The Three-Circle Model (by Ivan Lansberg)

The Three-Circle Model, developed by Ivan Lansberg, illustrates the dynamics of family businesses by representing three interlinked circles: Family, Business, and Ownership. Each circle has its own goals and characteristics. The family’s circle includes relationships and values, the business focuses on operations and profits, and the ownership circle pertains to financial interests and responsibilities. Understanding how these circles overlap helps clarify roles, resolve conflicts, and promote harmony among family members, business operations, and ownership responsibilities, ensuring the business thrives while family relationships remain strong.