#66: When Chaos Beats Process

A Surprising Business Lesson

Every business school, consultant, and "thought leader" will tell you the same thing: structure is everything. Processes, hierarchies, decision-making frameworks, clear roles and responsibilities. Follow the playbook, and success will follow.

I used to believe this was the only way too. Then I invested in a company that threw the entire playbook out the window, and watched them print money.

Chaos in Action

Traditional business wisdom says you need clear decision-making processes. Some companies operate where chaos predominates. Decisions get made in the moment, often by whoever happens to be in the room. There's no lengthy committee review, no PowerPoint decks, no "let's circle back next week."

Most companies would call this reckless. These companies call it Tuesday.

Traditional wisdom says you need defined roles and hierarchies. In anti-handbook organisations, people jump between functions as needed. The same person handling partnerships might be optimising creative the next day. Org charts? What org charts?

Traditional wisdom says you need predictable processes. In these environments, the process is whatever works right now. If something breaks, they fix it. If something works, they do more of it. No six-month planning cycles.

Here's the thing that shocked me: this approach can outperform traditional structures in some situations.

Why Chaos Creates Value

The more I observed these unconventional operations, the more I understood why their "anti-handbook" approach generates such strong results:

Speed trumps perfection. While traditional companies are still forming committees to discuss whether to form a committee, chaos-driven organisations have already tested, failed, iterated, and found what works.

Reduced bureaucracy means reduced friction. Every process you add creates drag. Every approval layer slows decisions. Stripping away the friction that kills momentum in most organisations becomes a competitive advantage.

Necessity breeds innovation. When you can't rely on rigid processes, you're forced to be creative. Teams become experts at improvisation, finding unconventional solutions that structured companies would never consider.

Skin in the game changes everything. When everyone's success is directly tied to results (not following processes), people take ownership differently. There's no hiding behind "I followed the process" when the process doesn't exist.

The Dark Side of Chaos

Let me be clear: this isn't some romantic endorsement of chaos for chaos's sake. The anti-handbook approach comes with real costs:

  • Higher stress levels for team members

  • Inconsistent execution on routine tasks

  • Difficulty scaling beyond a certain size

  • Challenging to onboard new people

  • Almost impossible to replicate

Most importantly, it requires exceptional people. The chaos approach only works when you have team members who can handle ambiguity, think independently, and deliver results without hand-holding.

When to Embrace the Anti-Handbook

So when does chaos beat structure? In my experience, the anti-handbook thrives in:

Fast-moving markets where speed matters more than consistency. If your industry changes weekly, your six-month planning cycle is useless.

Creative industries where innovation trumps efficiency. Sometimes the best ideas come from breaking the rules.

Small teams where communication overhead is minimal. The larger you get, the more structure you need.

Crisis situations where traditional approaches have failed. Sometimes you need to burn the playbook and start fresh.

The Lesson for Your Business

I'm not suggesting you should tear up all your processes tomorrow. But I am suggesting you question which of your sacred structures are actually helping versus hurting.

Look at your slowest decisions. Your most frustrating processes. Your biggest bottlenecks. Ask yourself: what would happen if we just... didn't do this anymore?

A lot of successful companies have learned to be selectively chaotic. They maintain structure where it adds value and embrace chaos where it creates advantage.

Sometimes the best business strategy is having no strategy at all. Sometimes the most effective leadership is admitting you don't have all the answers and letting your team figure it out.

In an industry moving as fast as ours, maybe, in some situations you need to embrace more chaos.

Just make sure you've got the right people on your ship.

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