Three-Circle Model of Family Business
Also known as: Family / Ownership / Business System
A family enterprise is three overlapping systems — family, ownership, and business — and most conflict lives in the overlaps.
Maps every stakeholder into one of seven sectors formed by three intersecting circles (family, ownership, business), clarifying roles, interests, and the predictable tensions that arise when someone sits in multiple circles at once. The base model for most family-succession work.
Core concepts
Three CirclesSeven SectorsRole Conflict
Best when
- Family, owners, and managers keep talking past each other
- Mapping who has standing in a succession
Watch-outs
- Descriptive; doesn't resolve disputes by itself