🎧 Episode Description

In this episode of the Tax Pulse Podcast, Tony Santiago and Jake Tuchmann sit down with Emily Whittenburg, Vice President and Chief Tax Officer at Nike Incorporated, to discuss the evolving landscape of managing outside service providers in the tax function. Emily shares her extensive experience and insights on navigating the complexities of co-sourcing, outsourcing, and managed service models. 

The conversation delves into the challenges tax leaders face in evaluating these services, the critical importance of thorough due diligence, and strategies for effective negotiation. Emily emphasizes the need for tax leaders to clearly define their needs, involve internal stakeholders, and advocate for contractual terms that drive year-over-year efficiency and protect the company's interests, moving beyond traditional cost-saving approaches to truly strategic partnerships.

🔑 Key Discussion Highlights 

•Evolution of Service Models: Tracing the shift from basic compliance outsourcing to comprehensive managed services and co-sourcing arrangements. 

•Defining Internal Needs: The necessity for tax leaders to clearly articulate their specific requirements and objectives before engaging service providers. 

•Internal Alignment and Buy-in: Strategies for involving key internal leadership and ensuring team buy-in for new operating models with external partners. 

•Strategic Negotiation: Leveraging legal and procurement teams, establishing guiding principles, and maintaining a professional distance during contract negotiations. 

•Driving Contractual Efficiency: Implementing terms that require service providers to demonstrate year-over-year efficiency gains without sacrificing scope or quality. 

•Mindset Shift for Tax Leaders: Encouraging tax leaders to take a proactive, driver-seat approach in managing external relationships. 

📌 Top Quotes 

•Bread and Butter: "When these came onto the scene, these arrangements, everyone talked about them as outsourcing. Let's just get rid of the stuff that seems mundane and routine and repeatable so that your team can get focused on the more strategic." - Emily Whittenburg 

•Worth Weight in Gold: "That is worth its weight in gold to take the time up front. This advice is grateful and you guys are listening. Ladies and gentlemen, this is where you put your time in." - Tony Santiago 

•Guiding Principles: "I sat down, and I just took out a pen and paper and wrote down, what are the guiding principles that I want to achieve here? And I had a list of those. And I walked through those with my legal team and my procurement team and said, hey, these are the kind of the boundaries on which we should approach this so that we get out of this what we need." - Emily Whittenburg 

•Find the Quotes: "If you're going to have done these returns for me for five years, you should get faster and better every year. And so we actually came up with a way to bend the curve and require an efficiency indicator now year over year. So their fees actually get reduced year over year..." - Emily Whittenburg 

✅ Key Takeaways 

•Proactive Management: Tax leaders must take a proactive stance in defining their needs and managing relationships with outside service providers, rather than passively accepting vendor offerings. 

•Thorough Due Diligence: Beyond contractual terms, it is crucial to conduct in-depth due diligence on the actual personnel and operational models of service providers. 

•Internal Collaboration: Engaging legal, procurement, and internal tax leadership teams is vital for successful negotiation and implementation of managed service arrangements. 

•Contractual Innovation: Negotiate contracts that include provisions for year-over-year efficiency gains from service providers, ensuring continuous improvement and value. 

•Relationship over Transaction: While contracts set parameters, fostering strong working relationships with service providers is key to long-term success. 

👤 About the Guest Speaker 

Emily Whittenburg is the Vice President and Chief Tax Officer at Nike Incorporated. With 28 years of experience in the tax business, Emily has a diverse background that includes public accounting firms (Arthur Andersen, EY), a law firm specializing in M&A and corporate real estate, and 18 years in-house at companies like Waste Management, Shell Oil, and, for the last six years, Nike. Her expertise lies in effectively managing external service providers and driving strategic value within tax functions. 

▶️ Next Steps for Listeners 

•Assess Your Needs: Clearly define what your tax department needs from external service providers before engaging in discussions. 

•Involve Your Team: Bring in key internal stakeholders, including legal and procurement, to collaborate on service provider evaluations and negotiations. 

•Question Everything: Don't hesitate to ask detailed questions about personnel, processes, and expected efficiencies from potential partners. 

•Negotiate for Value: Advocate for contractual terms that ensure continuous improvement and cost-effectiveness from your service providers. 

•Build Relationships: Focus on fostering strong, collaborative relationships with your chosen external partners. 

📬 Connect With Us 

•Follow us on LinkedIn or Visit TaxTalent.com 

•Connect with Tony Santiago and Emily Whittenburg on LinkedIn.