BATNA

BATNA

1. Definition

   • BATNA based strategies tend to be friendly, fast and effective. They're ideal for win-win negotiations. 
   • A Best Alternative to a Negotiated Agreement (BATNA) is what you will do if negotiations fail to reach an agreement
     • Understanding your own BATNA and those of your opponents is key to an effective negotiation strategy
   • BATNA based strategies tend to be friendly, fast and effective. They're ideal for win-win negotiations.
   • Make sure which alternatives are available
     • define your maximum target and your minimum target
   • The better your BATNA the more power you'll have in negotiations.

2. Example

   • A popular Footballer that has 50 different Clubs interested in playing him for their team.
     • This gives the Footballer plenty of negotiating power
       • Strong BATNA
       • He can ask each Club for their highest offer
         • He can then prioritize the offers and ask the Clubs if they can beat the best offer
           • He can continue this process until no Club is willing to beat his best offer
   • Your BATNA is the lowest offer you're willing to accept. It's your closely guarded secret
     • Nevertheless you might need to reveal it in a final attempt to
       • if you're an Employer in salary negotiations for a Product Management position the candidate may insist on a salary of $140,000
         • However, your company never pays Product Managers any more than $100,000
           • You may have to reveal your salary ranges to get the candidate to lower his/her offer

3. Determining

   • BATNA is not your target or goal. Create a ist of actions and alternatives for the case that it does not come to an agreement with your actual target
     • The alternatives have to be prioritized
   • The worst thing that can happen in negotiations is that you fail to reach an agreement and you take your BATNA option

4. Varieties

   • When are the alternatives realizable
   • Where are the alternatives realizable
   • Who and what is needed to realize alternatives
   • Are there further impacts in short-term or long-time

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