authorized by the Treasury Secretary, and shown to the business firm at  the
time of purchase.

6. The Treasury  Secretary  in  signing  such  orders  must  see  the  valid
PURCHASE ORDER for each item ordered.

7. Expenses such as  utilities  and  postage  and  occasional  others  which
cannot be handled  in  this  manner  are  nonetheless  covered  by  ordinary
purchase orders or estimated purchase orders (EPOs).

8. All purchasing lines are routinely spot-checked by  the  FBO  or  Finance
Enforcement Officer for  application  of  this  policy  letter  and  results
reported to International and Continental Finance Offices.

9. Long-distance phone and other such  services  can  become  an  unexpected
source of sudden expense increase unless HCO requires a signed PO  for  each
long-distance call as required by HCO PL 15 May 1970, PURCHASE  ORDERS,  and
other utilities are watched for sudden increase.

10. All check signing on the org Main Account will be done  once  weekly  by
usual signatories and in the presence of the  FBO  and  Finance  Enforcement
Officer. All checks must be tape-totaled and petty cash amounts limited.

The HCO Book Account is excepted in that Book Account checks may  be  signed
at any  time  and  the  FBO-Finance  Enforcement  Officer  presence  is  not
required. Instead the D/FBO  for  M.O.R.E.  is  a  mandatory  signatory  and
checks on this account may  be  signed  at  any  time  with  the  D/FBO  for
M.O.R.E. held responsible to inspect Book Account records and the  state  of
the bookstore, bookstocks  and  book  sales  to  ensure  that  Book  Account
policies are being fully adhered to, including correctness of expenditures.

FSM Account checks are also exempt from the once a week  check-signing  rule
as FSM commissions must be paid instantly. Signing is by any  two  available
per-policy signatories.

11. The FBO and Finance  Enforcement  Officer  in  carrying  out  this  duty
ensure that all check-signing and dateline policies  are  applied  and  that
all checks being signed have been properly authorized and do not exceed  the
org's allocation and, in the case  of  FSM  commissions  and  refunds,  that
covering amounts have been transferred to the  applicable  org  accounts  by
the FBO so that org cash/bills is not falsely affected.

12. Current and unused checkbooks for the org bank accounts are kept by  the
FBO in his safe and are issued to the  Treasury  Division  only  for  weekly
reconciling, check preparation and the return of canceled  checks  to  their
check stubs.

The HCO Book Account and FSM Account are excepted in that current  HCO  Book
Account checkbooks are kept by the D/FBO for M.O.R.E. in his  safe  and  the
current FSM Account checkbook is held  by  the  Treasury  Secretary  in  his
safe. Unused Book Account and FSM Account checkbooks  may  be  kept  by  the
FBO.

13. These policies may not be used in any way to delay valid  purchasing  or
bill payments but must be applied so  that  no  delay  occurs  and  so  that
financial admin lines are strengthened and made more secure.

518



14. The enforcement and application of these policies is the responsibility
of the Treasury Secretary, who must personally groove them in with Dept 8
and again on any change of personnel. The FBO and Finance Enforcement
Officer are responsible for performing actions assigned them in this policy
letter.

L. RON HUBBARD

Founder

Revision written at the request of the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm Copyright C) 1971, 1979, 1982

519



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 9 MARCH 1972R

Remimeo     Issue I

FBO Hat     REVISED 4 AUGUST 1983

Hatting Officer to

      M4, star-rate and

      have clay dernoed

      by FBO

            Finance Series 11R

      INCOME FLOWS AND POOLS

      PRINCIPLES OF MONEY MANAGEMENT

      (This PL corrects any earlier PL where

      there is any difference or conflict.)

      (Revised to update and expand definitions)

POLICY

If a management unit such as a bureaux, a Continental Liaison Office, an  OT
Liaison Office or any agent thereof such as a Guardian or FBO  or  Flag  Rep
is any good, THE NEAREST SERVICE ORG  WILL  MAKE  AMPLE  MONEY  TO  PAY  the
managing unit and HAVE LOTS LEFT OVER TO SWELL Sea Org reserves.

Therefore if the managing unit or activity next to a Central Org or  service
org is "in funds" or "without funds," it is a  direct  index  of  management
quality as expressed in the stats of the nearest service org,

MAJOR ORG

For an OTL, the term CENTRAL ORG must have active use as  applied  to  their
nearest major org.

For a CLO, an AOLA or AOSH is the nearest org, therefore its major org.

For Flag and top management, the Flag Service Org  is  the  nearest  service
org when considering financial support.

FLOWS

An OTL or CLO or bureaux must manage lesser orgs so they build up  a  public
that (1) services locally with these lesser orgs and (2) FLOWS CUSTOMERS  TO
THE MAJOR ORG.

Thus field auditors-missions-small orgs-CENTRAL  ORGS-SHs-AOs  is  THE  FLOW
LINE without which the Central Org or top org will go broke,

If these lesser activities are kept prosperous and  flowing  persons  upward
via  the  FSM  system  and  other  systems,  THE  LOCAL,   CONTINENTAL   and
INTERNATIONAL management units WILL BE IN CLOVER.

If this flow line is not made to operate that way, all will be awful. If  it
does operate that way, all will be well.

A CENTRAL ORG, THEREFORE, MUST GIVE HIGHER (IN  TYPE)  AND  BETTER  SERVICES
THAN FEEDER ORGS.

An AO must give higher, better services than an SH.

Flag services must be higher in class than an AO's.

DEFINITIONS

Lack of precise definition as to what is income and what is  "reserves"  has
caused  trouble  in  identifying  activities  and  in  this  flow  line   of
management and income.

The main trouble it has caused is that a management unit, not having
precise

520



definitions and not knowing the flow lines (as above), reaches  out  to  the
wrong "finance pools" for their support.

(Examples: A Continental CLO tried to live on  management  10%s  which  were
not theirs [UKLO '71]. A CLO let the nearby AOSH go down and tried  to  live
off Flag [USLO '7 1 ]. A CLO let an  AO  go  down,  ignoring  it  completely
while building up only its most distant org [USLO '71]. A Div III would  not
collect actively on huge debts because it could borrow from  reserves  [Flag
Admin Org '71]. An OTL ignored its nearby CENTRAL ORG  and  kept  trying  to
get its support from its CLO [ANZO '7 1 ]. The earliest example was  a  navy
admiral [Scoles] running the LA Foundation into the ground in  1950  because
he thought it should be supported by Elizabeth, New Jersey.) The WHY of  all
these was lack of understanding of flow lines, and  lack  of  definition  of
income,  expenses  and  reserves  as  different,  precise  money  pools  and
different types of orgs.

DEFINITIONS

The  following  is  a  summary  of  key  terms  used  regarding  Church   of
Scientology finances. They refer to  ecclesiastical  management  matters  as
they relate to finances of types  of  activities  or  areas.  They  are  not
intended to define the corporate structure of the Church.

THE  SEA  ORG:  The  elite  religious  fellowship  within  the   Church   of
Scientology. The Sea Org  is  not  incorporated  and  is  not  part  of  any
corporation. Its  membership  is  involved  in  Church  management  and  the
delivery of the higher level services of the Church.

INTERNATIONAL MANAGEMENT- Consists of the International  Watchdog  Committee
and the International Management Executives (Exec Strata)  and  those  units
DIRECTLY attached to them such as the international office  of  the  Finance
Network.  WDC  covers  SECTORS  (entities  such  as   Scientology   Missions
International, Sea Org Orgs, Class IV Orgs, FSO, etc.) and is essentially  a
policing and inspection organization which makes sure  things  get  MANAGED.
The Executive Strata (and ED International) does not run  orgs;  it  handles
the FUNCTIONS that orgs do. without regard to entities but  coordinates  the
functions in them.

FLAG: The main vessel of the Sea Org. Historically, the  word  "Flag"  means
the Flotilla Commanding Officer and his personal staff and  is  of  timeless
usage and is not new. When the operations and crew of Flag are stationed  on
land, the term is sometimes  modified  to  "Flag  Land  Base."  It  consists
primarily of a management organization  (Flag  Bureaux),  a  public  service
organization giving the highest levels of services (Flag  Service  Org)  and
an estates organization servicing public and crew.

FLAG SER VICE OR G: The main public  service  organization  located  at  the
Flag  Land  Base.  It  is  part  of  the  corporation  known  as  Church  of
Scientology Flag Service Org.

FLAG BUREAUX: The management body located at the Flag  Land  Base  which  is
responsible for the management of the Flag Service Org (FSO), Sea  Org  Orgs
and

Class IV service orgs. It is basically  a  tactical  unit  running  orgs  on
evals done under upper echelons and  is  an  execution  arm  for  top  level
management. It operates through FOLOs (Flag Operations Liaison Offices).  It
is  part  of  the  Mother  Church,   i.e.,   the   Church   of   Scientology
International.

CONTINENTAL LIAISON OFFICE (CLO): The SO office of a continent that  manages
that continent. A CLO contains combined representatives  of  all  management
entities (e.g., SMI, GO, etc.) represented as departments on the  org  board
and has a department which is a FOLO acting as the management  link  between
the FB (Flag  Bureaux)  and  the  orgs  managed  by  the  FB.  A  CLO  would
coordinate all management  units  for  that  continental  area.  Continental
Liaison Offices are themselves put there and made to run  in  a  coordinated
manner by WDC.

FLAG OPERATIONS LIAISON OFFICE (FOLO): A department in  a  CLO  which  deals
with the execution of planning and programs issued to it by or  through  the
Flag Bureaux. Their major purpose is to see that Flag  planning  becomes  an
actuality in orgs in their zone of responsibility. The FOLO sees  that  orgs
are put there and manages them.

521



OPERA TION- TRANSPORT LIAISON OFFICE (OTL):  The  branch  office  of  a  CLO
managing the area or orgs assigned to it.

SCIENTOLOGY   MISSIONS    INTERNATIONAL    (SMI):    Scientology    Missions
International is a church which acts as the Mother Church for  missions  and
is responsible for  the  direct  management  of  the  mission  network.  SMI
missions pay tithes, a portion of  which  is  used  for  SMI  expenses.  SMI
reserves are part of SO reserves.

INTERNATIONAL FINANCE NETWORK The International Finance Network  is  located
directly under WDC. This network is  responsible  for  seeing  that  finance
policy in the Church  is  adhered  to;  that  organization  assets  such  as
marketing,  meters,  books,  tapes,  cassettes,  insignia  and   films   are
safeguarded and utilized to drive business down on  the  orgs;  seeing  that
org staff are well paid; seeing that as a result of making orgs  prosperous,
management is well paid, and is entrusted with safeguarding  and  increasing
Church reserves. It has representatives in continental areas and  orgs.  Its
overall objective is to see that there is an abundance of SO reserves,

THE CONTINENTAL FBO: The Flag Banking Officer  and  office  engaged  in  the
financial management of a continental area. He is part  of  the  Continental
Finance Office headed by the Continental Finance Director.

ORG FLAG BANKING OFFICER: The FBO attached to  an  org  to  help  manage  it
financially. He is under the Continental FBO.

SO RESERVES: Often miscalled "Flag reserves" or "management reserves"  which
they are NOT. SO reserves are the amount of money collected over  and  above
expenses that is sent by various units (via FBOs and  the  Finance  Network)
to central reserves bank accounts of Scientology  corporations  and  trusts.
It is used for purposes assigned by the boards of directors or  trustees  of
such corporations and trusts and for NO OTHER PURPOSE.  These  are  normally
employed for periods of  stress  or  to  handle  situations.  They  are  NOT
profit. It is not support money  for  "Flag"  or  "management."  It  is  not
operating money (Examples: Huge sums were required to cover  WW  when  under
attack and to catch the PUBS 1970 crash.)

CENTRAL RESERVES: Funds collected over and above expenses that are  held  in
reserve in bank accounts  of  Scientology  corporations  and  trusts.  Often
called SO reserves.

INTERNATIONAL   MANAGEMENT   INCOME:   The   total   money   collected   for
international management and Flag Bureaux management services  and  products
whether paid directly or to Scientology reserves trusts. It  includes  funds
collected for training and processing delivered  by  international  training
orgs and billings for missions, promo,  etc.  A  portion  of  this  goes  to
support management operations and the remainder, and major portion, goes  to
central reserves.

INTERNATIONAL MANAGEMENT EXPENSES: Total of all expenses  for  international
management and Flag Bureaux activities including  comm,  missions,  training
programs, promo, crew welfare plus any other costs  of  units  connected  to
and supported by international management bodies.

CLO INCOME: A CLO is supported by funds from its nearest major service  org,
by tours and Flag Service Consultant commissions and  by  such  services  to
orgs and other activities as training and packs. A maximum  of  10%  of  the
CGI of the major org should be more than adequate to support the CLO, as  it
should be making far more from its other income sources; and  since  if  the
CLO is any good at management at all, the income will be high in that  major
org. A CLO is expected to send far more to SO reserves than it consumes.

CLO EXPENSE: The total of all expenses for the operation of the CLO and  any
units attached to it including mission expenses and comm.

OTL INCOME: The same as for a CLO. It should be supported by  a  maximum  of
10% of the CGI of  its  nearest  major  org  plus  tours  and  Flag  Service
Consultant commissions and income for other services provided  to  the  orgs
in its area of responsibility. If it is any good, it will boom  the  nearest
major org and others as well. It has to boom others so they  will  feed  the
nearest major org. It is expected to send far more to SO  reserves  than  it
consumes.

522



OTL EXPENSES: The same as  a  CLO  but  for  its  own  and  attached  units'
expenses only.

CLO1OTL RESERVES: Any reserves that may be built up locally through  salvage
of former allocations or from current allocations.

CONTINENTAL FINANCE OFFICE EXPENSE: The Continental Finance  Office  expense
is paid by the CLO to which it is attached. Thus it must  make  lines  flow.
It collects for SO reserves and management units.

FBO LOCAL EXPENSE: Paid by the org to which the FBO  is  attached.  The  org
FBO collects for SO reserves and management units.

LOCAL OR G RESER VES: The reserves built up by an  org  through  salvage  of
former allocations or from current allocations.

GOVERNING POLICY

The governing policy of finance is to A. MAKE MONEY.

B. Buy more money made with allocations for expense  (bean  theory).  C.  Do
not commit expense beyond future ability to pay.

D. Don't ever borrow.

E. Know different types of orgs and what they do.

E     Understand money flow lines not only in an org but org to org as
customers flow

upward.

G.    Understand EXCHANGE of valuables or service for money (PL Exec Series
3

and 4). H. Know the correct money pools for any given  activity.  1.  Police
all lines constantly. J. MAKE MONEY. K.  MAKE  MORE  MONEY.  L.  MAKE  OTHER
PEOPLE PRODUCE SO AS TO MAKE MONEY.

A small sack of beans will produce a whole field  of  beans.  Allocate  only
with that in mind and demand money be made.

A finance management which does not  understand  and  USE  these  principles
will be like a driver who hasn't the tech to drive a car.  He'll  wreck  it,
or not driving it at all will have no transport.

Money is a tech. IT FLOWS. Although one dollar looks  like  another  dollar.
they may be from completely different places and mean  completely  different
things.

L. RON HUBBARD

Founder

Revision written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

      Adopted as official

CSI:LRH:iw.gm    Church policy by the

, 1983      CHURCH OF SCIENTOLOGY

      INTERNATIONAL



523



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 12 MAY 1972R

Remimeo     REVISED 27 OCTOBER 1982

Int Finance

      Network for

      Enforcement

            (Revised to update the distribution

            in light of the new Finance Network)

ETHICS

                            Executive Series 13R

                             Finance Series 12R

                            Personnel Series 25R

PTS PERSONNEL AND FINANCE

PTS means Potential Trouble Source. This is a person who is connected  to  a
suppressive person, group or thing. (For further data on  PTSness  see  HCOB
24 Nov. 65, SEARCH AND DISCOVERY and HCO PL 27 Oct.  64  (reissued  23  June
1967),  POLICIES  ON  PHYSICAL  HEALING,  INSANITY  AND  POTENTIAL   TROUBLE
SOURCES.)

NCG means No Case Gain despite good and sufficient auditing.

A chronically ill person, whether the person is known to be connected  to  a
suppressive or not, is always found to have been so connected and PTS.

IT IS UNSHAKABLE POLICY HEREAFTER THAT NO PERSON WHO IS PTS  OR  CHRONICALLY
ILL OR WHO GETS NO CASE GAIN MAY BE ON FINANCE OR REGISTRAR LINES OR IN  TOP
COMMAND POSTS OR AS HAS OR ETHICS OFFICER OR MAA.

TECHNICAL FACT

A person who is connected to a  suppressive  person,  group  or  thing  will
dramatize a "can't have" or an "enforced overt have"  on  an  org  or  staff
members.

A "can't have" means just that-a depriving of substance or action or
things.

An "enforced overt have" means forcing upon another a substance, action,  or
thing not wanted or refused by the other.

The  technical  fact  is  that  a  PTS  person  got  that  way  because  the
suppressive was suppressive by depriving the  other  or  enforcing  unwanted
things upon the person.

The PTS person will dramatize this characteristic in reaction to the
suppression.

Therefore, a PTS person  as  an  ED,  C/O,  Product  Officer,  Org  Officer,
Treasury Sec, Cashier, or Body Reg will run a can't have on the org and  its
staff by

a.    Refusing income

b.    Wasting income made

524



C.    Accepting wrong customers (like psychos) and forcing them on the org

d.    Fail to provide staff or service

e.    Advocate overt products.

HISTORICAL

When staffs went on proportionate pay in the late 1950s, so long  as  1  ran
the orgs directly, the staffs made more money than before.

When 1 moved off these lines directly, the  staffs  began  to  receive  less
money personally.

At that time it seemed to me that proportionate pay served as an  excuse  to
some in an org to run a can't have on the staff.

We knew that some Registrars could take money in  easily  and  others  never
seemed to be able to.

The technical reason for this has just emerged in another line of research
entirely.

In completing materials and search on Expanded Dianetics, 1 was  working  on
the mechanism of how a PTS person remained ill.

1 found suppressives became so to the person by running a "can't  have"  and
"enforced overt have." This pinned the PTS person to the suppressive.

Working further I found that a PTS person was a robot  to  the  suppressive.
(See HCOB 10 May 1972, ROBOTISM.)

This research was in the direction of making people well.

Suddenly it was apparent that a PTS person, as a  robot  to  SPs,  will  run
"can't haves" and "enforced overt haves" on others.

Checking rapidly, it was found that where finance lines  were  very  sour  a
PTS person was on those lines.

RECOVERY

PTS tech, Objective Processes, PTS Rundowns, Money  Processes  and  Expanded
Dianetics will handle the condition.

However, one cannot be sure that it has been handled expertly in orgs  where
a money "can't have" has been run as its tech quality will be low due to  an
already existing lack of finance.

Only stats would tell if the situation has been handled fully.

Thus the policy stands. Handled or not handled, no person who is PTS or  who
has no case gain will  be  permitted  in  top  command  or  any  lines  that
influence finance.

Any org which has consistently low income  should  be  at  once  suspect  of
having PTS or NCG persons on the key finance posts, and an immediate  action
should be taken to discover the  PTS  or  NCG  condition  and  replace  such
persons with those who are not connected to suppressives or who do get  case
gain.

Nothing in this policy letter permits any PTS person to  be  in  an  org  or
cancels any policy with regard to PTS.

This policy letter requires direct check, close investigation and handling
of PTS or

525



SP situations on these posts that may go undetected otherwise.

NOTHING IN THIS POLICY LETTER PERMITS ANY KEY ORG POST TO REMAIN EMPTY.

NATIONAL

As a comment on something that may impinge on orgs and  might  affect  them,
the FOREMOST reason for a failing national prosperity  and  inflation  is  a
personal Income Tax agency. This runs a vicious can't have on every  citizen
and makes them PTS to the government. Individuals even begin to run a  can't
have on themselves and do not produce.  This  IS  the  cause  of  a  failing
national economy. It can be a factor in an org and must be  handled  on  the
individuals so affected.

L. RON HUBBARD

Founder

Revision written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm , 1982

[Note: In addition to the updated distribution, the first paragraph of this
policy letter has been revised. That paragraph in the original policy
letter read as follows: "PTS means Potential Trouble Source. This is a
person who is connected to a suppressive person, group or thing. (For full
information on PTS see HCO PL 31 May 1971, Issue IV, revised 5 May 72, a
checksheet.)"I

526



[Note: The following issues, which were not written , have been canceled:

Finance Series 13

HCO Pl, 3 June 1972, Finance  Series  13,  PROMOTION  ALLOCATIONS  has  been
canceled by SPD 41.  Finance  Series  13  Canceled.  BPL  24  FEBRUARY  1977
CANCELED. dated 27 Oct. 1982.

Finance Series 14RB

Finance Series 14RB Addition

BPL 6 Jan. 1976, Finance Series 14RB, FLAG EXTERNAL EXPENSES and BPL 6  Jan.
1976-1, Finance Series 14RB  Addition,  FLAG  EXTERNAL  EXPENSES  have  been
canceled by SPD 67, FINANCE SERIES 14RB AND 14RB ADDITION  CANCELED  -  FLAG
EXTERNAL EXPENSES AND FLAG EXTERNAL EXPENSES - ADDITION CANCELED,  dated  28
Dec. 1982. The data in Finance Series 14RB and 14RB Addition is  covered  in
Int Finance ED 25, FLAG EXTERNAL EXPENSES, dated 29 Oct. 1982.

Finance Series 15R

      BPL 8 Mar. 1973R, Finance Series 15R, PROMOTION has been canceled by
SPD 40, Finance

Series 15RA, CANCELLATION OF "PROMOTION," dated 27 Oct. 1982

Finance Series 16R

BPL 10 Nov. 1973R, Finance Series 16R, FBO NETWORK ORGANIZATION LOCATION
has been canceled by SPD 38, Finance Series 16R Canceled, FBO NETWORK
ORGANIZATION LOCATION, dated 27 Oct. 1982.]

527



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 20 OCTOBER 1978

Remimeo F130s AGFs All FP Members

Finance Series 17

TWO-BIT FP

A two-bit FP consists of lots of little items, but none of them will make
you any money.

I first ran into this in the UK. Orgs would buy a whole bunch of 25 bob
purchases and the FP would add up to 25,000 pounds.

You can put together a whole slew of two-bit purchases and they add up to
thousands of dollars without making any beans.

FP is not "how do we get some money from the finance authorities?" FP is
"how do we stay solvent?"

L. RON HUBBARD

Founder

LRH:pb.dr.gm

528



[Note: The following HCO PLs, which were not written , have been canceled:

Finance Series 18RA

HCO PL 28 Sept. 1979RA, Finance Series 18RA, INTRODUCTION TO THE NEW
FINANCE SYSTEM has been canceled by SPD 39, CANCELLATION OF FINANCE SERIES
18RAINTRODUCTION TO THE NEW FINANCE SYSTEM, dated 27 Oct. 1982.

Finance Series 19RA

HCO PL 28 Sept. 1979RA, Finance Series 19RA, FBO AND TREASURY WEEKLY
REPORTS has been canceled by SPD 42, FBO AND TREASURY WEEKLY REPORTS-THE
NEW FINANCE SYSTEM-CANCELED, dated 27 Oct. 1982.

Finance Series 20RA

HCO PL 28 Sept. 1979RA, Finance Series 20RA, FINANCIAL PLANNING PROGRAM
NUMBER I has been canceled by SPD 13, Finance Series 20RA Canceled,
FINANCIAL PLANNING PROGRAM NUMBER 1, dated 11 Apr. 1982.

Finance Series 2IR

HCO PL 28 Sept. 1979R, Finance Series 21R, FINANCIAL DICTATORSHIP-WHAT IT
IS AND HOW IT WORKS has been canceled by SPD 43, Finance Series 21R
Canceled, FINANCIAL DICTATORSHIP - WHAT IT IS AND HOW IT WORKS, dated 27
Oct. 1982.

Finance Series 22RA

HCO PL 28 Sept. 1979RA, Finance Series 22RA, USAGE OF ORG BANK ACCOUNTS has
been canceled by SPD 44, Finance Series 22RA Canceled, USAGE OF ORG BANK
ACCOUNTS, dated 27 Oct. 1982.

Finance Series 23R

      HCO PL 28 Sept. 1979R, Finance Series 23R, FBO NETWORK STATISTICS has
been canceled by

SPD 45, Finance Series 23R Canceled, FBO NETWORK STATISTICS, dated 27 Oct.
1982.1

529



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 28 SEPTEMBER 1979R

Remimeo     Issue XII

FBOs

Treasury Secs    (CANCELS AND REVISES

EDs/COs

Board Finance    HCO PL 28 SEPT. 1979, Issue XII,

      Officers   FINANCE SERIES 24, SPECIAL INCOME HANDLING.)

Registration

      Personnel

            Finance Series 24R

SPECIAL INCOME

There is a type of income called "special  income."  It  is  huge  lump  sum
income that might have to be returned. It  can't  be  immediately  delivered
and consequently can't be included in the CGI. It does count on the  org  GI
but must be deducted as part of the computation of  CGI  on  the  allocation
form.

The crux of special income is that it is huge lump sum income for  something
that the org cannot now (and may not be able to in the future) deliver.

There are many possibilities of what could be classified as special  income.
A few of these are

A. A huge sum donated for the training of staff for a yet to be  established
organization. The liability being that the funds  may  be  requested  to  be
returned as "unused" before such organization comes into being.

B. A huge sum donated for services which the organization does  not  deliver
currently or which it may not deliver in  the  future.  A  specific  example
could be someone wishing to  donate  to  an  organization  for  upper  level
services  which  he  hopes  may  be  deliverable  in  the  future  at   that
organization.

C. A huge donation for an unspecified service or services.  For  example,  a
person donating his life savings  to  Scientology  without  having  specific
services in mind but simply feeling it to be the best place for  his  money.
The org could then possibly be in a position of not being  able  to  deliver
fully and in the future might be in a position where the person or even  his
estate would request the funds back for services at a higher org or  any  of
a number of other things.

D. Variations and other possibilities exist.

The way special income is handled is by subtracting it from the  org  GI  in
the CGI calculation and depositing it in a special account by  the  org  FBO
specifically for this purpose. This account is to be known  as  the  Finance
Office No. 3 Account. The signatories on this account are the  same  as  for
the Finance Office No. 1  and  2  Accounts.  The  "special  income"  account
should be a high-interest-bearing account.

When an org FBO receives "special income" for deposit he should  notify  the
Reserves ED in the International Finance Office of the amount received,  its
designated use and any other specifics connected with the matter.

Funds received and deposited as above are not considered  org  reserves  and
may not be used for anything until the  org  delivers  service  against  it.
Once the org delivers service  against  the  "special  income,"  the  amount
delivered (and only the amount delivered) is added to that  week's  CGI  for
the org and is available for allocation, while leaving  the  remainder  (the
undelivered portion of the "special income") in the  Finance  Office  No.  3
Account. Any interest accrued is to be sent by the FBO to reserves.

530



If "special income" is actually treated as special income as above, then
all will be well. If it is not handled in this manner, it can cause endless
trouble for an organization.

So treat these funds for what they are and it will make things smooth for
both the organization and the public concerned.

L. RON HUBBARD

Founder

Revision written at the request of the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm , 1982

531



mmr~

                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 28 FEBRUARY 1980

Remimeo

                                Org Series 41

                              Finance Series 25

                             Executive Series 21

PRODUCTION AND ONE'S STANDARD OF LIVING

References:

BPL   19 Mar. 71 Finance Series 7

            BEAN THEORY-FINANCE AS A

            COMMODITY

HCO PL 9 Mar. 72 1     Finance Series I I

            INCOME FLOWS AND POOLS

            PRINCIPLES OF MONEY MANAGEMENT

HCO PL 27 Nov. 71      Exec Series 3

            MONEY

HCO PL 3 Dec. 71 Exec Series 4

            EXCHANGE

FEBC Tapes

(NOTE: I realize that management units, orgs and staffs  are  daily  pounded
with false economic data. The real facts of life  collide  with  much  false
data. Such crippling  data  comes  from  many  sources-school,  advertisers,
government, bankers, propagandists, even parents who insisted  Johnny  be  a
doctor so he could "live well" or set a horrible  example  themselves.  Many
have had a hand in messing up people's wits on the subject. It is  a  factor
in inhibiting the individual prosperity of  executives,  staff  members  and
orgs. Where an area is not prospering, this PL should be  starrated  on  its
people and the false data they have on this subject stripped  so  that  they
then can prosper as they should.)

"Standard of Living" can be defined as the relative quality  of  a  person's
or group's possessions, quarters, food, equipment, tools and  conditions  of
their area of work and existence. It is the state of  the  person's  living,
including working, environment. Where its potential  continuance  exists  it
is related to survival. It is a basic natural  economic  law  that  personal
production of VFPs and one's standard of living are intimately related.

This applies to the individual as well as the team,

Where violations occur, inequities exist.

At a personal level one must produce in excess of  his  standard  of  living
just to retain and maintain it.

Actually, the "excess" means that  because  of  overload,  taxes,  services,
plant, utilities, raw materials, machine and other costs additional  to  his
own work sphere, a person cannot expect to get the full value  of  his  VFPs
all to himself. That is not economically feasible. The "excess" varies  from
post to post and job to job but is never less than 5X minimum.  In  industry
it is considered to be at  least  1OX  to  maintain  company  standards  and
solvency. The "excess" can be very high indeed in some

532



industries. But in any case any idea that  it  should  be  one  for  one  is
fatal. People who know little of economics or management  sometimes  propose
a worker should get the full value of his VFPs-but all  work  and  all  VFPs
require support services  and  to  neglect  these  would  quickly  bring  on
poverty. Even when working for oneself alone, these "excess"  factors  exist
and seldom drop below 5X as one still requires support  services.  Corrected
gross income divided by staff has  to  be  at  least  5X  the  cost  of  the
standard of living of the individual staff member for that  standard  to  be
barely maintained. This does not mean  staff  pay  should  be  1/5  of  that
figure.  It  means  that  all  the  things  (pay  included)  that  go   into
maintaining their welfare and work environment would have to be  covered  by
1/5 of that figure. A fairly efficient and prosperous  org  with  a  hatted,
industrious, gung  ho  staff  can  very  easily  maintain  quite  acceptable
standards at 1/10 that figure. The actual cash value of every piece of  work
done by a person can actually be calculated. It is intricate and  tricky  to
do and much subject to over and under estimation but it can be done.  It  is
not vital to do this but one might just be curious about it. If  so,  do  it
for yourself. Thus VFPs can be priced against what they bring in as part  of
the overall scene even when they seem indirect. All the  above  figures  are
very rough and subject to variation but this gives you some idea of what  is
meant by 66excess" in that law.

Where a number of people in a group or on a team  do  not  produce  VFPs  in
excess of their standard of living they depress the standard  of  living  of
the group or team.

Where some in a group do  not  only  not  produce  VFPs  but  produce  overt
products, they actively depress the standard of living of everyone  in  that
group or on that team.

Many economists and theorists seek to avoid that law. They do it to  gratify
politicians or aggrandize  some  false  philosophy  whose  true  purpose  is
suppression under other colors.  But  the  law  remains  and  its  violation
breeds an epidemic of economic ills. Amongst such ills are inflation,  super
bureaucracy, chaos with the marketplace and a decay of the civilization.

When a whole society demands a high  standard  of  living  and  yet  doesn't
concentrate on the personal production of VFPs, it is finished.

Products are the basis of a standard  of  living.  They  don't  appear  from
midair. They come from work truly done. Not from hope or false data.

It is a druggie's dream that machines,  computers,  under  the  dictatorship
will do it all. Machines can raise a standard  of  living  by  assisting  in
production. But they can't do Man's living for him.  Intelligently  designed
and used, they permit, within limits, increases in population. But  machines
are just tools. They have  to  be  thought  up,  designed,  built,  run  and
serviced and their raw materials and fuel have to  be  found  and  delivered
and their products  promoted,  delivered,  used  and  often  in  their  turn
serviced. The machine age was  actually  recognized  as  failed  when  world
leaders first began to urge population reduction on the planet  to  "improve
the individual standard of living." If machines were going to solve  it  all
why is the civilization now in such a steep decline? It took  producing  men
working in and with a machine age to make the society go. Not idle  mobs  on
welfare expecting a high standard of living while  a  few  guys  work  their
guts out. Pie in the sky is nice but did anyone ever get  to  eat  it?  This
misinterpretation of the machine age was a  heavy  violation  of  the  above
economic law. But the real harm of the machine  age  was  creating  a  false
belief that one did not have  to  produce  much  to  survive.  This  lowered
people's estimate of how much they  would  themselves  have  to  produce  to
survive, much less have a high standard of living.  Factually  one  normally
has to work fast and  expertly  and  in  high  volume  to  bring  about  any
acceptable standard of living for himself and his group.  This  is  a  point
the machine age obscures. But it remains vividly and demonstrably true.

An executive who works hard yet  wonders  about  his  own  low  standard  of
living should look over his people to find those who are not producing  VFPs
or who produce even overt products while yet demanding a  living.  They  are
absorbing the potential raised standard of living of the group.

533



Where a group has a very low standard of living, it  need  only  review  the
above law and its potential violations to understand why.

One cannot, in fact must not, increase the standard of living of a group  in
ways that violate the above law. It will eventually bring calamity  on  that
group.

In a society led astray by crackpot economics, violations of the  above  law
create a vast number of wrong examples. The rich (most  of  whom  work  like
mad) are seen as idle or even criminals. The best way of  life  is  made  to
appear to be idleness. One seems to be owed a living without any  effort  on
his own part. The producing worker  should  be  fined  by  higher  taxation.
These are not seen to be simply false data spread about to wreck  the  place
but are held as "truths." And in their wake comes a funeral for  that  group
or society.

There   is   even   an   economic   theory   spread   about   today   called
"equalitarianism." It declares everyone should get the  same  pay  and  have
the same standard of living. It does not mention that anyone should  do  any
work. It holds that the better worker should  not  be  better  rewarded.  It
would crash any society.

Then there is the "monetarist" who  believes  you  can  manipulate  a  whole
society with money alone. And no thought of any production.  His  answer  to
production? (You won't believe  this.)  Decrease  demand!  In  other  words,
reduce everyone's standard of living!

Basic economics eventually catches up with all these weird false  pretenses.
It may take time but, as in the law of gravity, the apple  eventually  falls
no matter how many crackpots advance theories to say it can't fall, will  go
up, or vanish. Real basic economic laws are like that.  They  catch  up.  So
don't wonder about  inflation  and  depression  and  decayed  civilizations.
Basic economics caught up with the crackpots.

An executive has to pay attention to the  basic  law  about  a  standard  of
living. If he doesn't pay close attention to it, the standard of  living  of
himself and of his group will cave in.

He can be "a good fellow" and seek popularity by  attempting  to  raise  the
standard above what is earned. He and his group will crash.

He can be  foolish  and  seek  to  raise  his  own  rewards  above  what  he
personally is earning in terms of VFPs. But  both  he  and  his  group  will
fail.

He can ignore the real producers  of  the  group  and  not  see  that  their
standard of living is comparable to their individual production. And he  and
the group will fail,

He can ignore the nonproducers and  the  overt  product  makers  and  by  so
ignoring them, tear his own and the group's standard of living to bits.

He can listen to a bunch of PR from a staff member about how  valuable  that
staff member is and surrender to it without  ever  really  counting  up  the
real VFPs that staff member is  not  producing  (or  even  preventing).  (It
happens.) Only real VFPs count.

He can work himself half to death without demanding production  from  others
and have his own standard of living crash.

There are swarms of false data flying about today on  this  subject.  It  is
taught in schools, the very best schools; it is heard on the radio and  seen
on TV and in the papers. The civilization, as it caves  in,  is  blinded  by
literally thousands of false ideas about what and how a standard  of  living
occurs. These, where they conflict with the basic law, actively prevent  one
from prospering as they blind him to the truth of his scene.

In an org or management unit in Scientology, the real VFP is  valuable  fine
people who produce valuable final products who then make up a valuable  fine
public. Every piece of work  and  duty  in  a  management  unit  or  an  org
contributes to that.

534



The standard of living of an executive, a management unit, an org or a
staff member is determined by that one basic economic law: The personal
production of VFPs for the group and one's standard of living are
intimately related.

L. RON HUBBARD Founder for the

BOARDS OF DIRECTORS of the CHURCHES OF SCIENTOLOGY

BDCS:LRH:ab.gal.gm

Finance Series 26

[Note: HCO PL 15 May 1980, Finance Series 26, SCIENTOLOGY FINANCE NETWORKS
-CLARIFICATION OF DUTIES, which was not written , has been canceled by
Scientology Policy Directive 46, Finance Series 26 Canceled, SCIENTOLOGY
FINANCE NETWORKS -CLARIFICATION OF DUTIES, dated 27 Oct. 1982.]

535



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 18 FEBRUARY 1982

Remimeo

Finance Series 27

CHANGING WORKABLE FINANCE SYSTEMS

(Note: I have not been on finance lines for many years. But I was the  first
Flag Banking Officer. I evolved the hat out of  a  morass  of  confusion  an
area had fallen into and pulled the area out and  it  thereafter  prospered.
The hat of FBO was passed on to  others  and,  when  worn  the  way  it  was
designed (covered in Finance Series 1), orgs and staffs have  prospered  and
the public has attained far better service. Although it is not  my  job  and
although  I  receive  no  recompense,  I  recently  observed  some   strange
outnesses in org finances, simply by looking at some stats. I  have  a  good
record of making orgs solvent and prosperous and I was  always  the  one  to
instigate bonuses and improve staff pay and  I  could  see,  by  indicators,
that these points were not optimum today. So I suggested to those in  charge
of things now that they investigate. They did. They found something that  is
quite new in orgs-some instances of dishonesty. Today  we  live  in  an  era
where the psychologist teaches the blessings of  being  a  crook:  All  men,
they say, are basically dishonest and that it is  only  a  question  of  how
much temptation is required. Of course, that is a lot of you  name  it.  But
where some person, newly off the  street,  gets  a  post  and,  having  been
taught in psychology-dominated  schools  since  he  was  five  that  he  was
natively a crook, orgs can get areas of dishonesty. There is, of  course,  a
pitiful side to this: The poor blank sets himself up for no  case  gain  and
may even be consigning himself to no new life:  Overts  against  Scn  recoil
casewise and that's not just propaganda. Those in charge found  these  areas
and the instigators have been shot from guns. But I think, as a favor to  my
friends, I had better write this up. You may have been curious why,  when  I
went off the lines, things went wrong. Well, here's a lesson.-LRH)

Beware of people who change workable finance systems.

In the past two years at least three instances have come  up  where  finance
systems had been changed to everyone's detriment.

The first of these goes way, way back. We  used  to  have  a  very  workable
finance system as given in Finance Series I and  11.  It  was  the  FBO  NW.
Everything got along fine: It was relatively  simple.  Where  there  was  an
FBO, orgs got solvent and staffs got paid.

Then Herbie Parkhouse, DGF WW, got on the line. He used a  tax  report  flap
and other means as excuses to push the FBO system out. The  reason  for  his
changes was evidently personal power. Org  solvency  declined,  staffs  went
into apathy over inability to control their income,  international  reserves
went down.

The system is being reverted now and Parkhouse has been shot from guns.  But
the cost to orgs and staffs was staggering. If they had  not  been  arrested
they could have crippled Scientology. And these losses  came  right  out  of
your pocket!

The second instance was an independent  unit.  It  did  specific  production
items. When no one was looking, the person in charge of it changed  all  the
internal finance lines: This involved the  wipe-out  of  all  FP  and  every
financial control. Her husband was the Treasury Sec and  he  and  his  staff
then  were  able  to  embezzle  huge  sums  of  money.  Production  "costs,"
unwatched, soared. The products became  overt  products  of  little  use  to
anyone. The losses were staggering.

536



These criminals are now under charges and  will  wind  up  in  jail  as  the
evidence is very plain. They were all failed cases (naturally, for  who  can
get gain across such overts) and  had  other  out-ethics  situations  around
them. But the fact remains that here again some people  changed  a  workable
finance system for personal reasons. The system has  been  reverted  but  it
caused an awful lot of loss in many other ways than  money  and  the  reward
was jail bars.

The third instance has just come up. At  first  glance  it  seemed  a  small
thing but on further look it became very big.

GI in a large org was always counted as  "money  actually  received  in  the
shop before 2 P.m. Thursday." Someone changed this policy  to  read,  "money
that will possibly be invoiced anywhere in the  world,  even  on  the  other
side of currency control borders." The result was false  GI  you  would  not
believe. Other out-ethics things came right in behind  it  such  as  wrongly
crediting pcs to their advantage so as to make the GI look bigger.

Of course certain people would personally benefit. Anyone  whose  bonus  was
tied to GI in any way would be enormously overpaid.

The situation is under handling and  with  big  long  teeth  by  the  proper
authorities, but the fact remains that  once  again  a  finance  system  was
changed so that someone could personally benefit and rip it off.

So you wonder where the staff pay got so  undermined.  And  why  financially
things went somewhat sour.

All these things are handled and the systems are  being  reverted.  But  you
can learn from this:

BEWARE OF ANYONE PROPOSING A CHANGE IN ALREADY WORKABLE FINANCE SYSTEMS.

Be very careful it is not being done to bring about a personal rip-off.

The org and YOU are the ones who suffer  from  this.  You  would  not  stand
still for a squirrel change in  workable  tech.  Tech  works.  Why  tolerate
changes in workable finance systems?

BE ALERT!

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:bk.gm

537



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 17 MARCH 1982

Remimeo

Finance Series 28

FBO FP ADJUDICATION

A monitoring point in the FBO's judgment of how much to  give  the  org  for
its FP is how much is the org delivering.

The FP should really not be more than the org's VS1). VSD  is  a  reflection
of how much the org is delivering.

If the org's VSD is high, and high consistently, then the  org  is  in  good
shape and will probably continue to be in good  shape  and  worth  investing
into. It is worth it to the FBO to invest his beans into such an org.

If the org's VSD is low and consistently low, then the org is in poor  shape
and likely to be in worse shape. Putting beans into such an area  is  not  a
good investment for the FBO.

The FBO must not let the org run on unearned income,  and  income  collected
on which service is undelivered is really unearned income.  The  org  hasn't
really earned it, the org merely collected it.

What is meant here  is  NOT  that  every  penny  collected  by  14:00  hours
Thursday should be delivered by 14:00  that  same  Thursday.  Of  course  it
would not be. But on  the  average,  week  after  week,  an  org  should  be
delivering at a rate matching what it  is  collecting.  Otherwise,  it  will
build up unused APs. And an org certainly should NOT be spending  more  than
it is delivering.

It is not important if this week it spent a little  more  than  its  VSD  as
long as next week it spends a little less. An org must not be  permitted  to
spend ON AN AVERAGE more than its level of delivery.

This is a point of FBO judgment. His adjudication is "Is  this  org  running
consistently on more than the dollar value of what  it  is  deliveringT'  If
so, that org is going to starve. "Is this org running consistently  on  less
than the dollar value of what it is deliveringT' If so, then that org is  in
good shape, and there will be coffee and cakes for all.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm

538



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 15 APRIL 1982

Remirneo

Finance Series 29

THE COUNTING OF GROSS INCOME

(Ref: HCO PL 5 Jun. 59, Vol 3, pg. 8, INCOME REPORTS REQUIRED.

"These reports [departmental income  reports]  are  compiled  by  department
heads after Thursday at 2:00 P.m. on the week's income ending then.")

(Ref: HCO PL I I Dec. 62, Vol 1, pg. 323, OIC REPORTS TO HCO WW.

"The HASI week operates from Thursday 2:00 P.m. to the  next  Thursday  2:00
P.m. This is mandatory for all orgs without exception, from here on.")

(Ref: HCO PL 6 May 64, Vol 3, pg. 17, ACCOUNTS POLICIES.

"The accounts week closes at  2:00  P.m.  Thursday,  at  which  time  a  new
accounts week begins.")

(Ref: HCO PL 6 May 64, Vol 3, pg. 18, ACCOUNTS POLICIES.

"Posting [of disbursement vouchers in ledgers for the  companies  concerned]
is done in periods of one week ending 2:00 P.m. Thursday to agree  with  the
income period.")

(Ref: HCO PL 12 Oct. 66, Vol 1, pg. 344, OIC GRAPHS.

"Graph 2-a continuous line which shows the number of Clears made  that  week
[Thursday 2:00 P.m. to Thursday 2:00 P.m.] and a dotted line [when it  comes
to apply] showing the number of OTs made.")

(Ref: HCO PL 23 Dec. 66, Vol 3, pg. 265, ACCOUNTS INVOICES.

"Bundles of invoices are  routed  to  their  proper  destinations  from  the
baskets  when  convenient  but  at  least  once  a  day  and  at  2:00  P.m.
Thursday.")

(Ref: HCO PL 18 Nov. 67, Vol 3, pg. 212, BLUE AND GREEN ACCOUNTS INVOICES.

"The green invoices will be kept continuous and removed  from  the  machines
at the end of each day and  at  2:00  P.m.  Thursdays.  The  money  will  be
removed at the same time [leaving only the float].")

It might interest you  to  know  why  an  org's  income  production  period,
measured by the gross income statistic,  is  a  weekly  period,  from  14:00
hours (2:00 P.m.) Thursday of one week to 14:00 hours of Thursday  the  next
week.

IMPORTANCE OF THE GI STAT

It is complete folly to run or try to manage by anything but correct  stats.
Rumors, bad or good, kill orgs. Generalities, bad newsy or good newsy,  kill
orgs. Old school tie popularity, or lack of it, kills orgs. Running  an  org
or managing an org by anything but stats kills the org.

Running by stats shows one the state of  the  org  and  enables  one  to  do
something about a down statistic and reinforce an up statistic.

539



NEVER RUN OR MANAGE BY ANYTHING BUT STATS.

CORRECT GI STAT

The GI stat must be correct and must honestly reflect the org's income
production.

No one can bank money "enroute to the org, but not here yet." No one can  FP
against money "lined up." And you cannot be paid from  sums  that  "will  be
here soon."

But you can bank, FP against, and pay yourself from real money,  good  right
now, that is in the shop right now.

A GI statistic that  is  made  up  of  anything  but  cold,  hard,  bankable
currency, bankable immediately, and  in  the  shop  right  now  is  a  false
statistic, denying you a paycheck and blocking those who  would  attempt  to
expand the org.

NEVER REPORT, RELAY, OR CONDONE A FALSE GI STATISTIC.

TRENDS

Orgs are managed by trends and ranges of statistics. Is the  trend  of  this
statistic up or down? What is the  condition  of  the  trend?  And  at  what
range?

Weekly statistics, neatly graphed, shows one and all the  condition  of  the
continent or org or division or department or section or unit or  individual
staff member.

Why weekly?

Because our orgs are fast man! Other organizations and companies  throughout
the world work at a snail's pace compared to any Scientology organization.

How would you like to find out how you were doing at three-month  intervals,
a month or so after each interval? Yet this is common business practice!

It's no wonder  governments  go  broke  and  talk  of  budget  deficits  and
corporations cackle proud as peacocks about how they only  lost  30  million
less than they lost last year this time.

No, thank you! Nineteenth century "business practices" will not do  for  us.
You must know how you're doing right now and you must know how you did  this
week compared to previous weeks. Only then can you take measures to  correct
or reinforce, in order to improve or raise next week's production.

Why 14:00 hours Thursday?

I instituted this at London Org in the '50s. Friday was too late  for  their
Advisory Council to act on the just ended week's  statistics,  and  get  the
gears rolling for the new week as the weekend (and the Foundation  org)  was
right upon them.

By meeting on Thursday they could put their plans  into  motion  Friday  and
get started. 14:00 hours was the chosen cutoff  period  to  enable  them  to
meet that evening.

That procedure worked then and for decades since!

Only when an org goes out-ethics and varies  its  stat  ending  period  from
14:00 hours Thursday do you have trouble managing by stats and trends.

YOU CAN ALWAYS DO SOMETHING ABOUT A STAT TREND. BUT YOU HAVE  TO  KNOW  WHAT
IT IS.

UNUSUAL SOLUTIONS

I can't imagine any org staff member or executive failing to understand  any
of the above. This is all hard-won experience and established  policy  which
should be known to all.

540



Nevertheless,  one  encounters  the  "strangest"  applications  of   unusual
solutions anyone ever heard of. And every time an org  tries  to  count  its
gross income in a way other than as described above, the org and  its  staff
suffer.

For example, there were "postulate checks" in the early '70s in  which  some
orgs counted nonexistent funds as in-the-shop GI, while swearing to one  and
all that, "90% of them are good. The FBOs just aren't collecting them."

Result: Frozen accounts, busted boom!

An org one time sought to "raise its GP by transferring sums back and  forth
between accounts, counting these transfers as income.

(Well, that's just grand for  the  double-entry  finance  "wizards  of  Wall
Street." "Improves" their balance sheets remarkably. But it doesn't  prevent
one giant corporation after another from slipping away to bankruptcy.)

Result: The org went insolvent!

Another org sought to "raise its GI  and  booksales"  by  "buying"  its  own
books (they transferred from their main account to the HCO Book Account  and
counted it as GI), and then gave the books away.

His  "majesty,"  Lord  Keynes,  would  cheer  with  gleeful  approval.   But
unfortunately there's a hitch. Unlike the Keynesian dupes,  governments,  we
don't haul out the presses and print more currency. And books cost us  real,
earned, in-the-shop money.

Result: This org, too, went insolvent!

And then there was the org that reported its GI on Thursday, waited  for  it
to come in by Sunday, and worked all weekend to make sure  it  did  come  in
Sunday so that what they reported last Thursday would be correct!

They were spending three days (sometimes more) of the new week to make  good
the production of the previous week. This left them with about four days  of
production time to devote to the new week's GI.

But not to worry, they had this solved!

"We have until Sunday to get in next week's GI, that we report on  Thursday,
and GIs and CGIs can easily be reported a week behind based on Sunday  night
collection figures."

Oh yeah? One might ask, "But how can you allocate funds  at  the  weekly  FP
meeting on Thursday night when the funds are not going  to  be  there  until
Sunday night?"

"Oh, that's no problem. That's why we hold FP on Sunday."

Digging deeper, one might ask, "But  that  means  you  can't  get  going  on
activating the org's FP and get the items required by the org  to  carry  on
until Monday."

"Well, yes, but that's because the money doesn't come in until  Sunday,  and
we don't want to be nonstandard, so. . . ."

And now, jumping in with both feet, one asks, "But,  look!  Ron  just  wrote
this new HCO PL, Finance  Series  27,  entitled  CHANGING  WORKABLE  FINANCE
SYSTEMS, in which he says to, 'beware of people who change workable  finance
systems.' And what you've done is changed a workable finance system!"

"I know, but see this CSW here? We're going to change that PL....

UNUSUAL SOLUTIONS

All right, where does all this leave us?

541



THE MOMENT YOU VARY FROM  THE  EXACT,  STANDARD,  ON-POLICY  PROCEDURE,  YOU
INVOLVE  YOURSELF  IN  POTENTIAL  CONFUSION  THAT   REQUIRES   EXTRAORDINARY
SOLUTIONS.

WHEN YOU FIND YOURSELF BEING ASKED FOR  EXTRAORDINARY  SOLUTIONS,  YOU  HAVE
DEPARTED FROM THE EXACT, STANDARD, ONPOLICY PROCEDURE.

Note these two principles well. Chisel  them  in  granite.  They  amount  to
Third Dynamic Axioms.

What is the exact, standard, on-policy procedure?

1.    The stat period of an org is from 14:00 hours Thursday to 14:00 hours
Thursday

the following week. Not Friday, not Sunday. Thursday. Not 18:00 hours, not

14:10. 14:00 hours.

2.    Gross income of an org is the total  amount  of  cash,  coin,  checks,
money  orders,  cashier's  checks,  bank  drafts,   that   are   immediately
depositable, received by the org in the mail,  over  the  counter  or  wired
directly into the FBO No. I Account, by 14:00 hours Thursday,  for  any  org
service or item.

3.    The GI figure, already counted, totalled, and verified, is telexed on
Thursday as part of the org's OIC cable.

4.    FP Committee meets Thursday night.

5.    The FBO approves the FP or sends  it  back  for  corrections  /changes
(but in any case, makes the FP approvable), transfers  the  FP  amount,  HCO
Book Account amount, and the org reserve amount to the  org  Thursday  night
or Friday morning.

6.    The org deposits the FBO checks Friday morning and activates the FP.

7.    The org is already (as of 14:00 the day before) collecting the new
week's gross income.

Sounds simple, doesn't it? It is!

It is difficult or confusing only when it is made difficult or confusing  by
those who have other fish to fry, usually for their own selfish  benefit  at
the expense of the org and thus your own paycheck.

If you want a higher gross income, if you want the things  your  org  needs,
if you want a larger paycheck, just do the usual as laid out above.

Honestly, it is so much easier to be standard.

Try it!

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm

542



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF I I MARCH 1982

Rernirneo   CORRECTED AND REISSUED 21 MAY 1982

Exec Hats

Finance Hats     (Correction in this type style)

Marketing Series 17

Finance Series 30

PROPORTIONATE MARKETING

In marketing, one must always push harder toward the largest bulk of future
business. It is peculiar to Scn marketing that you have to push hardest at
the lowest levels to make the upper levels come off.

This gives you a sort of scale that tells you the target proportion of
finance and effort to allocate in marketing.

For Scn and types of orgs, it goes like this:

Heaviest: Raw public not yet into Scn.

Next heaviest: First services they will take.

Next heaviest: Into HGCs and Academies.

Next heaviest: To SHs.

Next heaviest: To AOs.

Next heaviest: On to Flag.

You can also draw a scale of this for individual business or orgs of any
class.

It can be done simply by how much money and personnel and pieces are to be
devoted to each point of the scale.

Failure to do this gives one faltering stats as the flow is not being
proportionally marketed. Done correctly, one gets a very heavy and quite
even flow up the Grade Chart. Doing it unevenly, one gets booms,
depressions, and instances of cannibalizing.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm

543



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 19 MARCH 1982

Remimeo

Finance Series 31

Marketing Series 19

Executive Series 35

EXECUTIVE SUCCESS

"The whole story of marketing is told in just a few words:

ONE FINDS OR STRENGTHENS OR CREATES A DEMAND.

"The whole story of economics is told in a few words:

ONE SUPPLIES OR DOES NOT SUPPLY A DEMAND AND GETS ADEQUATELY PAID OR DOES
NOT GET PAID FOR IT.

"The speed with which one can collect information, debug, write immediate
bright, applicable, doable programs or evaluations on each area that will
handle marketing, economics, delivery and collection and, above all, the
speed with which one can get out letters, despatches and telexes based on
the programs and get real dones on them back determines the volume of
income in any given time period.

"And that's the full essence of executive success."

L. RON HUBBARD

Founder

Assisted by

Operations Chief

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:OC:kjm.gm

[Note: The original mimeo copies of this policy letter were incorrectly
numbered as Executive Series 33.]

544



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 9 MAY 1982

Remimeo

Finance Series 32

BOOKS ARE ASSETS

Books, meters, cassettes, films and insignia are assets.

The operating principle is: Just as you  would  handle  money,  so  must  be
handled books, meters, cassettes, films, insignia and material.

There is a difference: Money decreases in value-books increase.

But just as an FBO would not think of letting money  be  around,  unguarded,
just as he would think it vital that sums be listed  and  cross-checked,  so
should he think of books and related items.

In an area where books  have  been  ripped  off,  it  will  be  found  quite
difficult to get people to keep  up-to-date  stock  lists.  They  know  they
could be detected and sent to jail for stealing if it was detected they  had
been ripping off books.

So it requires just as much policing on lines to handle books as it does  to
handle money.

Orgs can get themselves into a bind by not accurately accounting for
stocks.

They suppose that the money they take in for selling  books,  etc.,  can  be
spent on their FP any way they please. Soon they will run out of  books  and
have no money to replace them and there goes their local  dissemination  and
there goes their overall GI. In short, they cut their own throats by  trying
to run their org using the booksale money for other things.

This was so bad in early years  that  it  was  thought  orgs  could  not  be
solvent unless they used up all money taken in from books on other things.

There is another angle to this safeguarding material: That which people  can
rip off they do not respect. If they do not respect books and material  they
will not only not sell them, they will also black PR them.  And  there  goes
their public goodwill and their GI.

It has been said a single Dianetics or Scientology book is more valuable  to
the human race than the discovery of the wheel or fire. That is  because  it
could halt Man's own decline and personal demise. Be that  as  it  may,  one
single book or meter gone astray in the stock inventory can  seriously  dent
the org profit received from books.

It is a profit and loss thing: Lost stock not only denies  profit,  it  also
creates indebtedness. The books won't  balance.  But  in  this  case  it  is
worse: If books and material do not exist to be gotten  into  public  hands,
there is no prayer of continuing an org GI.

So carelessness or inattention to book material can whittle  down  and  then
destroy the org GI.

This is why books and material and HCO  Book  Accounts  are  now  under  the
supervision of the FBO Network.

545



Routinely, full inventories must be taken of all such material.

And at a change of executive structure, an outside firm must  be  gotten  in
to do a certified inventory of the material and new executives and  officers
must sign for it in any turnover. And in the event stocks are  missing,  the
FBO must be prepared to take police action just as he would  if  money  were
missing: He would suspect embezzlement and act  that  way.  Thus  day-to-day
stock lists must be kept and inventories  must  be  balanced  with  invoices
routinely.

Where consignment, without cash, is done to an outlet, then a  full  receipt
for all such assignment must be gotten AND checked up on AND  the  money  or
the stock collected in due course.

The Pubs Orgs must never operate on a credit line to orgs. In the past  this
has caused insolvency and denied the placing of books in  public  hands.  An
org, to get book stocks in such event, has to make cash money or GI  to  get
books or borrow the money elsewhere and pay it back.

Books, meters, cassettes are BIG business. Regarding them as a sideline  can
be fatal to GI. It is the book  in  public  hands  which  starts  any  boom,
regardless of  any  other  promotion.  The  books  are  the  ambassador  and
messengers to the world. This has been  proven  countless  times  from  1950
forward.

This does not mean books, etc., must not be backed up  by  other  promotion.
But it is the book that closes. Try to  operate  without  them  and  an  org
falls flat on its face!

This does not mean books, meters and cassettes should not be  displayed.  It
is a maxim that when the public sees just one book or meter on a shelf  they
do not buy. And it certainly does not  mean  that  books  are  not  sold  in
volume.

It does mean that books, meters, cassettes, tapes, films  and  insignia  are
assets greater than hard money. And they must, from  the  moment  they  come
off the press until they  arrive  in  public  hands,  be  treated  as  such,
counted, inventoried, stock listed.

The FBO Network I/C is responsible for implementing this PL and  originating
routine report forms and admin that must be kept and submitted regularly  to
him on this subject.

And he must be prepared to take action of the strongest  kind,  just  as  he
would in any other form of embezzlement, when he finds stocks missing.

It is vital to the survival of Dianetics, Scientology and orgs that this  PL
be given the closest attention. For one is dealing with  the  future  health
of orgs.

There is no sin in making high income from books  and  material  themselves.
Just like money, it is a crime to waste it.

A primary cause of slow expansion of Dianetics and Scientology in the  world
has been a carelessness from Pubs Orgs on down to orgs and FSMs  in  pushing
and safeguarding books.

This trust is now given into the hands of the FBO Network as they have
shown

over the years they can be trusted.

      L. RON HUBBARD

      Founder

      Adopted as official

CSI:LRH:bk.gm    Church policy by the



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

546



      HUBBARD COMMUNICATIONS OFFICE

      Saint Hill Manor, East Grinstead, Sussex

      HCO POLICY LETTER OF 27 JULY 1982R

Remimeo     REVISED 20 SEPTEMBER 1982

(Revised only to change the title of the D/FBO, per Finance Series 35,  from
D/FBO for Marketing, Meters, Books, Tapes and Films to D/FBO  for  Marketing
of Org Resources  for  Exchange  [D/FBO  for  M.O.R.E.],  and  to  add  some
additional references.)

Finance Series 33R

DEPUTY FBOs FOR MARKETING OF ORG

RESOURCES FOR EXCHANGE (D/FBO FOR M.O.R.E.)

R ef:

HCO PL 28 May 72 BOOM DATA

HCO PL 9 May 82  BOOKS ARE ASSETS

HCO PL 10 May 82 BOOKSTORE OFFICER HAT

HCO PL 20 May 82 BOOK ACCOUNT STOCK REPORT

HCO PL 15 Apr. 82      PLANETARY DISSEMINATION

HCO PL I I Mar. 82     PROPORTIONATE MARKETING

HCO PL 5 Feb. 82 11    BOOKS AND MARKETING

HCO PL 2 Sept. 82      Finance Series 34

      AND THAT IS BANKING

HCO PL 3 Sept. 82      Finance Series 35

      DEPUTY FBO FOR MARKETING OF ORG

      RESOURCES FOR EXCHANGE (D/FBO

      FOR M.O.R.E.) PURPOSE

HCO PL 10 Sept. 82     Finance Series 36

      EXCHANGE, ORG INCOME

      AND STAFF PAY

As covered in HCO PL 9 May 82, BOOKS ARE ASSETS, books,  meters,  cassettes,
films and insignia are assets  of  an  organization.  They  are  not  merely
assets in the sense of their dollar value, but are  in  fact  the  gold  and
diamonds that give the way to Man's total freedom. Therefore,  it  is  vital
that they not only be safeguarded, but that they be gotten  into  the  hands
of the public to point the way to the road out.

Add to the above  the  marketing  of  those  assets  and  the  marketing  of
Dianetics and Scientology training and processing services and  you  have  a
very broad area of responsibility  which  has  been  entrusted  to  the  FBO
Network.

To handle this added responsibility, a new post has been  created  which  is
the Deputy FBO for Marketing  of  Org  Resources  for  Exchange  (D/FBO  for
M.O.R.E.). At this writing this post is being filled in each org around  the
world with high  caliber  staff.  In  their  hands  lies  the  potential  of
achieving planetary dissemination at a rapid rate. This is no desk  job  but
requires very dynamic individuals who will work effectively on  these  high-
powered lines.

547



ORG BOARD

The org D/FBO for M.O.R.E. is located in Department 21, as is  the  FBO.  He
comes under the FBO but also has a direct line with his network  seniors  at
continental and international levels for the routine operation of his  post,
reports and compliances.

At continental and international level, the D/FBO area is its own branch  in
the Cont and Int Finance Offices.

In Pubs Orgs an analogous post exists who would have  lines  to  org  D/FBOs
for liaison, information  exchange  and  alerts  on  any  situation  needing
attention.

DUTIES

The key duties of a D/FBO for M.O.R.E. are

1.    Ensuring that at least minimum bookstocks are maintained at all
times. (Ref. LRH ED 5 INT)

2.    Being the final authority on the use of and administration of the HCO
Book Account and to ensure the per-policy use of the same.

3.    Ensuring that weekly bookstock reports are done and that regular
inventories are done of all stocks.

4.    Seeing that book orders are filled immediately-any order not filled
within 24 hours of receipt of the order is simply unthinkable!

5.    Seeing that books are not loaned out or given  away  and  seeing  that
appropriate ethics action is  taken  and  carried  through  when  this  does
occur.

6.    Bringing criminal proceedings against those found to have embezzled
HCO Book Account funds or stolen books or other items from the org.

7.    Using the points listed in HCO PL 10 May 82,  BOOKSTORE  OFFICER  HAT,
as a daily checklist and to ensure that all points go in and remain in.

8.    Ensuring that there is a  Bookstore  Officer  on  post  and  that  his
seniors  take  adequate  responsibility  for  this  area  of  the  org.   No
executives can be considered bonus eligible until this post is manned  by  a
competent person who can and does get his duties done per HCO PL 10 May  82,
BOOKSTORE OFFICER HAT.

9.    Approving the HCO Book Account  FP  and  issuing  the  checkbooks  for
check writing only on the  approval  of  an  FP,  and  then  recovering  and
holding this checkbook once the FP is activated.

10.   Ensuring that Treasury and the Bookstore Officer maintain perfect
records of all HCO Book Account transactions.

11.   Getting in, in an org, all the points of  HCO  PL  20  Nov.  65R,  THE
PROMOTIONAL ACTIONS  OF  AN  ORGANIZATION  which  apply  to  his  sphere  of
responsibility.

12.   In liaison with the org FBO, ensuring that the FP Committee  uses  LRH
ED 245R, FINANCIAL PLANNING CHECKLIST FOR  THE  PROMOTIONAL  ACTIONS  OF  AN
ORGANIZATION, as they apply to his  area  and  get  these  items  POed  for,
bought and then used.

13.   Seeing that all tapes, films and cine equipment are properly cared
for

548



and  calling  for  ethics  action  on  those  being   negligent   in   their
responsibilities.

14.   Getting films and tapes in full use in the org.

15.   Liaising with the D/Service Product Officer for Books in the org to
ensure maximum book marketing and sales in the local area.

16.   Receiving the weekly Book Account Stock Report and using  this  as  an
income sources summary for books to isolate which books in which  areas  are
selling well and why and to reinforce these actions, including noting  which
book campaigns have been successful and resurrecting these. Then to  isolate
which books and areas are not doing well per sales and debugging these.

17.   Noting  any  discrepancies  on  the  Book  Account  Stock  Report  and
ensuring the Bookstore Officer locates the reason(s) for such  discrepancies
and, failing this, locating the reason(s)  himself.  Then  getting  adequate
handlings done so the situation never occurs again! ,

18.   Getting FP to cover the costs of  any  Bookstore  items  found  to  be
missing after the weekly stock report is done  and  when  the  missing  item
cannot be otherwise located.

19.   Ensuring that translated books exist in the org for all languages
used in the local area.

20.   Monitoring the planning and use of  the  HCO  Book  Account  funds  to
ensure maximum profit, and not blowing the  profits  on  "Two-bit  FPs"  and
short-range or extravagant planning.

21.   Execution of marketing programs authorized for execution on D/FBO
lines.

22.   Ensuring compliance to HCO PL 11 Mar. 82, PROPORTIONATE MARKETING.

23.   Seeing that the org invests in marketing and promo actions which
result in increased income and body flow into the org (bean theory).

STATISTICS

The post statistics of the org D/FBO for M.O.R.E. are

I .   Total retail value of all  properly  secured  and  inventoried  assets
calculated from the weekly bookstock report. (Covers  all  Bookstore  items:
books, meters, tapes, cassettes,  insignia,  etc.)  This  is  based  on  the
weekly stock report done at the end of the previous  week.  The  D/FBO  must
actually inspect the state of  the  stocks  and  may  not  count  any  items
improperly stored which presents a threat to their value through  damage  or
theft.

2.    Gross book sales of the org.

3.    Total amount paid out for restocking or for new Bookstore items for
the week.

4.    Amount of film lease payments for the week actually paid out, per
film lease agreement.

5.    Allocation /production ratio computed as follows: Total amount
actually spent in the previous week (not just set aside) on marketing and

549



I

promo measured against the total org gross income for the current week. It
reads as a ratio so that the allocation is always I and the production
figure varies according to its relationship to the allocation. (E.g.,
allocation amount equals $2,000.00 and GI equals $20,000.00 so the ratio is
1: 10.)

The weekly condition of the D/FBO is based on  the  above  major  stats.  In
addition to these the following substats are to be calculated  and  reported
weekly:

a,    Books portion of the GBS.

b.    Meters portion of the GBS.

C.    Tapes and cassettes portion of the GBS.

d.    Insignia and jewelry portion of the GBS.

e.    Hat and course packs portion of the GBS.

f     Books portion of the restocking stat.

g.    Meters portion of the restocking stat.

h.    Tapes and cassettes portion of the restocking stat.

i.    Insignia and jewelry portion of the restocking stat.

j.    Hat and course packs portion of the restocking stat.

Accurately  calculating  and  reporting  these  statistics  will  show   the
effectiveness of the D/FBO and will enable accurate management of  the  area
to occur.

The D/FBO in an org is to report his statistics weekly  to  his  continental
senior who then forwards the reports from all the orgs in the  continent  to
the Int FBO for M.O.R.E.

THEFUTURE

Orgs in the past have tended to remain small or  grow  slowly  because  they
did not properly or extensively market their wares.

The primary block on marketing has been org miscomprehensions of finance  as
it relates to marketing, promotion and sales.  Hence,  these  functions  are
placed in the Finance Network  where  they  can  be  expertly  monitored  by
trained and competent  personnel  with  a  knowledge  of  both  finance  and
marketing.

Today's money wisely  invested  in  marketing  an  org's  wares  results  in
tomorrow's GI.

Orgs in the past spent their promo monies only on BMO (bulk mail  out)-which
is to say, only on the Scn field they already had sold.

To expand, an org must continually reach not only old  and  on-lines  public
but especially new public. It is upon this that future expansion depends.

Every book, every cassette sold to  raw  public  potentially  increases  Scn
public to whom, then, even more books, cassettes,  AND  NOW  org  minor  and
major services can be sold. Every public  film  properly  shown  the  public
potentially increases org GI. Every Academy film potentially  increases  MPT
(money paid for training)-IF the public knows of them.

The future GI and size of the org is regulated (given in-tech service and
on-policy

550



admin) by the proper placement of books, cassettes and  insignia  in  public
hands, and the exhibition  of  films.  There  is  a  direct  co-relationship
between the marketing of books,  cassettes,  insignia  and  films,  and  the
future GI of the org.

This is why the D/FBO for M.O.R.E. is there. Never before has there  been  a
network for this purpose.

The  formation  of  this  network  is  a  direct  push  for  individual  org
expansion, a direct and heavy forward thrust into the population,  and  upon
it may well depend the future of this planet.

Over to you. D/FBO.

Good luck!

L. RON HUBBARD

Founder

Written at the request of the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:gal.iw.gm

551



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 2 SEPTEMBER 1982

Remimeo

Finance Series 34

AND THAT IS BANKING

You might be interested to know  something  about  banking  and  money  that
bankers and governments don't know: BASICS!

These are very simple basics. They are also very, very 0 - - - L - - - D
basics.

Money can be said to be a lot of things. It  can  be  said  to  be  an  idea
backed by confidence. It can be said to be a system of exchange. It  can  be
said to be something easier to carry around than a side of beef or a  bushel
of wheat. Money can be said to be a lot of other things.

But from the viewpoint of a banker and solid facts, you get  the  basic  law
of banking and the basic definition of banking and money.

MONEY IS A NEGOTIABLE RECEIPT FOR DEPOSITED GOODS.

In order to understand this, you have to understand  the  original  function
and practices of (surprise!) goldsmiths! You  see,  goldsmiths  simply  used
gold as a commodity. It went like this:

The goldsmith took in a commodity of one unit of gold. He gave a receipt  to
the person who gave him the gold. He did this several times.  He  then  had,
let us say, six receipts-six guys had given him gold to  hold  and  he  gave
them each a receipt. These  six  guys  could  then  use  those  receipts  as
currency since it was gold on deposit with the goldsmith. This is a  one-to-
one basis. One receipt given out for one unit of gold taken in.

Now the goldsmith, because he assumed and hoped that all six  guys  wouldn't
want their gold all at the same time, could then issue  additional  receipts
against the gold-against the same gold for which he  issued  the  first  six
receipts. So he would issue receipts on, let's say a  three-to-one  basis-he
issued three receipts for every one unit of gold he had  on  deposit.  These
receipts were trusted because people knew he had gold on deposit.

So you see the goldsmith issued more receipts than he had gold  on  deposit.
He could then loan out  these  receipts  (currency)  that  he  had  created.
People "borrowed money" from him by obtaining one of these receipts and  now
they would owe him what they borrowed plus interest. AND NOW  THE  GOLDSMITH
WAS INTO BANKING. IT WAS THAT STEP THAT  PUT  HIM  INTO  BANKING.  You  see,
there were other things this goldsmith could do.  He  could  issue  receipts
and buy property or keep his business running or something. But  the  moment
he issued and handed out a receipt to people who  used  that  for  currency,
why, he was now into banking.

And that is banking.

Now you can do the same thing with commodities. You  have  a  warehouse  and
you're into banking. If everybody puts his commodity in  the  warehouse  and
the banker issues a receipt for it, he  can  now  issue  on  a  three-to-one
basis, as the goldsmith did,  or  twelve-to-one,  which  is  getting  pretty
risky but they did that. But, you  see,  he  can  do  the  same  thing  with
commodities. I don't care if they're shoes or whatever. Now,

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because he's got shoes (and other things) in the  warehouse,  he  can  issue
general receipts against these goods on a basis of  one  to  one,  which  is
just the depositors, on up to twelve to one.

And he can take those receipts and he can issue them to a  manufacturer  who
can then buy with those receipts the  equipment  necessary  to  set  up  his
plant. But everything the manufacturer makes is  a  commodity  deposit.  The
manufacturer makes something and now he has a commodity  deposit.  When  you
realize that the banker is not taking in all this commodity, you realize  it
starts sitting all over the place in all kinds of different  warehouses  and
so forth. But it is consigned to the bank. It belongs to the bank. It  backs
up the receipts. The guy who the banker loans the money to, just out of  the
blue sky, doesn't have any commodity there. The banker loaned out  money  (a
commodity receipt) to a guy without any commodity. Well, that  guy  has  got
to put a commodity there. And this is the basis of banking. If that guy  now
doesn't manufacture commodity, the banker is out of luck.  In  other  words,
he doesn't produce the commodity he's loaned money to  produce.  The  banker
now only has the plant.

So now we're off into the banker loaning against the plant.  We've  extended
it from the deposited goods to what makes the goods.

And that is banking. And that's all there is to banking.

And that's why you  see  bankers  favoring  short-term  loans.  They're  not
interested really in a real estate loan. That's a secondary  stage.  They're
interested in the cars sitting on the lot at Chrysler.

I noticed that when a European automaker recently went to  blazes,  a  fleet
of their cars turned up as being sold to  a  bank  in  America,  after  that
company went defunct. In other words, their manufactured cars  became,  just
as Chrysler's would become, the property of the bank.

Now what is inflation? INFLATION IS DETERMINED  BY  THE  RATIO  BETWEEN  THE
DEPOSITED GOODS AND THE NUMBER OF RECEIPTS ISSUED. This present society  has
got it up to several thousand to one. In banking, I  would  never  go  above
three to one. That is sound banking.

All right. Let's recapitulate. We started by issuing receipts for  deposited
goods. Then we extended it to what makes  the  goods.  And  we're  going  to
issue receipts on  a  safe,  intelligent  basis-a  three-to-one  basis,  for
example. All right. This is sound banking.

But these current "bank"ers extend it out on whether or not they  think  the
guy's credit is any good. They extend it out  on  to  whether  or  not  he's
going to issue stocks or shares of his own.  (His  own  issued  "receipts.")
And then they're going to keep  those  as  security  and,  honest  to  Pete,
you're now up here in froth. That is  strictly  froth.  This  whole  current
banking system is in froth. Even the American Federal  Reserve.  They  write
down a figure in a little book and tell the US Government that  it  can  now
print that much money. (You may think I'm kidding-I assure  you,  I'm  not.)
To back that money,  the  Federal  Reserve  issues  Federal  Reserve  Stock,
called Federal Reserve Bonds and so forth, which is bought  by  the  public.
Just recently, two "issues" have gone out on the same transaction which  was
based on nothing to begin with.

In other  words,  they  don't  just  issue  a  hundred  million  dollars  in
currency. They issue a hundred million in currency and a hundred million  in
bonds. So regardless of their computations, they have not  really  issued  a
hundred million, they have really issued two hundred million, which  doubles
instantly the amount of paper  in  the  society  on  the  same  transaction.
Result: more inflation.

Hold on, it gets crazier.

Of this transaction, only half of it is covered by interest-only the  bonds.
So they feel they're getting only half the interest because the total  issue
of paper was two hundred million, and they're only drawing interest  on  the
bonds, one hundred million. So, "of course" they have to get twice  as  much
interest on the bonds. And there shoots

553



up the interest rates and now money  becomes  too  expensive  to  borrow  in
order  to  manufacture  something  and  there  goes  your  new  and   future
commodities and eventually there goes your society.

And (currently) that is banking (unfortunately).

But don't you be confused. It is really very, very simple. For instance,  if
you can get the idea that you would take all of  your  household  goods  and
give them to a bank and they would put them in their basement and then  they
would give you a receipt for the household goods and  then  you  could  give
that  receipt  to  somebody  else  for  some  negotiated  action-you  wanted
something they had or would do for you-why, then you'd understand banking.

And if you can get the idea that  that  other  person  that  you  gave  your
receipt to could then go claim those household goods if he  chose  to,  then
you'd understand banking.

And if you can get the idea that  that  other  person  might  not  (probably
wouldn't) go  claim  those  household  goods,  but  instead  that  he  might
transfer the receipt that you gave him (that  you  got  from  the  bank)  to
somebody else for something that he wanted, then you'd understand banking.

And if you can get the idea that even though this other fellow  didn't  take
your receipt and go claim the household goods, that  the  receipt  does,  in
fact, represent that item of household goods that it is for and  that  those
receipts are backed up by those household goods, why, then you'd  understand
banking.

And now we go a bit further and if you  can  get  the  idea  that  we  don't
bother to put those household goods in the bank's basement-we leave them  in
your home-but that in essence you  have  sold  them  to  the  bank  for  the
receipt they gave you (and this is what is known as collateral), then  you'd
understand banking.

And now we go way upstairs and if you can get the idea that the  bank  would
print up and issue receipts on a greater than a one-to-one basis  (three  to
one or six to one, for example), and then loan these receipts to someone  so
that he could exchange them for manufacturing equipment,  for  example,  and
produce a commodity and that then these receipts that  had  been  issued  to
the manufacturer were now, in fact, backed  up  by  goods,  then  you  would
understand banking, REAL banking. And you  would  understand  that  banking,
real banking, can all by itself, increase production.  And  lo  and  behold,
THAT WAS THE ORIGINAL PURPOSE OF BANKING!

And that is banking. That's all there is to it. That's the basics. That's
it!

You see, violations of these basics are what got  the  current  bankers  and
governments in their present predicaments. Oh sure, they have this plan  and
they have that plan. But let me point out to you that they had  those  plans
last year and the year before that and that  their  own  economic  troubles,
budget deficits, etc., last year were not as bad  as  this  year!  So  maybe
there's something a little wrong with their plans. Well,  yes,  there  is  a
lot wrong with their "plans"-their basics are out.

As a banker you can stretch that three to one, like the  goldsmith  did,  to
five to one, or twelve to one. But when you  get  up  to  astro-ratios  like
these current bankers, boy are you in trouble. You can get a run on a  bank.
A run on a bank is when all the guys who hold receipts suddenly believe  the
goldsmith is about to blow or leave town so they  all  go  in  and  ask  for
their gold at the same time. Well now,  of  course,  he  can't  pay  it  out
because he is not holding that much commodity. So if he had issued  receipts
on a twelve-to-one basis, NOW his receipts are worth  1/  12  (one  twelfth)
what they had been worth, just like that.

Anyone who can recall back to the 1930's will tell you . . . "and  that  was
banking!"

These basics would be known by the Wizards of Wall Street, you would  think,
but maybe not. They certainly are not known  to  London's  Parliament.  They
might say,

554



"Yes that's interesting, but we  do  things  differently  now  ...  sort  of
inapplicable. . . ." Well, I  notice  that  inflation,  loss  of  purchasing
power, economic chaos, etc.,  isn't  being  created  any  differently.  They
manage to keep these actions going at a high roar.  So  maybe  these  basics
ARE applicable! OH, YES, they are applicable  all  right-you  can  bet  your
house, car, job and future on them.

All right, we had the goldsmith, then we had the banker who issued  receipts
for deposited goods. Now, we've got a  new  factor-the  governments  produce
nothing really and  yet  they  print  money.  What  backs  it  up?  NOTHING!
Governments never do produce anything to go into the  depository  that  then
backs up the receipts (currency) and that they then can pay back.

So you wonder why there is inflation? Well, it is  just  the  ratio  of  the
amount of money against the goods.

I've already told you that there is a limit on the issuing rate in  banking.
Anybody that is going for a twelve-to-one ratio  (twelve  receipts  for  one
unit of goods) has got his neck stuck out. It is going to  cost  more  money
for a commodity because there is more money around than commodities.

All right, keeping this in mind look at your tax collector. When they  start
going up to certain percentages that penalize the company (and  worker)  and
give it an unmanageable burden, and thereby make  it  difficult  to  service
the machinery, make it difficult to introduce new tools and equipment for  a
new product, etc., why,  the  tax  man  starts  putting  businesses  out  of
business. They've been doing that in America and are  nearly  finished  with
the job in England. When a company folds that produces shoes,  let  us  say,
there is then going to be less shoes on the market and therefore  the  shoes
that remain are going to cost more, again for the  same  reason  as  in  the
previous paragraph-there is more money around than commodities.

Ideally, a company should work itself out of debt, not into it. But  because
of suppressive, penalizing  tax  percentages  and  bank  interest  rates,  a
company works itself into debt so one could say that the  tax  collector  is
in collusion with the banker in these sectors. This brings  about  inflation
because it is an unproductive 25 or 50 percent of the price  of  goods.  The
government is not furnishing anything to account for that. So this now  goes
back into the banking aspect because  the  company  or  the  individual  can
never accumulate enough money to buy new machines,  so  the  banker  has  to
continuously loan him money to enable him to  get  his  new  machinery.  But
then that's got interest on it so the tax collector....  You  see?  The  guy
can never get enough money to buy  a  new  plant,  he'd  never  make  enough
money. He's either got to get his new plant  or  his  replacement  machinery
and so forth, either from the bank or just not do it at  all  with  the  tax
collector.

There is another twist to this. What  do  governments  (and  sometimes  even
banks) do with these tax collections and other pounds of flesh  gouged  from
the carcasses of people trying to get on with their  jobs?  They  hand  them
out as "foreign aid," the dole, welfare and  other  activities  designed  to
degrade and subjugate people and kill any  initiative  and  production  that
might otherwise occur. And the cold, hard, naked truth is  that  "downstats"
don't produce deposited goods.

All of that gets added to the price of commodity and that is what inflation
is.

Simple. So simple. It's too simple for these idiots not to be  able  to  con
everybody in the society into believing that it's  very  complex.  But  they
don't want the public to understand this because they've got a racket  going
and they know it's a racket.

They are a goldsmith with a 2000 to I receipts to goods ratio and it  simply
doesn't happen to matter what theory  or  explanation  they  dream  of.  The
facts remain. Period,

And so do the basics remain. And these basics are very, very  much  for  use
by FBOs. FBOs are, after all, banking officers.

I've told you that money is a negotiable receipt for deposited goods.  Well,
what about services? Your orgs sell a lot of them. How does  a  service  fit
into this?

555



A SERVICE IS DEFINED AS AN INCREASE OF USABLE GOODS.

Consider a lawnmower repairman who sits down  and  someone  brings  him  his
broken-down mower and this repairman fixes it. He didn't actually make  that
lawnmower, but he did increase the number of usable  goods  in  the  society
because before he fixed it there was one less  lawnmower  and  when  he  was
finished supplying his service there was one more lawninower.  And  to  this
degree, no matter how small it may seem, that  lawninower  repairman  helped
hold down inflation.

In the case of your org, A SERVICE INCREASES  THE  USABILITY  OF  A  PERSON.
Students and pcs come to you in one state  or  condition,  you  supply  them
services and they become more useful, more valuable, more  productive.  This
is not a light  statement.  The  more  productive  people  there  are  in  a
society, the more goods there will be in  a  society,  and  the  better  off
society will be in general.

The goldsmith, as a banker, used his basement as a depository. What  is  the
FBO's depository?

SERVICE CAPACITY UTILIZED IS THE DEPOSITORY FOR AN FBO.

It is up to  an  FBO  to  increase  his  depository,  his  utilized  service
capacity. And whatever  increases  his  service  capacity  utilized  is  the
direction the FBO heads in. A bookstore outlet,  another  bookstore  outlet,
more auditing rooms, more auditors, more pcs to  help  fill  those  auditing
rooms, a second HGC, another courseroom, more Supervisors, more students  so
the Sups won't be lonely, more Word Clearers, and so on.

The greater the service capacity utilized, the greater the service
delivered.

The greater the service delivered, the greater the income.

The greater the income, the greater opportunity for  this  banker  (FBO)  to
loan (invest in FP) for more service capacity.

The greater investment in more service capacity, the greater ability to  get
more service capacity utilized.

The greater the service capacity utilized, the greater the service
delivered.

The greater the service delivered, the greater the income....

And on each of these cycles, the FBO and the org get  another  benefit  from
this: products delivered out into society and reserves.

You've got the title of Flag Banking Officer and  you've  got  the  tech  of
banking. So now let's see you use these basics of REAL banking  to  do  what
they were invented to do  and  what  they  DID  DO  innumerable  times  over
countless ages-increased production and built empires, yes EMPIRES!

Let it be up to you to apply  these  basics  and  then  hold  up  the  power
trending stat graphs of your org and your reserves and  say,  "And  THAT  is
banking!"

L. RON HUBBARD

Founder

Written at the request of the

BOARD OF DIRECTORS

of the CHURCH OF SCIENTOLOGY INTERNATIONAL

      Adopted as official

CSI:LRH:dr.gm    Church policy by the



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

556



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 3 SEPTEMBER 1982

Remimeo All Orgs 17130 and D/FBO Hats All Executives and Staff

Finance Series 35

DEPUTY FBO FOR MARKETING OF ORG

RESOURCES FOR EXCHANGE (D/FBO FOR M.O.R.E.)

PURPOSE

(This modifies Finance Series 33 as to the post title of  the  D/FBO,  which
was formerly Deputy FBO for Marketing, Meters, Books, Tapes and Films.)

References.

HCO PL 27 Jul. 82      Finance Series 33

      DEPUTY FBOs FOR MARKETING,

      METERS, BOOKS, TAPES AND FILMS

HCO PL 28 May 72 BOOM DATA

HCO PL 9 May 82  BOOKS ARE ASSETS

HCO PL 10 May 82 BOOKSTORE OFFICER HAT

HCO PL 20 May 82 BOOK ACCOUNT STOCK REPORT

HCO PL 15 Apr. 82      PLANETARY DISSEMINATION

HCO PL I I Mar. 82     PROPORTIONATE MARKETING

HCO PL 5 Feb. 82 11    BOOKS AND MARKETING

HCO PL 2 Sept. 82      Finance Series 34

      AND THAT IS BANKING

(Note: Nothing in this PL relieves management in  any  echelon  or  division
from any duties or functions stated in  policy  and  this  PL  denoting  the
purpose of the D/FBO for MORE may not be used to offload hats  of  promotion
or sales on the D/FBO network. Its authority is to see that  such  hats  are
worn fully by org posted terminals and only in their neglect or  absence  to
bypass.)

Why are marketing, books, tapes,  cassettes,  films,  insignia,  meters  and
related items in the FBO network?

Well, to begin with, such items are assets. And like any asset, any  or  all
of these items are valuable and can be stolen, abused, misused,  ripped  off
or result in loss.

Like money, these items can be the subject of exchange  and  in  times  when
money is less valuable these assets might even be more valuable.

Any of these items are cared for by, or subject to,  accounting  procedures.
They have to be counted and safeguarded just like money. The real  basis  of
all money is goods, and goods are more basic than money for money is  simply
a substitute for goods or services.

In the past these items have been subject to very wide abuses which have
affected

557



the health and prosperity of orgs. In earlier times orgs could  obtain  such
items from the Publications Department, sell them and  instead  of  ordering
new items, put the money made into the org accounts and spend it  for  staff
pay  and  so  forth.  In  this  way  Central  Publications  activities  were
subsidizing orgs. This was so bad that orgs actually thought they  would  go
insolvent if they could not illegally misappropriate money for  these  items
for their own use.

This was what began the HCO Book Account. Unless the Book  Account  is  used
to replenish stocks, an org will shortly run out of stock and  have  nothing
to sell. This effectively cuts its reach to the public  and  reduces  demand
on the org for service GI. A not-so-nice word  for  the  practice  of  using
book money for running expenses is embezzlement. Thus  one  has  to  have  a
broad and trustworthy network to safeguard against such practices,

But there is an even more fundamental reason why these items  are  entrusted
to and generally overseen by the FBO network.

This has to do with a general principle which is glaring in its omission  on
this planet. It has to do with the fundamentals of prosperity.

Governments, the tax man, bankers and even  accountants  on  Earth  (and  in
most space civilizations as well) operate on the  principle  that  they  are
there to take money from activities for their own use. It  is  to  be  noted
that robbers have the same idea. Such entities operate  on  the  basis  that
their sole activity should be devoted to taking money. This is why  you  get
down economies, why empires go broke, why inflation occurs  and  innumerable
other evils. Such misguided people have a fault in  their  arithmetic.  They
think they can take something from nothing and that,  let  us  say,  10%  of
nothing is something.

There is a different  principle  which  can  be  applied  and  this  is  the
principle of making an individual or  area  so  prosperous  that  the  money
spills over into your lap. One can, by operating  on  the  third  and  first
dynamic, achieve in abundance any ambition on  the  first  dynamic  to  have
lots of money. All one has to do is to make sure that what he is taking  the
money from is so prosperous, so well run  economically  and  so  financially
sound that even a river of money taken from it does not affect  its  overall
prosperity. Now this is real money management.

When I am talking about  this  second  principle  I  am  not  talking  about
economic pie-in-the-sky or Marx or Keynesian  crackpot  theories  like  they
are. I am talking from a  long  background  of  solid  economic  application
which has worked and worked and worked. I could actually point out, just  in
Dianetics  and  Scientology  management,  areas  where  I  have  done   this
repeatedly and successfully.  It  was  at  those  times  that  International
Reserves swelled. In fact most of the money in  Int  Reserves  was  made  in
exactly this way.

This began a long time ago but we won't go into that. The  genus  of  it  is
that I like to see people prosperous. I mean them  well.  This  is,  by  the
way, unique. The head  of  the  Federal  Reserve-judging  by  his  financial
"practices" -does not have this attitude. He probably  rubs  his  hands  and
chortles all night at the thought of people in rags. And I am sure  that  an
IRS man is never happier than when he has just  got  through  bankrupting  a
business. Money is a form of power and  power  is  all  too  often  used  to
crush, suppress and get even with the world.

If one is very clever and knows his business, he  can  actually  force  into
existence unbelievable levels of prosperity for one and all.

Now you won't easily believe this but this second principle is  one  of  the
hardest principles to get across in all the lexicons of  expertise.  One  is
going up against,  as  one  tries  to  get  this  operating,  first  dynamic
fixations. Trying to get people to see  that  they  will  continue  to  make
pennies if they persist in trying to rip things off whereas they  themselves
could make big  money  if  they  worked  to  make  their  collection  points
prosperous  as  their  main  area  of  concentration,  appears  to  be  very
difficult. The people one is trying to convince  and  get  cooperation  from
have too many examples around them of shortsighted arithmetic.  Additionally
most of their literature concerns itself

558



with people getting rich by ripping others off. In  fact  it  is  apparently
deeply engrained in people that there is no other way of life.

But I have an answer to this: one does not closely consult  or  expect  much
cooperation from people in applying the second principle above;  one  simply
does it on a bypass. You see this expressed in such a line as,  "Drive  more
business down on an org than it can waste" and that is  almost  the  guiding
principle of the Deputy FBO for MORE.

So you could draw a little diagram of flows. Here's the  FBO  attempting  to
make collections so that the cost of management can be defrayed. Put him  on
your little diagram over to the upper left. Now put a circle in the  middle.
This is the org or the service center or the bulk of the  civilization.  Now
put a very thin line from that center circle up to the FBO, now  label  this
line with a money symbol. Now over to the right of that  center  circle  put
some very thin arrows pointing at the center circle with zeros on them.

In this first diagram you have outlined a very  difficult  situation.  There
is little if any money flowing into the center circle so the money  the  FBO
can get out of that is very close to zilch. This, believe it or not, is  the
normal pattern in practice in tax offices, banks  and  etc.  Obviously  this
makes economics and finance very, very, very, very, very difficult.

Now let's draw a second diagram. Let's put the FBO  up  in  the  upper  left
hand corner, let's put the circle in the middle and now let's  put  a  D/FBO
up in the upper right hand corner. Now down from the D/FBO draw a number  of
lines which curve out to the  right  and  then  point  back  to  the  center
circle. Put a money symbol on each one of these lines. This  symbolizes  the
D/FBO driving public money in on the org. Now let's draw  a  very  fat  line
from the center circle up to the FBO and put a very fat money symbol on it.

You have there in the second diagram the major purpose of the D/FBO.

To understand this one has to understand what  marketing  does,  what  books
can do, the role of insignia, the actual effect of tapes and  cassettes  and
even meters in full use in  public  hands.  The  publics  involved  are  raw
public (divided into many categories) and Scientology public (again  divided
into many categories). If  each  one  of  these  publics  were  interestedly
active, the amount of bleed-off from that activity into  the  org  would  be
stupendous. The org and all of its staff would  become  prosperous  and  the
percentages of money taken by the FBO would hardly be missed. And the  money
taken by the FBO, used in part to create more central  marketing  activities
and to make it profitable to manage the org from afar, feeds back  into  the
cycle of public monies into the org.

In other words you get a little machine going here. Regardless of where  the
org is, if it had an efficient FBO keeping it financially honest and on  the
rails with finance policy and a D/FBO, with or without a checkered coat  and
megaphone, using every tool to drive business in on the org, you  would  get
a little whirlwind going which would get bigger and bigger  and  bigger  and
bigger and bigger.

An org is essentially a service unit and unless it delivers  what  is  being
sold and delivers it well, it will soon get into trouble; but  the  form  of
that org and its  degree  of  activity  is  the  basic  concern  of  overall
management. When the org does not deliver or delivers badly,  it  gets  into
refunds and flies back into the teeth of the FBO  network.  Thus  it  is  of
enormous interest to the FBO network,  of  course,  that  the  org  is  well
managed both on long distance lines and internal lines and  there  are  many
networks and management lines and terminals to ensure this.

But what has been the existing state of  affairs?  In  the  past  orgs  have
neglected the various publics even to the point of not marketing  Book  One,
the source of all subsequent public demand. Even as I write  this,  a  datum
is to hand that right this minute  when  the  Pubs  Organization  sends  out
promo to orgs a number of them simply take it off the  express  and  put  it
into a closet. I can assure you that that closet is not  going  to  buy  any
training or processing. The amount of income lost is really income not

559



made. The potential of income generated by promotion, if  not  realized,  is
actually a loss. Poor promotion angled  for  the  wrong  publics,  promotion
material not used or simply no promotion at all is about the most  expensive
loss now being experienced. It is, at minimum, in terms of millions a  week.
But you must realize that promo itself is an asset. It costs money.  It  has
to be well used and it should not be wasted.

Films shown incorrectly or not shown at all are a loss of not  made  income.
The public, not knowing they exist or that if  they  sign  up  for  training
they will see films not otherwise available, does not sign up.

People who have read Dianetics and Scientology books, as any Registrar  will
tell you, are very easy to sign up. People who have not are  very  difficult
to sign up.

On the subject of insignia, if  the  image  and  symbols  of  Dianetics  and
Scientology are not seen around it remains to that degree, unknown.

Tape plays in the org and cassette sales outside the  org  make  the  public
aware of the product and when these are dropped out  the  whole  purpose  of
Dianetics and Scientology tends to become lost.

If field auditors are not auditing, buying  updated  packs  and  using  good
meters, the field is not only relatively inactive, one gets a poor  word  of
mouth in the field which makes it difficult to push  business  down  on  the
org.

The tools of the Deputy FBO are  any  of  those  connected  with  marketing,
promotion, PR, advertising, merchandising, and are actually pretty  standard
tools. We have a lot of advanced tech on this subject and all of  it  is  of
interest and it needs to be applied at org level. But, historically,  unless
there is somebody there making sure that these tools  are  used,  it  hasn't
happened. The D/FBO network is the first time ever that there  has  been  an
international control of marketing, promotion, advertising, PR. etc.

Thus we see that the D/FBO is safeguarding assets and making sure  they  are
not neglected or abused and getting those assets into full use so  that  the
resultant exchange with the public and the org  brings  about  a  prosperity
which makes  the  functions  of  the  FBO  much  easier  and,  indeed,  even
possible.

We have in Dianetics and Scientology a highly  desirable  product  which  is
unique and effective. The public demand for it is proportionate only to  the
degree that it is made known and made available. It  quite  honestly  works.
And if properly delivered  results  in  rave  individual  results.  That  of
course is a statement of minimum scope concerning these  subjects:  They  go
far beyond that.

Historically, if you care to look on the 32-year backtrack, I  have  had  to
wear the hat of applying that second principle described above. I have  also
had the hat of "driving more business down  on  the  orgs  than  they  could
waste."

It is a great relief to have somebody else wearing this hat.

Wear it well.

L. RON HUBBARD

Founder

Written at the request of the

BOARD OF DIRECTORS of the CHURCH OF SCIENTOLOGY INTERNATIONAL

      Adopted as official

CSI:LRH:iw.gm    Church policy by the



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

560



                        HUBBARD COMMUNICATIONS OFFICE

                  Saint Hill Manor, East Grinstead, Sussex

HCO POLICY LETTER OF 10 SEPTEMBER 1982

Remimeo

All Staff

Finance Series 36

EXCHANGE, ORG INCOME AND STAFF PAY

Sometimes the  question  of  staff  pay  arises  although,  by  survey,  the
condition with most  staffs  reportedly  is  secondary  to  org  income  and
getting a show on the road.

So it is of interest what really underlies org income and staff pay.

There is a term used in business called "fair exchange."

Let us apply this to an activity engaged in servicing the public.

We can isolate four conditions of exchange.

1. First consider a  group  which  takes  in  money  but  does  not  deliver
anything  in  exchange.  This  is  called  rip-off.  It  is  the  "exchange"
condition of robbers, tax men, governments and other criminal elements.

2. Second is the condition of partial exchange. The group  takes  in  orders
or money for goods and then delivers part of it or a  corrupted  version  of
what was ordered. This is called short-changing or "running  into  debt"  in
that more and more is owed, in service or goods by the group.

3. The third condition is  the  exchange  known,  legally  and  in  business
practice, as 'Tair exchange." One takes in orders  and  money  and  delivers
exactly what has been ordered. Most  successful  businesses  and  activities
work on the basis of "fair exchange."

4. The fourth condition of exchange  is  not  common  but  could  be  called
exchange in abundance. Here one does not give two for one  or  free  service
but gives something more valuable than money was received for. Example:  The
group has diamonds for sale;  an  average  diamond  is  ordered;  the  group
delivers a blue-white diamond above average. Also it  delivers  it  promptly
and with courtesy.

Now, believe it or not, org income and staff pay depend upon  which  of  the
above four exchanges is in practice by (a) the org  or  group;  or  (b)  the
staff member in the group.

If exchange number 1 is in vogue, income will dry  up  with  a  thoroughness
you wouldn't believe. Although the TV  and  movies  try  to  tell  one  that
robbery is the only way to get rich, this is  not  true.  Those  who  engage
upon it, whether they be stickup men, corporate con men or governments,  are
not long for this world. The bigger the group, the longer it  takes  for  it
to fall, but fall it assuredly does. And the individual who takes  but  does
not give ends up with a deep-six in many ways quite rapidly.

The  second  condition  of  partial  exchange  can  only  keep  a  group  or
individual going just so long. The end  result  is  painfully  a  demise  of
status  or  position  and,  most  certainly,  income.  Many   "third   world
countries" and even the bigger ones are in this plight right now. They  take
in but do not really produce or give. This is what inflation is  all  about.
Unemployment ranks are full of such.

561



The third condition of "fair exchange" gives one a  rather  level  progress.
It is considered "honest," is socially acceptable and very legal under  law.
It does not, however, guarantee any expansion or improvement of a  group  or
the lot of a person. It is barely comfortable.

The fourth condition is the preferred one. It is the one I  try  to  operate
on and have attempted to for ages. Produce in  abundance  and  try  to  give
better than expected quality. Deliver and get paid for  it,  for  sure,  but
deliver better than was ordered and more.  Always  try  to  write  a  better
story than was expected; always  try  to  deliver  a  better  job  than  was
ordered. Always try to produce-and deliver-a better  result  than  what  was
hoped for.

This fourth principle above is almost unknown in business or the  arts.  Yet
it is the key to howling success and expansion.

It is true for the org, it is true for the individual staff member.

Where a group is concerned, there is another factor which  determines  which
of the four above is in practice. It is group internal pressure. Where  this
only comes from executives, it may not get activated. Where  it  comes  from
individual group members in  the  group  itself,  it  becomes  assured.  The
internal demand of one staff member to another  is  what  really  determines
the condition of the group and establishes  which  of  the  four  conditions
above come into play.

Thus the org collectively, in electing which of the  four  principles  above
it is following, establishes its own  level  of  income  and  longevity  and
determines its own state of contraction or expansion.

While this is a must  in  an  executive-to  establish  the  principle  being
followedthe real manifestation  only  occurs  from  pressure  by  individual
staff members or others within the group.

Unions and workers in the auto industry elected to follow exchange number  2
above. This brought about the decline you see in auto  companies.  Had  they
elected to follow number 3 they would not be in trouble.  Had  they  elected
to follow number 4 they would now be in clover for the world today does  not
really have a truly good, economical, wreck-free car.

It is up to the individual staff member in a group what the group income  is
and what their  own  staff  pay  is.  The  org  cannot  earn  more  and  the
individual staff member cannot be paid more  than  will  be  established  by
which principle above they elect to follow.

If they follow number 3 they will get along. But if  they  follow  number  4
they will really flourish  and  prosper.  And  it  is  the  only  one  which
guarantees expansion.

L. RON HUBBARD

Founder

Written at the request of the

BOARD OF DIRECTORS

of the CHURCH OF SCIENTOLOGY INTERNATIONAL

      Adopted as official

CSI:LRH:iw.gm    Church policy by the



      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

562



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 4 SEPTEMBER 1971RA

Remimeo     REVISED AND REISSUED 27 OCTOBER 1982

All FP and

      Finance Packs    CANCELS

FBO Hats    HCO PL OF 4 SEPTEMBER 1971

Finance Enforcement

Officer Hats     AND

D/FBO Hats       BPL 4 SEPTEMBER 1971R

All Staff        ISSUED 16 AUG. 1975

            BOTH OF THE SAME TITLE

      (Issued    originally as an HCO PL by a former

      Finance Aide and then converted to a BPL, this

      valid policy has become lost and is therefore being

      reissued as revised at the request of the Church of

      Scientology International.)

Finance Series 37

FP AND NECESSITIES

(THE FBO APPEAL LINE)

A "NECESSITY" is what it takes to make products and valuable final
products. (Ref. HCO PL 13 Feb. 71R, FINANCIAL PLANNING TIPS, Finance Series
2R.)

A divisional secretary is responsible for seeing that the necessities of
his division are provided for in financial planning. This responsibility
extends to follow-up of approved items to ensure that they are purchased by
Division 3 and delivered in good order.

For the Treasury Secretary this duty extends to the necessities of the
entire org.

DENIED NECESSITIES

Too often, FP troubles trace on investigation to one or more of the
following:

1.    The item in question was never proposed to any FP Committee.

2.    The item was returned for better CSW and never reappeared.

3.    The item was refused by an FP body but never appealed-either to the
FP body or the FBO.

4.    The FBO saw the item safely through FP months ago but it was never
bought or the money was otherwise (without authorization) used.

In order that the FBO can ensure that existing policies on the above are
followed, an appeal line is hereby established.

The appeal line is direct to the FBO. Any staff member may use it.

It concerns the use of the org's allocation-not the amount.

It is used whenever a vital necessity is denied in FP.

It is used when an FP-approved item is stalled on purchasing lines.

It may be used in any case where usual lines have failed to remedy a
nonoptimurn situation concerning the approval or purchase of necessities.

563



Any staff member may appeal to the Cont FBO or  even  the  FBO  Int  if  not
handled to the satisfaction of the staff member at org  level  but  in  such
cases must include the result of the appeal to the org FBO.

Any report of such situations received at Cont or Int  level  without  first
having been appealed to the org FBO shall be considered incomplete and  will
be returned without further handling.

Where the appeal concerns delayed implementation of a Flag or  higher  level
issue or order, a copy of the appeal must be sent direct to the Flag Rep  at
the FOLO and to the Org Pgms Chief at FOLO as well as  to  the  Int  Finance
Ethics Officer located at Flag.

FBO ACTION

The usual FBO action would be

I     To get the situation HANDLED terminatedly and reported to the Cont
FBO at once with info copies of the report sent to FOLO and Flag Data Files
for that org.

2.    To get the related policy letters or other issues checked out on all
concerned.

3.    To require of the Dir I&R an investigation of the matter to  determine
the source of the situation and any out-ethics found  handled;  and  failing
that, the FBO, or Finance Enforcement Officer where posted, must  personally
investigate the matter and handle TERMINATEDLY.  The  results  of  any  such
investigation must be reported  to  the  Int  Finance  Ethics  Officer  with
copies to Flag and FOLO Pgms Chiefs.

REASON

One of the FBO's statistics is the A  LLOCATION-  PRODUCTION  ratio  of  the
org.

If his allocation buys VFPs, he can expect  a  rising  allocation-production
ratio statistic. Normally, this is assured  by  the  use  of  an  allocation
system which allocates against VFPs.

However, if the org and  divisional  necessities  are  denied  or  neglected
outside his view, he may find allocation-production crashed weeks or  months
later.

Also, too often FP and Finance are given  a  bad  name  in  connection  with
situations actually tracing to 1, 2, 3 or 4 above.

Finally, this policy letter gives staff  members  a  line  of  recourse  and
final appeal in the event that it is needed  to  ensure  the  continued  and
high volume production of valuable final products  of  their  divisions  and
the org.

No staff member may be made the subject of an ethics or justice  action  for
making an appeal which  conforms  with  this  policy  letter.  However,  not
making an appeal when it results in lessened  production  in  an  org  would
result in ethics or justice actions being taken against the staff member.

L. RON HUBBARD

Founder

Revision written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

CSI:LRH:dr.gm    Adopted as official

, 1982      Church policy by the

      CHURCH OF SCIENTOLOGY

      INTERNATIONAL

564



HUBBARD COMMUNICATIONS OFFI

            Saint Hill Manor, East Grinstead, Susse

      HCO POLICY LETTER OF 27 OCTOBER

            REVISED 16 SEPTEMBER 1983

Remimeo

FBO Hats         (Revisions in this type style)

Finance Enforcement

Officer Hats

Treasury Hats

Exec Council Hats

Orgs, Missions,  Finance Series 38R

SoCo, WISE, SMI,

Pubs  (Revised to clarify the definition of "bills")

CASH/BILLS DEFINED

(THIS HCO PL MODIFIES ANY OTHER EARLIER ISSUE WHICH MAY SEEM TO CONFLICT
WITH IT.)

Cancels:

BPL   i July 72R CASH/BILLS AND ORG RESERVES

References:

HCO PL 30 Sept. 65     STATISTICS FOR DIVISIONS

HCO PL 18 Jan. 65      FINANCIAL MANAGEMENT -

      BUILDING FUND ACCOUNT

HCO PL 28 Jan. 65      HOW TO MAINTAIN CREDIT STANDING

      AND SOLVENCY

HCO PL 3 June 59 FINANCIAL MANAGEMENT

HCO PL 31 Oct. 82      FINANCIAL PLANNING -

      RESPONSIBILITY FOR

(Revision of bills stat to be reported on the org O/C cable with first
report for WIE 13 October 1983. Revised stat report takes the place of old
stat on cable.)

The subject of the cash/bills statistic and  how  it  is  managed  has  been
loaded with false data for  years.  It  was  even  incorrectly  assigned  by
others to the Treasury Division of  the  org  as  its  GDS.  The  cash/bills
statistic is the statistical indicator of org solvency. The solvency  of  an
org has always  been  the  responsibility  of  the  org  Executive  Council.
Cash/bills is correctly an org statistic that is an Exec  Council  statistic
regardless of other statistics the individuals who are members of  the  Exec
Council may have.

SOLVENCY

The basic principle of financial management is a simple one:

INCOME MUST BE GREATER THAN OUTGO.

Other principles of financial management include:  One  cannot  spend  money
unless he has it.  Never  contract  bills  or  debts  unless  the  money  is
immediately in sight to pay for them. Calculate  all  predictions  necessary
for financial security. Disseminate like mad and make money rapidly.

So what is solvency9 Solvency is only that condition  where  income  exceeds
outgo. Insolvency is only that condition where outgo exceeds income.

CASH/BILLS STATISTIC

If one understands the simplicity of what solvency is, then  the  definition
of the cash/bills statistic becomes immediately evident when  one  considers
that this statistic is  intended  to  measure  the  degree  of  solvency  or
insolvency which exists in the organization.

565



CASH

The term "CASH," for the purpose of the cash/bills  statistic,  is  actually
"CASH ON HAND." It is the gross  cash  figure  which  the  org  has  in  its
accounts reconciled as of 2:00 P.m. Thursday. It does not  include  cash  in
the FBO accounts nor does it include  the  current  week's  income,  as  the
current week's income will be with the  FBO  in  his  accounts.  The  amount
which will be going into org accounts is determined by the allocation  given
by the FBO after 2:00 P.m. Thursday. Cash in the HCO Book  Account  is  also
not included as the HCO Book Account has its own cash/bills graph.

The "CASH" figure includes the total reconciled balances  in  the  Org  Main
Account and Org Reserves Account. Accounts such as  the  Service  Completion
Award Account, FSM Instant Payment Account and CVB Account are not  included
on the "CASH" figure as these are funds already  considered  committed  even
though in the case of the CVB Account it  is  intended  that  the  money  be
salvaged. When a potential refund is salvaged, the funds are added into  the
org CGI in the week salvaged and so will raise the "CASH"  figure  and  thus
the staff payroll amount. (You will also have saved  a  being.)  The  "CASH"
figure also does not include what had sometimes been known as "GO  reserves"
or the "GO Defense Fund." (These funds were actually set up by a former  DGF
WW in an attempt to put under GO control funds from orgs  that  should  have
gone to SOR for the good of all.)

BILLS

The "BILLS" stat is actually "BILLS OWINW' It is defined as the  total  debt
of the org, not including billings from management for  management  services
(e.g. evals, programs, missions to the org  and  other  management  services
which are paid for by the FBO from amounts over  and  above  the  allocation
given to the org for its financial planning). It does include  billings  for
staff training received on credit at higher orgs and  promotional  materials
received from other orgs, as these are routine FP items and  are  paid  from
the allocation given by the FBO for use in FP.

The bills stat is computed based on the total  accumulation  of  all  monies
owed by the org, except management billings as above, whether due in PT  for
payment or not. Thus one can see that regardless of whether a bill has  been
received or not, if the org is in any way committed  to  pay  out  funds  it
would have to be included.

It is the FBO of the org that  takes  care  of  the  payment  of  management
billings, and these are included in his statistic  of  payments  to  central
reserves. Just as the payment of these management billings is  not  included
on the org~R bills paid statistic, the bills themselves are not included  in
the bills statistic.

REPORTING

The cash/bills statistic is reported each week on the org OIC cable.

The figures reported are to be the totals as of 2:00 P.m.  Thursday  of  the
previous week, as it would delay the sending of the OIC cable  to  get  done
the necessary bank account reconciliations and bills  calculations  for  the
current week.

(Note: This procedure of reporting the cash/bills  totals  of  the  previous
week is a temporary measure  until  such  time  as  Treasury  Divisions  are
sufficiently manned and functioning, and  at  that  time  this  PL  will  be
modified so that the org's cash/bills  statistic  as  reported  on  Thursday
will be the cash/bills figures as of that same Thursday.  In  the  meantime,
however, the cash/bills figure that goes on Thursday's OIC cable  report  is
last week's reconciled org cash and last week's org bills owing.)

566



TREASURY DIVISION

The correct GDSes for the Treasury Division are as contained in  HCO  PL  30
September  1965,  STATISTICS  FOR  DIVISIONS,  OEC  Vol  1,  page  328.  The
statistic is dual: CREDIT COLLECTIONS VERSUS BILLS PAID. As covered in  that
PL "It will be seen that gross income is established by many in the org  but
collections as a special income is purely the Org  Division's.1  Bills  paid
require gross money in, so reflects the gross-no money in,  no  bills  paid.
This is a dual statistic  which  shows  the  industry  of  the  division  in
general. It even touches materiel as no bills paid equals no supplies."

These were the Treasury Division stats of old Saint Hill and  are  as  valid
now as they were then. When somebody made cash/bills the  Treasury  Division
GDS, this gave Div Ills the same stat as that of the GO in 1966 when the  GO
had a finance function. It resulted in org Div Ills "being run" directly  by
the GO on a bypass of org executives. The end result  of  that  has  been  a
solvency situation still being untangled in  some  orgs  as  the  cash/bills
stat has been continually manipulated by trying to save orgs  into  solvency
which has actually resulted in "saving" some into insolvency.

FINANCIAL MANAGEMENT

Any org executive or finance terminal who knew his basics cold  and  applied
them would have no trouble making an org solvent and prosperous.

The stable datums in handling org solvency are contained in  HCO  PLs  going
back to the 1950s. They are all in OEC  Volume  3.  The  most  basic  stable
datums are contained in HCO PL 28  January  1965,  HOW  TO  MAINTAIN  CREDIT
STANDING AND SOLVENCY:

"The secret of solvency is

1     Make a lot of money. The way to do that in Scientology is covered in
HCO

Policy Letter of January 21, 1965, PROMOTION AND ORGANIZA

TION .2

2.    Spend less than you make. That's covered by having a good PO system
and alert financial management.

3.    Make it before you have to spend it.

4.    Gather bit by bit a cushion of cash to fall back on and don't ever
fall back on it.

5.    Keep your credit excellent as a second cushion.

6.    Refuse to spend reserves.  Make  more  money  to  meet  the  emergency
instead. (It's usually quicker to make it than to dig it out of  old  hiding
places. Never borrow to pay bills.  It's  less  trouble  just  to  make  the
money.)

7.    Realize that collective thought regarding finance  is  just  bank  and
that bank is dead against the creation of anything good and all  for  eating
up everything that  exists.  Thus  financial  planning  and  control  is  an
individual job, is often contrary to group demands and  succeeds  only  when
the individual handling it can rise  superior  to  the  group.  A  tame  dog
financial manager, trailing along  behind  the  group,  yessing  everything,
will always make the group insolvent.  The  person  you  put  in  charge  of
financial management should be able to say 'No!' no  matter  how  popular  a
silly 'Yes' would be. The financial manager is not  there  to  buy  his  own
popularity with org funds."

SUMMARY

The cash/bills statistic measures org solvency.  Therefore  its  calculation
must show the ACTUAL state  of  solvency.  Others  in  the  past  sought  to
manipulate it to show an 44up statistic" for their own false status.

Correctly assigning cash/bills as an org statistic to  the  org's  Executive
Council shows the degree of competence of those executives  and  giving  the
Treasury  Division  their  correct  GDSes  puts  them  at  cause  over   the
statistics they actually control and can be managed by.

567



With these statistics correctly assigned and properly managed, the
financial prosperity of orgs is assured.

Good luck!

L. RON HUBBARD

Founder

Written at the request of the CHURCH OF SCIENTOLOGY INTERNATIONAL

Original compilation and revision Assisted by WDC for Reserves

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:WDCR:iw.gm Copyright 01982, 1983

1.    Org Division is an earlier name for the Treasury Division.

2.    HCO Policy Letter 21 January 1965, PROMOTION AND ORGANIZATION, was
revised 5 April 1965 and titled VITAL DATA ON PROMOTION and can be found in
OEC Volume 2.

568



            HUBBARD COMMUNICATIONS OFFICE

            Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 31 OCTOBER 198

Remimeo

Executive

      Council Hats

Ad Council Hats

FBO Hats

Treasury Hats    (This policy letter modifies any previous issue which

Dept Heads  states or infers that the financial planning for an org

            is solely the responsibility of the Advisory Council.

            The major responsibility for financial planning lies

            with the Executive Council as it is the governing

            body responsible for the org's solvency.)

Finance Series 39

FINANCIAL PLANNING - RESPONSIBILITY FOR

(R ef.

HCO PL 26 Nov. 65R     FINANCIAL PLANNING

      Rewritten 31 Oct. 82

HCO PL 21 Dec. 66 1    ADVISORY COUNCIL

HCO PL 21 Dec. 66 11   EXECUTIVE COUNCIL

HCO PL 26 Oct. 68      EXECUTIVE COUNCIL

HCO PI, 29 Jan. 71R    Finance Series IR

      Rev. 27.10.82    FLAG BANKING OFFICERS

HCO PL 3 Sept. 82      Finance Series 35

            DEPUTY FBO FOR MARKETING OF

            ORG RESOURCES FOR EXCHANGE

            (D/FBO FOR M.0.R.E.) - PURPOSE

HCO PL 27 Oct. 82      Finance Series 38

            CASH/BILLS DEFINED)

Financial planning means handling the assets of an org  and  allocating  its
funds in such a manner as to achieve income greater than outgo.

The basic purpose of all financial planning is to increase  the  wealth  and
assets of the organization in order to help achieve its goals  and  purposes
and its expansion.

Financial  planning  was  originally  the  responsibility  of  the  Advisory
Council which, in 1965, was composed of the HCO Exec Sec and  the  Org  Exec
Sec and was understood to include the org's Executive Director. As a  result
of an evolution in org pattern the Executive  Council  was  formed  and  the
Advisory Council was then made up of  the  divisional  secretaries  and  any
duly elected representatives from other units or areas.  (Ref.  HCO  PLs  21
Dec. 66, Issue 1, ADVISORY COUNCIL and Issue 11, EXECUTIVE COUNCIL.)

Despite these policies, which clearly state financial planning is a  primary
duty of Executive Council, with the role of the Advisory  Council  being  to
originate, advise and recommend to Executive Council measures for  approval,
confusion seems to have persisted in some areas as  to  who  actually  wears
the financial planning hat.

569



To set the matter straight, the correct datum is

THE EXECUTIVE COUNCIL IS RESPONSIBLE FOR FINANCIAL PLANNING AND ACTS ON  THE
ADVICES OF THE AD COUNCIL (AND IT, THE AD COUNCIL, IN TURN GETS  ADVISED  BY
THE HEADS OF DEPARTMENTS).

By  Executive  Council  is  meant:  The  council  composed  of  the   senior
executives of the org-the ED or CO, the HCO Exec Sec, the Org Exec  Sec  and
the Public Exec Sec.

By Advisory Council is meant: The council composed primarily  of  the  heads
of the divisions of the org-the divisional secretaries.

(Where a complete Org  Officer  system  exists  in  an  org,  the  financial
planning can be delegated to the Org Officers to do but still requires  Exec
Council approval before going to the FBO.

Ref. HCO PL 9 May 74, PROD-ORG, ESTO AND OLDER SYSTEMS  RECONCILED  and  HCO
PL 7 Mar. 72, Rev. 13 Apr. 72, Esto Series IR, THE ESTABLISHMENT OFFICER.)

In practice,  the  department  heads  of  a  division  would  see  that  any
necessary purchase orders from their departments were sent to the div  head,
along with full CSW and advices as to the department's needs.

The Advisory Council meets and, taking into consideration the  advices  from
the department heads,  does  its  proposed  income  planning  and  financial
planning for the week and  submits  its  recommendations  to  the  Executive
Council.

The Executive Council, with the solvency and expansion of the org  in  mind,
reviews the proposed income planning and financial planning. It acts on  the
Ad Council's proposals and acts as well on any recommendations from the  FBO
or the Deputy FBO for M.0.R.E. (Ref. HCO PL 3 Sept. 82, Finance  Series  35,
DEPUTY FBO FOR MARKETING OF ORG RESOURCES FOR EXCHANGE [D/FBO FOR  M.0.R.E.1
PURPOSE.) It operates on the Bean Theory. (Ref. HCO PL 19 Mar.  71RA,  Issue
11, Finance Series 7RA, BEAN THEORY-FINANCE AS A COMMODITY.)  It  sees  that
plans are made for effective promotion and delivery of the org's  goods  and
services and that the org's funds are  wisely  allocated  so  that  the  org
makes far, far more money than it spends. On  this  basis  it  may  add  to,
subtract from, amend or approve the proposed financial planning,  or  return
it to the Advisory Council for correction or revision.

Once approved by the Executive Council, the financial planning,  along  with
the projected income plan, Accounts Summary, Bills Summary and  Income  Note
Collections Summary, is sent to the FBO.  The  FBO  is  the  final  approval
authority for the org's FP. He would review the  FP  himself  and  have  the
D/FBO for M.0.R.E. check any portions of the FP that concern the hat of  the
D/FBO for M.0.R.E. The FBO and D/FBO  for  M.0.R.E.  look  at  FP  from  the
viewpoint of whether the funds proposed to be  spent  will  result  in  more
production and more funds back into the org than are being  spent.  The  FBO
is not there to do the org's financial planning  himself.  He  ensures  that
the Exec Council  wears  that  hat  and  verifies  that  it  is  being  done
correctly to buy more income and production. When satisfied that all  is  in
order, the FBO gives the org its allocation.

The line goes from the department heads  to  the  Advisory  Council  to  the
Executive Council to the FBO.

Although the FBO is the final approval terminal for  the  allocation  before
the FP can be activated, the Executive  Council  is  fully  responsible  for
financial planning for the org. This includes long-range financial  planning
as well as the weekly FP. In the final analysis,  the  financial  health  of
the org is in the hands of the Executive Council. This is why the  statistic
of the Executive Council is org cash/bills, as it is the statistic

570



which reflects the competence of the Exec Council to manage the finances  of
the org and bring about a very solvent and prosperous org. If cash/bills  is
improving by trend, you know that the Exec Council is wearing its  financial
planning hat correctly.

Where an Executive Council or any member of it  is  not  wearing  this  hat,
responsibility for the org as a whole is missing  and  it  will  show  in  a
declining cash/bills spread by trend.

With sound financial management,  an  active,  on-policy,  on-hat  Executive
Council can build a viable, expanding and prosperous org.

L.RON HUBBARD

Founder

Written at the request of the BOARD OF DIRECTORS of the CHURCH OF
SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:pm.iw.gm

571



                 HUBBARD COMMUNICATIONS OFFICE

                 Saint Hill Manor, East Grinstead, Sussex

            HCO POLICY LETTER OF 26 NOVEMBER 1965R

Remimeo          REWRITTEN 31 OCTOBER 1982

Executive

      Council Hats

Ad Council Hats

FBO Hats

Treasury Hats

            (In 1965, when this policy letter was originally written, it

            was the Advisory Council's hat to do financial planning.

            At that time the Advisory Council consisted of the

            senior executives of the org. Later, with the introduction

            of the seven div org board, what was the Advisory

            Council became the Exec Council and the Div Heads

            Council took on the name of Advisory Council. With

            the introduction of this change, some staff mistakenly

            thought that the final org responsibility for financial

            planning became the territory of the div heads which

            would, of course, be impossible as it is the Exec Council

            who are held responsible for the solvency of the org as is

            clearly expressed in  HCO PL 21 Dec. 1966, Issue 11,

            EXECUTIVE COUNCIL. The real datum is that the

            Exec Council is responsible for financial planning and

            acts on the advices of the Ad Council and in turn the Ad

            Council gets advised by the heads of departments.

            Therefore, this HCO PL has been updated to reflect the

            changes which have occurred since the original issue,

            including the role of the FBO in relation to financial

            planning.)

                 (Revisions are not in script.)

Finance Series 40

FINANCIAL PLANNING

(References:

HCO PL 31 Oct. 82      FINANCIAL PLANNING -

            RESPONSIBILITY FOR

HCO PL 21 Dec. 66      EXECUTIVE COUNCIL

      Issue II

The Finance Series Policy Letters.)

Financial planning means: how to handle the money and assets of  an  org  so
as to maintain outgo below income.

The financial planning hat, in the final analysis, is worn by the  Executive
Council, as theirs is the responsibility for the successful conduct  of  the
org as a whole.

In this, it is assisted by the Advisory Council, whose responsibility is  to
assist the Executive Council in planning for the solvency of the org and  to
propose to the Exec Council sane and prosurvival handlings  for  its  income
and assets. The Ad Council,  in  turn,  is  advised  by  the  heads  of  the
departments.

Once the Exec Council has reviewed and approved the financial  planning,  it
is then  forwarded  to  the  FBO  for  approval  of  the  allocation.  Final
authority for the

572



allocation is the hat of the FBO and he may approve it  as  proposed,  lower
it or raise it in accordance with the policies issued in the Finance  Series
to  ensure  that  his  allocation  will  result  in  increased  income   and
production. In exercising this authority the FBO may override  the  proposal
of the Exec Council and his decision is final.  Where  an  Exec  Council  is
seen to be properly wearing its financial planning hat and  is  getting  the
required income and production expected from the org, the FBO  would  simply
verify this for himself and verify that the allocation requested is  correct
and then transfer to the org the approved allocation.

The actions of financial planning are as follows:

1.    Income planning. This is planning which forces in marketing,
promotion, sales and delivery which will result in income.

It is the first step in the sequence as income must be made before it can
be spent.

2.    Ensuring that Financial Planning Program No. I is  done  for  the  org
and maintained. (Ref. HCO PL 28 October  1982,  FINANCIAL  PLANNING  PROGRAM
NO. 1.)

3.    Directing the outlay of funds necessary to execute  its  planning,  in
alignment with HCO PL 19 Mar.  71R,  Issue  11,  Finance  Series  7RA,  BEAN
THEORY -FINANCE AS A COMMODITY.

4.    Directing the payment of bills.

5.    Directing any necessary delay in the payment of certain bills.

6.    Handling finances in accordance with "dateline paying" as covered in
an early policy letter.

7.    Setting limits on the purchase orders that may be signed.

8.    Preventing divisions or departments in Emergency from buying any but
essential promotional supplies or postage.

9.    Adjusting payrolls.

10.   Setting limits on pay, overtime or bonuses and all authorizations for
pay, overtime or bonuses.

11.   Reviewing prices, to ensure all the  org's  services  are  priced  and
priced properly and where any adjustments are needed, getting  authorization
for such from top management.  (Prices  may  not  be  set  locally  in  orgs
without top management authorization.)

12.   Directing any transfers of funds.

13.   Deciding upon any large purchases.

14.   Authorizing the sale of any equipment or property.

15.   Passing upon prices offered for any equipment or property.

Any matter affecting the financial health of  the  organization  has  to  be
passed upon or planned by the Executive Council and authorized by the FBO.

FINANCIAL PLANNING SCHEDULE

While overall financial planning for the solvency of the org must  exist  in
mediumrange form, as in Financial  Planning  Program  No.  I  and  in  other
longer range programs which align with any strategic planning for  the  org,
the immediate handling

573



of the org's income and assets is done on a weekly basis.

The weekly financial planning is taken up  each  Thursday  night  after  the
week's end and is a vital part of the Executive  Council  meeting  for  that
week. From the Executive Council the completed FP goes to the  FBO  for  his
final approval.

Thus the three major summaries which have always been required for  standard
FP (the Monthly Bills Summary, Monthly  Accounts  Summary  and  Income  Note
Collections Summary) are still required and made up in monthly  format,  but
they must also be updated weekly for the weekly FP.

DISBURSEMENT SECTION

The  Disbursement  Section  furnishes  the  data  without  which   financial
planning is impossible.

A short summary of the data required for financial planning is as follows:

The Disbursement Section files  every  bill  received  in  the  disbursement
files. It also files every purchase order in these files (once the  purchase
has been made). (Ref: HCO PL 2 Mar. 65, PURCHASE ORDER FILING.)

Those bills that are repetitive and purchase orders that are  for  materials
from companies from whom goods or services are ordered regularly  are  filed
in folders under the company name.  The  one-time  bills  and  the  one-time
purchase orders are filed in a loose folder for a single month.

The Disbursement Section has made  up  a  mimeographed  form.  This  is  the
Monthly Bills Summary.

This form has the name of each company with  which  the  org  does  business
plus adequate blanks after each alphabet letter  for  new  companies  to  be
added.

This form has four columns. The  first  column  is  the  company  owed.  The
second column is the grand total of  money  owed  that  company.  The  third
column is the amount that is past due. The fourth column is the month  since
when the bill has been past due.

All bills are fided on arrival. They are not kept out and entered. They  are
filed in the folders. This is important. No one must pay  bills  just  taken
from the post [mail] and saved up. They are promptly filed.

Then one takes the folders one  by  one  and  makes  up  the  Monthly  Bills
Summary.  As  each  folder  is  taken  up,  the  bills  are   examined   for
correctness, straightened up and  entered  in  the  Monthly  Bills  Summary.
Purchase orders where the purchase has been made but no  statement  has  yet
come in must also be filed and entered on  the  Monthly  Bills  Summary  as,
statement or no, this money is owed.

The way the system breaks down is to make up too many folders.

Only a repeating creditor rates a folder. One the  org  does  business  with
routinely like the light company, the landlord, the paper company, etc.  The
occasional bills and  the  activated  purchase  orders  for  the  occasional
creditor go into the occasional bills folder for the month.

Each time a Monthly Bills Summary is made up,  the  occasional  folders  for
past months containing unpaid bills and used but  not-yet-paid-for  purchase
orders are gone through again and added to the statement.

The statement for one month complete, then tells one the total  monies  owed
by the org for that month. Thus there is a statement for each month,

574



While this is made up and used in a monthly format, it must now  be  updated
weekly in order to provide an accurate picture for those handling  financial
planning.

The Monthly Bills Summary, updated for the week, is due in the hands of  the
Executive Council for the weekly Thursday night  Executive  Council  meeting
which includes FP.

BANK RECONCILIATION SECTION

The Bank Reconciliation Section of the Dept of Records, Assets and  Materiel
makes up the latest bank records of monies on deposit  concurrent  with  the
Monthly Bills Summary.

This section (concurrent with the  Monthly  Bills  Summary)  reconciles  all
bank statements, tapes all canceled checks  on  their  counterfoils  and  in
short makes certain there are no bank errors or omissions.

A Monthly Accounts Summary is then prepared showing the amount in each  bank
account. This too is a mimeographed form showing  the  names  of  the  banks
used, checks outstanding, etc. It also carries a total sum of monies in  the
bank.

This form also carries a section devoted to loans outstanding that  the  org
must pay.

The Monthly Accounts Summary form, once made out,  is  then  updated  weekly
and submitted to Executive Council on Thursday  night  for  their  financial
planning.

INCOME NOTE COLLECTIONS SUMMARY

THE COLLECTIONS SECTION

The Collections Section of the  Department  of  Income  submits  to  the  Ad
Council a form called the Income Note Collections Summary.

This form carries an amount for cash collectible  from  notes  (possible  to
collect) and a cash collectible from notes past due and the amount of  notes
that are apparently uncollectible. The total is added into  grand  total  of
Credit Advanced.

It gives the total of payments received during the month past  (the  Ist  to
the last day of the month).

It gives the number of statements mailed in the month just past.

It gives the number of persons with overdue notes who have been handed  over
to the Director of Clearing and passed on to field staff members.

The Income Note Collections Summary is then updated weekly and,  along  with
the updated Monthly Bills Summary and Monthly Accounts  Summary,  is  placed
in the hands of Executive Council on Thursday night in time for  the  weekly
financial planning.

EXECUTIVE COUNCIL ACTION

The  first  action  of  the  Executive  Council  is  to  prepare   and   get
mimeographed the three forms described herein.

The second action of the Executive Council is  to  make  sure  the  Treasury
Division is so organized as to be  able  to  make  out  the  forms  provided
easily, that their files are so arranged as to  do  so  and  that  personnel
exists to do them.

The third action of the Executive  Council  is  to  make  sure  the  persons
making up the forms know this and other pertinent policy letters.

575



The fourth action of the Executive Council is to make sure that it  receives
the proper  forms,  updated  each  week  and  ready  for  use  in  financial
planning.

The fifth and continuing action of the Executive Council  is  to  make  sure
routinely the forms are accurate and actual and not generalized or  "roughly
estimated."

The sixth and most important action each week is to plan financially on  the
basis of the three reports and set limits or restraints on POs or  personnel
numbers or whatever is necessary to achieve "outgo  less  than  income"  and
get or keep the org solvent.

Upon completion of the financial planning, the  Executive  Council  forwards
the FP to the FBO for final approval.

INCOME

The Executive Council's actions of assigning conditions to divisions on  the
basis of the gross divisional statistic  and  actions  in  straightening  up
divisions  in  Emergency,  strengthening  Affluences  and  pushing  standard
promotion as per HCO Policy Letter 20 November 1965R, will keep income up.

It is more vital to pressure income up  than  to  save  money  by  financial
planning restrictions. The Emergency Formula places, rightly, economy  after
promotion. Promotion comes first.

But economy is also vital. It is handled in relation to income.

When income is far down, the Executive Council  simply  shuts  off  all  but
promotionally vital POs.

Where a division is in Emergency the Executive Council  shuts  off  all  POs
except those vital to  promotion  in  that  division.  (The  tendency  of  a
division  in  Emergency  is  sometimes  to  demand  extravagant  or   unwise
purchases.)

CHECK SIGNING

The check-signing line contains all three of the above  reports  as  of  the
last time they were prepared and a tape of all checks paid since.

Check-signing policy  as  already  released  thus  requires  the  other  two
monthly reports as well as the other items specified.

To that policy, also add, that a check signer must, to sign  a  check,  also
have before him the last issued orders of the approved financial planning.

It is very easy to confuse a check-signing line with a financial planning
line.

They are, however, completely different.

One signs any  check  only  after  financial  planning  has  been  done  and
approved and with the total reports  of  financial  planning  and  decisions
taken, before one.

Check signing is a secondary action and is the result of financial  planning
decisions.

One pays only what financial planning has okayed to be paid and how.

DISBURSEMENT ACTION

When financial planning indicates what to pay or not  to  pay,  Disbursement
makes up the checks and sends the lot to check signers.

576



Checks signed during the  period  are  signed  as  authorized  by  financial
planning each week, such as "Franking machine,  FSM  commissions  and  petty
cash up to

may be paid in the coming  week."  This,  part  of  the  financial  planning
minutes of each meeting, is the guide by which weekly checks  are  made  up,
submitted to signers, signed and sent.

SUMMARY

Unless all these actions are done, an org cannot in fact prosper,  has  poor
credit and is generally upset.

One has to get in the income. That is done by income  planning  and  demand,
and  by  making  divisions  do  their  proper  promotions  and  keep   their
statistics up. The mechanism is gross divisional statistics,  assignment  of
conditions and investigating and putting right, divisions in  Emergency  and
strengthening the actions that have brought about  Affluences  by  Executive
Council personal inspection. This is the first  part  of  Executive  Council
assignment  of  conditions  to  divisions.  Sometimes,  where  a  divisional
emergency is continued too long, the Executive Council has to  order  an  E-
Meter and case survey of its personnel as an SP is surely about.

In financial planning one safeguards what one gets in as described above.

Check signers and PO signers are not necessarily Executive  Council  members
but, whether they are or not, are governed entirely  by  the  last  approved
financial planning directive.

The financial planning directive of the week is issued  promptly  after  the
FP is finally approved, as a local Executive Directive, with  the  week  and
financial planning of it in caps, such as: FINANCIAL PLANNING FOR  THE  WEEK
OF

Financial planning is the second part of the  Executive  Council  assignment
of conditions to divisions.

Long-range  planning  also  appears  on  this  directive.  This   long-range
financial planning is not binding and is often changed in  view  of  current
happenings. It is a guide by which other executives can tentatively plan.

L. RON HUBBARD

Founder

Rewritten at the request of the BOARD OF DIRECTORS of the CHURCH OF
SCIENTOLOGY INTERNATIONAL

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:ep.ca.rd.pm.iw.gm , 1982

577



HUBBARD COMMUNICATIC

      Saint Hill Manor, East Grinst

HCO POLICY LETTER OF 9 JA

Remimeo

Finance Packs

FBO Hat

D/FBO for MORE Hat

Exec Council

Ad Council

Finance Series 41

VIABILITY

THE MAKE-BREAK POINT OF AN ORG

The CASH/BILLS statistic, when accurately computed,  will  tell  whether  an
org or any company is solvent. It tells one where he stands in present  time
on a week-toweek basis. But viability is an entirely  different  concept  as
it deals with the future. One may have enough cash to  cover  his  bills  at
this moment but will he be able to continue to survive and prosper? That  is
where viability comes in.

COST ACCOUNTING

The way one would get an idea of the viability of  a  company  would  be  by
applying  a  formula  of  cost  accounting.  The  formula  is   THE   STOCKS
REPLACEMENT COST PLUS THE RUNNING EXPENSES OF THE COMPANY VERSUS  THE  GROSS
SALES OF THE COMPANY, AND THAT IS THE COST ACCOUNTING FORMULA.

This is quite simple to see for something like a  Pubs  Org  where  you  are
dealing with a physical universe commodity. You have  books,  meters,  tapes
and so on and it costs you a certain  amount  to  manufacture  these  and  a
certain amount to run the organization itself to bring about a  manufactured
product, to promote, to take orders, deliver and to  see  that  the  product
finally winds up in the hands of the consumers.

It is really no different in a public service org except that your  "stocks"
are auditing and training services as well as books, meters  and  so  forth.
So one would have to look at those "stocks" in terms of what  it  costs  the
organization to  make  those  services  available  for  public  consumption,
including the cost to  the  organization  to  procure  and  train  auditors,
Supervisors and so on.

FP PROGRAM NO. 1

The concept of viability directly relates to an org's FP No. 1.  A  REAL  FP
NO. 1 GIVES YOU YOUR MAKE-BREAK POINT IN AN ORG. YOU  CAN  COMPARE  YOUR  FP
NO. 1 AGAINST YOUR GI AND  CGI  AND  TELL  WHETHER  THE  ORG  IS  VIABLE  BY
COMPARING THESE FIGURES. I'm talking about a  real  FP  No.  1  that  covers
every actual expense under the sun, moon and stars which is required to  run
an org and that must include what it will cost to bring  about  the  ability
to deliver training and processing in volume and with high  quality.  It  is
notjust what one "can get by on this  week."  All  too  often  an  org  will
actually limit its income and delivery potential by  not  spending  what  it
should in order to increase public inflow and delivery.  That  doesn't  mean
that one spends what one makes, as that is the sure road to insolvency;  but
it does mean that one must be very wise in financial planning to invest  his
beans into things which will result in more beans  back;  and  by  doing  so
continually, one builds an org bigger and bigger and  increases  his  degree
of viability.

The degree of viability in an organization depends,  in  the  main,  on  the
degree of intelligent application of proven methods of promotion, sales  and
delivery by its executives and staff. In Scientology  these  proven  methods
are contained in HCO PLs, HCOBs, tapes, books and films. One could  actually
get a very good idea of the degree

578



an org is running  on-policy  and  in-tech  by  measuring  the  relationship
covered in the cost accounting formula. An org  that  is  struggling  along,
being dunned by creditors, having few students and pcs in  the  shop  is  an
admission by its executives and staff that policy and tech are out in  their
org.

UNDELIVERED SERVICE

It is fairly obvious that an organization that received  income  and  didn't
deliver could not survive for long. So  when  viewing  viability,  one  must
also take into account what delivery backlogs exist.

Having paid-for-but-not-delivered service is actually quite a liability  for
an organization as it will now cost the  organization  more  to  deliver  it
than if it had delivered the service at the time it was paid  for.  It  will
require additional expense to get it delivered in  the  way  of  promotional
expenses to call the person in, more auditors or Supervisors to  handle  the
backlog without disrupting current delivery  plus  the  factor  of  monetary
inflation related to all funds expended. What it  would  have  cost  you  to
deliver an intensive of auditing or a book two years  ago  is  not  what  it
will cost you today. Not only that-someone is  also  a  potential  repayment
threat if not delivered to and so anything spent earlier  or  now  to  bring
that person in could get no bean return  (because  the  beans  were  already
collected) and in fact cost the org any future potential  income  from  that
person. Most importantly, we'll never clear the planet  just  by  collecting
advance donations! Delivery is a MUST!

So in viewing the org's viability and in doing an FP No.  1,  the  org  must
also take into account the paid-for-but-not-delivered service  and  what  it
will cost to get it delivered in addition to new procurement and delivery.

SUMMARY

A wise Executive Council in an org should give  very  careful  consideration
to income planning, taking into  account  existing  and  potential  delivery
capability as well as the handling of backlogged  delivery  and  then  do  a
real FP No. I that takes into  account  every  single  expense  involved  in
making that income and delivery possible. They would then  program  out  how
to accomplish what is planned and get it DONE, all the while  ensuring  that
the org never spends more than its CGI plus reserves, and by wise  financial
management and adherence to standard policy  and  tech  get  more  and  more
return from the beans expended.

And to the degree that income increases above that  FP  No.  I  amount-well,
that's just how viable that org is.

L. RON HUBBARD

Founder

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:iw.gm

579



HUBBARD COMMUNICATR

      Saint Hill Manor, East Grinst

HCO POLICY LETTER OF 4 A

Remimeo All Exec Secs Exec Council Hats Div Heads Ad Council Hats

FBOs

D/FBOs      Finance Series 42

FINANCIAL PLANNING PROGRAM NO. I

R efs:

LRH ED 55 INT    FINANCIAL PLANNING PROGRAM

      NO. I

LRH ED 79 INT    FINANCIAL PLANNING PROGRAM

      NO. 1 ADDITION

HCO PL 9 Jan. 83 VIABILITY - THE MAKE-BREAK

      POINT OF AN ORG

(This policy letter is reprinted from LRH ED 55 INT, 10 Dec.  69,  FINANCIAL
PLANNING PROGRAM NO. I and LRH ED 79 INT, 20  Jan.  70,  FINANCIAL  PLANNING
PROGRAM NO. I ADDITION with minor additions and revisions to  encompass  the
current operating scene of an org.)

Carefully planned financial handling will result in an organization which
is not only solvent but expanding on a sound gradient scale. A real FP No.
1 gives you your make-break point in an org (see HCO PL 9 Jan. 83,
VIABILITY - THE MAKEBREAK POINT OF AN ORG).

To do this an organization has to first of all assess the following:

1.    How many basic staff members are required to run and handle the
organization?

2.    How much is required for the basic organizational needs to merely
KEEP the

organization there:

a.    How much is the rent weekly (or mortgage or reserves loan
repayments)?

b.    How much is the telephone weekly?

C.    How much is the electricity weekly?

d.    How much is the water weekly?

e.    How much are rates weekly (property taxes)?

f.    How much are costs weekly to cover any other taxes, corporate or
legal matters?

g.    How much is needed for natural gas or heating fuel weekly?

h.    How much is needed weekly for Estates to maintain the org buildings
and mest?

i.    If building is owned, how much is needed weekly for
improvements/upkeep of the building so it retains and increases its value?

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j.    How much are basic admin supplies like pens, paper, file folders,
carbon paper, staples, paper clips, etc., weekly?

3. How much is required for basic promotional actions:

a.    How much are envelopes, stationery and stamps for so many Letter
Registrar letters out weekly?

b.    How much is required to keep up and mail out advance registration
packets weekly?

C.    How much does it cost on a weekly basis to mail a magazine or broad
mailing to your full address list once a month?

d.    How much does it cost on a weekly basis to mail out statements to
people who owe the organization money?

e.    How much does it cost to mail out information packs to your new names
weekly?

f.    How much does it cost to advertise your basic Div 6 services?

g.    How much does it cost weekly to cover any awards programs?

4.    How much does it cost weekly to keep in your basic communication
lines:

a.    How much should your average weekly payment to management be?

b.    How much does it cost weekly to pay your 10% or 15% FSM commission
and to service and give your FSMs materials to select people to your org?

C.    How much is your weekly mimeo expense internally and/or to  Pubs/FOLO?
This covers remimeoing all  issues  for  staff  distribution,  org  business
forms, mimeo files, newsletters, and payment to Pubs/FOLO for mimeo sent  to
your org.

d.    How much is the weekly cost of freight, mail and telex to keep the
org in comm with management?

e.    How much is your average weekly deposit to your general liability
fund so as to build up a reserve in case of necessary legal expenses?

f.    How much is your average weekly film lease fee?

g.    How much is the weekly average cost of LRH lecture tapes for use in
public tape plays?

5.    How much is required for basic delivery actions:

a.    How much is clay weekly?

b.    How much is required to keep tape players operational?

C.    How much does it cost weekly to keep up supplies of mimeo forms?
(Auditor Report Forms, routing forms, pink sheets, auditing lists, etc.?)

d.    How much does it cost on a weekly basis for auditor worksheet paper?

C.    How much is needed weekly for course materials? (Reference  books  for
courses, HCOBs,  policy  letters,  course  packs,  dictionaries,  translated
tapes, etc.?)

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f.    How much is the weekly payment for staff  training  at  a  higher  org
(FLAG, New World Corps, Cont Tech Training Corps or Admin Training Corps  at
FOLO, etc.) including any payments for previous training not yet fully  paid
off?

6.    How much is required to handle the sale of LRH books, meters, tapes,
cassettes,

insignia and other HCO Book Account items~

a.    How much is the weekly average cost to restock items which have been
sold?

b.    How much is the weekly cost for promotion and marketing of Book
Account items?

C.    How much needs to be set aside to purchase new items such as new
books or cassettes?

d.    How much is the weekly cost of shipping and packaging to handle mail
order?

(NOTE.. ALTHOUGH THE HCO BOOK ACCOUNT IS INCLUDED HERE, IT  IS  ADMINISTERED
SEPARATELY AND IS UNDER THE CONTROL OF THE D/FBO FOR  M.0.R.E.  ITS  USE  IS
NOT SUBJECT TO REGULAR WEEKLY FP, AND EXPENSES FROM IT MAY NOT  BE  CUT  DUE
TO ANY SITUATION RELATED TO OTHER ORG EXPENSES.)

The list above provides the guidelines for any org  in  calculating  its  FP
Program No. 1.

Sea Org Orgs and Units would need  to  plan  additionally  for  basic  staff
welfare expenses such as the  amounts  needed  weekly  for  crew  allowance,
food, medical and dental expense, basic  cleaning  supplies,  basic  housing
and berthing supplies, child care. crew uniforms, laundry, transport, etc.

A management org might also have other  basic  expenses:  for  example,  the
basic amount needed to be set  aside  weekly  for  mission  (Action  Bureau)
expenses, etc.

Any org would review the  list  provided  above  for  any  additional  basic
expenses or any not applicable and would then work out its FP No.  1  within
the purpose of the functions of that org. A real FP No.  1  must  take  into
account every single expense involved in keeping the org  there  and  making
it capable of selling, calling in and delivering to  public  in  volume  and
with quality.

HOW TO USE THIS PROGRAM

After carefully figuring out your weekly costs as per above,  you  now  know
exactly how much income you will require weekly in order  to  exist  and  to
promote. If you do not make this amount of income weekly, you will  know  at
once that you are  spending  more  than  you  are  making,  at  which  point
everything must be done to sell more services to your public.

An organization could be in the situation where it has spent  more  than  it
has made; in other words, it has greater bills than it has money with  which
to pay them. Now this places an organization  into  a  Danger  condition  as
regards the society which runs on the basis  generally  of  "pay  within  30
days or else."

An organization in this situation, therefore, has got  to  make  more  money
than simply its basic weekly costs. Therefore, all excess  monies  over  its
basic weekly costs must be used to pay off its bills, carefully paying  such
on a dateline payment basis and as per policy  with  regard  to  threatening
creditors.

When an organization is no longer in a Danger condition as  regards  society
and now has more income than it has in  bills,  it  can  gradually  use  its
excess income to do

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more promotion, to  expand  its  staff  to  make  more  income  to  do  more
promotion and to buy more facilities to increase promotion and so on.

There are many ways an  organization  can  obtain  service  facilities  like
chairs, desks, typewriters, address machines, and mimeo or  offset  machines
without driving the organization into debt  and  causing  it  to  have  vast
monthly payments which exceed its ability to  pay.  Inexpensive  second-hand
equipment can be obtained while the org  sets  aside  so  much  money  until
outright purchase can be made or it can lease equipment with  an  option  to
buy.

There is definitely a maxim with regard to money and it is THE  LESS  AMOUNT
OF INCOME AN ORGANIZATION OR AN  INDIVIDUAL  HAS,  THE  MORE  CAREFULLY  AND
WISELY FINANCIAL PLANNING MUST BE DONE.

PROGRAM ADDITION

When FP Program No. 1 was first presented, the initial reports  on  its  use
made it necessary to amplify the program.

The first organization reporting compliance had an average income of  �3,500
per week, yet in doing FP Program No. 1, found  that  its  operating  costs,
promotional costs, and monies needed to pay sums due on  writs  against  the
organization amounted  to  �5,800  per  week,  whereupon  it  was  gleefully
decided that the organization would have to make more income. Now  this  was
not the whole intention of Financial Planning Program No. 1.

In presenting Financial Planning Program No. 1, it was considered  that  the
basic costs of the organization would be LESS  than  its  income,  but  that
such basic costs would give the Executive Council an idea of how  much  they
would have to make to barely survive; and every once in a  great  while,  it
would require added effort by the organization to pull its income up to  its
bare existence level.

Therefore, the following has been added to this program:

A. After completing the actions listed above, the average weekly income  for
the past four months is to be calculated.

B. If the basic expenses of the organization are greater  than  the  average
weekly income, the operational costs must be reduced and the  organizational
expenses CUT BACK to a figure below that of the average weekly income.

C. If the organization also has past bills owing,  then  the  organizational
expenses must be CUT BACK even further to permit past bills to be  paid.  At
least 10% to 15% of the average weekly income must be set aside to pay past-
due bills and so  the  cutback  in  expenses  must  take  this  figure  into
account.

Even if an organization is in  the  position  of  having  more  income  than
bills, such basic data as this will help in planning for better expansion.

Therefore, each Executive Council of each organization  should  meet  weekly
to review its basic operational  costs  in  order  to  really  get  in  this
financial planning program.

In using this Financial Planning Program No. 1, it must be  understood  that
the weekly allocation for the org  is  not  _fixed  against  the  FP  No.  1
amount. The idea of fixed allocations was  a  complete  falsehood  found  to
have been pushed by a former Deputy Guardian  for  Finance  Worldwide,  H.G.
Parkhouse, and was simply an attempt to wipe out FB0s whose  job  it  is  to
allocate in relation to the org's production. The  amounts  worked  out  for
each category in FP Program No. 1 are the "buoys and landmarks" for  use  in
"steering" financial planning. Having an FP No. 1 worked out does  not  then
replace the application of finance policy contained in OEC  Vol.  3  and  in
the Finance Series and the  interrelationship  of  the  application  of  the
conditions

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formulas. Another false datum found was  that  once  an  FP  Program  No.  1
amount is worked out  that  it  may  not  be  changed.  This  is  of  course
ridiculous as it is expected that orgs will greatly  expand  and  thus  will
require more space, more course supplies, more promotion, etc., etc.  So  it
is necessary to occasionally review and update an org's FP No. 1.

SUMMARY

By correctly working out the costs to run an  org  in  detail,  a  financial
planning  body  gains  the  ability  to  actually  manage  and  control  its
finances. It puts in prediction and tells one how much income must  be  made
and gives a guideline of the expenses that should be made to  buy  increased
production and viability for the org. An FP No. 1 is something one uses.  It
is not just done for the sake of form or for lack  of  something  better  to
do. It is a valuable tool that determines the "course" of your org.

Good luck!

L. RON HUBBARD

Founder

Written at the request of the

Church of Scientology

International

Adopted as official

Church policy by the

CHURCH OF SCIENTOLOGY

INTERNATIONAL

CSI:LRH:dr.gm

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