Discerning Compound Problems

Problems are sometimes simple. More often problems are compound and complex, and complicated.

Part 1 - Simple, compound, complex, and masking

Simple example

Trying to reconcile a bank statement. (If you don't know how to reconcile a bank statement, learn. Meanwhile, just go with it. It's about addition.) There's an error of $3.95. Go back through the records, and, aha! there's a check for $3.95 that wasn't entered, or hadn't been marked as returned. Voila! Simple problem, relatively easily resolved.

Compound example

Two checks were not recorded, one for $5.00 and another for $2.00. The bank reconciliation shows a $7.00 error. Searching for a $7.00 check is fruitless. Looking for multiple checks that add up to $7.00 works. Once one of the two errors is discovered, the compound problem becomes simple.

Complex example with partial masking

A check for $5.00 was not recorded. Another check for $2.00 was not marked as returned. The bank reconciliation shows a $3.00 error, but the error is really $7.00 in two different directions. Searching for a $3.00 check is fruitless. Looking for multiple checks that add up to $3.00 is fruitless. Finding the $2.00 check and marking it as returned seemingly increases the reconciliation imbalance from $3.00 to $5.00, but really the problem has been lowered from $7.00.

Complex example with total masking

A check for $5.00 was not recorded. Two other checks for $2.50 each were not marked as returned. The bank reconciliation does not reveal any error because the three errors combine to look like nothing. How would you even know there was a problem? You might not, until the next month when the unentered check clears.

Part 1 review

Errors can compound. The more errors compound, the harder to resolve each of them. Symptoms may partially mask each other, making it harder to know what the errors are. Symptoms may combine to utterly mask that there even is a problem. Until things get worse.

Part 2 - Compound, complex, and complicated considerations

Simple considerations

If the error is single, only two possiblities need be considered. Either the check was not entered, or the check was not marked as returned.

Compound considerations

With two errors, there are more possibilities to consider. Both might be un-entered. Both might be not marked returned. One might be not returned, one might be un-entered. The problems may mask each other, partially or completely.

Complex considerations with masking

A check for $5.00 and another for $3.00 were not recorded. A third check for $5.00 was not marked as entered. The reconciliation shows a $3.00 error. Recording the $3.00 check appears to make the account reconciled, but there are really two $5.00 errors remaining totally masking one another.

False resolutions

The foregoing examples suppose two possible ways to err, not entering a check, or not marking a check off as returned. In reality, there are so many ways to err! The check was written for $3.95 but was entered as $3.85. Searching the records and the bank statement diligently will never disclose why the reconciliation is off by a dime. Only going outside the registry to the original document will disclose the real error.

Understanding complexity

Attempting to reconcile an account statement discloses $3.00 in error. At the outset, there is no clue how many errors exist, of what amounts or in which directions. Consideration is given first to the simple error, then to the complex possibilities, then to compound and masking possibiliites.

First, there must be awareness of the problem even existing. Then, consideration must be given to all the possibilities of compound and complex. Masking may make it seem that resolving one error was sufficient, but others lurk undetected.

All these account-reconciliation examples result in one symptom, addition error. Most real-world problems have multiple causes and multiple symptoms.