January 1982 memo from "P.O.O", a name that Theophilus Smith used in internal discussions. Addressed to "a selected number of developing cadres", it first addresses a lack of theoretical study as well as a lack of criticism process in organizational households. It then turns to a discussion of financial budget needs of the organization and the cost of "mistakes" made by cadre.
It goes on to say that "The O is now entering a transitional period in its development, it is moving from the formation of an MLO to becoming a primary C. Party. The key question is can the O make it in the transitional period? The formula for success is: 1) computerized all accounting functions throughout the O; all major purchases must be approved as well as personal budgets for each quarter. 2) bring about rapid consolidation of computerized skills with the purchase of two computers with telecommunications capacity. 3) politically consolidate and recruit workers in the essential programs at the same time, replacing all cadres who have demonstrated time and again weakness of their administrative skills. The least developed worker anywhere in the US have basic contempt for management that doesn’t know how to manage, always making mistakes – – affecting the production process in one way or another and running a very disorganized operation."
Finally the memo concerns itself with "the large sums of money the O has invested in laying the foundation for a self-developing socialist system for addressing the needs of cadre has come back at a diminishing return. This is a very very serious state of affairs."