HEXAGRAM 24: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 24 – Fu - Return (The Turning Point)

Above K'UN THE RECEPTIVE, EARTH

Below CHEN THE AROUSING, THUNDER

The idea of a turning point arises from

the fact that

· after the dark lines have pushed all of the light lines upward and out of the hexagram,

· another light line enters the hexagram from below.

The time of darkness is past.

The winter solstice brings the victory of light.

This hexagram is linked with the eleventh month,

the month of the solstice (December-January).

THE JUDGMENT

RETURN. Success.

· Going out and coming in without error.

· Friends come without blame.

· To and fro goes the way.

· On the seventh day comes return.

· It furthers one to have somewhere to go.

After a time of decay comes the turning point.

The powerful light that has been banished returns.

There is movement, but

it is not brought about by force.

The upper trigram K'un is characterized by devotion;

thus the movement is natural, arising spontaneously.

For this reason the transformation of the old becomes easy.

· The old is discarded and

· the new is introduced.

Both measures accord with the time;

therefore no harm results.

Societies of people sharing the same views are formed.

But since these groups

· come together in full public knowledge and

· are in harmony with the time,

· all selfish separatist tendencies are excluded, and

· no mistake is made.

The idea of RETURN is based on the course of nature.

· The movement is cyclic, and

· the course completes itself.

Therefore

it is not necessary to hasten anything artificially.

Everything comes of itself at the appointed time.

This is the meaning of heaven and earth.

All movements are accomplished in six stages, and

the seventh brings return.

Thus

· the Winter solstice, with which the decline of the year begins,

o comes in the seventh month after the summer solstice;

so too

· sunrise

o comes in the seventh double hour after sunset.

Therefore

seven is the number of the young light, and

it arises when six, the number of the great darkness, is increased by one.

In this way

the state of rest gives place to movement.

THE IMAGE

Thunder within the earth: The image of THE TURNING POINT.

Thus

· the kings of antiquity closed the passes At the time of solstice.

· Merchants and strangers did not go about, And

· the ruler Did not travel through the provinces.

The winter solstice has always been celebrated in China as the resting time of the year –

a custom that survives in the time of rest observed at the new year.

In winter the life energy, symbolized by thunder, the Arousing is still underground.

Movement is just at its beginning;

therefore

it must be strengthened by rest,

so that it will not be dissipated by being used prematurely.

This principle, i.e., of allowing energy that is renewing itself to be reinforced by rest,

applies to all similar situations.

· The return of health after illness,

· the return of understanding after an estrangement:

everything must be treated tenderly and with care at the beginning,

so that the return may lead to a flowering.

THE LINES

0 Nine at the beginning means:

Return from a short distance.

No need for remorse

Great good fortune.

Slight digressions from the good cannot be avoided, but

one must turn back in time, before going too far.

This is especially important in the development of character;

every faintly evil thought must be put aside immediately, before it

· goes too far and

· takes root in the mind.

Then

· there is no cause for remorse, and

· all goes well.

Six in the second place means:

Quiet return.

Good fortune.

Return always

· calls for a decision and

· is an act of self-mastery.

It is made easier if a man is in good company.

he can

· bring himself to put aside pride and

· follow the example of good men,

good fortune results.

Six in the third place means:

Repeated return.

Danger.

No blame.

There are people of a certain inner instability who

feel a constant urge to reverse themselves.

There is danger in

· continually deserting the good because of uncontrolled desires,

then

· turning back to it again because of a better resolution.

However,

since this does not lead to habituation in evil,

a general inclination to overcome the defect is not wholly excluded.

Six in the fourth place means:

Walking in the midst of others,

One returns alone.

A man

· is in a society composed of inferior people, but

· is connected spiritually with a strong and good friend, and

this makes him turn back alone.

Although nothing is said of reward and punishment,

this return is certainly favorable,

for such a resolve to choose the good brings its own reward.

Six in the fifth place means:

Noblehearted return.

No remorse.

When the time for return has come,

a man

· should not take shelter in trivial excuses, but

· should look within and examine himself.

And if

· he has done something wrong

· he should make a noblehearted resolve to confess his fault.

No one will regret having taken this road.

Six at the top means:

Missing the return. Misfortune.

· Misfortune from within and without.

· If armies are set marching in this way,

One will in the end suffer a great defeat,

· Disastrous for the ruler of the country.

· For ten years It will not be possible to attack again.

· a man misses the right time for return,

· he meets with misfortune.

The misfortune has its inner cause in a wrong attitude toward the world.

The misfortune coming upon him from without results from this wrong attitude.

What is pictured here is

· blind obstinacy and

· the judgment that is visited upon it.

24 RETURN

(THE TURNING POINT)

MANAGERIAL ISSUE:

The CEO – managing his/corporate return/prosperity – joining the superior executives left behind to fix the corporation.

Hexagram 24 is the opposite of the previous Hexagram. In Hexagram 23, the five YIN lines at the bottom representing the inferior executives in control of the corporation pushed out the only YANG line at the top representing the CEO or his influence. In Hexagram 24, however, the CEO returns to the corporation to join the few superior executives remaining and begins the process of returning the corporation back to its previous prosperity.

The shape of Hexagram 24 of one YANG (whole) line at the bottom and five YIN lines (broken) on top indicate that a Superior CEO, whether physically or in terms of his influence, is returning to fix the corporation’s problems caused by the inferior executives’ policies. The CEO is about to join the superior executives he once had to leave, and eliminate the inferior executives even though such task will take him sometime. The fact this Hexagram represents the end of poor management, makes it a positive Hexagram.

This is part of a natural and inevitable cycle of changes. After all the inferior managers had pushed all the superior managers out of the corporation, the superior managers return. This is the Law of Seasonality. The natural forces, which support the Superior CEO, will help him transform the corporation therefore his task will be much easier. The more honest managerial practices, which are more in tune with the present times, will push out the dishonest managerial practices. This is done with the backing of all the superior executives of the corporation and in the open for everyone to see. Whereas before, all managers were working for their own personal interests, now all managers work together for the good of the corporation.

MANAGERIAL LESSON:

The Superior CEO, who intends to turn this corporation around, executes two basic policies: openness and gradual progress.

1) Openness means a continuous communication process. While the inferior executives were secretive in the execution of their plans, the Superior CEO who is reaching out to the superior executives openly communicates both his ideas as well as his plans to execute those ideas.

2) Gradual progress means that in the beginning of a positive cycle of change, the positive forces are too weak to be forced into action. The Superior CEO keeps always in mind that success is assured because it is part of a natural process; therefore there is no reason to rush it. This represents only the beginning of their managerial efforts. This effort cannot be forced, as he could destroy the corporation, just like forcing the growth of any newborn thing.

The Superior CEO relies on his own insight. He perceives the proper time for both: for the return of the corporation to prosperity and for the dismissal of the inferior executives. He knows when to:

Exercise patience,
Gather all the Superior executives
Proclaim openly his strategy for the corporation.

INVESTMENT ADVICE:

For the investor, the RETURN Time-Space in general is propitious for investing even though there are only two good opportunities to invest. The other lines are not clearly defined and therefore perhaps it would be best to look for another alternative in those particular cases.

By itself (no lines) the Hexagram is very positive because it points to the return of all that is positive for the corporation.

RETURN. Success.

Going out and coming in without error.

Friends come without blame.

To and fro goes the way.

On the seventh day comes return.

It furthers one to have somewhere to go.

After a time of decay comes the turning point. The powerful light that has been banished returns. There is movement, but it is not brought about by force. The upper trigram K'un is characterized by devotion; thus the movement is natural, arising spontaneously. For this reason the transformation of the old becomes easy. The old is discarded and the new is introduced. Both measures accord with the time; therefore no harm results. Societies of people sharing the same views are formed. But since these groups come together in full public knowledge and are in harmony with the time, all selfish separatist tendencies are excluded, and no mistake is made.

The idea of RETURN is based on the course of nature. The movement is cyclic, and the course completes itself. Therefore it is not necessary to hasten anything artificially. Everything comes of itself at the appointed time. This is the meaning of heaven and earth.

All movements are accomplished in six stages, and the seventh brings return. Thus the Winter solstice, with which the decline of the year begins, comes in the seventh month after the summer solstice; so too sunrise comes in the seventh double hour after sunset. Therefore seven is the number of the young light, and it arises when six, the number of the great darkness, is increased by one. In this way the state of rest gives place to movement.

The lines are very positive in the beginning (Great Good Fortune in the first place, Good Fortune in the second place). Two lines are neutral (no blame and no remorse) and two are negative.

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

· International Business Machines Corp. IBM under CEO Samuel J. Palmisano

· McDonald's Corp. MCD under CEO Jim Skinner

· Infosys Technologies Ltd. INFY under CEO S. Gopalakrishnan

This is the Hexagram of Jack Welch when he was chosen as the CEO of General Electric:

(Read On Management)

THE LINES:

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing his/corporate return/prosperity – joining the Superior executives left behind to fix the corporation – punishing evil to take control.

Managerial Lesson: Be ruthless.

Managerial Warning: At the first stage of the Return Time-Space, the inferior executives have managed to barely contaminate the corporation.

Managerial Advice: The Superior CEO who wishes to turn around his corporation has zero tolerance for misconduct, not matter how small. He eliminates all the inferior executives completely and aggressively roots out their negative attitude.

Investment Advice: Invest fully.

SIX IN THE SECOND PLACE

Managerial Issue: The CEO – managing his/corporate return/prosperity – joining the Superior executives left behind to fix the corporation – turning the corporation around out of conviction and will power.

Managerial Lesson: Be decisive.

Managerial Warning: At the second stage of the Return Time-Space, the CEO turns the corporation around by reaching out for the superior executives left in the corporation. Together they return to take control of the corporation in spite of the bad treatment they were subjected to previously.

Managerial Advice: The Superior CEO makes sure the change brought about to the corporation is real and deep. He allows the superior executives to bring back their entire teams without any opposition. This will encourage the superior executives to perform much better, will provide the CEO with the strength to fire the inferior executives and, what is even better, will rub off on the attitude of the CEO. Superior executives will always gather together as like attracts like.

Investment Advice: Invest.

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – managing his/corporate return/prosperity – joining the Superior executives left behind to fix the corporation – hesitating on taking control.

Managerial Lesson: Be decisive.

Managerial Warning: At the third stage of the Return Time-Space, the CEO risks being ambivalent. He seems unclear about who should have the complete control of the corporation. Sometimes he gives power to the Superior executives and at other times he gives power to the inferior executives who still keep a certain amount of control.

Managerial Advice: The Superior CEO is decisive. He knows Indecisiveness is a weakness that would endanger the corporation. And even if he were to show some ambivalence, there will be no great damage to the corporation because finally the Superior CEO will realize his error and eliminate the inferior executives once and for all.

Investment Advice: Do not invest.

SIX IN THE FOURTH PLACE

Managerial Issue: The CEO – managing his/corporate return/prosperity – joining the Superior executives left behind to fix the corporation – turning around even if only to meet a single Superior executive.

Managerial Lesson: Be heroic.

Managerial Warning: At the fourth stage of the Return Time-Space, the CEO finds himself surrounded by inferior executives. He wants to turn around and reach out for the superior executives; nevertheless; they are so few that there is a possibility he might not make it.

Managerial Advice: The Superior CEO will reach out to the superior executives no matter how few they might be. He knows his capable and honest executives will come to his assistance without regards for rewards or fears of being punished. They will do it only because the Superior CEO is showing them the example by his leadership qualities and decision-making capabilities. Doing good for goodness sake is always profitable.

Investment Advice: Do not invest.

SIX IN THE FIFTH PLACE

Managerial Lesson: Be introspective.

Managerial Warning: At the fifth stage of the Return Time-Space, the CEO has a chance for an admirable turnaround.

Managerial Advice: The Superior CEO is strong enough to make a painful but necessary analysis of himself as well as of the corporation to discover what is really wrong with it. Once he finds the errors, the Superior CEO will come out in the open and admit the errors, rather than trying to hide them. He knows this is positive and he will never regret it.

Investment Advice: Do not invest. There are better alternatives.

SIX IN THE SIXTH PLACE

Managerial Issue: The CEO – managing his/corporate return/prosperity – joining the Superior executives left behind to fix the corporation – failing to seize the turn-around moment.

Managerial Lesson: Be humble.

Managerial Warning: At the sixth stage of the Return Time-Space, the CEO risks both: failing to seize the moment for a turnaround and reach out for the superior executives, and not being able to stop the inferior executives from destroying the corporation. His failure to turn around in time is due to his lack of humility. Pride blinds him. Pride will not allow him to set clear objectives for his corporation. This means he will make mistakes, as he will issue contradictory orders to his executives. This will lead the corporation to such weakness that it may never recover. Only humility can save the CEO.

Managerial Advice: The Superior CEO cultivates the proper attitude towards the world. He is humble and flexible, therefore his judgment is correct.

Investment Advice: Do not invest.

MANAGERIAL CASES

International Business Machines Corp. IBM under CEO Samuel J. Palmisano

Samuel Palmisano’s Performance: ROI= 61.24% Annualized Return= 5.19%

SPY performance ROI= ( 0.86%) Annualized Return= ( 0.09%)

Samuel Palmisano became CEO of IBM in March of 2002. Since then, he has outperformed the SPY. His Hexagram has no moving lines; therefore the Judgment is the focusing point:

RETURN. Success.

He managed the Return Time-Space of IBM very well by selling off commodity business lines such as PCs and printers while moving the company into higher-margin offerings such as consulting, analytics software, and business services.

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 24 – Fu - Return (The Turning Point)

The idea of a turning point arises from the fact that after the dark lines have pushed all of the light lines upward and out of the hexagram, another light line enters the hexagram from below. The time of darkness is past. The winter solstice brings the victory of light. This hexagram is linked with the eleventh month, the month of the solstice (December-January).

THE JUDGMENT

RETURN. Success.

Going out and coming in without error.

Friends come without blame.

To and fro goes the way.

On the seventh day comes return.

It furthers one to have somewhere to go.

2) THE ADVICE

Thunder within the earth: The image of THE TURNING POINT.

Thus the kings of antiquity closed the passes

At the time of solstice.

Merchants and strangers did not go about,

And the ruler

Did not travel through the provinces.

The winter solstice has always been celebrated in China as the resting time of the year - a custom that survives in the time of rest observed at the new year. In winter the life energy, symbolized by thunder, the Arousing is still underground. Movement is just at its beginning; therefore it must be strengthened by rest, so that it will not be dissipated by being used prematurely. This principle, i.e., of allowing energy that is renewing itself to be reinforced by rest, applies to all similar situations. The return of health after illness, the return of understanding after an estrangement: everything must be treated tenderly and with care at the beginning, so that the return may lead to a flowering.

3) THE LINES:

There are no Moving Lines.

4) THE MOVING HEXAGRAM

There is no Moving Hexagram because there are no Moving lines. In this instance, the Judgment becomes the focusing issue.

McDonald's Corp. MCD under CEO Jim Skinner

Jim Skinner’s Performance: ROI= 172.21% Annualized Return= 15.96%

SPY performance ROI= ( 1.62%) Annualized Return= ( 0.24%)

Jim Skinner became CEO of McDonalds’s in November of 2004. Since then, he has substantially outperformed the SPY. His Hexagram has two moving lines. The first has an excellent result Quiet Return, Good Fortune, which supports his superior performance. However, the second line points to a period of Danger which he will overcome as mentioned in the commentaries of the line (see commentaries below).

The following is a review of his performance:

Former CEO Jim Cantalupo had died of a heart attack earlier that year. His successor, Charlie Bell, was diagnosed with colon cancer and stepped down shortly after due to failing health. Skinner felt his first order of business was to restore confidence and rethink direction.

“In February of 2009, a committee of his peers met at the NYSE and chose Jim Skinner, 64, CEO of McDonald's, to be the 2009 Chief Executive of the Year for transforming an iconic brand by rebuilding its purpose, strengthening its internal talent and realigning that talent with a return to the company's fundamental principles. In doing this, Skinner and his senior team had to rethink much of what had been proven successful since the days when founder Ray Kroc and his ideas suffused the organization.”

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Six in the second place means:

Quiet return.

Good fortune.

Return always calls for a decision and is an act of self-mastery. It is made easier if a man is in good company. If lie can bring himself to put aside pride and follow the example of good men, good fortune results.

Six in the third place means:

Repeated return.

Danger.

No blame.

There are people of a certain inner instability who feel a constant urge to reverse themselves. There is danger in continually deserting the good because of uncontrolled desires, then turning back to it again because of a better resolution. However, since this does not lead to habituation in evil, a general inclination to overcome the defect is not wholly excluded.

4) THE MOVING HEXAGRAM

Hexagram 11 - T’ai - Peace

The Receptive, which moves downward, stands above; the Creative, which moves upward, is below. Hence their influences meet and are in harmony, so that all living things bloom and prosper. This hexagram belongs to the first month (February-March), at which time the forces of nature prepare the new spring.

THE JUDGMENT

PEACE.

The small departs,

The great approaches.

Good fortune.

Success.

This hexagram denotes a time in nature when heaven seems to be on earth. Heaven has placed itself beneath the earth, and so their powers unite in deep harmony. Then peace and blessing descend upon all living things.

In the world of man it is a time of social harmony; those in high places show favor to the lowly, and the lowly and inferior in their turn are well disposed toward the highly placed. There is an end to all feuds.

Inside, at the center, in the key position, is the light principle; the dark principle is outside. Thus the light has a powerful influence, while the dark is submissive. In this way each receives its due. When the good elements of society occupy a central position and are in control, the evil elements come under their influence and change for the better. When the spirit of heaven rules in man, his animal nature also comes under its influence and takes its appropriate place.

The individual lines enter the hexagram from below and leave it again at the top. Here the small, weak, and evil elements are about to take their departure, while the great, strong, and good elements are moving up. This brings good fortune and success.

THE IMAGE

Heaven and earth unite: the image Of PEACE.

Thus the ruler Divides and completes the course of heaven and earth;

He furthers and regulates the gifts of heaven and earth,

And so aids the people.

Heaven and earth are in contact and combine their influences, producing a time of universal flowering and prosperity. This stream of energy must be regulated by the ruler of men. It is done by a process of division. Thus men divide the uniform flow of time into the seasons, according to the succession of natural phenomena, and mark off infinite space by the points of the compass. In this way nature in its overwhelming profusion of phenomena is bounded and controlled. On the other hand, nature must be furthered in her productiveness. This is done by adjusting the products to the right time and the right place, which increases the natural yield. This controlling and furthering activity of man in his relation to nature is the work on nature that rewards him.

Infosys Technologies Ltd. INFY under CEO S. Gopalakrishnan

S. Gopalakrishnan’s Performance: ROI= 8.12% Annualized Return= 1.91%

SPY performance ROI= (22.68%) Annualized Return= (6.05%)

S. Gopalakrishnan became CEO of Infosys in June 2007. Since then, he has not performed as well as the other two corporations mentioned above perhaps because he took over right in the middle of the crash, but still his performance proves he has managed the Return Time-Space of the corporation.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

0 Nine at the beginning means:

Return from a short distance.

No need for remorse

Great good fortune.

Slight digressions from the good cannot be avoided, but one must turn back in time, before going too far. This is especially important in the development of character; every faintly evil thought must be put aside immediately, before it goes too far and takes root in the mind. Then there is no cause for remorse, and all goes well.

4) THE MOVING HEXAGRAM

HEXAGRAM 02 - K'un - THE RECEPTIVE

This hexagram is made up of broken lines only. The broken line represents the dark, yielding, receptive primal power of yin. The attribute of the hexagram is devotion; its image is the earth. It is the perfect complement of THE CREATIVE - the complement, not the opposite, 1 for the Receptive does not combat the Creative but complements it. It represents nature in contrast to spirit, earth in contrast to heaven, space as against time, the female-maternal as against the male-paternal. However, as applied to human affairs, the principle of this complementary relationship is found not only in the relation between man and woman, but also in that between prince and minister and between father and son. Indeed, even in the individual this duality appears in the coexistence of the spiritual world and the world of the senses.

But strictly speaking there is no real dualism here, because there is a clearly defined hierarchic relationship between the two principles. In itself of course the Receptive is just as important as the Creative, but the attribute of devotion defines the place occupied by this primal power in relation to the Creative. For the Receptive must be activated and led by the Creative; then it is productive of good. Only when it abandons this position and tries to stand as an equal side by side with the Creative, does it become evil. The result then is opposition to and struggle against the Creative, which is productive of evil to both.

THE JUDGMENT

THE RECEPTIVE brings about sublime success,

Furthering through the perseverance of a mare.

If the superior man undertakes something and tries to lead,

He goes astray;

But if he follows, he finds guidance

It is favorable to find friends in the west and south,

To forego friends in the east and north.

Quiet perseverance brings good fortune.

The four fundamental aspects of the Creative - "sublime success, furthering through perseverance"- are also attributed to the Receptive. Here, however, the perseverance is more closely defined: it is that of a mare. The Receptive connotes spatial reality in contrast to the spiritual potentiality of the Creative. The potential becomes real and the spiritual becomes spatial through a specifically qualifying definition. Thus the qualification, "of a mare," is here added to the idea of perseverance. The horse belongs to earth just as the dragon belongs to heaven. Its tireless roaming over the plains is taken as a symbol of the vast expanse of the earth. This is the symbol chosen because the mare combines the strength and swiftness of the horse with the gentleness and devotion of the cow.

Only because nature in its myriad forms corresponds with the myriad impulses of the Creative can it make these impulses real. Nature's richness lies in its power to nourish all living things; its greatness lies in its power to give them beauty and splendor. Thus it prospers all that lives. It is the Creative that begets things, but they are brought to birth by the Receptive. Applied to human affairs, therefore, what the hexagram indicates is action in conformity with the situation. The person in question is not in an independent position, but is acting as an assistant. This means that he must achieve something. It is not his task to try to lead - that would only make him lose the way - but to let him be led. If he knows how to meet fate with an attitude of acceptance, he is sure to find the right guidance. The superior man lets himself be guided; he does not go ahead blindly, but learns from the situation what is demanded of him and then follows this intimation from fate.

Since there is something to be accomplished, we need friends and helpers in the hour of toil and effort, once the ideas to be realized are firmly set. The time of toil and effort is indicated by the west and the south, for west and south symbolize the place where the Receptive works for the Creative, as nature does in summer and autumn. If in that situation one does not mobilize all one's powers, the work to be accomplished will not be done. Hence to find friends there means to find guidance. But in addition to the time of toil and effort, there is also a time of planning, and for this we need solitude. The east symbolizes the place where a man receives orders from his master and the north the place where he reports on what he has done. At that time he must be alone and objective. In this sacred hour he must do without companions so that the purity of the moment may not be spoiled by factional hates and favoritism.

THE IMAGE

The earth's condition is receptive devotion.

Thus the superior man who has breadth of character

Carries the outer world.

Just as there is only one heaven, so too there is only one earth. In the hexagram of the heaven the (doubling, of the trigram implies duration in time, but in the hexagram of earth the doubling connotes the solidity and extension in space by virtue of which the earth is able to carry and preserve all things that live and move upon it. The earth in its devotion carries all things, good and evil, without exception. In the same way the superior man gives to his character breadth, purity, and sustaining power, so that he is able both to support and to bear with people and things.