Four Problems Facing our Departments

As we step into 2024, many of us are reflecting on our personal and professional goals for the year. In the realm of corporate departments, especially in areas like tax and finance, this reflection should revolve around addressing the continual challenges that demand our ongoing attention. In my department, we've identified four primary problem statements that serve as guideposts for evaluating potential improvements and their worthiness of our time and effort. These are:

• Volume: Managing high volumes of tasks, ranging from numerous discrete tasks to complex, multi-step processes. The goal is to handle this volume efficiently without sacrificing quality.
• Complexity: Navigating the increasing intricacy of tasks and projects, which require sophisticated understanding and specialized skills.
• Team Development and Engagement: Fostering team growth and skill development, ensuring each member is equipped to handle the challenges of their role.
• Succession Planning and Knowledge Transfer: Ensuring continuity and retention of expertise within the team, especially as members transition in and out of roles.

These problem statements are interconnected, with a clear relationship where solving one can have a direct positive impact on the others. For instance, effectively managing volume (Problem Statement 1) can significantly ease team development challenges (Problem Statement 3). Addressing these problem statements is a reciprocal process; while managing volume effectively can significantly alleviate team development challenges, developing specific skills like automation within the team can also have a targeted impact on reducing volume.??

In this article, I aim to lay the groundwork for understanding these four critical areas and their interrelationships. This will set the stage for a series of focused discussions on how AI can be strategically deployed to address each of these challenges, ultimately enhancing our department's efficiency and effectiveness in 2024 and beyond.

Work Smarter, Not Harder: Tackling the Volume Challenge

Understanding Volume in Our Work:

Volume in a professional context refers to the high number of tasks and demands that exceed our time and resources. In our department, this takes several forms:

• 100s of tax filings
• Overwhelming amounts of emails and physical mail.
• Frequent, recurring basic inquiries from stakeholders.
• Numerous administrative duties and routine tasks.
• Constant pull on our attention across diverse tasks.

Such volume isn't merely about the number of tasks; it's about the significant drain on our most valuable asset: time.

Impact of Volume on Focus and Growth:

High-volume workloads often leave little space for the complex, intellectually stimulating tasks that drive professional growth. Standard time and task management strategies fall short when overwhelmed by sheer volume. This situation leads to opportunity costs, as the attention needed for higher risk, high-value projects is consumed by routine work.

How can we lighten the load?

Navigating Complexity: More than Just Juggling

If we liken volume to a juggler adding more balls to their act, then complexity is when those balls change shape, size, and weight, and even spontaneously catching fire. It's not just about managing more elements; it's about adapting to their ever-changing and unpredictable nature.

Complexity manifests in various challenging forms:

• Operational Complexity with Multiple Systems?
• Multiple Jurisdictions: each with its own set of rules and regulations, multiplying the complexity manifold.
• Frequent Changes to Rules and Regulations: introduces new complexities that require us to be continually updated and adaptive.
• Multiple Tax Types: Our scope covers an array of tax types including corporate tax, indirect tax, transfer pricing, cross-border taxation, and tax accounting, each with its set of challenges.
• Integrating Facts: Overlaying the factual matrix of the company onto this already complex framework demands a nuanced understanding of our organization and its operations.

The Impact of Operating in Complexity:

Dealing with such complexity requires a practical understanding of our operational systems, their limitations, a deep familiarity with company-specific facts, and the ability to synthesize all this information cohesively.? In this environment, it’s essential to develop the ability to think critically, adapt rapidly, and apply knowledge creatively.? Complexity demands a heavy cognitive load and requires TIME.??

How can we lighten the load?

Cultivating Team Development and Engagement: A Strategic Priority

Understanding the Challenge:

Team development and engagement are critical components of a successful department. For our tax team, this encompasses several dimensions:

• Skill Enhancement: Keeping pace with evolving tax laws, technologies, and best practices.
• Motivation and Morale: Ensuring team members feel valued, challenged, and engaged.
• Career Growth Opportunities: Providing clear pathways for professional advancement and personal growth within the department.

Short bursts of encouragement and motivational pushes are not durable and strategies for professional development will gather dust on a shelf if volume and complexity have overwhelmed the time and energy needed to actually do this work.

The Impact of Poor Professional Development:

We intuitively know the risks to our careers, our co-workers, our department and company overall when a person lacks the knowledge and skills to operate in their role; and sometimes we know from experience the difficulties the lack of development creates.

How can we free up more time and attention to focus on career and team development?

Mastering Knowledge Transfer: Addressing Four Key Knowledge Domains

The Challenge of Knowledge Transfer:

Any and every department struggles with this matter; transferring knowledge effectively is crucial and complex. More than just passing on information; knowledge transfer ensures the continuity and application of four key knowledge domains:

• Domain Knowledge: The foundational technical knowledge that includes tax laws, regulations, and practices. It's essential for understanding the core responsibilities and functions of a tax professional.
• Company-Specific Knowledge: The in-depth understanding of the company's structure, operations, tax strategies, and unique business needs. It's crucial for applying domain knowledge in a way that aligns with the company's objectives and challenges.
• Operational or Implicit Knowledge: Gained through hands-on experience, this includes insights into the practical application of tax laws and company policies, problem-solving in unique scenarios, and understanding the nuances of daily operations.
• Soft Skills and Interpersonal Knowledge: Encompasses communication, negotiation, cultural understanding, and leadership skills. It's critical for effectively working within and leading diverse teams, and for successfully navigating the complexities of a multinational business environment.

Documentation may help with sharing domain and company knowledge, even some level of operational knowledge, but who has time to write this all down, and who is the next person who has time to read it all, ingest and internalize the knowledge with enough depth to apply it?

How can we improve the flow and transfer of knowledge between team members?

Looking Ahead: Unveiling Future Explorations

As I’ve outlined the four critical problem statements that shape the challenges and opportunities in our field, it's clear that each area not only demands our attention but also holds the potential for significant improvement and innovation. In upcoming articles, we will delve deeper into each of these problem areas, exploring practical and effective strategies to address them, with a particular focus on the role of AI.

This journey won't be purely theoretical. I plan to share real-world applications and custom GPT models that I've personally developed and experimented with in our tax department. These AI solutions are not just hypothetical ideas; they are tools that have been tested and proven in the field. By sharing these experiences, I hope to provide valuable insights into what works, what doesn’t, and how AI can be practically leveraged to tackle these enduring challenges.

Stay tuned for these in-depth discussions. I hope to inform but also to inspire – to demonstrate how embracing technology can lead to innovative solutions and enhanced professional growth and provide practical, actionable approaches. I look forward to sharing this journey with you and invite you to contribute your thoughts, experiences, and questions as we explore the dynamic intersection of AI and professional work in a multinational landscape.