The three-circle model is a framework to have a better understanding of a family business structure from the three different perspective of family circle, ownerships circle and management circle. As well as the different task and assigned role that each of the family members can have within the company
1. The blue circle is the family circle; which represent the family members which work within the family business but each have a different roles depending on their relationship with the business. There are family members who doesn't work directly for the company but are part of the business and family employees who are part of the family business but simply as an employees.
2. The ownership circle is the structure of the family business and who owns the business . there could be family business who doesn't work for the business but owns share within the business and family owners employees who are family business who work and owners share within the business and finally non family owners.
3. The business/ managements of the family is the last circle you can observe in the image below.Which can be non family employees and doesn't own any shares in the business.
To apply the Three Circle Model to a real family business, it is important to consider each circle and how they interact. Here are some steps to help:
1. Assess the Family Circle
2. Clarify Ownership Structures
3. Define Management Responsibilities
4. Develop a Communication Plan
Thank you. Your post provides a clear and concise explanation of the Three Circle Model, which meets the criteria for relevance and clarity. It is primarily descriptive, providing an overview of the model and the different circles and roles involved. The post does not offer any specific analysis or synthesis of the information, nor does it provide any original insights or ideas.
In terms of value-adding, the post provides a useful introduction to the Three Circle Model and its application to family businesses. However, it does not engage other forum members or encourage discussion, and it does not show receptiveness to other perspectives.
One area of concern is the lack of specific examples or citations to support the information presented. While the Three Circle Model is a well-established framework in the field of family enterprise, providing specific examples or citing credible sources could help to establish the credibility of the information presented.
Overall, the post meets the criteria for relevance and clarity but could benefit from more analysis and synthesis, as well as the use of specific examples and credible citations to support the information presented. It also could engage other members of the forum and show more receptiveness to other perspectives to add value to the community.