7. Relationship Management and Agreements

Introduction

Effective product leadership extends beyond managing the internal product team; it also requires careful relationship management with other departments and external stakeholders. Ensuring that responsibilities are clear and expectations are managed can greatly enhance collaboration and the overall success of product initiatives. In this document, we will explore two key tools for relationship management—RACI matrix and Power-Interest Matrix—as well as key ceremonies and agreements to foster strong relationships across teams.

1. RACI Matrix

The RASCI Matrix (Responsible, Accountable, Support, Consulted, Informed) is a powerful tool for clarifying roles and responsibilities within a project or initiative. It helps ensure that everyone involved understands their role and the roles of others, reducing the risk of miscommunication or missed responsibilities.

1.1 Definitions:

• Responsible: The individual who is tasked with doing the work or executing a specific task. This person is accountable for completing the work but may not have the final authority.

• Accountable: The person ultimately answerable for the completion and success of the task. This person has the authority to delegate work and is responsible for ensuring that everything is delivered as expected.

• Support: The individuals or teams that assist the "Responsible" person in completing the task. While they don’t have direct responsibility, their support is critical to success.

• Consulted: Individuals who need to be consulted before work begins. These are often subject matter experts or key stakeholders who provide input but are not directly involved in execution.

• Informed: Individuals who need to be kept informed of progress or outcomes but do not have a role in decision-making or execution.

1.2 Example Use Case

At Locaweb, we used a RASCI matrix to define responsibilities for various tasks, such as managing social media, setting product pricing, and defining the product roadmap. Here's an example:

• Social Media Management: Marketing is "Responsible," while Product provides input and is "Consulted." Engineering and UX teams are only "Informed" once social media content is live.

• Pricing: Product teams may be "Responsible," with Marketing and Sales "Consulted" for market fit. UX and Engineering are "Informed" of any changes.

Using a RACI matrix clarifies who needs to be involved and at what level, preventing miscommunication and ensuring accountability for key deliverables.

2. Power-Interest Matrix

The Power-Interest Matrix is another useful tool for managing relationships, particularly for classifying stakeholders based on their level of power and interest in a project or product. This matrix helps prioritize communication efforts and collaboration depending on the influence and interest of different groups.

2.1 Quadrants:

• High Power, High Interest (Key Players): These are the most important stakeholders, often users, customers, or company founders. These individuals or groups should be actively engaged and collaborated with regularly, as they have both the authority to make decisions and a vested interest in the product's success.

• High Power, Low Interest (Keep Satisfied): These stakeholders have significant influence but may not be deeply involved in day-to-day activities. Examples include legal or finance departments. These groups should be consulted as needed, especially for key decisions or regulatory compliance, to ensure their satisfaction without overwhelming them with unnecessary details.

• Low Power, High Interest (Keep Informed): These groups include teams such as customer support or sales, which have a vested interest in the product's success but less direct influence over its development. Regular communication, such as weekly updates or reports, is important to maintain their engagement.

• Low Power, Low Interest (Monitor): These stakeholders have minimal impact on the product and are often part of broader company functions such as HR or general administration. Occasional updates, perhaps on a monthly basis, are sufficient to keep them informed.

By classifying stakeholders this way, product leaders can focus their efforts on engaging with the most influential players while ensuring everyone else is kept informed at the appropriate level.

3. Empathy in Relationship Management

While tools like the RACI matrix and Power-Interest Matrix provide structural support, empathy remains a critical factor in successful relationship management. Empathy isn’t just reserved for users or customers—it’s essential when interacting with colleagues across departments. Understanding their pressures, constraints, and goals allows for smoother collaboration and more productive conversations.

4. Key Ceremonies

Beyond tools, certain ceremonies and recurring meetings are essential for maintaining alignment and fostering strong relationships across teams. Below are some key ceremonies I use in managing product teams.

4.1 Leadership Team Meetings

These are weekly or more frequent meetings with direct reports to discuss operational and strategic issues. These meetings should be driven by the team, not just the leader, and decisions made during these meetings should be actionable even if the leader is not present. Key topics can range from team issues to strategic product direction.

• Format: Record the topic, who proposed it, and any important notes or decisions made. The meeting should have a flexible agenda to allow for deep dives into more complex issues by assigning subgroups to work on specific challenges.

4.2 Product Reviews (Showcase)

Held monthly, the goal of product reviews is to update the entire company on the product team’s progress and results. It is crucial for transparency and helps other departments understand what the product team is working on. A typical agenda includes:

• Reviewing the product vision and goals.
• Highlighting milestones achieved and demonstrating new features or improvements.
• Celebrating successes and discussing challenges faced by the team.

4.3 Product Council

The Product Council is a quarterly meeting to plan what the product team will focus on in the next quarter. It involves high-level stakeholders and presents a 12-month roadmap to show both near-term and long-term priorities. This is also where cross-team coordination happens, ensuring alignment across product, engineering, and other departments.

• Pre-discussions: Hold internal planning sessions before the main council to resolve any potential conflicts between teams and ensure cohesive messaging.

4.4 All-Hands Meetings

All-hands meetings are monthly gatherings with the entire product development team. These meetings serve to:

• Celebrate achievements and discuss key lessons learned.
• Discuss the current status of OKRs and progress made.
• Provide business context through guest speakers or "business drops" from other departments (e.g., marketing, sales) to help product teams understand the broader business environment.

After the meeting, a casual happy hour is often held to build team camaraderie.

Conclusion

Successful relationship management requires clear communication, role definitions, and regular touchpoints with key stakeholders. Tools like the RASCI matrix and Power-Interest Matrix help clarify roles and prioritize efforts, while ceremonies such as weekly leadership meetings, product reviews, product councils, and all-hands meetings ensure that information flows effectively across the organization.

By using these tools and maintaining empathy throughout interactions, product leaders can foster stronger relationships and drive product success.