sign in sign up
<<
Home , Ross Perot

Special acknowledgment

The Perot family

If family businesses need a good case study of how to be entrepreneurial across generations, the Perot family might be a good starting point. Ross Perot Sr. and his son Ross Perot Jr. are among America’s greatest entrepreneurs. Between them, they have so far created three multibillion- dollar companies, generating thousands of jobs in the process. Indeed, both of them appear to be larger-than-life characters. And beyond its extraordinary business endeavors, the whole Perot family is also known for its contribution to “You have to surround philanthropic causes across the US. The Perots yourself with people are a truly great American family dynasty. much more talented than yourself.”

Ross Perot Sr.

150 | EY Family Business Yearbook 2014 EY Family Business Yearbook 2014 | 151 EDS rode the early years of the IT boom. At its peak, it employed Sr. squeezed in two presidential campaigns. In 1992, he gained more than 92,000 people. But, after building it up over more the highest vote share (19%) of a third-party candidate since than 20 years, Perot Sr. got an offer he couldn’t refuse and he in 1912. decided to sell the firm to in 1984 for US$2.4b. Perot Sr. is still extremely active, particularly in the family’s went public in 2000 philanthropic and investment activities. But since the sale to , he has let his son take more of the lead in business. Despite netting a huge fortune with the sale, Perot Sr. wasn’t Prior to setting up Perot Systems with his father, Perot Jr. content to kick back and listen to that oft-quoted piece of founded Hillwood, which is now one of the biggest real estate wisdom that very few entrepreneurs succeed in creating more development companies in the US. than one great business. Together with his son and some senior managers from EDS, Perot Sr. set up Perot Systems. Perot Jr. acknowledges the influence of his father in his leadership style The company would eventually emerge as the biggest IT healthcare services provider in the US. The father-and-son team And like his father, who had an illustrious career in the Navy helped take Perot Systems public in 2000. They eventually sold before his business career got under way, Perot Jr. has The Perot Museum of Nature and Science in the company to Dell in 2009 for US$3.9b. In between, Perot something of the swashbuckling tendency. Soon after university,

Ross Perot Sr. is best known to the wider world as a former US the American Dream in its most pure interpretation. Speaking presidential candidate, who ran as an independent in the 1992 to Perot Sr., it’s easy to be taken in by his southern charm. Born and 1996 elections. Less well known, at least outside of , is in Texarkana, Texas, Perot Sr. is Texas through and through. But the fact that Perot Sr. stands at the center of one of America’s mix this charm with his now legendary steely determination to richest business dynasties — one that has been defined by succeed, and you get one extraordinary individual. Indeed, so extraordinary entrepreneurial panache for more than 50 years. extraordinary that it appears to have been more than enough for one single man, spilling over to his son’s equally entrepreneurial Living the American Dream zeal and will to succeed.

Now in his early 80s, Perot Sr.’s legacy certainly has influenced IT was at the heart of the initial business his equally entrepreneurial-spirited son, Ross Perot Jr., age 55. Created in 1988 by Perot Jr., Hillwood is a grand real The larger-than-life story of Perot Sr. is enough to fill volumes estate development dream that has become a significant of books. Indeed, Amazon lists at least 20 books on the great reality. Hillwood is best known for the industrial and real estate man that have either been written by him or others. At the heart development of AllianceTexas, which includes the world’s first of Perot Sr.’s success is his legendary ability to sell. That sales industrial airport. Spread over a vast area, taking in parts of the ability was developed when he was at IBM, which he joined after Texas city of Fort Worth, AllianceTexas is home to more than leaving the US Navy. He famously became the company’s top 250 companies, 30,000 employees and thousands of residential sales employee and, during one year, fulfilled his annual sales homes. quota in just one month. But, like so many entrepreneurs, the restless gene kicked in. It wasn’t long before Perot Sr. used a The success of Hillwood is testament to the determined US$1,000 loan from his wife, Margot, to start Electronic Data entrepreneurial spirit of the Perot family. It is a spirit born out of Systems (EDS). Ross Perot Jr. was deeply influenced in his leadership style by his father

152 | EY Family Business Yearbook 2014 EY Family Business Yearbook 2014 | 153 Special acknowledgment “My goal is that we provide the generation with the education and leadership skills they need to be successful.” Ross Perot Jr.

he piloted the first ever round-the-world helicopter flight. The The Perot family has made a difference to the lives helicopter he did it in, the Spirit of Texas, is now preserved at the of others National Air and Space Museum in Washington D.C. The roots of the family’s entrepreneurship spirit are less well Perot Jr. acknowledges the influence of his father in his known. They lay with Gabriel Perot, Ross Perot Sr.’s father, leadership style. As he says, his father let his senior team and who opened a brokerage business in Texarkana in employees solve problems using their own brainpower. Perot Jr. 1945. Although the business didn’t achieve the grand scale describes this leadership trait as “coaching,” adding that: “Dad of the later Perot business endeavors, both Perot Sr. and did not call the plays.” Jr. acknowledge the influence of Gabriel in their success as entrepreneurs. This theme of employing talented people is acknowledged by Perot Sr. “The real key to the whole thing of success in a And central to the Perot family, says Perot Jr., is the philosophy business is getting the people who have the skills to do it,” he that “we can do something big here, but it’s only worth says. “Also, you have to allow them to be creative — this is very, something if we give back.” Serving its country and community, Ross Perot Jr. at the Air Force Memorial near Arlington, Virginia, very important. You have to surround yourself with people much the Perot family has made a difference to the lives of others. together with the former US President George W. Bush more talented than yourself.” Examples are Perot Jr.’s leadership of the US Air Force Memorial Foundation, the creation of the Dallas Perot Museum of Nature AllianceTexas is home to more than 250 companies and thousands of residential homes The next generation, anchored by the four children of Perot Jr., and Science, and the funding of numerous medical facilities and may also follow in these large Texas footsteps. Hill Perot, who, military support initiatives. after a period of serving as an F-4 pilot in the US Air Force, may join the family business, representing the third generation. As George W. Bush, US President from 2001 until 2009, describes Perot Jr. says about the next generation: “My goal is that we Perot Sr. and Jr. as “great entrepreneurs, successful business provide the next generation with the education and leadership men, family men and true patriots.” He added: “I am thankful skills they need to be successful; and to carry on the tradition that they are willing to give back to our community.” of recruiting and empowering smart, hard-working people and enabling them to achieve great things.” Few would disagree.

The three generations of the Perot family at the opening ceremony of the Perot Museum of Nature and Science

154 | EY Family Business Yearbook 2014 EY Family Business Yearbook 2014 | 155