Communication is the exchange of verbal or non-verbal information between two or more people. It is an integral part of our existence, with early humans using cave drawings for sharing information. Even today, research repeatedly shows how crucial effective communication skills are to succeed in all endeavours.

Methods of communication have evolved over time from in person exchanges to instant interactions with people across the world through text messages, email, tweets and videos. This evolution is not without its challenges. Individuals from different generations have methods of communication that were prevalent in their time and transiting from one method to the other is not always easy, especially in families with different age groups represented.

There is no denying that the transition in communication from the days of in person message delivery to emails, text messages and now instant messaging has been beneficial.  While the younger generation may prefer instant messaging due to its speed and convenience, the older generation may favour emails for formal, reliable communication and phone calls for directness and personal connection, while in-person meetings and meetings are valued for their richness. What then is the impact of these preferences on multigenerational wealth?

First, generational wealth is difficult to attain without solid communication.
Research shows that communication is crucial for sustaining long term wealth. James E. Hughes Jr. in his book “The Cycle of the Gift: Family Wealth and Wisdom” suggested that effective communication fosters trust, enhances family relationships, and contributes to the successful transfer of assets.
However, bridging the divide between different generations can be challenging due to various experiences, traditions, and societal norms. It is important to have productive communication across generations in a family to fosters understanding, collaboration, and unity.

Effective communication strategies that a family can adopt are explained below:</

Reflect on the family vision and mission to establish a common ground
It is crucial to clearly articulate the family purpose captured in its vision and mission, to members understand their role in its achievement. This will require continuous and meaningful dialogue on the family’s focus and core values, leading over time to a strong sense of belonging as well as mutual respect, understanding, and a common future vision.

Create a preferred and transparent channel of communication
Communication within the family can be disrupted especially if the means of communication is not generally acceptable. Conducting surveys can help understand family communication preferences and establish clear communication lines. It is also essential to be very transparent and honest when communicating and taking decisions in order to build trust. This will be greatly enhanced by a clearly articulated decision-making system which every member is aware of.

Organise periodic meetings for information sharing
Regular meetings or check-ins should be done to help members understand the current state of the family, address any issues, and ensure alignment. This will strengthen the family bond and create an environment that encourages open conversations where all family members feel valued and can express their ideas and concerns without fear of judgment.

Adopt different communication channels and leverage technology
Another way to optimise communication across generations is to adjust the communication style to accommodate the various generational preferences while leveraging on technology. Making use of a mix of traditional methods (physical meetings) and modern channels (digital platforms) to ensure inclusivity with the generation representative championing this process will enhance effective communication.

Create and document a family governance structure
This can be done by engaging the services of a professional family wealth advisor. These advisors can help improve communication and address challenges by creating a solid governance structure for decision-making, conflict resolution, and wealth distribution. These structures encourage respectful communication, establish roles, and provide ongoing support.
Other advisors like financial planners, lawyers, and accountants can also provide guidance.
Offer education and training programmes for family members
Encourage family members to learn communication strategies and conflict resolution, by providing access to tailored training opportunities. In addition, facilitate intergenerational dialogue by introducing the younger generation to family meetings in good time. Encourage them to actively participate by assigning them roles and responsibilities within the family governance structure. This provides an avenue for the younger members to understand their role as they prepare for future wealth stewardship.

Practice active listening and embrace feedback
Family members should be encouraged to engage in active listening by being intentional in patiently understanding one another’s perspectives. This method lessens misconceptions and promotes empathy. This must be a deliberate effort, particularly from the older generation to the younger and vice versa, where the differences in approach tend to be a source of friction.

Make plans for philanthropy
Charitable activities are a great way to express the family’s priorities and encourage members to build strong values by helping others. Promoting conversations about impact projects andinvolving family members in choosing causes can uplift future generations and strengthen family bonds.

Supporting storytelling with the use of visuals
Using the power of storytelling with additional visual aids to engage younger family members who might be more comfortable communicating visually is another great tool to adopt for effective communication. Stories about history of the business, challenges, and triumphs can inspire and engage family members across generations.

Celebrating family achievements and appreciating diversity
Family members coming together to celebrate anniversaries, important events and accomplishments and acknowledging the importance that each generation offers to the family communicates that each member is valued and will promote a sense of cohesion and inclusivity among generations.
Effective communication is the bedrock of any strong family and bridging the communication gaps across generation requires intentional decision and commitment.
Islamiyat is an Advisor at the Meristem Family Office.