HEXAGRAM 41: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 41 – Sun - Decrease

Above KEN KEEPING STILL, MOUNTAIN

Below TUI THE JOYOUS, LAKE

This hexagram represents

· a decrease of the lower trigram

· in favor of the upper,

because

· the third line, originally strong, has moved up to the top, and

· the top line, originally weak, has replaced it. 1

· What is below is decreased to the benefit of

· what is above.

This is out-and-out decrease.

· the foundations of a building are decreased in strength and

· the upper walls are strengthened,

the whole structure loses its stability.

Likewise,

· a decrease in the prosperity of the people

· in favor of the government

is out-and-out decrease.

And

the entire theme of the hexagram is directed to showing how

this shift of wealth can take place

without causing the sources of wealth in

· the nation and

· its lower classes

to fail.

THE JUDGMENT

DECREASE combined with sincerity

Brings about supreme good fortune

Without blame.

· One may be persevering in this.

It furthers one to undertake something.

How is this to be carried out?

· One may use two small bowls for the sacrifice.

Decrease does not under all circumstances mean something bad.

Increase and decrease come in their own time.

What matters here is

· to understand the time and

· not to try to cover up poverty with empty pretense.

If a time of scanty resource brings out an inner truth,

one must not feel ashamed of simplicity.

For simplicity is then the very thing needed to provide inner strength for further undertakings.

Indeed, there need be no concern if the outward beauty of the civilization,

even the elaboration of religious forms,

should have to suffer because of simplicity.

One must draw on the strength of the inner attitude to compensate for what is lacking in externals;

then the power of the content makes up for the simplicity of form.

There is no need of presenting false appearances to God.

Even with slender means, the sentiment of the heart can be expressed. 2

THE IMAGE

At the foot of the mountain, the lake: The image of DECREASE.

Thus the superior man

· controls his anger And

· restrains his instincts.

The lake at the foot of the mountain evaporates.

In this way

it decreases to the benefit of the mountain,

which is enriched by its moisture.

· The mountain stands as the symbol of a stubborn strength that can harden into anger.

· The lake is the symbol of unchecked gaiety

that can develop into passionate drives at the expense of the life forces.

Therefore decrease is necessary;

· anger must be decreased by keeping still,

· the instincts must be curbed by restriction.

By this decrease of the lower powers of the psyche,

the higher aspects of the soul are enriched.

THE LINES

Nine at the beginning means:

· Going quickly when one's tasks are finished Is without blame.

But

· one must reflect on how much one may decrease others.

· it is unselfish and good when a man,

after completing his own urgent tasks,

o uses his strength in the service of others, and

without bragging or making much of it,

o helps quickly where help is needed.

But

the man in a superior position who is thus aided

must weigh carefully how much he can accept

without doing the helpful servant or friend real harm.

Only where such delicacy of feeling exists

can one give oneself

· unconditionally and

· without hesitation.

Nine in the second place means:

Perseverance furthers.

To undertake something brings misfortune.

Without decreasing oneself,

One is able to bring increase to others.

· A high-minded self-awareness and

· a consistent seriousness with no forfeit of dignity

are necessary if a man wants to be of service to others.

He who throws himself away in order to do the bidding of a superior

· diminishes his own position

· without thereby giving lasting benefit to the other.

This is wrong.

· To render true service of lasting value to another,

· one must serve him without relinquishing oneself.

Six in the third place means:

· When three people journey together,

o Their number decreases by one.

· When one man journeys alone,

o He finds a companion.

When there are three people together, jealousy arises.

One of them will have to go.

A very close bond is possible only between two people.

But when

· one man is lonely,

· he is certain to find a companion who complements him.

Six in the fourth place means:

If a man decreases his faults,

It makes the other hasten to come and rejoice.

No blame.

A man's faults often prevent

even well-disposed people from coming closer to him.

His faults are sometimes reinforced

by the environment in which he lives.

But if in humility

· he can bring himself to the point of giving them up,

· he

o frees his well disposed friends from an inner pressure and

o causes them to approach the more quickly, and

there is mutual joy.

Six in the fifth place means:

Someone does indeed increase him.

Ten pairs of tortoises cannot oppose it.

Supreme good fortune.

If someone is marked out by fate for good fortune,

it comes without fail.

All oracles

– as for instance those that are read from the shells of tortoises –

are bound to concur in giving him favorable signs.

He need fear nothing,

because his luck is ordained from on high.

Nine at the top means:

If one is increased without depriving others,

There is no blame.

Perseverance brings good fortune.

It furthers one to undertake something.

One

· obtains servants But

· no longer has a separate home.

There are people who dispense blessings to the whole world.

Every increase in power that comes to them

· benefits the whole of mankind and therefore

· does not bring decrease to others.

Through

· perseverance and

· zealous work

a man

· wins success and

· finds helpers as they are needed.

But what he accomplishes

· is not a limited private advantage;

· it is

o a public good and

o available to everyone.

I . [The present hexagram and the following one, INCREASE, are regarded as formed by changes in T'ai, PEACE (11), and P'i, STANDSTILL (12), respectively. See P. 596.]

2. Cf. the story of the widow's mite in the Gospel of Luke.

41 DECREASE

MANAGERIAL ISSUE:

The CEO – managing the time for Decrease.

Hexagram 41 represents a Time-Space of:

1) A lack of balance in the overall corporate structure,

2) Instability - where the corporation has become an inverted pyramid which is top-heavy/weak-based or light at the bottom/heavy at the top,

3) “Poverty” where the CEO has to adjust the corporation by decreasing or shifting resources to rebalance the corporate assets or structure.

The Time-Space of the Decrease is a time for the CEO to:

1) Understand the Time of Decrease,

2) Not cover up “poverty” with empty pretense.

3) Be truthful about the actual Decrease corporate condition and accept it publicly,

4) Control his anger which is the result of his disappointment with the Decrease condition,

5) Implement programs based on simplicity – less costs, less expenses, less lavishness.

6) Strengthen the inner and weakens the outer – more moral and spiritual strength and less ornamental and superficial appearances,

7) Work on more product quality and less marketing,

8) Have faith the customers will support his efforts to manage the corporate Decrease provided the effort is sincere and the results become visible in the short term,

9) Decrease the negative, strengthens the positive,

10) Decrease expenses (particularly at the top) to save the corporation,

11) Decrease future grand projects and complete the ones in process.

12) Shift assets or resources from a profitable and well-run division, subsidiary or recently acquired corporation to the parent company; thus reducing the subsidiary’s managerial and financial power and increasing that of the parent company.

MANAGERIAL LESSON:

The Superior CEO:

1) Internalizes the Decrease. He:

a) Eliminates or weakens the lower aspects of himself such as, his material drives, anger, ambition, vanity and selfishness.

b) Strengthens the upper aspects of himself such as, his intellectual and spiritual capacity.

c) Patiently standstills and exercises his willpower and self-control.

d) Encourages the rest of the managers and employees to exercise this same attitude.

2) Accepts the Decrease Time-Space. He:

a) Views it as something natural, preordained and inevitable.

b) Will not resist it.

c) As examples of managing Decrease, he:

· Could recognize this is a time for decreasing the power of the employees and increasing the power of management.

· Could realize the corporation would be better off by adding to top management the best minds from the employees’ ranks. This will strengthen the corporation considerably.

3) Keeps focused on the positive side of the “decrease”. If we decrease the negative, we gain. If we take away the excess power given to a group, we gain in the balance, and if we decrease the expenditures, we increase our net profits.

4) Keeps the proper attitude – humility. In the case of a subsidiary-parent company relation, if his top managerial resources have weakened, he must look from within the subsidiaries, specifically from its pool of employees, to strengthen the parent company. If the CEO is humble and accepts this strategy, he will create the proper team to tackle the future. If on the contrary, the CEO proves arrogant, finds this idea too simple and elaborates a sophisticated plan to strengthen his own management without tapping the subsidiaries’ or local corporate’s resources; he will destroy the entire corporation.

5) Is sincere. In the case of a subsidiary-parent company relation, if he has to shift resources including the top leaders of the subsidiary to the top managerial position of the parent company, the Superior CEO does so only if he truly needs it and only if the individuals truly deserve it. In this way, the other employees of the subsidiary will perceive the changes as rewards and will look for future opportunities for themselves also. If on the contrary, the other employees of the subsidiary perceive the strategy as a political move to strengthen the parent corporation at the expense of the subsidiary, then the CEO would lose the respect of the subsidiary’s employees.

6) Is balanced. In the case of a subsidiary, the idea is to manage a shift of resources from the subsidiary to the parent company in such a way as to avoid a standstill of the subsidiary. That is, the CEO must figure how to keep the subsidiary going in spite of its loss of resources.

INVESTMENT ADVICE:

For the investor, the DECREASE Time Space tends to be positive. This is a time for Decreasing the corporation in all aspects but mainly in all that is negative, such as excessive expenses. Thus, the Decrease of the negative in a way is positive. DECREASE combined with sincerity Brings about supreme good fortune .

By itself (no lines) the Decrease Time-Space points to the possibility of success provided the CEO makes no pretense and does not try to hide the poverty (financial or otherwise) but rather does something to overcome it. Pericles comes to mind: “As for poverty, no one need be ashamed to admit it, the real shame is in not taking practical measures to escape from it”.

DECREASE combined with sincerity

Brings about supreme good fortune

Without blame.

One may be persevering in this.

It furthers one to undertake something.

How is this to be carried out?

One may use two small bowls for the sacrifice.

Decrease does not under all circumstances mean something bad. Increase and decrease come in their own time. What matters here is to understand the time and not to try to cover up poverty with empty pretense. If a time of scanty resource brings out an inner truth, one must not feel ashamed of simplicity. For simplicity is then the very thing needed to provide inner strength for further undertakings. Indeed, there need be no concern if the outward beauty of the civilization, even the elaboration of religious forms, should have to suffer because of simplicity. One must draw on the strength of the inner attitude to compensate for what is lacking in externals; then the power of the content makes up for the simplicity of form. There is no need of presenting false appearances to God. Even with slender means, the sentiment of the heart can be expressed.

However, when lines appear, there are four lines which are not positive, one line (the fifth) which is excellent (Supreme Good Fortune) but it is Heaven sent and has not much to do with the CEO’s abilities to manage the Decrease, and another (the sixth) which is also positive because of the CEOs correct attitude.

The following cases are those of corporations under the Decrease Time-Space:

· AutoNation Inc. AN under CEO Michael J. Jackson

(Read at the end of the Hexagram)

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: THE CEO – managing Decrease - weighing on the size of the Decrease without doing harm.

Managerial Lesson: Be careful.

Managerial Warning: At the first stage of the Decrease Time-Space, the CEO must weigh how much to shift from the strong to help the weak without irreparably harming the strong. In the case of a subsidiary–parent corporation, the subsidiary has done an excellent job at running its own operations and meeting its goals on record time without seeking merits and yet the CEO must carry out the Decrease process without harming it – for the sake of the weak parent. The question is, how many resources should the CEO shift from the subsidiary to the parent without weakening the subsidiary too much?

Managerial Advice: The Superior CEO weighs carefully the shifting of resources. In the case of a subsidiary–parent corporation, he first consults with the subsidiary’s management to show his sensitivity towards their opinions. If the exchange between the subsidiary and the parent is open and candid, the CEO will know just how many resources to shift without damaging the overall corporate structure.

Investment advice: Do not invest

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing Decrease – qualifying the Decrease.

Managerial Lesson: Be sensitive.

Managerial Warning: At the second stage of the Decrease Time-Space, the CEO faces the risk of doing serious harm when managing the Decrease. In the case of a subsidiary–parent corporation, the CEO encounters a manager of a subsidiary who wants to preserve his resources, who rightly believes that to give them up would harm both the subsidiary as well as the parent company. This is a case of “helping yourself before you can think of helping others”.

Managerial Advice: The Superior CEO listens and understands. He knows self-preservation is important, that no one should self-destruct for the sake of another. In the case of the subsidiary–parent corporation, the Superior CEO accepts the position of the subsidiary’s manager because it is the right thing to do at this time. For the moment, there is nothing to gain by shifting the resources from the subsidiary to the parent. This forces the CEO to look for resources somewhere else without any guarantee that he will find them.

Investment advice: Do not invest.

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – managing Decrease – Decreasing the elements of the corporation.

Managerial Lesson: Be decisive.

Managerial Warning: At the third stage of the Decrease Time-Space, the CEO must limit the number of elements (subsidiaries) within the corporation to improve the unity of the group.

Managerial Advice: The Superior CEO knows that too large a group of elements (subsidiaries) create jealousy amongst its managers; therefore, he Decreases them to the proper number so as to strengthen the unity of the corporation. In the case of the subsidiary–parent corporation, the Superior CEO, when shifting resources from the subsidiaries to the parent company, will preferably accesses the proper subsidiary only, rather than turning it into a contest with its inevitable rivalries among the managers of the various subsidiaries. In this way the merging of the resources will be faster and permanent

Investment advice: Do not invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing Decrease – Decreasing the corporation’s faults by changing the environment, reallocating recourses between the profitable subsidiary and the corrupt parent corporation

Managerial lesson: Be humble.

Managerial Warning: At the fourth stage of the Decrease Time-Space, the CEO risks losing the corporation’s friends (subsidiaries) by keeping the status quo. In the case of the subsidiary–parent corporation, the CEO might need the resources of the subsidiary to strengthen the parent company which itself is corrupt, full of inept managers who practice the wrong managerial strategies. Even the CEO himself might be tainted by this managerial attitude. The CEO’s dilemma lies in deciding what to do before transferring resources from the subsidiary and avoid running the risk those resources might be lost in the parent company.

Managerial Advice: The Superior CEO is humble and therefore he knows he must apply the Decrease to the top before he applies it to the bottom. In the case of the subsidiary–parent corporation, the Superior CEO first cleans up the parent company. He fires the inept managers and replaces them with the good managers from the subsidiary. He allows the implementation of the subsidiary’s managerial style in the parent company once the CEO changes his working environment. Then and only then, does he transfer additional resources from the subsidiary to the parent company. Only then will the managers of the subsidiary be willing to come over because they will not feel threatened by the managers working for the parent company. The matching of the resources will be very profitable. The Superior CEO first empties the bottle of bad water to fill it up with fresh water.

Investment advice: Do not invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing Decrease - at a time for fatefully ordained success – having the mandate of Heaven.

Managerial Lesson: Be resolute.

Managerial Warning: At the fifth stage of the Decrease Time-Space, the CEO encounters a fortuitous scenario when fate will bring about success and nothing can oppose it.

Managerial Advice: The Superior CEO recognizes and gratefully accepts the mandate of Heaven. When he counts with the mandate of Heaven; he is fearless in the execution of the Decrease of the negative aspects of the corporation.

This operation will be very profitable for the entire corporation.

Investment advice: Invest all you can.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing Decrease – bringing benefit to everyone and harm to none.

Managerial Lesson: Be just.

Managerial Warning: At the sixth stage of the Decrease Time-Space, the CEO is blessed in that he can execute the Decrease and actually bring Increase to everyone. In the case of the subsidiary–parent corporation, the CEO transfers resources from the subsidiary to the parent without weakening the subsidiary, because the transfer is limited, and because the CEO has been very successful in turning the parent company more profitable.

Managerial Advice: The Superior CEO finds friends and helpers by perseverance and hard work. In the case of the subsidiary–parent corporation, the CEO returns the resources back from the parent to the subsidiary so that the subsidiary may improve its balance sheet once again. He also transfers resources to the other subsidiaries to strengthen the entire corporate structure.

Here, the I Ching shows the CEO some light at the end of the tunnel. The I Ching tells us that the corporation is at its lowest point. From now on it can only increase its earnings. The I Ching compares Hexagram 41 Decrease which is the moment of the lowest earnings of the corporation and from which it can only increase its earnings with the following Hexagram 42 Increase which is the moment of the highest earnings of the corporation and from which it can only decrease its earnings.

Investment advice: Invest

MANAGERIAL CASES

AutoNation Inc. AN under CEO Michael J. Jackson

Michael J. Jacksons’ Performance: ROI= 215.93% Annualized Return= 10.05%

SPY’s Performance: ROI= ( 8.47%) Annualized Return= ( 0.73%)

Michael J. Jackson became CEO of AutoNation in September of 1999. Since then he has outperformed the SPY. However, because he has been CEO for more than a decade we have to ask once more for the future time space of the corporation.

His new Time Space as of 2011 is the Decrease with no moving lines. Thus, the Judgment applies completely to his corporation.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 41 – Sun - Decrease

This hexagram represents a decrease of the lower trigram in favor of the upper, because the third line, originally strong, has moved up to the top, and the top line, originally weak, has replaced it. 1 What is below is decreased to the benefit of what is above. This is out-and-out decrease. If the foundations of a building are decreased in strength and the upper walls are strengthened, the whole structure loses its stability. Likewise, a decrease in the prosperity of the people in favor of the government is out-and-out decrease. And the entire theme of the hexagram is directed to showing how this shift of wealth can take place without causing the sources of wealth in the nation and its lower classes to fail.

THE JUDGMENT

DECREASE combined with sincerity

Brings about supreme good fortune

Without blame.

One may be persevering in this.

It furthers one to undertake something.

How is this to be carried out?

One may use two small bowls for the sacrifice.

2) THE ADVICE

At the foot of the mountain, the lake: The image of DECREASE.

Thus the superior man controls his anger

And restrains his instincts.

The lake at the foot of the mountain evaporates. In this way it decreases to the benefit of the mountain, which is enriched by its moisture. The mountain stands as the symbol of a stubborn strength that can harden into anger. The lake is the symbol of unchecked gaiety that can develop into passionate drives at the expense of the life forces. Therefore decrease is necessary; anger must be decreased by keeping still, the instincts must be curbed by restriction. By this decrease of the lower powers of the psyche, the higher aspects of the soul are enriched.

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.

It is interesting to note that the Nuclear hexagram is excellent

NUCLEAR HEXAGRAM

HEXAGRAM 24 – Fu - Return (The Turning Point)

The idea of a turning point arises from the fact that after the dark lines have pushed all of the light lines upward and out of the hexagram, another light line enters the hexagram from below. The time of darkness is past. The winter solstice brings the victory of light. This hexagram is linked with the eleventh month, the month of the solstice (December-January).

THE JUDGMENT

RETURN. Success.

Going out and coming in without error.

Friends come without blame.

To and fro goes the way.

On the seventh day comes return.

It furthers one to have somewhere to go.

After a time of decay comes the turning point. The powerful light that has been banished returns. There is movement, but it is not brought about by force. The upper trigram K'un is characterized by devotion; thus the movement is natural, arising spontaneously. For this reason the transformation of the old becomes easy. The old is discarded and the new is introduced. Both measures accord with the time; therefore no harm results. Societies of people sharing the same views are formed. But since these groups come together in full public knowledge and are in harmony with the time, all selfish separatist tendencies are excluded, and no mistake is made.

The idea of RETURN is based on the course of nature. The movement is cyclic, and the course completes itself. Therefore it is not necessary to hasten anything artificially. Everything comes of itself at the appointed time. This is the meaning of heaven and earth.

All movements are accomplished in six stages, and the seventh brings return. Thus the Winter solstice, with which the decline of the year begins, comes in the seventh month after the summer solstice; so too sunrise comes in the seventh double hour after sunset. Therefore seven is the number of the young light, and it arises when six, the number of the great darkness, is increased by one. In this way the state of rest gives place to movement.

THE IMAGE

Thunder within the earth: The image of THE TURNING POINT.

Thus the kings of antiquity closed the passes

At the time of solstice.

Merchants and strangers did not go about,

And the ruler

Did not travel through the provinces.

The winter solstice has always been celebrated in China as the resting time of the year - a custom that survives in the time of rest observed at the new year. In winter the life energy, symbolized by thunder, the Arousing is still underground. Movement is just at its beginning; therefore it must be strengthened by rest, so that it will not be dissipated by being used prematurely. This principle, i.e., of allowing energy that is renewing itself to be reinforced by rest, applies to all similar situations. The return of health after illness, the return of understanding after an estrangement: everything must be treated tenderly and with care at the beginning, so that the return may lead to a flowering.