Drucker Institute

Factor Loadings for the Drucker Institute’s Company Rankings

The Drucker Institute’s holistic company ranking is based on the principles of our founder, Peter F. Drucker, using these data sources, combined using this methodology.

Below are the factor loadings in our model for both the dimensions as they relate to overall Effectiveness and the indicators as they relate to their respective dimension. For a sense of proportion, the average correlation of our five areas with effectiveness is about the same as the correlation of the percentage of shots a National Basketball Association team makes with how many games it wins.

Of course, there are lots of things that our model misses. As a matter of statistics, even a factor loading of 0.66 explains only about 44% of a company’s effectiveness.

Macroeconomic events, such as big swings in currency exchange rates or new trade policies, are likely to fall outside the scope of our model. We also don’t always detect, at least in a timely way, some headline-grabbing management failures. Nonetheless, by and large, our model has proven its ability to consistently separate out the best-managed companies from the rest.

Factor Loadings for Overall Corporate Effectiveness
Dimension 2024 Loading Score 2023 Loading Score 2022 Loading Score 2021 Loading Score 2020 Loading Score 2019 Loading Score 2018 Loading Score
Customer Satisfaction 0.716 0.718 0.658 0.616 0.580 0.476 0.566
Employee Engagement 0.659 0.693 0.609 0.609 0.618 0.655 0.641
Innovation 0.710 0.718 0.711 0.740 0.768 0.710 0.691
Social Responsibility 0.788 0.808 0.842 0.792 0.763 0.729 0.750
Financial Strength 0.444 0.433 0.451 0.465 0.587 0.708 0.630
0.663 0.674 0.654 0.644 0.663 0.656 0.656
Factor Loadings for Each Dimension (Principal Component Analysis)
Customer Satisfaction Indicators 2024 Loading Score 2023 Loading Score 2022 Loading Score 2021 Loading Score 2020 Loading Score 2019 Loading Score 2018 Loading Score
ACSI Absolute Score 0.760 0.946 0.882 0.854 0.840 0.847 0.932
Net Promoter Absolute Score (now JD Powers) 0.828 0.894 0.939 0.906 0.836 0.884 0.841
CSRHub Product Rating – 0.100 0.403 0.193 0.210 N/A 0.361
wRatings Quality Gap Score 0.319 0.323 0.100 0.377 0.367 0.412 0.413
JD Powers Customer Satisfaction Index 0.859 0.878 0.904 0.936 0.959 0.862 N/A
ROI Rocket Digital Positioning Score 0.384 N/A N/A N/A N/A N/A N/A
Employee Engagement Indicators 2024 Loading Score 2023 Loading Score 2022 Loading Score 2021 Loading Score 2020 Loading Score 2019 Loading Score 2018 Loading Score
Glassdoor Engagement Index 0.930 0.946 0.928 0.912 0.895 0.882 0.913
Glassdoor Principles Index 0.932 0.939 0.925 0.919 0.918 0.922 0.930
Glassdoor Confidence Index 0.831 0.841 0.876 0.847 0.825 0.835 0.834
Payscale Pay Differential N/A N/A 0.567 0.596 0.598 0.577 0.561
Payscale Job Satisfaction N/A N/A 0.673 0.691 0.695 0.712 0.746
CSRHub Comp & Benefits Rating 0.508 0.404 0.428 0.376 0.523 0.473 0.410
Indeed Compensation, Learning, Achievement, Purpose Index 0.667 0.726 N/A N/A N/A N/A N/A
Lightcast AOI Wages, Emp Experience, Fairness, Mobility Index 0.539 0.458 N/A N/A N/A N/A N/A
Innovation Indicators 2024 Loading Score 2023 Loading Score 2022 Loading Score 2021 Loading Score 2020 Loading Score 2019 Loading Score 2018 Loading Score
Clarivate Number of Inventions Relative 0.839 0.824 0.746 0.758 0.803 0.830 0.791
Clarivate Rate of Abandonment Relative 0.764 0.681 0.645 0.754 0.699 0.781 0.481
Clarivate Trademark Applications Relative 0.660 0.754 0.800 0.759 0.719 0.730 0.785
Clarivate Trademark Registers Relative 0.637 0.737 0.714 0.666 0.651 0.685 0.729
Clarivate R&D Spending Relative 0.874 0.891 0.891 0.888 0.799 0.707 0.764
wRatings Innovation Index 0.236 0.266 0.100 0.253 0.257 0.169 0.232
On a “Most Innovative” List 0.564 0.568 0.504 0.493 0.523 0.392 0.438
Handfield Supply Chain Innovation Index 0.108 0.451 0.450 0.460 0.520 0.370 0.550
Patent Value Relative 0.809 0.796 0.746 0.789 0.795 0.815 0.808
Burning Glass Technology Postings Relative 0.370 0.302 0.233 0.543 0.626 0.749 0.704
Burning Glass R&D Postings Relative 0.326 0.238 0.399 0.572 0.606 0.817 0.780
Social Responsibility Indicators 2024 Loading Score 2023 Loading Score 2022 Loading Score 2021 Loading Score 2020 Loading Score 2019 Loading Score 2018 Loading Score
CSRHub Overall ESG Rating Absolute 0.928 0.895 0.921 0.909 0.918 0.921 0.935
CSRHub Overall ESG Ranking Relative 0.889 0.850 0.882 0.899 0.901 0.865 0.893
Sustainalytics Overall Management Rating Absolute 0.833 0.818 0.810 0.828 0.858 0.868 0.886
Sustainalytics Overall Management Rating Relative 0.826 0.808 0.787 0.828 0.860 0.842 0.856
HIP Investor Overall ESG Rating 0.826 0.865 0.855 0.869 0.861 0.859 0.856
Korngold + HIP Shared Value Index 0.716 0.683 0.821 0.838 0.836 0.820 0.842
Handfield Supply Chain Soc. Resp. Rating – 0.474 0.385 0.328 0.561 0.487 0.671
HIP Investor SDG Rating 0.896 0.914 0.911 0.920
Financial Strength Indicators 2024 Loading Score 2023 Loading Score 2022 Loading Score 2021 Loading Score 2020 Loading Score 2019 Loading Score 2018 Loading Score
Market Share (= Revenue/Industry Revenue) 0.548 0.392 0.491 0.274 0.362 0.320 0.128
5 Yr. Total Shareholder Return N/A N/A N/A N/A N/A N/A 0.472
Operating ROIC N/A N/A N/A N/A N/A N/A 0.942
Return on Assets N/A N/A N/A N/A N/A N/A 0.901
Return on Common Equity N/A N/A N/A N/A N/A N/A 0.789
Earnings for Common Shareholders N/A N/A N/A N/A N/A N/A 0.227
Economic Spread (= ROIC Minus WACC) N/A N/A N/A N/A N/A N/A 0.934
3 Yr. Total Shareholder Return 0.493 0.539 0.516 0.503 0.545 0.656 N/A
Accounting Profit 0.842 0.837 0.828 0.861 0.859 0.840 N/A
Economic Profit 0.794 0.858 0.825 0.905 0.855 0.841 N/A