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It's All in the Numbers

Tuesday, December 1, 2009
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What distinguishes the Most Admired companies from the also-rans? Chalk it up to the rankings of more than 4,000 industry insiders who were asked to rate the 10 companies they admired the most.

Hay Group, the Philadelphia-based management consulting firm, has partnered with Fortune magazine since 1997 to rank the "Most Admired Companies."

This year, Hay Group selected about 1,400 companies, garnered from the Fortune 1000 list, the 1,000 largest companies in the U.S., ranked by revenue; they added non-U.S.-based companies with revenues of at least $10 billion from Fortune's Global 500 database, and highly ranked foreign companies with operations in the United States.

The list was then sorted by industry, and further whittled down as Hay Group asked executives, directors and analysts to rate companies in their own industry based on a total of nine criteria, including management quality, investment value and social responsibility. All told, 689 companies from 28 countries were surveyed.

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Then, Hay Group reached out to 4,047 executives, directors and securities analysts to rank companies again. This time, those polled could select companies from any industry.

To arrive at the "Most Admired for HR" rankings, Hay Group isolated four criteria, or "attributes of reputation": Management Quality; Product/Service Quality; Innovation, and People Management.

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