Business process improvement and the tax department

Abstract

Purpose

This paper aims to demonstrate that operations management techniques and operations strategy can be successfully implemented to create more efficient and effective tax department functionality. The paper seeks to bridge two areas that can have a significant impact on the competitive success of any type of enterprise – not just in the short term, but on an enduring basis.

Design/methodology/approach

The driver for this article came from client engagements and discussions with CEOs/CFOs, vice presidents of tax, and directors of tax and operations that the author has served on engagements over recent years.

Findings

The tax department should benefit from effective implementation of management consulting and operational strategy consulting. There is an opportunity to have a huge impact on the tax function, allowing tax to play a more central role within the overall finance function.

Practical implications

Firms have found that implementation of some or all of these ideas into their tax function and tax processes has afforded them a way to more effectively and efficiently manage their operations and set themselves apart from other functions within an enterprise.

Originality/value

The paper is very creative in demonstrating a valuable connection between operations strategy, operations management, and the tax function. The author shows how tools and process improvements can be effectively applied to tax just as they are to other functions of an enterprise.

Citation

Holtzman, Y. (2011), "Business process improvement and the tax department", Journal of Management Development, Vol. 30 No. 1, pp. 49-60. https://doi.org/10.1108/02621711111098361