Batna – Best Alternative to a Negotiated Agreement

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BATNA – Best Alternative to a Negotiated Agreement

- Need to have great alternatives

- Should have at least 3 if possible

- Proponents will always try to eliminate your BATNA or stop you from exploring your options

o Ex: Job offers

- People become irrational if you only have one alternative

7 Elements

Don’t assume their interests are the same as mine

Standards – does it meet fair and legitimate guidelines

- Can be law, years of precedent, etc.

Need full commitment and details on all parameters of the deal

Relationship is dependent on situation

Have a concise agenda

- Here are our issues, etc.

- Keeps negotiation on track

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Reservation value should be developed by BATNA

Need to spend first 5-10 minutes building report/commonality with the other person

Talk about issues that have least resistance first

Set checklist: show enthusiasm, am I building connection, etc. rapport

Listen for the nibble: the big issue but they won’t say it

“I can’t help but notice there is something wrong”

Then ask questions about their answers

Repeating a complaint gives them validation

Summarize the history of what led us to the table/decision

If I understand us right now the issues are xyz

Shouldn’t always tackle biggest issues first

I’m not credible source

My job in supporting my argument is finding sources

Don’t give hypotheticals or would you, could you.

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Always keep my goals prevalent and how I will achieve them

Never reveal reservation point unless it is better than BATNA

If you know what they are going to ask for/their position then I should make the first offer

- Negotiation usually doesn’t move far from the anchor (7%)

Standards: Three dimensions - legal, between you and I, and market and industry