BATNA

BATNA

1. Ability

   • Part of the dealmaking and negotiation strategy

2. Acronym of

   • Best Alternative To a Negotiated Agreement

3. Information

   • Negotiation Skill Tips
     • Clarify your negotiating counterpart's authority
       • Clarify the extent to which the counterpart is empowered as an agent in negotiation to make proposals on behalf her organization
       • Be willing to reveal your own negotiating mandate in return
     • Consider adding negotiators
       • Ask to bring in someone who has more relevant expertise and greater decision making authority
     • Know when to walk away - know your BATNA
       • What if you are unable to cultivate good outside alternative to further objectives?
         • Try to build relationships in your counterpart's organization
         • Work around the obstacle and build a coalition that will support your proposals

4. Finding your best BATNA

   • Translate your BATNA to the current deal
     • Take the time out for an explicit translation process to ensure you are not giving up a good deal for a BATNA
   • WATNA?
     • Worst Alternative To a Negotiated Agreement
       • If you negotiate on this basis, you will almost certainly get a bad deal
       • In order to not fall over WATNA you must make a Decision Tree
         • Involves graphing the possible outcomes of each decision you are facing
           • Benefits
             • Illuminates aspects of your BATNA that you should shore up before you negotiate
             • Helps you assess your risk tolerance
             • Facilitates the familiar negotiation advice "Look forward and reason back"