The Ultimate Global Citizen - An Interview with Stanford Ovshinsky, CEO of Energy Conversion Devices

As part of a strategy course at the UMBS, I had the opportunity to interview Stanford Ovshinsky, the founder, CEO, and principal shareholder of Energy Conversion Devices, Inc. ("ECD") based in Troy, Michigan. Although he never went to college, he serves as the perfect UMBS role model if we look to his record of achievement in technology, leadership, entrepreneurship, and corporate citizenship. Excerpts from my interview follow. Q: How did ECD begin?

A: My wife and I formed the company on January 1, 1960. Our operation started as a small storefront in Detroit. We wanted to use science and technology to solve the world's serious social problems. We decided to focus our efforts on energy, in hopes of achieving "the ultimate"-by that I mean using hydrogen and the sun as the energy source. We wanted to begin the process of decoupling energy from fossil fuels to a basic mechanism of photons, electrons, and protons. Since fossil fuels have been in use for a million and a half years, this would be a fundamental change.



Q: What do you consider your greatest accomplishment?

A: Having done what we said we were going to do.



Q: What was your most difficult moment?

A: Every moment was difficult, really. We were trying to fundamentally change the way people were thinking. When you think about it-the way nature has built our brains-stability is a requirement. Change is disruptive and uncomfortable. But science is a meritocracy. We have had the support of some of the greatest scientists-for example, I.I. Rabi and Linus Pauling. We were fortunate to have many supporters all over the world-without them, we probably wouldn't have made it.



Q: What will next decade look like for ECD?

A: You're going to see huge new industries appearing-in information as well as energy. It's revolutionary. Even though I'm at an age when most people retire, I feel like things are just beginning. Just look at the nickel metal hydride battery-you can find them everywhere now-in cell phones, in cars. We originated nickel metal hydride batteries.



Q: Have you found yourself the focus of more attention lately, considering the power crisis in California?

A: Yes. It's nice to know we're in demand. We look upon ourselves as problem solvers, as resources. That's what business should be about. California has always been a leader in terms of accepting new technologies, so there's a good fit for us.



Q: It's hard to imagine ECD without thinking of Stanford Ovshinsky. How do you envision the leadership of the company if and when you retire?

A: Bob Stempel [ECD's Chairman and former CEO of General Motors] is a tremendous leader-I tell him to think of himself as the chief executive of this company as if I weren't around. He's a great person and a great engineer. Everyone is a leader in this company. I'm more proud of our people and our culture than I am of my inventions. We have 35 first-generation Americans working for us. If they were back in their home countries, they'd be killing each other. We have what I call our "young tigers" working for us-the brightest young people. I believe that we have the lowest turnover rate of anyone. And we certainly have no shortage of talent-we've had Nobelists send us their best people.



Q: How would you describe ECD's culture?

A: Non-bureaucratic, free, focused on problem-solving, collaborative, collegial, based on mutual respect. I'm the only company president I know of who is a member of a union-they made me an honorary member. Too many companies have noble causes in their charter, but in reality there's much internal competition and elbowing instead of cooperation to achieve a common goal.



Q: My fellow business school students are going to be reading this story. What advice would you give to a young entrepreneur coming out of a business program?

A: They probably think I represent the old school. But I feel like I'm 19 years old. There's a popular mindset that as soon as you get out of school, it's not acceptable to become a small millionaire, but a multi, multi-millionaire. In order to succeed, you have to want to solve problems. You have to understand the basics of your business-I can't emphasize that enough. You have to be entrepreneurial and motivated by things other than greed. Otherwise it leads to cynicism. You need a nose for what's important, and an ability to observe and understand trends in our society. Always pick the important problems.