Despite economic changes, technological advances and the increasing globalization the basic factors determining commercial success of companies still remain the same. That is the finding of the most recent ranking of the World's Most Admired Companies that has been prepared by the consulting company Hay Group for the prestigious American economic magazine Fortune for the last fifteen years. More information on the ranking methodology can be found on the Hay Group website here. This year's winners and more information about them can be found on the website of Fotrune Magazine here.
Analysis of the 15 years of researching the world's most admired companies by Hay Group showed that there were four factors providing an advantage to these companies over the others:
1. Achieving success through people
Most admired companies in the world have a strategy for managing human capital approved by senior management and focus on creating opportunities for personal and career growth of their people. They actively work with employee engagement and help their people to remove barriers to productivity.
2. Focusing on leadership and talent
Most admired companies in the world are working hard to get the right talent to the right places. They have a rigorous selection and evaluation procedure for job applicants, place great emphasis on the development and growth of their employees and closely link pay to performance. In addition, they achieve greater ROI from their rewards programs by applying the concept of Total Rewards.
2. Planning and execution of strategies
Most admired companies in the world not only plan strategically, they are also able to execute the strategies. They create clear objectives, link them with long-term organizational goals and implement them in practice. They are aware of the influence of culture on employees and overall business results and therefore generate strong positive corporate cultures to support their strategies.
4. Building structures and processes for sustainable performance
Most admired companies in the world have built structures for long-term business success. Great emphasis is placed on innovation. They strengthen their global reach but also give their local businesses the flexibility to adapt to the needs of local markets.
Full report with the results of the 15 years of research is available to download on the Hay Group websute here.
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