Global LAMP Index

(LAMP) Index®, it includes the most dedicated LAS pioneers in every major global industry/sector. The selection process evolved iteratively as our definition of best LAS practices evolved. To be included, firms were scored on the earlier discussed five attributes and the length of time these had been evolving. Companies founded after 1980 were not... included in the Index because they had not been in existence long enough to affirm the durability of their LAS practices. Our goal was to test each LAMP company's LAS practices through a number of economic cycles, where their stewardship commitments would be challenged. 5 While this test policy introduced some survivorship bias into the lab, it also excluded strong LAS performers founded after 1980, such as Costco and Google. It is worth noting that there have been only three changes in the LAMP 60 since 2002: two due to acquisitions and one to an error in our selection process. In this respect, LAMP differs from peer indices, whose constituent companies rotate regularly. Such consistency adds to the significance of performance evaluations both within key industries (e.g. Toyota vs. other automakers) as well as broader index comparisons, which can be seen in figure 2 (page 6). Over the ten year period shown here the equalweighted Global LAMP Index® more than doubled in value. By contrast, its nearest comparators the Morgan Stanley Capital International (MSCI) World Index, the Financial Times' FTSE World Index and the S&P 500 either lost money or barely held their heads above water. Independently verified results for prior ten-year periods show similar patterns of excess LAMP performance. 6 By gaining more in up-market years and losing less in down years, LAMP results have compounded at a vastly superior rate. The ability of LAMP companies to outperform in down markets owes much to their futuristic vision, frugality, learning capacity and adaptability. By maintaining these virtues from cycle to cycle, they continually strengthen their relational equity and typically ...Read More