1.) Ron welcomes the students

2.) 1970 has been as big a breakthrough year for auditing and admin technology - as 1950

3.) I was just breaking through 9 & 10 OT Levels - you never heard of them - but our lower level technology is now putting into view an ideal and a dream which we sometimes see, but doesn't work out consistently - in organization. And we figure that by processing, an individual's efficiency and ability to get his job done, will improve. And we dream of that, but often it lays an egg - we process a guy - he feels better - but he still turns out products that are overt acts. So there is on Flag now a test of technology - (pilot) - that can put that dream in your possession - at a fairly low level of auditor training.

4.) It's hard in orgs to read all the material that comes thru your lines - you have the public banging on your door - you have all the generated "noise" of the disorganized, unrecruited, undermanned, misfiled, organization in your vicinity - also demands coming in.

5.) We found a count of 29 command channels in one org!

6.) Now you are here at Flag, the noise can drop away, and you can see how the material fits together an coordinates action.

7.) Organization will always be in a state of improvement as the organization expands.

8.) Ex: A data bureau that can now give packs of EVALUATED information on orgs in it's area.

9.) The pattern on which we are operation is of importance: (Ref: Flag Ship Order on "Expand and Control")

A. Put a Flag ship here.

B. It puts a Flag Org here.

C. Flag Org puts control points in Continental Areas. D. The Control Points put Orgs there. E. The Orgs put a public there.

10.) This is a sequence of ACTION AND EXPANSION.

11.) From your viewpoint in an org - you put there what there is where you are, and from that FIRM POSITION, you put there an EXTENDED position. This applies also to divisions.

12.) You put there a stable terminal from which you can EXPAND by putting stable terminals there which you can EXPAND TO.

(Note: The most important thing to know about POLICY or ADMIN is: "ALL POLICY IS BASED ON EXPANSION")

13.) This is a SEQUENCE of STABLE TERMINALS AT Flag on a planetary basics.

EX: In an Area on an area basics. In an Org on a divisional basics.

14.) YOU ONLY GET TROUBLE FROM AN AREA WHERE YOU HAVE NOT TAKEN THOSE STEPS.

15.) If you are getting trouble from any area, then you have not taken those steps.

16.) You go back and set up an office - from that you set up an HCO - and the HCO sets up the stable terminals for divisions.

17.) And all the time you have to COPE. It's about 50% COPE and 50% ORGANIZE.

18.) An Org board not only "reads" from left to right - it SLIDES from left to right. (if a person in a div is not capable, the execs in div 7 have to slide down to that div to cope. Some people become "cases" and slide into Qual and on off the org board into being a "public" again past Div 6.)

19.) Ex: Conning the ship while stirring the Crew's soup.

20.) The sequence of putting stable terminals there "is often missed because a person has most of his attention "over there" and misses what is going on "here". " (Ex: Housewife has complaints about neighbors - but don't look at HER house - it's a mess!)

21.) "If we can't make it go right here (at Flag), we have no right telling anyone else to do so."

22.) That's a good maxim to use anywhere.

23.) So if you find yourself sliding down the org board, handle, by all means, but also put in two other steps:

1) Is your house in good order? 2) Are your lines straight"

24.) If you can straighten it out at your end, then you can also organize the other area which you are having so much trouble handling.

25.) So the Steps are:

1) Cope

2) Handle your own area.

3) Organize the Other Area.

26.) There is always a bit of cope, because in any expansion this trick occurs:

1) You think you've got it all Organized.

2) Because it is organized, it Expands.

3) Any expansion will find every weak spot you've got, and there will be a blow up at every one of those weak spots.

4) Then you have to cope some more.

27.) So PLAN for expansion. Predict it. So expansion doesn't blow up weak spots and cause a CONTRACTION.

29.) So you must know how to cope & organize quickly so a weak area CAN take up the slack, and YOU HOLD THAT EXPANSION.

30.) An FEBC student IS being trained to do that:

"To handle blow ups during expansion by cope & organize so that the area will hold the expansion."

31.) There are two horrible errors one can make:

1) To do nothing but organize. 2) To only cope.

32.) The first (organize only) is what happens to artists who are perfectionists. They never release their work, because it's not "perfect".

33.) Since art is "an acceptable communication" they are stuck with no comm and thus no art.

34.) It's a wonderful way to die as an org, by saying: "we are not ready yet for business."

35.) The first organization in LA - First Foundation - under a Rear Admiral - closed for ten days to "see if the legal structure was OK". There was not threat - they just did it - and they never recovered from their indebtedness.

36.) An organization is a running machine - and when you hold it back - it seems to get sand in it's wheels.

37.) It's perfectly alright to have "vacations" but you should be well enough organized to have "coverage" for posts - or 1/2 the org goes while the other 1/2 keeps the org going.

38.) Organization is basically:

FORESIGHT - PREDICTION - PUTTING IN STABLE TERMINALS THAT WILL HANDLE THE FLOWS.

39.) If you study from that point of view you will have a lot of success. "What belongs where?" in other words.

40.) You will be interested to know that in the last few years a lot of propaganda set in about policy. It started to drop out of sight, to vanish, it wasn't given enough IMPORTANCE.

41.) Just as in Tech, people began to say: "That is OLD policy."

42.) The admin tech is not to be learned "rote" but to get the theory background of - "Why is it this way?"

43.) You will then know how to "play the piano". It's not that you are being told how to play the piano by reading & applying policy. No. Your familiarity with policy - and that line of country where it is used - comes as a knowing, instant, DOINGNESS.

44.) You get enough familiarity with policy so you can put an org there, organize it, control it.

45.) If it doesn't work, it's probably off policy. You have to know and apply policy, sure, but it has to be down to INSTINCT level. You can just DO it.

46.) You have to be able to dish it out and organize something at the "drop of a hat".

47.) Don't get into the frame of mind that "this policy should be reissued, it's still valid". No, policy since 1950 is "still valid".

48.) The 7 div org board has a Div 4 for Production. It can be ANY production. On Flag Bureau Org Board it's DATA, ACTION, ETERNAL COMM.

DATA - COLLECTS IT, CONDENSES IT, EVALUATES IT, DISTRIBUTES IT.

ACTION - PLANNING, BRIEFING, FIRING.

EXT. COMM - OUTGOING + INCOMING BODIES, DISPACHES, DATA, TRANSPORT.

END PRODUCT = MANAGEMENT

49.) The other 6 divisions have to be there to back it up.

50.) There is also an HCO Internal in Div 1 for local comm, transport, etc.

51.) One of these FB Org boards belongs in each org's Dept. Of LRH Comm-Dept. 21.

52.) The 7 div Org Board was put in in '65 when St. Hill was in its heyday.

53.) I reissued PrPrs the other day, with only minor changes, and it was acclaimed as a brand new developement - so you see, the Tech can get lost - also policy.

54.) Don't try to just handle outpoints by "cope orders" - also INVESTIGATE and find the why.

55.) Now it you are not on the ball, you will get heavy ethics going. When HCO is not knowing their duties and not on the ball, they will make the product of HCO-"Ethics".

56.) Why? It's easier to HIT than HAT.

57.) Much easier to COMM EV or SHOOT someone than INVESTIGATE, or HAT with checksheets, packs, and study checkouts.

58.) So you get the principle of the "IRREDUCIBLE MINIMUM". "A post tends to reduce to ONLY IT'S VISIBLE POINTS."

59.) The job will drop to it's irreducible minimum, below which it will be noticed. So you look for the OMITTEDS, aside from the VISIBLE MINIMUN.

60.) HCO is liable to reduce to just internal comm or ethics. If that went, somebody would notice it.

61.) So when you try to get the thing running, all the things that are OUT are visible.

62.) So you really have to know your business. Because the "visible" is still there. If you don't know all the preparatory actions that go into making a product you would be baffled. It looks "OK", but don't open a file drawer or a desk - Wow!

63.) It's a tendency - caused by lack of full hats.

(Note: Also is the basic "Case tendency" of a Static - to CONTRACT by CREATING & NOT-ISING THAT WHICH HE CREATED, AND THUS LOSING KRC, MAKING INCOMPLETE CYCLES OF ACTION, HIDING AND DUMPING THINGS INSTEAD OF FREEING & AS-ISING.)

64.) The people don't know what the job is, so they only pick up the visibility. They bring in the mail, but don't log it.

65.) It's from these OMITTEDS, that disasters are made.

66.) Franchises can make a great deal of money, but not much viability. (They don't stand up over a long period of time.)

67.) To be viable and run an ORG - you have to run it at a high (VERY high) volume and at a very excellent product.

68.) If your product is excellent and volume is high, you will be in clover - money & quarters, etc.

69.) But when you get high volume, you have to have also excellent organization.

70.) So we are going into the sophistication of organization so it will EXPAND.

71.) And, if you follow the principles of organization, you will expand on up the line to where it makes "Standard Oil Co." Look like a filling station (tankstelle).

72.) If you don't know the principles, it just won't expand, and it won't get up to the point to where it can pay it's staff members enough.

73.) Our orgs ARE viable, because we haven't lost any except those we closed down ourselves.

74.) I've issued the Personnel Series, the PR Series, Org Series, Data Series, all to help in the bit push for EXPANSION.

75.) There has been an IMPROVEMENT IN THE COMMUNICATION of the Tech of Organization with these.

76.) Org. boards are based on PRODUCTS, the '66 org board is based on products, but it wasn't stated. Learning to communicate it better is often a breakthrough in itself.

77.) I found out that some people couldn't get the idea of what an organization was and what products were - in an engine Room on Flag - and as I worked on it, I came into conflict with THINK.

(Note: Excal Stacks)

78.) Suggestions - orders - comments - policy - all were the same. A=A=A.

79.) So I researched LOGIC - and came up with the fact that man didn't have a tech on it - only some formulas - but any could be thrown aside by using bum data - AHA! So why study formulas when you should study DATA and it's disarrangements. Thus the DATA SERIES.

80.) People can't THINK LOGICALLY. That's your main trouble in orgs.

81.) Thus HATTING & DATA SERIES gives the answer. HAT & EVALUATE.

82.) So it is important how you COMMUNICATE data. 83.) Especially between EXECS & STAFF.

84.) Ex: Leaving the Fathometer on after the time on soundings is long over. It was an order to leave it on - but the time period it referred to is long past.

85.) HCO may be only willing to HAT when it is HIT.

86.) So it can be just a comm breakdown.

87.) Administrative Skill - is a knowledge of Organization so you can get a TEAM action - flows, comm, logs, hats, etc.

88.) A breakdown in comm, especially between two terminals of equal rank, can make an org looks suppressive.

89.) Because there is no flow between them, the team work breaks down. And there is no able senior to handle it. Each terminal can appear to be "right" when investigated. This is a BUGGED area.

90.) Is the hat complete? Is it real? Is the comm bugged?

91.) You are actually working with a communication entity - and that is what makes a TEAM. That is an organization.

92.) If you are not communicating to it, or it goes out of comm, it won't operate as a TEAM.

93.) It isn't a MORALE factor, it's just a comm FACTOR.

94.) An informed group will operate as a team. A group which has comm lines will operate as a team. So your job is to make that happen. Agreement between posts is essential.

95.) That's your administrative SKILL.

96.) In the world - how does it work? It doesn't - why? The money is inflating - means partially political influence - but also that IT'S COSTING MORE TO PRODUCE, OR VOLUME OF PRODUCTION IS DECREASING. This civilization is not viable.

97.) Production is not being done efficiently - that's FIRST. Also it's being politically interferred with - and other things you can find by analysis.

98.) Just compare what your Dollar buys today with say - 10 years ago - or 50 years ago. See?

99.) The world is carried on the backs of a few desperate men.

100.) And a poorly administrated area is carried on the backs of it's poor desperate executives.

101.) If you really KNOW YOUR BUSINESS, you can DEBUG IT, get it to FLOW, get it to EXPAND.

102.) If you REALLY KNOW YOUR BUSINESS you will get fantastic amounts of cooperation from your staff.

103.) It has nothing to do with "PERSONALITY". It has to do with "KNOW HOW".

104.) The guy who KNOWS is respected. The guy who DOESN'T KNOW can use all the PR in the world and he'll still fall on his face.

105.) The ABILITY TO ASSIMILATE information is one of the fines skills an executive has.

106.) Now the enemy is about ready to give up the ghost - the press and so on are getting desperate or coming into line.

107.) So, it's time for the BIG PUSH. Time to groove in the heads of organizations and their principal executives, so that they can put an organization there that really runs. The "Kick off" time is NOW. Thank you.