The Three-Circle Model shows three interdependent and overlapping groups: family, ownership and business. An individual in a family business system occupies one of the seven sectors that are formed by these overlapping circles. An owner (partner or shareholder) will sit within the top circle. Family members will occupy the left-hand circle, and employees of the family company the right-hand circle. If you fill two roles, you will be in an overlapping sector, sitting within two circles at one time. If you are a family member who works in the business but has no ownership stake, you’re in the bottom-center sector. If you are a family member who owns a stake in the business but is not employed in the business, you’re in the left center sector. If you are a family member who works in the business and is an owner, then you’ll sit in the center of the three overlapping circles. Non-family members who are owners or employees (or both) are represented in the three right-hand sectors.
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Family Business Labs
"The Successor's Paradox"
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Your post is very descriptive, providing a limited overview of the Three-Circle Model and explaining how individuals fit into the model based on their roles within a family business system. You are also myopic and normative, as you simply present information without making value judgments or advocating for a particular approach. You are analytical in that you break down the model into its component parts and explain how they interact. However, your argument does not appear to be particularly synthesizing or value-adding as it simply restates information that is readily available elsewhere.
You could benefit from using real examples, evidence, and credible published, peer-reviewed citations to support your claims. For example, the post could cite studies that demonstrate the effectiveness of the Three-Circle Model in managing family businesses. Without such evidence, it is difficult to assess the validity of the model or the claims made in the post.