CMI key terms
CMI · Get comfortable with the vocabulary.
- Span of control
- Related: Hierarchy of authority, Delegation
The number of people who report directly to one manager. A wide span means many direct reports and less individual attention; a narrow span allows closer supervision but adds management layers.
- Delegation
- Related: Accountability, Empowerment
Assigning a task, decision or responsibility to someone else while keeping accountability for the outcome. Effective delegation matches authority to responsibility and agrees clear standards and deadlines.
- Accountability
- Related: Delegation, Responsibility
Being answerable for results and for how they were achieved. It cannot be delegated away entirely; a manager who assigns work still owns the outcome with senior stakeholders.
- SMART objectives
- Related: Key performance indicator, Performance review
A way of writing goals that are Specific, Measurable, Achievable, Relevant and Time-bound. The format reduces ambiguity so performance can be tracked and reviewed objectively.
- Situational leadership
- Related: Coaching, Empowerment
An approach where a leader adjusts the amount of direction and support given according to a team member's competence and commitment for a specific task, rather than using one fixed style.
- Coaching
- Related: Mentoring, Feedback
A structured conversation that uses questioning and listening to help someone find their own solutions and develop capability, rather than telling them what to do.
- Constructive feedback
- Related: Performance review, Coaching
Information about performance given promptly, specifically and behaviourally, focused on observable actions and their impact. It should be two-way and aimed at improvement, not blame.
- Emotional intelligence
- Related: Active listening, Conflict resolution
The ability to recognise, understand and regulate one's own emotions and to read and respond to the emotions of others. It underpins rapport, conflict handling and influence.
- Active listening
- Related: Emotional intelligence, Feedback
Fully concentrating on a speaker, summarising and reflecting back what is heard, and asking clarifying questions instead of rehearsing a reply. It builds trust and reduces misunderstanding.
- Stakeholder mapping
- Related: Communication plan, Sponsor
Identifying everyone affected by or able to influence a piece of work, then assessing their interest and power to decide how to engage each group. It guides communication priorities.
- Sponsor
- Related: Stakeholder mapping, Governance
A senior person who champions a project or change, secures resources and removes organisational blockers. The sponsor provides authority that the day-to-day lead may not hold.
- Governance
- Related: Accountability, Risk register
The decision rights, reporting lines, meetings and controls that define how an activity is directed and held to account. Good governance makes who-decides-what explicit.
- Risk register
- Related: Mitigation, Governance
A live log of identified risks, each with an owner, an assessed likelihood and impact, and agreed mitigation. It is reviewed regularly so that threats are managed rather than discovered.
- Mitigation
- Related: Risk register, Business continuity
Action taken to reduce the likelihood or impact of a risk before it occurs, such as contingency planning, insurance, testing or adding a second supplier.
- Business case
- Related: Return on investment, Cost-benefit analysis
A structured justification for investment that sets out the problem, options considered, expected costs, benefits, risks and recommended option, so decision-makers can compare value for money.
- Return on investment
- Related: Business case, Cost-benefit analysis
A ratio comparing the financial gain from an activity with its cost, usually expressed as a percentage. It helps compare competing uses of limited funds.
- Cost-benefit analysis
- Related: Business case, Return on investment
Systematically comparing the total costs of an option against its total benefits, including non-financial ones where possible, to decide whether and how to proceed.
- Budget variance
- Related: Forecast, Management accounts
The difference between planned and actual income or expenditure. Analysts label it favourable or adverse and investigate the causes so corrective action can be taken.
- Management accounts
- Related: Budget variance, Forecast
Internal financial reports produced regularly for managers, covering actual performance against budget with commentary. They are less formal than statutory accounts and support operational decisions.
- Forecast
- Related: Budget variance, Scenario planning
An estimate of future financial or operational results based on current data and stated assumptions. Forecasts are updated as circumstances change and support planning and resource decisions.
- SWOT analysis
- Related: PESTLE analysis, Strategic objectives
A structured review of an organisation's internal Strengths and Weaknesses and external Opportunities and Threats. It informs strategy by matching capabilities to the environment.
- PESTLE analysis
- Related: SWOT analysis, Scenario planning
A scan of external Political, Economic, Social, Technological, Legal and Environmental factors that may affect an organisation, used to anticipate change and shape strategy.
- Strategic objectives
- Related: SMART objectives, Key performance indicator
The few high-level outcomes an organisation must achieve over the medium term to fulfil its mission. They cascade into team goals and individual targets.
- Key performance indicator
- Related: SMART objectives, Balanced scorecard
A measure chosen because it signals progress towards an important objective. Good indicators are few, owned, comparable over time and linked to decisions.
- Balanced scorecard
- Related: Key performance indicator, Strategic objectives
A performance framework that tracks measures across financial, customer, internal process and learning perspectives so that short-term financial results do not crowd out other priorities.
- Change curve
- Related: Stakeholder mapping, Resistance to change
A model describing typical emotional responses to change, such as shock, resistance, exploration and acceptance. It helps leaders communicate and support people at each stage.
- Resistance to change
- Related: Change curve, Communication plan
Behaviour that slows or blocks a change initiative, often rooted in fear of loss, unclear benefits or past experience. It is best addressed through involvement and honest communication.
- Communication plan
- Related: Stakeholder mapping, Resistance to change
A schedule setting out what will be communicated about a project or change, to whom, by which channel, when and by whom, plus how feedback will be captured.
- Empowerment
- Related: Delegation, Situational leadership
Giving people the authority, information and confidence to make decisions within agreed boundaries. It speeds up response and increases engagement but requires clear limits.
- Mentoring
- Related: Coaching, Continuing professional development
A longer-term developmental relationship in which a more experienced person shares insight, perspective and networks to support another person's career and capability growth.
- Continuing professional development
- Related: Mentoring, Reflective practice
Ongoing, planned learning that maintains and extends professional competence, recorded against a framework of knowledge, skills and behaviours and reviewed regularly.
- Reflective practice
- Related: Continuing professional development, Feedback
Deliberately reviewing what happened, why and what to do differently, using evidence and feedback. It turns experience into learning rather than repetition.
- Ethical decision-making
- Related: Code of conduct, Conflict of interest
Choosing a course of action by weighing consequences, duties and values alongside commercial factors, and being able to justify the choice transparently to affected parties.
- Conflict of interest
- Related: Code of conduct, Ethical decision-making
A situation where a person's private interests could improperly influence their professional judgement. It should be declared and managed, often by removing the person from the decision.
- Code of conduct
- Related: Ethical decision-making, Conflict of interest
A published set of expected behaviours and standards that members of an organisation or profession must follow, with consequences for breaches.
- Triple bottom line
- Related: Sustainability, ESG
Judging performance on three dimensions: profit, people and planet. It pushes managers to account for social and environmental outcomes alongside financial results.
- ESG
- Related: Triple bottom line, Sustainability
Environmental, Social and Governance factors used to assess an organisation's sustainability and ethical impact. Investors and regulators increasingly require disclosure against them.
- Carbon footprint
- Related: Net zero, Sustainability
The total greenhouse gas emissions caused directly and indirectly by an organisation, product or activity, usually expressed in tonnes of carbon dioxide equivalent.
- Net zero
- Related: Carbon footprint, Sustainability
A state where the greenhouse gases released into the atmosphere are balanced by those removed, achieved mainly through deep emission cuts rather than offsetting alone.
- Sustainability
- Related: Triple bottom line, ESG
Operating so that environmental, social and economic needs are met without compromising the ability of future generations to meet theirs, balancing long-term resilience with short-term delivery.
- Scenario planning
- Related: PESTLE analysis, Forecast
Developing several plausible future scenarios and testing strategy against each, to expose assumptions and build flexibility for uncertainty.
- Business continuity
- Related: Mitigation, Risk register
Planning and arrangements that let an organisation keep delivering critical services during and after disruption, covering people, systems, premises and suppliers.
- Performance review
- Related: SMART objectives, Feedback
A scheduled, evidence-based conversation between manager and team member about achievements, standards and development needs, feeding objectives for the next period.
- Conflict resolution
- Related: Active listening, Emotional intelligence
Working with disputing parties to understand interests, reduce tension and agree a workable way forward, using mediation or structured conversation before positions harden.