HEXAGRAM 21: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 21 - Shih Ho - Biting Through

Above LI THE CLINGING, FIRE

Below CHEN THE AROIUSING, THUNDER

This hexagram represents an open mouth (cf. hexagram 27)

with an obstruction (in the fourth place) between the teeth.

As a result the lips cannot meet.

To bring them together one must bite energetically through the obstacle.

Since the hexagram is made up of the trigrams for thunder and for lightning,

it indicates how obstacles are forcibly removed in nature.

· Energetic biting through overcomes the obstacle that prevents joining of the lips;

· the storm with its thunder and lightning overcomes the disturbing tension in nature.

· Recourse to law and penalties overcomes the disturbances of harmonious social life

caused by

o criminals and

o slanderers.

The theme of this hexagram is a criminal lawsuit,

in contradistinction to that of Sung, CONFLICT (6), which refers to civil suits.

THE JUDGMENT

BITING THROUGH has success.

It is favorable to let justice be administered.

When an obstacle to union arises,

energetic biting through brings success.

This is true in all situations.

Whenever unity cannot be established,

the obstruction is due to a talebearer and traitor who is interfering and blocking the way.

To prevent permanent injury,

vigorous measures must be taken at once.

Deliberate obstruction of this sort does not vanish of its own accord.

Judgment and punishment are required to deter or obviate it.

However,

it is important to proceed in the right way.

The hexagram combines

· Li, clarity, and

· Chen, excitement.

· Li is yielding,

· Chen is hard.

Unqualified hardness and excitement

would be too violent in meting out punishment;

unqualified clarity and gentleness

would be too weak.

The two together create the just measure.

It is of moment that

· the man who makes the decisions (represented by the fifth line) is gentle by nature,

while

· he commands respect by his conduct in his position.

THE IMAGE

Thunder and lightning: The image Of BITING THROUGH.

Thus

the kings of former times

made firm the laws

Through clearly defined penalties.

Penalties are the individual applications of the law.

The laws specify the penalties.

· Clarity prevails when mild and severe penalties are clearly differentiated,

· according to the nature of the crimes.

o This is symbolized by the clarity of lightning.

· The law is strengthened by a just application of penalties.

o This is symbolized by the terror of thunder.

This clarity and severity have the effect of instilling respect;

it is not that the penalties are ends in themselves.

· The obstructions in the social life of man increase when there is

o lack of clarity in the penal codes and

o slackness in executing them.

· The only way to strengthen the law is

o to make it clear and

o to make penalties certain and swift.

THE LINES:

Nine at the beginning means:

His feet are fastened in the stocks,

So that his toes disappear.

No blame.

If a sentence is imposed the first time a man attempts to do wrong,

the penalty is a mild one.

Only the toes are put in the stocks.

This prevents him from sinning further and

thus he becomes free of blame.

It is a warning to halt in time on the path of evil.

Six in the second place means:

Bites through tender meat,

So that his nose disappears.

No blame.

It is easy to discriminate between right and wrong in this case;

it is like biting through tender meat.

But

· one encounters a hardened sinner, and, aroused by anger,

· one goes a little too far.

The disappearance of the nose in the course of the bite signifies that indignation blots out finer sensibility.

However,

there is no great harm in this,

because the penalty as such is just.

Six in the third place means:

· Bites on old dried meat

And

· strikes on something poisonous.

Slight humiliation.

No blame.

Punishment is to be carried out by

someone who lacks the power and authority to do so.

Therefore the culprits do not submit.

The matter at issue

· is an old one - as symbolized by salted game - and

· in dealing with it difficulties arise.

This old meat is spoiled:

· by taking up the problem the punisher arouses poisonous hatred against himself, and

· in this way is put in a somewhat humiliating position.

But since punishment was required by the time,

he remains free of blame.

Nine in the fourth place means:

· Bites on dried gristly meat.

· Receives metal arrows.

It furthers one

· to be mindful of difficulties And

· to be persevering.

Good fortune.

· There are great obstacles to be overcome,

· powerful opponents are to be punished.

Though this is arduous, the effort succeeds.

But it is necessary to be

· hard as metal and

· straight as an arrow

to surmount the difficulties.

If one

· knows these difficulties and

· remains persevering,

he attains good fortune.

The difficult task is achieved in the end.

0 Six in the fifth place means:

· Bites on dried lean meat.

· Receives yellow gold.

Perseveringly aware of danger.

No blame.

The case to be decided is

· indeed not easy

· but perfectly clear.

Since we naturally incline to leniency,

we must make every effort to be like yellow gold - that is,

· as true as gold and

· as impartial as yellow, the color of the middle [the mean].

It is only by

remaining conscious of the dangers growing out of the responsibility

we have assumed that

we can avoid making mistakes.

Nine at the top means:

His neck is fastened in the wooden cangue,

So that his ears disappear.

Misfortune.

In contrast to the first line,

this line refers to a man who is incorrigible.

· His punishment is the wooden cangue, and

· his ears disappear under it-that is to say, he is deaf to warnings.

This obstinacy leads to misfortune.2

1. Apart from the meaning of the hexagram as a whole, the single lines are explained as follows: the persons represented by the first and the top line suffer punishment, the others inflict it (see the corresponding lines in hexagram 4, Meng, YOUTHFUL FOLLY).

2. It should be noted here that there is an alternative interpretation of this hexagram, based on the idea, “Above, light (the sun); below, movement."

in this interpretation

· the hexagram symbolizes a market below, full of movement, while the sun is shining in the sky above.

· The allusion to meat suggests that it is a food market.

· Gold and arrows are articles of trade.

· The disappearance of the nose means the vanishing of smell, that is, the person in question is not covetous.

· The idea of poison points to the dangers of wealth,

· and so on throughout.

Confucius says in regard to the nine at the beginning in this hexagram:

"The inferior man

· is not ashamed of unkindness and

· does not shrink from injustice.

· If no advantage beckons

o he makes no effort.

· If he is not intimidated

o he does not improve himself, but

· if he is made to behave correctly in small matters

o he is careful in large ones.

This is fortunate for the inferior man."

On the subject of the nine at the top Confucius says:

· "If good does not accumulate,

o it is not enough to make a name for a man.

· If evil does not accumulate,

o it is not strong enough to destroy a man.

Therefore

the inferior man thinks to himself,

· 'Goodness in small things has no value,'

o and so neglects it.

· He thinks, 'Small sins do no harm,'

o and so does not give them up.

Thus

· his sins accumulate until they can no longer be covered up, and

· his guilt becomes so great that it can no longer be wiped out."

21 BITING THROUGH

MANAGERIAL ISSUE:

The CEO – resolutely biting through/executing his punishment for the benefit of the corporation

Hexagram 21 focuses on the CEOs need to bite through or to be resolute in his efforts to reach his goals. Hexagram 21 has the shape of an open mouth ready to eat, with something hard between its teeth preventing it from closing shut. Under these circumstances, the I Ching recommends that the only way to accomplish the objective of eating is to bite through with all the strength and decision possible to break any obstacles. This points out that sometimes, the only out for the CEO is to apply brute force to overcome any obstacles or to punish the guilty.

MANAGERIAL LESSON:

The Superior CEO:

1) When he finds something or someone (internal or external - such as a suit) that opposes the union or consolidation of his corporation or threatens it in anyway, will ruthlessly eliminate it on the spot and will do it with all his might. The Superior CEO realizes that any problem in whatever form it might come, or anyone who undermines the main objective of the corporation is harmful for the corporation and should be eliminated.

If the problem is a person, he is someone who will never agree with the CEO, and if he stays for long he will become a permanent threat to the corporation. By acting with all his strength and energy and making an example out of him, the CEO will be sending a very clear message for others to avoid that kind of behavior. The employees will understand that the CEO can act without fear and inflict damage when and if necessary. Nevertheless, the act of punishment should be justified or it would become an act of vengeance. In this way no one will fear but rather hate the CEO. The CEO’s strength consists in knowing he has the power.
If the problem is external, he must attack it resolutely (e.g. a lawsuit with a battery of lawyers.)

2) Makes sure everyone follows the rules of the corporation and punishes anyone who breaks them, regardless of rank. Law and compliance must have a real meaning. However, the Superior CEO differentiates between minor and major faults. He knows a CEO must have a very clear idea as to the difference between those acts that endanger the corporation and are very serious and those acts that do not endanger the corporation and should be considered minor transgressions. The Superior CEO also knows how to apply the necessary punishment according to the seriousness of the situation. The punishment must be clear, it must mark a clear difference between an act of just punishment and an act of vengeance, and it must be promptly executed. Only then will the employees follow and respect the rules.

· The I Ching says: “Penalties are the individual applications of the law. The laws specify the penalties. Clarity prevails when mild and severe penalties are clearly differentiated, according to the nature of the crimes. This is symbolized by the clarity of lightning. The law is strengthened by a just application of penalties. This is symbolized by the terror of thunder. This clarity and severity have the effect of instilling respect; it is not that the penalties are ends in themselves. The obstructions in the social life of man increase when there is lack of clarity in the penal codes and slackness in executing them. The only way to strengthen the law is to make it clear and to make penalties certain and swift”.

INVESTMENT ADVICE:

For the investor, the Biting Through is in general an unfavorable Time-Space to invest.

By itself (no lines) the Hexagram is positive because it points to success provided the CEO knows how to administer justice.

BITING THROUGH has success.

It is favorable to let justice be administered.

When an obstacle to union arises, energetic biting through brings success. This is true in all situations. Whenever unity cannot be established, the obstruction is due to a talebearer and traitor who is interfering and blocking the way. To prevent permanent injury, vigorous measures must be taken at once. Deliberate obstruction of this sort does not vanish of its own accord. Judgment and punishment are required to deter or obviate it.

However, it is important to proceed in the right way. The hexagram combines Li, clarity, and Chen, excitement. Li is yielding, Chen is hard. Unqualified hardness and excitement would be too violent in meting out punishment; unqualified clarity and gentleness would be too weak. The two together create the just measure. It is of moment that the man who makes the decisions (represented by the fifth line) is gentle by nature, while he commands respect by his conduct in his position.

The lines are not very favorable. Only the fourth line points to Good Fortune. A CEO under the Biting Through Time-Space has to overcome obstacles with utmost determination. Under such difficult circumstances, most CEOs fail.

The following cases are those of corporations under the Biting Through Time-Space:

· Merck & Co. Inc. MRK under CEO Kenneth C. Frazier

THE LINES:

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – punishing a first time offender to correct behavior

Managerial Lesson: Be forgiving.

Managerial Warning: At the first stage of the Biting Through Time-Space, the I Ching warns the CEO he should be mild in punishing a first time offender.

Managerial Advice: The Superior CEO:

· Understands that punishment for a first time offender should be quick but light because the damage is light. By executing his punishment fairly and quickly, the Superior CEO manages to stop the damage before it gets worst. This is good for the corporation and for the guilty party.

· Is smart enough to turn defeats into victories and failures into success because he can still correct and save the guilty employee and eventually incorporate him into a managerial position. The application of the punishment will not end up in an immediate profitable situation, but will create the proper environment for harmony in the corporation.

What would have happened if Walter Wriston of Citibank had fired John Reed for his mistakes in issuing Visa cards to the wrong people? Or if Thomas Watson of IBM had fired the manager who had cost him $10 million (“How can I fire you? We just spent $10 million educating you”). The Superior CEO knows what Henry Ford would always say: “Failure is the opportunity to begin again more intelligently”

Investment Advice: Do not invest.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – incurring in excessive punishment.

Managerial Lesson: Be prudent.

Managerial Warning: At the second stage of the Biting Through Time-Space, the I Ching describes a CEO who finds a guilty party who is very much set in his ways of doing what he pleases and in getting away with it. The CEO over reacts in the punishment because he lets himself be carried away by his anger, deeply affecting his objectivity.

Managerial Advice: The Superior CEO never lets anger carry him away when applying punishments, even if people eventually find the punishment acceptable and no harm comes out of it.

However, the I Ching advises the CEO that in this particular case, it is better to go overboard in punishing rather than letting the guilty party go unpunished.

Investment Advice: Do not invest.

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation - punishing without authority.

Managerial Lesson: Be credible.

Managerial Warning: At the third stage of the Biting Through Time-Space, the I Ching describes a CEO who finds the guilty party but does not have yet enough authority to apply the necessary punishment. This makes the guilty party, who during a long time has abused his position within the corporation, feel even stronger.

Managerial Advice: The I Ching advises the Board of Directors as well as the Superior CEO as follows:

· The Board of Directors must give the CEO sufficient power and authority together with the responsibilities, so that he may punish any employee as he sees best fit, and

· The Superior CEO must apply the punishments and be resolute (Biting Through) in carrying them out even if he does not have sufficient authority. In this way he will reach his objective, obtain the favor of Heaven and succeed.

In this case, the CEO manages to apply the punishment and to hold firmly to his position. Even though he passes through very difficult moments because of the internal fight his punishment causes within the corporation, he applies it without harming the corporation or his own reputation. In the end, however, the CEO’s punishment is not beneficial for the corporation.

Investment Advice: Do not invest.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation - punishing a very powerful group within the company

Managerial Lesson: Be resolute.

Managerial Warning: At the fourth stage of the Biting Through Time-Space, the I Ching warns the CEO he has to punish powerful opponents.

Managerial Advice: The Superior CEO:

· Applies the punishment even though it will be difficult to do so. And

· Keeps an inflexible position in applying the punishment even though it might take time. The Superior CEO knows he will eventually be proven right and save the corporation. The punishment is beneficial for the corporation.

Investment Advice: Invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation - facing the danger of wavering in punishing the guilty.

Managerial Lesson: Be persevering.

Managerial Warning: At the fifth stage of the Biting Through Time-Space, the I Ching describes a CEO who knows the guilty parties and their misdeeds; nevertheless, because of his natural tendency to be lenient, he fails to apply any punishment. The I Ching warns the CEO that to avoid applying punishments because of one’s own personal feelings will be bad managerial practice. A CEO is weak if he only emphasizes the positive and does not have the inner strength to apply any punishment. The lack of punishment is harmful to the corporation.

Managerial Advice: The Superior CEO is aware that when he assumes his leadership role, he assumes a heavy responsibility. Such heavy responsibility implies risks and dangers. If the CEO maintains awareness of such risks and dangers, he will avoid making mistakes. The Superior CEO is true, fair and impartial.

Investment Advice: Do not invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – resolutely biting through in his punishments for the benefit of the corporation – deliberately failing to punish his own and worst offender.

Managerial Lesson: Be impartial.

Managerial Warning: At the sixth stage of the Biting Through Time-Space, the I Ching describes an incorrigible CEO who refuses to listen when it comes to the guilt of some of his managers. He fails in both: his resoluteness to eliminate them on the spot, and his use of the strength the Biting Through Time-Space demands. No CEO is blinder than the CEO who refuses to see.

Managerial Advice: The Superior CEO recognizes that if he wants to be able to apply the necessary punishments to keep order, he must be willing to accept the guilt of others, especially of his closest aides.

Investment Advice: Do not invest.

MANAGERIAL CASES

Merck & Co. Inc. MRK under CEO Kenneth C. Frazier

Kenneth C. Frazier became CEO of Merck on December 1, 2011. It is still too early to measure his performance; however, as the top line warns him, he will have an extremely difficult time with the Biting Through Time-Space. May be the Moving Hexagram will cause him so much shock that he will mend his ways.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 21 - Shih Ho - Biting Through

This hexagram represents an open mouth (cf. hexagram 27) with an obstruction (in the fourth place) between the teeth. As a result the lips cannot meet. To bring them together one must bite energetically through the obstacle. Since the hexagram is made up of the trigrams for thunder and for lightning, it indicates how obstacles are forcibly removed in nature. Energetic biting through overcomes the obstacle that prevents joining of the lips; the storm with its thunder and lightning overcomes the disturbing tension in nature. Recourse to law and penalties overcomes the disturbances of harmonious social life caused by criminals and slanderers. The theme of this hexagram is a criminal lawsuit, in contradistinction to that of Sung, CONFLICT (6), which refers to civil suits.

THE JUDGMENT

BITING THROUGH has success.

It is favorable to let justice be administered.

2) THE ADVICE

Thunder and lightning: The image Of BITING THROUGH.

Thus the kings of former times made firm the laws

Through clearly defined penalties.

Penalties are the individual applications of the law. The laws specify the penalties. Clarity prevails when mild and severe penalties are clearly differentiated, according to the nature of the crimes. This is symbolized by the clarity of lightning. The law is strengthened by a just application of penalties. This is symbolized by the terror of thunder. This clarity and severity have the effect of instilling respect; it is not that the penalties are ends in themselves. The obstructions in the social life of man increase when there is lack of clarity in the penal codes and slackness in executing them. The only way to strengthen the law is to make it clear and to make penalties certain and swift.

3) THE LINES:

Nine at the top means:

His neck is fastened in the wooden cangue,

So that his ears disappear.

Misfortune.

In contrast to the first line, this line refers to a man who is incorrigible. His punishment is the wooden cangue, and his ears disappear under it-that is to say, he is deaf to warnings. This obstinacy leads to misfortune.2

2. It should be noted here that there is an alternative interpretation of this hexagram, based on the idea, “Above, light (the sun); below, movement." in this interpretation the hexagram symbolizes a market below, full of movement, while the sun is shining in the sky above. The allusion to meat suggests that it is a food market. Gold and arrows are articles of trade. The disappearance of the nose means the vanishing of smell, that is, the person in question is not covetous. The idea of poison points to the dangers of wealth, and so on throughout.

On the subject of the nine at the top Confucius says:

"If good does not accumulate, it is not enough to make a name for a man. If evil does not accumulate, it is not strong enough to destroy a man. Therefore the inferior man thinks to himself, 'Goodness in small things has no value,' and so neglects it. He thinks, 'Small sins do no harm,' and so does not give them up. Thus his sins accumulate until they can no longer be covered up, and his guilt becomes so great that it can no longer be wiped out."

4) THE MOVING HEXAGRAM

HEXAGRAM 51 – Chen - The Arousing (Shock, Thunder)

The hexagram Chen represents the eldest son, who seizes rule with energy and power. A yang line develops below two yin lines and presses upward forcibly. This movement is so violent that it arouses terror. It is symbolized by thunder, which bursts forth from the earth and by its shock causes fear and trembling.

THE JUDGMENT

Shock brings success.

Shock comes-oh, oh!

Laughing words-ha, ha!

The shock terrifies for a hundred miles,

And he does not let fall the sacrificial spoon and chalice.

The shock that comes from the manifestation of God within the depths of the earth makes man afraid, but this fear of God is good, for joy and merriment can follow upon it.

When a man has learned within his heart what fear and trembling mean, he is safeguarded against any terror produced by outside influences. Let the thunder roll and spread terror a hundred miles around: he remains so composed and reverent in spirit that the sacrificial rite is not interrupted. This is the spirit that must animate leaders and rulers of men - a profound inner seriousness from which all outer terrors glance off harmlessly.

THE IMAGE

Thunder repeated: the image of SHOCK.

Thus in fear and trembling

The superior man sets his life in order

And examines himself.

The shock of continuing thunder brings fear and trembling. The superior man is always filled with reverence at the manifestation of God; he sets his life in order and searches his heart, lest it harbor any secret opposition to the will of God. Thus reverence is the foundation of true culture.