What Is The Best Alternative To A Negotiated Agreement

Lesson: Instead of assuming that the deal displayed on the board matches point by point with your BATNA, translate your BATNA to fully understand what this means for the current negotiations. For more information, see Know Your BATNA – The Power of Information in Negotiation. The best alternative to a negotiated agreement (BATNA) is the approach that a party to the negotiations will take if the talks fail and no agreement can be reached. Negotiators Roger Fisher and William Ury used the term BATNA in their 1981 bestseller “Getting to Yes: Negotiating Agreement Without Giving In.” A party`s BATNA refers to what a party can rely on if a negotiation proves unsuccessful. If BATNA is strong enough, it is possible to negotiate on very good terms, because the alternative to the start of the negotiations is still a good result. Conversely, when BATNA is weak, the negotiating position is weak, as there is no good alternative to use. Given the importance of BATNA, some steps need to be taken to achieve a better negotiating position. These steps are: The performance of your BATNA gives you the leverage to ask for more. If you don`t get what you`re looking for, then you can turn to your best alternative. A strong BATNA is like a hot and fuzzy insurance. A strong alternative offers you two possibilities. Either they make an agreement on more advantageous terms, or you just say “no business” because you have a good alternative plan. On the other hand, contestants may have “different images” of BATNAs that exist, which can lead to a dead end or even insolubility.

For example, both parties may think that they can win a dispute if they decide to sue or force him. If BATNAs on both sides tell them they can continue and win the conflict, the likely outcome is a power struggle. If the BATNA is actually much better than the one on the other side, the side with the best BATNA will probably prevail. However, if the BATNAs are about the same, the result is much less safe. If the conflict is costly enough, the parties may finally realize that their BATNA was not as good as they thought. The dispute will then be “ripe” again for negotiations. In this case, there is a potential agreement area — $6,000 to $7,500. Somewhere in this area, the two sides should be able to agree. Imagine you took a course of negotiation.

This entry was posted in Uncategorized. Bookmark the permalink.