HEXAGRAM 64: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 64 - Wei Chi - Before Completion

Above Li THE CLINGING, FLAME

Below K'AN THE ABYSMAL, WATER

This hexagram indicates a time when

the transition from disorder to order is not yet completed.

The change is indeed prepared for,

since

all the lines in the upper trigram are in relation to those in the lower (1).

However,

they are not yet in their places.

While

· the preceding hexagram offers an analogy to autumn,

o which forms the transition

from summer to winter,

· this hexagram presents a parallel to spring,

o which leads out of winter's stagnation into

the fruitful time of summer.

With this hopeful outlook the Book of Changes comes to its close.

THE JUDGMENT

BEFORE COMPLETION.

Success.

But if the little fox, after nearly completing the crossing,

Gets his tail in the water,

There is nothing that would further.

The conditions are difficult.

The task is great and full of responsibility.

It is nothing less than that of

leading the world out of confusion back to order.

But

it is a task that promises success,

because

there is a goal that can unite the forces now tending in different directions.

At first, however,

one must move warily, like an old fox walking over ice.

The caution of a fox walking over ice is proverbial in China.

His ears are constantly alert to the cracking of the ice,

he carefully and circumspectly searches out the safest spots.

A young fox who as yet has not acquired this caution

goes ahead boldly,

and it may happen that

he falls in and gets his tail wet

when

he is almost across the water.

Then of course

his effort has been all in vain.

Accordingly, in times "before completion,"

· deliberation

and

· caution

are the prerequisites of success.

THE IMAGE

Fire over water: The image of the condition before transition.

Thus

the superior man is careful

In the differentiation of things,

So that each finds its place.

When

fire,

· which by nature flames upward,

is above,

and

water,

· which flows downward,

is below,

their effects

· take opposite directions

and

· remain unrelated.

· we wish to achieve an effect,

· we must first

· investigate the nature of the forces in question

and

· ascertain their proper place.

· we can bring these forces to bear in the right place,

· they will have the desired effect,

and

· completion will be achieved.

But in order to handle external forces properly,

· we must above all arrive at the correct standpoint ourselves,

for only from this vantage can we work correctly.

THE LINES

Six at the beginning means:

He gets his tail in the water.

Humiliating.

In times of disorder

there is a temptation to advance oneself as rapidly as possible

in order to accomplish something tangible.

But

this enthusiasm leads only to failure and humiliation

if the time for achievement has not yet arrived.

In such a time

it is wise to spare ourselves the opprobrium of failure

by holding back. 2

Nine in the second place means:

He brakes his wheels.

Perseverance brings good fortune.

Here again

the time to act has not yet come.

But

the patience needed is not that of

· idle waiting without thought of the morrow.

Kept up indefinitely,

· this would not lead to any success.

Instead,

an individual

· must develop in himself the strength

that

· will enable him to go forward.

· must have a vehicle, as it were, to effect the crossing.

But

· must for the time being use the brakes.

Patience in the highest sense means

putting brakes on strength.

Therefore

he must not

· fall asleep

and

· lose sight of the goal.

· he remains strong and steadfast in his resolve,

· all goes well in the end.

Six in the third place means:

Before completion, attack brings misfortune.

It furthers one to cross the great water.

The time of transition has arrived,

but

one

· lacks the strength to complete the transition.

one

· should attempt to force it,

· disaster would result,

because

· collapse would then be unavoidable.

What is to be done?

A new situation must be created;

one

· must engage the energies of able helpers

and in this fellowship

· take the decisive step - cross the great water.

Then completion will become possible.

Nine in the fourth place means:

Perseverance brings good fortune.

Remorse disappears.

Shock, thus to discipline the Devil's Country.

For three years, great realms are awarded.

Now it is the time of struggle.

The transition must be completed.

· must make ourselves strong in resolution;

this brings good fortune.

All misgivings that might arise in such grave times of struggle

· must be silenced.

It is a question of a fierce battle

· to break

and

· to discipline

the Devil´s Country, the forces of decadence.

But

· the struggle also has its reward.

Now is the time to lay the foundations of

· power

and

· mastery

for the future.

Six in the fifth place means:

Perseverance brings good fortune.

No remorse.

The light of the superior man is true.

Good fortune.

The victory has been won.

The power of steadfastness has not been routed.

Everything has gone well.

All misgivings have been overcome.

Success has justified the deed.

The light of a superior personality

· shines forth anew

and

· makes its influence felt among men

who have faith in it and rally around it.

The new time has arrived,

and

with it good fortune.

And just

· as the sun shines forth in redoubled beauty after rain, or

· as a forest grows more freshly green from charred ruins after a fire,

· the new era appears all the more glorious

by contrast with the misery of the old.

Nine at the top means:

There is drinking of wine

In genuine confidence.

No blame.

But if

one wets his head,

He loses it, in truth.

Before completion, at the dawning of the new time,

· friends foregather in an atmosphere of mutual trust,

and

· the time of waiting is passed in conviviality.

Since

the new era is hard on the threshold,

there is no blame in this.

But

one must be careful in all this to keep within proper bounds.

If in his exuberance

· a man gets drunk,

· he forfeits the favorableness of the situation

through his intemperance.

NOTE.

1. The hexagram AFTER COMPLETION represents a gradual transition from a time of ascent past a peak of culture to a time of standstill.

2. The hexagram BEFORE COMPLETION represents a transition from chaos to order. This hexagram comes at the end of the Book of Changes. It points to the fact that every end contains a new beginning. Thus it gives hope to men.

The Book of Changes is a book of the future.

1. [See p. 362.]

2. Note how this situation differs from that in the first line of the preceding hexagram.

64 BEFORE COMPLETION

MANAGERIAL ISSUE:

The CEO - managing the corporate turnaround or transition from Yin to Yang.

Hexagram 64 advises the CEO to prepare to turn his corporation around under extremely difficult conditions, to practically bring it back from the brink. Hexagram 64 refers to the corporation’s period of transition or turnaround, where the old YIN turns into the new YANG. This is the light at the end of the tunnel. This is the limit, which creates the balance. Neither the YANG nor the YIN can completely destroy the other. One may push the other to what would seem the edge, but the Universe has ordained that there be a limit to how much one can push the other. This Hexagram contains an important lesson for the CEO. It is a lesson of hope. He must keep the faith at all times, even when it would appear that everything is lost. It is said that the darkest moment is just before dawn. This is the case of Advanced Micro Devices, when Intel was about to destroy it.

While Hexagram 63 refers to a period in which summer turns to winter, Hexagram 64 refers to a period where winter turns to spring. The CEO faces the OLD YIN which is about to turn into a New YANG. This is usually one of the most difficult conditions.

The CEO’s responsibility is such that the I Ching describes it as: "nothing less than that of leading the world Out of confusion back to order.”

However, success is there, provided the CEO moves carefully: “But it is a task that promises success, because there is a goal that can unite the forces now ending in different directions. At first, however, one must move warily, like an old fox walking over ice.”

Everything in this Universe, including corporations, is subject to the YANG/YIN cycle, regardless of time, space or matter. Nothing can escape it. The symbol YANG/YIN not only applies to the macrocosm but also to the microcosm. To find the solution to a problem, we must

1) Visualize the YIN/YANG symbol,

2) Ascertain which of the eight YIN/YANG elements correspond with the present circumstances.

3) Determine where are we located within these YIN/YANG elements,

4) Decide the direction and the strategy to move within these elements.

Much like a map, the YIN/YANG symbol helps us to orient ourselves and find the proper balance.

MANAGERIAL LESSON:

The Superior CEO knows he can turn the corporation around or make it profitable once again provided he:

1) Establishes a common goal to unite all the employees around this goal.

2) Has the right vision. Success may lie in the CEO’s ability to pull together the YANG/YIN forces to reach a common goal rather than to let these two forces pull in opposite directions. However, for these forces to reach a common goal, they must share the CEO’s vision, otherwise his own bias will pull him in the wrong direction.

3) Performs an in-depth analysis of all corporate assets to properly allocate them at the right time and at the right place. As a good general, whose success lies in the correct allocation of material and personnel, the CEO’s success will depend on his ability to properly allocate the corporate assets. The proper balance between the YANG and YIN assets creates success. But the danger lies in the CEO’s weakness. He will fail in both circumstances, allowing either the YANG personnel to rush him into foolish actions with too much YANG or the YIN personnel to keep him paralyzed with too much YIN. However, should he balance the opposite views as two views of the same issue, then he has a chance to succeed.

4) Shows prudence and carefully weighs every move. Prudence is always better than wisdom. The image for the CEO to imitate is that of a fox crossing the ice. An experienced CEO, much like an experienced fox, will be cautious and alert, carefully measuring every step when looking for the safest way out. While the inexperienced CEO, much like the inexperienced fox, will rush boldly ahead without much thought, putting all his efforts at risk just as he is about to reach his goals.

The I Ching says: "deliberation and caution are the prerequisites for success."

INVESTMENT ADVICE:

For the investor, the Before Completion represents in general a favorable Time-Space to invest.

By itself (no lines), the Time-Space points to Success provided the CEO moves with caution: “But it is a task that promises success, because there is a goal that can unite the forces now ending in different directions. At first, however, one must move warily, like an old fox walking over ice.”

BEFORE COMPLETION.

Success.

But if the little fox, after nearly completing the crossing,

Gets his tail in the water,

There is nothing that would further.

The conditions are difficult. The task is great and full of responsibility. It is nothing less than that of leading the world out of confusion back to order. But it is a task that promises success, because there is a goal that can unite the forces now tending in different directions. At first, however, one must move warily, like an old fox walking over ice. The caution of a fox walking over ice is proverbial in China. His ears are constantly alert to the cracking of the ice, as he carefully and circumspectly searches out the safest spots. A young fox who as yet has not acquired this caution goes ahead boldly, and it may happen that he falls in and gets his tail wet when he is almost across the water. Then of course his effort has been all in vain. Accordingly, in times "before completion," deliberation and caution are the prerequisites of success.

The lines, however, present two good possibilities to invest: Good Fortune in the second, the fourth and the fifth lines. There is one which is negative and points to Misfortune Danger (in the third place). The rest are not positive enough to present an investment opportunity.

The following are cases of corporations under the Before Completion Time-Space:

Applied Materials, Inc. AMAT under CEO Michael R. Splinter

(Read at the end of the Hexagram)

THE LINES

SIX IN THE FIRST PLACE

Managerial Issue: The CEO - managing the corporate turnaround or transition from Yin to Yang – holding back the urge to rush into an apparent solution.

Managerial Lesson: Be prudent.

Managerial Warning: At the first stage of the Before Completion, the CEO is tempted to advance too fast to achieve his goal.

Managerial Advice: The Superior CEO knows that rushing into an apparent solution is never the answer. Such attitude is even worse if the CEO does it when the times are not propitious.

Investment Advice: Do not invest

NINE IN THE SECOND PLACE

Managerial Issue: The CEO - managing the corporate turnaround or transition from Yin to Yang – waiting patiently.

Managerial Lesson: Be patient.

Managerial Warning: At the second stage of the Before Completion, the CEO must be patient as well as alert.

Managerial Advice: The Superior CEO recognizes the times – this is a time to:

· Wait patiently. The times are not auspicious and he lacks the proper financial strength or assets. This is not, however, the undefined patience (procrastination?) of general McClelland, which bordered on cowardice.

· To remain calm. This is not a time to move, but rather a time to nurture the corporation’s profitability and to save unnecessary expenses and costs for a more propitious moment.

· Hold back the young YANG forces, which are not strong enough yet to reach the goal. It is the CEO’s responsibility to:

o Nurture them first so that he may unleash them at the proper time, and

o Keep an eye on the goal at all times as a means to stay in the right course during this period of difficulties.

Investment Advice: Do not invest. Look for a better investment

SIX IN THE THIRD PLACE

Managerial Issue: The CEO - managing the corporate turnaround or transition from Yin to Yang – when the time to make a move is approaching.

Managerial Lesson: Be prepared.

Managerial Warning: At the third stage of the Before Completion, the CEO must wait patiently because even though the time might the right one to make a move, the corporation is not strong enough yet to reach its goal.

Managerial Advice: The Superior CEO knows his main goal is to move at the right time with the right corporate assets. If he does not have the right assets, he must find them. The Superior CEO looks for both human as well as financial resources outside the corporation. If necessary, he studies the possibility of a merger to strengthen the corporation. What is important, is that he will make his move only when the timing and the resources are the proper ones in the same way General Montgomery would move.

Investment Advice: Do not invest

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO - managing the corporate turnaround or transition from Yin to Yang – unleashing all his resources at the proper time to reach the corporate goals.

Managerial Lesson: Be effective.

Managerial Warning: At the fourth stage of the Before Completion, the CEO must make his move.

Managerial Advice: The Superior CEO knows that when the time comes for him to make his move, he must:

· Be resolute.

· Kill all dissenting voices -doubts may be voiced before D-day comes, but not once D-day starts.

· Be aggressive, otherwise he shouldn't even move. And

· Implement his plans once the goals are reached. The Superior CEO must realize that battle plans might be important, but it is the implementation of future plans once the battle has been won that will carry the corporation into the future.

Investment Advice: Invest

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO - managing the corporate turnaround or transition from Yin to Yang – managing success.

Managerial Lesson: Be successful.

Managerial Warning: At the fifth stage of the Before Completion, the CEO turns his corporation around. He has properly commandeered the corporate assets. He has reached his goal. The effort was certainly well worth it. He is now the very image of success. Everyone loves him because everyone loves a winner. He is now one of the new icons in the world of management. The I Ching advises the CEO that the successful crossing from almost certain bankruptcy to success makes the CEO’s triumph all the more noteworthy, and thus of greater value in the eyes of investors.

Managerial Advice: The Superior CEO enjoys his victory.

Investment Advice: Invest

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO - managing the corporate turnaround or transition from Yin to Yang – managing its proper place in the industry.

Managerial Lesson: Be humble.

Managerial Warning: At the sixth stage of the Before Completion, the I Ching describes a successful CEO who has brought the corporation from the brink of bankruptcy to success. The corporation has gained its place in the industry. Even the most arrogant industry leader amongst his competitors must acknowledge the CEO’s courage and accept his rightful place in the industry, even if begrudgingly.

Managerial Advice: The Superior CEO is humble in victory. He neither lets success go to his head and nor allows arrogance to take a hold of the corporation. He knows that as long as he remains humble, he will keep sober and prudent. This alone will command the respect and the fear of his fellow CEOs.

Investment Advice: Do not invest

The I Ching says in its final note: “The hexagram AFTER COMPLETION represents a gradual transition from a time of ascent past a peak of culture to a time of standstill. The hexagram BEFORE COMPLETION represents a transition from chaos to order. This hexagram comes at the end of the Book of Changes. It points to the fact that every end contains a new beginning. Thus it gives hope to men. The Book of Changes is a book of the future.”

MANAGERIAL CASES

Applied Materials, Inc. AMAT under CEO Michael R. Splinter

Michael Splinter’s Performance: ROI= (0.61%) Annualized Return= (0.071%)

SPY’s Performance: ROI= 54.97% Annualized Return= 5.07%

Michael R. Splinter became CEO of Applied Materials in April of 2003.

Since his appointment, his performance has been poor, underperforming the SPY by quite a margin. In essence, his performance has been a lost decade for the investors.

Because he has been CEO for almost a decade, we asked the Oracle once more about his future Time-Space: Before Completion.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 64 - Wei Chi - Before Completion

This hexagram indicates a time when the transition from disorder to order is not yet completed. The change is indeed prepared for, since all the lines in the upper trigram are in relation to those in the lower (1). However, they are not yet in their places. While the preceding hexagram offers an analogy to autumn, which forms the transition from summer to winter, this hexagram presents a parallel to spring, which leads out of winter's stagnation into the fruitful time of summer. With this hopeful outlook the Book of Changes comes to its close.

THE JUDGMENT

BEFORE COMPLETION.

Success.

But if the little fox, after nearly completing the crossing,

Gets his tail in the water,

There is nothing that would further.

2) THE ADVICE

Fire over water: The image of the condition before transition.

Thus the superior man is careful

In the differentiation of things,

So that each finds its place.

When fire, which by nature flames upward, is above, and water, which flows downward, is below, their effects take opposite directions and remain unrelated. If we wish to achieve an effect, we must first investigate the nature of the forces in question and ascertain their proper place. If we can bring these forces to bear in the right place, they will have the desired effect, and completion will be achieved. But in order to handle external forces properly, we must above all arrive at the correct standpoint ourselves, for only from this vantage can we work correctly.

3) THE LINES:

Six in the third place means:

Before completion, attack brings misfortune.

It furthers one to cross the great water.

The time of transition has arrived, but one lacks the strength to complete the transition. If one should attempt to force it, disaster would result, because collapse would then be unavoidable. What is to be done? A new situation must be created; one must engage the energies of able helpers and in this fellowship take the decisive step - cross the great water. Then completion will become possible.

NOTE. The hexagram AFTER COMPLETION represents a gradual transition from a time of ascent past a peak of culture to a time of standstill. The hexagram BEFORE COMPLETION represents a transition from chaos to order. This hexagram comes at the end of the Book of Changes. It points to the fact that every end contains a new beginning. Thus it gives hope to men. The Book of Changes is a book of the future.

4) THE MOVING HEXAGRAM

HEXAGRAM 50 – Ting - The Caldron

The six lines construct the image of Ting, THE CALDRON; at the bottom are the legs, over them the belly, then come the ears (handles), and at the top the carrying rings. At the same time, the image suggests the idea of nourishment. The Ting, cast of bronze, was the vessel that held the cooked viands in the temple of the ancestors and at banquets. The head of the family served the food from the Ting into the bowls of the guests.1 THE WELL (48) likewise has the secondary meaning of giving nourishment, but rather more in relation to the people. The Ting, as a utensil pertaining to a refined civilization, suggests the fostering and nourishing of able men, which redounded to the benefit of the state. (2)

This hexagram and THE WELL are the only two in the Book of Changes that represent concrete, man-made objects. Yet here too the thought has its abstract connotation. Sun, below, is wood and wind; Li, above, is flame. Thus together they stand for the flame kindled by wood and wind, which likewise suggests the idea of preparing food.

THE JUDGMENT

THE CALDRON.

Supreme good fortune.

Success.

While THE WELL relates to the social foundation of our life, and this foundation is likened to the water that serves to nourish growing wood, the present hexagram refers to the cultural superstructure of society. Here it is the wood that serves as nourishment for the flame, the spirit. All that is visible must grow beyond itself, extend into the realm of the invisible. Thereby it receives its true consecration and clarity and takes firm root in the cosmic order.

Here we see civilization as it reaches its culmination in religion. The Ting serves in offering sacrifice to God. The highest earthly values must be sacrificed to the divine. But the truly divine does not manifest itself apart from man. The supreme revelation of God appears in prophets and holy men. To venerate them is true veneration of God. The will of God, as revealed through them, should be accepted in humility; this brings inner enlightenment and true understanding of the world, and this leads to great good fortune and success.

THE IMAGE

Fire over wood: The image of THE CALDRON.

Thus the superior man consolidates his fate

By making his position correct.

The fate of fire depends on wood; as long as there is wood below, the fire burns above. It is the same in human life; there is in man likewise a fate that lends power to his life. And if he succeeds in assigning the right place to life and to fate, thus bringing the two into harmony, he puts his fate on a firm footing. These words contain hints about the fostering of life as handed on by oral tradition in the secret teachings of Chinese yoga,