Most admired by their peers
India’s 50 most admired companies list is out. Gaurav Lahiri, MD of the hay group that compiles the list, fields a few volleys from Radhika Sachdev
There is a glut of best employer surveys in the market, a bulk conducted by media houses, looking at brand-building with their key advertisers — how is your survey different?
India’s Most Admired Company (IMAC) is not a best employer study as it takes a much broader perspective. It also correlates with superior shareholder value creation. We use peer ranking methodology. Business leaders in each industry rated the nominated companies on nine business parameters on a scale of 1 to 10. A total of 507 industry experts responded to the survey, representing 291 companies. The expert panel also satisfied a set of criteria, such as 12 years of experience, five years of industry specific experience and three years in the current company. Lastly, our survey methodology uses evaluation criteria that go beyond the scope of financial soundness, to include such aspects as corporate governance, innovation, and talent management.
Nonetheless, was it necessary to tie-up with a business magazine?
Since 1997, Hay Group has partnered with Fortune. We wanted to continue the legacy and consistency of this property in India, while avoiding brand dilution.
In all such polls, the research methodology, sample size, variable selection etc. are very subjective and non-standardised. How did you overcome these challenges?
We picked the 15 largest industries that had the highest impact on the Indian economy; criteria considered were contribution to national gross domestic product (GDP), growth rate, maturity of industry, and competition in the industry. Consequently, retail, hospitality and airline industries were omitted due to the lack of a sizable number of competitive companies within that industry. We then shortlisted between 13 and 50 companies based on turnover, market share, and compound annual growth rate (CAGR) in each of the 15 selected categories. In the end, 425 companies were shortlisted across the 15 industries. Thus, at each step of the process, we had filters in place to overcome possible challenges.
THE STORY THUS FAR…
The Hay Group India and Fortune magazine compiled a list of ‘India’s 50 Most Admired Companies’ the key highlights of which were:
• Tata Steel is the country’s most admired company, followed by Hindustan Unilever, Colgate Palmolive, Cadbury India and Tata Group’s TCS
• Eight public sector entities figure among the top 25: ONGC (16th), Bharat Petroleum (17th), Indian Oil (19th) and Hindustan Petroleum (20th)
Some of the variables that you chose are they important considerations for an employee? Wouldn’t an employee be more driven by factors such as rewards & recognition, growth prospects, perks and ESOPS, diversity & gender parity?
Let me reiterate that this is not an employee-centric ranking. Our endeavour is to recognise organisations that have been able to implement best practices consistently across various fields, and not just as an employer
Lastly, although you may not like to answer this — should media houses allow themselves to be part of such exercises, where half the respondents are their potential advertisers?