The 'Greatest Wealth Transfer in History' is in full swing globally, leaving Baby Boomers and Generation X facing perhaps the greatest communication challenge of their lives. At best, generational transfers can prompt deep, valuable conversations about how Gen X - and subsequently Millennials and Gen Z - will carry the ownership forward. At worst, these transitions can generate unease and reservation among the older generation, and performance anxiety and reluctance among the younger.
There is a lot at stake, and the difficult conversations are certainly not made easier by the major differences in the generations’ communication styles and in what has shaped their views on ownership, finances, family bonds, work and career, and the very definition of success. In the following, we take a closer look – in broad terms – at which messages can easily get lost in translation.
Baby Boomers (1945–1965)
Boomers were influenced by their parents—the Silent Generation (1925–1945)—who struggled through wars and recession with steadfast belief in God, King, and Country. They value hard work, visibility in the workplace, and an effective, authoritative leadership and communication style. They derive recognition, identity, and satisfaction from their professional lives and achievements.
The Boomer generation has excelled at building successful businesses and generating wealth for future generations. They have done so through hard work, innovation, and determination during a time of new technological and educational global opportunities and general prosperity. As they typically derive a strong sense of self from their careers, they need their efforts to be acknowledged and appreciated. At the same time, having been raised by a frugal and crisis-struck generation, they are often uncomfortable with extravagance and ostentatious spending or behaviour.
In family ownership, communication can become strained between Baby Boomers and Gen Xers because they have different views on what constitutes hard work, and on how to prioritise and plan their family life.
The Communication Challenge
Generation X (1965–1978)
As descendants of two hard-working generations, Gen X often holds different views on what defines quality of life. Sometimes referred to as the ‘latchkey generation’, many let themselves in after school and managed on their own while both parents worked. Gen Xers are job-hopping, sabbatical-taking, quality-of-life-seeking, curling-style parents. They are innovative, diversity-focused, and entrepreneurial. They communicate differently and have an open attitude towards alternative ways of working, living, and organising family life.
As the first tech-generation, Gen Xers grew up with the possibility of working from home, flexible working hours, and early school pick-ups (by both mothers and fathers).
The Communication Challenge
Three Practical Approaches to Improve Communication in Family Ownership
Aligning expectations, setting shared goals, strategies, and values for ownership, and focusing on family cohesion are all essential tools for improving communication between generations within family ownership. Once the family has gathered and agreed upon fundamental attitudes—what to expect of one another, how to be a good ambassador, and when one is considered successful as an owner—many miscommunications can be eliminated.
However, there are also several quick fixes that can be applied immediately, regardless of which generation one belongs to (or identifies with):
Try, for example, to:
- Practise a form of active listening, where you rewind and check whether the message you received was actually intended as you understood it. This can be enlightening for both parties, especially when presented in a kind and non-confrontational way. E.g. “What I hear you saying is that I don’t work enough. Is that what you mean to tell me?”
- Practise the old rule that ‘silence is golden’: Play your message through in your head before saying it out loud and carefully consider how it will land. It’s a bit like playing chess with yourself—jump to the other side of the board and consider how you would respond to the move. If you’re in doubt whether your message will do more harm than good, seriously consider whether it needs to be said at all.
- Set the scene: If something truly needs to be said, set the scene properly. Call a meeting, go for a walk, or enjoy a good lunch together, and present your arguments and views in a reasoned and friendly manner. It is considerate to give the recipient a chance to prepare for an important conversation, rather than delivering a truth bomb on the way out the door or at the midsummer party.
If you wish to improve communication within your family ownership—perhaps in connection with a generational transition—please feel free to contact us to learn more about additional tools that can be used.
