Five Basic Elements of the Universe

Chinese Wisdom

The Five Basic Elements are Fire, Earth, Water, Metal, and Wood.

These elements are understood as different types of energy in a state of constant interaction and flux with one another.

The Five Elements do not only mean Fire, Earth, Water, Metal, and Wood. They also mean Movement, Change, and Development. They are changing, moving, waning, and expanding all the time.

 

 

Balanced Company

The most important of all is the balance of all five elements. The movements of five elements are stable and predictable when they are in balance, and vice versa.

         

 

Business Classification

according to the theory of Five Basic Elements

 

   

 

 

 

 

Balanced Company

  

 

 

Affinity Relationships between Five Basic Elements

  
 

Water can help tree (Wood) grow

Customer success fuels systemic innovation and helps the tree of business grow
 

Wood can help Fire to burn

Innovation helps achieve corporate vision

 

Fire can help to produce dust (Earth)

Corporate vision defines the organisational structure
 

Earth can help mineral (Metal) to form

Organisational structure defines processes
 

Metal can hold Water

Processes and love for customers help win customers over and retain them

   

 

Enmity Relationships between Five Basic Elements

  
 

Water quenches Fire

Short-term goals focused on sales success decrease the perceived importance of the corporate vision and strategic intent
 

Fire melts Metal

Daring top-line growth strategies require radical change of established processes and cause resistance to change
 

Metal chops Wood

Over-empowered employees diffuse distinctive corporate capabilities that serve as the main source of sustainable competitive advantage
 

Wood parts Earth

Radical innovation projects need to be insulated from the main business because innovation and operations require radically different approaches to management
 

Earth absorbs Water

Corporate bureaucracy slows value innovation down and diminishes customer results