HEXAGRAM 43: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 43 – Kuai - Break-through (Resoluteness)

Above Tui THE JOYOUS, LAKE

Below CH'IEN THE CREATIVE, HEAVEN

This hexagram signifies

on the one hand

· a break-through after a long accumulation of tension,

as a swollen river breaks through its dikes, or in the manner of a cloudburst.

On the other hand, applied to human conditions,

· it refers to the time when inferior people gradually begin to disappear.

Their influence is on the wane;

as a result of resolute action,

· a change in conditions occurs,

· a break-through.

The hexagram is linked with the third month [April-May].

THE JUDGMENT

BREAK-THROUGH.

· One must resolutely make the matter known At the court of the king.

· It must be announced truthfully.

Danger.

It is necessary to notify one's own city.

· It does not further to resort to arms.

· It furthers one to undertake something.

· Even if only one inferior man is occupying a ruling position in a city, he

o is able to oppress superior men.

· Even a single passion still lurking in the heart

o has power to obscure reason.

· Passion and reason cannot exist side by side - therefore

o fight without quarter is necessary if the good is to prevail.

In a resolute struggle of the good against evil, there are, however,

definite rules that must not be disregarded, if it is to succeed.

1. First,

resolution must be based on a union of

· strength and

· friendliness.

2. Second,

a compromise with evil is not possible;

· evil must under all circumstances be openly discredited.

· Nor must our own passions and shortcomings be glossed over.

3. Third,

the struggle must not be carried on directly by force.

· evil is branded,

o it thinks of weapons,

and

· we do it the favor of fighting against it blow for blow,

o we lose in the end

because thus

· we ourselves get entangled in hatred and passion.

Therefore

4. it is important

· to begin at home,

· to be on guard in our own persons against the faults we have branded.

In this way,

· finding no opponent,

· the sharp edges of the weapons of evil become dulled.

For the same reasons

5. we should not combat our own faults directly.

· As long as we wrestle with them,

· they continue victorious.

Finally,

6. the best way to fight evil is to make energetic progress in the good.

THE IMAGE

The lake has risen up to heaven: The image of BREAK-THROUGH.

Thus the superior man

· Dispenses riches downward

And

· refrains from resting on his virtue.

· When the water of a lake has risen up to heaven,

o there is reason to fear a cloudburst.

· Taking this as a warning,

o the superior man forestalls a violent collapse.

· a man were to pile up riches for himself alone, without considering others,

· he would certainly experience a collapse.

For all gathering is followed by dispersion.

Therefore

the superior man begins to distribute while he is accumulating.

In the same way,

in developing his character

he takes care

· not to become hardened in obstinacy

but

· to remain receptive to impressions

by help of strict and continuous self-examination.

THE LINES

Nine at the beginning means:

Mighty in the forward-striding toes.

When

· one

o goes

and

o is not equal to the task

· One

o makes a mistake.

In times of a resolute advance,

the beginning is especially difficult.

· We

o feel inspired to press forward but resistance is still strong;

therefore

· we

o ought to gauge our own strength

and

o venture only so far as we can go with certainty of success.

To plunge blindly ahead is wrong,

· because it is precisely at the beginning

that

· an unexpected setback can have the most disastrous results.

Nine in the second place means:

A cry of alarm.

Arms at evening and at night.

Fear nothing.

Readiness is everything.

Resolution is indissolubly bound up with caution.

an individual

· is careful

and

· keeps his wits about him,

· need not become excited or alarmed.

· is watchful at all times, even before danger is present,

· is armed when danger approaches

and

· need not be afraid.

The superior man is

· on his guard against what is not yet in sight

and

· on the alert for what is not yet within hearing;

therefore

· dwells in the midst of difficulties as though they did not exist.

a man develops his character,

· people submit to him of their own accord.

reason triumphs,

· the passions withdraw of themselves.

· To be circumspect

and

· not to forget one's armor

· is the right way to security-

Nine in the third place means:

To be powerful in the cheekbones Brings Misfortune.

The superior man is firmly resolved.

· walks alone

and

· is caught in the rain.

· is bespattered,

And

· people murmur against him.

No blame.

Here we have a man in an ambiguous situation.

While

· all others are engaged in a resolute fight against all that is inferior,

· he alone has a certain relationship with an inferior man.

he were to

· show strength outwardly

and

· turn against this man before the time is ripe,

· would only endanger the entire situation,

because

the inferior man

· would too quickly have recourse to countermeasures.

The task of the superior man becomes extremely difficult here.

· must be firmly resolved within himself

and, while maintaining association with the inferior man,

· avoid any participation in his vileness.

He will of course be misjudged.

It will be thought that he belongs to the party of the inferior man.

He will be lonely because no one will understand him.

· His relations with the inferior man will sully him in the eyes of the multitudes

and

· they will turn against him, grumbling.

But

· can endure this lack of appreciation

and

· makes no mistake,

because

· remains true to himself.

Nine in the fourth place means:

· There is no skin on his thighs,

And

· walking comes hard.

a man were to let himself be led like a sheep,

· Remorse would disappear.

But

these words are heard

· They will not be believed.

Here a man

· is suffering from inner restlessness

and

· cannot abide in his place.

· would like to push forward under any circumstances,

but

· encounters insuperable obstacles.

Thus his situation entails an inner conflict.

This is due to the obstinacy with which he seeks to enforce his will.

he would desist from this obstinacy,

· everything would go well.

But this advice, like so much other good counsel,

· will be ignored.

For obstinacy

· makes a man unable to hear,

· for all that he has ears.

0 Nine in the fifth place means:

In dealing with weeds, Firm resolution is necessary.

Walking in the middle remains free of blame.

Weeds always

· grow back again

and

· are difficult to exterminate.

So too

the struggle against an inferior man in a high position

· demands firm resolution.

One

· has certain relations with him,

hence there is danger that

one

· may give up the struggle as hopeless.

But

this must not be.

One must

· go on resolutely

and

· not allow himself to be deflected from his course.

Only in this way

does one

· remain free of blame.

Six at the top means:

No cry.

In the end misfortune comes.

Victory seems to have been achieved.

There remains merely a remnant of the evil resolutely to be eradicated

as the time demands.

Everything looks easy.

Just there, however, lies the danger.

we are not on guard,

· evil will succeed in escaping by means of concealment,

and

when

it has eluded us

· new misfortunes will develop from the remaining seeds,

for evil does not die easily.

So too in dealing with the evil in one's own character,

· one must go to work with thoroughness.

If out of carelessness anything were to be overlooked,

· new evil would arise from it.

43 BREAK-THROUGH

(RESOLUTENESS)

MANAGERIAL ISSUE:

The CEO – resolutely breaking through – freeing the corporation / himself of the remaining evil, executing his punishment for the benefit of the corporation.

Hexagram 43 is made up of five positive lines at the bottom and one negative line on top. Thus, even though evil influences are declining, they are still present on top.

The bottom lines are pushing from below and will eventually free the Hexagram of the last evil line on top. The action of freeing the hexagram from all the negative influences require an ultimate push or a resolute Break Through.

Hexagram 43 represents a fundamental managerial lesson, one that every CEO should read carefully until he understands and assimilates it.

MANAGERIAL LESSON:

The Superior CEO knows that the presence of evil, however small, whether it be present in the heart of the corporation as expressed in its managerial practices or in the heart of the CEO or in the heart of the employees, will destroy the corporation in the long run. There should be no room for both evil and good in the corporation.

The Superior CEO must be resolutely determined to combat evil in the corporation. The way to do it is to:

1) Gather around him all the positive forces in a friendly manner,

2) Let them know that neither he nor they will accept the presence of evil in the corporation or in their jobs. That they will speak out against any evil managerial practice they may find. The lesson is to hide none of the evil you see, but to make it all public bringing it out into the light where it will wither and die.

3) Use reason rather than force to fight evil. Force will only make us equal to the same evil we are fighting, making us lose our moral high ground.

4) Emphasize the positive rather than forcefully fight the negative. Do not fight evil with evil but rather with good – that is, avoid it altogether.

5) Prevent it, which is the best way to fight evil. The best way to prevent it is to share with others the good fortune and thus avoid envy. Whenever the corporation accumulates wealth, the CEO must find the way to share it with others, not only with the stockholders in the form of dividends, but also with the employees in the form of bonuses, or by starting a new project, or a charitable cause. In this way, the CEO acts in accordance with a basic law of nature by taking away from those who have much and giving to those who have little.

6) Share all he can. The CEO must share not only the wealth of the corporation but also the wealth of his mind and thereby share the wealth of Heaven and of Earth. By living by this law, the CEO keeps open his mind to new ideas even if he is very successful. He allows a continuous enlightenment to occur to him.

7) Reevaluates. Constant reevaluation of conditions will ensure evil is rooted out from the corporation.

INVESTMENT ADVICE:

For the investor, the Break Through Time – Space is not an opportunity to invest. After all, the corporation still has elements of evil within it and the CEO’s task is to get rid of those elements of evil still remaining. This is quite a difficult task. The Judgment warns of Danger and there are no positive lines

By itself (no lines) the Hexagram points to difficult conditions where the CEO must be constantly on guard. Such conditions are not ideal for the investors.

BREAK-THROUGH.

One must resolutely make the matter known

At the court of the king.

It must be announced truthfully.

Danger.

It is necessary to notify one's own city.

It does not further to resort to arms.

It furthers one to undertake something.

Even if only one inferior man is occupying a ruling position in a city, he is able to oppress superior men. Even a single passion still lurking in the heart has power to obscure reason. Passion and reason cannot exist side by side - therefore fight without quarter is necessary if the good is to prevail.

In a resolute struggle of the good against evil, there are, however, definite rules that must not be disregarded, if it is to succeed. First, resolution must be based on a union of strength and friendliness. Second, a compromise with evil is not possible; evil must under all circumstances be openly discredited. Nor must our own passions and shortcomings be glossed over. Third, the struggle must not be carried on directly by force. If evil is branded, it thinks of weapons, and if we do it the favor of fighting against it blow for blow, we lose in the end because thus we ourselves get entangled in hatred and passion.

Therefore it is important to begin at home, to be on guard in our own persons against the faults we have branded. In this way, finding no opponent, the sharp edges of the weapons of evil become dulled. For the same reasons we should not combat our own faults directly. As long as we wrestle with them, they continue victorious. Finally, the best way to fight evil is to make energetic progress in the good.

There are no positive lines.

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

· Akamai Technologies Inc. AKAM CEO Paul Sagan

(Read at the end of the Hexagram)

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing the break-through – the beginning.

Managerial Lesson: Be prudent.

Managerial Warning: At the first stage of the Break Through Time-Space, the CEO has firmly decided to reject all evil in the corporation, both the evil personnel and the evil practices which have accumulated in time. However, he finds that getting rid of evil is not easy and is tempted to “plunge blindly ahead”.

Managerial Advice: The Superior CEO knows all beginnings imply difficulties, and in this case neither the evil employees nor the evil practices will easily go away. He carefully studies his position to measure how strong it is and how far he can go in eliminating evil. He knows that to use full force without measuring all the possible outcomes will only result in playing into the hands of his opponents and delay the break through.

Investment Advice: Do not invest.

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing the break through – preparing the corporation for it.

Managerial Lesson: Be prepared.

Managerial Warning: At the second stage of the Break Through Time-Space, the CEO risks lacking the necessary preparation for the impending evil.

Managerial Advice: The Superior CEO is always ready for any eventuality. He knows he must develop the right attitude:

· Be careful and keep calm at all times.

· Prepare for evil even before it appears because he knows it will eventually appear.

· Arm the corporation for the eventual presence of evil by creating deterrents.

· Not be afraid at the arrival of evil because he has prepared the corporation for it.

· Not allow evil to make him lose his balance and force him to take extreme positions.

· Mold himself into an example to follow. As a man of reason and character, others will perceive him as their leader and will follow him. He will indeed, speak softly but carry a big stick.

Investment Advice: Do not invest.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing the break through - failing because of his association with evil.

Managerial Lesson: Be resolute.

Managerial Warning: At the third stage of the Break Through Time-Space, the CEO finds that while everyone in the corporation is fighting evil, he is not resolute in his fight. He even appears to have a friend among the evil ones.

Managerial Advice: The Superior CEO quickly regains his resolve to fight evil should he ever lose it. He knows he must:

· Realize his task is extremely difficult.

· Bide his time and choose the right moment to break his friendship with evil. If his timing is wrong, evil will destroy him.

· Be prepared for evil to falsely accuse him of being part of evil, and for others to misjudge him and reject him.

· keep faith in himself. As long as he is true to himself, he will be false to no man.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the break-through - encountering obstacles in his effort to break through.

Managerial Lesson: Be flexible.

Managerial Warning: At the fourth stage of the Break Through Time-Space, the CEO encounters resistance from some of his executives in his attempts to eliminate evil from the corporation. By becoming so obsessed with eliminating evil from the corporation, he risks reverting to the same evil practices as those of his opponents and closing his mind to any positive suggestions.

Managerial Advice: The Superior CEO seeks deeply within his heart to see if he is not the cause of the excessive resistance. In this case, he knows he is the cause. In particular it could very well be the aggressive way in which he fights evil. He knows that by combating evil with the same methods evil would use, he risks becoming one of them with no one perceiving him as a leader and no one following him.

One of the main lessons of Hexagram 43 is that for the CEO to eliminate any evil employees or evil practices, he must use reason rather than force to avoid becoming as evil as his adversaries, and to keep his mind open to new ideas rather than shut it out completely. He seems to be beyond any capacity to reason or to hear.

Investment Advice: Do not invest.

NINE IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the break through - strengthening his resolve to break through.

Managerial Lesson: Be constant.

Managerial Warning: At the fifth stage of the Break Through Time-Space, the CEO faces a pocket of a few evil executives in the top managerial places. Because of his leniency, he has allowed his relationship with them to go on for too long, thus placing the corporation in danger. He risks giving up the fight by viewing it as hopeless.

Managerial Advice: The Superior CEO knows:

· Evil will always be present in this world and certainly will always be present in the corporation both in the form of executives or of practices.

· The fight against evil is practically a never-ending battle.

· He should prepare to fight it with resoluteness.

· He must not compromise.

· Constancy and tenacity are the only way out of this fight.

· His corporation’s survival lies in realizing he can never rid the corporation completely of evil; that he must only hope to keep it at bay or under a limited control.

· He loses the minute he thinks he has completely triumphed over evil.

Investment Advice: Do not invest.

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing the break-through - failing due to a false sense of security.

Managerial Lesson: Be alert.

Managerial Warning: At the sixth stage of the Break Through Time-Space, The I Ching describes a CEO who forgot that evil never dies. He fell into a false sense of security and thus lost the fight against evil. This gave sufficient time for the evil executives to regroup, to gain new adepts, and to remain in a low profile.

Managerial Advice: The Superior CEO knows:

· The only way to triumph over the evil executives is to realize how strong an adversary they are and to prepare for them.

· He fails the minute he thinks he has overcome evil completely.

· He must realize he will never triumph completely over evil for evil does not die; that he can only hope for a limited control over it.

· The very same act on the CEO’s part of thinking he can triumph over evil is a clear sign that evil is inside him, an evil which he must fight not to eradicate completely because he cannot, but rather to gain a limited control over it.

The Hexagram’s top line, which is a negative line on top (and five positive lines below it), represents the CEO’s failure in allowing evil to escape. This negative line will show up once again at the bottom of the next Hexagram, number 44, to continue a never-ending cycle of good displacing evil and evil displacing good.

Investment Advice: Do not invest.

MANAGERIAL CASES

Akamai Technologies Inc. AKAM CEO Paul Sagan

Paul Sagan’ Performance: ROI= 65.19% Annualized Return= 8.13%

SPY’s Performance: ROI= 0.13% Annualized Return= 0.02%

Paul Sagan became CEO of Akamai Technologies in April of 2005. Since then, he has outperformed the SPY.

However, because he has been CEO for almost 7 years, we have to ask the Oracle about his new Time-Space.

Now that his new Time-Space has changed as of January 2011 to that of the Break-Thorough, his performance has turned quite negative compared with the SPY’s:

Paul Sagan’ Performance: ROI= (57.52%) Annualized Return= (72.07%)

SPY’s Performance: ROI= (7.24%) Annualized Return= (10.51%)

The question now is whether he has the necessary resoluteness to manage this period where he must get rid of the evil remaining in his corporation. Because there is no Good Fortune in his lines, the battle against evil is even more difficult.

His line is positive in that it advices him to fear nothing. However, fearing nothing is not the same as Good Fortune.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 43 – Kuai - Break-through (Resoluteness)

This hexagram signifies on the one hand a break-through after a long accumulation of tension, as a swollen river breaks through its dikes, or in the manner of a cloudburst. On the other hand, applied to human conditions, it refers to the time when inferior people gradually begin to disappear. Their influence is on the wane; as a result of resolute action, a change in conditions occurs, a break-through. The hexagram is linked with the third month [April-May].

THE JUDGMENT

BREAK-THROUGH.

One must resolutely make the matter known

At the court of the king.

It must be announced truthfully.

Danger.

It is necessary to notify one's own city.

It does not further to resort to arms.

It furthers one to undertake something.

2) THE ADVICE

The lake has risen up to heaven: The image of BREAK-THROUGH.

Thus the superior man

Dispenses riches downward

And refrains from resting on his virtue.

When the water of a lake has risen up to heaven, there is reason to fear a cloudburst. Taking this as a warning, the superior man forestalls a violent collapse. If a man were to pile up riches for himself alone, without considering others, he would certainly experience a collapse. For all gathering is followed by dispersion. Therefore the superior man begins to distribute while he is accumulating. In the same way, in developing his character he takes care not to become hardened in obstinacy but to remain receptive to impressions by help of strict and continuous self-examination.

3) THE LINES:

Nine in the second place means:

A cry of alarm.

Arms at evening and at night.

Fear nothing.

Readiness is everything. Resolution is indissolubly bound up with caution. If an individual is careful and keeps his wits about him, he need not become excited or alarmed. If he is watchful at all times, even before danger is present, he is armed when danger approaches and need not be afraid. The superior man is on his guard against what is not yet in sight and on the alert for what is not yet within hearing; therefore he dwells in the midst of difficulties as though they did not exist. If a man develops his character, people submit to him of their own accord. If reason triumphs, the passions withdraw of themselves. To be circumspect and not to forget one's armor is the right way to security-

4) THE MOVING HEXAGRAM

HEXAGRAM 49 – Ko – Revolution (Molting)

The Chinese character for this hexagram means in its original sense an animal's pelt, which is changed in the course of the year by molting. From this the word is carried over to apply to the "molting" in political life, the great revolutions connected with changes of governments. The two trigram making up the hexagram are the same two that appear in K'uei, OPPOSITION (38), that is, the two younger daughters, Li and Tui. But while there the elder of the two daughters is above, and what results is essentially only an opposition of tendencies, here the younger daughter is above. The influences are in actual conflict, and the forces combat each other like fire and water (lake), each trying to destroy the other. Hence the idea of revolution.

THE JUDGMENT

REVOLUTION

On your own day

You are believed.

Supreme success,

Furthering through perseverance.

Remorse disappears.

Political revolutions are extremely grave matters. They should be undertaken only under stress of direst necessity, when there is no way out. Not everyone is called to this task, but only the man who has the confidence of the people, and even he only when the time is ripe. He must then proceed in the right way, so that he gladdens the people and, by enlightening them, prevents excesses. Furthermore, he must be quite free of selfish aims and must really relieve the need of the people. Only then does he have nothing to regret.

Times change, and with them their demands. Thus the seasons change in the course of the year. In the world cycle also there are spring and autumn in the life of peoples and nations, and these call for social transformations.

THE IMAGE

Fire in the lake: the image of REVOLUTION.

Thus the superior man

Sets the calendar in order

And makes the seasons clear.

Fire below and the lake above combat and destroy each other. So too in the course of the year a combat takes place between the forces of light and the forces of darkness, eventuating in the revolution of the seasons. Man masters these changes in nature by noting their regularity and marking off the passage of time accordingly. In this way order and clarity appear in the apparently chaotic changes of the seasons, and man is able to adjust himself in advance to the demands of the different times.