Irreconcilable Differences: Ross Perot versus General Motors

by Doron P. Levin

Recounts the battle undertaken by the founder of Electronic Data Services when his company was taken over by General Motors

Genres: Business, History

Hardcover

First published March 1, 1989

Reviews

[Larry Bissinger · Rating 4 out of 5]

A good recap of GM's acquisition of EDS in 1984 and the post-acquisition turmoil between GM and EDS' senior leadership. I worked for EDS at the time of the acquisition and was actively engaged with our GM account from 1984-1994. I read this book initially when it was published in 1989 and just finished re-reading it. This book fills in a lot of blanks that explain the reasons behind the tense relationship between GM and its information technology services subidiary in the early years after the acquisition. This book is particularly relevant today as GM is in the process of reversing its nearly 30 year strategy of outsourcing its information technology function, begun via EDS, and bringing nearly all of it back in-house.

[Gary Turner · Rating 4 out of 5]

Nice read. Boys will be boys. Amazing how people in power can waste and waste and still be classified as genius money makers when in fact all they have on their side is all the freaking laws and a large country to steal from. I suppose this multinational corporation welfare will go on and on until America is ran into the ground. Otherwise a very good story. Of course we know how this plays out. This story was from the 1980's and twenty years later these 'geniuses' again needed a whole lot more 'welfare' to bail them out. Trickle down, don't ya just love it. Soon to be 2017 and we have similar 'geniuses' getting ready to go to work on more trickle down. Hold on tight.

[John Gault · Rating 4 out of 5]

Gripping, intriguing back-room corporate politics about the failed partnership between Ross Perot and his Electronic Data Systems and Roger Smith & General Motors in the mid-80s.

[Reed · Rating 4 out of 5]

A detailed, well-written documentation of the struggles between Ross Perot of Electronic Data Systems (EDS) and Roger Smith, CEO of General Motors (GM) when GM attempted to acquire EDS and move it into the GM organization in the 1980s. It is amazing, what was supposed to be the ideal arrangement backed with plenty of money, big corporations with seasoned executives, experienced brokerage houses from Wall Street and some of the most expensive law firms in the country representing both organizations could draft and execute a "perfect deal" and then watch it unravel in just a few short years. This should be a good read for anyone with a flair for big business and an interest in the automobile industry. There are lessons to be learned that could apply to any business transaction. In this case, large egos clashed when one of the largest corporations in America that embraced change at glacial speed tried to bring about internal change by absorbing an upstart company growing out of a new industry (electronic data processing) led by an entrepreneur who thrived on his own independent thinking. It didn't work!

[Matthew McElroy · Rating 1 out of 5]

There was a time when this book had an interesting biographical slant. It told the Horatio Alger story of Ross Perot, who definitely had some significant help along the way. In fairness, he did have some creative ideas and was willing to put in the time.
And the chapters about the dominance of General Motors in the first half of the 20th century was excellent, as well as how it got complacent.

Unfortunately, the book falls apart when it arrives at its stated goal. "Perot and GM was a failed mission." Levin is trying to wring water from a stone. This may have been interesting to a few business nuts, and someone who helped uncover the story. In the end, Levin is fascinated by numbers and legalese, between two unrelatable entities.

[Rohit Kadam · Rating 4 out of 5]

One of those old classics on what can go wrong with M&A if the DNA of the two organisations does not match. Well written with some original written correspondence between Ross Perot of EDS and Roger Smith of GM.

[Monzenn · Rating 5 out of 5]

Might be a personal five stars, but I liked the story between Ross Perot and GM. It has the hallmark corporate journey, from the promise to the conflict to the fall.

[Steve Sartorius · Rating 4 out of 5]

I started with EDS in 1985 during this time period so I thought it might be fun to finally get down to reading this after a 33 year IT career supporting General Motors. It hits the nail on the head about how EDS people were treated in the early days at GM. (Actually, IT people were never treated very well at GM in all the years I worked there. We were always red-headed stepchildren even after we were made full GM employees back in 2013.) It's a look at two egotistical CEOs (Roger Smith and Ross Perot) who had different views on how GM should be run. The merger between GM and EDS was supposed to be a good idea at the time but turned more into a hostile acquisition instead. Perot was to remain the leader of EDS while keeping it an independent company providing IT services to GM. He also was placed on the GM board of directors. Problems started when Roger Smith never really kept the terms of the merger agreement and bullied EDS much like another supplier. EDS was being integrated instead of being allowed to operate independently. Perot was angry about this and about how slowly it took to get something done in the GM world. He thought GM was losing ground in the automotive business because of bureaucracy and unimaginative design. What got him into trouble was his outspokenness at board meetings and in the press. This did not endear him to Roger Smith who felt directly challenged.
This is a fascinating read about two egos clashing with Perot finally being bought out at General Motors and stripped of the company he founded, Electronic Data Systems. It ends with Perot starting a new company, Perot Systems and being sued by GM and EDS for violating a non-compete clause.
Reflecting on things now it is ironic how none of this matters anymore. EDS as a company is long gone after being swallowed up by Hewlett Packard. General Motors no longer outsources their Information Technology. (In 2013 GM insourced all their IT people again.) Saturn doesn't exist as a platform at GM anymore. Both the outsourcing of IT and the Saturn concept were innovation ideas that were part of Roger Smith's legacy. Both men are now dead. Since then, General Motors has had its problems (surviving lost market share and bankruptcy) and still remains mired in bureaucracy.
The money spent on the acquisition of EDS, the buyout of Perot, the lawsuits, etc... all seems irrelevant and silly now. All because of the egos of two men.

[Rusty · Rating 4 out of 5]

A fascinating tale about an independent thinker. While I don't always agree with Perot's ideas and approach to business, I found this read enlightening and enjoyable. Perhaps others will find the same to be true.