In this episode of Tax Leaders Unplugged, host Stevi Frooninckx speaks with Katharina Herzog, Senior Vice President of Group Finance & Tax at Hugo Boss. Katharina shares insights into her role overseeing strategy for the finance and tax divisions and leading a team of over 80 professionals. She discusses her vision for closer collaboration between tax and finance, and the importance of senior leadership understanding how these functions drive revenue. In today’s conversation, we talk about the following:
Why Hugo Boss integrates tax and finance teams
The long-term costs of outsourcing tax expertise
Building a compelling business case that resonates with CFOs and shareholders
Key quantitative and qualitative KPIs
Tips on "speaking the language" of both the core business and tax functions
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Where to find Katharina Herzog:
• LinkedIn: https://www.linkedin.com/in/katharina-herzog-b81950ba/
Where To Find Stevi Frooninckx:
• LinkedIn: https://www.linkedin.com/in/stevifrooninckx
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In this episode, we cover:
(01:14) Welcome Katharina
(01:54) Katharina’s hobbies and interests outside tax
(02:54) How Katharina made the switch from finance to tax
(03:43) Katharina’s tax strengths and weaknesses and how she filled in her knowledge gaps
(06:25) Why Katharina is equally passionate about tax and finance
(07:24) The pros and cons of combining tax with finance
(09:33) Why tax and finance team members are seated together
(10:54) How rotations work at Hugo Boss
(11:25) The pros and cons of outsourcing—and what Katharina would never outsource
(14:26) An example of technology that aids in compliance
(15:05) Building a convincing business case by showcasing the value in tax
(19:55) How Katharina shares monthly wins with her CFO
(21:55) The challenges in promoting tax and finance
(24:00) Why tax teams tend to be smaller than finance teams
(26:53) The value of tax at Hugo Boss
(27:28) First steps for building a successful business case
(30:01) More in-depth explanations for illustrating the business value of tax
(32:32) An ambitious goal at Hugo Boss
(35:30) Qualitative business drivers
(37:30) Some general ‘dos and don’ts’ of tax
(39:14) The core in-house tax responsibilities and how local taxes are managed
(44:47) Why you should be multilingual—speaking the language of both core business and tax
(45:40) Katharina’s parting advice
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Referenced:
• Hugo Boss: https://www.hugoboss.com/us/home
• T-Systems: https://www.t-systems.com
• KPMG: https://kpmg.com/
• Net promoter score: https://en.wikipedia.org/wiki/Net_promoter_score
• ESG (environmental, social, and governance): https://www.techtarget.com/whatis/definition/environmental-social-and-governance-ESG