Is Your Family Business a 3 Ring Circle?
Monday, February 15, 2016
business president has to contend with on a daily basis.
Unlike the airlines, family staff members
don’t have “carry-on bag limitations!” Every piece of baggage comes aboard -
sometimes in
steamer trunks!
Growing up in and then leading my family’s
business, taught me to hold in awe
those family firms that do it “right.” I believe it’s easier to run a Fortune 500 company
then to successfully navigate through family business generational change.
That’s because family business
leaders must wear 3 unique hats.
The first is their business hat, e.g. President, Sales Manager or Bookkeeper. The
second is their family hat, e.g.
Mom, Dad, daughter, son. And, finally, for many
family members with equity,
there is the ownership hat. To help ease the confusion, Renato
Tagiuri
and John Davis in 1982 created the “3 Circle Model of Family Business.”
It illustrates the various “hats” that a family staff member may wear during
the course of any
business day. Getting
clear on your hat helps with such challenging questions as -
“Am I
having an argument with the President who is my Dad? Am I giving a raise to my Son who
just
purchased a new house or to the Director of Operations? or Do I
resent my brother because
he’s getting lots more attention from Mom who is the
CEO? “ So ask ,“what hat am I wearing now?”,
before entering into family
business discussions. It will help
reduce the drama and make family
business fun!
And, stay tuned – next blog I’ll share how this 3 Circle Model when
coupled with the
EOS Accountability Chart creates the “magic formula” that will
make your family business and
business family thrive!
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