HEXAGRAM 23: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 23 – Po - Splitting Apart

Above KEN KEEPING STILL, MOUNTAIN

Below K'UN THE RECEPTIVE, EARTH

The dark lines are about to

· mount upward and

· overthrow the last firm, light line

by exerting a disintegrating influence on it.

The inferior, dark forces overcome what is superior and strong,

· not by direct means,

· but by undermining it gradually and imperceptibly,

so that it finally collapses.

The lines of the hexagram

· present the image of a house, the top line being tile roof, and

because the roof is being shattered

· the house collapses.

The hexagram belongs to the ninth month (October-November).

The yin power

· pushes up ever more powerfully and

· is about to supplant the yang power altogether.

THE JUDGMENT

SPLITTING APART.

It does not further one

To go anywhere.

This pictures a time when inferior people

· are pushing forward and

· are about to crowd out the few remaining strong and superior men.

Under these circumstances, which are due to the time,

it is not favorable for the superior man to undertake anything.

The right behavior in such adverse times is to be deduced from

· the images and

· their attributes.

· The lower trigram stands for the earth,

o whose attributes are docility and devotion.

· The upper trigram stands for the mountain,

o whose attribute is stillness.

This suggests that one

· should submit to the bad time and

· remain quiet.

For it is a question not of man's doing but of time conditions,

which, according to the laws of heaven,

show an alternation of

· increase and decrease,

· fullness and emptiness.

It is impossible to counteract these conditions of the time.

Hence

it is not cowardice but wisdom to

· submit and

· avoid action.

THE IMAGE

The mountain rests on the earth: The image of SPLITTING APART.

Thus

those above can ensure their position

Only by giving generously to those below.

The mountain rests on the earth.

· When it is steep and narrow, lacking a broad base, it must topple over.

· Its position is strong only when it rises out of the earth

o broad and great,

o not proud and steep.

So likewise those who rule rest on the broad foundation of the people.

They too should be

· generous and

· benevolent,

like the earth that carries all.

· Then they will make their position

o as secure

o as a mountain is in its tranquility.

THE LINES

Six at the beginning means:

The leg of the bed is split.

Those who persevere are destroyed.

Misfortune.

Inferior people

· are on the rise and

· stealthily begin their destructive burrowing from below

in order to undermine the place where the superior man rests.

Those followers of the ruler who remain loyal are destroyed by

· slander and

· intrigue.

The situation bodes disaster,

yet there is nothing to do but wait.

Six in the second place means:

The bed is split at the edge.

Those who persevere are destroyed.

Misfortune.

The power of the inferior people is growing.

The danger draws close to one's person;

· already there are clear indications, and

· rest is disturbed.

Moreover, in this dangerous situation

one is as yet without help or friendly advances from above or below.

Extreme caution is necessary in this isolation.

One must

· adjust to the time and

· promptly avoid the danger.

Stubborn perseverance in maintaining one's standpoint

would lead to do a downfall.

Six in the third place means:

He splits with them. No blame.

An individual finds himself in an evil environment to which

he is committed by external ties.

But

· he has an inner relationship with a superior man, and through this

· he attains the stability to free himself from the way of the inferior people around him.

This brings him into opposition to them of course, but that is not wrong.

Six in the fourth place means:

The bed is split up to the skin.

Misfortune.

Here the disaster affects

· not only the resting place

· but even the occupant.

No warning or other comment is added.

Misfortune has reached its peak:

it can no longer be warded off.

Six in the fifth place means:

A shoal of fishes.

Favor comes through the court ladies.

Everything acts to further.

Here, in immediate proximity to the strong, light-giving principle at the top,

the nature of the dark force undergoes a change.

It no longer opposes the strong principle by means of intrigues

but submits to its guidance.

Indeed, as the head of the other weak lines,

it leads all of these to the strong line,

just as

a princess

· leads her maids-in-waiting like a shoal of fishes to her husband and thus

· gains his favor.

Inasmuch as

· the lower element thus voluntarily places itself under the higher,

o it attains happiness and

o the higher also receives its clue.

Therefore all goes well.

0 Nine at the top means:

There is a large fruit still uneaten.

· The superior man receives a carriage.

· The house of the inferior man is split apart.

Here the splitting apart reaches its end.

When misfortune has spent itself, better times return.

The seed of the good remains and

it is just when

the fruit falls to the ground that

food sprouts anew from its seed.

The superior man again attains

influence and

effectiveness.

He is supported by public opinion as if in a carriage.

But the inferior man's wickedness is visited upon himself.

His house is split apart.

A law of nature is at work here.

Evil is not destructive to the good alone but inevitably destroys itself as well.

For evil, which lives solely by negation,

cannot continue to exist on its own strength alone.

The inferior man himself fares best when held under control by a superior man.

23 SPLITTING APART

MANAGERIAL ISSUE:

The CEO – managing the corporation’s splitting apart

Hexagram 23 focuses on the CEO’s willpower to hold the corporation almost all by himself.

The I Ching draws a Hexagram of five YIN lines (broken lines) at the bottom and only one YANG line (whole line) at the top, forming the shape of a structure of a house, which is about to collapse.

Here we have the classic fight between good and evil. The CEO is surrounded by a group of inferior executives (the five Yin lines at the bottom), who significantly outnumber the CEO and his group of a few Superior executives (the only Yang line on top). The negative forces, which are brought about by the inferior executives is too strong for the Superior CEO and his group. The end result will be an inevitable collapse.

This is a matter of seasonality and beyond the Superior CEO’s powers to stop it. No CEO can overcome these circumstances. The strategy of the inferior executives is not one of open warfare but rather the typical weapons of the cowards – constantly conspire, speak evil, heap lies, create uncertainty, and the usual undermining of the Superior CEO. Eventually, however, these inferior executives will self-destruct for such is the fate of evil and ignorance. That is why the Superior CEO is patient and waits until their destruction takes place. Their evil tower will collapse taking with it the rest of the inferior executives because its administrative bases are corrupt.

What makes their thinking so destructive? NEGATION (denial) of the facts. A policy so destructive that not only can destroy a corporation but the inferior executives as well.

· The I Ching says: “Evil is not destructive to the good alone but inevitably destroys itself as well. For evil, which lives solely by negation, cannot continue to exist on its own strength alone. The inferior man himself fares best when held under control by a superior man.”

MANAGERIAL LESSON:

The Superior CEO:

1. Accepts the corporation is on the YIN or dark side of the cycle.

2. Realizes:

This is a matter of seasonality and has nothing to do with him personally.
The seasonality has changed from increase to decrease.
Acceptance of the inevitability of the cycles is not an act of cowardice but rather of wisdom.
The start of new projects must be avoided.
Evil self-destructs – he will accelerate its destruction if he accepts the law of seasonality rather than fight it.
He must face the inferior executives with dignity.
He must be kind and very generous with all his employees.
Prepare for better times to arrive.

INVESTMENT ADVICE:

For the investor, the Splitting Apart is in general an unfavorable Time-Space to invest. How could it be favorable when the corporation is Splitting Apart, when the inferior executives are conspiring against the CEO, and when the only way out for the Superior CEO is to wait until their evil influence in the corporation finally collapses?

By itself (no lines) the Hexagram is not positive because it warns the CEO not to act.

SPLITTING APART.

It does not further one

To go anywhere.

This pictures a time when inferior people are pushing forward and are about to crowd out the few remaining strong and superior men. Under these circumstances, which are due to the time, it is not favorable for the superior man to undertake anything.

The right behavior in such adverse times is to be deduced from the images and their attributes. The lower trigram stands for the earth, whose attributes are docility and devotion. The upper trigram stands for the mountain, whose attribute is stillness. This suggests that one should submit to the bad time and remain quiet. For it is a question not of man's doing but of time conditions, which, according to the laws of heaven, show an alternation of increase and decrease, fullness and emptiness. It is impossible to counteract these conditions of the time. Hence it is not cowardice but wisdom to submit and avoid action.

None of the lines point to Good Fortune. However, there might be an opportunity to invest in the fifth line at the end of the Splitting Apart

The following cases are those of corporations under the Splitting Apart Time-Space.

· Procter & Gamble Co. PG under CEO Robert A. McDonald

· Microchip Technology Inc. MCHP under CEO Steve Sanghi

THE LINES:

SIX IN THE FIRST PLACE

Managerial Issue: The CEO – managing the corporation’s splitting apart– waiting for the evil within the corporation to break it down.

Managerial Lesson: Be patient.

Managerial Warning: At the first stage of the Splitting Apart Time-Space, all the employees begin to feel the corporation’s corruption. The inferior executives are gaining power. They have joined together to destroy the CEO and, in particular, his few followers. They do this by slander, intrigue and by planting the seed of hatred amongst the employees.

Managerial Advice: The Superior CEO is always patient. He waits for the corporation to break down for he knows that:

· When a corporation starts to split apart or break down, all the employees will begin to feel how corrupted it really was, and

· Such realization on the part of all the employees is important for the future of the corporation.

Investment Advice: Do not invest.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing the corporation’s splitting apart– waiting for the Board of Directors to return the power to him.

Managerial Lesson: Be strategic.

Managerial Warning: At the second stage of the Splitting Apart Time-Space, the pace of the corporate breakdown accelerates as corruption becomes widespread. The inferior executives have reached more influential positions and are relentlessly attacking the CEO personally from a position of strength. The CEO has no one on whom to trust and fails to find the necessary support – neither the Board of Directors nor his employees will support him.

Managerial Advice: The Superior CEO keeps away from the struggle. He knows “Extreme caution is necessary in this isolation.” He adjusts to the present conditions and keeps away from dangerous situations such as stubbornly maintaining his points of view. He does not impose his strategies but rather allows the Board of Directors to approve the strategies of the inferior executives. He knows that in the end, their strategies will fail and the Board of Directors will eventually return the power to him.

Investment Advice: Do not invest.

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – managing the corporation’s splitting apart– waiting for the Superior executives to join him.

Managerial Lesson: Be brave.

Managerial Warning: At the third stage of the Splitting Apart Time-Space, the corporation breaks down to an even higher degree as the inferior executives take complete control of the corporation. However, the CEO manages to keep some influence because of the strong support and backing he receives from external advisors. They encourage him to stay and fight within the corporation.

Managerial Advice: The Superior CEO will face the evil now that it is already present because he is certain it cannot last forever. Furthermore, he knows that, once the inferior executives fall, all the superior executives left will join him.

Investment Advice: Do not invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the corporation’s splitting apart– bracing for the corporation’s complete breakdown.

Managerial Lesson: Be longsuffering.

Managerial Warning: At the fourth stage of the Splitting Apart Time-Space, the corporate breakdown reaches its highest point. The corporation’s inferior managers have reached their highest degree of influence and the corporation is ready to collapse. Not only will it damage the corporation but the inferior executives will destroy themselves.

Managerial Advice: The Superior CEO knows there is nothing to do but to wait.

Investment Advice: Do not invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the corporation’s splitting apart– preparing to lead as the Board of Directors returns the power to him

Managerial Lesson: Be prepared.

Managerial Warning: At the fifth stage of the Splitting Apart Time-Space, the breakdown cycle is about to slow down. The power of the inferior executives is diminishing as their plans almost brought the corporation to its collapse. They, however, become aware of their ignorance as well as of their lack of ability to manage the corporation, and desperately seek the Superior CEO to lead them. The leader of the inferior executives guides them back to the leadership of the Superior CEO.

Managerial Advice: The Superior CEO is noble and forgiving. He recognizes the transformation of the inferior executives and gladly accepts their request for him to lead them. He proceeds to bring back the corporation to better conditions.

Investment Advice: Do not invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing the corporation’s splitting apart– taking control of the corporation

Managerial Lesson: Be resolute.

Managerial Warning: At the sixth stage of the Splitting Apart Time-Space, the break down cycle is reversed. The inferior executives’ plans have completely failed due to their own misguided views. The CEO takes control of the corporation with the support of the Board of Directors and of the employees in general. The inferior executives are punished.

The I Ching’s final warning is for the inferior executives – who must learn that they not only can destroy the corporation but they can also destroy themselves. The only one who can save them is a Superior CEO.

· The I Ching says: “Evil is not destructive to the good alone but inevitably destroys itself as well. For evil, which lives solely by negation, cannot continue to exist on its own strength alone. The inferior man himself fares best when held under control by a superior man.”

Managerial Advice: The Superior CEO recognizes when the cycle has changed ending the Splitting Apart Time Space. He knows that “Misfortune has spent itself, better times return.” He moves quickly to gain “influence and effectiveness.” He recognizes that the law of seasonality will inevitably bring down the fall of evil.

Investment Advice: Do not invest.

MANAGERIAL CASES

Procter & Gamble Co. PG under CEO Robert A. McDonald

Robert McDonald’s Performance: ROI= (0.87%) Annualized Return= (0.55%)

SPY performance ROI= 5.96% Annualized Return= 3.71%

Robert McDonald became CEO of Procter & Gamble in July 2009. Since then, he has not been able to outperform the S&P 500. He will encounter very difficult conditions as he deals with the Splitting Apart Time-Space.

The Splitting Apart Time-Space is very negative. He must follow the I Ching’s advice: those above can ensure their position only by giving generously to those below.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 23 – Po - Splitting Apart

The dark lines are about to mount upward and overthrow the last firm, light line by exerting a disintegrating influence on it. The inferior, dark forces overcome what is superior and strong, not by direct means, but by undermining it gradually and imperceptibly, so that it finally collapses.

The lines of the hexagram present the image of a house, the top line being tile roof, and because the roof is being shattered the house collapses. The hexagram belongs to the ninth month (October-November). The yin power pushes up ever more powerfully and is about to supplant the yang power altogether.

THE JUDGMENT

SPLITTING APART.

It does not further one

To go anywhere.

2) THE ADVICE

The mountain rests on the earth: The image of SPLITTING APART.

Thus those above can ensure their position

Only by giving generously to those below.

The mountain rests on the earth. When it is steep and narrow, lacking a broad base, it must topple over. Its position is strong only when it rises out of the earth broad and great, not proud and steep. So likewise those who rule rest on the broad foundation of the people. They too should be generous and benevolent, like the earth that carries all. Then they will make their position as secure as a mountain is in its tranquility.

3) THE LINES:

There are no Moving Lines.

4) THE MOVING HEXAGRAM

There is no moving hexagram because there are no moving Lines. The Judgment becomes even more important.

Microchip Technology Inc. MCHP under CEO Steve Sanghi

Steve Sanghi’s Performance: ROI= 1,009.61% Annualized Return= 14.43%

SPY performance ROI= 156.36% Annualized Return= 5.41%

Steve Sanghi became CEO of Microchip Technology on October 1, 1993. Since then, his performance has been that of a Superior CEO.

When he first became CEO, he drew an excellent Time-Space with a positive Judgment and Line.

Steve Sanghi has been CEO of Microchip Technology for almost 20 years.

It is the usual procedure that we should ask the I Ching to comment on the future Time Space of the CEO and his corporation every 7 or 10 years.

The future would appear negative for Microchip technology. Past performance is no guarantee of future performance. The Universe is cyclical.

Microchip Technology Inc. MCHP under CEO Steve Sanghi

· (Before 2011)

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 60 – Chieh - Limitation

THE JUDGMENT

LIMITATION.

Success.

Galling limitation must not be persevered in.

Limitations are troublesome, but they are effective. If we live economically in normal times, we are prepared for times of want. To be sparing saves us from humiliation. Limitations are also indispensable in the regulation of world conditions. In nature there are fixed limits for summer and winter, day and night, and these limits give the year its meaning. In the same way, economy, by setting fixed limits upon expenditures, acts to preserve property and prevent injury to the people.

But in limitation we must observe due measure. If a man should seek to impose galling limitations upon his own nature, it would be injurious. And if he should go too far in imposing limitations on others, they would rebel. Therefore it is necessary to set limits even upon limitations

2) THE ADVICE

Water over lake: the image of LIMITATION.

Thus the superior man

Creates number and measure,

And examines the nature of virtue and correct conduct.

3) THE LINES:

Nine in the fifth place means:

Sweet limitation

brings good fortune.

Going

brings esteem.

The limitation must be carried out in the right way if it is to be effective. If we seek to impose restrictions on others only, while evading them ourselves, these restrictions will always be resented and will provoke resistance. If, however, a man in a leading position applies the limitation first to himself, demanding little from those associated with him, and with modest means manages to achieve something, good fortune is the result. Where such an example occurs, it meets with emulation, so that whatever is undertaken must succeed.

4) THE MOVING HEXAGRAM

HEXAGRAM 19 – Lin - Approach

THE JUDGMENT

APPROACH has

supreme success.

Perseverance furthers.

When the eighth month comes,

There will be misfortune.

The hexagram as a whole points to a time of joyous, hopeful progress. Spring is approaching. Joy and forbearance bring high and low nearer together. Success is certain. But we must work with determination and perseverance to make full use of the propitiousness of the time. And one thing more: spring does not last forever. In the eighth month the aspects are reversed. Then only two strong, light lines are left; these do not advance but are in retreat (see next hexagram). We must take heed of this change in good time. If we meet evil before it becomes reality - before it has even begun to stir - we can master it.

THE IMAGE

The earth above the lake: The image of APPROACH.

Thus the superior man is inexhaustible

In his will to teach,

And without limits

In his tolerance and protection of the people.

The earth borders upon the lake from above 1. This symbolizes the approach and condescension of the man of higher position to those beneath him. The two parts of the image indicate what his attitude toward these people will be. Just as the lake is inexhaustible in depth, so the sage is inexhaustible in his readiness to teach mankind, and just as the earth is boundlessly wide, sustaining and caring for all creatures on it, so the sage sustains and cares for all people and excludes no part of humanity.

Microchip Technology Inc. MCHP under CEO Steve Sanghi

· (Future after 2012)

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 23 – Po - Splitting Apart

THE JUDGMENT

SPLITTING APART.

It does not further one

To go anywhere.

2) THE ADVICE

The mountain rests on the earth: The image of SPLITTING APART.

Thus those above can ensure their position

Only by giving generously to those below.

3) THE LINES:

There are no Moving Lines.

4) THE MOVING HEXAGRAM

There is no moving hexagram because there are no moving Lines. The Judgment becomes even more important.