BATNA

BATNA is a term coined by Roger Fisher and William Ury in their 1981 besteller Getting to Yes: Negotiating without Giving In. It’s the acronym that stands for “Best Alternative To aNegotiated Agreement”.

A good BATNA allows you to walk into any negotiation in a more comfortable position.  If you know you have a good alternative to the current negotiation (that is, if this negotiation does not occur), you are in a stronger negotiating position and chances are you will walk out with a deal that is more beneficial for you.

For example, one of my clients decided to change his career. In light of this, we prepared his BATNA prior to his negotiation with a perspective employer. Since there was no urgency for him to leave his current position, his BATNA was to continue working in his current job.

There is a misconception amongst negotiators that BATNA is your bottom line during the negotiations.  But, BATNA is the complete alternative to the negotiation, and not the bottom line you would accept. In a great article by Dr. David Venter on Negotiation Academy site, explains in detail that “a viable BATNA acts as an essential insurance policy”

How to figure out your BATNA.

In order to figure out a strong BATNA, you must do a little preparation and follow these steps:

1. Think about all available alternatives that may be considered should the negotiation fail to come up with an acceptable agreement. Think of what would happen if this negotiation fell through, where would you be?
2. List and assess these alternatives carefully. Think about each option and consider whether it will fit your ideal plan.
3. Choose 2 or 3 most favourable alternatives to keep in your mind (not disclose to the other party), when you are in the actual negotiation.

These steps may seem simple enough, but we encourage you to consult with us in order to achieve the ultimate BATNA.

Happy negotiating.