Stanley Bergman was raised in a country that stood in stark contrast to his values. Born in Port Elizabeth, South Africa, to Jewish immigrants who escaped Nazi Germany in 1936, Bergman grew up in an environment that rejected racism, yet was compelled to attend a segregated school due to apartheid. He returned each day to South End, a working-class suburb he fondly recalls as a “totally functional multicultural environment.” However, in 1963, government policy declared it a “whites-only” area, resulting in the displacement of friends and neighbors based solely on race, followed by the demolition of the community. After earning his accounting degree, he and his wife Marion, a physician who had been serving in the Black township of Soweto, departed for London, ultimately arriving in New York a year later.
At the age of 26, Bergman embraced a leadership philosophy that would define both his career and his extensive tenure as CEO of Henry Schein, where he recently stepped down after an impressive 36 years. Under his leadership, the company evolved from a regional dental supplier generating $225 million in revenue to a global distributor of dental and medical supplies boasting $13.2 billion in annual revenue and ranked No. 333 on the Fortune 500 list. This remarkable growth, he asserts, stems not only from strategic acquisitions and innovation but also from a steadfast commitment to social impact and philanthropy.
His decision to join Henry Schein as CFO in 1980 was influenced by the treatment of employees by the founding family.
“They had a belief in aligning business with social values,” Bergman noted regarding the Schein family, who established the company in 1932. “It started with Henry. He’d gone to Florida and brought back Smuckers jelly for everyone in the company. There were about 150 people. At Christmas, everybody would get a case of wine; at Thanksgiving, they’d receive a turkey. His wife, Esther, managed the books. They worked shoulder-to-shoulder with their team and engaged significantly in philanthropy.”
Following Henry’s leadership, his son Jay Schein, who assumed the CEO role in 1980, continued to build on this ethos in notable and occasionally costly ways. During the onset of the HIV/AIDS crisis in the 1980s, Jay instructed the company to publish an infection control handbook for dentists. Arriving at the 1986 American Dental Association convention with the message “Sterilize as if your life depends on it,” they faced expulsion amid accusations of exaggeration, as Bergman recalls. A few years later, when dentist David Acer was linked to infecting patients by neglecting safety protocols due to his AIDS diagnosis, Henry Schein's warning was validated, contributing to increased sales.
Henry Schein joined the Fortune 500 in 2004, debuting at No. 487, and has since been recognized on Fortune’s World’s Most Admired Companies list for 21 consecutive years. As Bergman transitions from the CEO role, he reflects on the leadership lessons he has garnered:
Choose character qualities over credentials. As an emerging CEO, Bergman received guidance from a mentor at Abbott regarding team formation: “He said, ‘Who’s your best people person?’ When I responded, ‘Jimmy the accountant, but he knows nothing about the dental business,’ he encouraged me, saying, ‘He’ll learn. He’ll build a team.’” His deal lawyer later assumed a strategic role, and a warehouse manager became head of HR. Bergman prioritized hiring based on values and interpersonal skills, confident that team members could acquire industry knowledge over time. “It’s all about the teamwork.” In dynamic environments, domain expertise can quickly evolve, unlike character and the capacity to adapt.
Diversify and delegate. “I consistently surrounded myself with individuals who held differing opinions,” Bergman stated. “Our CFO is the most conservative, while our head of strategy is the most liberal. The key to Henry Schein's success was finding common ground between these perspectives.” He emphasized that collaboration was crucial, asserting that he refrained from intervening in stalemates, encouraging team members to communicate and resolve issues, allowing them to execute plans without needing his approval if they were in agreement.
Bet on winners and partner to grow. Bergman recognized the need to globalize operations to facilitate growth, which began with simplifying offerings: “With nearly 900 dental software systems available, we opted to select one as the leader.” He expanded through joint ventures, executing numerous agreements with local market experts. “We acquired expertise through joint ventures, keeping those entrepreneurs involved while constructing platforms around them.”
Define your business around who you serve. “Success in this environment is not driven by price but by value: How do you assist practitioners in delivering superior oral care while simultaneously enhancing operational efficiency?” Bergman remarked. As customer needs evolve, so too must the products and services offered by the company. “Henry Schein is not going to remain in the same business we are today.”
Contribute to society. “We uphold a responsibility to five constituencies: our product suppliers, our customers, our team members, our investors, and our societal commitment. Aligning these five interests—while challenging—can create a blueprint for success,” he underscored. The societal commitment is essential to supporting the other four groups. A prime example is Henry Schein’s ‘Give Kids a Smile’ initiative in partnership with the ADA Foundation, launched in 2003, which mobilizes 6,500 dentists and 30,000 volunteers to provide free oral health screenings for over 300,000 children each year.
The sales team at Henry Schein meticulously organizes clinic sessions, engages with dentists, visits dental schools, and fosters relationships. They collaborate with more than 100 NGO partners globally, focusing on access, policy, innovation, sustainability, and empowering Henry Schein's workforce of over 25,000 employees. This initiative addresses a question Bergman presents to his leadership team, emphasizing the critical alignment of values with business operations.
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