Three-Circle Model: Mapping of stakeholder perspectives

3. Three-Circle Model: Mapping of stakeholder perspectives Exercise: Grab a pen and paper, and based on the figure to the right draw your own business stakeholder map. Fill each circle with the names of the stakeholders in your own business.

3 OWNERS WHO WORK IN THE BUSINESS BUT WHO ARE NOT FAMILY MEMBERS.

1 EXTERNAL INVESTORS WHO OWN PART OF THE BUSINESS BUT WHO DO NOT WORK IN IT AND ARE NOT MEMBERS OF THE FAMILY.

2 NON-FAMILY MANAGEMENT AND EMPLOYEES.

3

Ownership 1

2

7 4

6

4 FAMILY MEMBERS WHO OWN SHARES IN THE BUSINESS BUT WHO ARE NOT EMPLOYEES.

5

Family

Business

6 FAMILY MEMBERS WHO WORK IN THE BUSINESS BUT WHO DO NOT OWN SHARES. 7 INHABITING ALL THREE CIRCLES ARE OWNERS WHO ARE ALSO FAMILY MEMBERS AND WHO WORK IN THE BUSINESS.

5 FAMILY MEMBERS WHO ARE NOT ACTIVELY INVOLVED IN THE BUSINESS EITHER AS EMPLOYEES OR OWNERS.

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3. Three-Circle Model: Mapping of stakeholder perspectives Look at your stakeholder map and reflect on the following typical concerns that individuals belonging to a segment might have: 1.

External investors who own a part of the business

3.

●

Am I getting adequate information about my investment?

Will I get an adequate return on my investment?

Will I have an opportunity to exit?

Family members who are not actively involved in the business, either as employee or owner (segment 5 in figure 2):

● ●

Will the business hurt our family relationships?

Will I ever have a chance to work in the business or own shares?

Does our business help or hurt our reputation in our community?

Can I leverage my connection to the business to help me achieve my goals?

● ● 2. ● ● ● ●

Non-family members who work in the business and don’t own shares (segment 2 in figure 2): Can I achieve my career goals here?

Will nepotism block my path?

Will I be compensated fairly for my work?

Will the workplace environment be more challenging because this is a family business?

● ●

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3. Three-Circle Model: Mapping of stakeholder perspectives CATEGORY

STAKEHOLDER

POSSIBLE CONCERNS FROM STAKEHOLDERS’ PERSPECTIVE

1

Ownership: External Investors.

Example: Venture capital firm X

Example: They want to be sure that they did a good investment.

2

Business: Non-family management and employees.

3

Owners who work in the business but are not part of the family.

4

Family who own shares but are not employees in the business.

5

Family: Family members who are not involved in the business.

6

Family members who work in the business but don’t own shares.

7

Owners who are part of the family and actively work in the business.

Exercise: Now use this table to explore the perspective of every stakeholder.

Think about specific concerns they might have regarding the business.

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