Fortune - USA (2020-12)

U.S.

2 7 COMPANIES

CANADA

2 COMPANIES

GREATER CHINA

12 COMPANIES

WESTERN EUROPE

4 COMPANIES

DEVELOPED ASIA

4 COMPANIES

ARGENTINA

1 COMPANY

GEOGRAPHIC BREAKDOWN

PROPORTION OF WOMEN

IN THE EXECUTIVE TEAM

FUTURE 50 COMPANIES

ALL OTHER COMPANIES

22%

15 %

SOURCES: S&P GLOBAL; BCG HENDERSON INSTITUTE

SECTOR BREAKDOWN

INFORMATION TECHNOLOGY

19 COMPANIES

COMMUNICATION

SERVICES

6 COMPANIES

HEALTH CARE

1 1 COMPANIES

CONSUMER DISCRETIONARY

8 COMPANIES

INDUSTRIALS

4 COMPANIES

FINANCIALS

1 COMPANY

CONSUMER

STAPLES

1 COMPANY

FORTUNE DECEMBER 2020 /JANUARY 2021 115

ing success in bad times as well as good times.

A WINDOW TO THE FUTURE

AGGREGATE PATTERNS in our ranking reveal clues about where

vital companies are most likely to be found—and where trends

have shifted.

The technology sector is well represented—more than 50%

of Future 50 companies are in the IT, communications, or

e-commerce industries—but diverging patterns within the industry

are visible. On one hand, the acceleration of trends such as digital

transformation and online shopping are evident: Seven of our

top 10 companies are now B2B software businesses (including

No. 1 ServiceNow), and several e-commerce companies across dif-

ferent regions joined this year’s list. On the other hand, many com-

panies that digitally facilitate congregation in the physical world

(such as travel or live events platforms) fell out of the ranking.

There has also been a clear shift toward health care, which

increased from 12% of last year’s list to 22% this year. Some of these

are companies that may directly see demand increase as a result of

COVID-19 in areas such as ICU equipment or drug development.

Others were hurt in the short term by the postponement of nones-

sential procedures but still have strong long-term potential, espe-

cially in a world where consumers may be more health conscious.

Our ranking points to a bipolar global economy: More than 80%

are based in North America or Greater China, in line with recent

corporate growth patterns. Compared with last year’s ranking, North

America has increased its share slightly (from 56% to 58%), while

China’s share has fallen somewhat (from 32% to 24%). However,

a deeper look shows that this divergence is likely driven by the

dynamics of select companies and industries (such as real estate and

premium liquor); when expanding our list to the top 200 compa-

nies, we find that the relative share of Chinese and U.S. companies is

roughly unchanged from the prior year.

Our index once again demonstrates that diversity is a key ingredi-

ent for long-term success. Diversity data is difficult to find publicly,

but one consistently reported aspect is gender diversity. While still

far from achieving true gender equality, highly vital companies have

more diverse executive teams than their peers—women represent at

least one-quarter of leaders at 50% of Future 50 companies, com-

pared with 24% of others—and our analysis also shows that gender

diversity among the entire employee base is a predictor of growth.

Finally, even though some segments are better positioned than

others, highly vital companies can be found in all sectors and

geographies: Our list spans five continents and includes not just tech

giants but education, restaurants, and construction-materials com-

panies. In other words, vitality can be achieved everywhere—and

even amid a crisis, opportunity awaits companies that are willing

and able to look to the future.

Martin Reeves is a senior partner at management consulting firm

BCG and chairman of the BCG Henderson Institute. Kevin Whitaker

is head of strategic analytics at the BCG Henderson Institute.

THE INDEX BY THE NUMBERS

M ore than 50% of the companies

on this year’s list are from

technology-related industries.