Ross Perot: A Modern Inspirational Leader (paper)

On Tuesday, July 9, 2019, [Henry] Ross Perot, Sr. passed away from a five-month battle with leukemia, at the age of 89. It is sad to see him go, but I am glad he is no longer suffering. My thoughts and prayers go out to his family and friends. He led an amazing life, had a positive impact (directly and indirectly) on so many people, and helped shape the IT Services industry.

I worked at Perot Systems, later Dell Services, and then even later, NTT Data Services. I had the honor of even meeting Mr. Perot one time and told him how much I admired him as an individual and as a leader. So much so, that I even authored a paper and did a [PowerPoint] presentation about him in college.

The following MLA styled paper was for “Leadership – BMGT 2309” for my Business Management AAS. It was written on May 5, 2010, with the criteria of choosing any leader and telling a story in regards to what and why he led, an analysis of how he led, a description of how he created a motivating environment, and any mistakes he made.

Paper (2010)

“No one is born successful. Rather, we are all born with the potential for success and we are free to develop that potential to whatever degree we choose. To do so, however, we must first learn and apply the principles which lie at the foundation of every successful life.” (Perot).

“Inventories can be managed, but people must be led.”

“Eagles don’t flock – you have to find them one at a time.” (Perot).

“Luck is what happens when preparation meets opportunity.” (Perot, G.).

Henry Ross Perot was a Navy Veteran, businessman, CEO, and founder of Electronic Data Systems (EDS), CEO and founder of Perot Systems, politician, son, husband, and father. Perot is also listed in Forbes “400 Richest People in America 1997” (July 1997).

I have had the opportunity and privilege to work for one of his companies, Perot Systems Corporation. I also have several friends and a father with the same opportunity. We can all agree that his unique leadership style and personal values are displayed all throughout the company.

Leadership

H. Ross Perot had many qualities and personal values that made him a great leader. His value system was not only reflected in his personal life but also his business life. “Do unto others as you would have others do unto you”, the Golden Rule, he followed this very much so. He treated people with respect and was an active listener. In both of his companies, he had an open door policy. The employees knew that they could go to him for anything, and so did those employee’s managers. This knowledge was key for the managers in between to keep an open mind on everything and treat everyone fairly.

Ross led by example from the front. He was out there doing and was very involved in every department. He did not like ‘managers’ going through the motions. He wanted them to be leaders and ‘make it happen.’ (Thinking Managers).

Perot stressed that authority to make decisions should remain in the field instead of in the corporate bureaucracy. He gives his employees true empowerment. The EDS procedural manual is starkly simple: ‘Do what makes sense’. (billindollarincome.com). At Perot Systems, in some areas, you would think there is not a manager because of the high-performance work teams that are established within the departments. He gave his employees stock options as another form of empowerment. The employees actually had a stake in how successful the company was.

His personal charisma and inspirational leadership were also important. He inspired with his tenacity and personal mottos. He was very involved with his employees from going to the hospital after an EDS or PSC family member had a child, to helping out the Veterans that worked within the company.

Ross Perot is an empowering and charismatic leader. The following biographical synopsis of major events in H. Ross Perot’s life and career that has made him into the leader described above.

Childhood to Young Adulthood

Born on June 27, 1930, in Texarkana, TX and raised on a farm. Even as a young child Ross was a hard worker and exercised his creativity. As a small boy, one of his chores was to feed and water the horses. Based on that chore he tried to invite and implement an automatic feeding and watering system. Though he was not able to do that as a child because of money, he does have that implemented in his stables today.

According to Ross, one of the contributing factors to getting a pivotal job at IBM was his early learning’s as a child. One of the most prominent was the fact of learning to play an instrument. Later on, scientific research showed that reading music at a young age helps in the development of a child’s brain. Also at a young age, he was taught how to give speeches, do plays, and so much more. The private school in which he attended was bringing out the best in children during the Great Depression. He began work at six years old, which during this time was not unusual at all. He began his business training by selling flower seeds and Christmas cards to earn enough money to purchase a bike he wanted for recreation. Later that bike turned into a business investment for a paper route to earn money. (Perot). At Patty Hill School where he went to as a child he was taught and memorized the following: “Help the man who is down today. Give him a lift in his sorrow. Life has a very strange way, no one knows what will happen tomorrow” and “I was angry because I had no shoes, and then I met a man who had no feet.” These quotes have had a lifelong impact on Ross Perot and he states that it is unfortunate that the ‘Federal Courts do not allow such principles to be taught in school today.’ (Perot)

Ross Perot joined the Cub Scouts and set out goals to achieve all four levels, which he did. He then joined Boy Scouts and was an Eagle Scout after that. During this scouting journey is where Ross discovered setting goals and obtaining them. During this time frame, the United States entered World War II. The scouts did a lot to try to aid in the war effort, one of which was recycling. As an adult, Ross Perot has always voiced his support of the US Military’s men and women and he has followed through his words with his actions. Even as a child he supported the troops. He and his father clean out a storage closet and placed a bed in it so that a soldier passing through town with his troops could have a place to sleep.

Ross Perot learned about business and anything else whenever he could. His father was a business owner and they had a family friend that owned a business. Whenever Ross could he would inquire about the friend’s business and what he did. Ross even helped build his father’s office. Ross Perot even attributes him hitchhiking across Texas as a contributing factor into what he was done to date. At the age of 14, Ross purchased a vehicle and a family friend instructed him on how to rebuild the engine. Developing engineering and mechanical skills at this age would assist him in the Naval Academy.

Ross had many teachers influence him throughout his high school and junior college time. The created a sense of motivation to bring out his determination to do good in school and in turn life. During his sophomore year at junior college, he became the President of the Student Council. He was also part of a civilized student movement to expand the college to accommodate more students.

Even though Ross had never seen the ocean and had never stepped foot on a ship, he wanted to go to the Naval Academy. Finally, after countless letters to different influences, he was given an offering to go from Senator O’Daniel. Later in life, it was actually thanks to the Senator’s aide. “Where principle is involved, be deaf to expediency.” – Commodore Maury.

After the first year at the Naval Academy Ross and his class were evaluated in a 360 fashion. Ross found out that he was at the top of his class in leadership. This continued three times a year through his senior year. One of the lessons growing up that was taught to him by his parents was “treat other people like the way you wanted to be treated.” Ross was elected Vice President of his class his sophomore year and President his junior and senior years. He also became the Chairman of the Honor Committee. Other recognition that Ross received was Who’s Who Among American College Students during both his junior and senior year. He received the Award for Outstanding Leadership and America’s Outstanding Student Leaders when he graduated.

After graduation, Ross Perot set on a journey around the world on the USS Sigourney that would touch 17 seas and 22 countries. He was the Junior Officer and Chaplin on board. While on this tour Ross learned yet another valuable lesson that has made him to the man he is today: “Tangible things do not bring happiness. Happiness is a state of mind.” (Perot). Ross Perot Married Margot in 1956 while he was still serving his country.

Starting his Business Career

In 1957, A few months before his time in the service was to end, Ross had some more luck on his side. An executive from IBM was onboard and heard about Ross Perot, now Assistant Navigator on board the USS Leyte. The executive came to Ross and asked him if he would be interested in a job. Ross accepted the invitation to interview even though Ross had no idea what IBM was at that time.

Ross started his business career in the Sales department of International Business Machines Corporation, IBM. At the beginning of his Dallas adventure Ross and Margot lived on his paycheck alone and had Margot’s deposited into savings based on the values of his father’s teachings: “Nobody ever went broke with money in the bank.” Ross states that he was in the right place at the right time in a brand new industry with the best company that had a great value system. (Perot).

He attended and graduated first in his class at IBM’s sales training course. Ross was an extremely successful salesperson at IBM, and he attributes that to his hard work ethic starting at such a young age. He focused on making his customers happy, and in turn, he made sales. Ross understood the harder you work, the more you get paid. Ross was able to thrive for five years at IBM.

Electronic Data Systems (EDS)

Prior to founding Electronic Data Systems (EDS), Ross had pitched the idea to IBM. Customers wanted the whole package at a predetermined price: hardware, software, programming, and operations. At this time 80% of the sales were in hardware and only 20% was in software. IBM respectfully declined. While reading a column a quote stuck out: “The mass of men led lives of quiet desperation.” (Perot from H.D. Thoreau). So, on his 32nd birthday, Ross started his one-man operation that would turn into 140,000 men and women with annual revenue of $21.5 billion. He had quite a bit in savings due to his frugal lifestyle and he also did a part-time job at one of his IBM customer’s Blue Cross. After a successful project with Collins Radio, the hiring process began. Ross brought his frugal personal value to the company and had two years with of salary for every individual that was hired in the bank just in case EDS failed. Ross, being the smart leader that he was, hired people that were more intelligent and more talented then he was. This being one of the contributing factors to his success; he had been doing this since his childhood with his friends.

When EDS was about to make their first big sale to Frito-Lay, IBM got wind of this and quickly scrambled a team together to try and put EDS out of business. Though not seen at the time by Ross, this was a blessing. Eventually, EDS won the account. EDS was doing so well that they were trying to hire enough people to keep up with their growing customer base, a good challenge to have. They started recruiting top young officers from the military and top students from state universities. One individual failed 1/3 of one of the aptitude tests, but they felt something special out of him. They waived that part of the test and eventually, Jeff Heller became President of EDS. Their recruiting motto was: “Eagles don’t flock – you have to find them one at a time.” This also carried over to Perot Systems Corporation later on. One of his personal convictions that came into the sales side of the company was not to over-commit to something while selling the product/service.

EDS was an extremely successful company and was sold to General Motors, GM, in 1984. Ross Perot remained on the board for a couple of years and then sold his shares. GM had ordered H. Ross Perot not to create another company similar to EDS for a few years.

Perot Systems Corporation (PSC)

In 1988, Ross Perot along with eight other colleges started Perot Systems Corporation (PSC). That same year, Ross Perot received the Independent Award from Brown University, which is an award for Independent Thinkers.

Ross grew this company just as he did, if not better then, EDS. “The founders brought diverse industry, technical, and management expertise to the table—but even more so, they brought a common desire to build a company dedicated to delivering results for customers, based on the core values of personal and professional integrity.” (Perot Systems Corporation). Ross Perot’s values that were integrated into Perot Systems were: “conducting oneself with personal and professional integrity, valuing and encouraging associates, listening to and serving customers, and always operating in the center of the field of ethical behavior, never on the sidelines”. (Perot Systems Corporation).

From personal experience and from those I have spoken with, his leadership style and value system are embedded in the company. In comparison with EDS at the seven-year mark, PSC was 25 times larger then EDS was. PSC was so successful that it went public and then years later Dell bought PSC. Which was done shortly after Hewlett Packard bought EDS.

Political

In 1969, Perot mounted a campaign to free American prisoners-of-war being held in Vietnam on request of the President of the United States. (Britannica). When I first worked at Perot Systems I was told a story from my father concerning Ross Perot. In 1979 he sponsored militaristic efforts to rescue two EDS employees who were being wrongfully held in prison in Iran. Later a novel and a mini-series were created out of these events. This story was quite impactful on me and this is where I believe that Ross shines as a leader. He will do personal sacrifices for his family friends, and employees. He put his life in danger in order to save his men. “Perot was awarded the Medal of Distinguished Public Service – the highest civilian award presented by the Department of Defense – for his efforts to help POWs.” (Army).

In 1981, President Reagan has Ross join President’s Foreign Intelligence Advisory Board (Ronald Reagan Presidential Library). In 1983, the Governor of Texas asked for Perot’s assistance to improve the quality of public education in the state. Ross Perot’s proposed reforms resulted in major legislative changes in Texas public schools.

In 1992, he emerged as an independent candidate for president, expressing serious concern over the national debt. Ross Perot’s focus was on the budget and the deficit not only as a government but as the American people. He wanted to encourage getting out of debt and saving money. Ross finished third in the general election with nearly one-fifth of the popular vote. In 1995 Perot founded a new national political party, the Reform party, as an alternative to the Democratic and Republican parties. He was the party’s 1996 presidential candidate; he finished third in the presidential race, but with a much reduced popular vote in comparison to 1992’s run.

In 2009, Ross Perot received an award from VA for his Service to Veterans. (Perot Systems).

Conclusion

H. Ross Perot is the real-life story of starting with not enough and finishing with more than enough. His personal values and convictions carried over into everything he did and the people he touched. As of 2002, he has received 31 Public Service Awards, 16 Business Awards, 13 Education Awards, and 8 other awards. He has served his country and his community. He has been and is a leader with integrity and ethics.

Thank you for your time,

 

Volume 10 Issue 01 (59) 
Original Post: 07/11/2019

Works Cited

  • Perot, Ross. My Life & The Principles for Success. Tapestry Press, 2002.

  • “H. Ross Perot.” Famous Texans
    <http://www.famoustexans.com/>

  • Heller, Robert “Business Leadership: To be a good manager, you have to lead.” 2005.
    <http://www.thinkingmanagers.com>

  • “Ross Perot.” Britannica Online Encyclopedia. 2010.
    <http://www.britannica.com/>

  • “About Us.” Perot Systems Corporation
    <http://www.perotsystems.com/>

  • Ronald Reagan Presidential Library.
    <http://www.reagan.utexas.edu>

  • US Army.
    <http://www.army.mil/>

  • “Henry Ross Perot.” Billion Dollar Income.
    <http://www.billiondollarincome.com/>

Posted in Education.

My mission is to lead strategically by SHEPARD-ING: guide and motivate teams in best practice adoption, positive change, and continual improvement through authentic servant leadership, creativity, and mentorship.

Digital Service Management Leader & Practice Owner passionate about Continual Improvement | MBA, IT Management | ITIL 4 Managing Professional | PMP