Ross the Crazy Boss

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Ross the Crazy Boss EDS and Perot Systems were both founded by the same individual with the same philosophy, Ross Perot. In both cases, the companies grew to develop large client bases in the field of computer data processing. However, the story of Perot Systems was much different than with EDS. Ross Perot, having sold EDS to General Motors, had founded Perot Systems, to attempt to duplicate the success of EDS. However, several years after founding Perot Systems, Perot became engaged in two successive presidential campaigns in 1992 and 1996 and handed off management to long-time friend and business associate Mort Meyerson. Meyerson found Perot Systems to be much like Perot’s EDS, which had been based on the same management system, but this time, he realized the old management model that he had helped Perot create at EDS was not working. He worked to change company philosophies in three major problem areas for Perot Systems: Redeveloping Employee-Management Relationships At the time of Meyerson’s takeover, Perot Systems’ leadership was very job-centered, where successful employees were well-rewarded and lesser-performing employees treated with little or no respect by management. To his credit, he acknowledged his own role in helping develop that culture, and worked to institute a more employee-centered system of management, and encouraged those who would not adapt. He also became more of a hands-on executive, taking part in the activities he mandated for his employees. Stronger Customer Relationships Perot Systems had long had a strict command-and-control philosophy that extended to its customers. Driven by the strong pay-for-performance compensation system, Perot Systems employees were looking at short-... ... middle of paper ... ...f his position power to run Perot Systems drove employees hard to perform, at the expense of any consideration for the personal lives of his employees, or the long-term interests of clients. Perot stepped back from managing Perot Systems and put Meyerson in charge, but then showed little faith in Meyerson’s changes when they deviated from his vision for Perot Systems and seized power back before Meyerson’s changes could be given time to work. Instead of creating another IT giant, Ross Perot’s personal ambitions and management methods drove a company to the breaking point. Ultimately, the failures of Perot Systems to succeed on the scale of EDS are centered on Ross Perot’s failure to show the proper leadership skills and to develop a successful culture of leadership within his company left Ross Perot losing in the marketplace his business vision helped create.

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