Tag Archives: admin scale

Business Planning: Always Consider Resources First – Business Tip from Arte Maren

PLANNING always considers resources first.

business-planning-maxims-arte-maren-the-natural-laws-of-management-admin-scaleEvery now and then I’m challenged about how planning things so “specifically” seems to take the “fun” out of life. But simply because one plans, does not mean there will be no further surprises. To think so would be folly and an underestimation of the unpredictable adventures on planet Earth. If I am going to Hawaii, I don’t want my luggage sent to Japan. What I can control, I wish to control. Life still offers up lots of surprises to keep it interesting.


There are some basic principles or maxims(1) concerning PROGRAMMING.

“These are some of the principles about programs… If you don’t know these facts of life, here they are:

“MAXIM ONE: Any idea no matter if badly executed is better than no idea at all.

“MAXIM TWO: A program to be effective must be executed.

“MAXIM THREE: A program put into action requires guidance.

“MAXIM FOUR: A program running without guidance will fail and is better left undone. If you haven’t got the time to guide it, don’t do it; put more steam behind existing programs because it will flop.

“MAXIM FIVE: Any program requires some finance. Get the finance into sight before you start  to fire, or have a solid guarantee that the program will produce finance before you execute it.

“MAXIM SIX: A program requires attention from somebody. An untended program that is everybody’s child will become a juvenile delinquent.

“MAXIM SEVEN: The best program is the one that will reach the greatest number and will do the greatest good on the greatest number. . . .

“MAXIM EIGHT: Programs must support themselves financially.

“MAXIM NINE: Programs must ACCUMULATE interest and bring  in other  assistance by the virtue  of the program interest alone or they will never grow.

“MAXIM TEN: A program is a bad program if it detracts  from programs which are already  proving successful or distracts staff people or associates from work they are already  doing that is adding up to successful execution of other programs.”2

It is important to review your plans against these points.


While you want to provide for a challenge in your planning, the steps shouldn’t be overwhelming. They shouldn’t be underwhelming either. A program with forty-three steps may just be too tedious, whereas one with three steps is too brief. And remember that gradients are the key.

“You can even raise an organization 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 organization’s road to causativeness.”3

Review your company activity (or aspects of your life) and look at your existing scene/ideal scene section to determine the overall objective that you are trying to achieve in your position with your company or in life. That is the PLAN MAJOR TARGET.

Give it a PLAN NAME and then list out the broad PLAN steps that will be necessary to achieve it. The completed date is marked as a blank on the right side. List who is assigned the target for execution.

-Arte Maren
International Speaker, Writer and Business Consultant
Above excerpt from the book:  The Natural Laws of Management: The Admin Scale


1 Maxim: “statement of a general truth.” The World Book Dictionary.
2, 3  L. Ron Hubbard, “Programming,” Policy Letter of 23 October 1969, Organization Executive Course.

Quoted excerpts above by L. Ron Hubbard. Grateful acknowledgment is made to L..Ron Hubbard Library for permission to reproduce selections from the copyrighted works of L. Ron Hubbard. Copyright © 2014 Arte Maren, Inc. All Rights Reserved


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The 3 Miracles of Business – In 1 Minute! by Arte Maren

Following are the three Miracles of Business…all in one minute!

I invite your thoughts and comments!

-Arte Maren
International Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


Do you have your admin scale? www.adminscale.net

CERTAINTY Re: Building a Company or Practice

The key is to truly know your material and then consistently apply this knowledge. The result is it builds certainty in what you are doing or trying to achieve.

-Arte Maren
Business Consultant, Lecturer
Author of The Natural Laws of Management: The Admin Scale


Do you have your admin scale? www.adminscale.net


“Policy” by Arte Maren, Author and Business Consultant

business-policy-arte-maren-natural-laws-of-management-admin-scaleThe guiding principles of an operation are assigned the status of policy. If policy is lacking, then you can see that a key element of your Admin Scale is missing.

Policy has to be issued, it has to be clear and it has to be enforced. If policy is not in writing, it needs to be put in writing, and it needs to be made known to all concerned.

There are additional key definitions of policy, which distinguish it from all other company guidelines.

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 is the law on which orders are authorized and originated.

All policies actually derive in greater or lesser degree from group experience which more or less adds up to group agreement and policies which tend to stay along are actually formed with group agreement and are therefore not outside the perimeter of the group.

Policy is the broad general outline originated by top management. Orders are the instructions issued by the next lower level of management to get things done that result in products.implementation-of-policy-arte-maren-natural-laws-of-management-admin-scale

Policy is a growing thing, based on “what has worked.” What works well today becomes tomorrow’s policy.

The sense in which we use policy is the rules and administrative formulas by which we agree on action and conduct our affairs.

A method of bringing about agreement and communication along certain matters which lead to a higher level of survival. They lead to a higher level of survival if they are good policies, they lead to a lower level of survival if they are poor policies and they lead to complete disaster if they are bad policies.

Policy came from years and years of experience. It’s the know-how of handling organizations and groups.3


-Arte Maren

Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale
and his NEW 4-CD The Natural Laws of Management Audiobook Seminar


3 "Policy" (definition), Hubbard, Modern Management Technology Defined.

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“Creating Your Own Luck” by Arte Maren


Lucky people are people who are really interested in life. They’re really interested in their consumers and they start getting lucky. They’re in the right place at the right time. Why? They were interested. Opportunities for advancement, for expansion, for wealth, for love, are around us all the time. You don’t have to go looking. All you have to do is stop being so interesting and get interested and you’ll see them.

Opportunity is always knocking—you just have to be interested enough to listen and have the courage to open the door!


-Arte Maren

Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale
and his NEW 4-CD The Natural Laws of Management Audiobook Seminar

“Creating Your Own Luck” – Excerpt from Chapter 12 of The Natural Laws of Management: The Admin Scale


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Young Entrepreneur at Business Management Seminar in Medellín, Columbia

After his seminar with an audience in Medellín, Colombia, Arte Maren is greeted by a young future entrepreneur.





























-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Planning” – An Article by Business Consultant, Arte Maren

business-plan-arte-maren-natural-laws-of-management-admin-scaleHow quickly you are going to get from your existing scene to your ideal scene will depend upon this section of the Admin Scale covering PLANS, PROGRAMS, PROJECTS, and ORDERS. All of these points fall under the heading of PLANNING.

Mr. Hubbard defines plans as:

The general bright idea one has to get things up to the ideal scene or improve even that.1

He further defines the other key points of planning as:

The program is the big solution to a problem—the big problem is solved by a big solution called a program. The little problems inside that big solution are solved by projects. And inside the projects the littler problems are solved by orders.2

Raising statistics and producing more valuable final products is done by planning, and planning takes confront3, a prerequisite to successful planning (and doing!).


Confronting this subject of planning or programming is really a subject of gradients.4 Just about anything can be confronted if it is broken down into gradients.

The source of most failures…Either too shallow or too steep [a gradient].5business-gradients-planning-arte-maren-natural-laws-of-management-admin-scale

An order such as “You must renovate a hotel this week. Please have it done by next Wednesday” would be overwhelming. It is also probably not going to get done. If you run your operation on orders alone. Without a plan, program or project, you will not have a very smooth and expanding operation. Lots of those “undone orders” probably didn’t get done because they were not confrontable as one single item or command.

An order might be in the category of “Pick up that chair.” “Shut off the light.” “Go downstairs.” These are orders.

And where do orders come from? Orders are derived from projects. Not just from some arbitrary idea.

Projects come out of programs. A program is broader than a project. Where did the program come from? It came from a plan. Thus, these are gradient steps to accomplish the ideal scene.

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


1 “Plan” (definition), Hubbard, Modern Management Technology Defined,
from Policy Letter of 29 Feb. 1972, Issue II, Management Series.

2 “Project” (definition), Hubbard, Modern Management Technology Defined.

3 Confront: “direct observation.” Hubbard, Modern Management Technology Defined.

4 Gradient Scale: “[A] gradual increasing degree of something.
A non-gradient scale would be telling someone to enter a skyscraper
by a 32nd-story window.” Hubbard, Modern Management Technology Defined

5 Hubbard, “Gradients and ARC,” 1 September 1966, Saint Hill Special
Briefing Course Lecture 442 (Level L).


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“CONTINUED EXPANSION” – An Article by Business Consultant, Arte Maren

teamwork-excited-image_It always seemed odd to me that when things were not going well or if the stats were going down, everyone wanted to know why; management demanded a reason. But if the stats improved, then what? Nary a word. “Nope, don’t want to know. Leave it alone.” Now, that really is management by karma! It is even more important to know why something is working well, so that it can be reinforced. What was the cause and what can we do to keep it going?


By reinforcing what caused the Affluence each time, you keep boosting it up to a new higher point until eventually it peaks at what is truly a stellar range. Now you have a new scene.7

A VFP (Valuable Final Product) is defined as: 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 (goodwill).6upward-statistic-image

In summary, he also lists the causes of organizational failure and the relationship of these causes to VFPs:

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.

(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…

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.8

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


7 Hubbard, “Vital Data: Power and Affluence Conditions”
Policy Letter of 27 August 1982, Organization Executive Course.
8 Hubbard, “Valuable Final Products” 
Policy Letter of 25 March 1971, Organization
9 Hubbard, “Reality of Product” 
Policy Letter of 1 December 1970, Organization Executive Course.

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“Back to Basics and Product Promotion” by Arte Maren


Product Promotion

From my observation, a well-named product tends to promote itself.

An example of its value might be demonstrated at an actor’s convention. There are lots of photographers there who are promoting themselves.

“What do you do, Bill?”

“Oh, I’m a photographer.”

“Oh, let me have your card. I need pictures all the time.”

“Oh, fine.”

But it is likely that he will never call. There are hundreds of photographers available. But now the actor meets our photographer who’s just done an Admin Scale on his photographic services.

“What do you do, Bill?”

“Oh, I’m an image consultant.”


“An image consultant. I find out what image, what communication you want to portray in a photograph and I capture that on film.”

“When can we start?” is the actor’s immediate response. Why? Because that really communicates as something valuable!

“Oh, it’s very expensive.” he could add. When it’s perceived as valuable enough, the actor will not care! It’s never the money. Repeat, it’s never the money, as any seasoned veteran salesperson will agree. If a potential buyer or client starts talking about or getting concerned about money, then you probably haven’t communicated the value of the product or service. The value is simply not real enough.

Now our photographer can even do a consultation before the photography session, for the same or extra fee, to isolate what the “message” is and be sure he can get his product and a satisfied customer.

Before our photographer’s Admin Scale training, his clients used to come in and he’d say,

“Okay. What kind of photograph would you like?”


“Well, I want a picture…you know. I want to look strong.”

“Oh, OK. Have a seat there. I’ll get some barbells…”

He takes the picture. The client comes back for his photos.

“Here are your pictures.”

“Uh. I don’t know. That’s not me. I don’t know.”

“Yeah, but you said strong. Look, that’s strong. See the barbells?

“That’s not what I meant by strong.”

“Oh. What did you mean?”

“I don’t know. Strong.”

What occurred was a breakdown of communication. And that breakdown was caused by a breakdown of sufficient early interest on the part of the photographer. The customer said “Strong.” What did he mean exactly?

If you don’t fully understand something, you’ve got to ask. If you’re really interested, you will ask. You don’t know what he means by “strong,” so you automatically ask. (Unless, of course, you don’t want to appear “stupid.” Somebody is talking about something, and you don’t quite get it, but you don’t want to appear stupid and don’t ask them. At that point, you are stupid. So try to make it a policy to query what you don’t understand. It keeps you smart.)

“What do you mean by strong?” “Well, you know…strong,” is the answer.

So he puts a bunch of “strong” type pictures up on the wall. “This is the ‘strong’ picture set. I’d like you to take a look at this and point out the picture that you like best. Which seems to be the kind of communication or image that you want to portray?”

One cares. One asks because one wants to know.


“All right, well, I like #3, that picture of strength.” “Oh, all right. Tell me about it. What do you like about this?” “Well, you know, you see how the head is tilted there to one side? It’s strength, but it’s a quiet strength. Yeah. It’s a quiet strength. That’s what I want.”

He’s got it. He’s discovered his image. Now it’s simple. No problem. The photographer knows exactly how to set this picture up. He’s got some certainty. He has communicated and fully understands what the client wants. No problem. Success is guaranteed. And you don’t have to hope; you are certain.

Using this procedure, we organize and promote better. The customer walks in and is handed a sheet to fill out which gives the photographer an idea of what this prospect is really after. Then the photographer shows him five different “messages” in photographs, or maybe ten other actors and actresses in poses that are communicating something. “Which one most closely approximates what you are trying to say?” he would ask, and then—having isolated exactly what was needed and wanted—he would produce it.

The event is the photo session. But all the preparation is done prior to the shoot. By the time he is at work in the studio, he knows exactly what the client wants. He knows how he is going to set it up and how he will shoot it, which is the technical expertise.

The taking of the photograph was the event—but look at the preparation that went into creating that event! That’s professionalism.

Back to Basics

If you are having trouble working out naming your PRODUCT, one good method is to cut out all the verbiage, and go strictly down to “What is it that I do?” Then look at the result of that “doingness,” and build on that.

What is it you deliver?

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Utilization of Resources for Business Success” by Arte Maren


Resources have a lot to do with how soon you are going to achieve your goals and with how much effort.

What are your resources? You’ve got a certain level of knowledge, X amount of money in the bank, Y number of employees, Z amount of time, etc. You might have a fantastic project lined up but the staff you have right now are too tied up and are not going to get it done. So what is the solution? You could drop the project until later or hire other people. All these points go into planning.

Before one begins the PLANNING and TARGETING, the resources one has must be considered.

How quickly you move from your existing scene to your IDEAL SCENE will depend upon the bright utilization of resources.

“Handling must be WITHIN THE CAPABILITIES of those who will do the actions.


“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.”1


If you wanted to go to China, and had plenty of money, no problem. Just buy the ticket. But suppose one did not have the money, suppose one had little money at all and still wanted to go to China? One would have to get pretty bright! “Who do I know? Does anyone that I know also know some people from China, or who know people in China? I’ll make a list of all of the possible resources I have that might help me get to China. And on the list of resources is my ability to speak English! Also on the list was my close association with the owner of the Chinese laundry down the block. What if I speak to him about teaching the rest of his family English? They are still in China and he wants to bring them over next year. In exchange, he will provide a ticket and my room and board in China for the next year.” And what do you know? Goodbye Toledo, hello Hong Kong!

Planning always considers resources first.

 Every now and then I’m challenged about how planning things so “specifically” seems to take the “fun” out of life. But simply because one plans, does not mean there will be no further surprises. To think so would be folly and an underestimation of the unpredictable adventures on planet Earth. If I am going to Hawaii, I don’t want my luggage sent to Japan. What I can control, I wish to control. Life still offers up lots of surprises to keep it interesting.


-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale

1 Hubbard, “Proper Format and Correct Action” 
Policy Letter of 17 February 1972, Management Series

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“Stat Justification” from Arte Maren’s 8-Part Video Series “Management by Statistics” (Part 8 of 8)

Stat Justification” is the final segment from the 8-part video series “Management by Statistics” by veteran business management consultant Arte Maren.

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Statistics – A Breakthrough Technology” with Arte Maren (Management by Statistics, Part 7 of 8)

Veteran consultant Arte Maren discusses the use of statistics and graphs and how this is a breakthrough technology that will help you grow your business or organization. What are the “Condition Formulas”?

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Statistics – Managing by Statistics” with Arte Maren (Management by Statistics, Part 5 of 8)

Veteran consultant Arte Maren discusses where your biggest income losses come from and how often you should track statistics to grow your business or organization.

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Statistics – The Staff Meeting” with Arte Maren (Management by Statistics, Part 4 of 8)

Part 4 in the “Management by Statistics” video series for business owners and executives by veteran business consultant Arte Maren.

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Statistics – Weekly Review of Production” with Arte Maren (Management by Statistics, Part 3 of 8)


Part 3 in the “Management by Statistics” video series for business owners and executives by veteran business consultant Arte Maren.


-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Statistics – When Do You End Your Week?” with Arte Maren (Management by Statistics, Part 2 of 8)

Part 2 in the “Management by Statistics” video series for business owners and executives by veteran business consultant Arte Maren.



-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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“Statistics – An Introduction” with Arte Maren (Management by Statistics, Part 1 of 8)

Veteran Business Consultant Arte Maren presents his introduction to “Management by Statistics” for business owners and executives.


-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale


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Purpose and Ideal Scene (excerpt from Chapter 23)


We often see another form of incorrect comparison demonstrated by people who are very able. They sometimes measure their own production and progress only by comparison to others in their organization or field rather than against their own potential production.


“The pressure or demand for greater production is not self-generated as it should be. The solution is to talk with him about it and set targets that are a game (challenge) for him.”

This is sometimes seen in the form of an employee who needs to be told constantly to get his or her production up—and does so every time. After a while, one gets the idea that this person can push that stat up almost at will—and if you get into communication with him, you will soon find out that this is actually the case. He’s monitoring his production by what others, with perhaps less ability, are producing. The pressure or demand for greater production is not self-generated as it should be, but must come from his seniors. The solution, in such a case, is to get into communication with him about it and to set targets that are a game (challenge) for him—without consideration of anyone else’s level of production. You may be surprised when the production of others around him increases.

Practice envisioning ideal scenes for any activity. The next time you go into to a restaurant, take a look and conceptualize what the Ideal Scene for that restaurant would be: “waiters busily working, clean plates, fast service, etc.” And when you walk in, you will probably observe things that you have never seen before.

The idea of setting an ideal scene and comparing the existing scene against it is an observation drill, and a very important one.

It is an ability that one develops by practice, by experience, and by looking at an area and setting the ideal scene.

Ideally a Valuable Product

The ideal scene should be directly related to the product, and it should be a valuable product as well. You must be dealing with an ethical and effective product, which is exchangeable for a fair price.

Working out the Ideal Scene in harmony with the valuable final product can cause tremendous changes in one’s viewpoint and how one goes about living.

Creating the Ideal Scene on any aspect of life is a vital action and will lead to greater productivity and increased morale.

Indeed, there are areas of your business, if not areas of your life, that could be improved simply by working out what the ideal is for that scene and comparing it to the existing scene. If your special relationship or marriage, for instance, is not going too well, work out what the ideal scene should be, match it against the existing scene and, measuring the two, see what has to be done to bring the existing closer to the ideal. Ideal scenes are a valuable tool to be used for expansion.


-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of
The Natural Laws of Management: The Admin Scale


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Arte Maren Interviews Inc. 500 Award Winner Joy Gendusa, CEO of PostcardMania

Arte Maren, author, business consultant and host of BusinessWise.TV, interviews Inc. 500 Award Winner Joy Gendusa, CEO of PostcardMania:



Arte Maren
Professional Speaker, Writer and Business Consultant
Author of  The Natural Laws of Management: The Admin Scale


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Products & Service: Short-Changing Yourself (Chapter 7, Superlative Service)

the-market-has-been-in-the-dumps-for-months-what-s1I recall an instance where someone was delivering a product—a great product—and selling it for $250.00. He was not doing well. An analysis was done, and he was told to double his price. Now this person had serious misgivings about this advice, as he felt that he was not doing well even at the lower pricing, so why would he raise his price? “I am starving with the pricing I now have and not getting lots of buyers. I can’t possibly double it,” he said. And the answer given was, “You are actually creating an imbalanced exchange. You are under-priced.” Remember, truth “is what is.”6  The product was not worth $250.00; it was worth $500.00. So people were not buying it because they felt (innately) it was worth more.

The lower price made them suspicious. They knew it was a great product, so why was he selling it for $250.00?

What did he do? He priced it in accordance to its successful-businessman-natural-laws-of-management-arte-maren-admin-scaletrue value in the marketplace and he had more buyers than he could handle. Now everybody wanted it. It “felt right” to them.

The solution is not, then—if you are having any problem at all— simply to double your price, but in some specific cases, it might well be good to examine this factor. Beware of this kind of exchange imbalance, shortchanging yourself!

-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of  The Natural Laws of Management: The Admin Scale

6  Hubbard, Technical Dictionary.


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Organization and Attitude – Excerpt from “The Natural Laws of Management”


“If you really feel that you have something of value, that’s an attitude that others can perceive.”


There are several major factors to understand as regards expansion: the amount of activity we generate outside of a business which drives in the traffic to the business; the capacity to efficiently handle what’s driven in; and lastly, the quality of the product or service that is delivered to the consumer.

All too often, what is driven in simply walks out the back door, meaning that the capacity of the business was not up to handling the traffic. And if so, it must be handled.

Anything which stops or delays the flows of a business or delays or puts a customer or product on WAIT is an enemy of that business.

Good management carefully isolates all stops on its flow lines and eradicates them to increase speed of flows.1

A full understanding of VFPs [Valuable Final Products] by all those on the “front lines” dealing directly with the buying public is vital. Customers, clients and patients are aware of when they are actually getting a VFP, whether they can verbalize the VFP or not. A failure to deliver impacts the customer on a personal level also, a point to consider carefully.

A staff idling in Reception, offhand handling of callers, wrong address or names misspelled drive off customers. Aside from simply blocking sign ups,2 these points also REDUCE CUSTOMER STATUS.3

The ability to reach out into the environment and make something occur is vital to expansion. Sometimes, however, to get a company solvent, it’s not only necessary to get involved in its marketing, it’s necessary to fix the capacity of the business to handle substantial traffic—at which point, magically, it starts getting traffic!

As mentioned earlier, in order to organize anything, it is only necessary to look at the end result and then work backwards from that.  At the very start, we can begin with attitude.

Some business owners think that they are lucky when a customer walks in the door. If you don’t feel that your customer is lucky, you had better take another look at your operation. Knowing that you are delivering a product that is extremely valuable exudes a certainty. When that person walks into your business, it is that person who is fortunate that you are there to provide a service he or she needs.

One of the best marketing campaigns I’ve ever run was based on this viewpoint. In the early 1970’s, I got a call from the Narconon [drug rehabilitation program] representative in the state of Washington, and he said, “The state needs drug programs and we might be able to get in if we go there and…” I said, “Call the State Director of Prisons and let him know that I will fly to Washington and do a tour of all their installations. If we think that they deserve our program and their facilities are conducive to what we’re doing, we will bring it to them.” The public relations rep said, “You’ve got to be joking. I’m not calling them and telling them that.” I convinced him to do it and he did. He called back amazed, saying that they gave me an appointment. We went in and I conducted a check of their facilities.

The Seattle newspaper ran an article the next day. It said, “State May Get Drug Program.” If you really feel that you have something of value, that’s an attitude that others can perceive. I truly believed that we produced something valuable—that they were fortunate, not I.


-Arte Maren
Professional Speaker, Writer and Business Consultant
Author of  The Natural Laws of Management: The Admin Scale


1 Hubbard, “Speed of Service,” Policy Letter of 3 January 1968, Organization Executive Course.
2 Sign Up: “Enlist in an organization; also, register or subscribe to something.” Answers.com.
3 Hubbard, “The Org Image,” Policy Letter of 17 June 1969, Organization Executive Course.


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Four Conditions of Exchange: The Quality You Must Deliver

It is not simply amount of production alone but, additionally, the quality you must deliver to ensure exchange. L. Ron Hubbard discovered 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.

The first of these conditions is really a criminal condition. Rip-off is an attempt to get something and give nothing. And it’s the road to ruin.

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.1

A customer orders five blue pencils to arrive on Wednesday and, two weeks later, receives three orange pencils with a note: “The other two will be coming but they will be green. I hope you don’t mind.” This incomplete exchange causes a backlog and eventual insolvency. And if the pending insolvency is not handled, it can move back down to condition number one: rip-off or fraud.

3. The third condition is the exchange known, legally and in business practice, as “fair 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.”2

A customer orders three blue pencils to arrive on Wednesday and he gets three blue pencils on Wednesday. This is legal and fair exchange. It’s also what is accepted as “normal.” The generally accepted belief is that “if you just give people what they want, then everything will be fine.” But, in fact, giving people only what they want does not necessarily bring about expansion. At best, it just keeps your head above water. It does not guarantee survival. The real answer to guarantee success in any endeavor is delivering in abundance. “Normal” exchange does not always bring about success.

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.3

Thus we can see that the fourth condition is the only real guarantee of success.

The fourth condition is the preferred one. It is the one I try to operate on and have attempted to for ages.

The Four Conditions of Exchange

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.4

Condition four is the only one that guarantees survival in abundance and that is achieved by delivering more than is expected. That doesn’t mean if somebody ordered ten pencils you send them twenty. That’s a good way to go out of business. It does mean that if they ordered ten pencils to be delivered on Wednesday, you send them ten pencils, perhaps on Tuesday, with a few erasers and a little note that says, “Thank you very much for the order.”

It is the pluses that guarantee greater survival. And the pluses don’t have to cost more time or money. It’s a question of care, not cash.

Additionally, how quickly success comes about does not and must not rest on the shoulders of the company executives alone.

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 organization 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 followed—the real manifestation only occurs from pressure by individual staff members or others within the group.5

We can easily see that executive leadership is vital but individual responsibility is also a key factor. It is the group that sets the standard and which of the four conditions is applied or implemented.

It is up to the individual staff member in a group what the group income is and what their own staff pay is. The organization cannot earn more and the individual staff member cannot be paid more than will be established by which principle above they elect to follow.6

If you look at every successful business, giving people more than they expect—especially in the area of service—is, in fact, normal. That’s the way that it should be. That’s the concept that you want to bring into your business or indeed into your life.

You must continuously do those little extras that helped to build up your business.


Arte Maren
Professional Speaker, Writer, Business Consultant
Author of  The Natural Laws of Management: The Admin Scale


1,2,3,4,5,6 Hubbard, “Exchange, Org Income and Staff Pay.” Policy Letter of 10 September 1982, Organization Executive Course.


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What is the Formula for Expansion in Business and in Life?

So expansion should be your viewpoint in running your business and your life. And there is a vital formula:

[E]xpansion formula:


Thus we can see that expansion does have some definite rules. Expansion does not simply arrive on its own. This is further highlighted by specific actions for expansion:




It takes hard work and it takes your intention.6 You make it happen.

You can target statistics being up, which helps create more motivation and willingness. But it would be an error to simply tell people what their targets are, to tell people what their quotas are, without gaining any real agreement.



4   Hubbard, “The Structure Of Organization, What Is Policy?” Policy Letter of 13
March 1965, Organization Executive Course.

5  See note #4 above.

6 Intention: “It’s an idea that one is going to accomplish something. It’s intentional, which means he meant to do it, he means to do it.” Hubbard, Technical Dictionary.

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Management by Statistics – Chapter 19 of The Natural Laws of Management: The Admin Scale

statistic-graph-measure-production-arte-maren-natural-laws-of-management-admin-scaleBeing unreasonable and having no options increases production. And production is regulated and monitored by statistics, the next level up on the Admin Scale.

Stats are best represented on graphs. A graph helps keep you unreasonable. The graph does not tell you that “it snowed” and therefore “things were difficult that day”. It doesn’t give you any “reasons”. It simply shows production or non-production. Products are a physical reality, and if you wish to manage with reality, you must have real information. Management survives to the degree that it has sufficient data to determine what is working so as to reinforce it–and what is not functioning well, so as to change that action or system. And the first type of information needed is not lengthy reports, but correct, condensed data: a stat.

A stat is:

The only sound measure of any production or any job or any activity.1


1 “Statistic” (definition), Hubbard, Modern Management Technology Defined


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Exchange: The Outflow and Inflow of your Business – Excerpt from Chapter 5

The law of exchange can be an unnerving, difficult thing to work with unless one understands it and uses it to his advantage. The subject of exchange then becomes a simple and powerful tool. It’s all about outflows and inflows. You produce (outflow) your product or service for others who want it, so that they will give you what you want (the inflow). Most “problems” are really problems of exchange.


People, all too often, talk about the “inflow” problem that they have: i.e., not enough money, customers, sales, etc. They keep “solving” their inflow problem, but it never solves. Why? It very obviously was never an inflow problem; it was a problem of outflow. You can’t solve the wrong problem. Outflow governs inflow.

Outflow, per L. Ron Hubbard,

…is holier, more moral, more remunerative and more effective than inflow.1

People stuck on inflow are trying to directly control the inflow. And you can’t control the inflow directly—unless you are a criminal. You cannot directly control the exchange unless you are a thief. Thieves don’t run the cycle from the creation of product to generating demand for the product to delivery so that they can get the exchange. They try to jump over the “invisible wall” between product and exchange. They take the exchange. They try to control the exchange directly, rather than control the exchange through pro- duction, through the interchange and exchange of services or articles.

You cannot directly control the inflow. If you want to see some really tired people, talk to those who try to “handle” the inflow side without the necessary outflow. Show me someone with attention stuck on inflow alone and I’ll show you a tired person, losing in the game of life.

The good news is that you can control your production directly (outflow). If you are making ten clocks, you can make twenty clocks. You can get more people to make clocks. You can keep the plant open longer hours and raise the quality. You can do more promotion and do it better.

The simplest and easiest way to get your exchange is to create such a heavy outflow that it simply creates or forces in the exchange. It happens as a natural phenomenon!


1 Hubbard, “Outflow, Policy Letter of 6 July 1959, Organization Executive Course

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“Problems”, Excerpt from Chapter 18 (The Natural Laws of Management)

Individuals producing a product often will encounter barriers and problems. Problems are not something to be avoided; they are really something to be welcomed. If we are going to play a game, which we’re certainly doing in business and life, we’re trying to move from A to B. Obviously, as a game, it’s going to have opposition. What we might call problems are really challenges or opportunities. Why get uptight about it? If you are going to play a game, there is going to be opposition. Can you imagine if you are playing football, somebody tackles you and you say, “Get off of me! What are you doing?”


– Solving problems entails locating the causes. Locating the causes entails observation.

You can be “reasonable” about your problems too. If you’ve had a difficulty or a problem for quite some time, and it’s not solving, I can promise you that it’s not the problem. You cannot solve the wrong problem. I have never found anybody who didn’t have terrific solutions. It’s not solutions you need; it’s the perception necessary to locate the actual problem so that you are not dealing only with symptoms. In fact, the most sane reaction is to “own the problems” rather than being detached from them as a spectator (someone who is never really involved, so they can’t get close enough to inspect the real reason).

It’s been said that if we all took our problems, put them all on the table, and left the room—and you could come back and choose any set of problems you wanted—which ones do you think you’d choose? Your own! That’s right. You’re used to them. They’re yours.

Some people are in love with their problems! Did you ever have somebody tell you a very complex problem, this complex thing that had absolutely “no solution”? Perhaps you listened and you listened and at the end you said, “Oh, I’ll tell you what you can do about that. That’s simple. Just do this.” What do they say? “Naw, naw. That won’t work. I tried that.” “No, it will work,” you say, “It’ll work. It’s easy. You can’t see it ‘cause you’re in it. I’m telling you…” And if you persist they get uptight and say, “You don’t understand my problem.” (This thing that they’ve worked so hard to put together that had no solution!)

And what if you had no problems at all? None! Everything that you attempted to do, you did. You had no opposition. You’d probably invent problems just to have some kind of game! Show me a person who has a lot of “unsolvable” problems and I’ll show you someone who doesn’t have enough problems. They have such a scarcity of problems that they are making a meal out of the ones that they have for fear that if they lost this problem they wouldn’t have any more.

A person begins to suffer from problems when he does
not have enough of them. There is the old saw (maxim)
that if you want a thing done give it to a busy man to do.
Similarly, if you want a happy associate make sure that
he is a man who can have lots of problems.1

The next time somebody gives you all their problems, don’t give them an easy solution because that takes the game away. What you’ve got to do is when they’ve finished this long dissertation, this complex problem, you say, “That is the worst thing I’ve ever heard. How are you possibly going to handle that?” They’ll probably say, “No, wait a minute. That’s not so difficult. I can handle that.”

Solving problems entails locating the causes. Locating the causes entails observation.


1 Hubbard, “The Reason Why,” Bulletin No. 84, 15 May 1956.

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It’s All About the Team


Excerpt from Chapter 16, WANTING THE PRODUCT:

Of course, demanding production and income presupposes that you have a team, all of whom want it to grow. And “want” is an active word meaning not just being willing for it to grow, but wanting it to grow. Every now and then, in an interview with an employee, he will indicate that if the business got busy, that would be “all right” with him. He could “handle that.”

But that is a far cry from wanting it to grow. Indeed, ensuring you have the right team, each person wanting it to grow, is an important element in ensuring that you get the growth you want with less stress. Every employee is vital to the entire drive towards more success. No one weak link should be tolerated.

“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.”3

3 Hubbard, “Environmental Control,” Policy Letter of 30 December 1970, Organization
Executive Course.

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Arte Maren Talks About the Administrative Scale of Importance

Arte Maren, business consultant and author, talks about the Administrative Scale as outlined in his book “The Natural Laws of Management: The Admin Scale“:

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If You Fail to Plan, You Plan to Fail!


Planning is a very important and easily learned technology. It has often been said that if you fail to plan, you plan to fail. So true. But a real plan (and I define a good plan as one that gets done,) is not a list of to-do items. It is the creation of your future.



Excerpt from The Natural Laws of Management: The Admin Scale, Chapter 11, PREPARATION, Page 51

1 Hubbard, policy letter "Too Little Too Late"

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Goals Are a Luxury Earned Through Production


“While goals are vital, it is so much harder (and less efficient) to judge effectiveness by a person’s verbalized or even written goals than by what that person actually produces.  One doesn’t often hear, “Boy, he sure can turn out a good goal.”  In fact, too often goals are used as a substitute or excuse for production.  Something has to come out the end of the conveyor belt of production and it shouldn’t be good intentions alone.

“Successful people do have very pro-survival goals and purposes.  You can see the products of such people around you.  But if good intentions actually exist, then they should manifest as valuable final products.”


The Natural Laws of Management: The Admin Scale


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Ask Arte: A Question and Answer Period with Arte Maren

Question: When presenting my product or service in the sales process how can I best judge the prospect’s interest level?

Arte Answer:  Judging interest level is a step that is done AFTER rapport (a connection would be another way to express it) has been established (without which actual interest could be submerged due to lack of affinity).  In the Hubbard management system we refer to it as a “communication line” meaning there is a palpable connection from salesperson to prospect.

There are several steps to be considered BEFORE one is concerned about interest level. In fact, the interest level is CREATED by these earlier steps.

Having established a “comm line”, one must then determine, discover, and remove any barriers which are present due to prior poor experience with your or similar product or service.

Note well: You cannot get a valid interest level in your product or service if the actual/real interest potential is suppressed by a prior negative of some nature (which could be personal experience or negative word of mouth or rumor).

Having cleared the barriers, you may THEN begin to judge interest by determining WHY they might want the product or service AND to what degree.  This probing section is where you are interested, not interesting.  What is the prospect trying to handle or why do they feel they need your product?  And, knowing what your product or service DOES handle, and handles well, search for their needs.  How?  By KNOWING the “ideal” for their area/industry/product or service within which they deliver.  What would it look like if it was operating optimally (see chapter 22 “The Ideal Scene” in my book “The Natural Laws of Management: The Admin Scale” at www.adminscale.net).

When comparing your concept of the optimal condition for the prospects company or activity, you can then determine the area or areas most likely in need of your product as the comparison will reveal a departure from that optimal condition.   You will then be able to more easily perceive a potential need and explore it for prospect reaction.  And if it is proving fruitful, pursue it deeper with further questioning in the area.  The rule here: Possible area of need?  Dig Deeper.

Here’s an example of a huge amateur mistake: Prospect tells you they need the product or service because they are “not very good at explaining the product” and the salesperson then proceeds to explain how their product or service totally handles that and here is why…blah, blah, blah.  When, in fact, through digging deeper for exactly WHAT troubles they have in “explaining the product” you may well discover that they have very poor communication skills as the real difficulty.  Another possibility is they, in fact, don’t think the product or service is actually that valuable (real event in my sales career more than once).  And there can be other possibilities such as they do know how to present but someone in their environment is invalidating their abilities.

So, how do you know if your prospect has interest?  By determining, through the 3 steps indicated above, the most important reason for their purchasing your product or service—from their viewpoint—and THEN explaining why and how your product or service handles THAT.

When you provide the solution to a problem that the prospect knows he has but has not been able to handle, you are in positive buying attitude on the part of the prospect. When you discover A NEED THAT THE PROSPECT DID NOT KNOW THAT THEY HAD, WHICH IS CONTRIBUTING T,O OR ACTUALLY CAUSING THE UNDERLYING SITUATION WHICH THEY ARE COMPLAINING ABOUT, you are Golden Done Deal.  Wrap it up and take the order.

What about the “Close?”  Oh, that?   That comes NATURALLY and effortlessly when having done the above.  It is simply Natural Law.


Arte Maren has 40 years experience in sales and administration and is the author of The Natural Laws of Management: The Admin Scale. For more information: www.adminscale.net He can also be reached at artemaren@gmail.com.

Copyright © ArteMaren, 2012.  All Rights Reserved.


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