Razor Sharp

Like a lot of people these days I’m in a few different online collectives. A couple of my memberships are to do with work like Time Management, Wellbeing and a few tech groups.

I’m also in a few local ones like We Love Redhill. It’s an optimistic name but actually a misnomer really as it’s comprised of members who really seem to feel the opposite about the town. We Are Mostly Disappointed With And, At Best, Ambivalent About Redhill might be a more accurate title.

On a more positive note there is the very lovely Redhill Wetlands group that capture beautiful images of the fauna and flora on a gorgeous nature trail near where I live.

Johnny Marr Plays Guitar

Predictably there’s a couple of guitar groups I belong to. Acoustic Adventureis self explanatory and I spend time there commiserating with many other frustrated middle aged men all trying to master the Travis picking pattern. 

Even harder and more frustrating is the group dedicated to learning How To Play Smiths/Morrissey songs on six strings. Now and again it’s incredibly rewarding “but not very often.”

I’m also in a Telegram group for investors in a small biotech firm. We mainly chat about the company, the technology, medical trials, the management, the share price, the market and why we aren’t all multi millionaires yet, but we also diverge into other topics too. As long as the conversation doesn’t drift too far and wide from the root subject we have a general consensus that it’s okay to do so.

There are some incredibly clever people in this group and I sit firmly on the sidelines, listening intently to the scientists, trying to work out what all the big words mean and offering the odd mildly amusing quip now and again.

Ring My Bell

Recently, in this group, for some reason, the topic of heuristics came up and someone mentioned Hanlon’s Razor. The name rang a bell but I couldn’t remember what it was. 

Google helped me out: Hanlon’s Razor states “Never attribute to malice that which can be adequately explained by stupidity.”

That’s a great heuristic. I love it.

I said so in the Telegram group, joking about how it explained probably 70% of the questions I had in life. My mind immediately went to a 90’s footballer called Neil ‘Razor’ Ruddock and I posted a gif of him. (Yep, that's about the measure of my contributions.)

The group owner, (who has a brain the size of a planet), posted a message in reply that really made me think. 

“I can’t believe a man in your job didn’t know Hanlon’s Razor”

If You Don't Know Me By Now

Well, there’s lots and lots and lots of things I don’t know but I had to agree with him. This was the sort of thing I usually not only know about but tend to carry up my sleeve at all times. 

Sharing ideas like Hanlon’s Razor can be very useful when you’re trying to find ways for clients to look at things from a fresh perspective and to evolve new understandings.

The odd thing for me was that Hanlon’s Razor fitted very well with some of the things I ask clients to do on a regular basis. It felt like I did already know it. I’ve long asked clients to lower their expectations of their staff and colleagues. 

That might sound counterintuitive but it’s not about lowering standards, rather being more understanding when people get things wrong. More in the name of reducing anger, cultivating personal wellbeing and focusing on solutions.

I also ask clients to assume that people are stupid. It not only saves time (ha!) but allows you to forgive their errors more quickly. 

Again, in the words of Chrissie Hynde, don’t get me wrong. I don’t actually think people are stupid, far from it. But embracing the heuristic of assuming they’ve made a mistake because of sheer daftness is a much better thing to do than assume they’re complete bastards.

Which is exactly what Hanlon’s Razor is all about. So why didn’t I know it?

It foxed me for a couple of days until I ran a search through the dusty corridors of my desktop hard drive. It’s a labyrinthine mess in there but there is actually a method to my storage of documents so very quickly I was able to find something that piqued my interest.

Can't You See I'm Tellin' Stories

Back in 2010 I wrote a regular column in a monthly magazine called iPass. It was a magazine for recently qualified accountants and students about to qualify. 

My column was called On The Couch and every month you could read my 500 words of advice about Assertiveness, Communication, Goal Setting etc - all the same stuff I still write about now - just more succinct and to the point!

Anyway in a folder I found a draft piece for a column that was never actually published. It wasn’t that they didn’t accept the work, it’s just that the magazine folded six months after I began writing for it. (No, you don’t need to be like that - it was nothing to do with me).

Anyway, having dug it out of its resting place and lifted the lid I thought it should see the light of day. So here’s the piece I wrote thirteen years ago.

Guess what? It’s about bloody Hanlon’s Razor isn’t it? 

The thing I clearly did once know about but have since forgotten. That particular list of 'things I used to know’ is getting longer and longer.

The article is aimed at accountants but if that’s not your job it doesn’t detract. The ideas are still sound.

******

The Razor Sharp Accountant: A Close Shave With Heuristics

Attention bean counters, ledger lovers, and spreadsheet superheroes: it's time to take a razor sharp approach to your accounting endeavours! 

No, I’m not talking about giving yourself a DIY haircut while staring at those never-ending financial statements. I’m talking about heuristics – handy mental shortcuts for your head, that simplify complex problems into bite size rules of thumb. 

They can save you time, energy and very possibly your sanity. So, grab your calculators and let's explore how just a couple of heuristics in particular could benefit accountants.

Occam's Razor: Keeping It Simple Stupid

First up, we have Occam's Razor, the granddaddy of all razors. Occam's Razor suggests that when faced with multiple explanations for a problem, the simplest one is usually the right one. 

So, picture this: you're auditing a company's financial statements, and you find discrepancies in their accounts. Instead of entertaining the idea that the CEO moonlights as a ninja accountant, Occam's Razor reminds you that it's probably just a clerical error.

Hanlon's Razor: Don't Assume Malice When Stupidity Will Suffice

Now, let's talk about Hanlon's Razor, a razor that's sharper than the wit of a stand up comedian at tax season. Hanlon's Razor encourages us to attribute incompetence rather than malevolence when things go awry. There’s no conspiracy theory going on, someone’s just been a bit sloppy. 

The next time a colleague accidentally deletes a crucial spreadsheet, try not to assume they’re a fully paid up member of the illuminati covering up ancient secrets. It’s just incompetence and Hanlon's Razor' in action.

The Occam-Hanlon Fusion Razor: Simplify and Be Kind

Sometimes, I like to combine a couple of ideas and see if one plus one can add up to more than two. In this case I think it does. Combining these two razors yields a double-edged benefit. Introducing the Occam-Hanlon Fusion Razor, a powerful tool for accountants. 

This razor urges you to simplify complex problems while giving people the benefit of the doubt. So, when you uncover a convoluted tax loophole, just think, "Simplify, but remember, they're probably just incompetent, not intentionally shady."

Finally let me introduce a Razor of my own:

Razor Ruddock: The Liverpool Legend (and Unofficial Razor of Accountants)

Ah, Razor Ruddock! For the uninitiated, Razor Ruddock was a Liverpool football player known for his tough tackles and even tougher demeanour. I’m a Man Utd fan, sworn enemy of anything to do with Liverpool FC but everyone had a soft spot for Razor Ruddock, even me. 

While he might not be a conventional razor like Occam's or Hanlon's, I’d like to nominate him as an honorary accountant's razor. Why? Because the next time you're crunching numbers and feeling overwhelmed I’d like you to ask yourself"What would Razor Ruddock do?" 

That’s right. He'd tackle those financial statements like a seasoned pro; go in hard, fast, without hesitation, kick that overwhelm into row Z, make short work of the problem and then celebrate with a cup of tea.

So embrace the wisdom of razors like Occam's, Hanlon's and perhaps even Razor Ruddock’s too. These heuristics can help you navigate the treacherous waters of finance with humour, grace, and a little bit of football nostalgia. After all, accountants need a bit of levity too – just don't try to balance your budgets using an actual razor. Trust me, it won't end well!

******

The First Cut Is The Deepest

This week’s Top Tip is two fold. Firstly it’s about embracing the usefulness of heuristics and those razors in particular. Perhaps even the Ruddock variety!

Secondly, don’t reinvent the wheel. Use what you’ve done more than once if possible.

Repurpose content when you can and make the most out of what you’ve already done. Even if it takes you thirteen years!