Future Ready Leadership With Jacob Morgan Connecting People To Priceless Possibilities: Insights From MasterCard's Chief Human Resources Officer
Michael Fraccaro is the Chief Human Resources Officer of MasterCard. In this role, he is responsible for all human resources functions globally, including driving cultural transformation, building leadership capability and creating a company that is "most valued to work for." MasterCard is about 50 years old with 14,000 employees in 74 countries.
From 2012 until assuming his current role, Michael served as Executive Vice President of HR, Global Products and Solutions. In this role, he supported the company's growth in key businesses and markets and optimized talent programs in a competitive environment. He also was responsible for leading the global HR integration of new acquisitions and joint ventures.
Prior to joining MasterCard, Michael was a core member of the HR leadership team at HSBC Group for nearly 12 years, based in Hong Kong. Earlier, he held senior HR positions in banking and financial services in Australia and the Middle East, working extensively across different cultures.
Michael defines the role of CHRO as one that centers on thinking about the business strategy. He sees his role as one that works to ensure they have the right people in the right roles, strong leadership in place, and the right culture set up in order to make the business as successful as possible.
Within MasterCard in general, it is growing up the core business, diversifying in new markets and new customers segments and building new businesses. In Michael's words: "grow, diversify and build". These are powered by 4 key elements:
- Technology
- Brand
- Data
- People
When hiring MasterCard focuses on several key elements. First of all, can the person do the job? And then, how do people relate to each other? They look at IQ (Intelligence Quotient), EQ (Emotional Quotient), and also DQ (Decency Quotient). Michael says "you want people that are good enough to leave, but happy enough to stay"
One goal of MasterCard is that they want people to feel that it is a decent place. As Michael says, they are "doing well by doing good". They have several initiatives in place that allow employees to have an impact on their surrounding community.
One example of this is MasterCard's policy that gives every employee five days of volunteer leave. They also have a lab in Kenya with the Gates Foundation to develop tools and technologies to help micro-entrepreneurs or farmers there with a payment platform so they can eliminate cash, which has the tendency to be lost, stolen, or used for bribery, etc...
Michael is paying attention to a few trends including:
- Operating models – how organizations are designed and how they are moving towards more agile models
- Geopolitical and social issues – issues like nationalism, where governments are saying they need to process transactions on their soil, etc. They are also thinking about immigration and how that plays a role in their business
How does Michael stay on top of trends?
- Reading various journals and magazines
- Being part of networking associations
- Working internally with a corporate strategy team
What you will learn in this episode:
- What it is like to work at MasterCard
- How MasterCard is impacting communities around the world
- Employee programs that are offered – for example, 'Investing in You' – a matching program for retirement
- How MasterCard competes with the giants in Silicon Valley
- How MasterCard handles mentorship programs
- Trends Michael is paying attention to and how he keeps up with them in a fast paced environment
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