21 CORPORATE ACRONYMS THAT EVERY ENTREPRENEUR NEEDS TO KNOW
All professions have a specific language that connects people and summarizes important concepts.
Below we have listed here some of the most widely used corporate acronyms.
B2B – Business to Business
Meaning trade from company to company. When we say that a company is B2B, it means that its target audience is other companies.
B2C – Business to Customer
Meaning business to the end consumer. When we say that a company is B2C, it means the target audience are consumers.
CEO – Chief Executive Officer
The Executive Director. The CEO is the one who is at the highest operational hierarchical level, with the greatest authority in relation to the needs of the business. Also responsible for vision and strategy.
CFO – Chief Financial Officer
The Financial Director. Responsible for the company’s finances, monitoring cash flow, company budget and financial planning, in addition to controlling goals and objectives.
CHRO – Chief Human Resources Officer
The Human Resources Director. Responsible for taking care of the organization of company employees. Monitors performance from a operational and strategic perspectives.
CIO – Chief Information Officer
The Director of Information Technology. The CIO’s role is to implement and control the maintenance of the company IT systems. Strategically choosing certain technology options, according to the needs of the business and its growth predictions.
CKO – Chief Knowledge Officer
The Knowledge Director. Widely used in consulting companies, a key role for companies that need someone who manages both the company’s intellectual capital and the organization’s knowledge. Must have experience in technology, processes and people.
CMO – Chief Marketing Officer
The Marketing Director. Responsible for managing all company marketing strategies. The CMO has a systemic view of the company and the marketplace, essential for attracting and retaining customers. Also includes the responsibility to popularize the brand, positioning it better in the market.
COO – Chief Operating Officer
The Director of Operations. The person responsible for closely coordinating all routine activities of operations that are important to the company’s functioning, such as projects and processes. The job is to manage resources and improve the efficiency and productivity of operations. The COO works in conjunction with the CFO.
CRM – Customer Relationship Management
Customer Relationship Management. CRM is a set of best practices, technologies and organizational strategies used to manage and analyze the relationship with customers. Employed within companies of all sizes, a platform format that stores all important information about customers and potential customers.
CRO – Chief Risk Officer
The Risk Director. Responsible for analyzing and managing the company’s risks in relation to several areas, for example IT, in order to prevent or reduce damage from potential threats to the business.
CTO – Chief Technical Officer
The is the Technical Director. A position found usually in technology companies and industries, which need support for the technological and scientific development of their products. A technology visionary, in charge of research and development.
EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization
Meaning earnings before interest, taxes, depreciation and amortization. This is a financial indicator widely used by publicly traded companies and market analysts. It has to do with the operating cash flow of the organization. In other words, it is a calculation performed to find out how much the company generates resources within its operational activities, disregarding the interest, taxes, depreciation and amortization that preside on them.
ERP – Enterprise Resource Planning
An integrated business management system. But what does it mean? ERP is a system generally divided into modules, that integrates data and information from different areas of the company, with the objective of assisting in tactical and strategic decisions. Thereby, bringing more efficiency and control to processes and consequently, reducing operating costs.
KPI – Key Performance Indicator
These are the performance indicators that the company chooses to use to monitor its development. They are metrics used to quantify the results of a given action or strategy based on predetermined objectives by the company. That is, they show whether the company is on the right track or not. KPIs are efficient in allowing the organization to quickly perceive and react to failures.
Learn how to align your KPIs to the company’s strategy
M&A – Mergers and Acquisitions
Mergers happen when two or more companies decide to join together to create a new company. With the merger, the companies disappear and become one with different classifications. The acquisition, unlike the merger, takes place when one company buys another. The acquired company is not necessarily finished, but it can undergo changes such as a new direction.
NDA – Non-Disclosure Agreement
A confidentiality term. It is a legal contract that explains the desire of both parties involved to keep information exchanged in confidence.
ROI – Return On Investment
The return on investment. An indicator that measures how much money the company is earning or losing with each investment. With the ROI calculation, it is possible to know whether the company’s investments are producing a positive result. It can be calculated in several areas of the organization.
SaaS – Software as a Service
Software as a service. A type of software distribution and commercialization. The supplier makes all the necessary structure for the customer to use the system via the cloud, from data storage to applications. As it is a service, the user does not purchase a license for the product, but buys the right to use the service.
SEO – Search Engine Optimization
Meaning optimization for search engines. It is one of the main points of Digital Marketing. SEO is a set of optimization techniques for websites, blogs and web pages. These constant optimizations aim to achieve good organic rankings on search engines, generating traffic and authority for a website or blog.
VC – Venture Capital
Venture capital. An alternative investment model that helps companies to develop and conquer new markets. Investors invest capital in companies, usually small and medium-sized and subsequently receive a percentage of what these companies have gained with the resulting investment from the venture capital.