Das Drei-Kreis-Modell

The publication WIFU_kompakt 35: Das Drei-Kreis-Modell (2023) by the WIFU Foundation provides a systematic overview of the Three-Circle Model, established in both research and practice, for analysing family businesses and business families. The starting point is the differentiation and simultaneous entanglement of the three social systems of family, business and ownership, each of which follows its own logic while developing co-evolutionarily and mutually influencing one another.

The publication demonstrates how the model historically evolved from a two-circle understanding of family and business, and why adding the ownership dimension became necessary, particularly as generations succeed one another and wealth grows. The three-circle model is not understood as a rigid depiction, but rather as an analytical framework that can be enriched with various contents and role models. Using typical roles of family members, non-family employees and shareholders, potential role conflicts and misunderstandings are made comprehensible.

Furthermore, it is explained how the model contributes to explaining differing developmental trajectories of seemingly similar family businesses. A special focus is placed on the concept of boundary management between the three systems, which helps to avoid inappropriate transfers of behavioural logics and to defuse conflicts within the family, the circle of shareholders and the company. The publication is based on the work of Tagiuri & Davis (1982) and Gersick et al. (1997) and translates their central insights into a practical perspective for entrepreneurial families.