Episode Transcript
In this episode of Servant Leader’s Library, former Phoenix Contact USA President Jack Nehlig shares how he grew the company from $80 million to over $500 million in sales without losing sight of the people who made it possible. With more than four decades of leadership experience, Jack offers practical insights on building culture, navigating crises, and developing leaders who thrive long after you’re gone. Whether you’re leading a small team or a national division, this conversation will inspire you to put people first and watch your business grow.
Nicholas Paulukow
All right, welcome to Servant Leader’s Library. We’re the only podcast where leadership isn’t about corner offices or big egos—it’s about rolling up our sleeves, showing up for your team, and maybe even brewing the coffee yourself.
I’m your host, Nicholas Paulukow, CEO of ONE 2 ONE, your friendly neighborhood IT and security firm. Because, let’s be honest, even servant leaders need someone to reset their password. Today’s guest is the kind of leader who could write the book on people leadership and probably should.
Jack Nehlig spent 23 years at the helm of Phoenix Contact USA and just hung up his executive boots this January. But don’t let the word retire fool you—Jack’s passion for positive, people-centric leadership still packs a punch.
Before Phoenix Contact, he spent 19 years at Honeywell, climbing the ranks from sales to Vice President and General Manager of their sensing and control business. Basically, if leadership were an Olympic sport, Jack would have at least three medals and a Wheaties box. So grab your favorite drink—coffee, tea, or something stronger—and settle in.
This is going to be a masterclass in humble, human-first leadership with just the right amount of cheek. So welcome, Jack.
We help leadership teams build more resilient IT foundations. Curious what that looks like?
Jack Nehlig
Thank you.
Nicholas Paulukow
We appreciate you being here. That’s wonderful.
Jack Nehlig
Great job on the name—you got it.
Nicholas Paulukow
Yeah, I was stressing out about that.
Jack Nehlig
Whenever I get introduced to somebody and they ask about the name, I say, “It’s Nehlig, and you’ll never meet another one.” There aren’t too many in the U.S.
Nicholas Paulukow
Oh, well, I love it. Where is your family originally from?
Jack Nehlig
That’s my father’s side, of course—the way the naming would happen. And that’s a German name.
Nicholas Paulukow
Okay.
Jack Nehlig
It’s from the border between Germany and France, really.
Nicholas Paulukow
Okay.
Jack Nehlig
It’s the Alsace region. Over the years, it was French, then German, back and forth through all the wars long ago. We have a family tree my mother made, and you see Jean-Philippe Nehlig.
Nicholas Paulukow
My father was born in Dingelfink, Germany. If you look at it on a map, I don’t even think the dot fits there.
Okay. Well, thank you for coming today. How about you tell us a little bit about yourself?
Jack Nehlig
Well, sure. I was born and raised in Pennsylvania, near Philadelphia, in the northern suburbs. I was born in a town called Abington, and Willow Grove was where I grew up.
I graduated from Plymouth-Whitemarsh High School, which is kind of near the Valley Forge area.
Nicholas Paulukow
Yes. Okay.
Jack Nehlig
There’s a Plymouth Meeting exit on the turnpike.
Nicholas Paulukow
Right there. Okay.
Jack Nehlig
So that’s where I grew up—one of three boys. My mom was a teacher. My dad was a small business owner; he had a printing shop and did silk-screen printing back in the day.
I applied to two Pennsylvania colleges I wanted to attend, but neither accepted me, so I went to my safety school—Clarkson University (then Clarkson College), which is about 30 miles from Canada, way up in New York State in the middle of nowhere. The frozen tundra.
I started in engineering and figured out that wasn’t a fit. I switched to a degree that was 50% engineering and 50% management—industrial distribution, now known as interdisciplinary engineering and management. The goal was to prepare you for marketing or management roles in technology firms—able to talk to engineers while pursuing the business side.
I graduated and started with Honeywell in sales—three years in New Jersey, then three in Phoenix, Arizona. Then I was invited into management. I kept saying “yes” to leadership challenges, and before I knew it, I had accidentally become a general manager.
That was the first 19 years of my career at Honeywell. Toward the end, the company was being pursued by General Electric for acquisition, but the deal fell through. Honeywell was going through an identity crisis. I was offered a bigger global job—combining my unit with another and laying off 1,000 people—but at the time, my three boys were between six and twelve years old.
I didn’t want to spend my life on an airplane and miss my family, so I started looking and quickly found the opportunity with Phoenix Contact. The role was in Pennsylvania, running only the U.S. operations. The owners weren’t looking for someone to climb higher—just to run the U.S. well for the long term.
When I joined, the business was about $80 million in sales with roughly 200 employees. It was hands-on again, and I loved being close to the details and knowing everyone in the company. It was also a shift from a publicly traded corporation to a privately held, family-owned German company.
Instead of quarterly shareholder meetings and earnings pressure, the owners would simply ask, “How are we doing, Jack?” I’d say, “We’re doing good,” and they’d reply, “Keep growing.”
By the time I left, we had grown to over 1,100 employees and exceeded $500 million in sales.
Nicholas Paulukow
That’s incredible. You brought sales, business, and engineering together.
Jack Nehlig
Yes, and about four or five years in, the owners asked us to start manufacturing in the U.S. Previously, we bought products from Germany and resold them here—like a Mercedes dealership. They wanted to expand design and manufacturing capabilities domestically.
In 2005, we launched Phoenix Contact Development and Manufacturing. Today, it has 350 employees and over $100 million in sales, producing U.S.-made products.
Nicholas Paulukow
For those who don’t know, what does Phoenix Contact make?
Jack Nehlig
Think of any factory—whether it makes cars, potato chips, or clothing. Inside those factories are machines, and inside those machines are specialized electrical components that make them run. That’s what we make: the products that make the machines go.
We sell mainly to machine builders, but our products are also in infrastructure—like the electronics inside cell tower cabinets that process and transmit signals. Our industry is called automation and control.
Nicholas Paulukow
It sounds like your products are in so many things we use every day.
Jack Nehlig
Yes. It’s a hidden science, a hidden technology.
Nicholas Paulukow
With your leadership experience, what’s your core philosophy?
Jack Nehlig
People-centric leadership. Don’t treat employees as numbers—create a culture where they can thrive. Combine that with strategic vision, and you have my approach.
For example, our mission statement included the word “friendly,” which is rare for an industrial B2B company. I used to tell new hires, “You can have a bad day now and then, but not every day. If you’re naturally grumpy, you won’t be comfortable here.”
We also emphasized respect—valuing each person’s “bundle of uniquenesses” so no one feels uncomfortable being themselves at work.
Nicholas Paulukow
And clearly, it worked—you grew the staff significantly.
Jack Nehlig
Yes. We scored highly in Great Place to Work surveys, and word of mouth in the Harrisburg area meant we never struggled to attract talent.
Nicholas Paulukow
How did working for a family-owned company compare to corporate America?
Jack Nehlig
German Mittelstand companies—medium-sized, family-owned businesses—focus on the future and reinvestment rather than maximizing profit. For example, when U.S. corporate culture might push a salesperson from $2 million to $4 million in sales per year, our owners would hire another salesperson at $2 million to expand our reach. The focus was on market growth, not squeezing more out of fewer people.
Nicholas Paulukow
It seems like that approach also supports a healthier culture.
Jack Nehlig
Exactly. The team felt the pressure to grow, but it was the kind of pressure they liked—because investment signaled confidence in them. That pride fueled more effort, and the cycle kept going.
Nicholas Paulukow
As you transitioned and retired, did your predecessor ask the same sales question you once did?
Jack Nehlig
No. When I left, we handed leadership to internal team members who had been with the company for 25 to 30 years. They knew the formula. We didn’t go outside for a new CEO—there wasn’t even a single person named CEO at first. Leadership became more of a group effort.
They’re doing very well, and they’ll continue to, because Phoenix Contact is a great company with a strong U.S. team. Those leaders have fully embraced maintaining a strong workforce culture and investing in the business.
Nicholas Paulukow
That’s a testament to you—there’s a difference between creating managers and developing leaders. It sounds like you built other leaders, which isn’t easy.
Jack Nehlig
I believe in leadership development, but I don’t think I made those leaders. As John Maxwell says, “I’m not sure leadership can be taught, but it can be learned.”
The leaders developed themselves. My role was to strengthen leadership development as part of our culture. We built leadership principles, provided training, held monthly leadership meetings, and created an environment where leaders could grow.
Nicholas Paulukow
What was the tenure like among your leadership team?
Jack Nehlig
When I left, the three leaders who essentially took over had been there 30, 28, and 19 years, respectively. That kind of tenure says a lot. Of course, when you grow from 200 to 1,000 employees, there are fewer who’ve been there from the early days—but those who stayed really grew with the company.
We had one employee, Mike Nichols, who was about the eighth person hired and had 43 years with the company when I retired.
Nicholas Paulukow
That’s rare these days. When things go sideways, how do you keep yourself grounded as a leader?
Jack Nehlig
Two big events come to mind: the 2008–2009 financial crisis and the pandemic.
During the recession, our U.S. business dropped 20% in a single year. My boss in Germany asked if I could get us through without layoffs. I said, “If you back me, we’ll do it.” We implemented a 5% pay cut across the board, including me, froze hiring, suspended 401(k) contributions for a year, and found other cost-saving measures.
By year’s end, we had actually grown our cash reserves despite the revenue drop. That was a team effort. I still remember a factory worker coming up to me after the pay cut announcement and asking, “You’re taking a cut too?” When I said yes, he replied, “Okay, I’m with you.”
Nicholas Paulukow
Simple and powerful.
Jack Nehlig
Exactly. In tough times, everyone has to be in the same boat.
The pandemic was different. In March 2020, we sent 475 employees home in a week. Our IT team did a phenomenal job getting everyone set up remotely. The factory and warehouse “hero workers” had to keep coming in despite the risks—dealing with masks, distancing, and constant uncertainty.
We stayed visible, communicated frequently, and shared what we knew from medical experts and the government. That transparency helped keep everyone steady.
Nicholas Paulukow
It feels like that wasn’t long ago, but it also feels far away.
Jack Nehlig
True. But both crises reinforced my belief that adversity brings out the best in a strong team.
Nicholas Paulukow
You’ve mentioned servant leadership. How did you instill that mindset in your leaders?
Jack Nehlig
I didn’t use the term “servant leadership” much, but my “people-centric leadership” approach aligns with it. We trained leaders to lead the way we believed in, and we dealt directly with those who didn’t.
About half adapted once they knew we were serious. Others chose to leave for environments that fit them better. When those leaders left, it actually strengthened the team—those who stayed embraced the culture even more.
Nicholas Paulukow
Did the culture here mirror the one in Germany?
Jack Nehlig
Not exactly. The German leadership culture can be more reserved. I once joked with a German colleague that “Germans aren’t happy unless they have a problem—if they don’t have one, they’ll work hard to find one.” He laughed and said I was right.
They also have a saying: “We don’t send flowers,” meaning they don’t give a lot of compliments. But over time, our approach influenced them—they even adopted some of our leadership standards at the corporate level.
Nicholas Paulukow
What advice would you give someone just starting out in leadership?
Jack Nehlig
If you’re new to leadership or have only had a couple of leadership roles, your development and mentorship are key. Find mentors—peers, leaders above you, and even people outside your company. Always focus on learning.
Take leadership classes, but also practice what I call “leadership stalking.” Observe the leaders around you and identify each one’s “superpower.” Figure out what you’re good at and what you could improve on by studying them.
And don’t just watch leaders you admire—observe the ones you don’t, too. Understand what they do poorly so you can avoid it, but also find the things they do well. That way, you gain perspective and maybe even a little grace for them.
Nicholas Paulukow
That takes humility. I’ve had mentors like that—sometimes you don’t appreciate their lessons until later.
Jack Nehlig
Exactly. Education is constant. I used to tell my team, “L has to be greater than C”—your learning rate has to be greater than the rate of change in the world. And with AI, that rate of change is only increasing.
Nicholas Paulukow
We talk a lot about AI. In IT security, we see both the good and the bad.
Jack Nehlig
I compare AI to “the Force” from Star Wars—it can be used for good or evil. It’s up to us to choose the right side.
Nicholas Paulukow
When building your teams, how did you spot leadership potential?
Jack Nehlig
Some people come right out and say they want to be leaders. Those are easy to guide—you train them, assess their skills, and help them improve.
But my favorites were the ones who didn’t push for leadership roles. They had the qualities but lacked confidence. Sometimes I had to go to them personally and encourage them to apply for a role. Many times they came back later saying how glad they were they took the leap.
Nicholas Paulukow
Have you had people who wanted the title more than the responsibility?
Jack Nehlig
Yes. I once interviewed a candidate who said I had to give him the job because he’d set a goal to be a manager by age 30—and his birthday was in four months. I told him, “If you put strict timelines on your career, be prepared to change companies, because businesses follow their own timelines, not individual ones.”
Nicholas Paulukow
If you could write a letter to your 35-year-old self, what would it say?
Jack Nehlig
I’d tell myself to keep growing and adapting. Many of my career moves were lateral, but they gave me a broader perspective and made me a better leader. I always saw it as helping the company where I was needed while building my own skills.
Nicholas Paulukow
That reminds me of advice I got early on—money comes later, but knowledge is the real power.
Jack Nehlig
I agree. If you focus on taking on challenges and growing, the money will follow.
Nicholas Paulukow
Any books or resources you recommend?
Jack Nehlig
The 7 Habits of Highly Effective People by Stephen Covey is a great foundation. I also like John Maxwell’s books and Simon Sinek’s work—especially Start with Why.
For newer leaders, LinkedIn Learning is fantastic. For about $240 a year, you get access to thousands of leadership modules you can do anytime. You don’t have to wait for a training budget or an invitation.
Nicholas Paulukow
That’s a great resource. As we wrap up, any closing thoughts?
Jack Nehlig
One quote has always guided me, from Lao Tzu: “The ultimate goal of leadership is when the work is done, they’ll say they did it without you.”
If you’ve prepared your team well, they won’t need to rely on you. And that’s the point—it’s not about you.
Nicholas Paulukow
I love it. Thank you, Jack. This has been an incredible conversation about people-first leadership, culture, and growing teams. You’ve reminded us that leadership isn’t about control panels or corner offices—it’s about connection, character, and coffee chats that turn into careers.
Jack Nehlig
Thank you, Nick. It’s been an honor to be here.
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