Erica Koenig
Chief Human Resource Officer
SPS Commerce
Episode 170
Culture is the differentiator: Why strategic HR builds people first, then tech.
Current chapter: Built by People podcast features insights from world's top HR leaders
Built By PeopleMay 28, 2025 · 11:45
Thesis
“Erica Koenig's core belief is that strategic HR involves deeply understanding business needs, proactively building foundational people capabilities before implementing technology, and recognizing that culture is the ultimate differentiator that can make or break critical business initiatives like M&A.”
Show notes
Erica Koenig was days away from launching a new performance management system when she stopped the whole thing. Her team had done the work — the platform was ready, the rollout was planned — but she'd just realized something that changed the calculus entirely: her managers didn't actually know how to give feedback.
Now CHRO at SPS Commerce, Erica has spent a career making the kind of calls that take real nerve: delaying tech implementations to build human capabilities first, pushing back on M&A teams who want to rush cultural integration, and walking into rooms as a new leader where she had to be honest about gaps the previous team had been ignoring. Her path to HR wasn't linear — she started pre-med, ended up in psychology and social work, and fell into business almost by accident — but every detour seemed to sharpen a particular instinct: that the fundamentals of people strategy are harder than they look, and that technology only amplifies what's already there, for better or worse.
Her M&A insight is especially worth hearing. Corp development teams, she observes, often focus almost exclusively on financial due diligence while treating culture as an afterthought — and that's exactly where integrations fall apart. "Never underestimate the power of culture," she says. "It can make or break an acquisition." The leaders who get it right start cultural assimilation early, aggressively, and with genuine curiosity about what the acquired organization does well.
- Why she paused a performance tech rollout — and what she built instead to address the actual capability gap underneath
- Turning around a complacent HR team — the partnership-first approach she used at UnitedHealth Group to earn trust and raise standards
- Building capabilities before implementing tech — the sequence that determines whether your HR system gets adopted or abandoned
- The cultural failure mode of M&A — why corp development teams miss it and what HR leaders need to push back on
- Hire people smarter than you — and why the questions you ask from outside expertise often unlock the deepest insights
- Taking career risks before you feel ready — Erica's advice on discomfort as the fastest route to growth
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What you'll take away
- 1HR professionals should prioritize building foundational people capabilities (e.g., performance management skills) before implementing technology, as tech alone won't solve underlying issues.
- 2In M&A, never underestimate culture; conduct cultural assimilation early and assertively address cultural differences to prevent integration failures and talent loss.
- 3To transform HR into a strategic partner, actively listen to business needs, build trust, and demonstrate the tangible value HR can provide.
- 4Take risks in your career, embrace new challenges, and surround yourself with people smarter than you to foster a stronger, more capable team.
What most organizations get wrong
- •Delaying a highly anticipated HR tech implementation (performance management system) to first build manager/employee capabilities, against the immediate desire for a tech solution.
- •Corp development teams often overlook crucial HR/cultural due diligence in M&A, focusing primarily on financial bottom lines, which HR leaders need to push back on more assertively.
In Erica's words
“I realize that our employees and managers don't actually know how to do good performance management. They don't know how to give good feedback. They don't know how to coach. They don't know how to put development plans together. And honestly, if I implement this technology, that's not going to fix the problem.”
Highlights the critical insight that technology is an enabler, not a solution for fundamental skill gaps in people.
“Never underestimate the power of culture. It can make or break an acquisition integration.”
Emphasizes the often-overlooked but crucial role of cultural fit in M&A success.
“Don't be afraid to hire people smarter than you and surround yourself with people that fill in your gaps. Because as a whole, a collective whole, you're going to be a much stronger team.”
Provides practical advice on building high-performing teams through strategic hiring and humility.
“I didn't have experience in all those areas, and I came to lead a team of experts. But what was amazing about leading those experts is I learned a tremendous amount from them. And sometimes I was asking questions that I thought were the most obvious that led to really in-depth, meaningful conversations.”
Illustrates the value of curiosity and learning from subject matter experts when leading outside one's direct experience.
The problems this episode addresses
- •HR teams becoming complacent or having skill gaps that business leaders don't recognize, leading to underperformance and missed strategic opportunities.
- •Employees and managers lacking fundamental skills in effective performance management, such as giving constructive feedback, coaching, and developing talent.
- •Cultural misalignment and poor cultural assimilation during mergers and acquisitions leading to significant talent loss, integration challenges, and ultimately, failed business outcomes.
- •Overreliance on HR technology to solve people and process problems, rather with than addressing underlying capability gaps first.
In this episode
Built by People podcast features insights from world's top HR leaders
Built by People
Dave Zirin shares a little bit about his career journey
The Journey of the Chief Talent Officer
You transformed the HR team at UnitedHealth Group into a strategic partner
How to Transform an HR Team's Culture
You've talked about your passion for global HR and implementing new HR technologies
How to Lead a HR Technology Implementation
Can you tell us about a particularly challenging merger and acquisition experience focusing on cultural integration
The Power of Culture in Merger and Acquisition Integration
Erica, what parting advice would you like to share with our community
Erica Hewitt on Leaving the Company
Topics covered
Organizations and entities mentioned
Full transcript
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