Deere & Co DE under CEO John May

6	H	H	H	3	3	3	9
5	H	T	T	3	2	2	7
4	T	T	T	2	2	2	6

3	H	T	T	3	2	2	7
2	H	T	T	3	2	2	7
1	H	H	T	3	3	2	8

HEXAGRAM 57 – Sun – The Gentle (The Penetrating, Wind)

Above SUN THE GENTLE, WIND, WOOD

Below SUN THE GENTLE, WIND, WOOD

Sun is one of the eight doubled trigrams.

is the eldest daughter

and

symbolizes wind or wood;

it has for its attribute gentleness,

which nonetheless penetrates

like the wind

like growing wood

with its roots.

The dark principle, in itself rigid and immovable,

is dissolved by the penetrating light principle,

to which it subordinates itself in gentleness.

In nature,

it is the wind that

disperses the gathered clouds,

leaving the sky clear and serene.

In human life

it is penetrating clarity of judgment that

thwarts all dark hidden motives.

In the life of the community

it is the powerful influence of a great personality that

uncovers and breaks up those intrigues

which shun the light of day.

THE JUDGMENT

THE GENTLE.

Success through what is small.

It furthers one to have somewhere to go.
It furthers one to see the great man.

Penetration produces

gradual

and

inconspicuous

effects.

It should be effected

not by an act of violation
but by influence that never lapses.

Results of this kind are less striking to the eye

than

those won by surprise attack,

but

they
- are more enduring
and
- more complete.

one would produce such effects
one must have a dearly defined goal,

for only when

the penetrating influence works always in the same direction
can the object be attained.

Small strength can achieve its purpose

only by

subordinating itself to an eminent man
who is capable of creating order.

THE IMAGE

Winds following one upon the other: The image of THE GENTLY PENETRATING.

Thus

the superior man

Spreads his commands abroad

And

carries out his undertakings.

The penetrating quality of the wind depends upon its ceaselessness.
- This is what makes it so powerful;
- time is its instrument.

In the same way

the ruler’s thought should penetrate the soul of the people.
- This too requires a lasting influence brought about by
  - enlightenment
  and
  - command.

Only when

the command has been assimilated by the people
is action in accordance with it possible.

Action without preparation of the ground only

frightens

and

repels.

THE LINES

Six in the fourth place means:

Remorse vanishes.

During the hunt

Three kinds of game are caught.

When a

responsible position

and

accumulated experience

lead one to combine

innate modesty

with

energetic action,

great success is assured.

The three kinds of animals referred to served

for offerings to the gods,
for feasting guests,

and

for everyday consumption.

When

the catch answered all three purposes,
the hunt was considered especially successful.

Nine at the top means:

Penetration under the bed.

He loses

his property

and

his ax.

Perseverance brings misfortune.

A man’s understanding is sufficiently penetrating.

He follows up injurious influences into the most secret corners.

But

he no longer has the strength to combat them decisively.

In this case

any attempt to penetrate into the personal domain of darkness

would only bring harm.

MOVING HEXAGRAM

HEXAGRAM 28 – Ta Kuo – Preponderance of the Great

Above TUI THE JOUYOUS, LAKE

Below SUN THE GENTLE, WIND, WOOD

This hexagram consists of

four strong lines inside and
two weak lines outside.

When

the strong are outside and
the weak inside,
- all is well and
- there is
  - nothing out of balance,
  - nothing extraordinary in the situation.

Here, however, the opposite is the case.

The hexagram represents a beam that is
- thick and heavy in the middle but
- too weak at the ends.
  - This is a condition that cannot last;
  - it must be changed, must pass, or misfortune will result.

THE JUDGMENT

PREPONDERANCE OF THE GREAT.

The ridgepole sags to the breaking point.

It furthers one to have somewhere to go.

Success.

The weight of the great is excessive.

The load is too heavy for the strength of the supports.

The ridgepole, on which the whole roof rests, sags to the breaking point,

because its supporting ends are too weak for the load they bear.

It is an exceptional time and situation;

therefore

extraordinary measures are demanded.

It is necessary

to find a way of transition as quickly as possible, and
to take action.

This promises success.

For although the strong element is in excess,

it is in the middle, that is, at the center of gravity, so that

a revolution is not to be feared.

Nothing is to be achieved by forcible measures.

The problem must be solved by

gentle penetration to the meaning of the situation

(as is suggested by the attribute of the inner trigram, Sun);

then

the change-over to other conditions will be successful.

It demands real superiority;

therefore

the time when the great preponderates is a momentous time.

THE IMAGE

The lake rises above the trees:

The image Of PREPONDERANCE OF THE GREAT.

Thus the superior man,

when he stands alone, Is unconcerned, And
if he has to renounce the world, He is undaunted.

Extraordinary times when the great preponderates are like
flood times when the lake rises over the treetops.

But such conditions are temporary.

The two trigrams indicate the attitude proper to such exceptional times:

the symbol of the trigram Sun is the tree,
- which stands firm even though it stands alone, and
the attribute of Tui is joyousness,
- which remains undaunted even if it must renounce the world.

57 THE GENTLE (THE PENETRATING)

MANAGERIAL ISSUE:

The gentle CEO – being gentle to penetrate all aspects of the corporation.

Hexagram 57 refers to a gentle CEO. However, gentleness can be deceiving, for gentleness can be an iron fist behind a velvet glove. A gentle CEO can penetrate or conquer even the worst situation with his own kindness. Even evil, at its worst, will eventually surrender to the power of gentleness, as shown by Mother Theresa.

The I Ching says: “The dark principle, in itself rigid and immovable, is dissolved by the penetrating light principle, to which it subordinates itself in gentleness”.

MANAGERIAL LESSON:

The Superior CEO uses his own natural weapons for the gentle penetration of all aspects of the corporation:

Truth to dispel evil lies.

Righteousness to keep evil actions from hurting the corporation.

Gentleness and modesty, particularly when making changes. The Superior CEO avoids violent changes or violent penetration, because violence leads to destruction and there is no need to hurt anyone. He applies evolutionary changes or gentle penetration because such changes are much more lasting than revolutionary changes.

A highly focused mind to keep his target on sight at all times.

Tenacity in the relentless pursuit of his goals. Tenacity is what makes the gentle penetration so effective. And

Communication skills to let everyone know well ahead of time about:

The goals,
The means to achieve such goals, and
The role everyone must play in achieving such goals.

The Superior CEO practices the three rules of change: communication, communication, communication. He knows that to be successful he needs to establish the correct attitude for the collective action of all the employees. That such collective action can be achieved only if every employee acts together as a team, as if moved by a single mind, because only then will they easily achieve the goals. Communication will serve him to establish this attitude. With such attitude, the gentle CEO can bring peace and order to any corporation in chaos.

INVESTMENT ADVICE:

For the investor, the Gentle (Penetrating) represents in general terms an unfavorable Time-Space to invest.

By itself (no lines) the Time-Space points to success provided the CEO subordinates to an eminent man capable of creating order.

THE GENTLE.

Success through what is small.

It furthers one to have somewhere to go.

It furthers one to see the great man.

Penetration produces gradual and inconspicuous effects. It should be effected not by an act of violation but by influence that never lapses. Results of this kind are less striking to the eye than those won by surprise attack, but they are more enduring and more complete. If one would produce such effects one must have a dearly defined goal, for only when the penetrating influence works always in the same direction can the object be attained. Small strength can achieve its purpose only by subordinating itself to an eminent man who is capable of creating order.

The lines include only two possibilities of Good Fortune, two real negatives and two semi negative.

THE LINES

SIX IN THE FIRST PLACE

Managerial Issue: The gentle CEO – gently penetrating the corporation – a gentle penetration without resolution can be a negative managerial practice.

Managerial Lesson: Be decisive.

Managerial Warning: At the first stage of the Gentle (Penetrating) Time-Space, the CEO risks being so gentle as to be irresolute.

Managerial Advice: The Superior CEO knows that:

Gentleness without the use of the proper weapons leads to hesitation, and he who hesitates is lost.
At times of hesitation he must keep in mind his duty, do as his duty demands, and do it with his utmost determination.
The key to the success of the gentle penetration is determination.

The U.S. Marines say that even a hastily prepared plan if it is executed with the utmost determination is more likely to succeed than a perfectly prepared plan executed without any determination.

Investment advice: Do not invest

NINE IN THE SECOND PLACE

Managerial Issue: The gentle CEO – gently penetrating the corporation – relentless in his penetration.

Managerial Lesson: Be relentless.

Managerial Warning: At the second stage of the Gentle (Penetrating) Time-Space, the CEO finds he must penetrate the heart of the corporate culture, its prejudices, its beliefs, and what makes it or does not make it tick. He must look for hidden enemies (people or principles).

Managerial Advice: The Superior CEO knows that:

Even though bad corporate beliefs may seem like harmless ideas, there usually are evil people behind these ideas, people who are well entrenched in the corporation.
He must use his tenacity as his main weapon to penetrate into the real source of these evil ideas, as well as into the evil people inside the corporation who generate these ideas.
Once he successfully penetrates both, then he must use the truth as his “weapon” to vanish these people and their ideas from the corporation.

This is a typical case of a corporation with a set of belief no longer in tune with the times. It is usually these sets of beliefs, which do more harm than even its competitors. It was a set of beliefs that hurt Apple Computers during its darkest days.

Investment advice: Invest.

NINE IN THE THIRD PLACE

Managerial Issue: The gentle CEO – gently penetrating the corporation – when to plan and when to execute the plan.

Managerial Lesson: Be balanced (reflection versus action).

Managerial Warning: At the third stage of the Gentle (Penetrating) Time-Space, the CEO finds that too much planning is as bad as no planning at all.

Managerial Advice: The Superior CEO knows that:

Once he has developed a plan in his mind, he must execute it at once.
Should he fail to act, the employees will perceive it as sign of weakness and he will lose their respect.
Must keep in mind at all times that it is the relentless and continuous action that gives gentleness its power.

There was an old idea that the Japanese took a long time in deciding but a brief time in executing while the Americans took a brief time in deciding and a long time in executing. It is a matter of being balanced between deciding and executing.

Investment advice: Do not invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The gentle CEO – gently penetrating the corporation – by combining the best qualities – humility and resolution.

Managerial Lesson: Be humble.

Managerial Warning: At the fourth stage of the Gentle (Penetrating) Time-Space, the CEO “combines innate modesty with energetic action”,

Managerial Advice: The Superior CEO knows that when he combines even the most basic qualities mentioned in the beginning of the Hexagram he will successfully accomplish the task of penetrating the corporation. However, he does not have to have them all. Humility alone would do it.

Investment advice: Do not invest.

NINE IN THE FIFTH PLACE

Managerial Issue: The gentle CEO – gently penetrating the corporation – by applying the law of cause and effect.

Managerial Lesson: Be steadfast/correct.

Managerial Warning: At the fifth stage of the Gentle (Penetrating) Time-Space, the CEO must realize the importance of cause and effect (follow up).

Managerial Advice: The Superior CEO knows that:

Every action generates a reaction, which in turn generates another action and so forth in a never-ending chain.
Once the gentle CEO executes a plan, he must be ready and willing to make adjustments.
No plan is so perfect that it takes into consideration all possible future reactions; however, the CEO can make adjustments as they become necessary.
These continuous adjustments require the CEO execute his plans with the “weapons” mentioned in the beginning of the Hexagram.
When he makes a change, he should exercise:
- Gentleness to execute the change, then
- Patience to wait for the plan to take shape, then
- Humility to realize his plan has errors in it, then
- Tenacity to seek the truth above all, then
- A focused mind to stick to the issues only, then
- Communication skills to make everyone aware of the changes, then
- Gentleness to execute the changes, and
  
  Repeat in a never ending cycle.

Investment advice: Invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The gentle CEO – gently penetrating the corporation – being gentle but lacking the strength to gently penetrate the corporation.

Managerial Lesson: Be wise.

Managerial Warning: At the sixth stage of the Gentle (Penetrating) Time-Space, the CEO finds at times even his gentleness will not allow him to penetrate the corporation.

Managerial Advice: The Superior CEO knows that:

There will be times when even his gentleness and tenacity will bear no effect on the corporation.
When the CEO lacks the mandate of Heaven and fate is not in his favor, even for the CEO who holds all the weapons and qualities required in this Hexagram, it is best not to get involved with this corporation.
In such cases it is best to just let the rotten corporate culture collapse on its own weight, to let evil touch bottom, so that he might eventually work on what is left.

Investment advice: Do not invest.

28 PREPONDERANCE OF THE GREAT

MANAGERIAL ISSUE:

The CEO – managing the Preponderance of the Great – a risky corporate imbalance or dependence on a single item for its success.

Hexagram 28 is one of the Hexagrams, which are part of the lesser side of the YIN. We can picture it in terms of a clock with the YANG force going down from the right hand side from 12 to 3 to 6 and the YIN force going up on the left hand side from 6 to 9 to 12. We can place this corporation between 9 and 12.

The Preponderance of the Great Time-Space refers to a very successful corporation, which is going through extraordinary times; however, its success has been dependent upon a particular item – whether it is in the form of particular product, supplier, customer or employees. Such extraordinary times require the CEO make extraordinary changes to keep it profitable.

These are very favorable times for the corporation because they are due to cyclicality (Heaven sent). It would appear that nothing could stop the corporation. However, these favorable times tend to be short lived. The situation is very dangerous, so much so that if left unattended it will definitely lead to the collapse of the corporation.

MANAGERIAL LESSON:

The Superior CEO knows that:

To rely on any particular item for the corporation’s success would create a dangerous dependence on such item.
The key to reducing this risk lies on his ability to manage the diversification process because the times require the CEO make substantial changes in the corporation.
The diversification should be made cautiously – not in a revolutionary way but rather in a progressive and gradual way – by gentle penetration.
The times of the Preponderance of the Great are temporary. He must diversify to ensure the corporation’s survival.

The Superior CEO knows he has excellent chances for success provided he:

Diversifies the responsibility. This would ensure the corporation’s success would not rest on the shoulder of a single group, product, customers, or supplier. For instance, in the case when the corporation’s success is due to a particular group of employees, the CEO must get Human Resources to work as quickly as possible to redistribute the responsibility and create a more balanced situation. This would strengthen all the employees’ position in the corporation and avoid its collapse.

Is firm when making changes. The Superior CEO does not stop making changes for fear his actions would revert in a hostile manner against the corporation. For instance, in the case the corporation’s success is due to a particular group of employees, the CEO should not fear a strike or a takeover when reassigning jobs because this small group of employees does not have much power not matter how successful they have been.

Works to strengthen the corporation’s greatest weakness. For instance, in the case a small group of employees is responsible for the success of the corporation; the greatest weakness lies on its lower ranking employees and its top management, while the greatest strength lies in the middle where all the competent employees are. He knows this middle has all the characteristics to continue to keep this corporation a winning one; nevertheless, the same cannot be said of the employees of a lower level, and there should be doubts about the capacity of the superiors.

Uses incentives rather than force when making changes. In the case a small group of employees is responsible for the success of the corporation the Superior CEO knows that these same employees he has to reassign are the ones who are responsible for the success of the corporation. Thus he is very careful in how he sells the idea of reassigning the people on whom he relies for his own success. The Superior does not use force when changing what makes the corporation successful. This is particularly true when dealing with intelligent employees. The answer lies in appreciation, communication and rewards. This is time for the carrot not the stick.

Realizes the solution does not lie on the sudden elimination of the incompetent employees, because it could give way to the complete collapse of the middle management. The way out is to transform the inferior levels and to convert them into a working team, but not by force but by creating the necessary conditions for the best to remain, and by default or by lack of rewards to eliminate the incompetent. This will bring the best men to the corporation and in time will strengthen the corporate structure.

Maintains a positive attitude – to stand for his beliefs even if no one else will support him. The I CHING speaks of this attitude as one of a tree standing firm even if alone, and of joy rather than fear even if giving up the world.

INVESTMENT ADVICE:

For the investor, the Preponderance of the Great Time-Space is not the best of times to invest. How could it be if there is too much weight in the middle and a lack of corporate balance?

By itself (no lines) the Hexagram is relatively positive because it points to the possibility of success but provided one has somewhere to go.

PREPONDERANCE OF THE GREAT.

The ridgepole sags to the breaking point.

It furthers one to have somewhere to go.

Success.

The weight of the great is excessive. The load is too heavy for the strength of the supports. The ridgepole, on which the whole roof rests, sags to the breaking point, because its supporting ends are too weak for the load they bear. It is an exceptional time and situation; therefore extraordinary measures are demanded. It is necessary to find a way of transition as quickly as possible, and to take action. This promises success. For although the strong element is in excess, it is in the middle, that is, at the center of gravity, so that a revolution is not to be feared. Nothing is to be achieved by forcible measures.

The problem must be solved by gentle penetration to the meaning of the situation (as is suggested by the attribute of the inner trigram, Sun); then the change-over to other conditions will be successful. It demands real superiority; therefore the time when the great preponderates is a momentous time.

It presents one Good Fortune opportunity in the Fourth line. The second line presents a reasonable opportunity. The rest of the lines point to the inability of the CEO to manage the Preponderance of the Great.

THE LINES:

SIX IN THE FIRST PLACE

Managerial Issue: The CEO – managing the Preponderance of the Great – a risky corporate imbalance or dependence on a single item for its success – properly applying excessive caution.

Managerial Lesson: Be cautious.

Managerial Warning: At the first stage of the Preponderance of the Great Time-Space, the Superior CEO initiates the rebalancing (diversification) of the corporation to lower its dependence on a single item for its success.

Managerial Advice: The Superior CEO recognizes that at this first stage, he must apply extraordinary caution when managing through these extraordinary times. He knows extraordinary caution is the proper attitude even if it would appear to be too exaggerated. In the case a small group of employees is responsible for the success of the corporation; the Superior CEO will rebalance the corporation to protect it by providing training to the younger employees. He will do it with caution because of the extraordinary times the corporation is living under.

Investment Advice: Do not invest.

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing the preponderance of the great – a risky corporate imbalance or dependence on a single item for its success– wisely reaching out for the lower ranks.

Managerial Lesson: Be motivational.

Managerial Warning: At the second stage of the Preponderance of the Great Time-Space, the CEO takes the corporation through a time of “an extraordinary reanimation of the processes of growth.”

Managerial Advice: The Superior CEO places great emphasis in the education and stimulation of the corporation’s employees, especially the lower ranking ones. He understands the need for the more knowledgeable or capable employees to dedicate themselves to educate the less knowledgeable or capable to create a single winning team because the capable ones cannot do the job by themselves. The Superior CEO ensures the education program’s success and completion by compensating the more capable ones for their participation.

Investment Advice: Invest.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing the Preponderance of the Great – a risky corporate imbalance or dependence on a single item for its success – failing to listen.

Managerial Lesson: Be attentive/listen.

Managerial Warning: At the third stage of the Preponderance of the Great Time-Space, the CEO fails to listen to the warning of danger. He willfully plunges ahead in the rebalancing of the corporation. He and his top executives fail to pay attention to the needs or to the recommendations of the few employees who are making this corporation a success (those who have the Preponderance). Instead, he continues to rely on this group for the corporation’s success but without paying attention to their demands. The result is placing too much responsibility on the group to make the corporation a success while meeting them with an outright rejection and a complete lack of support. This excess of weigh will only lead to failure, and top management’s policies will fall by their own weigh.

Managerial Advice: The Superior CEO listens, particularly to those who are making the corporation a success. He recognizes merit even when he is rebalancing the corporation’s responsibilities.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the preponderance of the great – a risky corporate imbalance or dependence on a single item for its success – successfully reaching out to the lower ranks.

Managerial Lesson: Be friendly.

Managerial Warning: At the fourth stage of the Preponderance of the Great Time-Space, the CEO makes sure he has the corporation’s success in mind and not his own personal gain.

Managerial Advice: The Superior CEO uses a friendly attitude to win over the good will and the support of the groups not participating in the corporation’s success. This friendly attitude creates the right atmosphere for their education and their preparation for their future challenges. In this way he relieves pressure from the smaller group achieving success. The Superior CEO first wins the trust of those groups that have been left out and then gently persuades them to carry out their goals.

Investment Advice: Invest.

NINE IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the Preponderance of the Great – a risky corporate imbalance or dependence on a single item for its success – failing to reach the lower ranks, maintaining relations with the higher ranks only.

Managerial Lesson: Be balanced.

Managerial Warning: At the fifth stage of the Preponderance of the Great Time-Space, the CEO and his top management fail to win over the good will and the support of those groups not participating in the corporation’s success. He fails to both create the right atmosphere for their education and to relieve pressure from the smaller group responsible for the corporation’s success. This liaison between the not so capable CEO and a very small group of producers will create a lack of balance within the corporation.

Managerial Advice: The Superior CEO reaches out for the other group of producers, and establishes a relationship of trust with lower management and the lower ranking employees to persuade and educate them. He knows this would be very productive for the corporation.

Investment Advice: Do not invest.

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing the Preponderance of the Great – a risky corporate imbalance or dependence on a single item for its success– forcefully fixing the corporation’s imbalance.

Managerial Lesson: Be measured.

Managerial Warning: At the sixth stage of the Preponderance of the Great Time-Space, the CEO recognizes the corporation’s unusual imbalance and tries to force radical changes. He fails to listen to the other points of views.

Managerial Advice: The Superior CEO knows forced measures are not THE TAO – they show a lack of humility and only serve to inflate his ego. This is the beginning of the corporation’s downfall. The Superior CEO understands that even if his motives are noble in pushing his points of view to achieve success, those motives do not give him the right to humiliate the rest of the employees.

Investment Advice: Do not invest.

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Deere & Co DE under CEO John May

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