“We wanted every employee to have the owner’s eye”
Butterfly Data (employee owned since 2021)
Specialism: Data management consulting
Offices: Manchester, Cardiff
Staff: 29
Q&A with Co-founder and Director Sara Boltman
What was the trigger for you becoming an employee-owned business?
We wanted to grow, and we needed the team to be as motivated as we are in finding new opportunities and exploring new areas for us to expand into.
Data is key in every sector, but some are not profitable for us, don’t match our ethical standards or are already oversaturated with competitors.
Choosing the right path needs the whole team to pull in the same direction, so it only seems fair that the rewards should balance the risk.
We wanted every employee to have the owner’s eye when looking at the types of problem we can solve in the world, the quality of our work and the integrity of our relationships.
What was the most challenging aspect of becoming an EOT?
There was a lot of paperwork, but Andrew Harrison of Co-ownership Solutions helped us with the legal and financial requirements and briefed the team about what it meant for them. We have two employee representatives who come to the quarterly meetings and have transparent access to the financial information, plus an independent Trustee.
You’ve been an EOT for three-and-a-half years now. Has it had any impact on any of your KPIs, for instance staff retention?
Yes, our staff retention rate has improved. Data scientists and analysts are in great demand and there is a tendency to move on every couple of years, which was hard for us as a small business because we invest a lot of time and effort in getting our team trained up, experience with all the right tools. Vetting alone can take three months, so whenever someone left it would take a while to recruit and replace them.
What’s the biggest upside of being an EOT?
We are also a certified B Corp, which means we serve not just our shareholders but our customers, employees and community.
The application process is usually pretty tough, but when it came to proving that we operate in the best interests of our employees, those questions were easy to answer with concrete examples of how we reward and motivate the team with family days, 1% charitable giving, team mountain climbing events and school outreach.
Are there any drawbacks?
It can sometimes feel like everyone wants their voice heard and their opinion to be taken into account when we are making decisions. But we are not running the company by committee – the directors still set the vision and lead the way.
It’s a constant balancing act to make sure the team feel empowered and they can see our succession planning taking shape. After all, the future leadership of the company will come from within the existing team – we are growing our own exit plan.
What message would you have for other MSPs or IT consultancies contemplating becoming an EOT?
For owners who are willing to release their majority stake in a company and want the company to continue growing without having to take on investment from venture capitalists or sell to a larger company, it’s an ideal route.
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