Navigating the Transition: A Strategic Guide for First-Time Heads of Tax

The environment in which we operate today is significantly more unpredictable and complex than in the past. As the Head of Tax role adapts to shifting macroeconomic conditions, the strategic and operational demands have intensified over the past decade. The role has transformed, and technical skills are now just the baseline. The Head of Tax is under growing pressure to act as a key strategic partner, making the transition into this position increasingly challenging.

Newly appointed Heads of Tax frequently encounter several common challenges, such as coming in with preconceived ideas about the company and its strategy, making hasty decisions, failing to assemble an effective team, and, most notably, not positioning themselves as a strategic leader.

In this week's "Insights", we focus on how newly appointed Heads of Tax can ensure a successful transition into their new role.

Prepare for Success Ahead of Time

Being strategically and mentally prepared is crucial to a successful start as an incoming Head of Tax. A well-structured, high-impact development plan can help lay the foundation for long-term success in the role.

Research – When entering a new environment, it's essential to understand the organisation thoroughly. Dive into critical areas such as the company's history, culture, strategy, recent financial reports, and, most importantly, your key stakeholders. This knowledge will help you align your tax strategy with the broader business objectives.

Relationships – Before your official start, reach out to key stakeholders—both internal and external—especially those you may not have interacted with during the assessment process. Proactively schedule introductions to build rapport and foster collaboration. Lean on your new CFO to facilitate these connections so you're well-positioned to hit the ground running.

Reflect – Stepping into your first Head of Tax role can feel overwhelming, so reflect on your leadership style and goals. Consider the leader you want to be and outline your core objectives for the first 90, 180, and 360 days. Identify areas for personal growth, such as leadership skills that can be enhanced through training or coaching. Reflect on how you want to be perceived and plan your approach to critical areas like people management and stakeholder engagement.

90-Day Onboarding Blueprint

A 90-day onboarding plan for a Head of Tax outlines a structured approach to help them transition smoothly into the role and achieve early wins. This plan focuses on understanding the business, building relationships, and setting strategic goals that align with the company's objectives. Below is a breakdown of the typical phases of a 90-day onboarding plan for a Head of Tax:

Days 1–30: Learning and Understanding

Key Objectives:

• Familiarise with the Business: Deepen your understanding of the company's overall business model, financial structure, and critical tax obligations across different regions.
• Assess Tax Landscape: Review the company's current tax processes, strategies, and compliance procedures and understand how they are managed globally.
• Meet Key Stakeholders: Begin building relationships with senior leaders, such as the CFO, CEO, Chief Accounting Officer, legal counsel, and heads of finance in different regions. Identify the primary external tax advisors and auditors.
• Understand Strategic Priorities: Align with the company's short- and long-term goals and the role tax will play in supporting those objectives (e.g., mergers, expansions, restructuring).

Days 31–60: Analysing and Planning

Key Objectives:

• Tax Risk Assessment: Identify potential areas of tax risk and assess compliance across regions, including changes in tax regulations that might affect the business.
• Operational Review: Analyse tax operations and processes. Identify any inefficiencies or gaps in technology, processes, or knowledge that need improvement.
• Strategic Alignment: Start shaping the tax strategy to align with business goals. This includes reviewing the impact of tax on current and future business transactions, such as acquisitions or divestitures.
• Team Development: Evaluate the skills of the existing tax team and their ability to support the company's growth. Determine any talent gaps and areas for upskilling or new hires.

Days 61–90: Implementing and Strategising

Key Objectives:

• Strategy Finalisation: Finalise and present a comprehensive tax strategy to senior leadership that includes both short-term actions (quick wins) and long-term initiatives.
• Execution of Quick Wins: Implement process improvements or fixes that can deliver immediate value, such as enhancing tax compliance, improving documentation, or using tax software for automation.
• Integration with Leadership: Continue strengthening relationships with key stakeholders across the company and establish yourself as a strategic partner who can contribute to overall business decisions.
• Ongoing Development: If necessary, begin executing a talent development or recruitment plan to ensure the tax team is well-prepared to meet the company's growing needs.

 Key Focus Areas Throughout the 90 Days:

• Leadership Presence: Establish yourself as a visible and proactive leader within the tax department and the company.
• Strategic Contribution: Position the tax function as a strategic asset, demonstrating how tax can support the business in cost savings, compliance, and growth.
• Continuous Learning: Stay updated on any new global tax regulations or trends that may impact the company and be prepared to advise on their potential impact.

Outcomes by Day 90:

• A clear understanding of the company's tax position, opportunities, and challenges.
• Strong relationships with key internal and external stakeholders.
• A tax strategy aligned with the company's objectives.
• Quick wins that demonstrate immediate value, such as improved compliance or risk mitigation.
• A plan for long-term team development and process optimisation.

This 90-day plan helps ensure that the Head of Tax understands the existing tax framework and begins making strategic and operational contributions to the company's success.

Strategic Alliances: Key Relationships for First-Time Heads of Tax

As a first-time Head of Tax, the role will present various challenges. To navigate these complexities, experienced Heads of Tax often rely on key partnerships that were instrumental in their development:

Chief Finance Officer - Establishing a solid relationship with your CFO is crucial. When the CFO vouches for the Head of Tax during introductions with senior leaders and stakeholders, it can significantly speed up their integration and understanding of the organisation.

An External Mentor - Finding an impartial mentor who has held a similar tax leadership role can be an invaluable resource. This mentor can share insights and lessons learned, helping the Head of Tax navigate uncharted territory with confidence.

Your Network - Being in a senior role can sometimes feel isolating. Developing a network of trusted peers—both within and outside the tax function—can be incredibly beneficial. This network can offer honest feedback and act as a sounding board. Connecting with other Heads of Tax going through similar transitions can provide support, share experiences, and offer new perspectives.

Search Industry - Foster strong relationships with key contacts across the search industry. These individuals are well-positioned to provide valuable guidance regarding your current role or future career goals. By leveraging their insights, you can proactively address any skill gaps, ensuring your career trajectory stays on course.