Surprisingly, the study of family business is still relatively new.
However, there are some approaches to dealing with family dynamics in business which have proven to be effective. One model that has gained acceptance, around the world, is the three-circle model which describes the family business system as three independent but overlapping subsystems: business, ownership and family.
Any individual in a business family can be placed in one of the seven sectors that is formed by the overlapping circles of the subsystems as outlined below
The three-circle model has met widespread acceptance because it is a very useful tool for understanding the cause of interpersonal conflicts, role dilemmas, priorities and boundaries in family firms. This model helps to break down the complex interactions within a family business and makes it easier to understand what is actually happening - and why.