Rite Aid RAD under CEO Heyward Donigan

 

HEXAGRAM 49 – Ko – Revolution (Molting)

Above    TUI    THE JOYOUS, LAKE

Below    LI    THE CLINGING, FIRE

The Chinese character for this hexagram means in its original sense

an animal’s pelt, which is changed in the course of the year by molting.

From this the word is carried over to apply to

• the “molting” in political life,
  
• the great revolutions connected with changes of governments.
  

The two trigram making up the hexagram are

the same two that appear in K’uei, OPPOSITION (38), that is,

the two younger daughters, Li and Tui.

But while

there

• the elder of the two daughters is above, and
  
  • what results is essentially only an opposition of tendencies,
    

here

• the younger daughter is above.
  
  • The influences are in actual conflict, and
    
  • the forces combat each other like fire and water (lake), each trying to destroy the other.
    

Hence the idea of revolution.

 

THE JUDGMENT

REVOLUTION

On your own day

You are believed.

Supreme success,

Furthering through perseverance.

Remorse disappears.

Political revolutions are extremely grave matters.

They should be undertaken

• only under stress of direst necessity,
  
• when there is no way out.
  

• Not everyone is called to this task,
  
• but only the man who has the confidence of the people, and
  

  even he only when the time is ripe.
  

• He must then proceed in the right way, so that
  
• he
  
  • gladdens the people and, by enlightening them,
    
  • prevents excesses.
    

Furthermore,

he

• must be quite free of selfish aims and
  
• must really relieve the need of the people.
  

Only then does he have nothing to regret.

Times change, and with them their demands.

• Thus the seasons change in the course of the year.
  

In the world cycle also

• there are spring and autumn in the life of peoples and nations, and
  
• these call for social transformations.
  

 

THE IMAGE

Fire in the lake: the image of REVOLUTION.

Thus the superior man

• Sets the calendar in order And
  
• makes the seasons clear.
  

Fire below and the lake above combat and destroy each other.

So too in the course of the year a combat takes place between

• the forces of light and
  
• the forces of darkness,
  
  • eventuating in the revolution of the seasons.
    

Man masters these changes in nature by

• noting their regularity and
  
• marking off the passage of time accordingly.
  

In this way

• order and clarity appear in the apparently chaotic changes of the seasons, and
  
• man is able to adjust himself in advance to the demands of the different times.
  

 

THE LINES

Nine in the third place means:

• Starting brings misfortune.
  
• Perseverance brings danger.
  

When talk of revolution has gone the rounds three times,

• One may commit himself, And
  
• men will believe him.
  

When change is necessary, there are two mistakes to be avoided.

• One lies in excessive haste and ruthlessness,
  
  • which bring disaster.
    
• The other lies in excessive hesitation and conservatism,
  
  • which are also dangerous.
    

• Not every demand for change in the existing order should be heeded.
  

On the other hand,

• repeated and well-founded complaints should not fail of a hearing.
  

When talk of change

• has come to one’s ears three times, and
  
• has been pondered well,
  

he may believe and acquiesce in it.

Then he

• will meet with belief and
  
• will accomplish something- (1)
  

 

MOVING HEXAGRAM

 

HEXAGRAM 17 – Sui – Following

Above    TUI    THE JOYOUS, LAKE

Below    CHEN    THE AROUSING, THUNDER

The trigram Tui, the Joyous, whose attribute is gladness, is above;

Chen, the Arousing, which has the attribute of movement, is below.

Joy in movement induces following.

The Joyous is the youngest daughter, while

the Arousing is the eldest son.

An older man

• defers to a young girl and
  
• shows her consideration.
  

By this he moves her to follow him.

 

THE JUDGMENT

FOLLOWING has supreme success.

Perseverance furthers.

No blame.

In order to obtain a following one must first know how to adapt oneself.

If a man would rule he must first learn to serve,

for only in this way does he secure from those below him the joyous assent

that is necessary if they are to follow him.

If he has to obtain a following

• by force or cunning,
  
• by conspiracy or
  
• by creating factions,
  

he invariably arouses resistance, which obstructs willing adherence.

But even joyous movement can lead to evil consequences,

hence the added stipulation,

“Perseverance furthers”-that is, consistency in doing right – together with “No blame.”

• Just as we should not ask others to follow us unless this condition is fulfilled,
  
• so it is only under this condition that we can in turn follow others without coming to harm.
  

The thought of obtaining a following through adaptation to the demands of the time is a great and significant idea;

this is why the appended judgment is so favorable.

 

THE IMAGE

Thunder in the middle of the lake: The image of FOLLOWING.

Thus the superior man at nightfall

Goes indoors for rest and recuperation.

In the autumn electricity withdraws into the earth again and rests.

Here it is the thunder in the middle of the lake that serves as the image –

• thunder in its winter rest,
  
• not thunder in motion.
  

The idea of following in the sense of adaptation to the demands of the time

grows out of this image.

Thunder in the middle of the lake indicates times of

• darkness and
  
• rest.
  

Similarly, a superior man, after being tirelessly active all day,

allows himself rest and recuperation at night.

No situation can become favorable until one

• is able to adapt to it and
  
• does not wear himself out with mistaken resistance.
  

 

 

 

 

49 REVOLUTION

(Molting)

MANAGERIAL ISSUE:

The CEO – managing to bring about revolutionary corporate changes.

Hexagram 49 describes the CEO and his role in bringing about drastic changes to the corporation. The I CHING compares these drastic changes with the changing of an animal’s skin. This Hexagram is related to the Opposition (Hexagram 38) where tendencies oppose each other. Here, however, there are forces fighting and trying to destroy each other and only one will come out victorious.

The Superior CEO knows that:

• Sometimes drastic (Revolutionary) changes are the only means for the corporation to survive. Think of Andy Grove changing Intel’s focus from a memory company to a processor company, or Microsoft making a drastic change to embrace the Internet and try and embed it in its operating system.
  

• These drastic (Revolutionary) changes require a struggle between opposing camps. In the cases of Intel and Microsoft there were opposing camps that were willing to fight to the death in order to survive. Thus, the image of revolution where one of the opposing camps has to die. Bill Gates almost destroyed Microsoft because of his hesitation to support the camp that was pushing the disruptive (at that time) technology of the internet.
  

MANAGERIAL LESSON:

The Superior CEO knows there are various conditions for these drastic corporate changes (or Revolution) to take place and be successful. The revolution must be:

1. The only way out. Revolutions are not to be taken lightly. That is, the CEO must have tried all kinds of normal changes and must have found them ineffective in order to arrive to this desperate measure.
   

1. Led by a morally right CEO, especially because he will need the support of the employees. The CEO must project an image around which everyone must rally, an image of someone whose reputation is above reproach.
   

1. Based on constant communication. The three basic rules of normal change are communication, communication, and communication. But in the case of a drastic change, communication becomes even more imperative.
   

1. Focused only on the well being of the employees and not of the CEO. Only then will the employees accept the CEO and help him to successfully execute his revolution.
   

1. Carried out with perfect timing.
   

1. Based on the appropriate business plan. Such plan must bring happiness to all the employees and shareholders, place a stop to the previous abuses that led to the revolution, and establish the proper checks and balances for these abuses not to happen again.
   

INVESTMENT ADVICE:

For the investor, the Revolution Time-Space represents in general terms a difficult condition to invest:

• Revolutions are extremely grave matters. They should be undertaken only under stress of direst necessity, when there is no way out.
  
• Not everyone is called to this task, but only the man who has the confidence of the people, and even he only when the time is ripe.
  
  • He must then proceed in the right way, so that he gladdens the people and, by enlightening them, prevents excesses.
    
  • Furthermore, he must be quite free of selfish aims and must really relieve the need of the people.
    
  • Only then does he have nothing to regret.
    

By itself (no lines), the Time-Space points to Supreme Success and persevering in the revolutionary changes.

REVOLUTION

On your own day

You are believed.

Supreme success,

Furthering through perseverance.

Remorse disappears.

Political revolutions are extremely grave matters. They should be undertaken only under stress of direst necessity, when there is no way out. Not everyone is called to this task, but only the man who has the confidence of the people, and even he only when the time is ripe. He must then proceed in the right way, so that he gladdens the people and, by enlightening them, prevents excesses. Furthermore, he must be quite free of selfish aims and must really relieve the need of the people. Only then does he have nothing to regret.

Times change, and with them their demands. Thus the seasons change in the course of the year. In the world cycle also there are spring and autumn in the life of peoples and nations, and these call for social transformations.

The lines include three possibilities of good fortune (the second, fourth and sixth lines).

 

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing to bring about revolutionary corporate changes – when there is no other way out

Managerial Lesson: Be prudent.

Managerial Warning: At the first stage of the Revolution Time-Space, the CEO finds that such changes must be carried out only if there is no other alternative.

Managerial Advice: The Superior CEO knows the main requirement for starting revolutionary changes is for him to conquer himself and his impulses before he starts to implement the changes.

In this particular case, it would appear that it is not favorable for the CEO to bring about any change, that it would be best to roll with the punches and let others take the initiative. The corporation is not yet ready for any revolutionary changes.

Investment Advice: Do not invest.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing to bring about revolutionary corporate changes – after trying everything else.

Managerial Lesson: Be prepared.

Managerial Warning: At the second stage of the Revolution Time-Space, the CEO finds that after trying by all means to turn the corporation around in a normal way, it is time for drastic corporate changes.

Managerial Advice: The Superior CEO knows he must apply the following basic rules for making revolutionary changes:

1. The CEO must prepare his own self for making any drastic change. He must make sure there are no motives for anyone to question his image as the right leader for such changes,
   
2. If he does not fit that image, he might look for an able and honest assistant who fits such image. Whoever the CEO chooses must be capable of conquering himself before he attempts to conquer others, and
   
3. Whoever gets to make the changes (CEO or able assistant) must be able to create the proper atmosphere for the corporation to readily accept these changes. He must go out and deliberately seek such revolutionary changes.
   

Investment Advice: Invest. (Starting brings Good Fortune).

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing to bring about revolutionary corporate changes – waiting for the proper time, and striking the proper sense of balance

Managerial Lesson: Be balanced.

Managerial Warning: At the third stage of the Revolution Time-Space, the CEO risks falling into excessiveness while carrying out the revolution.

Managerial Advice: The Superior CEO knows that during the time of Revolution he must:

• Be balanced. He must be neither too aggressive nor too timid in bringing about revolutionary changes. He avoids:
  
  • excessive haste and ruthlessness, which bring disaster.
    
  • excessive hesitation and conservatism, which are also dangerous.
    

• Be very sure about the changes to be implemented:
  
  • Not every demand for change in the existing order should be heeded.
    
  • On the other hand, repeated and well-founded complaints should not fail of a hearing.
    

While the revolution is taking place, some employees will suggest many wild ideas about drastic changes. The Superior CEO’s sense of balance will serve him to differentiate between wild ideas based on making changes for the sake of change from the legitimate ones required for the corporation to be successful. As a rule of thumb the Superior CEO will begin the revolution by implementing the obvious changes the employees have been clamoring for.

The need to make sure the change is really needed is mentioned by the I Ching when it advises the CEO to make the changes only after they have been asked for three consecutive times.

Investment advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing to bring about revolutionary corporate changes – searching for his moral character as the key to bringing about corporate change.

Managerial Lesson: Be honorable.

Managerial Warning: At the fourth stage of the Revolution Time-Space, the CEO finds that to bring about revolutionary changes, he must have the moral authority to do so.

Managerial Advice: The Superior CEO is a man of character, therefore he can lead the corporation onto revolutionary changes, He knows everyone, including the employees, the Board of Directors, the shareholders and indeed the world, must be convinced he is a man of character. His integrity will:

• Encourage proper planning and generate the necessary support to execute revolutionary changes.
  
• Enable him to make only truly needed changes rather than make it appear as if he is just doing something. To make changes for the sake of change will only bring about the corporation’s destruction. How many CEO’s make changes for the sake of change? Why do so many CEOs change the focus of their corporation only to satisfy their own egos?
  

Investment Advice: Invest. (Good Fortune)

NINE IN THE FIFTH PLACE

Managerial Issue: The CEO – managing to bring about revolutionary corporate changes – clear goals and the proper communication as a first priority for making revolutionary corporate changes.

Managerial Lesson: Be communicative.

Managerial Warning: At the fifth stage of the Revolution Time-Space, the CEO finds he must set the right goals and communicate them to everyone.

Managerial Advice: The Superior CEO engages in two levels of communication: internal and external.

• In the internal communication (the most important one), he must make sure his deep belief in the need for revolutionary change:
  
  • Is shared by everyone. Everyone must have a deep belief in the need for revolutionary change even before he attempts to make any change.
    
  • Is so strong that everyone recognizes it even from afar.
    
  • Is very clear and not open to question.
    
  • Is a transformational experience. His belief in revolutionary change must transform him, and his vision of the completely new corporation must almost visibly change him too.
    
  • Is strong enough so that he will be able to change others almost without any effort.
    

• In the external communication, he must use the regular communication channels to make the changes public.
  

Investment Advice: Do not invest. Look for a better alternative.

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing to bring about revolutionary corporate changes – bringing about minor changes after the larger ones have been completed.

Managerial Lesson: Be motivational.

Managerial Warning: At the sixth stage of the Revolution Time-Space, the CEO finds he must complete the revolutionary changes.

Managerial Advice: The Superior CEO must:

• Complete the two basic revolutionary changes: the conceptual as well as the physical. First, he completes the basic conceptual revolutionary changes and then he completes the hundreds of minor physical changes. In the case of Andy Grove and Intel, he first had to change the conceptual corporate change – from a memory (DRAMs) to a microprocessor corporation – and then he had to deal with the physical details. By doing so, Grove transformed Intel from a manufacturer of memory chips into one of the world’s dominant producers of microprocessors. As CEO, Grove oversaw a 4,500% increase in Intel’s market capitalization from $4 billion to $197 billion, making it the world’s 7th largest company, with 64,000 employees.
  
• First change the mind of the top management and second change the mind of the lower ranks in the furthest branches of the corporation. The CEO’s conviction for revolutionary change is a must for the corporation to survive, but such conviction might not appear to the lowest ranking employees as necessary.
  
• Make sure all employees, even the lowest ranking ones, get the message for the need for change.
  
• Accept that such conviction might not be as deep amongst the employees as it might be for the CEO, but then again it is not to be expected. The idea is to make sure all employees are in the same wavelength.
  

Investment Advice: Do not invest. Look for better alternatives

 

17 FOLLOWING

MANAGERIAL ISSUE:

The CEO – managing to create a following among the employees/customers.

Hexagram 17 focuses on the CEO’s need to create a following amongst his employees and his customers.

• The I CHING says (*): ” Joy in movement induces following . . . An older man defers to a young girl and shows her consideration. By this he moves her to follow him. ”
  

Note: it is fascinating to see how, over three thousand years ago, the I CHING was advising men how to make women fall in love with them. The secret is not in viewing men as Martians or women as Venusians but rather giving women what they really want: simple CONSIDERATION.

MANAGERIAL LESSON:

The Superior CEO:

• Adapts:
  

1. To the conditions of the times. A CEO who is not in harmony with the times will not create following among his employees and customers. He will ask his employees to create products that no longer are in demand and will be promptly abandoned by his customers. That is one of the reasons why CEOs must be relatively young.
   
2. To the corporate culture. Observe before making any changes (John Boyd’s OODA). A typical case was Merrill’s CEO Bill Schreyer, who used to advice the newly appointed CEOs not to make any changes for the first six months or at least not until they got a feeling for the way to go.
   

• Serves:
  
• Is in front of marketing. The CEO should be the first one so serve the customers. Wendy’s Dave Thomas serving hamburgers himself comes to mind. Everyone will follow a CEO who leads by example, who first is willing to serve before telling others to serve.
  
• Makes sure the top executives serve the junior executives, and everyone serves each other. Taking care of their employees is what has made the Japanese companies such success. The CEO who takes care of his good employees and fires the bad ones will in turn be taken care of by his good employees.
  

• Knows the corporate business well.
  

• Leads customers and employees with joy and consideration. When an action plan is carried out with joy and consideration, all conditions are then given for all the employees to follow the CEO. This advice is extended to the higher-ranking executives who must also be considerate with the lower ranking executives.
  

• Keeps in mind the good of the employees so that they will eventually serve him well in carrying out his plans. The same applies to his customers.
  

• Is friendly and positive at all times. There will always be discontent during the time a new policy is implemented. If a new policy is interrupted during the first sign of discontent, there won’t be any success. The policy has to be kept until the employees finally accept it. A policy, which is based on positivism, is always superior to one based on negativism.
  

• Rests after completing a project. The CEO must adapt to the rhythm of the Universe. To take a reasonable break to replenish the corporate strength is crucial. To continue to push relentlessly creates exhaustion. No one wants to follow a CEO who will drive his employees to the ground. A “following-mode” policy must be followed by a “relaxation-mode” policy so that the CEO can once again demand a “following-mode” from his employees, and so on. When the time comes for the CEO to give the employees a break, the CEO and his top executives must also relax. The idea is not to go against the cycle’s concept, but rather to make the most of both modes: the following mode and the relaxation mode. Like the heart which compresses and relaxes.
  

The Superior CEO creates following by consideration and joy. He does:

• Not lead by force, cunning or conspiring by creating division amongst the ranks. This only arouses resistance which in turn obstructs the same willingness to follow he seeks from the employees and customers.
  
• Not ask others to do what he would not do himself. He must do the right thing at all times and ask others to do the right thing. By asking no one to do harm to others or to himself, he creates respect and following among his customers and employees. This is the essence of the problem with Altria (Philip Morris). By asking his customers to smoke and kill themselves and by asking his employees to produce a poisonous drug, the CEO creates a feeling of hatred from his customers who know they are buying death in a box and contempt from his employees who know they are producing something harmful.
  
• Not to force unrealistic goals upon the employees. No CEO can ever create an atmosphere of following-mode among the employees, if he forces unrealistic goals upon them, or forces them to work under demeaning conditions, or if he lies or cheats them with false promises, or if he tries to divide them to make them fight amongst each other. This creates the opposite of a following-mode. It creates only hatred and resentment.
  

INVESTMENT ADVICE:

For the investor, the Following is in general a favorable Time-Space to invest.

By itself (no lines) the Hexagram is positive because the CEO has the opportunity to adapt to the demands of the time.

FOLLOWING has supreme success.

Perseverance furthers.

No blame.

In order to obtain a following one must first know how to adapt oneself. If a man would rule he must first learn to serve, for only in this way does he secure from those below him the joyous assent that is necessary if they are to follow him. If he has to obtain a following by force or cunning, by conspiracy or by creating factions, he invariably arouses resistance, which obstructs willing adherence. But even joyous movement can lead to evil consequences, hence the added stipulation, “Perseverance furthers”-that is, consistency in doing right – together with “No blame.” Just as we should not ask others to follow us unless this condition is fulfilled, so it is only under this condition that we can in turn follow others without coming to harm.

The thought of obtaining a following through adaptation to the demands of the time is a great and significant idea; this is why the appended judgment is so favorable.

Most of the lines are positive (two are Good Fortune).

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue:    The CEO – managing to create a following among the employees/customers – opening his plans to new opinions and suggestions

Managerial Lesson: Be encouraging.

Managerial Warning: At the first stage of the Following Time-Space, the I CHING warns the CEO that in order to lead he must:

• Be accessible to everyone. Listen to everyone including top executives/employees and customers – including those who agree with him as well as those who disagree with him.
  
• Be responsive. Be ready to change the plans accordingly.
  
• Be principled as to what can and what cannot change.
  

The success of the Japanese system has to do in part with the fact that the CEO must listen to everyone and that any employee has the right to give his opinion to improve the productivity of the corporation. Legend has it that any worker in Toyota’s assembly line can stop the production should he find a faulty part.

Managerial Advice: The Superior CEO listens because he is:

• A man of principles and integrity,
  
• Courageous enough to accept changes.
  
• Clear about his vision of objectives,
  
• Willing to change the means to fulfill his vision.
  

That is why he also looks for ideas and opinions from outside his inner circle and looks for external advisors to help him complete his vision.

Here there is a parallel with Unisys’ idea of creating a new computer with a team, whose members came from diverse backgrounds including a priest and a philosopher. It is always positive to incorporate fresh ideas from various disciplines, which are not related to their corporate business. In this way we create our own disruptive technologies rather than get caught by surprise by someone else’s.

• The I CHING says (*): ” There are exceptional conditions in which the relation between leader and followers changes. It is implicit in the idea of following and adaptation that if one wants to lead others, one must remain accessible and responsive to the views of those under him. At the same time, however, he must have firm principles, so that he does not vacillate where there is only a question of current opinion. Once we are ready to listen to the opinions of others, we must not associate exclusively with people -, who share our views or, with members of our own party; instead, we must go out and mingle freely with all sorts of people, friends or foes. That is the only way to achieve something.”
  

Investment Advice: Invest.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing to create a following among the employees/customers – and failing.

Managerial Lesson: Be uncompromising.

Managerial Warning: At the second stage of the Following Time-Space, the I CHING warns the CEO of the dangers of holding on to the mediocre employees and customers of his misguided intent on keeping his bad advisors and worst managers either because of lack of character or because of friendship. This creates a bad precedent and the good employees leave.

Managerial Advice: The Superior CEO is ruthless when choosing his advisors, executives, employees and customers in general. He shows at all times that he will only accept the best. There can be no compromise with mediocrity. The CEO cannot serve two masters. He must tolerate neither lack of capacity nor lack of total commitment. Eagles only gather with eagles. The men of merit seek the men of merit. If he hires highly competent people, only the competent will apply for work. Google has that kind of attitude – only geniuses please. To mix the good with the bad will only make the good leave. The same applies to the customers.

In this case the CEO fails to create a following-mode and the men of merit reject the CEO for his poor leadership.

• The I CHING says (*): “In friendships and close relationships an individual must make a careful choice. He surrounds himself either with good or with bad company; he cannot have both at once. If he throws himself away on unworthy friends he loses connection with people of intellectual power who could further him in the good.”
  

Investment Advice: Do not invest.

SIX IN THE THIRD PLACE

Managerial Issue:    The CEO – managing to create a following among the employees/customers – ruthlessly firing the worst and keeping the best.

Managerial Lesson: Be committed.

Managerial Warning: At the third stage of the Following Time-Space, The I Ching warns the CEO – once he brings in the men of talent, he must let go of the incompetent. There must be no compromise with mediocrity if he wants to succeed.

Managerial Advice: The Superior CEO fires the incompetent and surrounds himself with the best employees only. In this way, he will show his commitment to the highest principles and his commitment to excellence. The Superior CEO will create a following from those employees who remain with him much faster if he fires the incompetent employees, even if this means a temporary slow down for the corporation. The employees who remain with him will, in turn, bring men of same quality, character and style, thus creating the conditions for success. To be successful, the CEO must remain inflexible in the execution of this policy to show he knows his goals as well as himself.

• The I CHING says: “When the right connection with distinguished people has been found, a certain loss naturally ensues. A man must part company with the inferior and superficial. But in his heart he will feel satisfied, because he will find what he seeks and needs for the development of his personality. The important thing is to remain firm. He must know what he wants and not be led astray by momentary inclinations.”
  

Investment Advice: Do not invest. Look for better alternatives.

NINE IN THE FOURTH PLACE

Managerial Issue:    The CEO – managing to create a following among the employees/customers – with the wrong employees/customers.

Managerial Lesson: Be focused.

Managerial Warning: At the fourth stage of the Following Time-Space, The I Ching warns the CEO dishonest and inept employees have gotten too close to him by adulation rather than merit and capacity or because of his own leniency. These employees are only interested in advancing their personal agenda rather than thinking about the corporation. There is a danger he will become too attached to them to the point they are becoming indispensible.

Managerial Advice: The Superior CEO is clear about and remains focused on the basics – to reward merit and punish inefficiencies. The inept employees can influence him only if he allows them to inflate his ego. It is not clear that the CEO has the inner strength to keep firm in the execution of the I CHING’s advice.

Investment Advice: Do not invest.

NINE IN THE FIFTH PLACE

Managerial Issue:    The CEO – managing to create a following among the employees/customers – within their own interests.

Managerial Lesson: Be sincere.

Managerial Warning: At the fifth stage of the Following Time-Space, the I Ching warns the CEO every employee/client has his own interest. Do not look outside of it.

Managerial Advice: The Superior CEO:

• Seeks what really interests the customers and employees.
  
• Provides for that which interests his customers/employees.
  

The Superior CEO’s policy aims to seek and provide his customers/employees real interests by rewarding merit, honesty and talent only. His success is contingent upon his executing this policy with all his strength and conviction. This policy should be his north, his compass, and the result will be success. The lesson is that the CEO who seeks for merit among his employees and does it with all his strength will surely succeed.

Investment Advice: Invest.

SIX IN THE SIXTH PLACE

Managerial Issue:    The CEO – managing to create a following among the employees / customers – finding wise advisors from outside his circle.

Managerial Lesson: Be open.

Managerial Warning: At the sixth stage of the Following Time-Space, the I Ching advices the CEO that even a retired CEO can have his own following. Many retired CEOs are constantly called upon to provide advice on important issues. Some even keep offices in the building.

Managerial Advice: The Superior CEO looks for external advice from retired executives, perhaps from a retired CEO. He will find a real wise man that used to have his own following and really knows the business. The Superior CEO recognizes his merits, gets him out of retirement to help him in the execution of his plans, and gets his loyalty and support. This will lead to a long-lasting friendship and to the corporation’s success.

The managerial lesson is that it is never too late to recognize merit because merit is beyond age, that the Superior CEO will look for men of merit everywhere, and that he must surround himself by men of merit to ensure his own success. Many corporations keep an office for their retired CEOs to have access to their experience.

Investment Advice: Do not invest.

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