PRAM Model
What Is the PRAM Model?
The PRAM model is a four-step model for negotiation that is planned to bring about a mutually beneficial arrangement for the two players included. PRAM is an abbreviation for the words "Plans, Relationships, Agreement, and Maintenance."
How the PRAM Model Works
The PRAM model was developed to assist parties with dealing with the whole negotiation process from beginning to end. The cycle was developed by creator and speaker Ross Reck.
The PRAM model permits the two players in a negotiation the opportunity to benefit and satisfy their objectives. All in all, the PRAM model doesn't regard negotiations as a zero-sum game where one party benefits to the detriment of the other.
The model depends on relationship management, since an underlying mutually beneficial agreement helps lay the foundation for additional productive negotiations and agreements later on.
Steps in the PRAM Model
The four sequential strides in the PRAM model are adequate planning, building relationships, agreeing, and keeping up with these relationships.
Adequate Planning
This is the primary stage simultaneously. As of now, the parties included will try to figure out what they can provide for one another through mutual motivation. The planning stage is the beginning of the relationship between the two players and is like a 100-100 proposition, as opposed to a 50-50 split. In a 50-50 split, an agreement is seen as a compromise situation, while in a 100-100 proposition each party has an equivalent balance on the grounds that each party is partaking in the compromising. This outcomes in mutual benefits.
Building Relationships
When the plan has been developed, the two players can now begin to foster their relationship with one another. This is an exceptionally urgent phase, and it requires a great deal of investment since it depends on each party being upfront and genuine with the other.
Here, the two players can lay out trust and start to guarantee each other that they will actually want to satisfy the duties, obligations, and commitments illustrated to each other.
Agreeing
Since the relationship has been laid out, the different sides can figure out what type of agreement they will acknowledge. In the event that the initial two stages have been done accurately and with great care, this part of the model ought to be quick and simple. Working through this point ought to just mean that the two parties are dealing with the subtleties.
Keeping up with Relationships
This is the last stage of the cycle. After the agreement has been reached, the different sides can now focus on all that they have illustrated in the previous stages. For the model to find success, each party needs to keep up with all that preceded: the plans, the relationship, and the agreements.
Illustration of the PRAM Model
Joint ventures are a great instance of utilizing the PRAM model in real life. For instance, assume there is a junior mining company that has embraced an exploration project for a gold venture. It can begin fostering a plan with a more settled company. They can figure out who will play every job, what each will offer that might be of some value, and how each will benefit from the partnership.
Maybe the senior company will bring equipment and nearby information on the laws, while likewise giving marketing for the project. The junior company attempts the geographical exploration and assessment by its engineering team.
The two companies will build a relationship, possibly by portraying how they will satisfy their jobs such that will benefit the two players.
Next, the two companies will think of a contract. In the agreement stage, the two partners will conclude their agreements — all that was guaranteed to one another in the previous stages.
At long last, the two companies will keep up with their project and maybe carry more individuals into the crease. They keep on delivering on their commitments. They might even choose to take on another project together.
Features
- The PRAM model was developed by creator and speaker Ross Reck.
- The PRAM model endeavors to give a negotiation path in which the two players benefit, rather than one benefiting at a cost to the next.
- The four sequential strides in the PRAM model are adequate planning, building relationships, agreeing, and keeping up with these relationships.
