Family business is complicated but is is beneficial

 As a fifth-generation family business owner, I've been contemplating how we, as family business owners, should perceive our businesses and families.

The Three-Circle Model of the Family Business System, developed at Harvard Business School by Professors Renato Tagiuri and John A. Davis in the 1970s, offers a simple yet beneficial framework to understand the complexity of family businesses. 



Typically, non-family-owned businesses only need to consider two circles—ownership and business. However, this model illustrates that family businesses are at least three times more complex than non-family businesses. If multiple owners and families are involved, the complexity increases further.

One potential solution is to reduce the number of family members directly related to the business or ownership—a challenging but often necessary step.

To focus on the business itself, these three circles need to share the same goal that benefits each one. Managing a family business is no easy task, but when done properly, it can create immense value for society by adopting a long-term strategy and mission-oriented approach.

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