What Constitutes the GoodFirms’ Company Performance Algorithm?
The Company Performance Algorithm is a functional algorithm designed by GoodFirms' Research and listing team. This optimally structured algorithm evaluates the organizations on two components: Core Competencies and 360-Performance View.
GoodFirms Leaders Matrix is based on the Company performance algorithm, which constitutes -Core Competencies and 360-Performance View as the main components to rank any company. These two components are key evaluation categories for the ranking purpose.
The Core Competencies component is plotted on the X-axis and takes into account the listed company's service. It talks about the primary service/the core focus area that the company plots itself in the market.
The 360-Performance View component is plotted on the Y-axis and takes the company's overall performance (based on various metrics) into consideration. The performance includes the ability to deliver.
Core Competencies highlight the services that form the main focus area of a company. Core competency is the focus area where the company excels and has a strategic advantage over its peers. To evaluate the legitimacy of core competencies, two factors are taken into account
The primary service provided by the company and in which it provides a robust, efficient, and exclusive service.
As per the service defined by the company, portfolios are used to validate the real performance of the company. It determines how good their services are.
360-Performance View defines a well-established company's overall market presence and performance. To evaluate the legitimacy of 360-Performance, three factors are taken into account:
The reviews submitted for the respective service are considered.
The overall presence of any company on the web is considered for ranking the company. It even takes the data that is available on GoodFirms.
GoodFirms score tries to assess the credibility of a company. It considers the company's accolades and certifications that are readily available on various media platforms.
The Leaders Matrix View
After the evaluation process, companies are further divided into four different quadrants.
- Companies that serve various services.
- They excel in 360-Performance View but have a low focus for respective service than leaders.
- Industry Contenders still have great delivery capabilities and advantages on various parameters.
- Companies that are considered to be the best in the industry.
- They excel in Core Competencies as well as 360-Performance View.
- Industry Leaders have par-excellent delivery power and competitive advantage.
- Companies that are new in the industry.
- They are less focused on the desired Core Competencies as well as 360- Performance View.
- Upcoming Achievers have fair delivery capabilities and are slowly gaining market share.
- Companies that are respective service focused.
- They are moderately focussed on the desired Core Competencies but have low 360-Performance View than contenders.
- Market Influencers have moderate delivery potential, and they have a good market share.
Frequently Asked Questions
What is the Relevance of Core Competencies in Deciding Rankings?
The ability to deliver the desired service depends a lot on whether the service is a core focus area of the company or not. As a result, it is an important factor to consider when ranking any company. The portfolio section makes sure that focus areas submitted by companies are legitimate, and it prevents any company from feigning core competency just to rank better in the matrix. Thus, the Portfolio works as an audit function to make sure that the said service is actually a core area of the company's expertise.
How is 360-Performance View a Valid Criterion in Deciding Rankings?
360-Performance View is another major factor that plays an important role in ranking any company. Market presence, client reviews, and recognition awards are parameters that can provide a complete picture of a company’s performance. Here also, to audit the company's performance, we have added GoodFirms Score as a cross-check process. GoodFirms Score is an evaluation process to make sure that the company's presence is credible.
How Do You Evaluate Market Presence?
Market presence is evaluated as per the below given six criteria:
- Industry Focus: Industries that a company serves.
- Client Focus: Client base that a company targets or have been covering.
- Market Experience: Founding year, employees, projects delivered, career opportunities.
- Reputation: How a company represents itself in the market, and how market perceive it?
- Social Media Presence: Overall social media presence and engagement.
- Geographic Presence: Geographical presence and hold of the local market.
How Do You Provide Review Scores?
Reviews are collected from various platforms while generating a review score of any company. Priority is given to the companies that have the most reviews on the GoodFirms’ Platform. To improve your review scoring, ensure your GoodFirms company profile is updated with the latest reviews.
How Does GoodFirms Score Work?
After filtering the list of companies as per market presence and review criteria, GoodFirms conducts a confidential assessment of the companies on its platform. A call, inquiry, social media reach-out is initiated by GoodFirms under the hidden identity of a prospective client, or an outreach professional. This can be a random inquiry, sales call, or normal conversation to assess customer-friendliness, professionalism, and other aspects related to the company.
Can Companies Rank in Multiple Leaders Matrices?
Yes. If a company offers multiple services that stand out and gets selected by the GoodFirms’ Research Analyst team, the company is offered top-ranking positions in GoodFirms Leaders Matrix. The possibilities are very less though.
When Does GoodFirms Update Its Company Rankings?
The company research ranking is an ongoing process. GoodFirms Research team keeps an eye on each company profile and global news updates to keep the ranking dynamic and exclusive.
How Can Companies Improve their Placement on Research List?
While companies cannot directly influence their position in reports, the best way to improve or get among the top ranking list is to keep your GoodFirms Profile and portfolio updated and adding more reviews.
Can I Pay/Sponsor to Rank on the Leaders’ Matrix?
No. You cannot pay or sponsor to rank.