Last week, we presented the first of a two-part series on best-managed companies. Now, we look at the 2021 top 250 best-managed firms.
Wall Street Journal Report: The 2021 Top 250 Best-Managed Firms
The Management Top 250 ranking, developed by the Drucker Institute, measures corporate effectiveness by examining performance in five areas. Customer satisfaction. Employee engagement and development. Innovation, Social responsibility. And financial strength. The ranking is based on an analysis of 34 data inputs provided by 14 third-party sources.
The five areas are weighted nearly equally in calculating a score that represents the basis of the ranking. Not all data inputs are available for all companies in the ranking. We exclude companies from the ranking if fewer than two data inputs appear for any of the five areas.
The Management Top 250 includes the top U.S. companies from a universe of 846 publicly traded companies included in a Drucker Institute study. Red flags in the table indicate a score in the bottom 25% for those 846 companies.
For inclusion in the study universe, companies ranked as a part of the Dow Jones U.S. Total Stock Market Index. Or the S&P Composite 1500 Index. Or both. And they met at least one of these criteria. Had stock included as a component of the S&P 500 index. Showed a stock-market capitalization of $10 billion when snapshots were taken for the Drucker study on June 30, 2021. Or had at least $3 billion in annual revenue as of March 31, 2021. All data collected by the Drucker Institute were the most current available as of June 30, 2021.
Here are the top 20. [Sources: Drucker Institute, using data from American Customer Satisfaction Index, Burning Glass Technologies, Clarivate Analytics, CSRHub, Glassdoor, HIP Investor, ISS EVA, J.D. Power, Prof. Dimitris Papanikolaou of Northwestern University and Prof. Amit Seru of Stanford University, Payscale, Refinitiv Eikon, Supply Chain Resource Cooperative, Sustainalytics and wRatings. Note: Alice Korngold, chief executive officer of Korngold Consulting in New York, developed the methodology for a portion of the social responsibility category]. CLICK the image to access the full 250.