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### The Conditions, States of Operation

By L. Ron Hubbard

An organization or its parts or an individual passes through various states of existence. These, if not handled properly, bring about shrinkage and misery and worry and death. If handled properly they bring about stability, expansion, influence and well-being.

These, arranged from highest to lowest, are:

**Power Change**

**Liability**

**Doubt**

**Enemy**

**Treason**

**Confusion**

The formulas for these are apparently monitoring formulas for livingness.

The first thing to know about them is that each step in a formula is in exact sequence and must be done in that sequence. It is totally fatal to reverse the order of sequence of two or more actions. Example: in Emergency economize before you promote. If the sequence is disordered, the final result is a smaller org or less influential person.

A key datum is that if the formulas are not known or not correctly applied, an organism emerges from each crisis smaller.

The next thing to know is that one knows what formula to apply only by closely and continually inspecting statistics. By statistics is meant numbers of things, measurement of volume, all relative to time. A statistic not compared to the same type of statistic earlier will not predict any future statistic. A single statistic is meaningless. Statistics are always worse than, the same as or better than they were at an earlier period. Graphing and the reading of graphs is a vital necessity then in monitoring an org, department or person and applying condition formulas to it.

This is much easier than it appears. If you made $1,000 last week and only $200 this week, you obviously are slipping, if you made $1,100 this week you are pretty stable, if you made $5,000 this week you are affluent. All compared to the $1,000 you made last week.

What is the Code of Conduct you should use to stay healthy under these *conditions*? These are the Condition Formulas.

The third thing to know is that one can wreck an organization or department or person by applying the wrong condition formula. The person is in Emergency condition. One applies the condition of Affluence or Power or anything but the Emergency formula and the person will go bust. The universe is made that way. The right condition must be applied.

A vital thing to realize is that the formulas of conditions exist. They are part and parcel of any activity in this universe and now that they are known they must be complied with. This takes about 90 percent of chance out of business operation or personal economics. The variables are only how well one estimates the situation and how energetic one is in applying the formulas.

The next thing to know is that the proper application of the proper formula works. It works no matter how stupidly it is applied only so long as the right formula is applied and the exact sequence of steps is taken. Brilliance only shows up in the speed of recovery or expansion. Very brilliant applications show up in overnight, sound expansions. Dull applications, given only that they are correct, show up in slower expansions. In other words, nobody has to be a screaming genius to apply them or dream up the necessary ideas in them. One only has to estimate the condition accurately and act energetically in applying its steps in exact order. The brighter the ideas, the faster the expansion, that’s all. The expansion or gain is itself inevitable. However, if the dullness includes adding needless steps, then one may fail. And if one is so stupid that a wrong estimate is made of conditions and a wrong formula is applied and applied with its steps in wrong sequence, then one jolly well deserves to fail!

Another thing to know is that these conditions apply to a universe, a civilization, an organization, a portion of an organization or a person alike.

The next thing to know is that knowing the formulas carries the responsibility of using them. Otherwise one could be accused of willful suicide! For these are the formulas. And they do work like magic.

If these formulas are not known or used, expansion is totally a matter of chance or fate regardless of how good one’s ideas are.