Celebrating Strength and Flexibility

27 Years and Counting: The Strength and Flexibility of Paragon Steel

On July 5th Paragon entered its 28th year of business. For over a quarter century Paragon Steel has made its mark in the ever-changing steel industry.  When we started back in 1988, both the Dodgers and Lakers won titles.  That has not happened since. Here are few notable changes in the times from 1988 to the present.  Unfortunately, many of us can still remember this time period.

Average cost of new home: $91,600                                                                               

Average cost of new car: $10,400

Interest rate: 10.5%

Cost of a gallon of gas: $.91   

Cost of a movie ticket: $3.50                                                                                                  

No Internet, cellphones or life as we know it!

So what have we learned since 1988?  Customers change, competitors change, markets change, and life changes.  Other than that, everything pretty much stays the same.  27 years to be very proud of.  Where will we be 27 years from now?

Happy July!

Happy July!

Happy July, everyone! We have big events on the horizon, with Source of Hope under consideration for a film festival in CA, and a *big announcement* coming this fall about a national Donate Life event. The temperature is heating up, and so is Source of Hope! Have a wonderful holiday weekend, and stay safe out there.

Building a High-Performance Team

Building a High-Performance Team

For nearly 30 years, Jim has maintained a newsletter correspondence with his loyal clients.
For all of the youngsters reading this, newsletters are like blog posts--just better.
Read on for some of Jim's "greatest hits" and musings on business and life.

One of the things I’ve learned in business is that getting people to work naturally together as a team is difficult.  As owners we always want a cohesive team of people who come to our organization with a host of previous backgrounds and experiences.  Getting those individuals to mesh together can be complicated.  Ask any head coach of a professional sports team.  Getting all the egos to work together for a common goal can be problematic.  And yet, we expect a lot from our teams and as the foundation of organizational life – we should.

Changing team behavior, once ingrained is no small feat.  There are a lot of social nuances that goes into creating the culture of any group, and once established can be impossible to change.  Cultures rest on spoken and unspoken norms.  Think of a team culture like a spider web.  You can take out one piece of it, and then it will re-form to its original shape.  Changing it sometimes requires you to break apart the entire web!

We just experienced such a situation.  We had one member of our sales team who had his own independent agenda.  As much as we wanted him to gel with others, he always would go along his own path.  We had several members of his team complain to me, but we allowed him to continue because of his personal performance, not realizing that his behavior had a large impact on the rest of the team.  Why was it acceptable for him to break policies and procedures, while the others had to toe the line?  Ultimately, we had to acknowledge that it was not acceptable and we had to let him go.

I think it’s important to define the kind of team we are discussing here.  A team is a group of people who are interdependent in order to accomplish their goals.  Teams basically have four elements – common commitment and purpose, performance goals, complementary skills and mutual accountability.  Groups that may work together but don’t share those attributes, such as independent sales reps are a work group rather than a team.  Many companies can waste time and resources trying to make a team out of independent workers who pretty much operate on their own.  That may work in many situations.  But, true teams do rely upon each other and they need to fully understand the boundaries which govern their behavior.  In many instances these boundaries are not communicated consistently.  That is why operating principles work so well - they create a shared agreement for behavior and create mutual accountability. Consider operating principles like the guardrails that keep you from steering off the road.

As for the employee that we had to let go, he kept driving past the guardrails and off the road.  Eventually we had to put the guardrails back up so the team could function as a unit.  So what do the operating principles look like?  They really can be whatever you want them to be.  Principles can be similar to core values, but with one important distinction – they are behavioral, tactical guides.  Principles provide direction.  For example, a core value might be to provide a high level of customer service and a team operating principle would be to report back on customer issues within 24 hours. 

What I have found in my years of business is that in order to get buy-in from the employees it is best when they help establish the guidelines.  Rather than extoll the principles from the mountaintop, I have found that creating the guidelines along with the employees is the best approach.  First, bring up the idea and then facilitate a brainstorm meeting.  Next have the team rank their top half dozen operating principles and once there is a consensus, make the principles visible.  Finally, reinforce them and make them a part of the daily culture. 

Unfortunately, much of what I’ve learned is via the hard way – by our mistakes.  It takes time and sometimes courage to make it right.  But in the end, it is worth it!

Lessons from My Grandpa Max - June 2007

Lessons from My Grandpa Max - June 2007

For nearly 30 years, Jim has maintained a newsletter correspondence with his loyal clients.
For all of the youngsters reading this, newsletters are like blog posts--just better.
Read on for some of Jim's "greatest hits" and musings on business and life.

My grandfather was born at the the turn of the 20th century and emigrated from Germany into this county. He settled into a small town on the Arizona frontier called Jerome. Andy of Mayberry, meet Max of Jerome. In the 1920s, Max started his family (raising my mother) and opened a general store named Popular. It was in his words, “the most ‘popular’ place in Jerome.” Popular was located on Main Street close to the saloon and the courthouse.

Jerome was at that time the fourth largest town in all of Arizona. It was built on Cleopatra Hill above a vast deposit of copper. The mines, the workers and those who sought its wealth formed Jerome’s rich history. They were a brave and raucous mix. Miners, smelter workers, firefighters, gamblers, bootleggers, saloon keepers, storekeepers, prostitutes and preachers all made Jerome what it was. And this was where Max chose to raise his family. Jerome’s modern history began in 1876, when three anglo prospectors staked the first claim on rich copper deposits in the area. They sold out to a group which formed the United Verde Copper Company in 1883. By the early 20th century, the United Verde was the largest producing copper mine in the Arizona Territory. Jerome grew rapidly from a tent city to a prosperous company town with frame and brick buildings.

Jerome was the talk of the territory, boom town of its time, darling of promoters and investors. The changing times in the territory saw pack burros, mule drawn freight wagons and horses replaced by steam engines, autos and trucks. Open pit mining brought about dynamiting which rattled the hills and cracked the buildings. The land surface began to shift and sections of the business district slid downward. The sliding jail moved 225 feet and now rests across the from its original spot. Phelps-Dodge took over the United Verde in 1935, but the loss of profits dependant on the swings in copper prices, labor unrest, the Depression and war brought the end to Jerome’s mining days in 1953. Almost overnight, the town had vanished with the copper trade. During its lifetime, United Verde produced about $500 million worth of copper ore. My grandfather, Max, retreated to Flagstaff, another growing town, and had to close his famed Popular general store. The population of Jerome which peaked at 15,000 in 1929 only had about 50 people left in the 1950s. A few hardy souls remained, reluctant to leave a lifetime of memories.

I visited Jerome in 1989 with my parents to see where my mother was raised. We visited Main Street, saw the boarded up Popular store, the jailhouse and the school that my mother attended. It was remarkable to see a town that literally “shut down.” Roads that connected neighborhoods would decay and be left in disrepair therefore shutting off a section of homes. We had tried to navigate our way to my mother’s home, but it was closed off. It literally was as if time had stood still for all those years.

Jerome now defines itself as “Ghost Town USA,” the nation’s largest. That sounds rather spooky to me. But what can we learn from this boom to bust story of a town? I asked my grandpa why everyone had left. He said, “It was cuz of the people - when their dreams left, they went off and followed them elsewhere.” And so it was.

What does that say about our lives today? When we watch business leave the area because they can’t be competitive in California. When we watch products made in foreign countries because they can’t be made as cheaply here in the U.S. When we watch companies close their doors because they can’t compete against Internet based businesses. And so it goes. Progress does not come without a price.


My grandpa Max lived until the ripe old age of 92. His memories of Jerome will forever live on within me and my family. And if, by chance, you ever have the chance on your way up to the Grand Canyon, take a stop at the little town on the map called Jerome. And think to yourself what once stood there…

A holiday of particular note

A holiday of particular note

Wishing the wonderful mothers out there a beautiful weekend!

As always, thinking of the mothers who give care to those waiting for the gift of transplant, and those who suffer great loss--and help their child save lives through donation. Our hearts are with you all this holiday. Happy Mother's Day!

Slide Rock - April 2015

Slide Rock - April 2015

When I was a kid we used to visit my grandparents who lived in Scottsdale, Arizona.  On the way to Scottsdale we would stop in Sedona which if you have never been, should be a “must see” on your places to visit list.  Anyway, as a young boy I was always amazed by the beauty of the Red Rocks and their exotic formations.  In my mind it always deserved more praise than the Grand Canyon which is still deemed one of the Wonders of the World.  In particular there was this natural water slide located about seven miles from Sedona formed on a slippery bed of Oak Creek aptly called “Slide Rock”.  Back then it was kind of local knowledge about this little spot tucked in the Coconino National Forest.  It was built on a homestead from 1912 and basically you would slide down the mossy rocks into a gathering pool located at the bottom.  It was a water slide, before there were water slides as we have today.  But, there were no lifeguards and signs that warned “slide at your own risk”.  My sister and I and my cousins couldn’t get enough of this place. Now remember this was back in the sixties and the times they do a change.

So fast forward to my adult life and when I have children that were about the same age as I was back then.  My wife and I had planned a family trip to Sedona where I would show them the places I went as a young boy.  We went to Inspiration Rock, which was inspiring, took a Jeep tour, visited an Indian reservation and of course planned a trip to Slide Rock.  I couldn’t wait to share the wonderment and beauty of this national treasure.  So first thing in the morning, when they opened we pacedk up the kids and headed over to Slide Rock.  Now when I was a kid, I had remembered having to “find” Slide Rock because it was off the main highway.  Now years later, there were signs and arrows directing us to the site right along the highway (no more off the beaten path).  The family gets out and we head over to the entrance.  Unlike the days I had gone when the price of admission was zero, now there was an admission charge.  I guess a sign of the times.  Disneyland probably cost $10 when they opened 60 years ago too!  No problem – we charge in.  Now I had two daughters aged 10 and 8 and a son aged 5, who brought his water wings.  The plan was for me to go down with the kids to the slide while my wife armed with the video camera (the size of a Buick) would be up top capturing the moments.  We were ready to make some lifetime memories.  And memories they would become.

My oldest daughter, Jessica, wanted to go down first.  She had more body weight than the others and was probably the best swimmer – so she would test the slide.  What you really can’t prepare enough for in this adventure is how frigid the water would be.  Since it is the run-off water from mountain snow, the temperature is freezing cold.  You want out as soon as you get in.  Anyhow, Jessica made her way down without too much of a problem, as her body slid down the slide with ease.  My second daughter, Ashley, was next up.  Unlike Jessica, she was a spindly little girl who could blow away with the wind.  When she hit the water, she immediately wailed about the freezing cold water but managed to slide down crying all the way.  Then once safe, I held my five year old son, Brian on my lap, water wings and all and we headed down.  Well, when Brian felt the water hit him, he wanted out and literally tried climbing on top of my head.  I hit the bottomless waiting pool below and tried getting to a point where I could extract Brian from the slide.  I tried holding on to the mossy rock, but it was too slippery to grab on to. Meanwhile Brian is literally dragging me underwater as he tried to stay above water.  I had no footing and no rock to grab.  I was treading water with Brian on my head and finally yelled for help.  This is when my wife realized that this was serious.  The video which was capturing the event became a jumble of images as she was stricken with fear.  Out of nowhere a man who must have witnessed this scene jumped into the pool where I was stranded and helped me get Brian out of the water safely.  I managed to slide down the rest of the way and I was shaking from the thought of what might have been.  We dried off, trudged back to the car and our one run down the slide was it for the day.

The lesson for me was this: Life changes as time changes.  What we remember from our childhood doesn’t mean it will always remain the same as we get older.  Sometimes memories are best kept as memories – never to be relived.  There are times in business when I believe that what may have worked in the past can work again in future.  But invariably conditions change and most importantly, we change.  Life is a dynamic process and change is ongoing.  Remembering the past is a good reference point- but you always have to move forward.  This we can never forget.

Source of Hope wins "Doing Good" Award at LifeTree Film Fest

Source of Hope wins "Doing Good" Award at LifeTree Film Fest

Loveland, CO —Jim Stavis, Executive Producer and subject of the 2014 film, Source of Hope, accepted the Doing Good Award Saturday night at the Lifetree Film Festival in the historic Rialto Theatre.  

The 24-minute film chronicles Stavis’ path to a rare triple transplant and the subsequent relationship that follows with his donor’s family.

“This was my first attempt at a film and my first film festival,” says Stavis, who heads Paragon Steel in southern California. “I’m really proud of the people who helped make it happen. I’m grateful to Brice Fabing for being my hero, and to the Fabing family for their generosity of spirit. I hope more Coloradans say YES to the gift of life at the DMV, or at DonateLifeColorado.org after seeing our story.”

By producing the film—on a shoestring budget—Stavis aims to bring attention to the 123,000 people who wait for a life-saving transplant today. 21 Americans die every day waiting for a gift of life (source: US Health and Human Services).

The Lifetree Film Festival showcases films that portray “people or organizations making a positive difference.”  This is it’s fifth year.  Prizes included the Doing Good and Doing Life Awards, as well as cash donations to organizations themselves.

 

Source of Hope in Colorado

Source of Hope in Colorado

Rare Triple Transplant Recipient Comes to Colorado to Premiere Film & Connect with Colorado Transplant Recipients

Loveland, CO, 9 April 2015—Jim Stavis, father of three and CEO of Paragon Steel in California, will premiere a documentary chronicling his heart, kidney and pancreas transplants at the Lifetree Film Festival April 18, 2015 (http://lifetreefilms.com/).  

The short film, Source of Hope, introduces audiences to Stavis and his friends and family, as well as the family of Brice Fabing, whose tragic death in a car accident a decade ago provided life-saving gifts of organ transplant to Stavis.

In coming to Colorado, Stavis aims to increase awareness of the vital choice of organ donation during National Donate Life Month (http://donatelife.net/ndlm/), as well as connect with other multiple transplant recipients.  Multi-organ transplants are exceptionally rare, constituting less than two percent of all transplants. Of the 622,135 transplants performed in the U.S. since 1988, only 9,074 (1.5%) have been for multiple organ recipients (http://optn.transplant.hrsa.gov/).

“It puts us in a unique club,” says Stavis. “Once you receive the gift of organ donation, life just becomes that much more precious. I hope my story inspires Coloradans to make the life-saving choice to say yes, be a hero, and donate life. My hero Brice said yes!”

During his stay, Stavis will connect with Coloradans who are fellow triple transplant recipients. Donor Alliance, the federally designated nonprofit that facilitates organ and tissue donation in Colorado and most of Wyoming, will have volunteers and a registration booth at Lifetree Film Festival to support Source Of Hope.

National Donate Life Month is a wonderful time to remind Coloradans of the need for more registered organ, eye and tissue donors,” said Andrea Smith, Director of PR/Communications with Donor Alliance. “We are thrilled that Jim Stavis is bringing his powerful story of survival to Colorado this month. And we encourage all residents moved by his documentary to say ‘yes’ to organ eye and tissue donation at the Driver’s License Office or online at www.donatelifecolorado.org."

Tonight!

Tonight!

Join Jim at American Jewish University for the final HOPE SERIES event. Tickets are still available at the door, or electronically at this link. We hope to see you there!

Thoughts on Life - October 2005

Thoughts on Life - October 2005

For nearly 30 years, Jim has maintained a newsletter correspondence with his loyal clients.
For all of the youngsters reading this, newsletters are like blog posts--just better.
Read on for some of Jim's "greatest hits" and musings on business and life.

After our August newsletter (two months ago) we received some incredible responses and warm wishes in support of my health odyssey. Thank you to all of you who took the time to respond to me via e-mail. I have promised to provide updates to our readers through this newsletter. As of this writing, which is in late September, I am still awaiting the organs for my transplant trifecta. I have been on an “any day now” status for over three weeks. I feel like the sprinter who is firmly in the blocks and the starter says, “On your mark, get set” - and then there is no gun shot. I wait suspended on the blocks. I must subscribe to the adage of whatever is of value is worth waiting for. Hopefully by the time you receive this newsletter, I will have had my big day.


When I think about all the devastation that has recently occurred in the Gulf Coast, it should give us pause to think about our own life situations. In a matter of a few days, like can dramatically turn. For some it can be in just a moment. We work so hard to bring order and a plan into our daily lives and then something so unplanned can turn our lives into a state of chaos. It is refreshing to see how people react in these times of despair. I continue to be impressed with the human spirit and the generous mind. I’ve learned through this newsletter that our steel audience is composed not just of “steel users,” but of people with wonderful intentions that happen to use steel. Thank you for that.

Death of a Salesman - October 2005

Death of a Salesman - October 2005

For nearly 30 years, Jim has maintained a newsletter correspondence with his loyal clients.
For all of the youngsters reading this, newsletters are like blog posts--just better.
Read on for some of Jim's "greatest hits" and musings on business and life.

Recently I was having dinner with a friend who is in sales. He was lamenting to me how everything has changed in the business world and how customers had become so difficult to deal with. So I asked him why this was so--and all he could attribute this to was that buyers were increasingly more difficult and that margins of profit were thinner than ever. But, what bothered him the most was the conduct of the buyers from the “way it used to be.” “Now everyone wants their bid E-mailed or faxed to them. There is no more human contact, no interactions with the customer.”

He explained, “In the old days we used to have lunch to discuss quotes or we might catch a ballgame together. Today, I’m dealing with a buyer that I hardly know, let alone can spend any time with. As a result, all anybody cares about is price.”

I was thinking about what my friend said. I thought about the play Death of a Salesman when Willy Loman says that unlike his colleague Charley, he intends to be “well-liked.” He tells his sons that in business as in life, character, personality and human connections are more important than smarts. Says  Willy: “The man who makes an appearance in the business world, the man who creates personal interest, is the man who gets ahead. Be liked and you will never want.”

Unfortunately in the current world, this belief is really outdated. With e-mail, faxes and the Internet, buyers are equipped with weaponry like never before. So what is a salesman to do? Change careers?

Perhaps the answer lies in their approach. The one thing my friend really did not consider in the “new equation” was what his role should be in this changing environment. How could he add value to the companies he was soliciting in spite of losing contact with his buyers? It takes a creative sales/person to understand the needs of his customers and to find a way to fulfill those needs. It may not be the old way of taking them to a ballgame or the three martini lunch, but there still is a place for good sales/people.

The reality is that we all want to pay Wal-Mart prices and yet get Nordstrom levels of quality and service. Unfortunately, it usually doesn’t work that way. The performance of a good salesperson is usually rewarded with the business. But providing value is the key, not just being Willy Loman’s likable guy with the best tickets.