Schultze-Hencke was the son of Dankmar Schultz-Henke[1][circular reference] a chemist who was the founder of the photographic institute at the Lette-Verein and Rosa Zingler, a graphologist who had written the libretto to the opera "Die Sibylle von Tivoli" by Alfred Sormann and who was rumoured to be an illegitimate daughter of King Edward VII.
With other psychotherapists and analysts who had left or had been excluded from other psychoanalytic organizations, he started the DPV (Deutsche Psychoanalytische Vereinigung).
After numerous debates regarding whether or not these analysts should join the International Psychoanalytical Association, Schultz-Hencke, who had long been in disagreement with the basic tenets of Freudian theory, created "Neopsychanalyse."
To some extent, this criticism joined that of Karl Popper and other more modern scientists who, before anything else, advocated quantitative analysis and, thus, statistics.
The treatment technique advocated by Schultz-Hencke was subsequently developed by Helmut Bach, among others, who progressively demarcated the ideas of its founder to create a "psychoanalysis" within the limits of practices imposed by the IPA; psychotherapists such as Franz Alexander, Karen Horney, René Laforgue and Erich Fromm have contributed significantly to this endeavor.