HEXAGRAM 55: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 55 – Feng - Abundance (Fullness)

Above CHEN THE AROUSING, THUNDER

Below LI THE CLINGING, FLAME

· Chen is movement;

· Li is flame, whose attribute is clarity.

· Clarity within,

· movement without –

this produces greatness and abundance.

The hexagram pictures a period of advanced civilization.

However,

the fact that development has reached a peak suggests that

this extraordinary condition of abundance cannot be maintained permanently.

THE JUDGMENT

ABUNDANCE has success.

The king attains abundance.

Be not sad.

Be like the sun at midday.

It is not given to every mortal to bring about a time of

· outstanding greatness and

· abundance.

Only a born ruler of men is able to do it,

because his will is directed to what is great.

Such a time of abundance is usually brief.

Therefore

a sage might well feel sad in view of the decline that must follow.

But such sadness does not befit him.

Only a man who is inwardly free of sorrow and care

can lead in a time of abundance.

He must be like the sun at midday,

illuminating and gladdening everything under heaven.

THE IMAGE

Both thunder and lightning come: The image of ABUNDANCE.

Thus

the superior man

· decides lawsuits And

· carries out punishments.

This hexagram has a certain connection with Shih Ho, BITING THROUGH (21),

in which thunder and lightning similarly appear together,

but in the reverse order.

· In BITING THROUGH, laws are laid down;

· here they are applied and enforced.

· Clarity [Li] within makes it possible to investigate the facts exactly, and

· shock [Chen] without ensures a strict and precise carrying out of punishments.

THE LINES

Nine at the beginning means:

When a man meets his destined ruler,

· They can be together ten days, And

· it is not a mistake.

Going meets with recognition.

To bring about a time of abundance,

a union of clarity with energetic movement is needed.

Two individuals possessed of these two attributes are suited to each other,

and even if

they spend an entire cycle of time together during the period of abundance,

it will not be too long, nor is it a mistake.

Therefore

one may go forth, in order to make one's influence felt;

it will meet with recognition.

Six in the second place means:

The curtain is of such fullness

That the polestars can be seen at noon.

Through going one meets with mistrust and hate.

If one rouses him through truth,

Good fortune comes.

It often happens that

plots and party intrigues,

which have the darkening effect of an eclipse of the sun,

come between

· a ruler intent on great achievement and

· the man who could effect great undertakings.

Then, instead of the sun,

we see the northern stars in the sky.

The ruler is overshadowed by a party that has usurped power.

a man at such a time were to try to take energetic measures,

he would encounter only mistrust and envy,

which would prohibit all movement.

The essential thing then is

to hold inwardly to the power of truth,

which in the end is so strong that

it exerts an invisible influence on the ruler,

so that all goes well.

Nine in the third place means:

The underbrush is of such abundance

That the small stars can be seen at noon.

He breaks his right arm.

No blame.

The image is that of a progressive covering over of the sun.

Here

the eclipse reaches totality;

therefore

even the small stars can be seen at noon.

In the sphere of social relationships,

this means that the prince is now so eclipsed that

even the most insignificant persons

can push themselves into the foreground.

This makes it impossible for an able man

though he might be the right hand of the ruler,

to undertake anything.

It is as though his arm was broken,

but he is not to blame for being thus hindered in action.

Nine in the fourth place means:

The curtain is of such fullness

That the polestars can be seen at noon.

He meets his ruler, who is of like kind.

Good fortune.

Here

the darkness is already decreasing,

therefore

inter-related elements come together.

Here too

the complement must be found –

the necessary wisdom to complement joy of action.

Then everything will go well.

The complementary factor postulated here is

the reverse of the one in the first line.

In the latter,

· wisdom is to be complemented by energy,

while here

· energy is complemented by wisdom.

Six in the fifth place means:

Lines are coming,

Blessing and fame draw near.

Good fortune.

The ruler is modest and therefore open to the counsel of able men.

Thus

he is surrounded by men who suggest to him the lines of action.

This brings blessing, fame, and good fortune to him and all the people.

Six at the top means:

His house is in a state of abundance.

· He screens off his family.

· He

o peers through the gate And

o no longer perceives anyone.

For three years he sees nothing.

Misfortune.

This describes

a man who because of his arrogance and obstinacy

attains the opposite of what he strives for.

· He seeks abundance and splendor for his dwelling.

· He wishes at all odds to be master in his house,

which so alienates his family that in the end

he finds himself completely isolated.

55 ABUNDANCE

(FULLNESS)

MANAGERIAL ISSUE:

The CEO – managing Abundance (fullness) with the help of an able assistant as the corporation reaches the peak of its cycle.

Hexagram 55 warns the CEO that success and failure are both part of the never ending YIN –YANG Cycle. The CEO must now manage the corporation through this YIN-down cycle in the same way he lead it through the YANG-upward cycle.

MANAGERIAL LESSON:

The Superior CEO knows that the qualities to lead the corporation in periods of a downward cycle are the same as those of leading the corporation in periods of upwards cycles. It requires of a special CEO with special talents and inborn qualities not every CEO has, such as:

1) Vision - the CEO who has a clear vision and the leadership qualities to push the corporation to its limits will surely lead it to success. The CEO’s vision took this corporation to its full growth, and his new vision will help the CEO to establish the rules, the discipline and the control to bring order out of this period of disorder.

2) Focus - a highly focused mind to stay with the great tasks that affect the future of the corporation.

3) Endurance - born out of his long-term vision and understanding of the economic YANG and YIN cycles, of the ups and downs.

4) Optimism - born out of the complete certainty that regardless of how bad things seem, they will always turn around, and just as times of abundance will turn into times of stagnation, they will eventually turn into a time of abundance once again.

5) Attitude - all great corporate CEOs know cycles to be a fact, that abundance is always followed by a downturn, much as the case of IBM, Intel, Oracle, etc. Their CEOs know that trees cannot grow to the sky and that they must abandon some areas to look for growth in other areas in order to renew the corporation time and time again. This is the attitude of the Superior CEO. He is so highly focused on success; he has no time to feel neither the joy nor the sorrow that come with the Yin–Yang cycles.

6) Preparedness - It is an irony that at times of full growth is when the corporation is in the greatest of dangers because that is the time when there are more possibilities of disorder, of disarray, and of things coming apart. Growth is difficult to manage. That is the reason why the CEO must prepare for the worst-case scenario.

7) Discipline - the wise CEO will adhere to the strict code of rewarding good (YANG) and punishing evil (YIN) to bring the corporation back on track.

8) Communication - the CEO’s natural optimism must be broadcasted to all employees at all times to prepare them for the difficult times that will surely come and to keep the morale high during such difficult times.

INVESTMENT ADVICE:

For the investor, the Abundance represents in general terms a not so favorable Time-Space to invest. Abundance (Fullness) is positive in the beginning but points to the cycle of Yin to Yang – from full Abundance to semi Abundance to no Abundance. No matter how positive, it points to the inevitability of the decline.

By itself (no lines) the Time-Space points to Success but warns the CEO to prepare for the end of the cycle:

ABUNDANCE has success.

The king attains abundance.

Be not sad.

Be like the sun at midday.

It is not given to every mortal to bring about a time of outstanding greatness and abundance. Only a born ruler of men is able to do it, because his will is directed to what is great. Such a time of abundance is usually brief. Therefore a sage might well feel sad in view of the decline that must follow. But such sadness does not befit him. Only a man who is inwardly free of sorrow and care can lead in a time of abundance. He must be like the sun at midday, illuminating and gladdening everything under heaven.

The lines include three possibilities of Good Fortune (the 2^nd, 4^th, 5^th), and only one possibility of Misfortune (the sixth).

The following is a case of a corporation under the Abundance Time-Space:

· Walt Disney Co. DIS under CEO Robert A. Iger

(Read at the end of the Hexagram)

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing Abundance (fullness) as the corporation reaches the peak of its cycle – bringing about the time of Abundance.

Managerial Lesson: Be clear/energetic.

Managerial Warning: At the first stage of the Abundance Time-Space, the CEO finds an assistant who complements him. While the CEO has the vision (clarity), the assistant has the strength and managerial skills to materialize the vision (energetic movement). This combination of vision and strength creates tremendous growth or abundance.

Managerial Advice: The Superior CEO knows that when he finds an able assistant who can help him execute his vision, he must hold on to him and bind him firmly to the corporation. To accomplish this, the CEO must reward him extremely well and publicly acknowledge his abilities.

All the great CEOs (Steve Jobs, Bill Gates, Larry Ellison, had the vision but they also had very able assistants with the will and skills to carry out the vision - the proper rewards served as incentives.

Investment Advice: Do not invest.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing Abundance (fullness) as the corporation reaches the peak of its cycle - when conflict threatens its Abundance.

Managerial Lesson: Be patient.

Managerial Warning: At the second stage of the Abundance Time-Space, the CEO encounters the first sign of conflict between himself and the able helper. The CEO still has the vision, while the able assistant still has the strength and the managerial skills to properly secure the vision. Yet at this very moment when great things can be accomplished, a conspiracy from an unknown group (shareholders or directors) divides this potentially great team. And pride, the eternal reason for the fall of man, takes hold of them.

The I Ching describes this situation as a partial eclipse of the sun, as a partial harm to what could have been a great team. Most corporations have gone through this scenario, including Apple. The bad blood between Steven Jobs and John Sculley was caused by hidden forces bent on destroying what could have been a working team - that of the great idea generator and the marketing man. Once they drove Jobs out, these same dark forces placed the able (in marketing) assistant in the role of the CEO. However, much to their surprise, he proved no match for the job and they lost in time much of the value of their investment.

Managerial Advice: The Superior Assistant:

· Realizes the weakness of his position and acts accordingly.

· Keeps in mind that his strength lies in playing second to his CEO, and not forcibly push forward projects or ideas, as this will immediately create opposition.

· Is true to his own ideas and principles because he knows that in the end, the CEO will appreciate his great value and bring him back closer to him.

Investment Advice: Do not invest.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing Abundance (fullness) as the corporation reaches the peak of its cycle – its worst moment.

Managerial Lesson: Be strong.

Managerial Warning: At the third stage of the Abundance Time-Space, the CEO finds he is in a weak position and has lost too much power. He continues to generate ideas but the able assistant cannot carry them out.

Managerial Advice: The Superior CEO knows:

· He is so weak anyone can push any initiative against him.

· He must accept the blame for losing power,

· Part of the reason for the loosing of power is that he has been too lenient on certain groups, which have risen against him.

· He has allowed dark groups to become stronger in time, and to separate him from his able assistant.

· His best manager is definitely not to blame.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing Abundance (fullness) as the corporation reaches the peak of its cycle - when fate turns in his favor

Managerial Lesson: Be wise.

Managerial Warning: At the fourth stage of the Abundance Time-Space, the CEO recovers his position of strength as the power of his enemies who conspired against him dwindles. Now the CEO as the symbol of wisdom can gather the best managers around him. The circle of the power of the CEO once again turns, and this time it turns in his own favor.

Managerial Advice: The Superior CEO knows that:

· Humility, patience and optimism will eventually pay off and turn the conditions to his own favor.

· When the conditions are in his favor, he must seize the opportunity to put together the best team possible to create the greatest growth period.

· Now is the time for the active and able assistants to meet with the wise CEO and accomplish great projects together. And

· When activity and wisdom meet, only joy can come out of their every action.

Investment Advice: Invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing Abundance (fullness) as the corporation reaches the peak of its cycle – listening to his best advisors.

Managerial Lesson: Be humble.

Managerial Warning: At the fifth stage of the Abundance Time-Space, the CEO exercises humility, the greatest quality in a CEO, and listens to his able assistants without any prejudices.

Managerial Advice: The Superior CEO knows humility is one of the greatest lessons a CEO can learn: To be humble enough to listen to all his employees regardless of rank. This is the one managerial practice the Japanese are best known for. In the assembly line every worker has the right to make any constructive criticism to improve the productivity of the corporation. This managerial practice alone, if born out of a real sense of humility, will lead any corporation to the greatest of success.

Investment Advice: Invest.

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing Abundance (fullness) as the corporation reaches the peak of its cycle - failing due to lack of humility

Managerial Lesson: Be noble.

Managerial Warning: At the sixth stage of the Abundance Time-Space, the CEO fails to exercise humility, the CEO’s greatest quality. Instead, he allows pride, the CEO’s greatest enemy, to lead him on the wrong path.

Managerial Advice: The Superior CEO knows that:

· Pride will shut his ears to good advice and he will refuse to listen. What good can come out of a managerial practice where the only voice heard is that of the CEO’s?, where every other opinion regardless of rank is shut out? If only one is thinking, then no one is thinking.

· Even though he might be sincere in his desire to turn the corporation into the best in the industry, his ego and his desire to be the only idea generator will create such a bad feeling amongst his directors, executives and all other employees, that they will all reject him.

Investment Advice: Do not invest.

MANAGERIAL CASES

Walt Disney Co. DIS under CEO Robert A. Iger

Robert Iger’s Performance: ROI= 3.37% Annualized Return= 0.51%

SPY’s Performance: ROI= (7.95%) Annualized Return= (1.25%)

Robert A. Iger became CEO of Walt Disney in October 2005. Since then, his performance has been slightly better than the SPY’s.

Because he has been CEO for almost 7 years, we asked the Oracle once more about his future. His new hexagram is Abundance.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 55 – Feng - Abundance (Fullness)

Chen is movement; Li is flame, whose attribute is clarity. Clarity within, movement without - this produces greatness and abundance. The hexagram pictures a period of advanced civilization. However, the fact that development has reached a peak suggests that this extraordinary condition of abundance cannot be maintained permanently.

THE JUDGMENT

ABUNDANCE has success.

The king attains abundance.

Be not sad.

Be like the sun at midday.

2) THE ADVICE

Both thunder and lightning come: The image of ABUNDANCE.

Thus the superior man decides lawsuits

And carries out punishments.

This hexagram has a certain connection with Shih Ho, BITING THROUGH (21), in which thunder and lightning similarly appear together, but in the reverse order. In BITING THROUGH, laws are laid down; here they are applied and enforced. Clarity [Li] within makes it possible to investigate the facts exactly, and shock [Chen] without ensures a strict and precise carrying out of punishments.

3) THE LINES:

Nine at the beginning means:

When a man meets his destined ruler,

They can be together ten days,

And it is not a mistake.

Going meets with recognition.

To bring about a time of abundance, a union of clarity with energetic movement is needed. Two individuals possessed of these two attributes are suited to each other, and even if they spend an entire cycle of time together during the period of abundance, it will not be too long, nor is it a mistake. Therefore one may go forth, in order to make one's influence felt; it will meet with recognition.

4) THE MOVING HEXAGRAM

HEXAGRAM 62 - Hsiao Kuo - Preponderance of the Small

While in the hexagram Ta Kuo, PREPONDERANCE OF THE GREAT (28), the strong lines preponderate and are within inclosed between weak lines at the top and bottom, the present hexagram has weak lines preponderating, though here again they are on the outside, the strong lines being within. This indeed is the basis of the exceptional situation indicated by the hexagram. When strong lines are outside, we have the hexagram I, PROVIDING NOURISHMENT (27), or Chung Fu, INNER TRUTH (61); neither represents an exceptional state. When strong elements within preponderate, they necessarily enforce their will. This creates struggle and exceptional conditions in general. But in the present hexagram it is the weak element that perforce must mediate with the outside world. If a man occupies a position of authority for which he is by nature really inadequate, extraordinary prudence is necessary.

THE JUDGMENT

PREPONDERANCE OF THE SMALL.

Success.

Perseverance furthers.

Small things may be done; great things should not be done.

The flying bird brings the message:

It is not well to strive upward,

It is well to remain below.

Great good fortune.

Exceptional modesty and conscientiousness are sure to be rewarded with success; however, if a man is not to throw himself away, it is important that they should not become empty form and subservience but be combined always with a correct dignity in personal behavior. We must understand the demands of the time in order to find the necessary offset for its deficiencies and damages. In any event we must not count on great success, since the requisite strength is lacking. In this lies the importance of the message that one should not strive after lofty things but hold to lowly things.

The structure of the hexagram gives rise to the idea that this message is brought by a bird. In Ta Kuo, PREPONDERANCE OF THE GREAT (28), the four strong, heavy lines within, supported only by two weak lines without, give the image of a sagging ridgepole. Here the supporting weak lines are both outside and preponderant; this gives the image of a soaring bird. But a bird should not try to surpass itself and fly into the sun; it should descend to the earth, where its nest is. In this way it gives the message conveyed by the hexagram.

THE IMAGE

Thunder on the mountain: The image of PREPONDERANCE OF THE SMALL.

Thus in his conduct the superior man gives preponderance to reverence.

In bereavement be gives preponderance to grief.

In his expenditures he gives preponderance to thrift.

Thunder on the mountain is different from thunder on the plain. In the mountains, thunder seems much nearer; outside the mountains, it is less audible than the thunder of an ordinary storm. Thus the superior man derives an imperative from this image: he must always fix his eyes more closely and more directly on duty than does the ordinary man, even though this might make his behavior seem petty to the outside world. He is exceptionally conscientious in his actions. In bereavement emotion means more to him than ceremoniousness. In all his personal expenditures he is extremely simple and unpretentious. In comparison with the man of the masses, all this makes him stand out as exceptional. But the essential significance of his attitude lies in the fact that in external matters he is on the side of the lowly.