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What the book does
Davies examines why large organisations, markets, and governments repeatedly produce outcomes that their participants say they do not want. The book centres on accountability sinks: rules, procedures, and delegated decisions that absorb complaints while preventing feedback from reaching anyone who can act on it. It describes historical failures where it seems no one could be held accountable.
What it changes in practice
In many ways, this book helps to explain what governance is or should be to a general audience; namely, it should exist to stop an organisation from becoming an accountability sink. For NEDs, this means ensuring board papers and updates contain all the requisite information, and that awkward data points are not sanitised out, so emerging problems can be recognised in a timely fashion and governance/strategy adapted as required.
Davies proposes the solution is information flow: greater transparency, human oversight and personal responsibility, which sounds pretty much like a job description for a non-executive!
Why I recommend it
This is not a traditional governance book, which is part of its value. Davies offers a thought-provoking way to understand how accountability can be diluted in complex organisations and systems.
It made me think differently about board decision-making, as accountability is only meaningful if the consequences of the decision are clear. For NEDs and trustees, it is a useful reminder to reflect on what information reaches the board, how it gets there, and what may have been lost along the way.
Whilst Davies' focus on where systems fail creates a somewhat negative perspective, his accessible style and real-world examples make complex ideas easy to follow.
Who it suits
Aspiring, early-stage NEDs, as well as experienced non-execs taking on a new role, will all benefit from the book, as it challenges them to consider the information flow. Organisations can learn from the book's insights on designing information packs and making recommendations to the board.
Recommended by
Peggy Curley, NEDness Co-founder and Chief Communications Officer