HEXAGRAM 18: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 18 – Ku - Work on What Has Been Spoiled (Decay)

Above KEN KEEPING STILL, MOUNTAIN

Below SUN THE GENTLE, WIND

The Chinese character Ku represents a bowl

in whose contents worms are breeding.

This means decay.

It has come about because

· the gentle indifference of the lower trigram has come together with

· the rigid inertia of the upper, and

the result is stagnation.

Since this implies guilt,

the conditions embody a demand for removal of the cause.

Hence the meaning of the hexagram is

· not simply "what has been spoiled"

· but "work on what has been spoiled."

THE JUDGMENT

WORK ON WHAT HAS BEEN SPOILED

Has supreme success.

It furthers one to cross the great water.

Before the starting point, three days.

After the starting point, three days.

What has been spoiled through man's fault can be made good again through man's work.

· It is not immutable fate, as, in the time of STANDSTILL,

that has caused the state of corruption,

· but rather the abuse of human freedom.

Work toward improving conditions promises well,

because it accords with the possibilities of the time.

We

· must not recoil from work and danger –

symbolized by crossing of the great water - but

· must take hold energetically.

Success depends, however, on proper deliberation.

This is expressed by the lines,

· "Before the starting point, three days.

· After the starting point, three days."

We must first know the causes of corruption

before we can do away with them;

hence it is necessary to be cautious during the time before the start.

Then

we must see to it that the new way is safely entered upon, so that

a relapse may be avoided;

therefore

we must pay attention to the time after the start.

· Decisiveness and

· energy

must take the place of the

· inertia and

· indifference

that have led to decay,

in order that the ending may be followed by a new beginning.

THE IMAGE

The wind blows low on the mountain: The image Of DECAY.

Thus the superior man

· stirs up the people And

· strengthens their spirit.

· When the wind blows low on the mountain,

· it is thrown back and spoils the vegetation.

This contains a challenge to improvement.

It is the same with

· debasing attitudes and

· fashions;

they corrupt human society.

To do away with this corruption,

the superior man must regenerate society.

His methods likewise must be derived from the two trigrams,

but in such a way that their effects unfold in orderly sequence.

The superior man

· must first remove stagnation by stirring up public opinion,

o as the wind stirs everything, and

· must then strengthen and tranquilize the character of the people,

o as the mountain gives tranquility and nourishment to all that grows in its vicinity.

THE LINES

Six at the beginning means:

Setting right what has been spoiled by the father.

If there is a son,

No blame rests upon the departed father.

Danger.

In the end good fortune.

Rigid adherence to tradition has resulted in decay.

But the decay

· has not yet penetrated deeply and

· so can still be easily remedied.

It is as if a son were compensating for the decay his father allowed to creep in.

Then no blame attaches to the father.

However,

one must not

· overlook the danger or

· take the matter too lightly.

Only if

one is conscious of the danger connected with every reform

will everything go well in the end.

Nine in the second place means:

Setting right what has been spoiled by the mother.

One must not be too persevering.

This refers to mistakes that as a result of weakness have brought about decay –

hence the symbol, "what has been spoiled by the mother."

In setting things right in such a case,

a certain gentle consideration is called for.

In order not to wound,

one should not attempt to proceed too drastically.

Nine in the third place means:

Setting right what has been spoiled by the father.

There will be a little remorse.

No great blame.

This describes a man who proceeds a little too energetically

in righting the mistakes of the past.

Now and then, as a result,

· minor discords and

· annoyances

will surely develop.

But too much energy is better than too little.

Therefore, although

· he may at times have some slight cause for regret,

· he remains free of any serious blame.

Six in the fourth place means:

Tolerating what has been spoiled by the father.

In continuing one sees humiliation.

This shows the situation of

someone too weak to take measures against decay that

· has its roots in the past and

· is just beginning to manifest itself.

It is allowed to run its course.

If this continues, humiliation will result.

0 Six in the fifth place means:

Setting right what has been spoiled by the father.

One meets with praise.

An individual is confronted with corruption originating from neglect in former times.

He lacks the power to ward it off alone, but with able helpers

· he can at least bring about a thorough reform, if

· he cannot create a new beginning,

and this also is praiseworthy.

Nine at the top means:

He does not serve kings and princes,

Sets himself higher goals.

Not every man has an obligation to mingle in the affairs of the world.

There are some who are developed to such a degree that

they are justified

· in letting the world go its own way and

· in refusing to enter public life with a view to reforming it.

But this does not imply a right

· to remain idle or

· to sit back and merely criticize.

Such withdrawal is justified only when

we strive to realize in ourselves the higher aims of mankind.

For although

· the sage remains distant from the the turmoil of daily life,

· he creates incomparable human values for the future.

1. Goethe's attitude after the Napoleonic wars is an example of this in European history.

18 WORKING ON WHAT HAS BEEN SPOILED (DECAY)

REPAIRING THE DAMAGE DONE BY PREVIOUS MANAGEMENT

MANAGERIAL ISSUE:

Hexagram 18 focuses on the CEO’s efforts to repair the damage done by the previous management.

The I Ching’s image of this condition: “Ku represents a bowl in whose contents worms are breeding.”

Such condition is the result of:

• Previous management’s refusal to change.

This resulted in the

• Employees complete indifference for the well-being of the corporation

MANAGERIAL LESSON:

The Superior CEO:

1) To save the corporation he must:

a. Energetically take command of the corporation.

1. Change previous management’s inertia by being decisive.

2. Change the employee’s indifference by being energetic.

3. Be cautious in making these changes.

b. Perform an in depth analysis of what brought this corporation to the brink of destruction.

c. Know the causes well – then get rid of them.

d. Remove all causes for the actual condition. .

e. Remove the feeling of guilt created by the previous management.

f. Create a new working environment.

g. infuse a new spirit to the employees

h. Make a detailed follow up to keep control over the plans and the results. .

i. Change the opinion the public has of this corporation as a loser.

j. Make sure the corporation does not relapse to the previous conditions.

2) He has a good chance to rebuild the corporation because:

a. What one CEO destroys, another can rebuild.

b. The times are appropriate for the reconstruction of the corporation given the damage was done by a person and not by a universal cycle. Fate is on his side.

The I Ching says: It is not immutable fate, as, in the time of STANDSTILL that has caused the state of corruption, but rather the abuse of human freedom.

The I Ching advices the CEO in a combination of poetry and wisdom:

The wind blows low on the mountain: The image Of DECAY.

Thus the superior man

· stirs up the people, and

· strengthens their spirit.

The superior man must

· first remove stagnation by

o stirring up public opinion,

§ as the wind stirs everything,

· then strengthen and tranquilize

o the character of the people,

§ as the mountain gives tranquility and nourishment to all that grows in its vicinity.

INVESTMENT ADVICE:

It is difficult to invest in a corporation whose CEO is in the process of working on what has been spoiled (by previous management).

For the investor, the Working On What Has Been Spoiled is in general an unfavorable Time-Space to invest.

By itself (no lines) the Hexagram is positive because the CEO is not up against natural cycles (immutable fate) but rather human conditions (the abuse of human freedom).

WORK ON WHAT HAS BEEN SPOILED

Has supreme success.

It furthers one to cross the great water.

Before the starting point, three days.

After the starting point, three days.

What has been spoiled through man's fault can be made good again through man's work. It is not immutable fate, as, in the time of STANDSTILL, that has caused the state of corruption, but rather the abuse of human freedom. Work toward improving conditions promises well, because it accords with the possibilities of the time. We must not recoil from work and danger - symbolized by crossing of the great water - but must take hold energetically. Success depends, however, on proper deliberation. This is expressed by the lines, "Before the starting point, three days. After the starting point, three days." We must first know the causes of corruption before we can do away with them; hence it is necessary to be cautious during the time before the start. Then we must see to it that the new way is safely entered upon, so that a relapse may be avoided; therefore we must pay attention to the time after the start. Decisiveness and energy must take the place of the inertia and indifference that have led to decay, in order that the ending may be followed by a new beginning.

Even though the Hexagram tends to be positive, this is not the case with the lines. Almost all the lines indicate conditions not favorable for investing except perhaps in the first place or maybe in the fifth place. And even then the investor should proceed with caution.

THE LINES

SIX IN THE FIRST PLACE

Managerial Issue: The CEO – managing to work on what has been spoiled in the corporation - working to fix superficial damages done by the previous CEO (strong character).

Managerial Lesson: Be sincere.

Managerial Warning: At the first stage of the Working On What Has Been Spoiled Time-Space, the I Ching warns the CEO the corporation’s negative tendencies are only skin deep and can still be reversed. In this case, the cause the corporation is in financial difficulties is the previous CEO’s lack of flexibility – his inability to change and to adapt to the new conditions and times has kept this corporation from making innovations in their products and in implementing new managerial practices.

Managerial Advice: The Superior CEO knows he will be successful as long as he maintains the proper attitude: The Superior CEO:

· Does not overlook the dangers - makes a sincere effort to recognize there is a problem.

· Does not take matters lightly – decisively attacks the problem but always keeps in mind that fixing evil implies taking risks.

· Does not keep distant – but is connected with every reform.

Should he manage to correct the previous CEO’s superficial mistakes, public opinion will be kind with the previous CEO’s reputation.

The concept of a CEO naming his own successor to clean up after his mess is nothing new.

Citigroup’s negative tendencies implemented by Sandy Weill were very profound and not skin deep. However, should Vikram Pandit manage to save Citi by cleaning up after Sandy Weill’s mess and dismantling that monstrosity called the Universal Banking Model, he just might save Weill’s deservedly ill reputation.

Investment Advice: Invest. It is a long-term investment.

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing to work on what has been spoiled in the corporation - fixing the previous CEO’s mistakes (weak character).

Managerial Lesson: Be considerate.

Managerial Warning: At the second stage of the Working On What Has Been Spoiled Time Space, the CEO finds the corporate decay was brought about by weakness in creating or implementing policies. However, even though there is still time to fix what caused a weakening in the corporation’s balance sheet, it is not sure the CEO will do so. The same incompetent managers who caused the corporation’s problems with their poor managerial practices might still be around.

Managerial Advice: The Superior CEO is gentle in solving this problem (the CEOs previous mistakes). He knows he must use a proper balance between using too much or too little force. He must do no harm. “Gentle consideration” is required.

Investment Advice: Do not invest.

NINE IN THE THIRD PLACE

Managerial Issue: The CEO – managing to work on what has been spoiled in the corporation – using excessive force to fix previous errors.

Managerial Lesson: Be determined.

Managerial Warning: At the third stage of the Working On What Has Been Spoiled Time Space, the I Ching warns the CEO he will fix the past errors but slightly exceed himself in the application of force.

Managerial Advice: The Superior CEO knows that sometimes it is ok to use excessive force (in this case in particular). Such excessive force might bring about complaints from the employees, but this action would appear to be better than doing nothing at all and thus the I Ching does not see it as a grave fault.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing to work on what has been spoiled in the corporation - too weak to fix the CEO’s previous errors.

Managerial Lesson: Be disciplined.

Managerial Warning: At the fourth stage of the Working On What Has Been Spoiled Time Space, the I Ching warns the CEO neither he nor his new managerial team have the strength to fix the damage done by previous management. The CEO will allow the negative tendencies and past managerial practices to continue its course. The I Ching warns the CEO of the inevitability of his failure. No doubt these practices will lead the corporation to a disaster.

Managerial Advice: The Superior CEO is strong and determinate in eradicating past inefficient practices even when he knows the Time-Space might be against him.

Investment Advice: Do not invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing to work on what has been spoiled in the corporation - dealing with the previous CEO’s mistake - with the help of others.

Managerial Lesson: Be humble.

Managerial Waning: At the fifth stage of the Working On What Has Been Spoiled Time Space, the I Ching warns the CEO he is “confronted with corruption originating from neglect in former times” He must be humble and recognize he does not have the power to:

· Make all changes by himself,

· Create a complete new beginning.

Managerial Advice: The Superior CEO:

· Looks for support from the most capable managers (both external and internal) in fixing the corporation’s problems. He knows he cannot do it alone.

· Recognizes the magnitude of the task when dealing with the poor managerial practices of the previous CEO.

· Is content to make a “thorough reform with his able helpers” even if he cannot make a complete “new beginning”.

Substantial corrections will bring him public recognition even if he cannot correct all the corporation’s problems.

Investment Advice: Do not invest. There might be some positive results, but there are better opportunities.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing to work on what has been spoiled in the corporation – sacrificing the corporations’ needs for those of mankind.

Managerial Lesson: Be true.

Managerial Warning: At the sixth stage of the Working On What Has Been Spoiled Time Space, the I Ching describes a CEO who could get the corporation out of its difficulties should he decide to get involved and stay very much involved. However, this CEO decides to keep himself distant, dedicating his time to great social issues rather than to focus on actual managerial practices that could save the corporation. Even though this might be positive for the greater good of humanity in general, this is not good for the corporation.

The I Ching warns the CEO he might have the right to remain isolated, but not when the interests of the corporation are involved because such an isolationist attitude will damage the corporation.

Managerial Advice: The Superior CEO recognizes both:

· that it is positive for him to remain isolated for the service of mankind because in the long run he will create incomparable human values for the world and

· that it is negative for the corporation should he remain isolated. It would be best to let someone else run the corporation.

The corporation should look for another CEO.

Investment Advice: Do not invest.