Bernhard Schieber

Three-Circle Model of the Family Business System: Give Each Claim Its Proper Forum

Communication · Executive Insight Brief · 518

Dinner is not a board meeting

The Three-Circle Model separates kinship, ownership rights, and operating responsibility before family-enterprise disputes become personal conflicts

Premise

An argument between relatives over dividends may contain three different questions. One concerns family fairness, another return on invested equity, and a third the cash needed to run the company. Treating these as one interpersonal disagreement obscures the source of each claim.

Succession, capital allocation, and executive appointments require clarity about whose role is speaking and which body is authorized to decide. The Three-Circle Model of the Family Business System makes that authority problem visible before a conversation is mistaken for a decision. Without the separation, a family member may interpret an ordinary capital-allocation disagreement as a rejection of kinship loyalty.

Three-Circle Model of the Family Business System — Dinner is not a board meeting. Executive Insight Brief 518 by Bernhard Schieber.

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