HEXAGRAM 38: ORIGINAL, INTERPRETATION AND CASES

HEXAGRAM 38 - K'uei - Opposition

Above LI THE CLINGING, FLAME

Below TUI THE JOYOUS, LAKE

This hexagram is composed of the trigram

· Li above, i.e., flame, which burns upward, and

· Tui below, i.e., the lake, which seeps downward.

These two movements are in direct contrast.

Furthermore,

· Li is the second daughter and

· Tui the youngest daughter, and

although

they live in the same house

they belong, to different men;

hence their wills

· are not the same

· but are divergently directed.

THE JUDGMENT

OPPOSITION.

In small matters, good fortune.

When people live in

· opposition and

· estrangement

they cannot carry out a great undertaking in common;

their points of view diverge too widely.

In such circumstances

· one should above all not proceed brusquely,

for that would only increase the existing opposition;

instead,

· one should limit oneself to producing gradual effects in small matters.

Here success can still be expected,

because

the situation is such that

the opposition does not preclude all agreement.

In general,

opposition appears as an obstruction, but when

· it represents polarity within a comprehensive whole,

· it has also its useful and important functions.

The oppositions of

· heaven and earth,

· spirit and nature,

· man and woman,

when reconciled,

bring about the creation and reproduction of life.

In the world of visible things,

the principle of opposites makes possible

the differentiation by categories

through which order is brought into the world.

THE IMAGE

Above, fire,

below, the lake:

The image of OPPOSITION.

Thus amid all fellowship

The superior man retains his individuality.

The two elements, fire and water,

never mingle

but even when in contact

retain their own natures.

· the cultured man is never led into baseness or vulgarity

through intercourse or community of interests with persons of another sort;

regardless of all commingling,

· he will always preserve his individuality.

THE LINES

Nine at the beginning means:

Remorse disappears.

· If you lose your horse,

o do not run after it; It will come back of its own accord.

· When you see evil people,

o Guard yourself against mistakes.

Even in times when oppositions prevail,

· mistakes can be avoided, so that

· remorse disappears.

When opposition begins to manifest itself,

· a man must not try to bring about unity by force, for by so doing

· he would only achieve the contrary,

just as

· a horse goes farther and farther away

o if one runs after it.

· it is one's own horse, one can safely let it go;

o it will come back of its own accord.

So too

· when someone who belongs with us is momentarily estranged

because of a misunderstanding,

· he will return of his own accord

if we leave matters to him.

On the other hand,

it is well to be cautious when

evil men who do not belong with us force themselves upon us,

again as the result of a misunderstanding.

Here the important thing is to avoid mistakes.

· We must not try to shake off these evil men by force;

o this would give rise to real hostility.

· We must simply endure them.

o They will eventually withdraw of their own accord.

0 Nine in the second place means:

One meets his lord in a narrow street.

No blame.

As a result of misunderstandings,

it has become impossible for people who by nature belong together

to meet in the correct way.

This being so,

an accidental meeting under informal circumstances

may serve the purpose,

provided there is an inner affinity between them.

Six in the third place means:

One sees the wagon dragged back,

The oxen halted.

A man's hair and nose cut off.

· Not a good beginning,

· but a good end.

Often it seems to a man as though everything were conspiring against him.

He sees himself

· checked and hindered in his progress,

· insulted and

· dishonored.1

However,

· he must not let himself be misled; despite this opposition,

· he must cleave to the man with whom he knows he belongs.

Thus, notwithstanding the bad beginning,

the matter will end well.

Nine in the fourth place means:

Isolated through opposition,

· One meets a like-minded man With whom

· one can associate in good faith.

Despite the danger, no blame.

· If a man finds himself in a company of people from whom

he is separated by an inner opposition,

o he becomes isolated.

· But if in such a situation a man meets someone

o who fundamentally, by the very law of his being, is kind to him, and

o whom he can trust completely,

· he overcomes all the dangers of isolation.

· His will achieves its aim, and

· he becomes free of faults.

0 Six in the fifth place means:

Remorse disappears.

The companion bites his way through the wrappings.

If one goes to him,

How could it be a mistake?

Coming upon a sincere man,

· one fails to recognize him at first because of the general estrangement.

However,

· he bites his way through the wrappings that are causing the separation.

When such a companion thus reveals himself in his true character,

it is one's duty

· to go to meet him and

· to work with him.

Nine at the top means:

Isolated through opposition,

One sees one's companion

· as a pig covered with dirt,

· As a wagon full of devils.

First

· one draws a bow against him,

Then

· one lays the bow aside.

· He is not a robber;

· he will woo at the right time.

As one goes, rain falls;

then good fortune comes.

Here

the isolation is due to misunderstanding;

it is brought about

· not by outer circumstances

· but by inner conditions.

A man misjudges his best friends, taking them to be

· as unclean as a dirty pig and

· as dangerous as a wagon full of devils.

He adopts an attitude of defense.

But in the end, realizing his mistake,

he lays aside the bow,

perceiving that the other is approaching with the best intentions

for the purpose of close union.

Thus

the tension is relieved.

· The union resolves the tension,

just as

· falling rain relieves the sultriness preceding a thunderstorm.

All goes well,

for just when

· opposition reaches its climax

· it changes over to its antithesis.

1. Cutting off of the hair and nose was a severe and degrading punishment.

38 THE OPPOSITION

MANAGERIAL ISSUE:

The CEO – managing opposing views within the corporation.

Hexagram 38 refers to a corporate Time-Space where management is divided into opposite forces with different points of view and strategies; some of which may be too wide to reconcile. Under these circumstances, no CEO can successfully execute any project.

MANAGERIAL LESSON:

The Superior CEO:

1) Proceeds with much diplomacy so as not to widen these differences, welcomes any progress in reconciling these differences no matter how small, and does all he can to encourage harmony between these opposite forces. Because there is still a possibility of an improvement in earnings; the Superior CEO maintains a positive general attitude in this particular case because these opposite positions might still be reconcilable.

2) Realizes that opposition in itself is not necessarily destructive. He knows that In some cases, opposition may be destructive because it could end in irreconcilable differences between the parties and bring them to a final separation. But that in other cases, opposition may be constructive and could give birth to new ideas and projects, provided in the end the parties reconcile.

3) Is impartial and does not take sides with any of the opposite forces.

4) Is gentle in his efforts to reconcile these opposite forces.

5) Lowers the expectations. Expects few results during the Opposition Time-Space.

6) Keeps his sense of balance.

7) Creates an atmosphere of harmony. He knows that if the opposite forces were the result of corporate losses, a harmonious atmosphere could return the profitability to this corporation.

INVESTMENT ADVICE:

For the investor, the OPPOSITION Time-Space is not a favorable time to invest. How could an Opposition Time Space be positive for investors?

By itself (no lines) there is still the possibility of success provided the CEO limits himself to small projects.

OPPOSITION.

In small matters, good fortune.

When people live in opposition and estrangement they cannot carry out a great undertaking in common; their points of view diverge too widely. In such circumstances one should above all not proceed brusquely, for that would only increase the existing opposition; instead, one should limit oneself to producing gradual effects in small matters. Here success can still be expected, because the situation is such that the opposition does not preclude all agreement.

In general, opposition appears as an obstruction, but when it represents polarity within a comprehensive whole, it has also its useful and important functions. The oppositions of heaven and earth, spirit and nature, man and woman, when reconciled, bring about the creation and reproduction of life. In the world of visible things, the principle of opposites makes possible the differentiation by categories through which order is brought into the world.

There is only one Good Fortune possibility in line 6 but it is too complicated. It is best to look for a better investment.

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

· Nokia Corporation NOK under CEO Stephen Elop

· Motorola Solutions Inc. MSI under CEO Greg Brown

· Bed Bath & Beyond, Inc. BBBY under CEO Steven H. Temares

(Read at the end of the Hexagram)

THE LINES

NINE IN THE FIRST PLACE

Managerial Issue: The CEO – managing opposing views within the corporation – the beginning of the Opposition.

Managerial lesson: Be patient.

Managerial Warning: At the first stage of the Opposition Time-Space, the CEO must concentrate on not making mistakes by:

· Refraining from too much activity,

· Focusing on keeping the right attitude, and

· Tolerating all differences to avoid confrontations.

Managerial Advice: The Superior CEO is patient and waits until the differences disappear. He never imposes unity by force, as he knows force is not the TAO when reconciling opposing points of view. He lets the opposite forces wear out until they come to their senses on their own. He applies this same attitude to those who:

· Belong to the CEO’s inner circle,

· Are in disagreement with him,

· Attempt to launch a takeover against it.

Investment advice: Don’t invest

NINE IN THE SECOND PLACE

Managerial Issue: The CEO – managing opposing views within the corporation – reconciling opposing groups with common goals.

Managerial Lesson: Be conciliatory.

Managerial Warning: At the second stage of the Opposition Time-Space, the CEO must reconcile groups that may share a common goal but their views are so opposite it may be impossible to bring them together. The managers who are already divided into two opposite forces might be unwilling to even partially agree on any issue.

Managerial Advice: The Superior CEO aims to having these two parties come to at least a partial agreement by appealing to their self-interest - both groups have profits as their ultimate goal. He knows that when profits are the ultimate common goal between opposite parties and there are disagreements, even a minor agreement between these forces could be the beginning of an eventual understanding provided both parties show good intentions.

Investment advice: Do not invest.

SIX IN THE THIRD PLACE

Managerial Issue: The CEO – managing opposing views within the corporation - encountering strong Opposition.

Managerial lesson: Be united.

Managerial Warning: At the third stage of the Opposition Time-Space, the CEO not only encounters strong opposition but also receives insults and even injuries from the opposing forces.

Managerial Advice: The Superior CEO does not allow emotions to cloud his judgment. He takes nothing personal. He knows that if he keeps close to those executives who are of proven merit, he will eventually be successful. Things will certainly improve.

Investment advice: Invest. Do not expect much. It is best to look for better alternatives.

NINE IN THE FOURTH PLACE

Managerial Issue: The CEO – managing opposing views within the corporation – finding himself completely isolated by opposite forces.

Managerial lesson: Be inclusive.

Managerial Warning: At the fourth stage of the Opposition Time-Space, the CEO finds himself in a company of managers from whom he is separated by opposite views and becomes isolated.

Managerial Advice: The Superior CEO will overcome the isolation and override any temporary opposition:

· In the case of his own personal condition, he will find an executive he can trust, someone who agrees with his views both in mind and spirit.

· In the case of the corporate condition (a weak corporation), he will look for a strong corporate partner, one that is in the same business and has the same views on business.

Investment advice: Do not invest.

SIX IN THE FIFTH PLACE

Managerial Issue: The CEO – managing opposing views within the corporation – finding an able assistant in the midst of Opposition.

Managerial lesson: Be receptive.

Managerial Warning: At the fifth stage of the Opposition Time-Space, the CEO meets an executive who agrees with his views and holds the same values. Unfortunately, at first the CEO fails to recognize him even though eventually he will because this executive will do everything within his power to approach the CEO.

Managerial Advice: The Superior CEO is open and fair. He rewards tenacity.

· In the case of his own personal condition, he accepts the executive who wants to approach him whether he is coming from within or without the corporation. He views such executive as a strategic ally and a good future partner because their views are compatible.

· In the case of the corporation, he accepts the corporation that wants to merge. He views such corporation as a strategic ally and a good future partner because their businesses are compatible.

Investment advice: Do not invest.

NINE IN THE SIXTH PLACE

Managerial Issue: The CEO – managing opposing views within the corporation – the turning point.

Managerial lesson: Be impassive.

Managerial Warning: At the sixth stage of the Opposition Time-Space, the CEO finds the corporation’s spirits at its worse point. There is animosity and division within the ranks. The situation is such that the CEO has allowed his personal feelings to influence his actions. He has practically developed a hatred for everyone in the corporation.

Managerial Advice: The Superior CEO is unemotional in his decision making process. He quickly admits his mistake and realizes that in this particular case, there might be disagreements but also the best intentions. He knows that an understanding attitude will create a better atmosphere.

In any event, this would seem to be the turning point. The opposition between the parties is diminishing. From now on, there will be unity, reconciliation, and harmony within the ranks. Success is in the future. The corporation is about to turn around.

Investment advice: Invest. Be patient. This is a turning point for the corporation.

MANAGERIAL CASES

Nokia Corporation NOK under CEO Stephen Elop

Stephen Elop’s Performance: ROI= (33.48%) Annualized Return= (33.78%)

SPY’s Performance: ROI= 8.77% Annualized Return= 8.87%

Stephen Elop became CEO of Nokia in September of 2010. It is relatively too early to comment on his performance. However, based on a comparison with the SPY’s performance, it is becoming evident that Nokia is suffering from its own internal Opposition and that Elop is having quite a difficult time in managing it.

What is interesting is the comment in the second line:

One meets his lord in a narrow street.

Could it be Microsoft?

Points the investor should consider:

1) THE HEXAGRAM

HEXAGRAM 38 - K'uei - Opposition

This hexagram is composed of the trigram Li above, i.e., flame, which burns upward, and Tui below, i.e., the lake, which seeps downward. These two movements are in direct contrast. Furthermore, Li is the second daughter and Tui the youngest daughter, and although they live in the same house they belong, to different men; hence their wills are not the same but are divergently directed.

THE JUDGMENT

OPPOSITION.

In small matters, good fortune.

2) THE ADVICE

Above, fire, below, the lake: The image of OPPOSITION.

Thus amid all fellowship

The superior man retains his individuality.

The two elements, fire and water, never mingle but even when in contact retain their own natures. So the cultured man is never led into baseness or vulgarity through intercourse or community of interests with persons of another sort; regardless of all commingling, he will always preserve his individuality.

3) THE LINES:

0 Nine in the second place means:

One meets his lord in a narrow street.

No blame.

As a result of misunderstandings, it has become impossible for people who by nature belong together to meet in the correct way. This being so, an accidental meeting under informal circumstances may serve the purpose, provided there is an inner affinity between them.

4) THE MOVING 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.

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. 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.

Motorola Solutions Inc. MSI under CEO Greg Brown

Greg Brown’s Performance: ROI= (32.57%) Annualized Return= (10.26%)

SPY’s Performance: ROI= (15.82%) Annualized Return= ( 4.62%)

Greg Brown became CEO of Motorola Solutions (Motorola) in January 2008. Since then, his performance compared to the SPY’s has been very poor. Here also, as in the case of Nokia, it is becoming evident that Motorola Solutions is suffering from its own internal opposition and that Brown is having quite a difficult time in managing it.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

0 Nine in the second place means:

One meets his lord in a narrow street.

No blame.

4) THE MOVING HEXAGRAM

HEXAGRAM 21 - Shih Ho - Biting Through

THE JUDGMENT

BITING THROUGH has success.

It is favorable to let justice be administered.

THE IMAGE

Thunder and lightning: The image Of BITING THROUGH.

Thus the kings of former times made firm the laws

Through clearly defined penalties.

Bed Bath & Beyond, Inc. BBBY under CEO Steven H. Temares

Steven Temares’s Performance: ROI= 49.96% Annualized Return= 4.80%

SPY’s Performance: ROI= 26.77% Annualized Return= 2.78%

Steven Temares became CEO of Bed, Bath & Beyond in January 2003.. Since then, his performance compared to the SPY’s has been positive.

However, as he faces the future (2011 on) , it will be interesting to see how he manages the Opposition Time-Space BBBY is moving into.

Points the investor should consider:

1) THE HEXAGRAM

(Same as Above).

2) THE ADVICE

(Same as Above).

3) THE LINES:

Six in the third place means:

One sees the wagon dragged back,

The oxen halted.

A man's hair and nose cut off.

Not a good beginning, but a good end.

Often it seems to a man as though everything were conspiring against him. He sees himself checked and hindered in his progress, insulted and dishonored.1 However, he must not let himself be misled; despite this opposition, he must cleave to the man with whom he knows he belongs. Thus, notwithstanding the bad beginning, the matter will end well.

1. Cutting off of the hair and nose was a severe and degrading punishment.

4) THE MOVING HEXAGRAM

HEXAGRAM 14 - Ta Yu - Possession in Great Measure

The fire in heaven above shines far, and all things stand out in the light and become, manifest. The weak fifth line occupies the place of honor, and all the strong lines are in accord with it.

All things come to the man who is modest and kind in a high position.

THE JUDGMENT

POSSESSION IN GREAT MEASURE.

Supreme success.

The two trigrams indicate that strength and clarity unite. Possession in great measure is determined by fate and accords with the time. How is it possible that the weak line has power to hold the strong lines fast and to possess them? It is done by virtue of unselfish modesty. The time is favorable - a time of strength within, clarity and culture without. Power is expressing itself in a graceful and controlled way. This brings supreme success and wealth. 2

THE IMAGE

Fire in heaven above: The image of POSSESSION IN GREAT MEASURE .

Thus the superior man curbs evil and furthers good,

And thereby obeys the benevolent will of heaven.

The sun in heaven above, shedding light over everything on earth, is the image of possession on a grand scale. But a possession of this sort must be administered properly. The sun brings both evil and good into the light of day. Man must combat and curb the evil, and must favor and promote the good. Only in this way does he fulfill the benevolent will of God, who desires only good and not evil.