The family business is a far more complex system than the nonfamily system. To understand it, I will use the classical three-circle model of professors Tagiuri and Davis, pioneers in the study of family businesses. In the model, we can observe a first system that is the family and a second system that is the business. At times, there is tension between them because they usually have different objectives and bringing them together sometimes generates conflict in the family system. Ties between people are usually emotional, while in businesses ties are of a contractual or rational nature. The family system seeks to conserve values and is more static, while in companies the system is more dynamic and innovative. Family businesses also have many positive elements and can be an excellent vehicle for generating value, a shared space and project for the family, a way of assuring the legacy and the values of a family over time. However, a common issue, if care is not taken of the systems, is that a confusion of errors is generated. Am I talking with my father or with my boss? Should I behave like a son or an owner in the company? Should strategic topics of the business be discussed over lunch at home or should discussions take place in the company’s meeting rooms? Sometimes even employees hear about family issues and, on top of that, we need to add to these two circles a third circle for ownership. The three-circle model helps us to identify our current role and consider the role we want to play in the future. On the graph, you can see in number one family members who do not work in the business, including the in-laws. Do they influence the company’s decision making? Many people would say that they do. Number two shows nonfamily managers or employees. Number three, nonfamily owners or shareholders. Number four, family shareholders who do not work in the business. Five, family members who work in the business but are not owners. Six, nonfamily employees who are owners and, finally number seven, family members who are owners and work in the business. The role of the founder or other family members that evolves to form part of the three systems. Where are you? Where do you want to go? A second system that is very useful for diagnosing and identifying the stage of the family business and ownership is Gersick’s development model, which contains three dimensions: the business, ownership and the family. In the business, we can observe the business lifecycle, whether it is a startup, in expansion, in formalization and if it has reached its level of maturity in the ownership dimension. The family business usually has just one owner or controlling owner, then becomes a partnership of siblings and, afterwards, third generation or cousin consortium, and, finally, in the family dimension, it could be in its first stage, a young family business, then the children grow up and enter the business. Next, the generations work together and, finally, they come to passing the baton. Right now, you can diagnose the development stage of your family business and, for example, as can be seen in the graph, identify whether the business is in the expansion stage with a controlling owner, but joint work between parents and children already exists and serves to identify the type of specific actions that should be implemented for the survival of the company and the family. Finally, I am going to tell you a real-life story – the names of the business and the family are fictitious and for this I will use a tool called a genogram. The history of the Gaxiola family from the company Flexicom, which prints labels, with 40 years in the market and 15 million dollars invoiced annually. The company was founded by Don Jesús and Doña Amalia. The men are represented by a square and the women by a circle. Don Jesús has already passed away, which is why there is an X in the square. Don Jesús and Doña Amalia had five children: Jaime, 53, works in the sales area and holds 10% of the stock. He is married to Rocío who is in charge of the company’s food services. The second daughter, Lourdes, 51, is the CAO and doesn’t have any shares in the business. She was in a common law marriage, hence, the dotted line, but, after five years, her partner sadly passed away. Josefina, 49, the other daughter, does not work in the business or have shares. She is married to Pedro. Carlos, 47, also works in sales, owns 10% of the shares and is divorced from Verónica. The next son, Jorge, 45, is the IT Director, holds 40% of the shares and is married to Nayeli. Finally, the youngest son, Omar, 40, is the company’s CEO, has 40% of the shares and is married to Carla who works in marketing. Now, let’s look at the third generation. As you can see, there are 12 members from 25-year-old Santi who works in the business implementing the ERP, to Natalia, 4, and Santi, Sebastián and Carlos who work in the business. We can also use the genogram to illustrate the relationships between the family members. For example, Jaime, the oldest son, has a conflictive relationship with Omar, the youngest son, while Santi has a close relationship with Omar. Observing the genogram and looking at this family business case, I would like to ask you: What risks or conflicts could be generated in the future? Some of you will undoubtedly tell me that there is a future risk in Omar and Jorge’s stock position. They own 80% of the shares and their cycles are still very small. How can they assure their future? Or you might comment that Lourdes could feel that she deserves to have shares since she is the CAO and has been working in the business for a long time. Or also that Santi is in a very uncomfortable triangle as the mediator between his father and his uncle, and he could be the natural successor in the leadership. In short, the genogram helps us to a) locate in the family situation in a snapshot; b) identify the family by generations, shares, ages and positions; c) identify the possible successors; d) diagnose the solid and conflictive relationships, or any other type; and e) anticipate future risks in the family business ecosystem. But, please, if you are going to create the genogram for your own family business, don’t show the analysis of the relationships without the support of a professional, since this can generate conflict.