The 2018 National Multistate Tax Symposium Take the …€¢No tax surprises and good tax...

The 2018 National Multistate Tax SymposiumTake the lead—Tax reform and fortifying state positions

February 7-9, 2018

Positioning with the C-Suite—Tips for Tax department professionalsJohn Mimlitz, Express Scripts, Inc.Marilyn A. Wethekam, Horwood Marcus & Berk Chtd.Jason Wyman, Deloitte Tax LLP

February 7-9, 2018

3Copyright © 2018 The National Multistate Tax Symposium: February 7-9, 2018

•C-Suite – What do they really want?

•Build your story - Visualization

•Open discussion

Agenda

4

C-Suite – What do they really want?


5C-Suite’s view of the Tax function?

Role of the Tax function in general

Financial value

•Cost center v. profit center

•Revenue generation

•Drive competitiveness through tax policy


6C-Suite’s view of the Tax function?

Management of risk and reward for the corporation

•Avoid schemes and strategies harmful to brand

•Never accept tax laws as they are – embrace policy opportunities.

Role in corporate strategic decisions


Business model and competitive issues

Business model changing and disruption, technology and digitization, regulatoryand macroeconomic demands impact the context for CFOs

Current CFOs face a changing business context

• New disruptive competitors and business models

• Convergence across industries and obliteration of traditional industry boundaries

• Products or services to products + services

• Competing on design and experiences

• Activism and capital allocation

• Managing the digital finance opportunities: Cloud, Robotic Process Automation, Blockchain, Cognitive and In-memory

• Accounting for complex product service combinations

• Developing the next generation of leaders across multiple/different locations, cultures and generations

• Talent: changing workforce demographics, inclusion, diversity, and the “gig economy”

Finance operations issues


Business model changing and disruption, technology and digitization, regulatoryand macroeconomic demands impact the context for CFOs

Current CFOs face a changing business context

Technology-driven issues

• Real-time connectivity driving transparency

• The Internet of Things drives new levels of asset efficiency and new models of competition

• Social, mobile, analytics, cognitive and cloud transforming competition

• Digital initiatives demand capital

• Fracturing of countries, markets and regulations – “globalization and its discontents”

• Increasing regulatory demands

• Tax reform?

• The “bathtub” recovery, new “normal” and contestable markets

• Resource constraints – water, energy, minerals

• Aging populations

Regulatory, demographic and macroeconomic issues


This changing business context drives increased expectations of CFOs as a catalyst and strategy partner to the CEO

Provide financial leadership in determining strategic business direction, M&A, financing, capital market and longer-term strategies vital to the future performance of the company

Catalyze behaviors and change across the organization to execute strategic and financial objectives

Protect and preserve the critical assets of the organization and accurately report on financial position and operations to internal and external stakeholders

Catalyst Strategist

Steward Operator

CFO

Threshold performance

Balance capabilities, talent, costs, and service levels to fulfill the finance organization’s core responsibilities efficiently


Traditional finance and technical skills are necessary, but change management, influence and strategy skills are more vital going forward

As C-Suite demands grow we observe three different CFO archetypes

Each archetype is likely to have a different career journey, different levels of tax expertise, different relationships with the board and audit committee, and different needs of tax from a communications perspective.

Most CFOs want the following from Tax

• No tax surprises and good tax stewardshipand operations

• Foresight into what is likely to happen and plans to mitigate risk

• Value from effective tax planning

• Support for their strategist catalyst rolesas a CFO

• A positive brand ambassador of financeto the business

Traditional CFO

focused on finance

The CFSOThe chief

financial and strategy officer

The CFOOThe chief

financial and operating officer focused broader (IT, real estate Procurement,

etc.)


Specific areas align to the relationship and opportunitiesAligning the role of the CFO with the role of the board

Governance frameworkThe four faces of the CFO

Strategist Performance, strategy, governance

Catalyst Performance, strategy, talent

Steward Governance, integrity, risk

Operator Performance, talent


The audit committee: The CFO is the primary management contact

Specific areasof oversight

• Internal controls and financial reporting

• Risk oversight and understanding the business

• External/Internal audit and management

• Ethics and compliance

A few emergingareas of emphasis

• IT strategy, riskand security

• Global tax planning, treasury and cash management

• Overseeing finance talent/succession planning

• Emerging markets, including FCPA implications

• Delegation of authority refresh

• Effective utilizationof internal audit

• COSO framework

• Revenue recognition standard

• Lease accounting standard

Audit committeeeffectiveness

• Agenda settingand prioritization

• Executive sessions

• Information management

• Other committee coordination

• Meeting typeand frequency

• Managing the sizeof the gallery

• Performance evaluations and self-assessments

Risk management: Who is responsible for risk oversight and how do boards make sure nothing gets missed? Reputation/crisis management is an issue of increased relevance

Cyber and technology: In addition to cyber security and risk, aspects of broader technology come up often. Potentially, the existence of legacy systems have increased risk for error, post-merger integration of systems, etc.

General effectiveness: How do audit committees cover everything required and allow time for deeper discussions on risk, strategic topics, the future? How do they also making sure that they have people with the right skills to address the issues coming at them? How do they ensure the materials provided to the committee effectively and efficiently convey the information needed to make decisions?

Audit committee top issues


A demand for more transparency and an increased focus on reputation and risk drives the increased relevance of tax executives in the boardroom

Be prepared to answer the following questions when with the audit committee

•How is management keeping current on global tax issues and the potential for changesin tax policy?

•Does the company have adequate resources (funding and skills) to address responsibilities and opportunities related to the changing tax policy and legislative landscape?

•How can legislative changes and tax policy affect the company’s effective tax rate, tax reserves and financial reporting?

•Are the company’s tax disclosures in its financial reporting accurate, understandableand complete?

•What are the company’s most significant tax risks related to process and technical issues?

•What assumptions are embedded in transfer pricing, UTP, and establishing reserves?

Source: “Taxes In The Boardroom,” Thomson Reuters, July 2012


Strong communications are vital for the influence essential to execute the catalystand strategist roles

Some observations on communications

1

2

3

Clear and concise communications

Strong communications skills requires listening

Effective communications demand you adjust and adapt to the listener – know thyself and the other

Influence without authority is predicated on likeability, trades,and capacity to coalesce the power to persuade

Functional skills are the table stakes –getting to the next level demands change skills

The C-suite and boards expect

15

Build your story - beginning a visualization


Data visualization is the presentation of data in a pictorial or graphical format. It enables decision makers to see analytics presented visually, so they can grasp difficult concepts or identify new patterns.

Definition from: http://www.sas.com/en_us/insights/big-data/data-visualization.html


2Know Your Data (Data Science)

Review information, collect data, correct errors, and prepare for analysis

1Know Your Audience (Design Thinking)

What are their challenges? What motivates them? What do they need?

4Build It Out (Visualization Tools)

Execute your plan, leverage the right technology, and make a prototype

3Find Your Message (Data Storytelling)

Understand the purpose, find the story, and sketch it out and wireframe it

5Make It Effective (Design Principles)

Engage your audience, draw attention, and show your point of view clearly

Data Visualization: How do we do it correctly?

Creating compelling data visualizations takes five steps









Understand the purpose, find the story, and sketch it out and wireframe it



Step 3: Find your message


19

Open Discussion


Contact information

Jason Wyman

Deloitte Tax LLP

[email protected]

John Mimlitz

Express Scripts, Inc.

[email protected]

Marilyn A. Wethekam

Horwood Marcus & Berk Chtd.

[email protected]

mailto:[email protected]



21

Visualization examples - appendix

22Copyright © 2018 The National Multistate Tax Symposium: February 7-9, 2018 Copyright © 2018 Deloitte Development LLC. All rights reserved.

Simply visualizing data is not always enough to show the true significance to the audience. While determining the proper visualization, consider providing the data in a context to emphasize a point.

Know your message

Are you displaying information in a simple and intuitive way?

What is the theme or focus?

Are you trying to make a point or persuade your audience?

Is the objective and your stance on the topic presented clearly?

Key visualization questions


Sketches aim to visualize ideas and concepts that will be shared with others to obtain feedback before investing time and resources in building

Tools: Whiteboard, Paper, Pens, and Post-it Notes

Wireframes are page-level diagrams designed to communicate ideas and content for the visualization, website, infographic, or app

Tools: Microsoft PowerPoint, Axure, Illustrator,and Balsamiq

WireframingSketching

http://fastvue.co/tmgreporter/blog/how-we-designed-the-fastvue-dashboard


Resist tools initially—though comforting to jump into a known tool, sketching first could impact your solution and change the tool you use

Find your message: Drafting

Capturing high-level ideas without being constrained by tools











Understand the purpose, find the story, and sketch it out and wireframe ith



Step 4: Build it out










Understand the purpose, find the story, and sketch it out and wireframe ith



Step 5: Make it effective



Your data is only as good as your

ability to communicate it.

(and design can help you do that.)


Executive summary

TaxPOV


Income summary

TaxPOV


This presentation contains general information only and the respective speakers and their firms are not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. The respective speakers and their firms shall not be responsible for any loss sustained by any person who relies on this presentation.

About DeloitteDeloitte refers to Deloitte Tax LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about to learn more about our legal structure. Certain services may not be available to attest clients under the rules and regulations of public accounting.

Copyright © 2018 Deloitte Development LLC. All rights reserved.

http://www.deloitte.com/us/about

The 2018 National Multistate Tax Symposium Take the …€¢No tax surprises and good tax...

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