WICHITA, Kan. – Larry Damm, CEO at the $270-million Skyward Credit Union, has announced his retirement effective the end of September, 2016, after 18 years in the position. His career as a professional at the credit union, which serves current and former employees of Textron Aviation (Beechcraft and Cessna Aircraft Company) and members of their families, followed 17 years as a volunteer on the board or supervisory committee.
Below Mr. Damm shares some of this thoughts and lessons learned with CUToday.info.
CUToday.info: How did you come to be involved in CUs, and what was it like to transition from a voluntary role to a professional role?
Damm: In 1981, the credit union was recruiting new board members and wanted some representation, particularly with some financial or accounting background, from one of the new Divisions within the sponsor Cessna Aircraft Co. I was a CPA and Accounting Manager in that division, and was recommended as a candidate by a senior manager of the company. I was elected to the board and, after one term, I transitioned into a role on the Supervisory Committee. In the mid- to late-90’s, the credit union experienced some management turnover, some weaknesses in our accounting area, as well as growing pains with new products and services. I was actually on the search committee for a new manager. We had some bad experience in recruiting from the outside and one of the other members of the committee suggested that I consider taking the job. It sounded crazy at first, but I had knowledge of both the sponsor company and the issues of the credit union. I was offered the job, took the opportunity, and it was the best career decisions I ever made.
CUToday.info: What have you learned during your career about driving and managing growth?
Damm: It is not possible to do everything for everybody. Because a credit union should be member-focused, you need to know what is most important to your members and respond with value-added products and services. Technology moves at a greater pace than implementation and new stuff can be both costly and a resource hog. It is important to pace yourself and differentiate among the critical needs versus the “nice-to-haves”.
CUToday.info: What have you learned during your career about managing people, and has you changed as a manager?
Damm: I have been able to learn something from every boss I have had (some things to do, some things not to do). I had the opportunity to gain knowledge and experience through managing both small and large departments in corporate America. The most significant change I’ve seen is in work ethic. As a young manager back in the 70’s and 80’s, there was less concern over “work/life balance.” To succeed and be promoted, your job came first and that was passed on to those you managed. With a more diverse workforce today, one has to accept more flexibility and sensitivity in managing the workload and schedules of the staff. This is neither good nor bad, it is just different.
CUToday.info: Skyward is among the few CUs that still serve a specific sponsor(s). What are the challenges there, given the cyclical nature of aviation industry, and are there benefits?
Damm: Being basically a single-sponsor credit union is one of Skyward’s greatest strengths. Our offices are on the sponsor company campuses. The credit union is literally treated as a core benefit for the employees of the company. We are aware of the activities within the company that could impact the financial needs of our members. When our sponsor Cessna Aircraft merged with its cross-town competitor, Beechcraft, and became Textron Aviation, we participated in welcoming the broader family to our membership. As is noted, the aviation industry is very cyclical and this is certainly a challenge. In troubled economic times, we have been able to be very proactive with our members in their transition. This has resulted in an extremely loyal member base. For example, in 2008-09, our sponsor company experienced a layoff of over 50% of their workforce, while the credit union was able to retain nearly all of our membership.
CUToday.info: What is your view of the future of credit unions, if there is to be one?
Damm: I believe the reputation of credit unions in providing high quality financial services to consumers is becoming stronger even as the economy continues to struggle. I find it far more common today that people know what credit unions are and the value they provide. For many, the future is bright. But there will continue to be consolidation. The regulatory environment is so burdensome that small credit unions will continue to seek partners for survival. Unless a small credit union has a niche market and focus, they just don’t have the resources to maintain compliance with the myriad of new rules and regulations.