It pays to fixate on business transformation

Are companies hunkering down and reining in their automation and transformation efforts in the face of today’s turbulent business environment, with its geopolitical conflicts, economic volatility and talent shortages? Not a bit, according to a PwC report that examines the benefits of taking an “obsessive” approach to business transformation. These advantages also apply to tax technology transformation. Top companies, according to PwC, continue to focus on “winning through transformation,” and they’re laser-focused on achieving objectives that drive meaningful business outcomes. 

Heads of tax and tax technologists will be interested to learn that the top 20% of companies in a PwC survey of management practices and investments achieved a “performance premium” of more than 13X compared to their competitors. These organizations “made proactive investments in their business, operating and technology models that drove performance outcomes in areas such as innovation, speed to market, and flexibility.” 

Tax leaders also may want to take a close look at PwC’s recommendations for leaders navigating the new reality of ongoing, end-to-end transformation. These include: 

• Being a leader, rather than a “boss:” Transformational leaders take the time to invest in relationships and build collaboration, camaraderie and conviction. Bosses, in contrast, build barriers with a management style that tends to stifle constructive debate. 
• Keep your eyes on the ROI prize: In a crisis, when cost-saving programs kick in, don’t assume that you need to cut back on everything; instead, you may just need to pull back on investments that don’t deliver ROI. When making decisions around expanding or contracting investments, consider using a simple matrix to list financial and nonfinancial impacts side-by-side, as they apply to the four groups that matter the most: employees, customers, shareholders and the communities in which you operate. 
• Seek fresh perspectives and ideas: Game-changing insights can come from more sources than we typically tap for ideas: conversations with leaders outside our industry (and our profession); white papers, podcasts and case studies; and one-on-one discussions with junior employees at our own organizations. Leaders who have guided digital transformations are especially valuable wellsprings of inspiration. 

Commitment is key to digital leadership, the report concludes. When it comes to transformation, a bit of obsession may not be a bad thing.