Spark Alignment and Engagement Through Generational Conversations

November 21, 2023 by Interchange Capital Partners

By Ahmie Baum, CFP® CFBA

Running a family-owned business means navigating complex relationships, evolving roles, and generational transitions. One of the biggest challenges is balancing the experience and wisdom of the founding generation with the fresh perspectives of the next. Differences in risk tolerance, leadership styles, and decision-making approaches can lead to misunderstandings, but they don’t have to create roadblocks.

At Interchange Capital Partners, we specialize in helping family business owners navigate the interplay between individual, family, business, and ownership dynamics. As a business consulting firm, we’ve seen firsthand how generational conversations impact long-term business success. Fostering alignment between generations isn’t about choosing one approach over the other—it’s about building a framework for communication, engagement, and shared decision-making.

Here’s how family businesses can bridge generational gaps and strengthen their foundation for the future.

Acknowledging the Differences

No matter how many times you tell the story of the sacrifices you’ve made or the failures that contributed to your success, there will always be an element the next generation doesn’t fully understand because they didn’t live through it. While they bring youthful energy and a new dynamic to the company, it may often feel like they’re dismissive of the risks, scarcity, and contributions from earlier generations. The founding members typically didn’t have as much support behind them, which pushed them to build skills like self-reliance and unshakeable confidence.

In comparison, the newer generation has your support and guidance to rely on. While they may not have the lived experience of the first or even second generation, they still have their own vision, ideas, and autonomy. As such, they need the opportunity to explore, make mistakes, and even fail with a bit of support. 

Failing With Support

Building a successful family-owned business is no small feat. In the initial stages of creating it, you likely encountered mistakes and failures that shaped the way you do business today. However, at the time, you were probably concerned that you might lose it all. Instead, you could allow your up-and-coming generation to fail and learn irreplaceable lessons in the process.

That’s how we decided to approach the next generation at Interchange Capital Partners. We said, “You’re going to have to go out there and build something new, with our support. In the process of building something new, you get the experience of failure, except if you fail, it’s not like your bills won’t get paid. You can fail with support.” 

Instead of hammering the idea of “You’re only successful because the first generation was successful,” it’s helpful to let them earn success in their own way by offering your guidance and support along their path.

Decision Autonomy

When considering how to include the next generation in the family business the opposing thought is typically, “They don’t know. They haven’t been through it,” which dismisses the second and third generation’s perspective and could shut down their opportunity to learn. An instrumental part of creating a lasting family business is to allow the new generation to build experience by identifying issues, creating solutions, and locating opportunities for themselves. 

The common pushback we see inside family-owned businesses sounds like “The younger generation hasn’t proved themselves” or “They’re not ready for the responsibility.” However, if you haven’t allowed them to prove themselves, how would you know what they’re capable of? When the older generation won’t release the reins and the younger generation is chomping at the bit for the chance to prove themselves, it brings the generational conversation to an impasse.

When we talk to family businesses, we often ask to hear from the next generation. When you have a pulse on their perspective and the opportunities they’re recognizing, it helps phase them into the conversation and eventually into making their own decisions. Choosing to bypass including them in the conversation could mean missed opportunities for the business.

Continuing the Conversation

Generational alignment doesn’t happen overnight. It requires open conversations, a willingness to embrace new ideas, and a structured approach to leadership transitions. The most successful family businesses create pathways for the next generation to gain experience, contribute meaningfully, and grow into leadership roles—without sidelining the values and insights of those who came before them.

At Interchange Capital Partners, we work closely with family-owned businesses to design tailored strategies that support generational engagement, succession planning, and long-term business growth. If you’re looking for a trusted partner to help facilitate these conversations and develop a roadmap for the future, let’s start the discussion. Contact us at team@interchangecp.com or call 412-307-4230 to schedule an introductory appointment.

About Ahmie

Ahmie E. Baum is the founder and executive chairman of the board of Interchange Capital Partners, a premier family business advisory firm committed to empowering family-owned businesses. With over 45 years of experience, Ahmie specializes in guiding families to safeguard and grow their wealth through our strategic Clarity Foundation™.

Passionate about helping multi-generational family businesses, Ahmie excels at navigating their unique challenges, allowing them to focus on what they do best. One of his greatest joys is getting to know the firm’s clients personally, listening to their stories, understanding their journeys, and identifying and solving for the challenges that keep them up at night.

Ahmie collaborates closely with clients to help design comprehensive plans that address their obstacles, seize opportunities, and leverage their strengths. As he manages each family's complex and unique situations, Ahmie takes on their challenges as his own, fully committed to helping them work toward achieving their goals. His mission is to guide clients through their uncertainties, enabling them to move beyond their fears and confidently pursue their dreams.

Ahmie began his career at EF Hutton in 1979, eventually rising to the position of Senior Vice President. In 1993, he transitioned to Paine Webber, later acquired by UBS, where he spent nearly 27 years. During this time, he earned an Executive Certificate in Financial Planning from Duquesne University and obtained his CFP® designation. He holds a Certificate in Family Business Advising (CFBA) from the Family Firm Institute. He has been actively involved with Strategic Coach, an internationally renowned entrepreneurial coaching program, for over 20 years. Additionally, he has earned certificates from The Growth Institute, specializing in business growth, scaling, and cash management.

When he’s not working, Ahmie enjoys spending time with his wife, Sara, their three children, and three grandchildren. He recognizes that health is wealth, so he has committed to daily yoga, meditation, and plant-based eating. His other hobbies include woodturning, golf, reading, listening to music, and biking. He is active in his community, has served as the Foundation Chair of the Jewish Federation Community Foundation of Greater Pittsburgh, and supports various philanthropic endeavors. To learn more about Ahmie, connect with him on LinkedIn. 

Interchange Capital Partners, LLC, (“INTERCHANGE CAPITAL PARTNERS”) is a registered investment adviser with the Securities and Exchange Commission providing investment advisory and financial planning services. Any reference to the terms “registered investment adviser” or “registered” does not imply that INTERCHANGE CAPITAL PARTNERS or any person associated with INTERCHANGE CAPITAL PARTNERS has achieved a certain level of skill or training. A copy of INTERCHANGE CAPITAL PARTNERS’s current written disclosure (ADV 2A Firm Brochure) discussing our advisory services and fees is available for your review upon request. INTERCHANGE CAPITAL PARTNERS, in addition to providing investment advisory and financial planning services, provides business consulting services. In connection with its business consulting services, INTERCHANGE CAPITAL PARTNERS does not provide tax or legal advice. INTERCHANGE CAPITAL PARTNERS does not provide investment advice prior to entering into an investment management agreement.

This material is proprietary and may not be reproduced, transferred, modified, or distributed in any form without prior written permission from INTERCHANGE CAPITAL PARTNERS. INTERCHANGE CAPITAL PARTNERS reserves the right, at any time and without notice, to amend, or cease publication of the information contained herein. Certain of the information contained herein has been obtained from third-party sources and has not been independently verified. It is made available on an “as is” basis without warranty. Any recommendations, projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events that will occur.