Global productivity champions revealed.
The world’s most financially productive companies were commended on April 20, in a prestigious global ranking created by Duke Corporate Education.
The winners and medalists of the Global Productivity Ranking, devised by Professors Joe Perfetti and Michael Cichello for Duke Corporate Education rose to the top from the 2016 Bloomberg World Index of 5000 companies. Download the results and supporting resources and watch the webinar recording.
This innovative new approach ranks companies according to their Financial Cycle Time (FCT). FCT measures how long it takes a company to generate its operating profit margin. The FCT tool is a simple yet powerful way to measure productivity, find and address gaps in processes, and deliver return on investment that has real financial impact. Companies that reap higher margins, faster, rise to the top of the ranking.
Professor Perfetti said: “Speed matters. Just look at fast-fashion companies – they are winning. In 2015, H&M generated an operating profit margin of 11%. Contrast that with 9% for a traditional fashion retailer like Ralph Lauren. But where H&M really shines is its cycle time. H&M takes 104 days to achieve an operating profit margin of 11%. In contrast, Ralph Lauren makes a 9% margin every 169 days.”
Gold, silver and bronze medalists across a raft of key sectors, including healthcare, energy, telecoms and IT were announced as well as the top 10 performers across all industries. An introduction to the ranking can be read in the article The Need for Speed which includes a notional current ranking of companies, showing how the league would have looked had the tool been in existence in the past financial year.
Duke Corporation Education chief executive Michael Chavez said: “We are thrilled to be unveiling the Global Productivity Ranking this spring. This groundbreaking tool creates a level playing field so the productivity of companies worldwide can be authoritatively and fairly benchmarked against one another.”
The Financial Cycle Time tool is a trademark of Percipient Partners LLP and the brainchild of Joe Perfetti, Duke Corporate Education faculty, a lecturer at the University of Maryland, College Park and adjunct professor of law at Georgetown University and Michael Cichello, a finance professor at the McDonough School of Business at Georgetown University.