"We could move faster with a smaller team by being closer to the business because we could be much more ruthless about what really needed to be done and what was really valuable."
This counterintuitive insight from Steve Buckingham, former VP of Data at TaxFix, challenges the common belief that bigger teams equal better results.
TaxFix, founded in 2016, revolutionized tax filing in Germany by creating a mobile-first solution that simplifies the complex process of tax returns.
The company has expanded across multiple European markets and raised over €300 million in funding, reaching unicorn status in its Series D round.
Steve Buckingham, a veteran data leader with over 15 years of experience, recently concluded his role as VP of Data at TaxFix and is transitioning to SumUp as Head of Analytics.
His career spans various industries, including media and technology, where he's consistently focused on driving business impact through data.
Initial State: Post-Series D Scaling Phase
When Steve joined TaxFix in 2022, the company was:
→ Fresh off its Series D round and unicorn status
→ Growing rapidly with approximately 500 employees
→ Operating a centralized data team of 35 people (8% of total workforce)
→ Structured with traditional teams: platform, analytics engineering, and analytics
Early Data Investment
TaxFix’s data journey began around 2018, coinciding with their Series A funding and product-market fit:
- Started with heavy investment in marketing and product analytics
- Built data foundation during growth phase following Series A
- Scaled from initial data hires to 35 team members in 3-4 years
Evolution of the Data Organization
Structure when Steve joined (2022):
- Centralized model
- Platform team handling governance, security, and privacy
- Central analytics engineering team
- Product analytics teams split between German and new markets
Current Structure:
→ More decentralized approach
→ Small core platform team (4-5 people) focused on automation
→ Analytics engineering embedded within business functions
→ Closer alignment with business units
→ Platform services moving toward wider engineering team
→ Analytics becoming more specialized and business-focused
Highest Business Impact Activities
The most significant achievements during Steve's tenure at TaxFix:
- Reorganization of the centralized data team towards a hub-and-spoke model
- Building a strong experimentation culture
- Successfully managing TaxFix’s app transformation from client-side to server-side:
- Started with 1% user testing
- Gradually increased traffic
- Enabled future AI integration capabilities
- Improved overall flexibility and scalability
Notable F*ck-ups
Steve identified two things he would change if he were to go through the same two years again:
- Could have implemented organizational changes sooner rather than waiting for external pressure
- Initially over-focused on compliance and governance in preparation for potential IPO, which distracted from fundamental business growth
Key Advice for Data Leaders
Steve's experience yields several crucial insights:
Core Principles:
→ Follow the money - understand where the business makes and loses money
→ Get as close to the business as possible
→ Focus on business impact over technical excellence
→ Don't wait for perfect conditions to make necessary changes
When leading data teams:
- Prioritize business understanding over technical sophistication
- Be willing to make radical changes when needed
- Balance governance needs with growth requirements
- Ensure data teams are positioned as business drivers, not just technical support
Steve's journey offers valuable lessons for data leaders navigating a transition from a centralized team towards a hub-and-spoke model.
Watch the whole video above ☝️
