CMI (Other exams) key terms

The degree to which managers prioritise a stakeholder's claim, based on that party's power to influence the organisation, the legitimacy of its claim, and the urgency of its demand. Attributes combine rather than act alone.

A technique that plots interested parties by attributes such as influence and interest, so leaders can decide whom to inform, consult, involve or merely monitor during a decision or change.

The generalised perception that an organisation's actions are proper, desirable and appropriate within a shared system of norms, values and expectations, earned rather than simply asserted.

The ongoing acceptance of a firm's activities by local communities, employees and wider society, which can be withdrawn informally through opposition or reputational damage even when all legal requirements are met.

A management approach in which the organisation voluntarily accounts for social, ethical and environmental impacts of its decisions alongside financial returns, beyond the minimum required by law.

A performance framework that evaluates results across three dimensions: economic prosperity, environmental quality and social equity, rather than profit alone.

A strategic performance system that translates vision into objectives and measures across four perspectives: financial, customer, internal process, and learning and growth, linking long-term direction to day-to-day activity.

A small set of measures chosen because they signal how well a critical objective is being achieved, enabling comparison with a target or benchmark over time.

A goal stated so that it is specific, measurable, achievable, relevant and time-bound, which makes later review of progress and accountability far easier.

A structured, periodic conversation in which a manager and team member examine results against agreed objectives, discuss development needs and set priorities for the next period.

Information about observed behaviour and its effect, given promptly and specifically so the recipient can act on it, focused on work rather than on the person's character.

A development approach in which a manager asks structured questions and listens, helping a colleague reach their own insight and plan rather than supplying the answer directly.

Assigning a task, together with the authority and resources needed to complete it, while retaining accountability for the outcome; a deliberate tool for developing capability, not merely offloading work.

Giving people genuine discretion over how they do their work, within clear boundaries, so that decisions are made closer to the customer and staff feel responsible for results.

The view that no single leadership style fits all cases; the manager adjusts the balance of direction and support given according to each follower's competence and commitment for a specific task.

The ability to recognise and regulate one's own emotions and to perceive, understand and influence the emotions of others, supporting better judgement and relationships at work.

The unwritten set of expectations between an employee and the organisation about mutual contribution and reward; breach of it damages trust and engagement even where no formal contract is broken.

The extent to which staff commit discretionary effort to their work and feel invested in organisational success, shaped by purpose, autonomy, recognition and fair treatment.

The systematic process of attracting, developing, deploying and retaining people whose capability matters most to future performance, often using structured review and succession planning.

Identifying and preparing internal candidates for critical roles ahead of need, reducing disruption and vacancy risk when a post-holder leaves or is promoted.

A documented set of development actions, with owners and dates, that closes an identified gap between a person's current capability and the requirements of their role or career path.

A concise description of the future state an organisation aspires to create, intended to give direction and meaning to decisions made across the business.

A statement of what the organisation does, for whom, and why it matters, defining its purpose and scope and distinguishing it from competitors.

An ambitious long-term goal that stretches the organisation beyond its current resources, giving coherence to effort and investment over several planning cycles.

The gradual divergence between an organisation's strategy and a changing environment, often invisible year to year because plans are updated incrementally rather than rethought.

A structured scan of political, economic, social, technological, legal and environmental factors that may affect the organisation, used to anticipate external change.

A summary of internal strengths and weaknesses and external opportunities and threats, useful for structuring discussion about strategic position rather than as a stand-alone answer.

A live record of identified risks, each assessed for likelihood and impact, with an owner and agreed mitigation actions, reviewed at planned intervals.

A document justifying an investment by setting out the problem, options, costs, expected benefits, risks and a recommendation, used to support a go or no-go decision.

The time taken for cumulative cash inflows from an investment to equal the initial outlay; simple to explain, but it ignores returns after the payback point and the time value of money.

The sum of an investment's future cash flows discounted to today's value at a chosen rate, less the initial cost; a positive result indicates value creation.

A method that compares the total costs and total benefits of options, expressing them in comparable terms so decision-makers can judge whether an intervention is worthwhile.

Comparing actual financial results with budgeted figures, then investigating the size and cause of differences so that corrective action or forecast revision can follow.

A financial plan for a defined period, allocating expected income and authorised expenditure to activities, and providing the baseline against which actual performance is monitored.

A projection of money expected to enter and leave the business over coming weeks or months, used to anticipate shortfalls; profit and cash timing are not the same thing.

A model describing typical emotional responses to significant change, such as shock, resistance, exploration and acceptance, reminding leaders that reactions vary in timing and intensity.

Behaviour that slows or blocks a change initiative, often signalling genuine concerns about loss of status, competence or security rather than simple stubbornness.

A sequence for leading large-scale change: create urgency, build a guiding coalition, form a vision, communicate it, remove obstacles, secure short-term wins, sustain momentum and embed the change in culture.

An ongoing effort to make small, incremental enhancements to processes and products by involving the people who do the work, rather than relying only on periodic large projects.

Drawing the sequence of steps, decisions and handoffs in a workflow so that delays, duplication and unclear ownership become visible and can be redesigned.

The longest sequence of dependent tasks in a project schedule; any delay on it delays the whole project, so it receives the closest monitoring.

A bar chart showing tasks against a timeline, including duration, sequence and sometimes resource allocation, used for planning and tracking project progress.

Uncontrolled expansion of project requirements without corresponding adjustment to time, cost or resources, a common cause of overruns and eroded benefits.

A structured review capturing what worked and what did not on a project or initiative, recorded so future teams can reuse the insight rather than repeat the mistake.

The system of rules, structures and accountabilities by which an organisation is directed and controlled, including board oversight, delegation limits and reporting lines.

A situation where a person's private interest, financial or otherwise, could improperly influence decisions made in their professional role; it should be declared and managed, not merely avoided.

Raising a concern about wrongdoing, risk or malpractice, typically internally through a protected channel, so that it can be investigated without retaliation against the person reporting.

Choosing a course of action by weighing consequences, duties and fairness, and by testing whether the decision could be openly justified to those affected.

Deliberately allocating attention and effort across competing demands by prioritising important work, planning blocks of focus and controlling interruptions.

A grid that sorts tasks by urgency and importance, helping a manager distinguish work that must be done now from work that is merely loud.

A schedule setting out what will be communicated to which audiences, by whom, through which channel and when, so that messages are consistent and timely.

A documented commitment between a provider and a customer specifying the standard of service, response times and remedies if those standards are missed.

Dividing a customer base into groups with similar needs or value so that offers, service levels and communication can be tailored rather than applied uniformly.

The total profit a customer is expected to generate over the whole relationship, used to justify acquisition and retention spending that a single transaction would not support.