HEXAGRAM 53: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 53 – Chien - Development (Gradual Progress)

Above SUN THE GENTLE, WIND, WOOD

Below KEN KEEPING STILL, MOUNTAIN

This hexagram is made up of

· Sun (wood, penetration) above, i.e., without, and

· Ken (mountain, stillness) below, i.e., within.

A tree on a mountain

· develops slowly according to the law of its being and consequently

· stands firmly rooted.

This gives the idea of

a development that proceeds gradually, step by step.

The attributes of the trigrams also point to this:

· within is tranquility,

o which guards against precipitate actions, and

· without is penetration,

o which makes development and progress possible.

THE JUDGMENT

DEVELOPMENT.

The maiden

Is given in marriage.

Good fortune.

Perseverance furthers.

1. The development of events that

leads to a girl's following a man to his home proceeds slowly.

The various formalities must be disposed of before

the marriage takes place.

This principle of gradual development can be applied to other situations as well;

it is always applicable where

2. it is a matter of correct relationships of co-operation,

as for instance in

the appointment of an official.

The development must be allowed to take its proper course.

Hasty action would not be wise.

This is also true, finally, of

3. any effort to exert influence on others,

for here too

the essential factor is a correct way of development

through cultivation of one's own personality.

No influence such as that exerted by agitators has a lasting effect.

Within the personality too,

development must follow the same course

if lasting results are to be achieved.

Gentleness

· that is adaptable,

· but at the same time penetrating,

is the outer form that should proceed from inner calm.

The very gradualness of the development

makes it necessary to have perseverance,

for perseverance alone prevents slow progress from dwindling to nothing.

THE IMAGE

On the mountain, a tree: The image of DEVELOPMENT.

Thus the superior man

abides in dignity and virtue,

In order to improve the mores.

The tree on the mountain

· is visible from afar, and

· its development influences the landscape of the entire region.

It does not shoot up like a swamp plant;

its growth proceeds gradually.

Thus also

the work of influencing people can be only gradual.

No sudden influence or awakening is of lasting effect.

Progress must be quite gradual, and

in order to obtain such progress

· in public opinion and

· in the mores of the people,

it is necessary for the personality to acquire

· influence and

· weight.

This comes about through careful and constant work

on one's own moral development.

THE LINES

Six at the beginning means:

The wild goose gradually draws near the shore.

The young son is in danger.

There is talk.

No blame.

All the individual lines in this hexagram symbolize

the gradual flight of the wild goose.

The wild goose is the symbol of conjugal fidelity,

because it is believed that

this bird never takes another mate after the death of the first.

The initial line suggests the first resting place in the flight of water birds from the water to the heights.

The shore is reached.

The situation is that of a lonely young man who is just starting out to make his way in life.

Since no one comes to help him,

· his first steps are slow and hesitant, and

· he is surrounded by danger.

Naturally he is subjected to much criticism.

But

· these very difficulties keep him from being too hasty, and

· his progress is successful.

0 Six in the second place means:

The wild goose gradually draws near the cliff.

Eating and drinking in peace and concord.

Good fortune.

The cliff is a safe place on shore.

The development has gone a step further.

· The initial insecurity has been overcome, and

· a safe position in life has been found, giving one enough to live on.

This first success,

opening up a path to activity,

· brings a certain joyousness of mood, and

· one goes to meet the future reassured.

It is said of the wild goose that it calls to its comrades whenever it finds food;

this is the symbol of peace and concord in good fortune.

A man

· does not want to keep his good luck for himself only,

· but is ready to share it with others.

Nine in the third place means:

· The wild goose gradually draws near the plateau.

· The man goes forth and does not return.

· The woman carries a child but does not bring it forth.

Misfortune.

It furthers one to fight off robbers.

The high plateau is dry and unsuitable for the wild goose.

If it goes there,

it has lost its way and gone too far.

This is contrary to the law of development.

It is the same in human life.

If we

· do not let things develop quietly but

· plunge of our own choice too rashly into a struggle,

misfortune results.

· A man jeopardizes his own life, and

· his family perishes thereby.

However,

this is not at all necessary;

it is only the result of transgressing the law of natural development.

If one

· does not willfully provoke a conflict, but

· confines himself

o to vigorously maintaining his own position and

o to warding off unjustified attacks,

all goes well.

Six in the fourth place means:

The wild goose gradually draws near the tree.

Perhaps it will find a flat branch.

No blame.

A tree is not a suitable place for a wild goose.

But if

it is clever,

it will find a flat branch on which it can get a footing.

A man's life too, in the course of its development, often

brings him into inappropriate situations,

in which

he finds it difficult to hold his own without danger.

Then it is important to be

· sensible and

· yielding.

This enables him to discover a safe place in which life can go on,

although

he may be surrounded by danger.

0 Nine in the fifth place means:

The wild goose gradually draws near the summit.

For three years the woman has no child.

In the end nothing can hinder her.

Good fortune.

The summit is a high place.

In a high position one easily becomes isolated.

One is misjudged by the very person on whom one is dependent –

· the woman by her husband,

· the official by his superior.

This is the work of deceitful persons who have wormed their way in.

The result is that

· relationships remain sterile, and

· nothing, is accomplished.

But in the course of further development,

· such misunderstandings are cleared away, and

· reconciliation is achieved after all.

Nine at the top means:

The wild goose gradually draws near the cloud heights.

Its feathers can be used for the sacred dance.

Good fortune.

Here life comes to its end.

A man's work stands completed.

The path rises high toward heaven,

like the flight of wild geese when they have left the earth far behind.

There

they fly, keeping to the order of their flight in strict formation.

And if their feathers fall,

they can serve as ornaments in the sacred dance pantomimes performed in the temples.

Thus

the life of a man who has perfected himself

is a bright light for the people of the earth,

who look up to him as an example.

53 DEVELOPMENT

(GRADUAL vs. EXPLOSIVE GROWTH)

MANAGERIAL ISSUE:

The CEO – managing the corporation’s Development (growth) – when it is gradual and steady vs. when it is explosive

Hexagram 53 describes the CEO’s need to focus on the corporation’s development or gradual steady growth.

The I Ching compares this Development or gradual growth to that of a marriage where there is first a gradual period of courtship and then a period where the new bride will gradually get accustomed to her husband (Grow on him).

MANAGERIAL LESSON:

The Superior CEO knows there are two kinds of growth: Permanent development and Explosive Growth.

1) Permanent Development

a) It has three conditions and if the corporation meets these conditions it will have shown the corporate world its capacity to achieve a permanent development or growth.

It must be:

· Gradual and steady,

· The result of a natural or evolutionary process rather than a revolutionary one,

· Based on the CEO’s extra efforts to achieve it, rather than on cutting corners.

b) There are three elements necessary for this gradual, steady growth to take place. When those three needs are fulfilled, then gradual, steady growth will take place.

When growth is applicable to:

· The corporation itself and its need to be at peace to develop its products,

· The market for the corporation’s products, and

· The corporation’s need for a strong demand for its products.

Those three elements point to the idea that a corporation, with steady growth deserves such growth. Growth must be earned and no corporation should interfere with another corporation’s growth. For instance; when a larger corporation unconditionally backs a smaller corporation, it interferes with the smaller corporation’s growth by substantially reducing its will to survive. An unconditionally backing creates a false sense of security for the smaller corporation.

2) Explosive Growth.

The Superior CEO knows that one of the most difficult growths to manage is explosive growth because this growth is based on revolutionary changes rather than gradual development.

It is dangerous because it:

a) Forces the CEO to make hasty and frequently wrong decisions. There might be exceptions such as Google, but in general, CEOs should grow steadily with their corporations.

b) Exposes the CEO to public scrutiny and might highlight the fact that the CEO is not ready to manage the corporation.

c) Might be undeserving growth, as the corporation has not proven its will to succeed or its tenacity in holding on to its goals. And

d) Attracts undue attention from its competitors, which is even worst. Netscape’s explosive growth was soon tempered by reality when Microsoft entered the industry. Cisco faced the same risk as more competitors challenged its privileged position.

The Superior CEO knows that gradual growth is applicable not only to corporations but to individuals also. It is applicable to situations when:

a. Team-work is necessary, such as in the case of a corporation or a government. Here each member of the team should be allowed to develop his managerial abilities in a natural way, without any outside interference or nepotism.

b. The corporation has recently appointed a new CEO. A recently appointed CEO must be given time to grow in his job.

c. The CEO himself needs to grow. And such growth must be gradual. His individual growth like that of a corporation should be steady for it to last. The great majority of CEOs who are forced to grow too rapidly, who are entrusted with too much responsibility or power, who are forced to go through radical experiences will, in the end, self-destruct because they have not grown in a natural way. A CEO must show the shareholders he has the steady tenacity to succeed. Only when the CEO has proven his willingness to succeed, his tenacity to achieve the corporation’s goals, will others be willing to listen to him and to follow him. For a CEO to unite others for a single purpose, he must first prove himself worthy of respect and admiration. The I Ching calls upon the CEO to be a man of virtue so that others might look up to him.

INVESTMENT ADVICE:

For the investor, the Development represents in general terms a favorable Time-Space to invest. Development is the kind of growth every CEO wants as opposed to the explosive growth that is extremely difficult to manage.

By itself (no lines) the Time-Space points to Good Fortune and the need to persevere.

DEVELOPMENT.

The maiden

Is given in marriage.

Good fortune.

Perseverance furthers.

The development of events that leads to a girl's following a man to his home proceeds slowly. The various formalities must be disposed of before the marriage takes place. This principle of gradual development can be applied to other situations as well; it is always applicable where it is a matter of correct relationships of co-operation, as for instance in the appointment of an official. The development must be allowed to take its proper course. Hasty action would not be wise. This is also true, finally, of any effort to exert influence on others, for here too the essential factor is a correct way of development through cultivation of one's own personality.

No influence such as that exerted by agitators has a lasting effect. Within the personality too, development must follow the same course if lasting results are to be achieved. Gentleness that is adaptable, but at the same time penetrating, is the outer form that should proceed from inner calm. The very gradualness of the development makes it necessary to have perseverance, for perseverance alone prevents slow progress from dwindling to nothing.

The lines include three possibilities of Good Fortune (the second, fifth and sixth), and only one possibility of Misfortune (the third).

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

· British Petroleum (BP) under CEO Bob Dudley

· Paychex Inc. PAYX under CEO Martin Mucci

· KLA-Tencor Corporation KLAC under CEO Richard P. Wallace

(Read at the end of the Hexagram)

THE LINES

SIX IN THE FIRST PLACE

Managerial Issue: The CEO – managing the corporation’s Development (gradual growth) – its beginnings.

Managerial Lesson: Be patient.

Managerial Warning: At the first stage of the Development Time-Space, the CEO:

· Faces the beginning of the corporation’s gradual growth period.

· Risks making hasty decisions.

· Risks becoming prey to the much larger corporations which are keeping an eye on its products – its products are good, with a moderate demand for it,

Luckily, at this stage, its competitors don’t see much value in its products yet and view it with contempt.

Managerial Advice: The Superior CEO:

· Develops the necessary humility to keep away from making hasty and wrong decisions.

· Avoids any attitude that will draw his competitors’ attention onto himself or onto his corporation.

Investment Advice: Do not invest. Keep an eye on this corporation.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing the corporation’s Development (gradual growth) – sharing it with others.

Managerial Lesson: Be generous.

Managerial Warning: At the second stage of the Development Time-Space, the CEO:

· Is successfully bringing his corporation to the top position in the industry,

· Is reporting good earnings on a regular basis, as the demand for the corporation’s products is growing stronger,

· Feels more secure about his actions. Management in general feels they can face any challenges that lay ahead.

Managerial Advice: The Superior CEO knows that once everyone approves of its product, the best corporate policy is to share it, much like IBM decided to share its PC components by selling its patents. This policy is wise as it forces others to buy from the originator rather than waste time developing a similar product for which there might not be a large demand. Worst, the corporation might find itself in the same position as Apple Computers, which lost the opportunity of a lifetime to become the industry standard by refusing to share its software/hardware products and by forcing the competition to develop their own.

Investment Advice: Invest.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing the corporation’s Development (gradual growth) – facing explosive growth rather than a gradual and steady development.

Managerial Lesson: Be humble.

Managerial Warning: At the third stage of the Development Time-Space, the CEO finds he might be “plunging rashly into a struggle.”

Managerial Advice: The superior CEO knows explosive growth is a corporation’s worst enemy, because the CEO:

· Will become arrogant and overly ambitious.

· Risks becoming so arrogant that he will venture into too many projects without an adequate managerial team to run them, without sufficient working capital to back him up, and with high leverage which will eat into its earnings.

· Might be tempted to di”worse”sify into other business, which are not even part of the original corporate expertise, trying to compete in other industries against much stronger and well-entrenched corporations.

· Will be ready to self-destruct.

Investment Advice: Do not invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing the corporation’s Development (gradual growth) - with the wrong product, in the wrong market.

Managerial Lesson: Be flexible.

Managerial Warning: At the fourth stage of the Development Time-Space, the CEO leads the corporation into the wrong market with the wrong product. Luckily he finds a market for such product and manages to survive. This is a clear case of serendipity rather than of real managerial ability, and it should be viewed as a temporary resting place from which the already well-established competitors will eventually force it out. Even though it might appear as a smart move to grab a foothold in which to rest when a business is bad, in effect it is a sign of failure when the CEO has led the corporation to such conditions.

Managerial Advice: The Superior CEO is flexible and looks for a compromise.

This is the case of U.S. Robotics and serendipity at work. When US Robotics found that it’s most popular items were not its network connectors or modems but rather its Palm Pilot, it merged with 3Comn, a more successful manufacturer of network connectors and modems, and created synergy between the two of them. Still, there was no guarantee for US Robotics that the merger would provide it with the safety it had been looking for. In the end, the original creators of the Palm Pilot left to create their own product, Handspring.

Investment Advice: Do not invest.

NINE IN THE FIFTH PLACE

Managerial Issue: The CEO – managing the corporation’s Development (gradual growth) - paying the price for it.

Managerial Lesson: Be longsuffering.

Managerial Warning: At the fifth stage of the Development Time-Space, the CEO risks turning every competitor into an enemy in the process of taking his corporation to the number one spot. Being number one is a lonely place after all.

Managerial Advice: The Superior CEO holds his course and lets things work themselves out. He is certain they will work themselves out because in time even his adversaries will see the value of his products.

This is the case of the Microsoft-Bill Gates Time-Space. By having the Mandate of Heaven, Gates was able to manage both explosive as well as gradual growth. Yet after bringing Microsoft to the number one spot, he found himself surrounded by corporate as well as governmental enemies. The lesson for Microsoft enemies was that it is of no use for them to push the government into destroying it. Eventually the government might turn against them also. Unfortunately, that has not been the case of the Microsoft-Ballmer Time-Space because Ballmer lacks the mandate of Heaven.

Investment Advice: Invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing the corporation’s Development (gradual growth) – its end.

Managerial Lesson: Be wise.

Managerial Warning: At the sixth stage of the Development Time-Space, the CEO faces the corporation’s transformation or death.

Managerial Advice: The Superior CEO knows all things must come to an end. Once their birth, growth, maturity and aging cycles are completed, it is time for the corporation to die or to transform itself into something completely new. The successful corporation might die physically, but never spiritually. If its products and marketing concepts have been successful, then its spin-offs will create new corporations which in turn will create new products and new industries which in turn will create new corporations and so on and on, thus feeding the eternal cycle of life. Dying stars give birth to new ones in a never-ending cycle.

This is also applicable to the successful CEO. Those he taught to carry the highest standards while he was alive will continue to do so after he leaves or dies. Goizueta’s teachings will be reflected in the works of the new CEOs of Coca Cola.

Investment Advice: Invest.

MANAGERIAL CASES

Future of British Petroleum (BP) under CEO Bob Dudley

Bob Dudley’s Performance: ROI= (14.52%) Annualized Return= (14.44%)

SPY’s Performance: ROI= ( 1.68%) Annualized Return= ( 1.67%)

Bob Dudley became CEO of British Petroleum in October of 2010 after the catastrophic events of the Gulf of Mexico. Since then, his performance has been worse than the SPY’s, which in the short run is to be expected.

However, the future looks better for BP under his leadership as evidenced by the Development Time-Space.

· The Hexagram 53 Development is quite positive and points to a possible merger:

DEVELOPMENT. The maiden Is given in marriage. Good fortune. Perseverance furthers.

· The lines: there is one moving line: is positive and points to Good Fortune after a period of difficulties:

The wild goose gradually draws near the summit. For three years the woman has no child. In the end nothing can hinder her. Good fortune.

· The Moving Hexagram is: is positive

HEXAGRAM 52 - Ken- Keeping Still asks him to make no sudden changes after the Development Time-Space is completed.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 53 – Chien - Development (Gradual Progress)

This hexagram is made up of Sun (wood, penetration) above, i.e., without, and Ken (mountain, stillness) below, i.e., within. A tree on a mountain develops slowly according to the law of its being and consequently stands firmly rooted. This gives the idea of a development that proceeds gradually, step by step. The attributes of the trigrams also point to this: within is tranquility, which guards against precipitate actions, and without is penetration, which makes development and progress possible.

THE JUDGMENT

DEVELOPMENT.

The maiden

Is given in marriage.

Good fortune.

Perseverance furthers.

2) THE ADVICE

On the mountain, a tree: The image of DEVELOPMENT.

Thus the superior man abides in dignity and virtue,

In order to improve the mores.

The tree on the mountain is visible from afar, and its development influences the landscape of the entire region. It does not shoot up like a swamp plant; its growth proceeds gradually. Thus also the work of influencing people can be only gradual. No sudden influence or awakening is of lasting effect. Progress must be quite gradual, and in order to obtain such progress in public opinion and in the mores of the people, it is necessary for the personality to acquire influence and weight. This comes about through careful and constant work on one's own moral development.

3) THE LINES:

0 Nine in the fifth place means:

The wild goose gradually draws near the summit.

For three years the woman has no child.

In the end nothing can hinder her.

Good fortune.

The summit is a high place. In a high position one easily becomes isolated. One is misjudged by the very person on whom one is dependent - the woman by her husband, the official by his superior. This is the work of deceitful persons who have wormed their way in. The result is that relationships remain sterile, and nothing, is accomplished. But in the course of further development, such misunderstandings are cleared away, and reconciliation is achieved after all.

4) THE MOVING HEXAGRAM

HEXAGRAM 52 – Ken - Keeping Still, Mountain

The image of this hexagram is the mountain, the youngest son of heaven and earth. The male principle is at the top, because it strives upward by nature; the female principle is below, since the direction of its movement is downward. Thus there is rest because the movement has come to its normal end.

In its application to man, the hexagram turns upon the problem of achieving a quiet heart. It is very difficult to bring quiet to the heart. While Buddhism strives for rest through an ebbing away of all movement in nirvana, the Book of Changes holds that rest is merely a state of polarity that always posits movement as its complement. Possibly the words of the text embody directions for the practice of yoga.

THE JUDGMENT

KEEPING STILL.

Keeping his back still

So that he no longer feels his body.

He goes into his courtyard

And does not see his people.

No blame.

True quiet means keeping still when the time has come to keep still, and going forward when the time has come to go forward. In this way rest and movement are in agreement with the demands of the time, and thus there is light in life.

The hexagram signifies the end and the beginning of all movement. The back is named because in the back are located all the nerve fibers that mediate movement. If the movement of those spinal nerves is brought to a standstill, the ego, with its restlessness, disappears as it were. When a man has thus become calm, he may turn to the outside world. He no longer sees in it the struggle and tumult of individual beings, and therefore he has that true peace of mind which is needed for understanding the great laws of the universe and for action, in harmony with them. Whoever acts from these deep levels makes no mistakes.

THE IMAGE

Mountains standing close together: The image of KEEPING STILL.

Thus the superior man

Does not permit his thoughts

To go beyond his situation.

1The heart thinks constantly. This cannot be changed, but the movements of the heart - that is, a man's thoughts - should restrict themselves to the immediate situation. All thinking that goes beyond this only makes the heart sore.

Paychex Inc. PAYX under CEO Martin Mucci

Martin Mucci’s Performance: ROI= (3.01%) Annualized Return= (2.99%)

SPY’s Performance: ROI= (1.68%) Annualized Return= (1.67%)

Martin Mucci became CEO of Paychex in October of 2010. Since then, his performance has been similar to the SPY’s.

However, the future looks better for Paychex under his leadership as evidenced by the Development Time-Space.

Points the investor should consider:

· The Hexagram 53 Development is quite positive and points to a possible merger:

DEVELOPMENT. The maiden Is given in marriage. Good fortune. Perseverance furthers.

· The lines: there are two moving lines:

o The fourth place points to difficulties but no blame.

o The fifth place points to Good Fortune after a short term period of difficulties.

· The Moving Hexagram is: is positive if he is diplomatic at all times.

HEXAGRAM 56 - Lu- The Wanderer

THE WANDERER. Success through smallness. Perseverance brings good fortune To the wanderer.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Six in the fourth place means:

The wild goose gradually draws near the tree.

Perhaps it will find a flat branch.

No blame.

A tree is not a suitable place for a wild goose. But if it is clever, it will find a flat branch on which it can get a footing. A man's life too, in the course of its development, often brings him into inappropriate situations, in which he finds it difficult to hold his own without danger. Then it is important to be sensible and yielding. This enables him to discover a safe place in which life can go on, although he may be surrounded by danger.

0 Nine in the fifth place means:

The wild goose gradually draws near the summit.

For three years the woman has no child.

In the end nothing can hinder her.

Good fortune.

4) THE MOVING HEXAGRAM

HEXAGRAM 56 - Lu - The Wanderer

The mountain, Ken, stands still; above it fire, Li, flames up and does not tarry. Therefore the two trigrams do not stay together. Strange lands and separation are the wanderer's lot.

THE JUDGMENT

THE WANDERER.

Success through smallness.

Perseverance brings good fortune

To the wanderer.

When a man is a wanderer and stranger, he should not be gruff nor overbearing. He has no large circle of acquaintances therefore he should not give himself airs. He must be cautious and reserved; in this way he protects himself from evil. If he is obliging toward others, he wins success.

A wanderer has no fixed abode; his home is the road. Therefore he must take care to remain upright and steadfast, so that he sojourns only in the proper places, associating only with good people. Then he has good fortune and can go his way unmolested.

THE IMAGE

Fire on the mountain: The image of THE WANDERER.

Thus the superior man

Is clear-minded and cautious

In imposing penalties,

And protracts no lawsuits.

When grass on a mountain takes fire, there is bright light. However, the fire does not linger in one place, but travels on to new fuel. It is a phenomenon of short duration. This is what penalties and lawsuits should be like. They should be a quickly passing matter, and must not be dragged out indefinitely. Prisons ought to be places where people are lodged only temporarily, as guests are. They must not become dwelling places.

KLA-Tencor Corporation KLAC under CEO Richard P. Wallace

Richard Wallace’s Performance: ROI= (26.38%) Annualized Return= (5.19%)

SPY’s Performance: ROI= (12.27%) Annualized Return= (2.25%)

Richard P. Wallace became CEO of KLA-Tencor in January of 2006. Since then, his performance has been worse than the SPY’s.

However, because he has been CEO for almost the 6 to 7 year period, it is best to ask of the Oracle once more about his future performance. His new Time Space is the Development.

Points the investor should consider:

· The Hexagram 53 Development is quite positive and points to a possible merger:

DEVELOPMENT. The maiden Is given in marriage. Good fortune. Perseverance furthers.

· The lines: there are no moving lines so the Judgment above is even more relevant.

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 is the focusing point.

THE JUDGMENT

DEVELOPMENT.

The maiden

Is given in marriage.

Good fortune.

Perseverance furthers.