Beyond Numbers: What Non-Technical Skills Do CFOs Prioritise When Hiring Their Tax Lead?

People Leadership

Q. How would you approach leading a large, experienced team to ensure each member's expertise is utilised effectively while maintaining team cohesion and achieving the function's overall objectives? Can you share a specific strategy or example from your experience?

The ability to guide, motivate, and manage a team towards achieving common goals is critical. It encompasses a variety of skills and qualities, such as empathy, vision setting, integrity, empowerment and development. From a tax perspective, influential people leaders ensure compliance, optimise tax strategies and align with the broader business objectives. Influential tax leaders guide their teams through regulatory changes, foster innovation, and ensure operational efficiency. In addition, they can create a resilient and high-performing tax function that supports the organisation's overall goals by focusing on employee engagement, professional development, and strategic alignment.

Impact on the Tax Team

• Skill Development and Growth: Mentorship and training enhance the team's abilities and ensure they remain aligned with current tax laws.
• Motivation and Engagement: Empowerment and recognition boost morale and foster a sense of ownership.
• Team Cohesion and Collaboration: Trust-building encourages open communication, while conflict resolution promotes a harmonious environment.
• Operational Efficiency: Clear communication and effective delegation improve productivity and ensure timely task completion.

Impact on the CFO and Organisation

• Strategic Alignment: Synergy aligns team efforts with CFO objectives, integrating tax strategies into broader business plans.
• Enhanced Decision-Making: Informed insights offer timely recommendations and mitigate tax risks proactively.
• Improved Communication and Reporting: Transparency builds CFO confidence, and stakeholder engagement boosts collaboration.
• Organisational Culture and Reputation: A positive environment attracts talent, while reputation management enhances reliability and integrity.

Business Acumen

Q. Can you provide an example of a time when you successfully interacted with stakeholders to align their goals with broader corporate initiatives? How did you ensure their objectives aligned with the company's overall strategy?

Tax leaders must understand a business's operations, including its strategic objectives, financial goals, market dynamics, and competitive landscape. Strong business acumen means tax leaders can effectively align tax strategies with broader business goals, make informed decisions, drive operational efficiency, and contribute to the organisation's success beyond mere compliance. By fostering a strategic, collaborative, and proactive approach to tax management, these leaders contribute significantly to the organisation's success and resilience, ultimately benefiting the CFO and the entire organisation.

Impact on the Tax Team

• Development and Motivation: Leaders mentor their teams to enhance skills, improve business understanding and strategic thinking, foster ownership and motivate the team for organisational success.
• Operational Efficiency: Process improvements align with business objectives to boost efficiency, while technology adoption ensures agility in managing complex tax issues.

Impact on the CFO and Organisation

• Strategic Partnership: Tax leaders align strategies with CFO goals to optimise cash flow and support investments, identifying tax-saving opportunities to enhance financial health.
• Risk Management and Compliance: Leaders navigate regulatory changes to ensure compliance, reduce penalties, and prepare for audits to maintain transparency and minimise disruptions.
• Enhanced Reporting and Transparency: Accurate tax forecasting aids financial planning, while comprehensive reporting builds stakeholder confidence and credibility.

Project Management

Q. Can you describe a project you managed from inception to completion? What steps did you take to ensure it stayed on track, within budget, and met its objectives? How did you handle any challenges or changes that arose during the project?

A critical trait for senior tax leaders is the ability to plan, execute, and oversee projects efficiently, ensuring they are completed on time, within budget, and to the desired quality standards. Strong project management skills mean tax leaders can effectively manage complex tax projects, such as compliance initiatives, tax audits, and strategic tax planning. Tax leaders with solid project management skills ensure efficient, aligned, and compliant tax operations. This benefits the tax team, supports the CFO's objectives, and contributes to the organisation's overall success and financial stability.

Impact on the Tax Team

• Clarity and Focus: Clear goals and timelines keep the team focused and reduce stress by minimising last-minute rushes.
• Skill Development: Growth opportunities and clear plans foster project management skills, leadership roles, ownership, and accountability.
• Collaboration and Communication: Improved coordination and regular updates enhance teamwork and keep everyone informed.

Impact on the CFO and Organisation

• Strategic Alignment: Aligned initiatives ensure tax projects support CFO goals, enhancing decision-making with clear outcomes and timelines.
• Financial Performance: Cost efficiency keeps projects within budget, while risk reduction minimises non-compliance and financial penalties.
• Transparency: Accurate forecasting aids financial planning, and transparency builds stakeholder confidence and trust.

Strategic Thinking

Q. Can you provide an example of a time when you identified a significant opportunity for improvement within your organisation? How did you develop and implement a strategy to capitalise on this opportunity, and what were the long-term outcomes?

Strategic solid thinking in tax leaders is essential for aligning tax strategies with business objectives, managing risks effectively, and creating long-term value for the organisation. By fostering a strategic mindset within the tax team and collaborating closely with the CFO and other stakeholders, tax leaders contribute to sustainable growth, financial performance, and stakeholder confidence in the organisation's tax function.

Impact on the Tax Team

• Clarity and Direction: Clear goals align with organisational strategy, empowering team input and fostering engagement.
• Skill Development: Promotes a learning culture and leadership preparation through strategic initiatives.
• Collaboration and Communication: Integrates tax with finance, legal, and operations, ensuring clear communication of strategies.

Impact on the CFO and Organisation

• Strategic Decision-Making: Provides insights and risk assessments to guide CFO decisions.
• Financial Performance: Optimises costs and cash flow, prioritising impactful tax initiatives.
• Stakeholder Confidence: Builds trust through transparency and ethical leadership, enhancing reputation.

Communication

Q. Can you explain how you effectively communicated a complex issue or recommendation to senior management and finance leadership? How did you ensure your message was clearly understood and acted upon?

Strong communication skills in tax leaders are essential for aligning tax strategies with business goals, ensuring compliance, and optimising financial outcomes. Effective communication fosters collaboration within the tax team, facilitates informed decision-making by the CFO, and builds trust with stakeholders, enhancing the overall effectiveness and reputation of the organisation's tax function. 

Impact on the Tax Team

• Clarity and Direction: Clear guidance and expectations reduce ambiguity, enhance productivity, and motivate team members by emphasising their roles in achieving tax objectives.
• Skill Development: Encourages ongoing learning with clear feedback and fosters teamwork through open communication.
• Change Management: Communicates changes effectively to aid adaptation and mitigate resistance by addressing concerns and fostering buy-in.

Impact on the CFO and Organisation

• Informed Decision-Making: Provides the CFO with strategic tax insights and risk assessments to guide decisions aligned with financial goals.
• Financial Performance: Optimises financial outcomes and minimises tax liabilities by effectively communicating tax strategies and strategic resource allocation.
• Stakeholder Confidence: Builds trust with investors and regulators through transparent communication of tax strategies, compliance efforts, and ethical practices.

When entering a new process, address the abovementioned skills, providing concrete examples for each. Be prepared to discuss these in detail with the CFO and HR Director. Clearly explain the project's focus and the actions you undertook before summarising each project's outcomes, citing specific information where appropriate. This approach will ensure you present your experience and yourself in the best possible light.

In a competitive market, effectively framing your experience and guiding your audience through your career is crucial. To an extent, your profile—level of expertise, alignment between your current company and the hiring organisation, and technical exposure (amongst other items)—has already been "approved" ahead of an interview. It is now up to you to ensure your audience fully understands your non-technical experience and the value you can bring, especially regarding these critical leadership and soft skills.