Mastercard's Chief People Officer – Michael Fraccaro

Summary

CHROs are having a special moment right now – and rightfully earned, given that HR is arguably the most important role in an organization. As such, I'm excited to share my conversation with Michael Fraccaro, who currently serves as Mastercard's Chief People Officer. We discuss Michael's early career, which began as a high school teacher in Sydney as well as where his interest in HR was sparked (in university and beyond).

Michael and I cover the evolving role of the CHRO, particularly the emphasis on adaptability over the past few years. He points out the importance of lifelong learning and how Mastercard's internal talent marketplace facilitates this ethos for employee career growth and development. The platform allows employees to showcase their skills and interests, matching them with relevant projects and mentorship opportunities, ultimately enhancing the employee experience. Michael also underscores the necessity of executive support as a strategic approach to successfully implement such initiatives.

We also discussed implementing new initiatives at a company the size of Mastercard. Michael highlights the need for clear objectives, executive buy-in, and meticulous program management to ensure success. Moreover, he hits on the significance of measuring outcomes and shares metrics used to evaluate the effectiveness of initiatives such as the talent marketplace (these include: employee engagement, utilization rates, and career mobility, illustrating the tangible benefits derived from its adoption).

We then jump into organizational culture and Michael underscores its critical role as the essence and DNA of Mastercard. He outlines the company's approach to fostering a strong culture aligned with its purpose and mission, emphasizing values like decency and transparency. Michael elaborates on the Mastercard way, a framework comprising pillars of creating value, growing together, and moving fast, which are embedded into various aspects of the organization, including recruitment and performance management. Additionally, he discusses the development of a culture health index, demonstrating the company's commitment to monitoring and nurturing its culture at all levels, from the frontline to the boardroom.

We also cover key principles guiding his leadership philosophy, emphasizing trust, adaptability, and the importance of letting go, at times, to foster shared accountability. Drawing from his experience as a school teacher and various mentors throughout his career, he highlights the significance of feedback and learning as essential components of effective leadership. Additionally, he touches on the discipline of effective communication, stressing the enduring impact of written language and the importance of clarity and precision in conveying messages.

Shifting the conversation to the role of AI in HR and organizational operations, Michael shares his insights into Mastercard's approach to integrating AI technologies. He discusses the widespread adoption of AI across product development, fraud detection, and customer care, highlighting its role in enhancing efficiency and productivity. We also discuss the importance of responsible AI practices, including human oversight in decision-making processes. Michael also explores the potential of AI in improving workplace satisfaction and well-being, illustrating initiatives such as integrating well-being reminders into daily workflows to promote mental health and work-life balance.

On that point, Michael rightfully feels that the beset way to address mental health and well-being in the workplace is to emphasize the importance of open communication and vulnerability, particularly among executive leadership, to de-stigmatize mental health issues. Through initiatives like the mental health champions program and holistic well-being seminars, Mastercard aims to provide comprehensive support to employees worldwide. Michael also highlights the company's commitment to flexibility and employee satisfaction, exemplified by policies such as remote work options and stock purchase plans, reflecting a forward-thinking approach to the future of work.

Michael and I wrap up our discussion riffing on the future of work. Michael outlines Mastercard's focus on adapting to changing workplace dynamics, including embracing gig work and fostering flexibility. Through initiatives like workplace design modifications, flexible work policies, and employee stock purchase plans, Mastercard aims to create an authentic and supportive work environment that promotes loyalty and trust. Lots of lessons here for companies of all sizes.

Enjoy!
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Bio

Michael Fraccaro is an innovative human resources leader with over three decades of experience steering global companies through organizational and cultural transformations to achieve significant business outcomes. Currently, he holds the position of Chief People Officer at Mastercard, where he adeptly leads a global HR team in crafting and executing forward-thinking human capital management strategies that foster the company’s growth and success. Additionally, Michael is a key member of both the Management Committee and the Executive Leadership Team at Mastercard.

In his tenure at Mastercard, Michael has been instrumental in shaping the company's culture and employee experience, adeptly navigating the evolving landscape of work and the workplace. His efforts have been pivotal in defining and embedding the behaviors that will shape the future workforce of Mastercard. Under his leadership, the HR team has played a critical role in enhancing organizational agility, building leadership capabilities, and fostering an environment where top talent thrives, as evidenced by consistently high Glassdoor ratings.

A fervent advocate for diversity, equity, and inclusion, Michael has driven Mastercard to receive numerous industry accolades during his tenure as CPO. The company has been recognized in the DiversityInc Top 50 Companies for Diversity, named among Fast Company’s Best Workplaces for Innovators, and included in the Bloomberg Gender-Equality Index. Michael’s thought leadership is frequently showcased in industry articles and podcasts, where he discusses topics such as the future of work, leadership and succession, people analytics, and cultural transformation.

Before becoming CPO, Michael served as Executive Vice President of HR for Mastercard’s Global Products and Solutions business from 2012, supporting the company’s expansion into key markets and new business lines. He also oversaw the global HR integration of new acquisitions and joint ventures. Prior to his tenure at Mastercard, Michael was a core member of the HR leadership team at HSBC Group for nearly 12 years in Hong Kong and held senior HR positions in banking and financial services across Australia and the Middle East, gaining extensive cross-cultural experience.

Michael’s academic credentials include a Master of Applied Science in Communication Management from the University of Technology, Sydney, and a Bachelor of Education from the Australian Catholic University. He is accredited in change management by the Australian Graduate School of Management and has completed leadership programs at Duke University's Fuqua School of Business and INSEAD.

Beyond his professional achievements, Michael serves on several prestigious boards and councils. He is a member of the SHRM Executive Advisory Council, the Board of the HR Policy Association, 50:50 Women on Boards, and is active in the NY Jobs CEO Council and HR50. Michael also holds the position of Board Chair for the Young People’s Chorus of New York, reflecting his commitment to nurturing future generations.