Effectiveness is defined as “doing the right things well.”
The ranking includes U.S. companies whose shares are traded on the New York Stock Exchange or Nasdaq Stock Market and meet the criteria related to their value and prominence outlined below. This measure aims to evaluate how effectively a company adheres to a core set of principles established by the late Peter Drucker, a professor, consultant, author, and longtime columnist for multiple journals and news organizations.
This model, created and developed by the former Dean of the Drucker School of Management, Larry Crosby, provides valuable insights into specific companies and entire industries over time. To produce its rankings, the institute has built a statistical model that uses multiple firm-level indicators to assess five dimensions of corporate performance using a list of hundreds of companies:
These principles act as touchstones for five dimensions of corporate performance: customer satisfaction, employee engagement and development, innovation, social responsibility, and financial strength.
Innovation, Insights
The Data Innovation Team
The Data Innovation Team is a group of subject matter experts that explore new opportunities for public and private sectors firms to measure their effectiveness on significant initiatives. Some of the topics we explore:
New methods (AI, Machine Learning, etc.) could improve the Institute’s current measure of corporate performance, providing executives and investors with a more complete, longer-term view of how their companies are being managed.
Developing new ideas about conceptualizing the five dimensions of the Rankings: We are open to collaborating with all organization looking to evaluating their in-house measures and using these in-house measures to help companies gauge their potential standing on the rankings at year-end by applying our measures to their employees, leadership, or customers at any time during the year.
Introduce and evaluate a new dataset that addresses many of the current limitations regarding how intangible assets, especially relational ones, and key determinants of firm performance can offer a more thorough examination of the complex interplay among relationship-based assets, innovation, and financial performance.
Build internal indices by experimenting with various weighting schemes, strategies to incorporate historical price data, and rebalancing schedules, or clearly define the process for contracting this out.
Our Partners
The Wall Street Journal
In 2017 the Drucker Institute at Claremont Graduate University partnered with the Wall Street Journal to produce a groundbreaking new measure of corporate effectiveness, “The Management Top 250.” Developed by the institute, the Management Top 250 ranks Fortune 500, S&P 500, and other large-cap companies based on their alignment with 15 core management principles advanced by the late Peter Drucker, who taught management at CGU for more than 30 years. Drucker defined effectiveness as “doing the right things well.”
Daiwa Asset Management
The Drucker Institute, Drucker School of Management, and Daiwa Asset Management collaborate on a number of Funds that leverage the proven concepts and methodologies of the Drucker Institute Score.
Barron’s Future Focus Stock Index
Twice each year the Drucker Institute and Barron’s team up to pick the companies most likely to shape the economy in the next 3–5 years.
The S&P/Drucker Institute Corporate Effectiveness Index
This Index tracks stocks in the S&P 500® that consistently rank highly according to Peter Drucker’s management principles.
In-Depth Studies, Reports, and Consulting Services
Analysis of High Performers
Indicator-level score breakdowns compared to companies that surpassed the focal company in either overall or dimension-level scores from the prior year to the current year.
Analysis of Direct Competitors
Indicator-level score breakdowns compared to either a custom peer group (up to 10 direct competitors) or standard industry-level peer group.
Historical Analysis
Indicator-Level score breakdowns across however many years the focal company has had adequate coverage, looking as far back as 2017.
We can also work with you to create more customized reports, providing high-level insights/recommendations beyond the standard findings.
Create customized infographics, presentations, and publications based on their data.
Establish partnerships and licensing agreements.
Podcast
This first-of-its-kind series is inspired by the ideas of Peter F. Drucker – the father of modern management – and features leaders from standout companies included in the ranking of America’s “Best-Managed Companies.”