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Making the List

This article accompanies Where Culture is King.

Thursday, December 6, 2012
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To get on Fortune's Most Admired Companies list, have a good reputation that rises above the rest. Getting on Human Resource Executive® magazine's "Most Admired for HR" list requires another level of scrutiny.

The process of developing this definitive report card on corporate reputations begins when Philadelphia-based management consulting firm Hay Group teams up with Fortune magazine to determine the "Most Admired Companies," which they've done for the last 15 years. They start with approximately 1,400 companies: the Fortune 1,000 (the largest U.S. companies ranked by revenue), non-U.S. companies in Fortune's Global 500 database with revenues of $10 billion or more, and the top foreign companies operating in the United States.

"It's not a public-opinion poll," says Mark Royal, Hay Group's Chicago-based senior principal who plays a leading role in directing the annual research project. "Rather, it's a peer review within the community. We ask the raters to make a summary judgment of an attribute. We keep the process simple and straightforward."

Hay Group then sorts the companies by industry and selects the 15 largest for each international industry and the 10 largest for each U.S. industry. A total of 698 companies from 32 countries were surveyed for this year's list. To create the 58 industry lists, Hay Group asked executives, directors and analysts to rate companies in their own industry on nine criteria, from investment value to social responsibility.

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To arrive at HRE's "Most Admired for HR" rankings, Hay Group recalibrated the Fortune numbers, isolating four criteria that have a bearing on HR -- management quality, product/service quality, innovation and people management.

 

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