Case Study Papyrus
Papyrus uses Cornerstone OnDemand to improve market competitiveness and unify brand
Business challenges and objectives
Established in 1895, the Papyrus Group has seen a significant amount of change in the paper market, but none as significant as the dawn of the internet and digital media. As digital communications grew, the paper market began to shrink, and by 2008, it was shrinking 5% yearon-year. Although Papyrus was maintaining profitability, it was losing market against digital and needed to act quickly to maintain its place.
The Papyrus team knew that motivating its internal team was a key way of improving competitiveness and maximising sales despite the adverse market. However, at the same time, the team was working to effectively integrate a number of acquired companies into one coherent operating body and present a unified face to the market.
Consequently, Papyrus needed a solution which would:
• Encourage and reward performance across the organisation
• Unify disparate companies across 20 markets into the Papyrus brand
“Since 2010, we’ve known that the market was going to become challenging for us and we’ve been evolving our strategy ever since, helping us to stay profitable and continue to provide the best possible service to our customers,” said Christian Carlsson, SVP HR, Papyrus Group. “We knew that staff motivation and encouraging the best performance was critical to our success, so we needed a system which would support progress to this goal.”
To maximise agility and stay as cost-effective as possible, the Papyrus team focused on cloud solutions for its new performance management system. After whittling the list down to two vendors, Papyrus chose Cornerstone Performance and Cornerstone Compensation.
“The Cornerstone team understood our needs and their products were configurable, which was valuable for us,” continued Carlsson. “For example, we could brand the solution as Papyrus rather than Cornerstone, reinforcing our brand image across Europe.”
After signing the contract in July 2011, Cornerstone conducted workshops and user testing with Papyrus, adapting product design to fit the needs of the business. Papyrus went live with Cornerstone Performance in January 2012 and rolled out Compensation in February 2012 to its top leaders. Cornerstone’s products are now helping to create a unified identity for Papyrus and drive its competitiveness in an adverse market.
The Results / Business Impact
Papyrus has now unified its HR Performance processes to present the brand as one entity rather than a group of acquired companies. Employees have a clear understanding of how their work is evaluated and how they can progress.
In January 2013, 95% of employees completed their reviews. Papyrus also gained:
• Motivation: 83% of staff declared that they have a good understanding of how to develop their competencies
• Enablement: The solution was operational in seven months, and 1,500 users went live simultaneously, allowing Papyrus to capitalise on benefits quickly and compete more effectively
• Productivity: The Papyrus team have European consistency (across 20 markets) over employee competency – whilst locally-sensitive targets can be set, all staff are evaluated by the same system
• Company Profitability: A unified and rapidly deployed performance and compensation system has meant that the company has come together and is moving in the same direction, improving competitiveness.
“Our evaluation procedure is now a rolling and ongoing process,” continued Carlsson. “We can set objectives at the start, before doing a mid-year review in summer, later revisiting goals in winter before setting objectives again.”
Papyrus Group now has a transparent and consistent view of performance across Europe where any anomalies can be quickly recognised and corrected. Cornerstone Compensation is being used to track how Papyrus rewards its top leaders – the top 100 leaders in the organisation. For example, any individuals in this group who have a low performance score but are receiving high compensation can be identified and appropriate action taken. HR is now a much more streamlined process, with one system and set of processes minimising administration for the company.
“Using Cornerstone has given us a way of making sure that our top leaders are evaluated and compensated consistently across Europe, helping us to maintain competitiveness and unify our brand during a challenging time,” concluded Carlsson. “Although it’s too early to evaluate the overall business success, we’re confident that we’re now supporting and making the most of our number one asset: our people.”
In future, Papyrus is looking to use Cornerstone Learning Cloud to handle training and development within the group, driving innovation and maintaining excellence across Europe.
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The unbreakable link between performance management and employee engagement
The concept of employee engagement, around since the early nineties, was first introduced in “Psychological Conditions of Personal Engagement and Disengagement at Work” in the Academy of Management Journal.