Tag Archives: administrative scale

“THE BEST GUARANTEE OF STABILITY IS ADMINISTRATIVE SKILL”

strategy-business-arte-marenStandard administration is a collection of truths. An excellent working definition for truth is “that which works. And that which works most broadly to that which it is applied.”7

If what you are using is not working, it is relatively untrue. Policies and procedures are the basic truths or guiding principles. Company and personal stability depends upon having such written “laws” available and known to all concerned.

The continuance of an organization and its leaders can be said to be entirely dependent upon the skill, training and integrity of those who handle the administrative lines, details and contacts of the group.

“THE BEST GUARANTEE OF STABILITY IS ADMINISTRATIVE SKILL.”8

As has often been said, why reinvent the wheel? I would rather get into all the creative aspects of living and not spend my time trying to solve things that have already been solved years ago. Do I need to experiment with my “problem” for another three to four months while my income is going down? It would be far better simply to find the natural law that applies to that situation and remedy it.

arte-maren-business-consultant-author-speaker

-Arte Maren

International Speaker, Writer and Business Consultant
Author of The Natural Laws of Management: The Admin Scale
www.naturallawsblog.com – www.adminscale.net

 

7 “Truth” (definition), Hubbard, Modern Management Technology Defined
8 Hubbard, “Stability,” Policy Letter of 20 September 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. Excerpt from The Natural Laws of Management: The Admin Scale. Copyright © 2014 Arte Maren, Inc. All Rights Reserved

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It Takes Courage to Be Successful – by Arte Maren

doubt_diceDoubting just makes it easier to fail. It’s more comfortable and gives you something to lean on. The fact is, you can make it go right if you have enough courage!

All too often we wait for the external environment to change before we change: “after the fall (or winter, or summer, or the holidays)”—“when the kids are in (or out of) school”—“next weekend.” Waiting is simply another form of failure—of lack of courage. Waiting is the effect of things.

Suppose you didn’t have failure as an option? Supposing you just removed failure from your whole conceptual “kit bag.” It doesn’t exist. That only leaves making it go right all the time. It takes courage to be successful.

And, if you agree and decide that failure is not possible, and then fail, do you now feel bad and invalidate yourself? Do you decide that it is a concept only for others? No! Acknowledge it. Know that you had something incorrect. Fix it, and then make it go right. If it didn’t go right, you don’t then conclude that there must be something wrong with your ability to postulate. That would be invalidation.

It’s simple. Maybe that is why it is so hard to grasp.problem-solving-arte-maren-natural-laws-of-managment-admin-scale

It is a question of being in harmony with the laws of the physical universe. Naming a product is a tool of management. You are senior to any tool. You are the person who’s going to make this thing work one way or the other. And that takes being unreasonable, which is a very professional viewpoint.

The next time you hear somebody making excuses, know that they have a social disease called failure. They caught it from someone else. Listen to others being reasonable. No more options. Catch yourself when you start coming up with your own little options. You get into the car and you’re late and you say to yourself, “I’m always late.” Well, you will certainly keep being late if that’s what you think!

-Arte Maren
International Speaker, Writer and Business Consultant
Above excerpt from the book:  The Natural Laws of Management: The Admin Scale
www.naturallawsblog.com
www.adminscale.net

Copyright © 2014 Arte Maren, Inc. All Rights Reserved

 

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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.

PROGRAMMING

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.

A BALANCE

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
www.naturallawsblog.com
www.adminscale.net

 

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
www.naturallawsblog.com
www.adminscale.net

 

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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
www.naturallawsblog.com
www.adminscale.net

 

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Stress or “Stretch” Your Employees? Tip for Executives

As an executive, if you attempt to force activity or productivity from your employees you are likely to create stress.

A different approach is to validate employees with high expectation (that’s what I call “stretching”). By this I mean your expectation is high and you then expect they can rise (stretch) to meet this expectation. That’s stretching, When demanded, employees may still perform the task but their motivation is more avoiding the consequence of not getting it done rather than the purpose.

Approach your employees with the idea that you know they are capable of getting a task or project done. This then brings about greater certainty on their part which then will create more overall productivity.

-Arte Maren
Business Consultant, Lecturer
Author of The Natural Laws of Management: The Admin Scale
www.naturallawsblog.com
www.adminscale.net

 

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Thorsten von Overgaard, Danish Photographer and Writer on “The Natural Laws of Management: The Admin Scale”

“So the Admin Scale is important. And I read Arte’s book and when I started out as a photographer—and what I recommend people do is—usually they have some talents and that’s usually defined as the things that you do very easily and people go ‘Wow!’.

“So the question is how can you do the things that you really love to do and you’re really good at; that are valuable to all? How can you turn that into what you do full time and what you make a living from? And that’s basically what you use an Admin Scale for, because we have to have a lot of different elements fall in place. And they have to fall in place as you develop your talent and develop as a person.”

Thorsten von Overgaard is a Danish writer and photographer, specializing in portrait photography and documentary photography, known for writings about photography and as an educator. Some photos are available as signed editions via galleries or online. For specific photography needs, contact Thorsten Overgaard via e-mail. Feel free to e-mail tothorsten@overgaard.dk for advice, ideas or improvements.

 

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The Key to Any Successful Endeavor – by Arte Maren, Business Consultant

The key to any successful endeavor is being interested. Interest is a very, very valuable tool. And it is one of the most valuable resources an administrator has. In order to find out what is valuable, you’re going to have to be interested. A professional is interested.

enthusiastic-interested-businessman-boss-arte-maren-the-natural-laws-of-management

“A person is interested, and an object is interesting. A person is not interesting. He is interested. And when a person becomes terribly interesting he has lots of problems. That is the chasm that is crossed by all of your celebrities, anybody who is foolish enough to become famous. He crosses over from being interested in life to being interesting, and people who are interesting are really no longer interested in life.”1

Frank Sinatra made you feel like he was singing to you. He was interested in the audience. And he got, in return, admiration—applause. They gave him that because of his interest, preparation, and, of course, his talent.

frank-sinatra-interested-happy-arte-maren-the-natural-laws-of-management

Many years ago I was interviewed by a magazine reporter in Washington, D.C., with a reputation for being pretty antagonistic in his interviews. Starting off the interview, he said, “Well, Mr. Maren, let me ask you a few questions.” I answered his questions and then I asked him a few questions. He didn’t really want to answer much. “Well, no. I ask the questions,” he said. We talked a little more and then I asked him another question. The question I asked was a really interesting one to him regarding how and why he had started his career as a journalist. He started talking. And I asked him a few more questions. Finally we ended off and he got up from his chair and said, “Mr. Maren, this was one of the most fascinating interviews I’ve ever had. Thank you very much.” I hardly talked about me, it was all about him. And he wrote an excellent article.

If anyone is being interesting, they’re really saying, “Give me, give me. Give me your admiration, give me attention.” But if you are truly interested, then you’re observing. You’re admiring. You are giving attention, and attention is tremendously coveted.

-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

1 “Interest” (definition), Hubbard, Technical Dictionary.

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“The Early Warning System” in Business, Part 2 by Arte Maren

<Continued from Part 1>

analyze-graph-up-statistic-arte-maren-the-natural-laws-of-management-admin-scale

The reverse is true as well. When a stat has been in the low range of the graph and then goes slightly up, it should be validated, even when only a slight rise:

“Also, it’s a bit mean to nag around about a rise. ‘But it isn’t much of a rise, you’re really in too low a range to have a rise count…’

“A rise is a rise. They at least got more. Now, better organizing, they will get more than that. Week by week it goes up.

“Similarly to discount a fall just because stats are high high high is folly. They could do week before last’s as they did it. So what was wrong that they couldn’t do it again? If they got exhausted at it week before last they need more help, obviously. Or better organization.”4

And it was not just the down stat not confronted! The problem with this particular graph occurred not only at the low point, but at the high point! What wasn’t confronted, what wasn’t handled, was not just the low week, but also in the high week!

Investigating Up Statistics

Something very effective was occurring through the upswing but nobody found out what it was! Then something changed and the stat crashed out the bottom. Why is it that when things aren’t going well everyone wants to know why? The lower it goes, the more agitated they can get.

But what happens when a stat goes up? If the statistic is rising, everyone relaxes. And what happens? The statistic drops because nobody found out why it was going up in the first place! And when it drops, what do they say? “Well, of course it dropped. It was up so high.” Which is, naturally, totally “reasonable.” In other words, it was expected to fall, and of course it fell.

An inspection and investigation of an up statistic should be at least as interesting, if not more so, than the down stat. After all, it’s positive! The time to investigate is on the upswing when it’s going well. That’s a lot more fun, and it’s a vital action. It’s hardly ever done to the degree that it should be. When things are going well, you want to find out why. And when they’re not going well, you’re going to find out why also.

Statistics rise or fall because of positive or negative changes. Statistics are a matter of changes. Some kind of positive change in some operating procedure was introduced near the point that started things going on the climb. If a stat drops, something changed. Whatever positive factor was put in was taken out or altered.

statistic-analysis-arte-maren-the-natural-laws-of-management-admin-scale

“When statistics change radically for better or for worse look for the last major alteration or broad general action just before it and it is usually the reason.

“Example: Letter out statistic falls and falls. In investigating, look for the last major change in that area and if possible cancel it and the statistic will then rise.”

Mr. Hubbard further explains, in the same issue, how he arrived at this management concept:

“I learned this while researching the life force of plants. Every time I saw a research bed of plants worsen, I queried what routine had been varied and found invariably some big change had been made that wasn’t usual.

“It is change that changes things for better or for worse. That’s the simplicity of the natural law.

“If you want to hold a constant condition, don’t change anything.

“If you are trying to improve something make changes cautiously and keep a record of what is changed. Then you watch statistics and if they decline you hastily wipe out the last change. And if they improve you reinforce the change that began it.”5

Of equal importance to changes are comparisons. Comparison is as vital in stats as it is in evaluating anything.

“Statistics must be studied and judged alongside the other related statistics.

“A rising income graph can even be shown sometimes as an actual threat to an organization if the delivery stats are down and stay down. It means the organization is selling and not delivering and may very well crash shortly.”6

-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

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4 Hubbard, “Reading Statistics,” Policy Letter of 5 May 1971, Organization Executive Course.
5 Hubbard, “Statistics, Actions To Take, Statistic Changes,” Policy Letter of 1 February 1966, Organization Executive Course.
6 Hubbard, “Statistical Judgment,” Policy Letter of 9 February 1970, Organization Executive Course.

“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

creating-your-own-luck-arte-maren-natural-laws-of-management

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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“On Being a Professional” by Arte Maren

Professionals exude a confidence that comes from both experience and results. I am pleased to call Patrick Valtin my friend, with whom I share the joy of helping others.

arte-maren-patrick-valtin-natural-laws-of-management-admin-scale

-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

 

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Learn by Teaching: The Real Voyage of Discovery

It has been said that if one wants to learn something, teach it. Actually quite true at a higher level: one is not simply learning the subject, but the effect of the subject on others, their needs for the subject (in greater detail), as well as greater familiarity with the subject every time one teaches it.

learn-by-teaching-arte-maren-natural-laws-of-management-admin-scale

I just completed 4 hours of The Natural Laws of Management to a group of 60 business owners. And what did I learn?

1. Assisting others to “see” is one of the greatest gifts you can give another human being. It was Proust who said, “the only real voyage of discovery lies not in seeking new landscapes but in having new eyes”.

2. If you have a gift of such ability to give, use it or lose it. I call it the joyful obligation.

3. Just because you found these assembled truths first, or divined them (by your own perception) that they are not and have never been “yours”, they belong to nobody but the universe as it is/was at the moment you shared them.

4. If it is not fun, well, then…what is the point?

 

-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

 

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Chapter 21 Excerpt: Fixed Conditions vs. Expansion

businessman-uptrending-graph-image

Some individuals or companies consistently have a flat graph— that is to say, stats that go level across the graph. There are lots of “reasons” usually given as to why it’s flat, but they are merely explanations as to why the statistic is down. This applies to any statistic that is down, on a downtrend, or even flat. On Earth, any activity either expands or contracts—it never stays the same.

“It is an empirical (observed and proven by observation) fact that nothing remains exactly the same forever. This condition is foreign to this universe. Things grow or they lessen. They cannot apparently maintain the same equilibrium or stability.

emergency-graph-image

“Thus things either expand or they contract. They do not remain level in this universe. Further when something seeks to remain level and unchanged it contracts.

“Thus we have three actions and only three. First is expansion, second is the effort to remain level or unchanged and third is contraction or lessening.”

Given these three actions, the choice is clear: “To survive, then, one must expand as the only safe condition of operation.”1

uptrending-graph-image

What do you do with a flat graph? Make it go up! “I’m not going to accept this anymore.” A good first step.

“Organizations are not well run by the old school tie2, what professor one knew in the Ivy League University or who is shacked up with whom. Organizations run by other considerations than stats hurt the individual staff members. Organizations are well run when they are run by fairly and realistically designed stats for every staff member, division and the organization.”3

Remember, you are keeping stats for expansion. That is the name of the game.

 

-Arte Maren

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

 

 1 Hubbard, “Expansion, Theory Of Policy,” Policy Letter of 4 December 1966, Organization Executive Course.
2 Old school tie: “The expression old school tie has essentially the same meaning as the business association interpretation of old boy network. This expression derives from school ties indicating that the wearer is an old boy of a particular school.” Wikipedia.com.
3 Hubbard, “Statistics, Management By,” Policy Letter of 5 February 1970, Organization Executive Course. Fixed Conditions vs. Expansion

 

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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!).

Gradients

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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“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 – Statistical Management” with Arte Maren (Management by Statistics, Part 6 of 8)

This is video #6 in an 8-part series titled “Management by Statistics” delivered by veteran consultant Arte Maren. He discusses the need for statistics as an unbiased measurement and how to compare 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 – 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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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:

joy-gendusa-interview-ceo-inc-500-postcardmania-businesswise-tv-arte-maren-natural-laws-of-management-admin-scale

 

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

 

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

organization-and-attitude-arte-maren-natural-laws-of-management-admin-scale

“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.

business-exchange-arte-maren-natural-laws-of-management

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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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.

business-exchange-inflow-and-outflow-arte-maren-natural-laws-of-management

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?”

the-natural-laws-of-management-solving-problems-arte-maren

– 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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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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