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Customer Snapshot

Managing Performance, Aligning for Success

The Butterfield company began in

1758

trading Bermuda cedar, wine, and dry goods

 

In the Cayman Islands, Butterfield Bank’s performance management process needed a revamp. But the company also wanted a system that could help them return to sustained profitability. By choosing SuccessFactors Performance & Goals, Butterfield keeps employees across five jurisdictions aligned with corporate goals.

 

Company

Butterfield Bank

Headquarters

Hamilton, Bermuda

Revenue

US$54.9 million (2012 core earnings)

Number of Employees

1,300

Implementation Partners

---

Line of Business

Human Resources

Industry

Banking

Featured Products

SuccessFactors Succession & Development, SuccessFactors Compensation, SuccessFactors Performance & Goals, SuccessFactors Learning

History

Serving communities and institutions

 

  • 1800The Nathaniel Butterfield trading firm was founded in Bermuda in 1758, and by 1800, financial transactions began to dominate Butterfield’s daily business.
  • 1858The firm was established as Bermuda’s first private bank: The Bank of N.T. Butterfield.
  • 1904The bank was incorporated under a special act of the local Parliament.
  • 1967Butterfield in the Cayman Islands was incorporated as a wholly-owned subsidiary of The Bank of N. T. Butterfield & Son Limited.
  • 1980Acquired the Bermuda National Bank.
  • 1997NetBank is launched and was a total online service, offering 24-hour Internet transaction banking services.
  • 2001Launched Bermuda’s first Internet banking service.
  • 2002International Financial Services was established to unite numerous offshore operations within one division and to leverage existing expertise into target global markets.
  • 2007The Group’s first merger in Asia was completed with the acquisition of the Bank Arta Niaga Kencana (Bank ANK).
  • 2010Opening of branches in Shanghai, China, and Mumbai, India.
  • 2012The Core Banking Modernization (CBM) program begins, modernizing core banking systems and processes.
  • 2014Butterfield offers a full range of community banking services in Bermuda, Barbados, and the Cayman Islands, encompassing retail and corporate banking and treasury activities. They provide private banking, wealth management, and fiduciary services from their headquarters and subsidiary offices.
  • 2014Butterfield offers a full range of community banking services in Bermuda, Barbados, and the Cayman Islands, encompassing retail and corporate banking and treasury activities. They provide private banking, wealth management, and fiduciary services from their headquarters and subsidiary offices.
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From community banking to institutional financial services

Business Model

Smallbank, big reach

Although Butterfield Bank has just 1,300 employees, they provide financial services across the Cayman Islands, the Bahamas, London, Guernsey, Switzerland, and Bermuda. Butterfield offers retail and corporate banking, private banking, asset management, personal trust, and other specialist services to meet the needs of each market.

Success Strategy

Aligning every employee to the bottom line

Simply put, Butterfield Bank wants to return to sustainable profitability. They understand that performance management isn’t just a yearly exercise, but a fact of daily business. To drive better financial outcomes, they hope to align their employees more closely with specific corporate objectives.

The Challenge

Going beyond paper-and-pen

Butterfield HR sought an electronic solution to make their “paper-and-pen” performance and goal management process more transparent and accessible. But Butterfield also set out to overhaul their performance procedures companywide, for a more standardized approach to support their top corporate objective of returning to sustained profitability.

 

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Starting again

Enter SAP

Balanced scorecard or bust

Scrapping their outdated, highly subjective performance system, Butterfield Bank decided to start over with a new platform. But any potential solution had to be able to cascade strategic objectives to the workforce through balanced scorecards, which Butterfield had used successfully at the executive level. Only SuccessFactors met the requirements.

The SAP Experience

Staged rollout for a conservative culture

Butterfield introduced SuccessFactors Performance & Goals (in the Caymans), and Succession Planning and Compensation Planning (in Bermuda), eventually rolling both out to the whole group. Butterfield hadn’t been looking for a cloud-based solution, but was convinced SuccessFactors would keep data safe while making life easier for the IT department.

 

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Transforming performance management

Running Better

Flexible system fits growing bank

One of the reasons Butterfield Bank selected SuccessFactors was the system’s flexibility, allowing them to add or remove cost centers or jurisdictions as they grow. With SuccessFactors, Butterfield created a competency framework that everyone in the organization can understand and apply to their job – from messengers to managing directors.

 

This framework and the goals it contains are based on a balanced scorecard that measures customer excellence, people, internal processes, and financial performance. Butterfield has integrated SuccessFactors Performance Management with their existing learning management system (LMS) and content management system (CMS) to keep content synchronized.


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A bird’s eye view

Benefits

Internal promotions skyrocket

With SuccessFactors in place, Butterfield Bank has a clear global view of goal-setting and performance management – and can pinpoint areas of excellence or concern. A 2011 engagement survey in the Cayman Islands revealed that staff now see what’s expected of them and how their jobs feed back into organizational goals.

 

The balanced scorecard approach helps Butterfield align different jurisdictions and provides a holistic view of goal-setting and success, beyond historical financial data. With clearer insight into developing their employees, the bank has seen a clear uptick in internal promotions, since employees now understand how to further their careers.


 

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Phenomenal results

Lessons Learned

Employees trumpet their success

SuccessFactors changed how Butterfield Bank runs performance appraisals, empowering employees and enabling managers to see contributions made by individual staff. Employees now rate themselves first, with reasons they feel they’ve achieved or missed their goals, before going to their managers. Result: the bank has a clearer, more objective view.

Today

Next step: One central HRIS

In the long run, Butterfield Bank plans to standardize on a new HRIS as the next step in their mission to align their jurisdictions and harmonize their HR practices across them.

Journey Ahead

All eyes on the bottom line

Implementing SuccessFactors helped Butterfield fare well during a challenging five-year stretch in the world financial markets. The bank anticipates that keeping their entire team focused on three or four core objectives around sustained profitability will help drive superior financial performance in the future.

 

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Our customers are happier

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