1936
1936 – Decentralisation Formalised
In 1936, Bergman & Beving was incorporated as a limited company when the two ageing founders restructured their partnership to ensure continuity. The first general meeting was held on 9 January 1936, with Bergman and Beving as the sole shareholders. As the product range had broadened considerably, the work was divided so that each partner was individually responsible for certain product groups and agencies, while functions such as travelling engineers, stock management, and finance were shared resources. Here lay the origin of the decentralised philosophy of combining individual responsibility with shared resources, which forms the foundation of the group to this day.
Historical Context
The 1930s were shaped by the aftershocks of the Great Depression and the financial collapse of Ivar Kreuger, which had sent shockwaves through the Swedish economy. Protectionist currents were rising across Europe, disrupting the import-dependent trading patterns on which Bergman & Beving relied. At the same time, Sweden’s industrial base was maturing, and the company’s network of trading agents had grown substantially. Navigating this complexity demanded a structure that could preserve the entrepreneurial energy within each business area.
Structural Decision
The leadership chose decentralisation as the organising principle. Operational responsibility was left to the people closest to the market. Each unit retained its own customer and supplier relationships and its own accountability for results. Centrally, capital, governance, and shared values were provided. This structure created the conditions for value creation at every level – decisions were made by those with the deepest understanding of customers and products.
Consequence
Decentralisation embedded entrepreneurship into the company’s DNA. It meant that Bergman & Beving could absorb new product areas without creating bureaucratic overhead, and that accountability was personal and direct. When the company later embarked on systematic acquisitions, this structure provided a ready-made framework for integrating new businesses without forcing conformity, thereby preserving the momentum each acquired company brought with it.
What Endured
Decentralisation remains the defining structural principle of the group. Today, the philosophy formalised in 1936 – freedom with responsibility, local decision-making, entrepreneurial accountability – is as central to value creation across all business units as it was nearly ninety years ago.