Once upon a time in ancient China, there was a notorious bandit by the name of Zhi who led a group of outlaws. Together, they committed many crimes while evading the authorities.

One day, after another successful heist, they took a break in their hideout, drinking and talking among themselves. Suddenly, a question occurred to one of the outlaws, a young man. He turned to Zhi and asked: "Hey boss, there's something I can't figure out. Why are you the leader? I mean, you're a powerful guy, but some of us are pretty powerful too. Why is it that you lead and we follow? What is your secret?"

The men laughed at this question, but Zhi answered seriously: "It is actually very simple. I follow the principles of being a bandit."

The young man looked confused. "Principles? Boss, we got no principles. That's why we're bandits!"

"Ah, that is where you are wrong." Zhi smiled his crooked smile: "Not only do we have principles, but we practice the virtues taught by the sages."

The young man thought Zhi had to be joking. "Virtues? Boss, the sages are the highest of the high, while we are the lowest of the low. We can't possibly have anything to do with their virtues!"

The men were about to laugh again, but Zhi silenced them with a glare: "Most people think such things as virtues are only for the good, but they are not. They are actually quite harmful to people in general. That is why we have them too. In fact, there are five main virtues in the life of a bandit."

"Five?" The young man looked at his comrades, but they were just as puzzled as he was. Together, they turned to Zhi for his explanation.

Zhi counted them off the fingers of one hand: "A bandit has to be able to figure out where people hide their treasures. This is the virtue of insight, being able to see what others cannot.

"A bandit has to look at a situation and accurately gauge his chance of success. This is the virtue of clarity, the ability to think and calculate clearly.

"A bandit is willing to be the first to go into a heavily guarded mansion. This is the virtue of courage, leading the way with bravery and strength.

"A bandit is also willing to be the last to leave, covering everyone's exit. This is the virtue of honor, sacrificing one's safety to protect one's fellows.

"Lastly, when we are all back here in the lair, I give all of you an equal share of the loot. This is the virtue of fairness – my being benevolent with you, my followers.

"Together, these five virtues are the Tao of the bandit. If you do not have all five, it will be impossible for you to become a great bandit. This is my secret."

All the men thought hard about what Zhi said, but no one could detect any flaws in his reasoning. Finally, the young man spoke again: "Boss, you also said virtues were harmful to people. What did you mean by that?"

"Think about it," Zhi finished his wine. "A good person has to follow the virtues taught by the sages to be the best good person he can be. Bad guys like us also have to follow the virtues taught by the sages to be the best bad guys we can be. Right?"

The men nodded, and the young man agreed: "Yes, that makes sense."

"Look at the world," Zhi continued. "Most people want more than they have, and if they can get away with taking from others, they will. A lot of them don't only because they know they cannot get away with it. This means they are basically poor bandits who have failed to practice the virtues of the sages. Still with me?"

The young man hesitated, then nodded: "I guess I never thought of it that way."

"Men, there is no escaping the concluson," Zhi grinned in triumph. "If everyone follows what the sages teach, then there will be many more bandits out there who excel at robbing and stealing from others like me! Now can you see why the virtues are actually more harmful than beneficial?"

The men were stunned by this realization. The young man's mouth hung open. And then it was Zhi's turn to laugh.

There are two levels of meaning in this story. The first and most obvious level is about the Tao of leadership. This is the part that most people can easily understand.

As the young man expressed in the story, leadership is not about being powerful. Those who seek positions over others through the exercise of power, brute force or physical strength are really more interested in domination. They are not and can never be true leaders.

The virtues that Zhi described are timeless principles that apply not just to leading outlaws, but also to any situation in life where leadership plays a role. For instance, in the world of business we often see situations where an entrepreneur must lead employees, or a manager must lead professional associates. How would they apply Zhi's five virtues?

1.    They must be insightful. Good business leaders possess penetrating and unconventional insights. Sometimes, they see reasons to be cautious when others see only a profitable situation to exploit. Other times, they see opportunities where others see only trouble.

2.    They must be able to make accurate evaluations and assessments. This is particularly crucial in leading the way through hazardous conditions in the economy or the marketplace. It's all about knowing the probabilities and where to place one's bet.

3.    They must embody the principle of action. That is, they must be willing to do what others cannot or will not do. Their willingness is what imparts authority to their delegation of tasks. They must also lead by personal example rather than words. Those who talk more than they deliver may sometimes succeed as critics, but will always fail as leaders.

4.    They must look after their own. They understand that a good team takes care of its members so that every member takes good care of the team. Team loyalty is a powerful force in any enterprise. Great leaders know how to harness this force by offering their loyalty to the team first.

5.    They must always be equitable. Nothing destroys a team faster than a leader who plays favorites. A good leader makes sure that everyone in the team does a fair share of work. No one gets to slack off. When the team wins, a good leader makes sure everyone benefits equally. No one gets left out.

Zhi was able to achieve success as a bandit by following these principles. Similarly, a business leader can enjoy great success as a tycoon, a captain of industry, or just a business owner, simply by doing the same thing. The Tao of leadership is truly universal in its applications.

The second layer of this story is not as easy to understand as the first. This is the part that requires guidance – preferably from an authentic tradition of the Tao. Those who lack such guidance may gloss over this teaching because they do not understand that it is all about the proper perspective on principles and virtues.

We often regard principles and virtues as positive things, but Chuang Tzu realized that they were in fact neutral qualities. Like other tools invented by humans, principles and virtues could be used for good or bad. Ultimately, it all depended on the person wielding the tool rather than the tool itself.

We can understand this idea by considering a serial killer who does his killing in a methodical manner. His goals are horrifying, and yet he may achieve them with the virtues of careful planning and disciplined action.

To make this point in the most memorable way possible, Chuang Tzu constructed a mind-bending narrative in a masterful and humorous way. He looked at our thinking – that virtues were good – and took us down a path that ended with the opposite conclusion. This forces us to examine our assumptions. For some of us, it can also break us out of the conventional concept.

What should be our goal then, if not virtues? Chuang Tzu, like the sages of antiquity, had a ready answer for this. They taught that we should aim for the Tao, which transcended virtues. It is a state where goodness flows naturally, without being forced by morality or dogma. In that state, we have no need of explicit virtues. It is only when we lose this naturalness that we discover the necessity of keeping virtues in mind. Thus, Tao Te Ching chapter 38 says: "The Tao is lost, and then virtue."

This does not mean we should look upon virtues with disdain. By describing the virtues as being one step down from the Tao, the ancient sages are also telling us that if we wish to ascend to the Tao, we must step back up through virtues as an intermediate state.

The sages knew that people might misuse the virtues. Some might become obsessed with them while others might use them as excuses to justify anything. With this story, Chuang Tzu is reminding us that they are merely a means to an end. They can take us closer to the Tao, but once we have mastered them, we need to let them go in order to be naturally virtuous without them. Thus, Tao Te Ching chapter 38 also says: "High virtue is not virtuous / Therefore it has virtue."

Zhi said that if one did not have all the virtues, it would be impossible to become great. Now we can see what this really means and how it applies to life. Recognizing the proper place of virtues in life is the key to learning and using them correctly. It is also the key to embodying the virtues and eventually moving beyond them. This is the innermost, truest essence of the story. Now it all makes perfect sense!

---

If you've enjoyed this dharma talk, please consider supporting this web site by telling a friend, joining the Tea House online forum, or purchasing a book. Thanks!