Dennis Stolkey has always been a climber. In fact, long before he ever signed up with EDS, he started his career as one of those guys who climb telephone polls. He sure has come a long way. Over the past 22 years, Stolkey has made an impressive ascent through EDS’s ranks, and now manages its U.S. government sector — a practice worth $3 billion, no less. So, what accounts for his staying power? In the following Q&A, Stolkey shares a few tricks of the trade, discusses the future of EDS in the midst of the upcoming U.S. Presidential election, and dishes on whether Washington, D.C. can ever really beat his home state of Texas for a weekend of fun and relaxation.

Briefly tell us about your background.

Dennis Stolkey: I’ve been with EDS 22 years and have served in a wide range of leadership roles. I ran EDS accounts like Continental Airlines, General Motors - North America, Bank of America, and Bell South. I’ve also run large divisions of the company, what we call strategic business units, in various sectors such as travel and transportation, the Southeast Region, infrastructure, communication and now government. Today I manage EDS’ U.S. government sector which includes all our federal and non-healthcare state and local government accounts. Before coming to EDS, I spent 20 years with AT&T and Michigan Bell.

What size is your practice?

Dennis Stolkey: Our U.S. government and public sector business is worth over $3 billion.

What are your top priorities for 2008?

Dennis Stolkey: We’ve found that our government clients are extremely satisfied with EDS as a provider of IT services, but more and more they want our help in areas such as professional services and consulting. So I will be applying more focus in those areas. I also see opportunities to best serve our clients and grow our business by partnering more strategically. I think some people around the beltway think we’re hard to partner with. But we’re really not. My style is pretty straightforward, very honest. I like to put the cards on the table with potential partners, so we can work through any issues and decide whether or not to do business together. I think that when you do business with other companies you have to delineate clearly what each partner is responsible for. And I don’t think that is always done well in the government sector. If you don’t have things clear up front, it usually results in challenges downstream.

What advice would you give the CEO of a small company that would like to partner with EDS?

Dennis Stolkey: I’d say we very much want to work with you. You are important to us, and we have a long and successful track record of working with small businesses to help our clients meet their objectives. EDS received some prestigious awards in 2007 from the Defense Department and the Department of Veterans Affairs for our support of small business, so we’re very open to those types of relationships. I’m looking for companies that have good financials, a lot of integrity in the marketplace, and have demonstrated that they can deliver successfully.

What is your biggest challenge this year?

Dennis Stolkey: As you know, government agencies are being asked to do more with less funding, and we have to find new ways to help them leverage IT to help them become more efficient, effective and to save money, whether through applications modernization, service-oriented architectures or other solutions. Also, we are going to have a change in the White House coming up in 2009. That change is going to be a Republican or a Democrat, but no matter which party wins it is going to be a major change. Consequently, a lot of the customers we support are going to change, and so will government spending trends. We are preparing for the change by developing a strategy for a Democratic Administration and another strategy for a Republicans Administration. Depending on which party is elected, we would expect to see different government priorities and spending trends.

What is your view of the M&A in the government contracting space?

Dennis Stolkey: Well, you know we just recently acquired Saber Corp., which will help EDS increase its footprint in some areas of state and local government we really haven’t been in before. That’s a really positive thing for us. We view acquisitions as a means of executing our strategy, so future acquisitions would focus more in areas that will close gaps in our strategy or accelerate growth with our existing capabilities and clients.

What are some of the hot trends that you tracking in the government space that will impact your business unit?

Dennis Stolkey: Obviously it’s very important to our clients to protect their systems and networks and to ensure the integrity of their data. We are helping them address those challenges in projects such as NMCI, and we see the demand for those solutions and services growing. Also, the move towards shared services is continuing. For example, we hold the contract with GSA for HSPD-12 identity management shared managed services, and we see an increasing need for that because it is a state and local issue as well as a federal issue.

We also see a continued need in government for applications modernization. EDS does extensive applications modernization for federal agencies such as the VA and the Centers for Medicare & Medicaid Services. And we just won a contract to modernize systems at the California Department of Motor Vehicles. We see a growing requirement for those types of activities.

How would you describe your leadership style?

Dennis Stolkey: Frank and open. I communicate very well and run an inclusive rather than an exclusive shop. And I am driving to deliver outstanding service to our clients and achieve our commitments to the corporation.

Has anything surprised you in the last couple of months since you’ve been here?

Dennis Stolkey: How many acronyms there are. This is my first time in government, and there is a different language here. Also, government contracting is a lot different than commercial contracting, with very different rules.

What do you want your legacy to be in 20 years?

Dennis Stolkey: That I made a difference for the shareholders and the employees of EDS during my 20 some years.

How do you like living in DC, do you like the area, what do you think so far?

Dennis Stolkey: In Texas where I came from, we have trees that are 30 to 40 feet tall. And here in DC, you have trees that are 80 to100 feet tall. It makes the Texas trees look like just mere bushes. I had an office on the 4^th floor of the EDS headquarters building in Plano, Texas, and I could see out 25 miles. And from my office in Herndon, I’m looking at trees, and I’m on the 6^th floor. I look forward to being here and so does my wife, because on weekends we like to go out and just do things. Go here, go there, go shop, go to a small town, go to the Smithsonian. I think I could have 300 weekends here without being bored. It is a great place to live, but could be a bit warmer.

What is something most people don’t know about you?

Dennis Stolkey: There are two things. One is that I started my work experience as a guy that climbed telephone poles. And the second thing is that I’m dyslexic.

Can you elaborate on how you overcame your dyslexia?

Dennis Stolkey: One never really overcomes it, but you do compensate for it by doing things differently. Verbal communication is an effective way for me to learn and remember. I appreciate short and concise emails. I always prefer to discuss issues/solutions person to person so I can verbally question and understand. Office art needs to be simple and non-complex; busy art is difficult for most dyslexics to view. When going to the movies, I close eyes every 5 minutes and take aspirins before going to avoid headaches from fast screen movement.

Tell us some thing EDS does to be involved in the community.

Dennis Stolkey: We are one of the founding sponsors of Hoop Dreams, an organization that has sent over 800 students to college over the past 12 years. When first arriving in Virginia, I had lunch with Susie Kay, the founder of Hoop Dreams. I was very impressed with Susie and pledged to continue the support that many of my predecessors in this job provided. Marilyn Crouther, my CFO, spoke to mentors and mentees of Hoop Dreams recently. She did an outstanding job discussing her business success to help inspire the students. I look forward to a deeper relationship as I go forward this year.

We’re also becoming involved with the Wounded Warrior Project, which is a wonderful group that provides assistance to severely injured service men and women. They provide assistance to injured veterans from the moment they enter into long term hospitalization on through their transition back into civilian life and then for the rest of their lives. It’s gratifying to be associated with an organization like that.

EDS is also very involved with the Wolf Trap Foundation, and I was pleased to be elected to their board in February. We recognize and support the role Wolf Trap plays in promoting culture and the arts in the community.

ExecutiveBiz, the Washington DC area’s premier executive group and eMagazine, has compiled a listing of our top ten new at the top government contracting executives. We’ve chosen these 10 individuals because they have a demonstrated track record of success, arrive at a time when their current employers are in the midst of aggressive growth and expansion efforts, or will be succeeding some of the most well-known and respected names in the business.

While some of the names may be recognized from previous positions, the current roles represent new challenges. For example, BAE Systems kicks off 2008 by absorbing MTC Technologies Inc. in a recently announced $450 million acquisition; SAIC will be assisting the Space and Naval Warfare Systems Command of San Diego with program management services under a new contract worth as much as $70 million over five years.; and SRA International will be looking to remain a desired spot for top talent after being named by Fortune Magazine as one of the 100 best companies to work for in 2007.

We hope you will join us in the coming year in watching these elite executives perform in one of the world’s most competitive arenas: Government Contracting.

John Hillen – President, Global Strategies Group LLC
Assumed Role: February 2007

With a career that has put him in just about every global hot spot on the map, few enter the executive hot seat with as many tried and tested skills as Hillen. From his time in the Army as a paratrooper and with Special Ops; to his role as head of the defense and intelligence business at AMS; and most recently a stint as Assistant Secretary of State for Political-Military Affairs, Hillen is poised to make Global Strategies Group a name to watch in 2008.

Global Strategies is already turning heads as a unique breed offering high end, integrated national security solutions designed to strengthen national defenses, stabilize critical environments and assure worldwide commerce. The firm has played a key role in some of the most high profile international hot spots, for example laying the foundations for Afghanistan’s first national elections and managing security and operations at Baghdad International Airport.

Dr. Stanton “Stan” D. Sloane – President & CEO, SRA International
Assumed Role: April 2007

When an executive assumes the position from a man known around town by a single name – Renny – you know that you are following a true institution. Dr. Renato DiPentima spent 12 years at SRA, growing it past the $1 billion mark and establishing the company as a top area government contractor.

Now past the $1 billion revenue threshold, SRA is looking for even more growth, and Sloane’s deep and balanced military and private industry experience - most recently as EVP at Lockheed Martin - makes him ideally suited to drive it.

Dennis Stolkey – Vice President and General Manager, U.S. Government at EDS
Assumed Role: August 2007

The $20 billion technology services industry leader started modestly with a $1,000 investment 44 years ago, (try and match that ROI Google!) and even today considers itself a company of “ordinary people, extraordinary achievements.”

In taking over the helm of EDS’ public sector business from Jim Duffy, Dennis Stolkey will look to preserve the firm’s everyman (and woman) approach while deepening and extending relationships with federal, state and local government clients, and senior military officers.

While Stolkey is new to his current post, he is no stranger to EDS employees after serving as Vice President in several strategic areas of the company. Stolkey joined the company over 20 years ago, and is now leading the charge for government business.

Lee Carrick – President, Perot Systems Government Services Unit
Assumed Role: December 2007

When Jim Ballard stepped down as president of Perot Systems Government Services last month after five years with the company, he could look back on a period of rapid growth for the Unit, which currently accounts for more than $550 million of annualized revenue and employs more than 3,300 associates.

But, as Ballard pointed out in the news release announcing his retirement, the Government Services Division is in highly capable hands with Eugene “Lee” Carrick taking over as president. While Carrick most recently served as EVP for National Security at Perot Systems, he brings plenty of Federal experience to bear after 26+ years working in the intelligence, defense and civilian markets.

Carrick can point to his success directing the $480 million federal IT division at Northrop Grumman as indication of the growth and financial results he expects to deliver in his new position.

Lawrence “Larry” B. Prior III – Chief Operating Officer, SAIC
Assumed Role: October 2007

With more than 11,000 employees, the Intelligence, Security and Technology Group that Prior led before becoming COO is not only the largest line organization at the San Diego-based company, but one of the largest support organizations in the entire intelligence community.

Now, as COO, Prior elevates to the company’s highest-ranking Washington, DC-area executive position, where he will focus on delivering top- and bottom-line growth and to fulfill the goals set out in the initial public offering. With a strong background in financial controls and functions, Prior will seek to extend the results he achieved for the Intelligence, Security and Technology Group across the entire 44,000-employee organization.

Duane Andrews – Chief Executive Officer, QinetiQ North America
Assumed Role: June 2006

While Prior is ascending the ranks at SAIC, the man who had previously occupied that very COO seat is now CEO of QinetiQ North America, an international defense and security technology company spawned in 2001 from the British government’s Defence Evaluation and Research Agency.

Since Andrews took over North America operations – which are run out of McLean, Virginia – QinetiQ has become an increasingly familiar name attached to large contract wins. The firm’s public sector business has grown both organically and through acquisition – most notably Apogen Technologies, Westar Aerospace & Defense Group and Foster-Miller, and former CIA Director George Tenet joined its Advisory Board in October 2006.

Paul Cofoni – Chief Executive Officer, CACI
Assumed Role: July 2007

One could argue that a successor’s ability to execute quickly and effectively is tied to the quality of the succession plan put in place. CACI Chairman and former CEO Jack London understood this better than most, which is why he devoted tremendous time and energy to identifying the right leader to carry CACI forward when he stopped down last year.

For London, that leader was Paul Cofoni, and the two men worked hand in hand for the two years after Cofoni arrived from CSC in 2005. CACI – like many other contractors – aspires for the tier one status. And since arriving from CSC, Cofoni has led that charge, eschewing smaller deals in favor of $100m+ contracts and working to ensure that CACI assembles the resources and personnel required to service those large bids.

Walt Havenstein – COO, BAE Systems plc
President and CEO, BAE Systems, Inc.
Assumed Role: January 2007

In his role as CEO for the $27 billion global aerospace and defense company; in addition to serving as President and CEO for the Company’s wholly-owned U.S. subsidiary that employs 53,000 employees, there is little doubt that Havenstein taps into every bit of his 24 years of experience in the defense industry. As referenced, BAE Systems recently got even bigger with the acquisition of MTC Technologies, which allows the firm to expand its service lines and grow business in six core markets.

Stacy Mendler - Chief Operating Officer, Alion Science and Technology
Assumed Role: September 2006

In what can be the clubby, male-dominated world of government contracting, Stacy Mendler has stood out – not for her gender but for her genuine accomplishments. Mendler, the company’s first COO, has managed execution of corporate strategy for the company through tremendous growth achieved organically and through acquisitions of firms such as Anteon and LogConGroup.

Mendler – and Alion – moved front and center in 2007 with numerous awards and contract wins. The employee-owned technology solutions provider has grown significantly since its formation in 2002 when roughly 1,600 employees of the IIT Research Institute (IITRI) - founded in 1936 - purchased the majority of assets of IITRI, creating a 100% ESOP-owned company. By the end of 2006 the company registered over one-half billion in revenue and the employee head count totaled 3,500.

Ed Casey – Chairman and CEO, Serco Inc. (North America)
Assumed Role: January 2006

There are many roads that lead to the C-Suite of government contractors, and as Ed Casey has proven, not all take a long and winding path through the Defense, Federal and Intelligence communities. Casey joined Serco after 25 years as a growth-oriented business executive and entrepreneur. As a managing director with UBS Warburg and at a private equity fund, Casey brought in the financial chops to assemble a financially-sound, growth-oriented business plan – and he has been executing it ever since (no surprise that Serco ranked #10 in price-to-earnings ratio for the Washington Technology 2007 Top 100 List).

Serco provides IT services to civilian and defense agencies that often go beyond the traditional contractor work, and Casey’s focus has been on not only integrated previous acquisitions, but pushing the company’s revenues well beyond the roughly half-billion mark it stood at when he came aboard.

Based on the size of the companies they now lead and the executives they succeed, the ten individuals on this list are not ones to shy away from a challenge. While there are certainly a few viable candidates who didn’t make the list, these are our picks for the ten “New at the Top” executives who will be driving innovation and making news in 2008.

ExecutiveBiz recently asked government contracting leaders their predictions in their industries for 2008. Here are their responses:

“Flawless execution and systems integration and engineering will define the hallmarks for 2008 in our marketplace. The need for effective partnership with our government customer will be of paramount importance. An increased emphasis on stability in requirements and funding will be complemented by the need for value-driven solutions!”

– Deb Alderson, President of System and Network Solutions Group, SAIC

“The close of 2007 saw an improvement in award activity that gives the industry confidence for a robust 2008. We continue to believe shifting government priorities caused by an increased focused on the intelligence community combined with BRAC and the return of some forces from Iraq will create higher funding opportunities for federal civilian agencies, department of defense, and the intelligence community.”

– Brad Antle, President & CEO of SI International

“Agencies will place more emphasis on exploiting HSPD-12 identity management card benefits for applications like secure physical and logical access, collaboration, productivity and worker mobility. Also, outdated ERP installations will drive demand for applications modernization initiatives as requirements for business agility, information sharing, and productivity become more pressing across government.”

– Dennis Stolkey, Vice president and general manager of the U.S. government unit, EDS

“In 2008, I expect government spending in IT hardware, software and services to remain relatively flat compared with 2007. I predict that contracting vehicles such as the GSA schedules will remain the primary way to procure commodity-like technology products and services.”

– Peter Ostrow, President and CEO of Technical Communities

“The trend toward the use of government-wide acquisition and ID/IQ contracts will continue. Since there is a shortage of the number of contracting officers within federal agencies, these contracts help streamline the competitive process and can help agencies get work initiated more quickly.”

– Stacy Mendler, Chief Operating Officer of Alion Science

“In 2008, government will be gripped by mandate-mania, as agencies race to meet looming deadlines to become COOP-ready and IPv6-enabled. Of course, meeting the mandates is important, but we should also be mindful they will help prepare the country to compete globally and ensure government continuity in case of a disruptive event.”

– Haywood Talcove, vice president, Public Sector Americas, Juniper Networks

“Dollars will become stretched as agencies hold off on the results of the election, and as our military presence in Iraq continues. Tier 1 and 2 providers will execute on strategies to secure small business dollars through means other than M&A. M&A deal flow will remain soft due to the SBA recertification rule that took effect last summer.”

– Raymond Roberts, CEO of Citizant

“With National elections coming up and the end of an administration, we believe agencies will stay the course with programs currently underway. New contracts will likely be limited to those with bipartisan support, with the remainder sliding to the right. We also expect qualified talent to remain a scarce resource both for government agencies and the contractors who support them.”

– Jim O’Neill is the president of Northrop Grumman’s Information Technology sector

“2008 will be another year of gridlock for contractors…

- Presidential election year politics in full display
- Legislative “one-upmanship” the order of the day
- Costs of the war will continue its ripple effect across the entire budget
- Reality of re-certification regulation will increase the chasm between small and large companies.”

– Bill Hoover, CEO of American Systems

“Homeland security, infrastructure, health, and ageing issues constitute the top priorities for our nation in the years ahead. We will need to find new and innovative ways to link the public, private, and civil society sectors, as a Megacommunity, to address the challenges that we collectively face together.”

– Mark Gerencser, Managing Director of Global Government Business, Booz Allen Hamilton