Reconnecting the Family Business with Love Using EOS and the Harvard 3-Circle Model
Family businesses are complex entities, where the lines between personal relationships and business responsibilities often blur. The Harvard 3-Circle Model is a powerful tool for understanding these complexities, as it maps out the interactions between the family, the business, and ownership.
When combined with the Entrepreneurial Operating System (EOS), these models can help you not only run a successful business but also put the love back into your family dynamics.
Understanding the Harvard 3-Circle Model
The Harvard 3-Circle Model visualises the three key elements in a family business:
- Family: The personal relationships and dynamics among family members.
- Business: The operational side, including the company’s goals, strategies, and day-to-day activities.
- Ownership: The financial and decision-making control, often a source of tension in family businesses.
Each of these circles intersects, and it’s in these intersections where most family business challenges arise. Balancing these elements is essential to ensure both the business thrives and family relationships remain strong.
How EOS Complements the 3-Circle Model
EOS is a practical framework designed to bring clarity, structure, and accountability to your business.
When applied alongside the 3-Circle Model, EOS can help you navigate the complexities of a family business by reinforcing the connections between these three areas.
Aligning Vision Across All Circles: EOS’s Vision/Traction Organizer™ (V/TO) helps you align your family’s vision with business goals and ownership objectives. This unified vision ensures that every family member, regardless of their role, understands and supports the direction of the business.
Clarity in Roles and Boundaries: The Accountability Chart™ in EOS is crucial for defining clear roles and responsibilities within the business. This clarity helps prevent overlap between the family and business circles, reducing conflicts that stem from unclear expectations or power struggles.
Facilitating Open Communication: EOS encourages regular, structured meetings, such as the Level 10 Meeting™, which can be adapted to include discussions about the family and ownership circles. These meetings foster open communication, allowing issues to be addressed before they escalate.
Resolving Conflicts Holistically: Using the IDS (Identify, Discuss, Solve) process, conflicts can be addressed by considering all three circles. For example, a business decision may have personal implications for family members who are also owners. By approaching solutions with all three perspectives in mind, EOS ensures that decisions strengthen rather than strain family ties.
Practical Steps to Use EOS and the 3-Circle Model
- Map Your Circles: Begin by clearly mapping out the three circles—Family, Business, and Ownership—within your own business. Identify who falls into each circle and where overlaps exist.
- Create a Unified Vision: Use the V/TO to create a vision that encompasses the goals of the business, the aspirations of the family, and the needs of the owners. This shared vision acts as a compass for all decisions.
- Define Clear Roles: Develop an Accountability Chart that reflects the roles and responsibilities in the business, ensuring they align with family relationships and ownership stakes. This reduces the risk of role confusion and power struggles.
- Hold Regular Family and Business Meetings: Schedule regular meetings that address each of the circles. For example, a business strategy meeting might be followed by a family meeting where personal issues can be discussed in a safe environment.
- Address Issues Holistically: When conflicts arise, use the IDS process to consider all three circles. For example, a business decision might affect family dynamics, and understanding this can lead to more thoughtful, inclusive solutions.
- Celebrate Successes Across All Circles: Recognise and celebrate successes in each of the three circles. Whether it’s a business milestone, a personal achievement, or a successful ownership transition, acknowledging these moments reinforces the bonds that keep the family and business thriving.
Final Thoughts
- The Harvard 3-Circle Model and EOS together provide a powerful approach to managing a family business.
- By addressing the intersections between Family, Business, and Ownership, and applying the structure and clarity of EOS, you can ensure that your business doesn’t just survive but thrives—while keeping the love alive in your family.
- It’s about creating a harmonious balance where the success of the business fuels family relationships and vice versa.
For more information on how EOS can benefit your family business, book a call with Debra below.
Written by Debra Chantry-Taylor, FBA Accredited Family Business Advisor, Certified EOS Implementer & Founder of Business Action.
Business Action is focused on helping Entrepreneurs lead better lives, through creating a better business. We have a small team of accredited family business advisors, EOS Implementers & Leadership coaches, as well as access to a huge range of advisors through our Trusted Partners Network.
