How did H. Ross Perot go from the Navy to EDS?

H. Ross Perot. Naval Academy graduate who left the Navy to sell computers for IBM, founded EDS with $1,000, and became a billionaire, presidential candidate and advocate for veterans and POWs.

In the military

Entered the U.S. Naval Academy in 1949 (class of 1953, class president, helped establish the Academy’s honor code). Served 1953 to 1957 as a junior officer on a destroyer and an aircraft carrier; reached lieutenant; left the Naval Reserve June 30, 1961.

The transition

• Joined IBM as a salesman after leaving the Navy in 1957; once filled his annual sales quota in 2 weeks.
• Founded Electronic Data Systems (EDS) in Dallas in 1962 with $1,000, about 5 years after leaving active duty.
• EDS was turned down 77 times before landing its first contract.
• Deliberately hired Vietnam veterans at EDS for their leadership experience.

What came next

• Sold control of EDS to General Motors in 1984 for $2.4 billion.
• Founded Perot Systems in 1988; Dell bought it in September 2009 for $3.9 billion.
• Organised the 1979 rescue of 2 EDS employees jailed in Iran, led by retired Col. Arthur ‘Bull’ Simons (the story of Ken Follett’s On Wings of Eagles).
• Won 18.9% of the popular vote (19.7 million votes) as an independent presidential candidate in 1992, and 8.4% in 1996.
• Long-time POW/MIA advocate; honorary Green Beret and West Point’s Sylvanus Thayer Award (both 2009).
• Died July 9, 2019 in Dallas, aged 89.

In Perot’s own words

“I had never seen the ocean, and I had never seen a ship, but I knew that I wanted to go to the Naval Academy.” (Quoted in We Are The Mighty)

“I had relatives and friends who were going into the military, and I had a very keen sense of what their service and sacrifices were.” (Interview with John D. Gresham)

“I started the EDS Corporation with a thousand dollars, and we ’boot-strapped’ it from there.” (Interview with John D. Gresham)

“They had endured leadership challenges in Vietnam you’d never endure in the civilian sector, and they were responsible for their men’s lives, not just for the quarterly profits.” (Defense Media Network interview)

“The real thing they brought was leadership, leadership, and leadership.” (Defense Media Network interview)

“The number one rule in leadership is to always be accountable for what you do. When you make a mistake, step up to the plate and say you made a mistake.” (Quoted in We Are The Mighty)

Lessons for your own transition

• Military leadership is a marketable asset: Perot built EDS partly by hiring veterans because of the responsibility they had carried.
• Rejection is normal at the start; EDS lost 77 bids before its first win.
• A corporate sales job (IBM) was his bridge: it taught him the market before he went out on his own.

More veterans who made the leap

See them all, and practical steps for leaving after a long career: How do I transition from the military to civilian work after 30 years?.