Amazon, Apple, Alphabet best managed companies in the US
Tech companies took home seven of the top 10 spots in the 2017 Drucker Institute Company Ranking of effectiveness and in The Wall Street Journal's Management Top 250, a partnered special section to the Drucker Institute's rankings. Amazon took home the No. 1 spot, closely followed by Apple and Alphabet at No. 2 and No. 3, respectively. IBM got No. 5, followed by Microsoft at No. 6, Cisco at No. 9 and Nvidia rounding it up at No. 10.
The holistic ranking measured 37 metrics across the fields of customer satisfaction, employee engagement and development, innovation, social responsibility and financial strength to determine a company's effectiveness on a scale of 1-100. Most of the top tech companies have strong scores across categories. However, three companies in the top 100 companies of the Management Top 250 fell in the bottom 20% for social responsibility, including overall No. 1 Amazon and No. 44 Facebook.
- Amazon, Apple and Alphabet "are reshaping entire industries as well as social behavior" with their wide array of consumer and enterprise products, according to The Wall Street Journal's analysis of the rankings. High employee satisfaction at tech companies like Alphabet and Microsoft may be attributed to the frequent use of contractors for front-line work, which allows permanent employees to benefit from high salaries and "generous perks," according to the report.
From salaries to valuation to effectiveness, tech companies have shown time and again they do it best.
But the holistic dominance across typical financial measurements as well as other social and human-centric factors is a true testament to the clout and culture that made these tech companies hallmarks of the American and global business community.
Though tech giants came in at the top, every company has room to improve. Amazon was rocketed to the No. 1 spot by its innovation score of 166.3 — which was around 70 points higher than Apple's and Alphabet's scores and almost 100 points higher than Microsoft's.
The retail giant and parent of AWS has certainly shaken up more than a few industries. But banking on a long-term competitive advantage based on innovation is risky, especially when other tech companies with more evenly balanced scores across categories are close behind.
One frequent flier of the Top 10 sphere was noticeably absent: Facebook. The fifth most valuable company in the world and an icon of Silicon Valley came in at No. 46 in Drucker's rankings. It received scores below 50 for customer satisfaction and social responsibility and hovered around 70 points for the other three categories.
- The Wall Street Journal The 250 Most Effectively Managed U.S. Companies—and How They Got That Way
- The Wall Street Journal Explore the Management Top 250
- Drucker Institute 2017 Drucker Institute Company Ranking
Follow Alex Hickey on Twitter