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Apple has topped the list of the World’s Most Admired Companies in the 15th annual study conducted by Fortune Magazine and global management consulting firm Hay Group. Google came in second followed by Amazon.com, Coca-Cola and IBM.
The highest ranking Australian company BHP Billiton, was ranked fourth globally in its industry (Mining, Crude-Oil Production) but failed to finish in the Top 50 overall.
To determine which companies have the strongest reputations, Hay Group partnered with FORTUNE magazine, asked 15,000 top executives, directors and financial analysts to rate companies overall and relative to peer organisations. Companies eligible for inclusion are FORTUNE 1000, Global 500 and top non-US companies.
Hay Group also carried out additional research to uncover what makes these companies so successful. In its 2012 report, Hay Group uncovered what it says are the four most significant characteristics that have consistently enabled the World’s Most Admired Companies (WMAC) to outperform their peers.
According to the Hay Group, the four critical factors for success are:
- Executing and enabling strategy
- Building structures and processes to sustain long-term performance
- Achieving success through people
- Placing a high value on leadership and talent
Companies that were able to implement these practices over time consistently attracted and retained the best talent, and outperformed industry peers and the market as a whole.
Anand Shankaran, Head of Consulting at Hay Group, said that despite economic change, technological advances and increased globalisation during the past 15 years, the core business practices that distinguish the World’s Most Admired Companies have remained consistent.
“Over the past 15 years, we have seen the composition of the World’s Most Admired Companies list change, but the attributes that enable those companies to excel have remained the same,” said Shankaran.
“In today’s uncertain business environment, it is more important than ever for organisations to place value on these core practices, engaging and developing the talent that will be critical to long-term success.”
The full list of the World’s Most Admired Companies for 2012 can be found here: http://www.fortune.com/mostadmired.