This week we started the 2nd cohort of the Award in leading a Family Business Course. In the first lesson we outlined the usefulness of one of the core models in setting the right mindset for family businesses – The Three Circle Model by Taguiri and Davis
During this first session I presented the participants with a challenging video by Davis himself that speaks on the need for family members to be inline with what he calls “Blood, Sweat and Tears” to be part of the family business. He concludes that it is not only ‘Blood’ that should qualify anyone to be part of the family circle, owner circle business circle, but alignment to “sweat” meaning are family members aligned to what we are working for in the family business and to what is making us ‘sweat’. The other alignment is with regards whether they celebrate and mourn the same things as the family business – that is the ‘tears’. Davis concludes that many times it works better to have people join the family business that are aligned on the ‘sweat’ and ‘tears’ part and not necessarily from the same ‘blood’ family linage.
Many times, I find family business owners struggling with this – with accepting this reality. They strive hard in their attempt to square a circle and have ‘blood’ related family members remain in the family business, when it is clear that their ‘sweat’ and ‘tears’ are not aligned with the family business and that their involvement is creating a lot of problems, if not havoc. Ultimately the three circle models presented above, also means that for the family business to grow, there needs to be harmony between the demands of the family owners, the family business and the family itself….and sometimes for this balance and harmony to be preserved family business owners have to put aside the fact that they are parents and act as family business owners.
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