Earlier quoted context omitted.
I like the book quite a bit, and it's been formative in my politics. That said, I am not sure if the take-away is that managers need to account for these factors by allowing for illegibility- I am not reading you claim that, but contextually that's how the discussion feels to me. I do agree with Scott that enforcing perfect legibility is impossible and even attempting to do so can cause immense problems, and I agree…
Thank you for the reply! I don't want to make any strong claims here, but my gut reaction to your first comment is that what one manager calls “allowance for illegibility”, another might call “trust in my reports”.
Investors want to know how long you're going to keep making them money. They don't like surprises.
Really, I think what we need are new ways for investors to participate and understand and structure their investments that don't have negative downward consequences for the structure of businesses.