Is Your Family Business a 3 Ring Circle?

Leading and growing any business is challenging.  Imagine the extra baggage a family 

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!