Jul 28, 2011 • By

One of the world’s most innovative companies

At times, it seems like overuse of the term innovation in business has led to a “boy who cried wolf” mentality that makes people wary of one company’s claims of innovation over another’s.

While we’re certainly proud of General Mills’ innovation successes and enjoy sharing examples of our unique approach on this blog, we realize that people value reading outsiders’ perspectives on a company’s innovation efforts.

So we were thrilled to learn that Forbes magazine selected us as one of The World’s Most Innovative Companies, featured in the current issue of Forbes. General Mills ranks 31st out of 100 global companies on the list.

The researchers behind the list say its methodology relies on investors to identify the companies they expect innovation from today and in the future — rather than asking executives to vote on which companies they think are most innovative. They compare the latter to “popularity contests based on past performance.”

Companies were selected and ranked based on the researchers’ assessment of each company’s “innovation premium,” which they define as “the proportion of a company’s market value that cannot be accounted for from cash flows of its current products in its current markets.” In other words, it measures the premium the stock market gives a company for anticipated or expected innovation.

Innovation Intersection — General Mills’ collaborative approach to innovation — connects employees, inventors, academics, entrepreneurs, suppliers, customers and consumers throughout the innovation process. It goes beyond new product introductions to include everything from adding health benefits to products, boosting the company’s environmental sustainability efforts, finding new ways to connect iconic brands with today’s consumers, partnering with retail customers, and improving productivity.

But, as LeVar Burton would say, you don’t have to take my word for it.

Visit Forbes.com to read Forbes’ comprehensive coverage of “The World’s Most Innovative Companies” and to learn more about its methodology.