Tag Archives: management

“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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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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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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“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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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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Sales Gold: Converting Want into Demand, Part I


If you discover a need (and surely you must), you have improved your chances for a sale. But the real Gold is having discovered a need that the client did not previously know he had—and that creates demand.

How is that done? By not falling short on probing. Biggest error: find a need, try to sell it. But is that really the greatest need? Often not.

Arte Rule: Find the REAL need and turn the want into Demand!


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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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Providing Superlative Service

A positive attitude on sales is important too.

Selling has a bad reputation. It’s come to mean, in some cases, “forcing something on someone that they don’t want and can’t afford.” That’s not selling. Selling has been a major force in the creation of American society. It’s been a vital link between the producer and the consumer. And the derivation of the word “sell” comes from an old English word sellen, which means “to get, deliver.” It’s the ability to place your product into the hands of the consumer on a rapid basis.

The whole cycle of a product and exchange can be viewed in relation to communication.

Excerpt from The Natural Laws of Management: The Admin Scale, Chapter 7 Superlative Service, Page 32.

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The Natural Laws of Management: Delegate Does Not Mean Dump

It is supremely important that the executive concentrates on those activities that only he or she can do from his or her vantage point.

The effective action to ensure this occurrence on any regular basis is often short-circuited, made expedient.  Functions that indeed do belong outside of the executive office, more profitably done elsewhere, are not formally delegated but unceremoniously dumped.

A “function dump” might well be defined as: passing off a function to another without having insured by direct observation or other means that the individual receiving the function not only fully understands its purpose and value, but in fact has demonstrated his or her ability to actually accomplish the function.

But, you say, “this takes time.  It is so much easier to simply dump it”.  I’m reminded of the old saying, “You can pay me now or you can pay me later”.  You are going to put in the delegation training time and it is best to do it before you start, rather than after you have begun delegating–only to find that it is necessary to redo much of what you have passed on. 

An executive conundrum to consider— why is it we never have the time to do it right, but we always find the time to do it over?

Arte Maren, Author of The Natural Laws of Management: The Admin Scale


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The Natural Laws of Management: Management By Hope?

It does not matter what you call it—management is defined by its workability!  The Natural Laws of Management delves into the infinite number of errors made by managers unfamiliar with “the natural laws’ and more importantly, the most workable of “laws” easily understood and implemented.

“In the past 25 years, I have observed many a “management system.”  You may be familiar with the work of Peter Drucker–“Management by Objectives”.  I ran across a company that practices what I would call management by hope. “Are we going to have a better quarter?  Dunno, I hope so!”  “Will we get the order? Gee, I hope so!” And then there is what I call management by consequence.  Employees do things for fear of what happens if they do not.  Now that is a stress environment!


Indeed, L. Ron Hubbard equates such an environment with “being serious”, the enemy of creativity and motivation.  In fact, he defines serious as “when interest is important because of penalty.”  Of course, as business is a game, it should be fun and treated as a game, as “play with a purpose.”  Indeed, Hubbard warns: “The more serious you take the game, the less chance there is of winning.”

Excerpt from The Natural Laws of Management: The Admin Scale,  Chapter 10, Page 50, Chapter on Certainty.


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