It's hard enough to change a team's culture, but how about a 28,000-person organization? That's the job Mastercard's chief human resources officer Michael Fraccaro undertook last year when deciding to overhaul the $350 billion financial service firm's shared ethos, referred to internally as the Mastercard Way.
As CHRO, Fraccaro helped set the new organizational culture and related standards. But his most challenging task was developing new ways to measure employee buy-in. So he put data behind it.
Starting this year, Mastercard will tie job performance to how well employees have adhered to the company's newly established culture. Fraccaro spoke with Fortune about why creating the ideal corporate culture has become priority No. 1:
What was the catalyst for reimagining culture at Mastercard?
Fraccaro: Our new CEO came on board in 2021 and, as part of his strategic focus, reiterated that we need to build on our cultural foundation, reinforcing the great aspects and leaning into certain areas. We now position our culture around three pillars: creating value, growing together, and moving fast.
How will culture be measured moving forward?
It'll be part of our rewards and ratings and based on what goals and targets people achieve and how they do it.
How will you measure the Mastercard Way's success and ensure it touches all 28,000 employees?
One, obviously, is measuring it through our employee experience surveys, and the other will be through the performance management system.
In 2022, we sent out a survey to allow employees to give feedback on how effective their leaders were in recognizing them, giving feedback or caring about well-being. And as we think about the performance management system in 2023, we will also collect feedback on the nine behaviors within the Mastercard Way.
We also have a quarterly Culture Health Index looking at engagement, retention, succession and inclusion. We've got ranges on the index that we measure and share with the board to provide insight into areas we're progressing and where we need to do more.
Given the broader market conditions, why is it so important to measure culture right now?
What we've all been living through is almost like a social experiment. Measuring, tracking, and having data-based conversations helps to develop and inform better human capital strategies and determine whether you're on the right track.
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