The Cost of Chaos: Is Your Business Paying the Price?

Cost of Chaos

Chaos in business is costly. Whether it shows up in the form of confusion, lack of order, or even complete disarray, you’re not alone – company chaos is more common than you might imagine!

In a recent CohnReznick CPA survey, more than 200 senior-level executives in various industries were asked about chaos in their organization. The survey found that an outstanding 91.9% of respondents identified chaos within their organization. Shockingly, only 27% stated that they had plans in place to fix it.

Revamping business operations to reduce chaos can be a daunting task. However, it is essential for companies to stay competitive and remain successful. In this article, we’ll discuss where chaos commonly exists within companies, and where to get started when it comes to reducing and ultimately eliminating chaos.

Where Chaos Commonly Shows Up

Chaos can show up in a variety of ways within a company. However, there are some common, tell-tale signs that the cost of chaos is taking a toll. These include, but are not limited to, the following:

  • Not having a business plan. Without a clear plan, it is difficult to know what goals to strive for and how to measure progress. This can lead to confusion and disorganization, leading to chaos in the business.
  • Not having defined processes. If your processes are unclear, things can get messy fast. Without standardized procedures, it will be difficult to track your activities, let alone identify areas of improvement. After all, you cannot make process improvements without a process! Moreover, undefined processes result in disorganization and lack of clarity at all organizational levels, which can result in mistakes, delays, and confusion, which can all contribute to chaos in the business and even impact customer satisfaction.
  • Lack of accountability. If you don’t have defined processes or a clear overarching plan, chances are there is also a lack of clarity when it comes to organizational roles and expectations. Without defining or communicating what’s expected, it’s impossible to hold people accountable to a standard, which can result in organizational dysfunction and ultimately chaos.
  • Not paying attention to your data or measuring performance. Without data, business leaders tend to make decisions based on gut instincts or surface-level observations, resulting in misinformed reactions. Without understanding your numbers, you won’t truly know (let alone understand) how your business is performing, and will likely respond from a reactionary, frantic place rather than through the development of a thoughtful strategy based on data-driven insights.
Cost of Chaos

How to Eliminate Company Chaos

There are many actions that business leaders can take to reduce and ultimately eliminate chaos in their organization, and increase both profitability and efficiency as a result. Here are a few of the key elements to developing a chaos-free and future-focused business model.

  • Build an annual business plan. Prior to the start of each year, it is crucial to have a roadmap for success for what success looks like, and a plan to achieve it. This business plan should serve as the backbone for your organization, and eliminates chaos by prioritizing a central focus that is in alignment with strategic goals and objectives.
  • Revisit your business plan monthly. These monthly meetings are key to ensuring that you stay on track, and should serve as a time to evaluate progress, identify areas of improvement, and make shifts accordingly to ensure you are still on course. Being consistent, proactive and clear about where you currently stand is critical to success.
  • Ensure you have timely data. When you have your monthly meetings, how will you know if you are on course if you don’t have up-to-date numbers, including financials and other KPIs, to analyze and reflect on? In order to make effective strategic decisions, you must have your finger on the pulse of your numbers at all times, and a sharp data-driven team to help you access them quickly and efficiently.
  • Ensure you have accurate data. Efficiency is only one piece of the equation. To ensure you are correct about the state of your business, you must have confidence in the accuracy of your data. This not only means verifying your data, but also ensuring a big-picture view, where no critical pieces of data are left out. Having accurate data is essential for making sound decisions and ultimately eliminating chaos.

Chaotic businesses are unsustainable businesses. Even if your company is surviving today, one strong wind – whether a shifting market condition, an internal issue coming to light, or an unexpected loss —has the potential to blow everything over, if you fail to build a stronger foundation. 

By taking steps to eliminate chaos and staying future focused, you can ensure that your business stays ahead of the competition, remains resilient, and ultimately achieves profitability.

Is the cost of chaos plaguing your business? Our team of fractional CFOs and profitability partners at Blueprint CFO can help. Let’s start the conversation!

Valuation Planning

Blueprint CFO will work with executive leadership to determine shareholder value, and run various models to determine estimated company valuation. Together, we will determine milestone objectives to increase shareholder value and track company performance in relation to these targets. We will review your company’s organic and acquisition growth options to create shareholder value, and emphasize tax planning to optimize shareholder value upon a sale or purchase. We can also focus on Initial Public Offering (IPO) Planning and Readiness.

Analytics & Business Intelligence

We believe that being data-driven is key to profitability. As such, we can help you create meaningful dashboards and scorecards for your business, analyzing performance against key performance indicators and other factors. Our profitability reporting and analysis tools will help drive business decision-making and provide insights into trends, predictions, results, and potential strategic direction moving forward.

Goal Setting & Tracking

Our team can partner with company leadership to establish goals and objectives for the company, for both the short and long term. Additionally, we will help leaders develop meaningful Key Performance Indicators (KPIs) to track and measure results.

Insurance & Tax Planning

Blueprint CFO can work with businesses to review insurance needs and requirements, as well as plan for taxes and R&D credits.

Human Resources

We can assist your HR department with employee benefits planning, and can also perform compensation studies to ensure best practices are implemented across the business.

Accounting & Finance Support

Whether you have an internal team in place or need more hands-on assistance, Blueprint CFO can oversee and advise your accounting and finance department. From preparing general ledger transaction entries to completing month-end closes, forecasting to crafting financial statements, developing customized reporting packages to implementing more effective software, Blueprint CFO can bring you everything from a supportive junior or senior accounting team, all the way to high-level strategic CFO consulting.

Mergers & Acquisitions

Blueprint CFO can partner with company leadership to improve strategic business plans and assist with the development of organizational growth strategy. We can also create financial reporting packages and proformas for capital raises, investments, acquisitions and/or banking requirements, and provide due diligence on company-focused deals.

Financial Planning

We can prepare, create and/or review financial statements. This includes providing trend analysis, developing cash flow projections, and tracking operational and financial performance, with insight into budget and forecast variances.

Banking Services

Our team can help your company to establish high-level banking relationships, and offer expert advice and support when it comes to sourcing bank loans, etc. Additionally, we can review and determine the optimal capital structure for refinancing or a liquidity event.


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