Happy 50th, CUNA School

The venerable executive development program has grown along with the CU movement.

"Credit unions have definitely grown up in both number and size. With the increases in recent years has come a growing need for trained, capable personnel who are able and willing to devote full time to credit union work and make it their career."

Thus began the Credit Union National Association (CUNA) School for Credit Union Personnel, reports the March 1954 Credit Union Bridge, predecessor to Credit Union Magazine. The school, now called CUNA Management School, observes its 50th anniversary this month.

About 3,500 students have graduated from the University of Wisconsin (UW)-based school in Madison. Another 5,000 have graduated from regional schools.

Credit unions were growing up in 1954 but seem small by today's standards: 919 credit unions were organized in 1954, bringing the total to 15,071 institutions with 7.2 million members and $2.3 billion in assets. That would put average assets at $152,300.

Most credit union practitioners had grown up with their credit unions and lacked management skills. Now they needed to become full-time treasurers/managers, managing assets and employees.

CU prep school

C. Dean DeVore was assistant manager of Staley Credit Union in Decatur, Ill., when he enrolled in 1957. His manager, Cecil Taylor, graduated with the first class in 1956. CUNA School was a kind of prep school for credit union managers. Like now, the school required students to complete a planning project using their home credit unions.

"I analyzed my credit union and made recommendations," says DeVore, adding that the tough part was working on the project between summer sessions. "You leave the school and you get out of the routine of studying," he says.

DeVore later became president of Staley and spent 39 years there before retiring in 1987. He also earned a business degree from Millikin University in Decatur.

The school's first class had 55 students, including three clergymen and 14 women. CUNA School had an international flair from the start. People came from abroad: the Caribbean, Canada-including Quebec's caisse populaires-and Australia. And Methodist and Roman Catholic churches sent missionaries.

Four Catholic missionaries attended in 1955 before departing for Korea and the Philippine Islands to foster credit unions. In 1959, CUNA School welcomed students from Malaya, Uganda, Peru, and Panama, and three missionaries preparing for overseas duties. Even today, students come from Macedonia and the Caribbean, particularly Barbados.

In the early years, credit union volunteers composed large portions of the classes. Directors often ran day-to-day credit union operations in those days, so it wasn't unusual for them to attend CUNA School.

It wasn't strictly a management school at first. For many students, it was their first college experience. That's true today as well. About half of today's students have college degrees or experience, according to Tom Decker, CUNA's director of executive development and the school's director since 1999.

Today, students might hold graduate degrees in specific fields, such as law or accounting. They attend to learn about credit unions, the credit union movement, and the credit union cooperative philosophy.

Ann Evenson Rajanen, chief audit officer with South Carolina Federal Credit Union in North Charleston, has a bachelor of science degree in accounting and clothing and textiles. She's certified as a bank auditor, fraud examiner, and financial services auditor.

"In audit we have exposure to all departments: loans, collections, and tellers handling cash," says Rajanen. CUNA Management School gave her a picture of how the entire credit union operates. "I was able to bring a different perspective to the school than an operations person."

Eddie Hamp attended to get the credit union perspective. Hamp has an undergraduate degree in finance and a master's degree in management. His credit union career began in 1989 as manager of a $3 million asset credit union. He previously had been in banking for seven years and was a branch manager.

"You need to understand not just credit union philosophy but credit union management," says Hamp, who now is senior vice president of marketing for Tampa Bay (Fla.) Federal Credit Union and CEO of its credit union service organization.

The school's course of study was academic from the start (see "CUNA School curriculum"). And the school's two-year credit union project existed from day one. Students use their credit unions' history and financials to make projections and plans. "In the end, you're providing a strategic plan for your credit union," says Decker. In their third year, students present these projects to their teachers and peers, and defend their plans.

"I think they thought we were trying to torture them for three years, but in time they realized what we were doing," says Pam Bitton, who worked with the school from 1988 to 1992, including two years as director. "Their first year, they were scared to death to stand in front of people and make presentations. We'd tell them if they wanted to be in management, they'd have to make presentations to the board or community groups. The school is a safe environment in which to learn."

The school and its project taught students how to do research and, maybe more important, how to network. "They were together two weeks a year for three years, and they helped each other with the demanding project," Bitton explains. "The students depend on each other and see how sharing strengthens the whole credit union movement."

Making CU friends

It's a credit union axiom that practitioners share operating ideas. That principle certainly is evident at CUNA School, where students build networking relationships-friendships that last a lifetime.

"A strong bond develops among us," Deborah Hall, manager of Nebraska Medical Center Federal Credit Union in Omaha, told Credit Union Magazine in 1974. "There is a unity that is not left behind in Madison. Perhaps for the first time we are able to leave our two-room office world and see all the two-room office worlds as one. We realize we must work together. Certainly, in the face of law and government today, the need for unity has never been greater."

Peer learning continues today. "The interactive education among students was well worth being there," says Anthony Dominick, president/CEO of Bay Pines (Fla.) Federal Credit Union. Dominick graduated from CUNA School in 1976 and continued to be an active alumnus, substitute teacher, and volunteer class coordinator until 1995. He recalls that a student's project was central to the school curriculum.

"People went all out for their third-year project presentalions," Dominick says. "We dressed in full business attire. The night before, when students were preparing, all the students who lived on that dormitory floor made sure it was quiet. They practiced their presentations on each other."

Camaraderie is another important element. Social activities such as auctions for scholarships, theme parties, trips to Milwaukee Brewers games, and visits to a local dinner theater help foster personal relationships.

Now a management school

CUNA School became more recognized as a genuine management school under the guidance of Hank Dykstal, vice president of CUNAs former human resource development department, and Marv Kilton, whom Dykstal hired to direct the school. The name changed from "CUNA School for Credit Union Personnel" to "CUNA Management School" in 1984.

We saw more managers and assistant managers coming from multimilliondollar credit unions," says Kilton. "We always had staff from small credit unions, That's where most of the scholarship money went."

Dykstal and Kilton lengthened the school year and daily classes, moved away from outside speakers, and used university faculty almost exclusively.

Dykstal installed class coordinators, CUNA staffers who helped the faculty supervise classes and outlined the objectives for each session. Soon after, Kilton introduced volunteer coordinators from the alumni. The goal was to put the school on a professional basis and retain the university sanction.

"It was big stuff to get a [graduation] certificate from the UW," Kilton says.

Hamp, who graduated from CUNA School in 1995, just finished two three-year stints as a class coordinator for the classes of 2000 and 2003. "The school was such a rewarding experience that I offered to volunteer," says Hamp. He acts as a board adviser to the alumni group and is involved in hosting this year's alumni seminar, which could become an annual event. A graduate program has been offered in the past.

"It's a very practical school, one of the best out there for credit unions," says Hamp. "We send folks from our credit union. They get the basics of financial management and planning. The school gets you into a strategic thinking mode."

A continuing evolution

Credit union directors who attended CUNA School in the early years-often at their own expense and on their own time-had virtually disappeared by 1980, says Dykstal. Another trend was the transition from mostly male students to mostly female today. Today's ratio of students at CUNA Management School in Madison is one-third men and two-thirds women.

Administrators from all four regional schools review the curriculum every year to keep pace with the changing environment. The curriculum contains essential courses such as asset/liability management, lending, and human relations, says Decker. "We also try to stay current with emerging issues-things CEOs need to know, such as strategic relationships and alliances, business lending, and relationship marketing."

The school has been a crucible for testing credit union issues: In 1963, students discussed J.T. Croteau's book, "A National Central Credit Society." In 1971, the topic was the coming "cashless-checkless" brave new world and computer technology.

A recent change is beginning each session with an outdoor learning opportunity ("What it means to be Xtreme," p. 38). First-year students take a rope-climbing course as a team-building exercise. second-year students go on a "coopitition" field trip, requiring competition and cooperation. And third-year students climb rocks, build rafts, and create a community service project.

"We use the teachings of Robert Greenleaf, who founded the 'servant leadership' philosophy," says Decker. Greenleaf was in charge of executive training at AT&T and adopted Benjamin Franklin's philosophy of "Do well by doing good," Decker explains.

CUNA Management School awards $2,000 to the community service project students select as having the most merit. "Two years ago, a community development credit union won," says Decker. "Last year, a student from Macedonia won."

Decker sees these outdoor activities as teambuilding experiences, while the recreational activities promote networking. "Students do as much learning outside the classroom as they do inside the classroom. They're teaching each other and learning from each other."

This year, CUNA Management School alumni are invited to attend a 50th anniversary gathering and seminar, including staying in the dorm to relive their experience.

"Staying in a dorm room humbles you," says Rajanen. "It's different from coming to work every day in a suit and tie."

But she recommends the experience. "It's a lot of work. You can't worry about what's happening at your credit union. I hear, ? can't be gone from my credit union for two weeks.' If you truly believe in your development and you have a goal to get into management, you really need this experience."

Dominick also endorses the school experience. He has sent several employees to the school, many of whom have moved on from his credit union. "Every employee I've had who attended CUNA Management School turned out to be much better, more rounded, and capable of taking on more responsibility."

What's your favorite CUNA School memory?

RESOURCES

* For information about CUNA's four regional management schools, visit train ing.cuna.org/on_site/regiona/info.html.

* Turning Pointe Consulting, Lake Mills, Wis.; 920-648-6608.

* University of Wisconsin-Madison; www.wisc.edu.

Copyright Credit Union National Association, Inc. Jul 2004
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