BIZ TIPS - Three Circle Model - WCAX.COM Local Vermont News, Weather and Sports-

BIZ TIPS - Three Circle Model

Family business tips series - The Family Business 3 – Circle model

Why is understanding the 3 circles of family business important?

        The three circles are connected yet also at times independent of each other.

        It provides a baseline for understanding complimentary and conflicting perspectives in a family owned business

        Provides role clarity for employees in the business as well as family members not associated with the business.

How do families apply the 3 circle model?

        Establish internal policies that stipulate people attached to roles and how each circle will govern or meet.

    Provide for governance in each circle

            Family - Family council

            Business – Management team, Board of Advisors

            Ownership – Board of Directors, shareholders meeting

What does it look like in action?

    Separate meetings with specific agendas

            Family – mom & dad's plans, estate planning

            Business – management succession, which child for which role

            Ownership - Open communication about owners intent to exit and how

Employees are well informed on future plans, relives transition anxiety

What if you are not a family business?

    Many of the same principals apply to any private ownership

    What is link between family and business

    Are there successors in place from inside the family or not?

    Even corporate businesses need to address role clarity and succession

Visit this link for more info: uvm.edu/familybusiness

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