Family Business
Genogram
Map family dynamics alongside business ownership and management. The essential tool for succession planning, governance design, and family enterprise consulting. Used by INSEAD, Kellogg, and leading business schools.
Why Family Businesses Need Genograms
The family system IS the business system
Succession Is Never Just Business
The eldest son expects to be CEO, but his younger sister is more qualified. The founder can't separate his identity from the company. These aren't business problems—they're family problems.
Family businesses fail not because of market conditions, but because family dynamics derail succession. You need to see both systems.
Ownership ≠ Management ≠ Family
Uncle owns 30% but hasn't worked there in 20 years. A cousin is COO but owns nothing. Grandma controls the trust. Who actually has power?
The 'Three Circle Model' (Family, Ownership, Management) is only useful if you can visualize who's in which circle.
Emotional Triangles Become Board Conflicts
The father triangulates between his two sons. One is the 'golden child' (gets promoted), one is the 'scapegoat' (gets sidelined). This family pattern is now playing out in the boardroom.
Business consultants see symptoms. Family therapists see patterns. You need both views to solve succession.
Generational Transitions Are High-Stakes
70% of family businesses fail to transition to the second generation. 90% fail by the third. The patterns that predict failure are visible in the family system—if you know how to look.
A genogram can reveal succession risks that balance sheets and org charts never show.
Map Family AND Business
Overlay ownership and management on family relationships
Ownership Overlay
Map who owns what percentage of the business. Visualize voting shares, non-voting shares, and trust structures.
Management Roles
Show who holds which positions: CEO, board seats, advisory roles. Separate family role from business role.
Emotional Relationships
Map close, conflicted, and cutoff relationships. See how family dynamics will affect business decisions.
Succession Mapping
Identify potential successors, their readiness, and family reactions. Plan transitions before they become crises.
Common Applications
Where family business genograms make the difference
Succession Planning
Visualize all potential successors, their qualifications, family relationships, and potential conflicts before making transition decisions.
Governance Design
Design family councils, shareholder agreements, and board structures by understanding who has power and who has influence.
Conflict Resolution
When siblings fight over the business, a genogram reveals whether it's really about the business—or decades-old family patterns.
Family Office Strategy
For multi-generational wealth, map how family dynamics will affect investment decisions, philanthropy, and wealth transfer.
The Succession Challenge
Why family businesses need more than business advice
70%
of family businesses fail to transition to the second generation
90%
fail to make it to the third generation
3%
survive to the fourth generation and beyond
#1
cause of failure: family conflict, not business issues
These statistics come from research by the Family Business Institute and studies at leading business schools. The primary cause of failure isn't market competition, technological disruption, or poor financial management—it's family conflict.
Unresolved sibling rivalries become boardroom battles. Favoritism in childhood becomes inequitable ownership distribution. A parent's difficulty letting go becomes a succession crisis. These are family systems issues that require family systems tools—like the genogram.
The most successful family business consultants integrate business strategy with family therapy approaches. The genogram is where these two disciplines meet: a visual tool that makes invisible family dynamics visible and discussable.
Business Schools Using Genograms
Family enterprise programs worldwide
INSEAD
Wendel International Centre for Family Enterprise
Singapore/France
Kellogg School of Management
Center for Family Enterprises
USA
IMD Business School
Global Family Business Center
Switzerland
Harvard Business School
Family Business Executive Education
USA
IE Business School
Family Business Management
Spain
London Business School
Institute for Family Business
UK
Create Your Family Business Genogram
Map the family structure
Start with the founding generation and build forward. Include all family members, even those not involved in the business.
Add emotional relationships
Mark close, conflicted, and cutoff relationships. These patterns will predict business conflicts.
Overlay ownership
Add notes showing who owns what percentage. Include trusts, holding companies, and voting arrangements.
Add management roles
Indicate who holds which positions: CEO, board members, employees, advisors. Show formal and informal power.
Identify succession risks
Now you can see it all: family conflicts that will derail transitions, ownership disputes, and readiness gaps.
FAQs for Family Business
How is a family business genogram different from a regular genogram?
A family business genogram overlays business information (ownership percentages, management roles, board seats) on top of the traditional family relationship map. This allows you to see both family dynamics and business structure simultaneously—essential for understanding succession and governance issues.
Can I show ownership percentages?
Yes. You can add custom notes to each person showing their ownership stake, type of shares (voting vs. non-voting), and any trust arrangements. This creates a visual 'ownership map' alongside the family tree.
Is this used in MBA programs?
Yes. Family business courses at INSEAD, Kellogg, IMD, and other top business schools use genograms to teach succession planning and family governance. It's a standard tool in family enterprise consulting.
Can it show the Three Circle Model?
While GenogramAI doesn't draw literal Venn diagrams, you can use notes and relationship markers to indicate whether each person is in Family, Ownership, Management, or any combination. The genogram format often reveals more than the simplified Three Circle diagram.
How do I map family conflicts that affect the business?
Use emotional relationship overlays to show which family members have close, conflicted, distant, or cutoff relationships. When you see a conflict line between two board members who are also siblings, the business implications become clear.
Should I include in-laws and spouses?
Absolutely. In-laws often become key players—or sources of conflict—in family businesses. A son-in-law who runs operations, a daughter-in-law excluded from decisions. Map them with their relationship to the family and any business roles they hold.
How do I show trusts and holding companies?
Use notes to indicate when ownership is held through trusts or holding companies rather than directly. Note who controls the trust (trustees) vs. who benefits (beneficiaries). This distinction is critical for understanding real power dynamics.
What about non-family executives?
Include key non-family managers in your genogram, especially those who might be succession candidates or who have significant influence. Mark them clearly as non-family and note their relationship to family members (mentor, protégé, ally, rival).
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