Negotiation Series: Best Alternative to Negotiating an Agreement (Part I)

A new year, another opportunity to assess where we are in life—you may be contemplating a vacation, a job change, house renovations, or ways to encourage your children to perform better in school.  Whatever the situation, you will undoubtedly be faced with countless opportunities to negotiate; and because negotiations will play such a substantial role in your success in the year to come, it would be useful to understand and get comfortable with your BATNA in each situation.

Let’s start with what BATNA is—a BATNA is the Best Alternative to Negotiating an Agreement and is the course of action you would take if you were to decide not to accept the terms of a negotiation.  For example, if you are negotiating with your child for better grades and the child agrees to study more if you buy her a car, then your BATNA might be to accept whatever grades she gets without the promise of a car.

Although it’s nice to have favorable BATNAs, a BATNA does not have to be one that you like.  For example, if you are deciding whether or not to accept a job promotion that would require you to relocate your family, your BATNA might be to remain in your current position and forego the promotion.   In this situation, you may have an opportunity to improve your BATNA by negotiating for the same responsibilities in the current location, perhaps without an increase in salary or with fewer direct reports.  Think of your BATNA as a living entity that is capable of growing or declining, depending on the amount of attention that you give it.  Neglect your BATNA, and surely it will not be the best it can be.  Nurture it, and it becomes a powerful tool in any negotiation.

Because your BATNA is such a powerful ally, do not reveal it too soon or at all during a negotiation.  Only if your BATNA is so good you wouldn’t mind accepting it over any negotiated outcome should you reveal it to your counterpart in the negotiation.  In this case, you are probably only expecting to improve the agreed upon terms marginally over your BATNA.  Also, you may consider revealing your BATNA as a last resort in the negotiation: negotiations are stalled and you’ve got nothing to lose by revealing your BATNA, then by all means let the other party know that you are going to settle for your BATNA.

As 2010 begins to unfold, take a closer look at the negotiation strategies and techniques that you use in your personal and professional lives.  If you are not using your BATNAs to their fullest, then stop and assess how knowing your BATNA and how assessing and improve the strength of your BATNA can improve the outcomes of all your negotiations.

This is part I of a multi-part series on BATNAs.  So, stay tuned for more on how to use BATNAs to improve your position in any negotiation.

Posted by: Tamboura Gaskins at 1 January 2010 10:33 am | Category: Negotiation | Tags: BATNA, borrowing, Business Management, Business Plan, Fundraising

Back to Blog