After Earnings, It’s Clear IBM’s Rometty Needs to Step Aside

After Earnings, It’s Clear IBM’s Rometty Needs to Step Aside

Why it took so long to realize Rometty never had the Mandate of Heaven?

When she was elected CEO, I asked the Oracle about the future of IBM under her leadership. It was clear even from the very beginning that she did not have the Mandate of Heaven.

Her Hexagram was Obstruction and her Moving Hexagram was Retreat

https://icic.com/site/?p=1750

39 OBSTRUCTION

MANGERIAL ISSUE:

The CEO – managing Obstruction.

Hexagram 39 refers to a corporate Time-Space where the corporation is obstructed by obstacles, particularly by two: an insurmountable mountain behind and a wide abyss in front (between a rock and a hard place). These obstacles place the corporation in danger which will appear in time; however the good news is the corporation can overcome them.

The Hexagram is about overcoming Obstructions.

MANAGERIAL LESSON:

The Superior CEO, to overcome the Obstruction must:

• Remain quiet like the mountain.
  

• View these times as times to retreat rather than to advance. The Superior CEO knows that when he faces impediments he cannot overcome directly by a frontal attack, it is wise, to stop any aggressive action and withdraw to a safe position.
  

• Look for men who hold similar views of retreating to a safer position, and place them under the leadership of a highly ethical and capable manager.
  

• Persevere in maintaining this policy. This perseverance will make the corporation profitable and will strengthen his character as a CEO.
  

• Look for errors both within himself as well as within the corporation, and correct them quickly. He must not look for errors outside the corporation neither should he look to blame someone else.
  

• Learn from the lesson. Temporary Obstructions are excellent for self-development for only when managing under the Obstruction Time-Space does a CEO learn the value of adversity (Obstruction).
  

INVESTMENT ADVICE:

For the investor, the Obstruction is not a favorable Time-Space to invest. How could an Obstruction Time Space be positive for investors?

By itself (no lines) there is the possibility of success provided the CEO pauses and retreats. But why would an investor want to invest under those circumstances?

OBSTRUCCION.

The southwest furthers.

The northeast does not further.

It furthers one to see the great man.

Perseverance brings good fortune.

The southwest is the region of retreat, the northeast that of advance. Here an individual is confronted by obstacles that cannot be overcome directly. In such a situation it is wise to pause in view of the danger and to retreat. However, this is merely a preparation for overcoming the obstructions. One must join forces with friends of like mind and put himself under the leadership of a man equal to the situation: then one will succeed in removing the obstacles. This requires the will to persevere just when one apparently must do something that leads away from his goal. This unswerving inner purpose brings good fortune in the end. An obstruction that lasts only for a time is useful for self-development. This is the value of adversity.

THE LINES

SIX IN THE FOURTH PLACE

Managerial Issue:    The CEO – managing Obstruction – joining forces to fight Obstruction.

Managerial Lesson: Be prepared.

Managerial Warning: At the fourth stage of the Obstruction Time-Space, the CEO risks removing the Obstruction “on his own strength and without the necessary preparations”.

Managerial Advice:

The Superior CEO is always thoroughly prepared. He never relies solely on his projections and possible scenarios because they might easily prove him wrong. Events could easily turn out for the worst. He withdraws in the face of danger and gathers around him those employees on whom he can trust for when he is ready to deal with these obstructions in the future.

Investment Advice: Do not invest

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing Obstruction – at a time of his retirement.

Managerial Lesson: Be unrelenting.

Managerial Warning: At the sixth stage of the Obstruction Time-Space, the CEO is close to retirement to enjoy the last years of his life and risks abandoning the corporation out of selfish motives.

Managerial Advice: The Superior CEO:

• Recognizes his first duty is to his corporation and its needs.
  
• Knows retirement is no longer an option to him.
  
• Takes charge of the corporation with all his strength.
  
• Applies his experience, inner strength and wisdom to create a great team to turn this corporation into a profitable operation once again.
  
• Views it as a mandate from Heaven to continue with his job.
  
• knows the mandate of Heaven will help him overcome the Obstruction.
  

Investment Advice: Invest. Look for better alternatives if possible.

When she was elected CEO, I recommended that the investors stay away from the stock

She is a talented and a smart executive, but she just lacked the Mandate

Now that she resigned and IBM has new CEO, comes the scary part – the new CEO does not have the Mandate of Heaven either

https://icic.com/site/?p=3245

I strongly recommend the investors stay away from IBM

12 – STANDSTILL (STAGNATION)

MANAGERIAL ISSUE:

The CEO – managing his corporation during periods of stagnation.

Hexagram 12 describes a period of stagnation or weakening of the corporation brought about by the return of the inferior managers and their evil managerial practices. This creates a situation where there is a wall between the Superior CEO that is still followed by a few remaining good executives and the newly arriving evil forces. The corporation suffers because there is a lack of:

• Communication.
  
• Relations.
  
• Sharing of ideas.
  
• Trust.
  
• Rewards based on merit.
  
• Growth.
  

This is autumn time for the corporation. The previous CEO has brought his corporation to its highest point in productivity and the price of the stock already reflects it. Nevertheless, it is at this very moment that a fight will begin for the leadership position within the corporation. This time around, however, a new inferior CEO and his incompetent followers will win. This is unfortunate because they, in turn, will implement their own corrupt practices and drive away the competent ones from their managerial positions. This creates a situation of internal conflict in which the few superior managers left in the corporation are forced to obey the newly implemented bad managerial practices.

This is a matter of nature’s seasonality and the Superior CEO must accept it as such. This Hexagram is the opposite of Hexagram 11.

MANAGERIAL LESSON:

The I CHING advises those few good managers left to:

• Hang in there, to hold on to their principles rather than to allow themselves to be bought by salary increases or bonuses,
  
• Avoid participating openly in the managerial directives of the inferior managers who presently control the corporation.
  
• Obey the present evil management as much as possible without betraying their convictions.
  
• Wait with aloofness until the times change and the superior managers return together with the prosperity.
  

INVESTMENT ADVICE:

This is the Hexagram of Steven Jobs from the time he was driven out of Apple until his inevitable return. He was always Apple’s true CEO.

1. In the first line – Jobs is driven out of Apple. He takes a few talented managers with him. Heaven tells him he has nothing to fear, thus the Oracle says:
   

• “Perseverance brings good fortune and success.
  

1. In the second line – those Apple employees who stay behind are forced to “bear and endure” the arrogance of the false CEOs. Jobs position is that of the great man:
   

• the great man calmly bears the consequences of the standstill.
  
• He does not mingle with the crowd of the inferior; that is not his place.
  
• he insures the success of his fundamental principles. by his willingness to suffer personally
  

1. In the third line: the false CEOs and the managers who ran Apple during Jobs absence “bear shame”:
   

• Inferior people who have risen to power illegitimately do not feel equal to the responsibility they have taken upon themselves.
  
• In their hearts they begin to be ashamed, although at first they do not show it outwardly.
  

1. In the fourth line: the tide turns. Heaven forces Jobs’ return.
   

• the man who is truly called to the task is favored by the conditions of the time, and
  
• all those of like mind will share in his blessing.
  

1. In the fifth line: Jobs is asked to run Apple. He is successful because he follows Confucius advice:
   

• Danger arises when a man feels secure in his position.
  
• Destruction threatens when a man seeks to preserve his worldly estate.
  
• Confusion develops when a man has put everything in order.
  

Therefore the superior man does not forget

• danger in his security, nor
  
• ruin when he is well established, nor
  
• confusion when his affairs are in order.
  

In this way he

• gains personal safety and
  
• is able to protect the empire.
  

1. In the sixth line: Jobs turns Apple around ending the period of the Standstill thanks to his obsessive and relentless creative drive.
   

• The time of disintegration, however, does not change back automatically to a condition of peace and prosperity;
  
• effort must be put forth in order to end it.
  
• This shows the creative attitude that man must take if the world is to be put in order.
  

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