When it comes to negotiating, it`s important to have a backup plan. This is where the concept of BATNA comes in – the Best Alternative To a Negotiated Agreement. This term was coined by Roger Fisher and William Ury in their book “Getting to Yes: Negotiating Agreement Without Giving In.”
Your BATNA is your fallback option if negotiations fail and you cannot come to an agreement. This could be an alternative deal with another party or simply walking away from the negotiation entirely. It`s important to have a BATNA in mind before entering any negotiation, as it can help you determine your negotiating power and make informed decisions.
Having a strong BATNA can also give you leverage in negotiations. If the other party knows that you have a viable alternative, they may be more willing to compromise and make concessions in order to reach an agreement.
When considering your BATNA, it`s important to think realistically about your options. What are your alternatives to a negotiated agreement? Are they viable? Would they be preferable to reaching an agreement? It`s also important to consider the other side`s BATNA – what alternatives do they have? How strong are their alternatives compared to yours?
It`s important to note that your BATNA should not be used as a threat or a way to bully the other party into making concessions. Rather, it`s simply a backup plan that you can turn to if negotiations fail.
In summary, having a BATNA is an essential part of any negotiation. It can help you determine your negotiating power, make informed decisions, and potentially give you leverage in reaching an agreement. By understanding your alternatives to a negotiated agreement, you can approach negotiations with confidence and increase your chances of reaching a favorable outcome.