A Holistic Approach to Tax Leadership

We’re all familiar with the need to regularly update our laptop operating systems and our phone apps – but what about our “leadership operating systems?” It turns out that upgrades to our personal leadership strategies and approaches can help business leaders, including tax executives, drive change efforts more effectively. 

Tax leaders deeply involved in ERP cloud migrations, e-invoicing initiatives, tax technology stack upgrades and other improvement priorities should consider installing the latest version of their personal leadership model, according to this McKinsey article. The analysis identifies four actions to perform as part of a leadership refresh:   

1. Define your priorities: Start by developing a clear understanding of your internal and external stakeholders and their key mandates, both implicit and explicit. Set ambitious goals but be clear about mandates that you think are unrealistic. Remember that change happens through conversations. Identify your most critical leadership conversations for the next few months and define what you want people to feel, know and do after the meeting. Decide what you can quit doing. Leaders often take on too many projects and hesitate to quit low-priority activities. It’s better to stick to a limited set of priorities.
2. Focus and delegate: Identify the work that only you can do. Leaders who consistently apply their distinctive strengths can make a significant difference to their organization’s financial performance. Don’t try to do everything; build a strong support team that can tackle high-priority assignments and propel the change agenda while also covering your weak spots.
3. Redesign your time: Set clear boundaries for your time and define who has access to it. Establish a rhythm for calendar demands such as client conversations, governance meetings, performance meetings and thought leadership opportunities (which I’ve worked into my monthly cadence). Structure your meetings for maximum impact by paying close attention to purpose, inputs and desired outcomes.
4. Optimize your energy: It’s important to understand how you will protect your health in a demanding tax leadership role. Even small lifestyle changes can help you build resilience and counter stress. Explore ways to nurture friendships inside and outside the workplace. Understand why the work matters to you; connecting your work to your personal sense of purpose can unlock great energy.

McKinsey concludes that executives who master their personal operating model comprehensively can help others across the organization develop the same skill. Tax leaders may want to do the same.

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