Posted By The Practitioner,
Tuesday, June 26, 2012
Updated: Tuesday, June 26, 2012
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June 27, 2012
Coloring Outside the Lines...And Outside the Circles!
Known as the "Age of Reptiles,”
the Mesozoic geological era—lasting from 250 million years ago to 65
million years ago, saw pterodactyls, iguanodons and other scaly creatures meet their
extinction--theoretically because of their inability to adapt to vacillating
climate activities. Yep: without a doubt, adaptability is the key to survival. This
principle doesn’t only apply to living organisms--it also pertains to ideas, protocols
and philosophies--including the multidisciplinary approach to managing family
enterprise clients. Just ask Harry McCabe, author of today’s guest article "Simple Enough? Implementing a Smooth Client
Relation to Reduce Friction.”
In this piece, Harry revisits the iconic ‘Three-Circle Family Business System Model”—a
concept originated in 1982, by Renato Tagiuri and John A. Davis. The ideals embedded
in this philosophy made a huge impact on the field by identifying a model for practitioners
to advise clients on a multitude of fronts—through their families, their ownerships,
their businesses as stand-alone entities, their psychological needs. Sure—nowadays,
a holistic approach to advising clients may seem obvious. But thirty years ago,
the article from FFI’s own Family
Business Review was cutting edge.
But as The Practitioner mentioned, all
things must adapt to survive—even the Three Circle Model,
which is why McCabe endorses
expanding the number of circles in the paradigm, as you’ll see. But when you
think about it, in essence, that’s what we as practitioners ALL must do, by folding
in our own experiences with clients. This means taking an inventory of each family
and its business to understand the dynamics they bring to the table. Find out
what makes each client different, then color outside the lines, er…circles!
About the Contributor:
Harry M. McCabe began his professional
career in his family’s pension consulting and administration services company,
where he learned the private business owners’ process of growing businesses and
preparing them for ownership transfer. He has a Bachelor of Business
Administration from St. Norbert College and a Masters of Business
Administration from the University of Utah. He is the author of Pass it On: The Entrepreneur's
Succession Playbook. Harry is an FFI Fellow with
certificates in Family Wealth Advising. He is co-founder of the FFI Midwest
Chapter. Harry can be reached at: email@example.com.
Stay tuned next week, when
we bring you an original Guest Blog entry from FFI’s president Judy Green.
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Yours in Practice,
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family business advising
Family Business Review
three circle model