Categories: WSJ

What Sets Some Companies Apart in the Current Crisis

As the downturn has affected a growing number of companies, it has become plain that “no one is immune” from letting workers go, in the words of Richard Florida, who teaches economic policy at the University of Toronto.

Yet as our most recent research shows, some companies are better inoculated than others from having to furlough or lay off people—namely, those that are most effectively managed.

Our findings are based on a statistical model that was created by the Drucker Institute and underlies the Management Top 250, an annual ranking produced in partnership with The Wall Street Journal. Rooted in the core principles of the late management scholar Peter Drucker, it assesses a company’s “effectiveness”—defined by Mr. Drucker as “doing the right things well.” The 2019 list was published in November.

In all, we examined 820 large, publicly traded companies last year through the lens of 34 indicators across five categories: customer satisfaction, employee engagement and development, innovation, social responsibility and financial strength.

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