Following completion of surface warfare officer's school in Newport, Rhode Island, he was assigned to the USS South Carolina (CGN-37), serving on board from 1980 to 1983.

[5] Ferguson reported to the Naval Postgraduate School in Monterey, California, and completed his master's degree in computer science.

In his article "Retention Through Redemption" in Harvard Business Review and subsequent book It's Your Ship, author D. Michael Abrashoff referred to his predecessor in USS Benfold.

[8][5] Upon returning from overseas, Ferguson reported as the commander of Destroyer Squadron 18 based in Norfolk, Virginia, as part of the USS Enterprise Strike Group.

During his tour, the navy was the first federal agency to receive the Optimas Award for General Excellence by Workforce Management Magazine for innovative personnel policies.

[17] He spoke at the Atlantic Council in October 2015 regarding Russia, and was cited in the press regarding resurgent Russian Navy and their construction of an 'arc of steel' from the Arctic to the Mediterranean.

[18][19][20] During his tenure in command, the navy completed the deployment of four Arleigh Burke-class destroyers to Rota, Spain, and activated the AEGIS ballistic missile defense site at the former Devaselu Airbase in Romania.

[24] In 2015, he received the Ellis Island Award in New York for his work in innovative personnel policies supporting service members and their families.