n Farmer’s Weekly - The three-circle model of the family business - managing for profit

Volume 2018 Number 18026
  • ISSN : 0041-848X



Professors Renato Tagiuri and John Davis created the highly regarded threecircle model of the family business in the 1990s. The top circle (see diagram) is the family who controls the business. The left circle is the owners, those who have shares in the business. The right circle represents the people who manage the business. Each group has its own clear, different and often competing interests. The family wants peace and harmony. The owners want fair returns and regular dividends. The directors and managers want good salaries and freedom to direct, manage and grow the business.

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