Best Alternative to a Negotiated Agreement
A best alternative to a negotiated agreement (BATNA) is a course of action that a party engaged in negotiations has determined should be taken if talks fail and no agreement can be reached.
Negotiation researchers Roger Fisher and William Ury coined the term BATNA in their 1981 bestseller, "Getting to Yes: Negotiating Agreement Without Giving In."
A party's BATNA is the position it will fall back on if negotiation proves unsuccessful.
Definition: The Best Alternative to a Negotiated Agreement (BATNA) refers to the course of action that a party will take if negotiations fail and no agreement can be reached. It serves as the negotiator's strongest fallback position, providing a clear bottom line.
Origin: The concept of BATNA was first introduced by Roger Fisher and William Ury in their 1981 bestseller, Getting to Yes: Negotiating Agreement Without Giving In. The book emphasizes the importance of understanding and developing one's BATNA to maintain an advantage in negotiations.
Categories and Characteristics: BATNA can be categorized based on the context and goals of the negotiation. For example, in business negotiations, a BATNA might be finding other potential partners or clients; in personal negotiations, it could be choosing other job opportunities or living arrangements. Key characteristics of BATNA include:
- Realism: BATNA must be feasible and realistic, not idealized.
- Quantifiability: BATNA should be quantifiable to allow for comparison during negotiations.
- Flexibility: BATNA should have some degree of flexibility to adjust according to the negotiation process.
Specific Cases:
- Case 1: Suppose you are negotiating a job contract with a company, but you already have another job offer from a different company as a backup. This is your BATNA. If the current negotiation does not meet your expectations, you can choose to accept the other job offer.
- Case 2: In a real estate transaction, the seller's BATNA might be to rent out the property instead of selling it. If the buyer's offer is too low, the seller can choose to rent the property to secure a steady rental income.
Common Questions:
- How do I determine my BATNA? First, evaluate all possible alternatives, then choose the most feasible and advantageous one.
- What if the other party's BATNA is stronger than mine? In this case, you need to identify weaknesses in the other party's BATNA or improve your own BATNA to gain a better position in the negotiation.
