By any measure, the Confederation of British Industry (CBI) has had a shocking 10 days.

The CBI's woes began on Good Friday, when it was revealed that the business body had registered with the Electoral Commission to campaign for a No vote.

This controversial decision led to an exodus of members, many of which were public-sector bodies under the control of the pro-independence SNP Government.

After a stream of stories about members quitting, CBI director general John Cridland admitted a "mistake" and confirmed that his organisation would be seeking to de-register. It would be comical were it not so serious.

The CBI's statements on the fiasco also appear contradictory. Cridland told the BBC that the registration had been made by a junior official in London, not by CBI Scotland.

But his press office previously stated that a "final decision" had been made by the CBI's Scotland council. A spokesperson said yesterday that the "final decision" comment referred to the CBI's position on independence, not to registration with the Electoral Commission.

Even so, it beggars belief that a politically explosive issue such as formally taking sides in the referendum was the result of an administrative oversight by a lowly employee. That such a thing could have happened suggests that the CBI is either dysfunctional or totally unaware of how divisive the referendum is in Scotland.

Organisations taking a position on independence is not a problem. But as was the case with the CBI, what is crucial is the process by which these decisions are made.

Any change to the CBI's position, like formal registration, should have been preceded by consultation with all members north of the border. It is appalling that Scottish Enterprise and universities only learnt about the decision through the media.

As we reveal today, CBI Scotland director Iain McMillan has announced his retirement. He says this decision was made before the row broke.

However, McMillan's successor has a huge job in turning around the CBI's reputation and mending its relationship with the Scottish Government. Between now and the referendum, the CBI will be seen as a nakedly partisan interest group in the corridors of power.

The CBI's job is to act as the voice of business and make the case for wealth creation. Its members expect business representation and effective lobbying of government to create the conditions for a booming private sector. What its members don't expect is for the CBI to act like a sub-division of the Tory party.