organisation for the 21st Century. Scotsman Calum Johnston revealed he would institute "a number of changes'' to improve efficiency at the bank. But he told The Royal Gazette the bank was already in good shape and in line for a top international finance award. Mr. Johnston, who took over as President and Chief Executive Officer in December, also said the bank was making investments to kill off the Millennium Bug -- a problem which could send computers into chaos on January 1, 2000. He unveiled the initiatives after giving a speech to Hamilton Rotary Club yesterday. "First, I have got to get the team to know how I want to operate,'' he said. "They must be informed of the roles I want them to play and the way I'm going to do things. "There will be changes to existing practices and changes to staff. But there will not be any lay-offs.

We are hiring, not firing. "I want people to ask where the bank has found all these marvellous people who work so hard to give them such an efficient service.'' Mr. Johnston said there were three options to consider before beginning a programme of change. "There's internal change, which is seamless and usually successful,'' he said. "There's the imported CEO who comes in, doesn't make any changes and is usually unsuccessful. "Then there's the one who makes huge changes and that's a very risky thing. So I have only really got two choices if I want to be successful -- and there will be some changes.'' Mr. Johnston, who left a senior post with the Bank of Nova Scotia, also said the Bank of Butterfield would not be caught out by the year 2000 computer virus. "Banks worldwide face a bill of $16 billion over the next two years to make their computers ready for the turn of the century,'' he said.

"The problems go back to the 1960s when computer storage space was at a premium and memory could be saved by using two-figure date codes. "Nobody dreamed that programmes written so long ago would still be in use today. "But unless the logic is modified, many programmes will think that the year 00 isn't the year 2000 at all but is the year 1900. "Can you imagine what that would mean for someone's overdraft? "All I can say is that the Bank of Butterfield will be ready. That's not bragging. If you can do it, you are not bragging.'' He added: "We have not had to make a great deal of investment for that. "We have bought computer packages or systems and linked them together and they are or will be made 2000 compliant. "It's not been a big financial consideration. In fact, it's only about the same as we would have spent on upgrading our computer systems anyway.'' Mr. Johnston said the bank's mutual funds were recently judged to be the third best in the world, taking 139 banks into consideration. And he added: "Hopefully, we will soon be able to announce an even more impressive award. "I cannot elaborate on it yet but it's something which should make everybody connected with the bank feel very proud.'' PHOTO PLANNING CHANGES -- Calum Johnston