The Biz Cache

BATNA stands for “Best Alternative to a Negotiated Agreement”. The concept was introduced in the book “Getting to Yes” by Roger Fisher and William Ury in 1981. As a negotiator, knowing your BATNA will help you make the right decision in a negotiation.

Why have a BATNA:

• Avoid making undesirable decisions. Negotiations can be stressful and you often have to think on your feet. The process of discovering your BATNA will help you fully understand your own priorities.
• It helps you assess your options. You can compare the negotiated outcomes to your BATNA in order to make an informed decision on whether to accept a proposal or pursue your BATNA.
• Assessing your priorities reveals areas for flexibility. When you are determining your BATNA, you will uncover what is most important to you. Simultaneously, you will also determine where you can be flexible. This may lead to creative solutions.
• Gain leverage with a strong position. You will go into the negotiation with a safety net. Your BATNA gives you power by aiding you to respond confidently. You know your alternative thoroughly and will not accept a more unfavorable alternative.
• Manage risk. Having a fallback options reduces the risk of being at the mercy of the other party if their proposal doesn’t meet your needs.

How to develop your BATNA:

1. Identify what is most important to you. Make a list of your priorities, needs and interests. Evaluate the list, ranking items most to least important.
2. Explore options outside of the negotiation. Research options outside of what is being negotiated. Research other partners, services, offers and the outcome of not making a deal.
3. Evaluate options from #2. Look at cost, benefits, resources, time (schedule), outcomes and feasibility of each alternative. Consider how well each option aligns with your interests. Quantify data when possible. Think about any risk associated with each alternative.
4. Ensure that you are truly prepared to implement your BATNA if necessary. Your BATNA must be an option you are willing to accept if the negotiated proposals do not meet your requirements. If you aren’t willing to accept your BATNA- you are just bluffing, and it won’t help you.
5. Keep your BATNA to yourself. Don’t reveal your BATNA or you will weaken your negotiating position. Your BATNA is your last acceptable option. Resorting to the BATNA means that the negotiation has not panned out. Revealing your BATNA too soon tells your opponent your bottom line- that should be YOUR strength not theirs.
6. Re-evaluate regularly. Situations change. New information emerges. Priorities change. Be open to updating your BATNA over time if necessary.

If you would like to know more. I would suggest reading “Getting to Yes: Negotiating Agreement Without Giving In” by Roger Fisher and William Ury.