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What Happens When Function Follows Form?

Governance improves when credit unions pay attention to the structures (form) underlying their governance practices (function).

It’s often said that form follows function. I think we’ve all heard this old adage; but like me, you probably haven’t a clue of its origins. It’s a principle of architectural and industrial design that comes from the late 19th and early 20th centuries. Coined by American architect Louis Sullivan — often called the father of skyscrapers — it essentially means how a building or object is shaped should be directly related to its intended function or purpose. But Sullivan put it much more beautifully:

“Whether it be the sweeping eagle in his flight, or the open apple-blossom, the toiling work-horse, the blithe swan, the branching oak, the winding stream at its base, the drifting clouds, over all the coursing sun, form ever follows function, and this is the law. Where function does not change, form does not change. The granite rocks, the ever-brooding hills, remain for ages; the lightning lives, comes into shape, and dies, in a twinkling.”

I’ve had a few experiences recently that have led me to question this “law.” Does form really always follow function? Or can function sometimes follow form? And when it does, does the reversal put the very balance of nature (or in this case good governance) out of whack?

From what I’ve seen the answer is “Yes,” it certainly can.

I was consulting with a medium-sized credit a few years ago and was surprised to find it had five emeritus board members who were encouraged to take an active role in board meetings and strategic planning sessions. Five.

Now, don’t get me wrong. We at Quantum Governance believe maintaining historical continuity at the board level is important, and to be sure, an emeritus board member program is one effective way to do so. But it was the form this credit union’s emeritus program took that concerned me.

Although they didn’t have a vote, their voices and influence in the boardroom were more significant than even the current voting board members — rooting the board more firmly in the past than allowing it to freely consider potential changes for the future.

Another client recently shared with us that the members of its supervisory committee not only regularly attended board meetings but also held seats on board-level committees. The results? Besides the need for increased independence between the two governing partners, there was often confusion during the board meetings regarding who was allowed to vote, with the board chair needing to remind the supervisory committee members that they couldn’t vote on matters before the board.

So, what’s the answer?

Like most things in life, it’s a matter of being intentional.

Consider the implications of your decisions — and of your non-decisions. Don’t leave things to chance. Clearly spell out in your job descriptions, committee charters, and policies the roles and responsibilities of your board members (and emeritus board members) and your committee members. And when an unintentional consequence from one of your decisions arises (like supervisory committee members thinking that they can vote at board meetings), don’t just let it linger. Address it. Change it.

Ensure for your governance policies, practices, and procedures — like “the branching oak, the winding stream at its base, the drifting clouds, over all the coursing sun” — form ever follows function.

Jennie Boden is CEO of Quantum Governance. Ms. Boden has more than 30 years of experience in the credit union and nonprofit sectors and served as the chief staff officer for two nonprofits before coming to Quantum Governance.

Quantum Governance provides credit unions, corporations, nonprofits, associations, and governmental entities with strategic, cost-effective governance; ethics and management consulting; facilitation; and evaluation. With more than 60% of Quantum Governance’s clients representing credit unions, Quantum Governance is home to more strategic governance experience than any other practice in the country. The firm is a unique L3C organization that integrates the best elements of both the for- and non-profit communities into one practice. It is a low-profit, limited-liability service organization dedicated to the public good.

This article is sponsored by a recognized solutions provider in the credit union industry. Callahan & Associates does not endorse vendors or the solutions they offer, and the views and opinions offered here might not reflect those of Callahan. If you are interested in contributing an article on CreditUnions.com, please contact the Callahan team at ads@creditunions.com or 1-800-446-7453.
April 8, 2024
CreditUnions.com
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