As technology reshapes the tax landscape, professionals must manage the fatigue that comes with change management and transformation by utilizing thoughtful strategies to keep teams engaged and productive
SEATTLE — To keep up with regulatory changes, today’s tax professionals are challenged to not only embrace innovative and advanced technology, but to continuously fine tune the tech tools they already have while devising and executing a plan for acquiring more.
Corporate tax departments are undergoing digital transformations at what some might say is warp speed. In some cases, it may feel to in-house tax teams like it’s a never-ending journey, especially over the last few years with the introduction of generative AI (GenAI). Indeed, GenAI has ushered in an age of unprecedented opportunities that promises more efficiency and insight.
At the same time, however, more fully embracing digital transformation has brought with it a level of disruption that at time can be lengthy, unclear, or constantly changing can have an unintended side effect on corporate tax professionals: transformation fatigue.
At a recent tax technology seminar sponsored by Tax Executives Institute (TEI), leading experts weighed in on the importance of properly managing this level of change as a central component to any digital transformation. However, team leaders must be watchful for transformation fatigue among their team members, panelists cautioned. Transformation fatigue can be described as situations in which teams become overwhelmed or disengaged due to the sheer volume and frequency of change.
In addition to the mental and sometimes physical toll such continuous change can have on employees, this fatigue can stall even the most promising tax technology projects. As panelists pointed out, tax department leaders need to be aware of this disruptive challenge and should strategically plan to mitigate the damage or stop it from occurring all together.
The cost of continuous change
Transformation fatigue is particularly acute in corporate tax functions in which high-stakes deliverables, tight deadlines, and regulatory scrutiny are the norm. Layering change initiatives on top of already demanding or overwhelming responsibilities can erode morale and hinder adoption. Symptoms of this fatigue might include resistance to new systems, decreased productivity, or even employee burnout.
It’s no surprise that technology’s rapid evolution means there’s often little time to fully adopt one tool before the next is introduced. For example, a team might still be mastering a new tax data platform when leadership rolls out an AI-driven analytics tool. Without proper change management, this can feel less like innovation and more like disruption.
The very nature of tax work requires professionals to keep pace with shifting regulations while rapidly interpreting what they mean for their organization’s business and industry. In fact, many tax professionals said they often feel they don’t have enough time to get their work done, according to the Thomson Reuters Institute’s State of the Corporate Tax Department report. Thus, with their bandwidth already stretched, tax department leaders may see continuous tech rollouts resulting in slower adoption and inadequate use. Rapid and constant change, especially without adequate support, can feel unsettling.
Intentional and adaptive leadership is key
So how can tax department leaders help their teams stay energized and engaged through a phase of continual transformation? It starts with taking steps that show leaders are being both intentional and adaptive, such as:
Communicate the “Why” behind every change — Team members are more likely to embrace new tools and processes when they understand the purpose. Is a new platform intended to reduce manual effort? Improve audit readiness? Support global compliance? Leaders must articulate these goals clearly — and repeat them often.
Celebrate small wins — Change is a journey, and morale depends on recognizing progress along the way. Did the new automation process reduce month-end close time by 10%? Celebrate that. Acknowledging incremental improvements with the team reinforces momentum and encourages further adoption.
Provide ample training and support — Training cannot be an after-thought. Whether through formal sessions, peer mentoring, or just-in-time learning, corporate tax teams need hands-on support to get comfortable with new tools. Ongoing access to help — via IT, vendors, or internal champions — ensures that teams don’t feel stranded.
Set realistic expectations — Not every tech rollout will yield instant ROI. Not every tool will be perfect on day one. Leaders must set a realistic timeline for value realization and avoid overpromising. Teams that are given space to learn and adapt will deliver better results over time.
Embrace iteration — A mindset of continuous improvement is crucial. Encourage feedback loops in which team members can share what’s working and what’s not. Adjusting course based on user input not only improves outcomes, but it also signals to the team that they are being heard — and people are more willing to participate if they feel they are heard.
Culture & technology: Building a department that embraces change
Managing transformation fatigue isn’t just about surviving each new tech tool rollout — it’s about creating and maintaining a work environment that sees change as an opportunity, not a threat to the way work is done nor a disruption to current operations.
Start by integrating change readiness into your team’s DNA. This could mean appointing change champions within the tax function who model adaptability and enthusiasm. It could involve regular check-ins to discuss how any new technology tools and solutions are affecting workloads and workflows. It may also mean creating structured space for innovation, such as monthly tech sprints or pilot projects that explore emerging solutions in a low-risk environment.
Creating trust is also important. Employees are more likely to lean into change when they believe leadership has their best interests in mind. Transparent communication, visible support from leadership, and follow-through on commitments go a long way in fostering trust.
Remind team members that technology is a means to an end, and that gaining efficiencies through continuous use of new tools is best for the overall organization, the tax department, and the individuals who make up the team. This means aligning tech investments with the organization’s own strategic goals, empowering teams to work smarter, and using data-driven insights to drive value across the enterprise.
When transformation is managed well, corporate tax teams can spend less time on manual processes and more time on strategic analysis. They can identify trends, mitigate risks, and provide the insights that senior leadership craves. This only happens, however, when change fatigue is addressed head-on and team members’ well-being is prioritized.
As the tax landscape continues to evolve, transformation is inevitable — fatigue, however, doesn’t have to be. With the right leadership approach, tax professionals will not just endure change but instead embrace and lean into it. By investing in people as much as technology, celebrating progress, and maintaining a clear focus on purpose, corporate tax leaders can transform fatigue into fuel for innovation.
You can download a full copy of the Thomson Reuters Institute’s most recent State of the Corporate Tax Department survey report here
