In partnership with Fortune, Hay Group -- a global organisational and human resources consulting firm -- conducted its eighth annual analysis of the most admired companies' list for the magazine. Proctor and Gamble and Federal Express share the top spot in the analysis.
For the study, Hay Group sought to understand how organisations develop, implement, and sustain innovation. Federal Express and Procter & Gamble tied for the number one spot in the innovation study, while the other companies that ranked high were Alcoa, Texas Instruments and Walgreen's.
"We have set up base in India last year and we will conduct an in-depth study on Indian companies which can reach the top spot in the next year's ranking. We hope to see one or two Indian innovative companies which are using leading edge technologies in the ranking," Gaurav Lahiri, Hay Group's Operations Manager, said.
The research conducted by the group identified two groups namely innovation leaders and peer group companies and identified vision, tone, talented employees, disciplined managers, a nurturing environment, patience as some of the key factors of world's leading innovative companies.
"Innovative companies are distinguished from their peers by having the right people in the right environment with the right leadership," said Mel Stark, Vice President, Hay Group. "Innovation is not spontaneous. These companies plan for and manage their organisations to be innovative," he added.
According to the study, executives at the innovative companies surround themselves with people who are not afraid to challenge them on their thinking. "Innovation starts at the top with the CEO and senior executives setting the tone and vision for the company," added Stark.
Hay Group partners with Fortune magazine annually to identify and rank the World's and America's most admired companies and asked the top managers at 582 companies to judge their competition.
The companies were rated by 10,000 executives, directors, and securities analysts on the basis of eight attributes like innovation, employee talent, financial soundness, quality of management, use of corporate assets, social responsibility, long-term investment, and quality of products/services.