API – Application Programming Interface (an interface created on database or computer system to accept requests from other computers and third parties)
ASP – Application Service Provider (a company that offers services to its customers via a network)
B2B – Business to Business (companies that sell to other companies, like Oracle)
B2C – Business to Consumer (companies that sell to individuals, like GAP)
CAD – Computer Aided Design (tools and software used by engineers and architects to design)
CAGR – Compound Annual Growth Rate (a cumulative interest rate used by banks or within investment projects)
CEO – Chief Executive Officer (the big boss)
CFO – Chief Financial Officer (head of the finance)
CMO – Chief Marketing Officer (head of marketing)
COO – Chief Operating Officer (head of operations)
CTO – Chief Technology Officer (responsible for the tech side)
CRM – Customer Relationship Management (a system to capture, analyze and store customer information in order to manage clients efficiently)
EBITDA – Earning Before Interests, Taxes, Depreciation and Amortization (an indicator of a company’s financial performance)
EDI – Electronic Data Interchange (a set of standards used to exchange data between different companies and organizations)
EPS – Earnings Per Share (is the ration between the profits of a company and the common shares)
ERP – Enterprise Resources Planning (a system that integrates all the data from an organization into a single location)
FIFO – First In, First Out (used both in computer programs and accounting; it determines that what comes first is handled first)
GAAP – Generally Accepted Accounting Principles (a framework used to carry out financial accounting within companies)
ICT – Information and Communications Technology (term used to encompass the fields related to IT and electronic communications)
ISV – Independent Software Vendor (a group of developers or company specialized in the production of software for a certain niche)
IPO – Initial Public Offering (when a company first introduces its shares on the stock market)
LIFO – Last In, First Out (used both in computer programs and accounting; it determines that what comes last is handled first)
LLC – Limited Liability Company (a legal entity where the owners are not liable personally)
MSRP – Manufacturer’s Suggested Retail Price (a recommendation made by a company in order to standardize the price of its products across different places)
NDA – Non-Disclosure Agreement (a contract between two parties to secure the confidentiality of information)
NPV – Net Present Value (a method to valuate long term investments or projects)
OEM – Original Equipment Manufacturer (a company that manufacturers equipment that will be re-branded and sold by other companies; sometimes it refers to the reseller as well)
OTC – Over-The-Counter (trade of stocks or other derivatives directly between two persons)
P&L – Profit and Loss (also called Income Statement, is an accounting report used to outline how revenues are transformed into profits)
POS – Point of Sale (a checkout point in retail stores, or the hardware behind it)
RFP – Request For Proposal (an invitation for suppliers to bid on a specif task or service)
ROI – Return On Investment (ratio of money earned relative to total money invested)
ROS – Return On Sales (ratio of money earned relative to total sales)
SAAS – Software As A Service (software or applications that are developed on the web and the users access it via the Internet)
SOHO – Small Office/Home Office (refers to small or home office environments)
TCO – Total Cost of Ownership (a method to estimate all the costs – direct and indirect – related to a project or purchase)
TQM – Total Quality Management (a management strategy to raise the awareness of the whole organization towards quality)
TSR – Total Shareholder Return (a method of valuation which takes into consideration both dividends and share price gains)
VC – Venture Capital (a form of financing where the owners give up part of the ownership)

The famous “Built to Last!” moto…

Why? Why can’t companies just be conceived, do what they have to do (with excellence, don’t get me wrong here), and die? This is as natural as it could be.

The day managers and shareholders learn this, the whole system will work more efficiently. Instead of bankruptcy we’ll see companies acknowledging that their mission is accomplished (or that they have no more means to accomplish it, so it is better to let it go). Things will be more… organic.

Quoting Tom Peters, “I’ve long said that Netscape is one of my favorite companies ever: Born, changed the world, and died … all in the space of 60 months. I’ll stand by that remark.”

But is anyone really suited for that? Sure we need social interactions. Some more than others. But is having a “boss” a natural thing? Sometimes, talking to friends that work for large companies, I realize that having a boss creates a negative impact on their lives. It hurts their self-confidence, their creativity. Overall it limits the freedom of thinking and acting.

Out with the bosses! Right. But what about the leaders? Some people could argue that, while bosses might create all the negative factors aforementioned, leaders are necessary to guide us. But are they really?

What if in the future we manage to create a society where every individual is an equally important part of the core? Where every individual is a leader in himself, yet willing to collaborate and interact with others in order to achieve synergies and build larger projects. Think about the cells in your body…

“Management will go from art to science. Bigger, more complex companies demand new tools to run and manage them. Indeed, improved technology and statistical-control tools have given rise to new management approaches that make even mega-institutions viable. Long gone is the day of the “gut instinct” management style. Today’s business leaders are adopting algorithmic decision-making techniques and using highly sophisticated software to run their organizations. Scientific management is moving from a skill that creates competitive advantage to an ante that gives companies the right to play the game.”

According to Roger Martin algorithms, software and complex statistical processes certainly can help business practices, but they will never substitute the human factors – or the “gut” as Jack Welch would say.

Do you agree?

Process Theories of Motivation:

1. Needs-Goal Theory – Motivation begins with an individual feeling a need. This need is then transformed into behavior directed at supporting, or allowing, the performance of goal behavior to reduce that felt need. Theoretically, goal supportive behavior and goal behavior itself continue until the felt need has been significantly reduced.
2. Vroom Expectancy Theory – Like the needs-goal theory, motivation strength is determined by the perceived value of the result of performing a behavior and the perceived probability that the behavior performed will cause the result to materialize. As both of these factors increase, so does motivation strength, or the desire to perform the behavior. People tend to perform the behaviors that maximize their rewards over the long term.
3. Equity Theory – Equity theory looks at an individual’s perceived fairness of an employment situation and finds that perceived inequalities can lead to changes in behavior. When individuals believe that they have been treated unfailry in comparison with their coworkers, they will react in one of four ways:
1. Changing their work inputs to better match the rewards they are receiving.
2. Ask for a raise or take legal action.
3. Change their own perception of the situation.
4. Quit.
4. Porter-Lawler Theory – The Porter-Lawler Theory accepts the premises that felt needs cause human behavior and that the effort expended to accomplish a task is determined by the perceived value of rewards that will result from finishing the task and the probability that those rewards will materialize.

Theories extracted from Modern Management