Management by objectives | Glossary

Definition:

Management by objectives (MBO) is a management model that aims to improve the performance of an organization by clearly defining objectives that are agreed to by both management and employees. According to the theory, having a say in goal setting and action plans encourages participation and commitment among employees, as well as aligning objectives across the organization.

Further Reading:

Book: Toyota Kata by Mike Rother.

 

Diversification | Glossary

Definition:

Diversification is an asset allocation plan, which properly allocates assets among different types of investment. Investors accept a certain level of risk, but they also need to have an exit strategy, if their investment does not generate the expected return.

Further Reading:

Book: Marketing as strategy by Nirmalya Kumar.