HEXAGRAM 26: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 26 - Ta Ch’u - The Taming Power of the Great

Above KEN KEEPING STILL, MOUNTAIN

Below CH'IEN THE CREATIVE, HEAVEN

The Creative is tamed by Ken, Keeping Still.

This produces great power,

a situation in contrast to that of the ninth hexagram, Hsiao Ch'u, THE TAMING POWER OF THE SMALL,

in which the Creative is tamed by the Gentle alone.

· There

· one weak line must tame five strong lines, but

· here

· four strong lines are restrained by two weak lines;

· in addition to a minister,

there is a prince, and

· the restraining power

therefore is far stronger.

The hexagram has a threefold meaning, expressing different aspects of the concept Holding firm.

1. Heaven within the mountain

gives the idea of holding firm in the sense of holding together;

2. the trigram Ken, which holds the trigram Ch'ien still,

gives the idea of holding firm in the sense of holding back;

3. the third idea is

that of holding firm in the sense of caring for and nourishing.

o This last is suggested by the fact that

a strong line at the top, which is the ruler of the hexagram,

is honored and tended as a sage.

o The third of these meanings also

attaches specifically to this strong line at the top,

which represents the sage.

THE JUDGMENT

THE TAMING POWER OF THE GREAT.

Perseverance furthers.

Not eating at home brings good fortune.

It furthers one to cross the great water.

· hold firmly to great creative powers and

· store them up, as set forth in this hexagram,

there is need of

a strong, clearheaded man who is honored by the ruler.

· The trigram Ch'ien points to strong creative power;

· Ken indicates firmness and truth.

Both point

· to light and clarity and

· to the daily renewal of character.

Only through such daily self-renewal

can a man continue at the height of his powers.

· Force of habit helps to keep order in quiet times; but

in periods when there is a great storing up of energy,

· everything depends on the power of the personality.

However, since the worthy are honored,

as in the case of the strong personality entrusted with leadership by the ruler,

it is an advantage

· not to eat at home but rather

· to earn one's bread by entering upon public office.

Such a man is in harmony with heaven;

therefore even great and difficult undertakings,

such as crossing the great water,

succeed.

THE IMAGE

Heaven within the mountain:

The image of THE TAMING POWER OF THE GREAT.

Thus the superior man acquaints himself with

· many sayings of antiquity And

· many deeds of the past,

In order to strengthen his character thereby.

Heaven within the mountain points to hidden treasures.

In the words and deeds of the past there lies hidden a treasure that men may use to

strengthen and elevate their own characters.

The way to study the past is

· not to confine oneself to mere knowledge of history

but, through application of this knowledge,

· to give actuality to the past.

THE LINES

Nine at the beginning means:

Danger is at hand.

It furthers one to desist.

A man wishes to make vigorous advance,

but circumstances present an obstacle.

He sees himself held back firmly.

· he should attempt to force an advance,

· it would lead him into misfortune.

Therefore it is better for him

· to compose himself and

· to wait until an outlet is offered for release of his stored up energies.

Nine in the second place means:

The axletrees are taken from the wagon.

Here advance is checked just as in the third line of THE TAMING POWER OF THE SMALL (9).

However,

· in the latter the restraining force is slight;

thus a conflict arises between

o the propulsive and

o the restraining movement,

as a result of which

the spokes fall out of the wagon wheels,

while

· here the restraining force is absolutely superior;

hence no struggle takes place.

One submits and removes the axletrees from the wagon –

in other words, contents himself with waiting.

In this way energy accumulates for a vigorous advance later on.

Nine in the third place means:

A good horse that follows others.

· Awareness of danger,

· With perseverance,

furthers.

Practice

· chariot driving and

· armed defense daily.

It furthers one to have somewhere to go.

The way opens; the hindrance has been cleared away.

A man

· is in contact with a strong will acting in the same direction as his own, and

· goes forward like one good horse following another.

But danger still threatens, and

· he must remain aware of it, or

· he will be robbed of his firmness.

Thus

he must acquire skill

· on the one hand in what will take him forward, and

· on the other in what will protect him against unforeseen attacks.

It is good in such a pass to have a goal toward which to strive.

Six in the fourth Place means:

The headboard of a young bull.

Great good fortune.

· This line and

· the one following it

are the two that tame the forward-pushing lower lines.

Before a bull's horns grow out,

a headboard is fastened to its forehead,

so that later when the horns appear

they cannot do harm.

A good way to restrain wild force is to forestall it.

By so doing

one achieves an easy and a great success.

0 Six in the fifth place means:

The tusk of a gelded boar.

Good fortune.

Here the restraining of the impetuous forward drive is achieved in an indirect way.

A boar's tusk is in itself dangerous, but if

· the boar's nature is altered,

· the tusk is no longer a menace.

Thus also where men are concerned,

wild force

· should not be combated directly; instead,

· its roots should be eradicated.

0 Nine at the top means:

One attains the way of heaven.

Success.

The time of obstruction is past.

The energy long dammed up by inhibition

· forces its way out and

· achieves great success.

This refers to a man

· who is honored by the ruler and

· whose principles now prevail and shape the world.

26 THE TAMING POWER OF THE GREAT

MANAGERIAL ISSUE:

The CEO – managing with the Taming Power of the Great – managing opposing forces (natural/supernatural) with the power of the Creative (Heaven).

There are two Hexagrams of THE TAMING POWER Time-Spaces:

1. THE TAMING POWER OF THE SMALL (Hexagram 9), which describes both:

The nature of the power of a really powerless CEO who is alone, and
How he manages the stronger executives around him through the use not of power but of his persuasion.

2. THE TAMING POWER OF THE GREAT (Hexagram 26) which describes both:

The nature of the power of a CEO who is accompanied by a capable executive and
How he manages the opposing forces through the application of the power of the Creative (Heaven). He is in a stronger position than the CEO in THE POWER OF THE SMALL because he is not alone and because he has the power of Heaven.

In THE TAMING POWER OF THE GREAT Time-Space, the CEO is forced to manage real supernatural forces threatening the corporation’s progress. These forces can be managed but not avoided because they are part of nature’s cycle.

The Superior CEO:

· Holds together the corporation by:

o Holding back the opposing forces with the power of Heaven, and

o Caring for and nourishing the customers and the employees.

This is a corporation with great characteristics under the leadership of a CEO who can bring forth the corporation’s strong creative powers with firmness and truth and who contributes with his personal light and clarity. He has the tenacity to easily reach his goals. Both, the CEO and the corporation complement each other - the corporate inner force as manifested through its creative capacity complements the CEO’s will power, which allows him to properly channel this inner force. They both need each other to be successful.

MANAGERIAL LESSON:

Heaven enables the Superior CEO to manage these natural and supernatural opposing forces by granting him the:

Capacity to:

· See a project through (tenacity).

· Recognize as well as to reward merit among his employees.

· Choose a good second in command with two basic characteristics:

o Qualities similar to his, such as a strong character, and

o Complementary personalities to set up a superior team, such as the case of an CEO teaming up with an excellent Executive VP.

· Keep together a financially strong corporation with a natural tendency to break down if left on its own.

· Encourage others to generate great ideas and make them come alive.

· Evaluate (continuously) his own self, his employees and his projects.

· Focus on international markets as well as domestic markets.

And

Wisdom to:

· Study the natural cycles.

· Learn to foresee future events that will affect the corporation.

· Learn the timing to apply his knowledge to make the most out of these cycles.

The CEO can get this wisdom by seriously:

· Studying the past, and

· Applying the lessons from it.

INVESTMENT ADVICE:

For the investor, THE TAMING POWER OF THE GREAT is a favorable Time-Space to invest.

By itself (without any moving lines) it carries the possibility of success because the CEO counts with the help of Heaven.

THE TAMING POWER OF THE GREAT.

Perseverance furthers.

Not eating at home brings good fortune.

It furthers one to cross the great water.

To hold firmly to great creative powers and store them up, as set forth in this hexagram, there is need of a strong, clearheaded man who is honored by the ruler. The trigram Ch'ien points to strong creative power; Ken indicates firmness and truth. Both point to light and clarity and to the daily renewal of character. Only through such daily self-renewal can a man continue at the height of his powers. Force of habit helps to keep order in quiet times; but in periods when there is a great storing up of energy, everything depends on the power of the personality. However, since the worthy are honored, as in the case of the strong personality entrusted with leadership by the ruler, it is an advantage not to eat at home but rather to earn one's bread by entering upon public office. Such a man is in harmony with heaven; therefore even great and difficult undertakings, such as crossing the great water, succeed.

The lines present three good possibilities of investing in the 4^th, 5^th and 6^th places.

The following cases are those of corporations under The Taming Power of the Great Time-Space:

· Intuitive Surgical, Inc. ISRG under CEO Gary S. Guthart

· Qiagen NV QGEN under CEO Peer M. Schatz

(Read at end of Hexagram)

THE LINES:

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing with the Taming Power of the Great – managing opposing forces (natural/supernatural) with the power of the Creative (Heaven). – failing at it.

Managerial Lesson: Be patient.

Managerial Warning: At the first stage of the Taming Power of the Great, the CEO will lead the corporation to its destruction if he tries to push the corporation’s creative strength while supernatural forces oppose it.

Managerial Advice: The Superior CEO is patient. He knows when to force the advance and when not to. In this case, he must wait until those external elements that oppose the corporation lose their strength. Eventually the corporation’s creativity will find another means to manifest itself.

Investment Advice: Do not invest.

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing with the Taming Power of the Great – managing opposing forces (natural/supernatural) with the power of the Creative (Heaven) – the forces get stronger.

Managerial Lesson: Be prudent.

Managerial Warning: At the second stage of the Taming Power of the Great, the opposing forces are so strong that it takes away the corporation’s momentum and leaves it practically standing still for such is the Taming Power of the Great. At this stage, the opposing forces are so strong there is no way the CEO could overcome them.

Managerial Advice: The Superior CEO is prudent. He realizes the opposing forces are too strong and removes any initiative that would frontally oppose them. He is patient and waits for the corporation’s creative forces to gather strength. Only when his corporation is strong enough will he be able to make a vigorous advance later on to overcome the external forces.

Investment Advice: Do not invest.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing with the Taming Power of the Great – managing opposing forces (natural/supernatural) with the power of the Creative (Heaven). – when the forces are weakening.

Managerial Lesson: Be skillful.

Managerial Warning: At the third stage of the Taming Power of the Great, the corporation’s positive forces are rising as the opposing forces are diminishing. Such rising opens up all kinds of opportunities for the corporation.

Managerial Advice: The Superior CEO takes advantage of this change and works together with these positive forces. He leads the corporation in a conservative manner - by keeping pace with the industry, but also by avoiding unnecessary risks in trying to outdo the industry. The Superior CEO realizes this change is only at its beginning phase and the rise of the positive forces is still at risk. He knows he must stay focused if he wants to overcome this risk. He must practice both: offense by aggressively pursuing his goals, and defense by preparing his corporation for unexpected dangers. He must stay focused on the corporate objectives and the plans to achieve them.

Investment Advice: Do not invest. The line is relatively positive but there are better alternatives.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing with the Taming Power of the Great – managing opposing forces (natural/supernatural) with the power of the Creative (Heaven). – making the best out of the corporation’s creative forces.

Managerial Lesson: Be focused.

Managerial Warning: At the fourth stage of the Taming Power of the Great, the corporation’s positive forces are continuing to gain strength. However, the CEO risks losing control of the sudden return of the corporate creative strength. Such strength will destroy the corporation if not properly channeled.

Managerial Advice: The Superior CEO forcefully takes away from this creative strength any excesses that might damage the corporation, and does it even before the creative force manifests itself in its fullness. The CEO uses only the best these forces have to offer to the corporation. Here, the secret to the Superior CEO’s success lies in his ability to have the creative genius of the corporation focusing on a few good projects only.

Investment Advice: Invest fully.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing with the Taming Power of the Great – managing opposing forces (natural/supernatural) with the power of the Creative (Heaven). – turning the creative forces from wild to useful.

Managerial Lesson: Be strategic.

Managerial Warning: At the fifth stage of the Taming Power of the Great, the CEO risks losing control of the impetuous forward drive.

Managerial Advice: The Superior CEO takes control of the corporation’s driving forces indirectly by using his able assistant, and by diplomatically taking away any excesses from the creative strength (as opposed to doing it more forcefully as in the previous line). He properly focuses the corporation’s creative forces, by first avoiding confrontation and second by performing a deep analysis of what causes the excesses.

Investment Advice: Invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing with the Taming Power of the Great – managing opposing forces (natural/supernatural) with the power of the Creative (Heaven). – the opposing forces are almost completely destroyed and the positive forces are displayed in full.

Managerial Lesson: Be humble.

Managerial Warning: At the sixth stage of the Taming Power of the Great, the CEO successfully overcomes the opposing forces. But it is in moments of triumph when pride could blind him.

Managerial Advice: The Superior CEO successfully leads the corporation to its fullest development by:

· Using his sense of timing to know when the positive forces are so strong that nothing can oppose him when implementing something really important.

· Focusing the corporation’s creative strength in a proper manner.

· Waiting patiently for the external cyclical forces, which oppose the corporation’s progress, to naturally extinguish themselves out.

· Establishing proper rules and setting high standards of excellence.

Such CEO will be an example of how to be a CEO.

Investment Advice: Invest.

MANAGERIAL CASES

Intuitive Surgical, Inc. ISRG under CEO Gary S. Guthart

Gary S. Guthart’s Performance: ROI= 7.58% Annualized Return= 4.67%

SPY performance ROI= 0.46% Annualized Return= 0.29%

Gary S. Guthart became CEO of Intuitive Surgical in January of 2010. Since then, he has done not much better that the SPY. Unfortunately, he drew lines two and three which do not represent Good Fortune (lines 4 and 5).

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 26 - Ta Ch’u - The Taming Power of the Great

The Creative is tamed by Ken, Keeping Still. This produces great power, a situation in contrast to that of the ninth hexagram, Hsiao Ch'u, THE TAMING POWER OF THE SMALL, in which the Creative is tamed by the Gentle alone. There one weak line must tame five strong lines, but here four strong lines are restrained by two weak lines; in addition to a minister, there is a prince, and the restraining power therefore is far stronger.

The hexagram has a threefold meaning, expressing different aspects of the concept Holding firm. Heaven within the mountain gives the idea of holding firm in the sense of holding together; the trigram Ken, which holds the trigram Ch'ien still, gives the idea of holding firm in the sense of holding back; the third idea is that of holding firm in the sense of caring for and nourishing. This last is suggested by the fact that a strong line at the top, which is the ruler of the hexagram, is honored and tended as a sage. The third of these meanings also attaches specifically to this strong line at the top, which represents the sage.

THE JUDGMENT

THE TAMING POWER OF THE GREAT.

Perseverance furthers.

Not eating at home brings good fortune.

It furthers one to cross the great water.

2) THE ADVICE

Heaven within the mountain:

The image of THE TAMING POWER OF THE GREAT.

Thus the superior man acquaints himself with many sayings of antiquity

And many deeds of the past, In order to strengthen his character thereby.

Heaven within the mountain points to hidden treasures. In the words and deeds of the past there lies hidden a treasure that men may use to strengthen and elevate their own characters. The way to study the past is not to confine oneself to mere knowledge of history but, through application of this knowledge, to give actuality to the past.

3) THE LINES:

Nine in the second place means:

The axletrees are taken from the wagon.

Here advance is checked just as in the third line of THE TAMING POWER OF THE SMALL (9). However, in the latter the restraining force is slight; thus a conflict arises between the propulsive and the restraining movement, as a result of which the spokes fall out of the wagon wheels, while here the restraining force is absolutely superior; hence no struggle takes place. One submits and removes the axletrees from the wagon - in other words, contents himself with waiting. In this way energy accumulates for a vigorous advance later on.

Nine in the third place means:

A good horse that follows others.

Awareness of danger,

With perseverance, furthers.

Practice chariot driving and armed defense daily.

It furthers one to have somewhere to go.

The way opens; the hindrance has been cleared away. A man is in contact with a strong will acting in the same direction as his own, and goes forward like one good horse following another. But danger still threatens, and he must remain aware of it, or he will be robbed of his firmness. Thus he must acquire skill on the one hand in what will take him forward, and on the other in what will protect him against unforeseen attacks. It is good in such a pass to have a goal toward which to strive.

4) THE MOVING HEXAGRAM

HEXAGRAM 27 – I - The Corners of the Mouth (Providing Nourishment)

This hexagram is a picture of an open mouth; above and below are the firm lines of the lips, and between them the opening. Starting with the mouth, through which we take food for nourishment, the thought leads to nourishment itself. Nourishment of oneself, specifically of the body, is represented in the three lower lines, while the three upper lines represent nourishment and care of others, in a higher, spiritual sense.

THE JUDGMENT

THE CORNERS OF THE MOUTH.

Perseverance brings good fortune.

Pay heed to the providing of nourishment

And to what a man seeks

To fill his own mouth with.

In bestowing care and nourishment, it is important that the right people should be taken care of and that we should attend to our own nourishment in the right way. If we wish to know what anyone is like, we have only to observe on whom he bestows his care and what sides of his own nature he cultivates and nourishes. Nature nourishes all creatures. The great man fosters and takes care of superior men, in order to take care of all men through them.

Mencius says about this:

If we wish to know whether anyone is superior or not, we need only observe what part of his being he regards as especially important. The body has superior and inferior, important and unimportant parts. We must not injure important parts for the sake of the unimportant, nor must we injure the superior parts for the sake of the inferior. He who cultivates the inferior parts of his nature is an inferior man. He who cultivates the superior parts of his nature is a superior man. 1

THE IMAGE

At the foot of the mountain, thunder: The image of PROVIDING NOURISHMENT.

Thus the superior man is careful of his words

And temperate in eating and drinking.

"God comes forth in the sign of the Arousing" 2: when in the spring the life forces stir again, all things come into being anew.

"He brings to perfection in the sign of Keeping Still": thus in the early spring, when the seeds fall to earth, all things are made ready.

This is an image of providing nourishment through movement and tranquility. The superior man takes it as a pattern for the nourishment and cultivation of his character. Words are a movement going from within outward. Eating and drinking are movements from without inward. Both kinds of movement can be modified by tranquility. For tranquility keeps the words that come out of the mouth from exceeding proper measure, and keeps the food that goes into the mouth from exceeding its proper measure. Thus character is cultivated.

Qiagen NV QGEN under CEO Peer M. Schatz

Peer M. Schatz’s Performance: ROI= 15.06% Annualized Return= 1.86%

SPY performance ROI= (0.59%) Annualized Return= (0.08%)

Peer M. Schatz became CEO of Qiagen on January 1, 2004. Since then, he has outperformed the SPY. He drew no positive lines (Good Fortune) so the Judgment applies:

Perseverance furthers. Not eating at home brings good fortune. It furthers one to cross the great water.

Not eating at home means to earn one's bread by entering upon public office. Does this mean the Qiagen should provide services to the government?

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

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 the focusing point.

Perseverance furthers.

Not eating at home brings good fortune.

It furthers one to cross the great water.