The Conditions of Operation are (6) Power, (5) Power Change, (4) Affluence, (3) Normal, (2) Emergency, (1) Danger and (0) Non Existence.

The formula of a Danger Condition is:

1. By-pass (ignore the junior or juniors normally in charge of the activity and handle it personally).

2. Handle the situation and any danger in it.

3. Assign the area where it had to be handled a Danger Condition.

4. Handle the personnel by Ethics Investigation and Comm Ev.

5. Reorganize the activity so that the situation does not repeat.

6. Recommend any firm policy that will hereafter detect and/or prevent the condition from recurring.

The senior executive present acts and acts according to the formula above.

A Danger Condition is normally assigned when:

1. An emergency condition has continued too long.

2. A statistic plunges downward very steeply.

3. A senior executive suddenly finds himself or herself wearing the hat of the activity because it is in trouble.

In Step 4 of the Danger Formula one has to call in Ethics to investigate and must order a hearing and also a Comm Ev as indicated on any person or persons whose negligence or non-compliance brought the situation about.

The AdComm of the Distribution Division never orders or takes effective action to remedy the gross divisional statistic which has been at continuing emergency level for some time.

The Org Exec Sec is being pulled in to handle the situation as the statistic's continuous low will swamp the org eventually and no reasonable advices from the Org Exec Sec have been accepted or used despite the continuing danger to the org from that Division.

The Org Exec Sec therefore acts personally with personal work and (1) By -passes the Secretary, (2) Gets the FSM programme going and ads placed and a Congress scheduled and advertised all on an urgent basis, all on a by-pass of existing channels, (3) Has the Division assigned a Danger Condition, (4) Orders an Ethics investigation of all personnel in the Division and brings any persons whose non-compliances or crimes were responsible before a Committee of Evidence including the Secretary, (5) Appoints personnel and reorganizes the Distribution Division, (6) From the Ethics Investigation and Comm Ev, sifts out any needful policy or change and forwards it to the Office of LRH for consideration for issue.

The Letters in — Letters out statistic takes a very steep dive (perhaps only 1/5th the former number). The HCO Area Sec instantly acts to (1) By-pass all lines, (2) Get mailings out urgently, put expediters on writing letters, get a magazine in the mails, all off her own bat, using anyone to hand, (3) Demand the Dissern and Dist Divs be put in Danger Condition and if refused cables LRH, (4) Order an Executive Ethics investigation of all areas of outflow that would be responsible for org outflow and demands of the HCO Exec Sec a Comm Ev on any personnel found by investigation to have been negligent or non-compliant with policy concerning letters and any kind of mailing out, and failing to get such assignment cables LRH, (5) Demand new personnel on key outflow posts, (6) Recommend any firm policy outgrowing from the investigation and Comm Ev to the Office of LRH.

The Tech Sec suddenly discovers he or she is totally wearing the D of T hat and statistics are falling in that Dept although there is a D of T. The Tech Sec has already attempted to get the D of T's hat on many times. The Tech Sec then: (1) By-passes the D of T, (2) Immediately handles the Academy on a personal full time basis to sort out the students, establish precise schedules, get in proper check sheets and routes slow students to Cramming and nattery ones to Ethics and gets completions going, (3) Gets the Department assigned a Danger Condition, (4) Demands an Ethics investigation and a Comm Ev on personnel on whom non-compliance or crimes are discovered, (5) Gets a new D of T and/or Supervisors, (6) Recommends any firm policy found required in the Ethics Investigation or Comm Ev.

When I find a hat forced upon me despite all efforts of mine to handle it previously and which I have then to handle, I follow the Emergency formula.

When an org is in general danger or a dangerous situation has arisen, I follow the Danger Condition Formula.

By the time anything gets to a point where I have to wear the hat, statistics on it must have been bad for some time and I find by experience that non-compliance will be discovered inevitably, which is why the situation rolled all the way up the lines to me.

As Danger Condition is handled by a by-pass of those who were supposed to handle it, then I also by-pass in assigning a Danger Condition, which is to say, the Condition is assigned not by chain of command but by direct Sec Ed.

Emergencies when they continue are usually caused by crimes or negligence and are always accompanied by non-compliance.

A continued emergency inevitably results in real catastrophe for higher executives. It causes them heavy overwork at the very least. Sometimes a danger condition threatens finally the whole org unless handled.

In the current society the manager or executive has no recourse to law or the culture. Errors can be made or omissions can occur unknown to him, which actually can threaten not only his job but his person. The usual action in our organizations is to let things run as long as they run well. When they begin to show poorer statistics an Emergency Condition is assigned and we usually talk it over with the person who is head of that activity, and try to help. If the condition continues we warn. And if the statistics still go down, we usually transfer and find somebody else. At the point where a senior executive finds he is being made to look bad by continued emergency on a lower echelon, he has no choice but to assign a Danger Condition. The head of the activity is not always removed but certainly must be investigated. If permanent, it takes a Comm Ev to remove or transfer.

It will always be found that non-compliance with policy and orders has for some time existed. It will sometimes be found that lies and false reports also existed. And one always finds negligence and idleness and inattention where statistics continue to go down.

It is very bad to assign a Danger Condition or to By-Pass unless the statistics are continuing to go down or have continued at a dangerous level for some time without real improvement.

A senior executive is soft in the head if he thinks statistics just stay down. They are always held down hard. Emergencies don't just happen because someone is idle. Emergencies are made actively. It takes a lot of counter-effort to jam an org's flows — if you don't believe it then measure it by the effort you exert trying to get things going. What's pushing back so hard? Emergencies are made. They don't just happen. And any hearing in an area where statistics just won't come up will reveal not mere negligence but actual crimes as well.

The senior executive's only protection is to handle the bad situation and follow the Danger Condition formula.

If that seems ruthless, it still is necessary if one is to be at all successful.

Only the Adcouncil, an Executive Secretary or Secretary may assign a Danger Condition. A Director or Officer may request one on their sections or personnel.

If one was incorrectly assigned and statistics were in fact up it will of course come out in the hearing.

[Note: The original mimeo issue of this Policy Letter omitted Emergency from the Conditions of Operation in the first paragraph. Emergency has been included here per amending HCO P/L 8 February 1966, Issue III.]