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The Butterfield company began in
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.
US$54.9 million (2012 core earnings)
SuccessFactors Succession & Development, SuccessFactors Compensation, SuccessFactors Performance & Goals, SuccessFactors Learning
From community banking to institutional financial services
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.
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.
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.
Scrapping their outdated, highly subjective performance system, Butterfield Bank decided to start over with a new platform.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.
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.
Transforming performance management
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.
A bird’s eye view
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.
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.
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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