The Four-Room Model for Family Businesses

The Four-Room Model offers family businesses a simple yet powerful framework for making better decisions. Using the metaphor of a home, it defines four distinct spaces—the Owner Room, Board Room, Management Room, and Family Room—each with its own rules for participation, decisions, and processes. Co-developed by Banyan co-founder Rob Lachenauer, co-author of the Harvard Business Review Family Business Handbook, this model helps families set clear boundaries, reduce conflict, and improve overall decision quality.