Difference between core purpose, core value, BHAG. Vision and Mission

Jim Collins, a management expert, has defined several concepts that are critical to the success of any organization. Here's how he defines the core purpose, core values, BHAG, vision, and mission:

Core Purpose: This is the fundamental reason for an organization's existence. It is not about making money or profits; rather, it is a statement of why the company exists and what it hopes to accomplish beyond financial success.

Example: The core purpose of the Tata Group, an Indian multinational conglomerate, is "to improve the quality of life of the communities we serve globally through long-term stakeholder value creation based on Leadership with Trust."

The core purpose of the Aditya Birla Group, an Indian multinational conglomerate, is "to deliver superior value to our customers, shareholders, employees, and society at large."

Core Values: These are the guiding principles that an organization lives by. They are the beliefs and behaviors that the company expects all its employees to embody in their work.

Example: One of the core values of Infosys, an Indian IT services company, is "Integrity and Transparency." Infosys expects its employees to act with honesty and transparency in all their dealings with clients, partners, and colleagues.

One of the core values of the Mahindra Group, an Indian multinational conglomerate, is "accepting no limits." This value emphasizes the company's drive to achieve excellence and innovation.

BHAG (Big Hairy Audacious Goal): This is a long-term, ambitious goal that an organization sets for itself. It should be challenging but achievable, and it should inspire the company's employees and stakeholders to work toward it.

Example: The BHAG of Hindustan Unilever Limited (HUL), an Indian consumer goods company, is to "double the size of its business while reducing its environmental footprint and increasing its positive social impact."

The BHAG of HDFC Bank, an Indian banking and financial services company, is "to be the most trusted financial partner for millions of people in India."

Vision: This is a statement that describes what an organization aspires to be in the future. It is a vivid, inspiring picture of the company's desired future state.

Example: The vision of Reliance Industries, an Indian conglomerate, is "to be a leading provider of innovative and sustainable solutions in the fields of energy and materials."

The vision of Tata Consultancy Services (TCS), an Indian multinational information technology services and consulting company, is "to be a global leader in the IT services industry."

Mission: This is a statement that defines an organization's purpose and what it does on a day-to-day basis to achieve its goals.

Example: The mission of Dr. Reddy's Laboratories, an Indian pharmaceutical company, is "to provide affordable and innovative medicines to improve the health and well-being of people around the world."

The mission of Bajaj Auto, an Indian multinational two-wheeler and three-wheeler manufacturing company is "to deliver superior value to customers, shareholders, employees, and society at large by manufacturing and selling high-quality motorcycles, three-wheelers, and quadricycles."

In summary, these concepts are all critical for any organization to succeed. The core purpose and values guide the organization's behavior and decision-making, while the BHAG, vision, and mission provide direction and inspiration for the company's growth and development.