Though not a member of the
Sturmabteilung (SA), Schulz was temporarily appointed Acting SA Leader-East in April 1931. He was given the task of reorganizing the
Berlin SA in the wake of the
Stennes Revolt. Schulz brought the mutinous Berlin SA again under control of the party leadership and left the post at the end of May. Returning to Strasser's organization, he was made head of the department (
Arbeitsdienstpflichtamt) charged with setting up the Party's prototype labor service system in October 1931. Schulz very soon established a warm personal friendship and solid working relationship with Strasser. With his numerous contacts in the army, civil service and industry, he often served as Strasser's intermediary to influential people outside the Party, including General
Kurt von Schleicher and Chancellor
Heinrich Brüning. In April 1932, Schulz was elected as a member of the Prussian
Landtag. In the summer of 1932 Strasser initiated a series of organizational reforms to consolidate and centralize the Party structure by imposing an additional layer of supervision on the
Gauleiters. Strasser sought to improve organizational control of the Party ahead of the upcoming election to the German
Reichstag. On 15 June 1932 Schulz was appointed to the new position of
Reichsinspekteur I, with oversight responsibility for five new
Landesinspekteurs, each overseeing between one and five
Gaue.
Robert Ley was appointed
Reichsinspekteur II, responsible for another five
Landesinspekteurs. Thus, Schulz, in a relatively brief time, reached the highest levels in the Party hierarchy. However, his tenure proved to be short-lived. On 8 December 1932, Strasser resigned as
Reichsorganisationsleiter in a major policy dispute with Hitler over the future direction of the Party. In seeking to eradicate Strasser's legacy, Hitler decreed a thorough revocation of the recent administrative reforms. The positions of
Landesinspekteur and
Reichsinspekteur were abolished. Hitler temporarily assumed the duties of
Reichsorganisationsleiter, with Ley as Chief of Staff. Schulz, closely associated with Strasser, followed him into retirement. ==Night of the Long Knives and later life==