Philadelphia, PA (PRWEB) March 11, 2005
Discipline, Organization, Patience, and Talent Are Key Factors for WorldÂs Most Innovative Companies
In partnership with Fortune, Hay Group, a global organizational and human resources consulting firm, conducted its eighth annual analysis of the Most Admired Companies lists for the magazineÂs March 7 issue. In conjunction with this ranking, Hay Group surveyed executives to identify the leading traits of the worldÂs most innovative companies.
For the study, Hay Group sought to understand how organizations develop, implement, and sustain innovation.
Top Innovative Companies
Federal Express and Procter & Gamble tied for the number one spot in the innovation study. Other companies that ranked high were Alcoa, Texas Instruments, and WalgreenÂs.
ÂInnovative companies tend to define standards for their industry sector: FedEx and overnight delivery; Procter & Gamble with product design; Alcoa aluminum in its use and application of materials,Â said Hay GroupÂs Vice President Mel Stark.
Hay Group surveyed executives at 160 companies in the fourth quarter of 2004. The research identified two groups: innovation leaders and peer group companies. Innovation leaders were the two companies in each industry that had the highest score for innovation. All the other companies in the study were included in the peer group.
Hay Group identified more than 10 factors of the worldÂs leading innovative companies, including: vision, tone, talented employees, disciplined managers, a nurturing environment, patience, a tolerance for failure, investment in research and development, as well as the right structures, processes, and systems for innovation to flourish.
ÂInnovative companies are distinguished from their peers by having the right people in the right environment with the right leadership,Â said Stark. ÂInnovation is not spontaneous--these companies plan for and manage their organizations to be innovative.Â
Respondents from the innovation leaders report that managers are given the decision-making latitude they need (91 percent, versus 82 percent of peer companies) and that their companies are patient with ideas that donÂt generate immediate results (75 percent, versus 62 percent of peer companies). Innovation leaders also report that they invest greater resources in research and development than their competitors (65 percent, versus 44 percent of peer companies).
According to the study, executives at the innovative companies surround themselves with people who are not afraid to challenge them on their thinking.
ÂInnovation starts at the top with the CEO and senior executives setting the tone and vision for the company,Â added Stark.
The study found a number of common characteristics of the employees at the most innovative companies. They were high achievers, intellectually curious, and risk takers. They also evidenced a high tolerance for ambiguity in their jobs and a high level of empathy and sensitivity to others.
Hay GroupÂs proprietary data and experience working with a number of the innovation leaders correlate highly with the Fortune research and the competencies and qualities found in the Most Admired Companies.
Return on Investment
Hay GroupÂs research showed that innovative companies are patient with ideas that donÂt generate immediate returns and donÂt withdraw funding or support too quickly. However, these same companies are not afraid to admit mistakes and cut their losses on ideas that fail.
ÂYou can generate innovation within a company if you are willing to create the organizational conditions that allow it to flourish,Â said Stark. ÂIt starts with screening for the right people that will fit into the corporate culture, hiring and retaining them, and developing systems to manage them.Â
Hay Group partners with Fortune magazine annually to identify and rank the WorldÂs and AmericaÂs Most Admired Companies and uncover the business practices that make these companies both highly regarded and successful. Past research studies have focused on a wide range of topics including attraction and retention of talent, leadership development, performance measurement, corporate culture, strategy implementation, execution, and responses to economic uncertainty.
To identify and rank the AmericaÂs Most Admired, Hay Group asked the top managers at 582 companies (the largest by revenues in each of 65 sectors) to judge their competition. In all, 10,000 executives, directors, and securities analysts rated the companies in their industries on eight attributes.: innovation, employee talent, financial soundness, quality of management, use of corporate assets, social responsibility, long-term investment, and quality of products/services.
The WorldÂs Most Admired were measured on the same eight attributes plus effectiveness in doing business globally.
For more on Hay GroupÂs research and analysis of the Most Admired Companies, visit http://www.haygroup.com/fortune.
About Hay Group
Hay Group (http://www.haygroup.com) is a global organizational and human resources consulting firm that helps its clientsÂBoards, CEOs, Executives, and HR ManagersÂon virtually all aspects of their people-related business issues. Founded in 1943, Hay Group has over 2,200 employees working from 77 offices in 43 countries.
Our areas of expertise include:
- Design and analysis of organizations and jobs;
- Talent management through assessment, selection, and development of executives, managers, and teams;
- Compensation, benefits, and performance management;
- Executive remuneration and corporate governance; and
- Employee and customer attitude research.
Hay Group works with nearly three-quarters of FortuneÂs top-50 Most Admired Companies, as well as many mid-sized and non-profit corporations, public institutions, and governments.
For More Information:
For more information, please contact:
Jeff Meyers, 215-861-2623 or Jeff_Meyers@haygroup.com
Hay Group | The Wanamaker Building | 100 Penn Square East | Philadelphia, PA 19107 USA
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