Tag Archives: natural laws of management

“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.

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-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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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.

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

 

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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?

THE CAUSE OF THE AFFLUENCE IS STILL CAPABLE OF CAUSING IT!

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

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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.”

“What?”

“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?”

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“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.

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“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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“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

 

Do You Have Your Admin Scale?

“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 – 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

 

Do You Have Your Admin Scale?

Purpose and Ideal Scene (excerpt from Chapter 23)

Comparisons

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.

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“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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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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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.

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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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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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