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ENGLISH DOCS FOR THIS DATE- Has (FEBC-08) - L710124a
- Has and the Coins of the Org (FEBC-10 Notes) - L710124c
- Has and the Coins of the Org (FEBC-10) - L710124c
- Production and the Resources of the Has (FEBC-09) - L710124b
- Production and the Resources of the Has (FEBC-9 Notes) - L710124b
- VIability and the Role of the Has (FEBC-8 Notes) - L710124a

CONTENTS VIABILITY AND THE ROLE OF THE HAS SIDE A SIDE B
LRH TAPE, FEBC - 8, 71O1C24SO, 24 JAN 71

VIABILITY AND THE ROLE OF THE HAS

SIDE A

1.) I thought this would all go in easy after a bit of hatting on what the Product Officer and Org Officer do. Now the role of the HAS (HCO Area Sec) has to be made clear.

2.) We are dealing with Products 1-4:

1. The Establishment.

2. The Establishment's Product.

3. The Corrected Establishment.

4. The Corrected Product.

3.) If you want to improve the VOLUME of production, you have to organize.

If you want to improve the QUALITY of a product, you have to organize.

If you want to improve the VIABILITY of a product, you have to organize.

4.) If you get bad products - seldom - and at great expense - ORGANIZE!

5.) If you have trouble with VOLUME of product, organize for better delivery of raw materials and do preparation of the product on an assembly line basis.

6.) If you want to improve the QUALITY then go down the the line and find out who hasn't got the tech of their job. Hat them better. Improve duplication.

7.) If you want to improve the VIABILITY you analyze the line of extra costly steps and do-less motion and duplicated functions that aren't necessary. You get a less costly product of the same volume & quality.

8.) The OUTGO-INCOME law applies. Always make more than you spend.

9.) INCOME MUST EXCEED OUTGO. OR EXPENSES MUST BE LESS THAN INCOME. That's the basic law of good finance.

10.) Just knowing that you become a financial genius. And you really become one when you realize the LOSSES are in the money you DIDN'T GET. If your org CAN make 10.000 per week and it only makes 5000 you are LOSING 5000 per week. This is the senior economy. The junior economy is saving money by finding a cheaper price for paperclips and buying in bulk at a discount, etc.

11.) When you see this in an org (the GI dropping), it requires something from the Product Officer. A BIG IDEA. (To promote to get back the stat in normal or above.)

12.) So don't try to "economize" out of an Emergency, That's deadly. Get a BIG IDEA and promote it.

13.) That's what's wrong with Capitalism. They always worry about "profit" instead of just going ahead and making millions. If their stat goes down, They economize to cut expenses so they can still show a profit and they begin SHRINKING.

14.) Now to measure income against outgo, you look at the difference. If INCOME> (greater than) outgo you are SOLVENT. But that's not necessairly VIABLE, if the income is only SLIGHTLY above outgo. 15.) If OUTGO> income you are INSOLVENT. That's when you better have a Big Idea and get in dateline paying of bills.

16.) What does it take to be VIABLE? This is quite a universe to be viable in. If a farmer needs 20 Tons of Wheat to be viable, he's a god damn fool if he doesn't raise 250 Tons!

17.) Your org, if VIABLE, should be able to run for at least 2 YEARS WITHOUT MAKING ANY MORE MONEY or FIRING A SINGLE PERSON!

18.) About then, you MIGHT have obtained "better" SURVIVAL.

19.) So get out of the "hand to mouth" idea of just "paying bills" and "having enough left over". That's NOT survival in this Universe.

20.) If you want to bribe enough senators and buy enough prime ministers and do all the things you want to do, change your way of thinking about finance.

21.) If you raise or lower prices too much you will get an income crash.

22.) If you lower your prices on a gradient, you will NOT survive. Why? Because the currencies of the world are all INFLATING.

23.) As money becomes worthless it buys less, so if you keep prices the SAME (not adjusted for the buying power of the currency) you will go eventually insolvent in an inflation economy.

24.) So you must get a BIG IDEA to re-position or repackage your products to look like a brand new super-product so you can get a higher price for it.

25.) Man is not rational where it comes to pricing. He does not sit around and figure it all out.

26.) Now DON'T raise your prices without giving service to match. If you give 10 times the service you WILL get 10 times as much income, provided you don't tell people you have raised the price.

27.) You don't dare RAISE the price, so you do something else - you reprice and repackage the service.

28.) Now this is an airy-fairy world - you ask people on a survey and they give you nothing but lies.

29.) You have to do a "trial & error" sometimes - you offer something else alongside what you are already delivering and you find what the price is to keep your org viable.

30.) Rolls Royce for instance - you pay for the comfort and durability and no obsolescence because the model doesn't change - but they have no pickup or acceleration. They ask 12.500 pounds for a USED one. (A Buick will run rings around it.)

31.) There is "status" involved in it. So there are all kinds of factors in this subject called PRICING.

32.) If you CAN'T fool with pricing, you CAN fool with VOLUME, but you have to make sure your costing is adequate, so you don't go insolvent.

33.) All these factors determine how BIG of an establishment you are going to maintain.

34.) The Product Officer's CAPABILITY of getting products out economically, in volume & high quality - can determine the potential VIABILITY of the org.

35.) Most businesses and governments follow the rule "to expand and absorb all the income". Except they expand INTERNALLY, ADMINISTRATIVELY with DUPLICATIONS to absorb all the income that is coming in.

36.) AN ORGAIZATION TENDS TO SPEND A BIT MORE THAN IT MAKES. This is sort of a "rule" on this planet, I haven't bothered to find out why, but it's a sort of a "counter-rule" to good sense!

37.) This "rule" is never violated on this planet. So the Org Officer's job IS TO VIOLATE IT.

38.) Now the Product Officer gets the "BIG IDEA". What is that? Well, anyone can get one, the reg, the fileclerk, the guy on the assembly line. It's usually an idea of how to get more CONSUMPTION of your products.

39.) All the Product Officer's Big Ideas MUST apply to Consumption. (There can be other kinds of ideas in an org - like how to do it faster, better, or cheaper - but these are for the O/O.) The P/O ideas are for MORE consumption of products or more services delivered.

40.) The "Big Idea" leads to VOLUME INCREASE which brings VIABILITY.

41.) A "big idea" can also be gotten about a promo piece which gets people to KEEP IT rather than throw it away. That increases IT'S consumption so is a valid step toward more production.

42.) How do we increase the consumption of this product? That is the key question which is answered by the BIG IDEAS.

43.) When an INCREASE of product starts INJURING the VIABILITY of an org, it must be an UNECONOMICAL product, and now we are talking about HCO - or "How much org?" The EXPANSION is caused by increase of CONSUMPTION which is caused by increase of PRODUCTION on an ECONOMICAL basis. So if it's not economical, the Organization (or Establishment) is at fault.

44.) It is NOT the purpose of HCO to put as much organization there as the organization makes. That would be using all your income to increase Establishment (and none for more production) so soon insolvency would rear it's ugly head.

45.) I would say that in the beginning, 50% should go toward Establishment, and as one grows, 33%, and on further volume & expansion, 25%. (The COST of the Establishment is one - quarter of the income of the Establishment is what I mean.)

46.) The COST of the Establishment should NEVER BE 100% or anywhere near it and certainly never 225% like governments do. (They get into hugs debts and put a heavy burden on the taxpayers.)

47.) So HCO's job is to furnish an Establishment, the cost of which is initially no more than 50% of the income.

48.) It's HCO's job to say how much org is put there by the above costing - not Treasury Div.

49.) Treasury's tone scale only runs from "total neglect" to "grumble", so they are NOT the ones to do it! (Joke)

50.) There are two kind of people you DON'T wand anywhere near the top management line or product or Establishment line in an org. And they are ACCOUNTANTS and LAWYERS. NEVER let them establish management policy.

51.) Accountants only deal with money owing & collected, bills owed & paid and putting some reserves aside. FINANCIAL PLANNING TELLS THEM WHAT TO DO. And that is the heads of Divisions, or Management staff.

52.) Each production branch of an org should have the status of a Div. Head in FP. The Tech/Admin ratio at FP should be the same as for the org. This helps to balance the costing for Production and Establishment.

53.) Administration is important but production is VITAL, so the Ad Council or FP body should be balanced so the production areas don't get overwhelmed by Admin and get no money to maintain and increase production.

54.) If you swing the pendulum the OTHER WAY and ONLY let the workers or producers say where the money goes, you get - COMMUNISM, and it doesn't work economically and is unproductive.

55.) But if you let the pendulum swing totally toward the Admin side, you get - CAPITALISM, and it doesn't work either as it produces incredible inflations and debts - although there may be some products lying around from the bankrupt companies.

56.) So there must be a Balance between these two extremes.

57.) Capitalism - extreme - is NOT EVEN NEAR production. It's a system where a guy with bucks (dollars) lives off the interest, loans the rest and forecloses on the borrowers and sells the company for more "bucks".

58.) So if you put an accountant in charge of an org, he will only think about "bucks", not products.

59.) To the degree Treasury doesn't collect the outstanding monies owed, they neglect their duty, and force economy on the org.

60.) Also, however, you can't have a "runaway" org which has no financial "checks and balances" in it. (To keep it from spending more than it makes.)

61.) I can run an org that way because I have a feeling and sense of the volumes of production and income. It may seem uncontrolled at times because I buy things without going thru FP. But the test of the pudding is the stat of Org Reserves. Any org I'm running accumulates reserves at a hell of a rate. They run out of Banks to put them in.

62.) I keep a "computer overview" of the production and cash flows of an org. And I turn down unreal Establishment projects and encourage delivery and production projects for expansion.

SIDE B

63.) I don't consider an org can AFFORD ANYTHING until it has a couple YEARS of reserves built up to cover its ENTIRE ESTABLISHMENT OUTLAY.

64.) Auditing Rooms, Training Space, Staff Service (if not expensive) are projects I consider more important than any others, until the place is really viable and booming.

65.) When I've got that couple of years of reserves, I know I'm working at a bare minimum and I start to get loose with the money. (Not the reserves though, the NEWLY made income.)

66.) I've seen accountants look with horror (but hidden) at some of my projects to increase consumption but in the end we've gotten from it many more thousands than we put in.

67.) "What consumption can be brought about?" is one of the first thoughts of a production man. Otherwise he will run out of space to put his products.

68.) He doesn't care how many products he makes, as long as they don't sit there. They must be consumed or utilized.

69.) EXAMPLE: Tells story of Edsel Ford who produced a BIG new car that DIDN'T sell. He should have read Henry Ford's notes of "America on Wheels" a policy that was for small, cheap, economical transportation. Because, just at that time, America was needing a small car so brought foreign cars and Ford lost a lot of business.

70.) He should have built one, run it on the street and ask people if they wanted it - an elementary survey or pilot project. He missed the main chance by not doing a market survey to find out what the public WOULD buy.

71.) So you should always have a "Special Programs Section" for pilot projects.

72.) This section will pilot these new products to see if people will consume them and what the interest is, etc. Then you can always drop it or change it without costing your org millions.

73.) The "Celebrity Centers", for instance, were being run by Diana and Yvonne in Special Programs under Div 6 Aide (Diana) and it was booming. I suddenly woke up to the fact it was not under the main Management Bureaux Control Line, so we are getting it put there. So if a pilot is SUCCESSFUL you should remember to then organize it into the main org line.

74.) All new types of expansions are PILOTED, otherwise you go broke.

75.) So the "Big Idea", if costly, or not sure about it, should be piloted 1st, then checked up on to see how it did - in Special Programs.

76.) But most "Big Ideas" are banal (simple) - they are just based on how to get more people into the org (in bigger volume).

77.) You probably think of policy and the org being a "rigid" structure. Well, it is, but big ideas AREN'T.

78.) So if the "big idea" works, the ESTABLISHMENT for it must be provided by the HAS. (HCO Area Sec.)

79.) (The reason orgs APPEAR "rigid" is that they were formed by experience with establishing EARLIER "big ideas" - like Scientology & Dianetics training and auditing. And these have proven to be the workable way at this time to keep it expanding. WBR)

80.) The HAS must keep the cost figure of the Establishment BELOW the income figure - no more than 50%.

81.) Ethics is how you hold the EDGES, The Ethics Officer is the "God of the Edges". Ref. Vol O PL on "Direct a channel toward attainment, put something on it, KEEP THE EDGES FIRM, while pushing it along the channel".

82.) People try to use Ethics to "monitor" behaviour. How nutty! Who cares abut behaviour? (It's only intentions and actions that go against the PURPOSE THAT Ethics cares about.)

83.) Interpersonal (social) relations are only "good" in the presence of SUCCESSFUL PRODUCTION. So what you want to do is INCREASE PRODUCTION, (thus MORALE goes up!).

84.) The HAS determines the size, type, and kind of Establishment that can be afforded.

85.) This may also have to do with LOGISTICS (transport, supply, and movement of goods & personnel).

86.) Sometimes the HAS is running BELOW that which can be afforded and that is a false economy - especially if done on HCO itself.

87.) How can HCO be "undermanned"? This is nuts. It assaults my reality. Because HCO RECRUITS and ASSIGNS personnel!

88.) It's like "bragging" about not doing your job and trying to get me to handle it for you! That's HCO's method of "bragging" about not doing their job "We don't have enough people in HCO".

89.) The IRREDUCTIBLE MINIMUM of the HAS's job is a manned and operating HCO! THEN maybe you can get them to put the REST of the org there!

90.) How does HCO put the org there? Well, it's in charge of ORG BOARDS, HATTING, PERSONNEL, COMM, ETHICS - all the things needed - the TERMINALS, COMM LINES, AND FUNCTIONS. (Control of Matter, Energy, Space, Life, Thought).

91.) But if you know that and it still isn't putting the org there, you have missed one point - the ORDERS ISSUANCE SECTION. This is what it uses to build, hold, control, man, and maintain the org. (Control of Time)

92.) This has the Orders of the Day and Time Machine.

93.) If you see no Establishment Orders in the OOD's or in the TM, then you know NOBODY is establishing the place and soon it won't exist.

94.) How MUCH org he can build is determined by financial VIABILITY.

95.) If Dept 1 has a "think" of "we don't wand people", it's worthless.

96.) Did you ever see the cartoon of the little fellow sitting in a box saying "I hate everybody"? Well, you DON'T wand a Dept 1 (Personnel) like that!

97.) A Dept 1 must be willing to take anyone on, although they have to shove half of them out thru Dept 3 (Ethics). (many are called, few are chosen)

98.) The HAS is the BUILDER of the Org (Product 1 - The Establishment).

99.) If it ISN'T built YET, it's Prod 1. If it WAS built & CRUMBLES, it's Prod 3.

100.) You say, "he isn't in control of the actual Building & Space of the Org". Oh - YES HE IS - via his Orders issuance Section and Time Machine.

101.) I could build quite an org from HCO, and have. The only limiting factor is the Viability in regard to the income. (as mentioned before).

102.) If it was brand new and young, I might "fudge" over into 75%,but quickly get it back to 50% and I would be ashamed of myself if after a while it cost any more than 25%. (Of the income).

103.) But even if that happened, as HCO I would look to production divisions and Product Officer and get them hatted so they COULD afford the Establishment.

104.) Do you now see the why behind the low GI divided by staff in orgs? It ISN'T that orgs are overmanned. It's that they are not hatted and there is a lack of Production Orientation.

105.) So when someone says "They don't pay us well." ask - "Who is THEY?" You are looking at "they" when you are looking at the staff of an org.

106.) You can't pay a staff 20 Pounds a week when he only makes 15 Pounds a week for the org!

107.) It even works this way in a moneyless society. If a village doesn't produce MORE than 4 or 5 such villages can eat, it will e a village of starving, poor, famine-faced peasants.

108.) This has been TRUE for 1000's of years, on THIS or ANY OTHER PLANET.

109.) It must cause the suppressives a lot of problems when in America, for instance, a person can now raise enough to feed 47 people. In the past, he could only raise enough to feed 4 or 5.

110.) So the suppressive governments continue to ship the MONEY overseas, not the products. If they do ship products they do it for free! How crazy can you get? (There is no exchange and no viability in it. Only inflation and strain on the producers.)

111.) It's very simple. You can not pay a worker more than he makes.

112.) I wonder, when I see these kids in the US buying things with poppa's money, how long it will be before it all crashes. They are like a novice on a high wire - it's only a matter of time before they fall to the sawdust.

113.) And I have no sympathy for the people who don't produce and keep crying for money. The "poor, underpriviliged" worker now has a paradies in Russia and they can't produce enough shoes to keep the "snowniks" out.

114.) If you are going to go around in a body on this planet, you might as well produce enough to keep it comfortable and well -fed at least!

*** END FEBC 8 ***