Boeing BA under CEO Dave Calhoun

 

HEXAGRAM 21 – Shih Ho – Biting Through

Above    LI    THE CLINGING, FIRE

Below    CHEN    THE AROIUSING, THUNDER

This hexagram represents an open mouth (cf. hexagram 27)

with an obstruction (in the fourth place) between the teeth.

As a result the lips cannot meet.

To bring them together one must bite energetically through the obstacle.

Since the hexagram is made up of the trigrams for thunder and for lightning,

it indicates how obstacles are forcibly removed in nature.

• Energetic biting through overcomes the obstacle that prevents joining of the lips;
  
• the storm with its thunder and lightning overcomes the disturbing tension in nature.
  
• Recourse to law and penalties overcomes the disturbances of harmonious social life
  

  caused by
  

  • criminals and
    
  • slanderers.
    

The theme of this hexagram is a criminal lawsuit,

in contradistinction to that of Sung, CONFLICT (6), which refers to civil suits.

THE JUDGMENT

BITING THROUGH has success.

It is favorable to let justice be administered.

When an obstacle to union arises,

energetic biting through brings success.

This is true in all situations.

Whenever unity cannot be established,

the obstruction is due to a talebearer and traitor who is interfering and blocking the way.

To prevent permanent injury,

vigorous measures must be taken at once.

Deliberate obstruction of this sort does not vanish of its own accord.

Judgment and punishment are required to deter or obviate it.

However,

it is important to proceed in the right way.

The hexagram combines

• Li, clarity, and
  
• Chen, excitement.
  

• Li is yielding,
  
• Chen is hard.
  

Unqualified hardness and excitement

would be too violent in meting out punishment;

unqualified clarity and gentleness

would be too weak.

The two together create the just measure.

It is of moment that

• the man who makes the decisions (represented by the fifth line) is gentle by nature,
  

while

• he commands respect by his conduct in his position.
  

THE IMAGE

Thunder and lightning: The image Of BITING THROUGH.

Thus

the kings of former times

made firm the laws

Through clearly defined penalties.

Penalties are the individual applications of the law.

The laws specify the penalties.

• Clarity prevails when mild and severe penalties are clearly differentiated,
  
• according to the nature of the crimes.
  
  • This is symbolized by the clarity of lightning.
    
• The law is strengthened by a just application of penalties.
  
  • This is symbolized by the terror of thunder.
    

This clarity and severity have the effect of instilling respect;

it is not that the penalties are ends in themselves.

• The obstructions in the social life of man increase when there is
  
  • lack of clarity in the penal codes and
    
  • slackness in executing them.
    
• The only way to strengthen the law is
  
  • to make it clear and
    
  • to make penalties certain and swift.
    

THE LINES:

Nine at the beginning means:

His feet are fastened in the stocks,

So that his toes disappear.

No blame.

If a sentence is imposed the first time a man attempts to do wrong,

the penalty is a mild one.

Only the toes are put in the stocks.

This prevents him from sinning further and

thus he becomes free of blame.

It is a warning to halt in time on the path of evil.

Nine in the fourth place means:

• Bites on dried gristly meat.
  
• Receives metal arrows.
  

It furthers one

• to be mindful of difficulties And
  
• to be persevering.
  

Good fortune.

• There are great obstacles to be overcome,
  
• powerful opponents are to be punished.
  

Though this is arduous, the effort succeeds.

But it is necessary to be

• hard as metal and
  
• straight as an arrow
  

to surmount the difficulties.

If one

• knows these difficulties and
  
• remains persevering,
  

he attains good fortune.

The difficult task is achieved in the end.

Nine at the top means:

His neck is fastened in the wooden cangue,

So that his ears disappear.

Misfortune.

In contrast to the first line,

this line refers to a man who is incorrigible.

• His punishment is the wooden cangue, and
  
• his ears disappear under it-that is to say, he is deaf to warnings.
  

This obstinacy leads to misfortune.2

1. Apart from the meaning of the hexagram as a whole, the single lines are explained as follows: the persons represented by the first and the top line suffer punishment, the others inflict it (see the corresponding lines in hexagram 4, Meng, YOUTHFUL FOLLY).

2.    It should be noted here that there is an alternative interpretation of this hexagram, based on the idea, “Above, light (the sun); below, movement.”

in this interpretation

• the hexagram symbolizes a market below, full of movement, while the sun is shining in the sky above.
  
• The allusion to meat suggests that it is a food market.
  
• Gold and arrows are articles of trade.
  
• The disappearance of the nose means the vanishing of smell, that is, the person in question is not covetous.
  
• The idea of poison points to the dangers of wealth,
  
• and so on throughout.
  

Confucius says in regard to the nine at the beginning in this hexagram:

“The inferior man

• is not ashamed of unkindness and
  
• does not shrink from injustice.
  
• If no advantage beckons
  
  • he makes no effort.
    
• If he is not intimidated
  
  • he does not improve himself, but
    
• if he is made to behave correctly in small matters
  
  • he is careful in large ones.
    

This is fortunate for the inferior man.”

On the subject of the nine at the top Confucius says:

• “If good does not accumulate,
  
  • it is not enough to make a name for a man.
    
• If evil does not accumulate,
  
  • it is not strong enough to destroy a man.
    

Therefore

the inferior man thinks to himself,

• ‘Goodness in small things has no value,’
  
  • and so neglects it.
    
• He thinks, ‘Small sins do no harm,’
  
  • and so does not give them up.
    

Thus

• his sins accumulate until they can no longer be covered up, and
  
• his guilt becomes so great that it can no longer be wiped out.”
  

 

 

MOVING HEXAGRAM

 

HEXAGRAM 02 – K’un – The Receptive

Above    K’UN    THE RECEPTIVE, EARTH

Below    K’UN    THE RECEPTIVE, EARTH

This hexagram is made up of broken lines only.

The broken line represents the dark, yielding, receptive primal power of yin.

The attribute of the hexagram is devotion;

its image is the earth.

It is the perfect complement of THE CREATIVE – the complement, not the opposite, 1

for the Receptive does not combat the Creative but complements it.

It represents

• nature in contrast to spirit,
  
• earth in contrast to heaven,
  
• space as against time,
  
• the female-maternal as against the male-paternal.
  

However, as applied to human affairs,

the principle of this complementary relationship is found

• not only in the relation between man and woman,
  
• but also in that between prince and minister and
  
• between father and son.
  

Indeed, even in the individual this duality appears in the coexistence of

• the spiritual world and
  
• the world of the senses.
  

But strictly speaking there is no real dualism here,

because there is a clearly defined hierarchic relationship between the two principles.

In itself of course the Receptive is just as important as the Creative,

but the attribute of devotion defines the place occupied by this primal power in relation to the Creative.

For the Receptive must be activated and led by the Creative;

then it is productive of good.

Only when it abandons this position and tries to stand as an equal side by side with the Creative,

does it become evil.

The result then is opposition to and struggle against the Creative,

which is productive of evil to both.

THE JUDGMENT

THE RECEPTIVE brings about sublime success,

Furthering through the perseverance of a mare.

If the superior man undertakes something and tries to lead,

He goes astray;

But if he follows, he finds guidance

It is favorable to find friends in the west and south,

To forego friends in the east and north.

Quiet perseverance brings good fortune.

The four fundamental aspects of the Creative –

“sublime success, furthering through perseverance”- are also attributed to the Receptive.

Here, however, the perseverance is more closely defined: it is that of a mare.

The Receptive connotes spatial reality in contrast to the spiritual potentiality of the Creative.

The potential becomes real and the spiritual becomes spatial through a specifically qualifying definition.

Thus the qualification, “of a mare,” is here added to the idea of perseverance.

The horse belongs to earth just as the dragon belongs to heaven.

Its tireless roaming over the plains is taken as a symbol of the vast expanse of the earth.

This is the symbol chosen because the mare combines

• the strength and swiftness of the horse with
  
• the gentleness and devotion of the cow.
  

Only because nature in its myriad forms corresponds with the myriad impulses of the Creative

can it make these impulses real.

Nature’s richness lies in its power to nourish all living things;

its greatness lies in its power to give them beauty and splendor.

Thus it prospers all that lives.

It is the Creative that begets things, but they are brought to birth by the Receptive.

Applied to human affairs, therefore,

what the hexagram indicates is action in conformity with the situation.

The person in question is not in an independent position, but is acting as an assistant.

This means that he must achieve something.

It is not his task to try to lead – that would only make him lose the way –

but to let him be led.

If he knows how to meet fate with an attitude of acceptance, he is sure to find the right guidance.

The superior man

• lets himself be guided;
  
• he does not go ahead blindly,
  
• but learns from the situation what is demanded of him and
  
• then follows this intimation from fate.
  

Since there is something to be accomplished,

we need friends and helpers in the hour of toil and effort,

once the ideas to be realized are firmly set.

The time of toil and effort is indicated by the west and the south,

for west and south symbolize the place where the Receptive works for the Creative,

as nature does in summer and autumn.

If in that situation one does not mobilize all one’s powers,

the work to be accomplished will not be done.

Hence to find friends there means to find guidance.

But in addition to the time of toil and effort, there is also a time of planning, and for this we need solitude.

The east symbolizes the place where a man receives orders from his master and

the north the place where he reports on what he has done.

At that time he must be alone and objective.

In this sacred hour

• he must do without companions so that
  
• the purity of the moment may not be spoiled by factional hates and favoritism.
  

THE IMAGE

The earth’s condition is receptive devotion.

Thus the superior man who has breadth of character

Carries the outer world.

Just as there is only one heaven, so too there is only one earth.

In the hexagram of the heaven the (doubling, of the trigram implies duration in time,

but in the hexagram of earth the doubling connotes the solidity and extension in space by virtue of which

the earth is able to carry and preserve all things that live and move upon it.

The earth in its devotion carries all things, good and evil, without exception.

In the same way the superior man gives to his character breadth, purity, and sustaining power,

so that he is able both

• to support and
  
• to bear with people and things.
  

 

 

 

21 BITING THROUGH

MANAGERIAL ISSUE:

The CEO – resolutely biting through/executing his punishment for the benefit of the corporation

Hexagram 21 focuses on the CEOs need to bite through or to be resolute in his efforts to reach his goals. Hexagram 21 has the shape of an open mouth ready to eat, with something hard between its teeth preventing it from closing shut. Under these circumstances, the I Ching recommends that the only way to accomplish the objective of eating is to bite through with all the strength and decision possible to break any obstacles. This points out that sometimes, the only out for the CEO is to apply brute force to overcome any obstacles.

MANAGERIAL LESSON:

The Superior CEO:

• When he finds something or someone (internal or external such as a suit) that opposes the union or consolidation of his corporation or threatens it in anyway, will ruthlessly eliminate it on the spot and will do it with all his might. The Superior CEO realizes that any problem in whatever form it might come, or anyone who undermines the main objective of the corporation is harmful for the corporation and should be eliminated.
  
• If the problem is a person, he is someone who will never agree with the CEO, and if he stays for long he will become a permanent threat to the corporation. By acting with all his strength and energy and making an example out of him, the CEO will be sending a very clear message for others to avoid that kind of behavior. The employees will understand that the CEO can act without fear and inflict damage when and if necessary. Nevertheless, the act of punishment should be justified or it would become an act of vengeance. In this way no one will fear but rather hate the CEO. The CEO’s strength consists in knowing he has the power.
  
• If the problem is external, he must attack it resolutely (e.g. a lawsuit with a battery of lawyers.)
  

• Makes sure everyone follows the rules of the corporation and punishes anyone who breaks them, regardless of rank. Law and compliance must have a real meaning. However, the Superior CEO differentiates between minor and major faults. He knows a CEO must have a very clear idea as to the difference between those acts that endanger the corporation and are very serious and those acts that do not endanger the corporation and should be considered minor transgressions. The Superior CEO also knows how to apply the necessary punishment according to the seriousness of the situation. The punishment must be clear, it must mark a clear difference between an act of just punishment and an act of vengeance, and it must be promptly executed. Only then will the employees follow and respect the rules.
  

The I CHING says: “Penalties are the individual applications of the law. The laws specify the penalties. Clarity prevails when mild and severe penalties are clearly differentiated, according to the nature of the crimes. This is symbolized by the clarity of lightning. The law is strengthened by a just application of penalties. This is symbolized by the terror of thunder. This clarity and severity have the effect of instilling respect; it is not that the penalties are ends in themselves. The obstructions in the social life of man increase when there is lack of clarity in the penal codes and slackness in executing them. The only way to strengthen the law is to make it clear and to make penalties certain and swift”.

INVESTMENT ADVICE:

For the investor, the Biting Through is in general an unfavorable Time-Space to invest.

By itself (no lines) the Hexagram is positive because it points to success provided the CEO knows how to administer justice.

BITING THROUGH has success.

It is favorable to let justice be administered.

When an obstacle to union arises, energetic biting through brings success. This is true in all situations. Whenever unity cannot be established, the obstruction is due to a talebearer and traitor who is interfering and blocking the way. To prevent permanent injury, vigorous measures must be taken at once. Deliberate obstruction of this sort does not vanish of its own accord. Judgment and punishment are required to deter or obviate it.

However, it is important to proceed in the right way. The hexagram combines Li, clarity, and Chen, excitement. Li is yielding, Chen is hard. Unqualified hardness and excitement would be too violent in meting out punishment; unqualified clarity and gentleness would be too weak. The two together create the just measure. It is of moment that the man who makes the decisions (represented by the fifth line) is gentle by nature, while he commands respect by his conduct in his position.

The lines are not very favorable. Only the fourth line points to Good Fortune. A CEO under the Biting Through Time-Space has to overcome obstacles with utmost determination. Under such difficult circumstances, most CEOs fail

THE LINES:

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – punishing a first time offender to correct behavior

Managerial Lesson: Be forgiving.

Managerial Warning: At the first stage of the Biting Through Time-Space, the I Ching warns the CEO he should be mild in punishing a first time offender.

Managerial Advice: The Superior CEO:

• Understands that punishment for a first time minor offender should be quick but light because the damage is light. By executing his punishment fairly and quickly, the Superior CEO manages to stop the damage before it gets worst. This is good for the corporation and for the guilty party.
  
• Is smart enough to turn defeats into victories and failures into success because he can still correct and save the guilty employee and eventually incorporate him into a managerial position. The application of the punishment will not end up in an immediate profitable situation, but will create the proper environment for harmony in the corporation.
  

What would have happened if Walter Wriston of Citibank had fired John Reed for his mistakes in issuing Visa cards to the wrong people? Or if Thomas Watson of IBM had fired the manager who had cost him $10 million (“How can I fire you? We just spent $10 million educating you”). The Superior CEO knows what Henry Ford would always say: “Failure is the opportunity to begin again more intelligently”

Investment Advice: Do not invest.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – incurring in excessive punishment.

Managerial Lesson: Be prudent.

Managerial Warning: At the second stage of the Biting Through Time-Space, the I Ching describes a CEO who finds a guilty party who is very much set in his ways of doing what he pleases and in getting away with it. The CEO over reacts in the punishment because he lets himself be carried away by his anger, deeply affecting his objectivity.

Managerial Advice: The Superior CEO never lets anger carry him away when applying punishments, even if people eventually find the punishment acceptable and no harm comes out of it.

However, the I CHING advises the CEO that in this particular case, it is better to go overboard in punishing rather than letting the guilty go unpunished.

Investment Advice: Do not invest.

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – punishing without authority

Managerial Lesson: Be credible.

Managerial Warning: At the third stage of the Biting Through Time-Space, the I Ching describes a CEO who finds the guilty party but does not have yet enough authority to apply the necessary punishment. This makes the guilty party, who during a long time has abused his position within the corporation, feel even stronger.

Managerial Advice: The I CHING advises the Board of Directors as well as the Superior CEO as follows:

• The Board of Directors must give the CEO sufficient power and authority together with the responsibilities, so that he may punish any employee as he sees best fit and
  
• The Superior CEO must apply the punishments and be resolute (Biting Through) in carrying them out even if he does not have sufficient authority. In this way he will reach his objective, obtain the favor of Heaven and succeed.
  

In this case, the CEO manages to apply the punishment and to hold firmly to his position. Even though he passes through very difficult moments because of the internal fight his punishment causes within the corporation, he applies it without harming the corporation or his own reputation. In the end, however, the CEO’s punishment is not beneficial for the corporation.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – punishing a very powerful group within the company

Managerial Lesson: Be resolute.

Managerial Warning: At the fourth stage of the Biting Through Time-Space, the I Ching warns the CEO he has to punish powerful opponents.

Managerial Advice: The Superior CEO:

• Applies the punishment even though it will be difficult to do so. And
  
• Keeps an inflexible position in applying the punishment even though it might take time. The Superior CEO knows he will eventually be proven right and save the corporation. The punishment is beneficial for the corporation.
  

Investment Advice: Invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – facing the danger of wavering in punishing the guilty

Managerial Lesson: Be persevering.

Managerial Warning: At the fifth stage of the Biting Through Time-Space, the I Ching describes a CEO who knows the guilty parties and their misdeeds; nevertheless, because of his natural tendency to be lenient, he fails to apply any punishment. The I Ching warns the CEO that to avoid applying punishments because of one’s own personal feelings will be bad managerial practice. A CEO is weak if he only emphasizes the positive and does not have the inner strength to apply any punishment. The lack of punishment is harmful to the corporation.

Managerial Advice: The Superior CEO is aware that when he assumes his leadership role, he assumes a heavy responsibility. Such heavy responsibility implies risks and dangers. If the CEO maintains awareness of such risks and dangers, he will avoid making mistakes. The Superior CEO is true, fair and impartial.

Investment Advice: Do not invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – deliberately failing to punish his own and worst offender

Managerial Lesson: Be impartial.

Managerial Warning: At the sixth stage of the Biting Through Time-Space, the I Ching describes an incorrigible CEO who refuses to listen when it comes to the guilt of some of his managers. He fails in both: his resoluteness to eliminate them on the spot, and his use of the strength the Biting Through Time-Space demands. No CEO is blinder than the CEO who refuses to see.

Managerial Advice: The Superior CEO recognizes that if he wants to be able to apply the necessary punishments to keep order, he must be willing to accept the guilt of others, especially of his closest aides.

Investment Advice: Do not invest.

02 – THE RECEPTIVE

MANAGERIAL ISSUE:

The CEO – managing the Receptive corporation – a corporation, which has the most perfect capacity to manufacture (produce), but lacks the capacity to design (create).

There are corporations that only design (Hexagram 1), there are corporations that only manufacture what others design (Hexagram 2) and there are corporations that both design and manufacture. In the case of Apple, for instance, it used to design and manufacture. As it matured and developed, Apple realized that it was best at designing and marketing rather than manufacturing. The proper conclusion was to outsource the manufacturing process, to look for a Receptive corporation.

Hexagram 2 practically describes an EMS corporation (electronic manufacturer services). If it were a country, it could be describing China now that it is receiving capital, ideas, management and raw materials. Or Japan after WW II. It describes a CEO whose corporation has the appropriate culture to carry out brilliant ideas, even though it might not necessarily have the adequate persons to generate those brilliant ideas. He will also find that this corporation has the necessary elements like financial strength, capacity for a quick project execution, and a very receptive corporate culture, which is open to any new idea and always willing to follow a good leader. This is a corporation, which easily molds itself to any changes in the market. Unfortunately, it is excellent when it molds itself to any external idea, but will fall into grave errors whenever it acts out of its own initiative.

Hexagram 2 might also represent the classical examples of those corporations which tried to imitate IBM or Intel. The more these corporations copy, the more successful they are, but the more they try to create their own products, the more errors they fall into. There are some corporations, which like to copy Mercedes Benz instead of trying to create their own designs. Even though there will always be a market for their products, they are smart enough to realize that their success lies in the fact that they are imitators, not creators.

MANAGERIAL LESSON:

The Superior CEO:

1. Recognizes that:
   

• There is a time to be Creative and there is a time to Receptive.
  
• During the Time Space of the Receptive, his role is to look for a Creative corporation and complement it rather than to compete with it.
  
• Both types of corporations (Creative as well as Receptive) are equally important.
  

1. Looks for guidance from the other corporations before making any move on his own. To move on his own would mean making grave mistakes such as turning tolerant competitors into enemies. Ironically, only then he will realize that his original competitors were willing to accept him as an imitator but not as a creator. This corporation needs a company to generate the ideas like in Hexagram 1 – the Creative. If the CEO could make a joint venture with a corporation that generates brilliant ideas, there would be no limits to its abilities to execute the projects. Or it could become an EMS or electronic manufacturer services and manufacture someone else’s products.
   

• The I Ching says: It is the perfect complement of THE CREATIVE – the complement, not the opposite, for the Receptive does not combat the Creative but complements it. It represents nature in contrast to spirit, earth in contrast to heaven, space as against time, the female-maternal as against the male-paternal. However, as applied to human affairs, the principle of this complementary relationship is found not only in the relation between man and woman, but also in that between prince and minister and between father and son. Indeed, even in the individual this duality appears in the coexistence of the spiritual world and the world of the senses.
  

1. Looks for guidance from his subordinates. This is a time for the CEO to be led rather than to lead, and to learn from both his subordinates as well as from the actual business conditions. Those same business conditions will point the way for him to follow. It is quite difficult for a CEO not to lead, after all that is what they are trained to do; however, he must be strong enough to allow others to lead him, and to allow the circumstances to lead him on the right path. Obviously, the CEO must rely only on his most trusted advisors and closest assistants to lead him, not just on anyone.
   

1. Finds a place where he can be alone to search and find the way the corporation should follow and to prepare his strategy carefully. Even though the CEO can let his closest advisors as well as the business circumstances show him the strategy, the decision must be his and his alone. No CEO can ever escape the loneliness of the decision making process. By taking the decision by himself and in a place where he can be alone, he makes sure none of his advisors influence him on the final decision making process. Because he allows his trusted advisors to show him the various strategies, every advisor will want to influence him on accepting their own personal advice. By retiring to be alone, the CEO can choose without the least emotions, lest he becomes biased towards a particular advisor on the right path to follow.
   

INVESTMENT ADVICE:

For the investor, the Receptive represents in general terms a favorable Time-Space to invest.

Investing under the Receptive Time-Space is good only for the long-term investors. It is not for those who want quick profits. In general terms, this corporation is like a lot of fertile land which is worth buying only for the mere fact that any idea that is implanted would be like a seed which can generate high profits. As the fertile land, it symbolizes the effort behind the sowing and the reaping, and not a quick profit. It is definitely worth investing a small portion of our portfolio and to increment the amount as it becomes obvious that the right leader or the right idea has become present.

By itself (no lines), the Time-Space points to Success provided the CEO follows rather than leads.

THE JUDGMENT

THE RECEPTIVE brings about sublime success,

Furthering through the perseverance of a mare.

If the superior man undertakes something and tries to lead,

He goes astray;

But if he follows, he finds guidance

It is favorable to find friends in the west and south,

To forego friends in the east and north.

Quiet perseverance brings good fortune.

The lines, however, present the best investment opportunity in the fifth place.

THE LINES

SIX IN THE FIRST PLACE

Managerial Issue: The CEO – managing the receptive corporation – in a downturn in corporate profits.

Managerial Lesson: Be alert/prepared.

Managerial Warning: At the first stage of the Receptive Time-Space, The CEO must prepare for two possible scenarios that could affect his corporation:

• A recession is approaching, and the corporation will have to struggle throughout these hard times. Or
  
• The corporation itself might be about to run into a period of a downturn in sales.
  

Both scenarios mean hard times ahead.

Managerial Advice: The Superior CEO realizes that periods of decay are natural and inevitable, and that it is possible to prepare for them once their first signs appear. This is what Intel’s CEO (Andy Grove) meant for always looking over his shoulder (Only the Paranoid Survive). For instance; the CEO could implement a number of counter measures to prepare for the period of decay by reducing the headcount or inventory, or by launching a new marketing effort, or introducing a new product line.

The I CHING says: “in life precautions can be taken by heeding the first signs of decay and checking them in time”.

Investment Advice: Do not invest.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing a receptive (non creative) but productive company.

Managerial Lesson: Be accommodating.

Managerial Warning: At the second stage of the Receptive Time-Space, the CEO’s policy should be: Follow, do not lead. The I CHING describes a very productive company with a strong market for its products, even though they are not very original. This could represent the line of Intel’s imitators, which might be productive, but must always follow Intel’s lead. Still, they have a strong market with large buyers.

Managerial Advice: The Superior CEO accepts the real nature of his corporation’s Receptive Time-Space, embraces it and makes the most of it.

The Receptive accommodates itself to the qualities of the Creative and makes them its own.

Therefore the Receptive has no need of a special purpose of its own, nor of any effort; yet everything turns out as it should.

Investment Advice: Do not invest.

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – managing the receptive corporation – in a stealth manner.

Managerial Lesson: Be modest.

Managerial Warning: At the third stage of the Receptive Time-Space, the CEO finds that if he is not humble enough to hide his good managerial qualities, he will draw the attention from the press as well as from his competitors. He could go to the press but only if needed, provided his aim is not to get public recognition for making this a successful corporation, but rather to make sure the corporation’s success will last for a long time. The CEO’s attitude is the right one. Some CEOs, such as the case of John Reed of Citicorp discovered to their chagrin that the more visible they became to the public and to his subordinates, the more opposition they generated from everyone, particularly the press.

Managerial Advice: The Superior CEO is smart enough to realize his errors quickly, to keep quiet and to maintain a low profile. One way to appreciate this attitude is by observing George Soros’ work with regards the introduction of capitalism and democracy into the communist world, or Warren Buffett’s desire to stay in Omaha far away from the maddening crowd.

• The wise man gladly leaves fame to others.
  
• He
  
  • does not seek to have credited to himself things that stand accomplished, but
    
  • hopes to release active forces; that is,
    
• he
  
  • completes his works in such a manner that they may bear fruit for the future.
    

Investment Advice: Do not invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the receptive corporation when he is about to make his move.

Managerial Lesson: Be reserved.

Managerial Warning: At the fourth stage of the Receptive Time-Space, the CEO realizes this is a time of danger for the corporation. The CEO is about to make his move – to transform his corporation from a Receptive corporation to a Creative corporation. The CEO faces a dilemma – if he is too assertive in implementing the transformation, he will generate opposition from the same corporations he is trying to challenge. If he is too soft, he will be perceived as a wimp. In both cases he will have the Board of Directors against him.

Managerial Advice: The Superior does not move during the time of danger, thus he avoids being either too assertive or too soft. He knows when to keep a low profile within the industry.

Investment Advice: Do not invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the receptive corporation by his own personal example.

Managerial Lesson: Be discreet.

Managerial Warning: At the fifth stage of the Receptive Time-Space, the CEO finds that he has been given great responsibilities and a leading position, yet he is also a corporate man and may not act without proper consultations from the Board of Directors.

Managerial Advice: The Superior CEO keeps his plans to himself to both: to not generate opposition, and to show his excellent leading qualities by his own calmness in front of desperate situations. The Superior CEO teaches by his own actions rather than by his words.

• A man’s genuineness and refinement
  
  • should not reveal themselves directly;
    
• They
  
  • should express themselves only indirectly as an effect from within.
    

Investment Advice: Invest fully. The I CHING says: “supreme good fortune”

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing the receptive corporation – as it tries to lead rather than follow.

Managerial Lesson: Be yielding/Be serving.

Managerial Warning: At the sixth stage of the Receptive Time-Space, the I Ching describes this line as the classic battle between opposing good and evil forces. The CEO should be true to his own nature when fighting this battle. This line is applicable to both the CEO as well as to the corporation:

• In the case of the CEO, he could be perceived to have changed the focus of his managerial style from that of a humble servant of the corporation’s interest to that of a self-serving tyrant. This attitude draws a considerable opposition against him, which brings harm to the CEO as well as to the corporation. And even though he will eventually receive a reinforced support from the Board of Directors, he cannot repair the damage done. And
  
• In the case of the corporation, such as the case of an electronic manufacturing service, it could be a situation where the receptive corporation which depends on the creative corporation is no longer willing to put up with being a receiver of ideas and tries to become a producer of ideas. This creates such anger amongst the creative corporations that they decide to destroy it. In the process, both the receptive corporation as well the creative corporations hurts themselves. Apple should prepare for what is coming because one day the Chinese companies that manufacture for Apple will one day try and replace Apple
  

Managerial Advice: The Superior CEO knows sometimes it is better to leave things as they are.

Investment Advice: Do not invest.

SIX IN ALL PLACES

Managerial Issue: The CEO – managing the receptive corporation – at a standstill.

Managerial Lesson: Be righteous.

Managerial Warning: This Receptive corporation could eventually become a Creative corporation but it might take too long. The corporation risks becoming stagnant and so will the value of its stock. Even though there might eventually be success, there are other more profitable alternatives.

Managerial Advice: The Superior CEO is righteous so that his corporation may survive.

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

The I CHING says: “While the top line of THE CREATIVE indicates titanic pride and forms a parallel to the Greek legend of Icarus, the top line Of THE RECEPTIVE presents a parallel to the myth of Lucifer’s rebellion against God, or to the battle between the powers of darkness and the gods of Valhalla, which ended with the Twilight of the Gods.”

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