BATNA

Best Alternative To a Negotiated Agreement

BATNA
The Best Alternative To a Negotiated Agreement tells

you whether a situation is worth undertaking or continuing in light of the alternative ways you might serve your interests. One should walk in a negotiation process understanding our capacity to resolve issues on our own or with the help of a number of other parties. As negotiations are about making choices, so we should first decide on the best way to resolve, determine with whom we are going to negotiate. BATNAs are a measure of the balance of power among the negotiating parties. Keep an eye on how BATNA changes & gives a measure of modifications in ones relative power.

Understanding BATNA
It helps in deciding when to walk out of a

negotiation than to continue. It is important to be aware of other parties statements, that might indicate that it is useless to carry on the negotiation. If we understand BATNA, we know the range of resources available to deal with a problem we want to resolve

Walking-in BATNA
It consists of resources over which you have a

control or influence that can be used to help you meet your goals and serve your interests As one proceeds in a Negotiation, you learn something new and BATNA changes. Thus, BATNA becomes a dynamic element of a negotiation process. Some ex. Of understanding BATNA are; Are there many competitors looking for the opportunity to do business with us? Do we face serious competitions? Are we up against a deadline.

BATNA is not a bottom line

It involves various ways to achieve a bottom line ,

which constitutes the elements of BATNA. For ex. Achieving a sales objective by analyzing various alternatives on the basis of different parameters like customers potentiality, structure of deals etc has sales objective as a bottom line, but is opening possible ways to reach a resolution.

Dynamic BATNA
During negotiation we are looking for information

about our own BATNA and that of the other parties. The better we understand other parties BATNA, the greater are the chances of reaching a wise agreement. One should ask probing questions in order to gain information that provides positive clues to carry the negotiation forward and understanding whether other party is bluffing. Every time we gain information our BATNA changes. The negotiation preparation process should include factors that might rise during negotiation that could change our BATNA.

Elements of BATNA
It is a mixture of factors those influence the

development & implementation of the negotiation strategy, tactics, conclusion about whether continuing the process is best way to pursue your interest. As BATNAs are dynamic in nature, the elements are: Deadlines, alternatives, own & other parties resources, information, experience, interests & knowledge.

Deadlines
Your BATNA would be considered weak if you are

suffering from deadlines. If you counterpart is aware of your deadlines, it might lead to; a. Counterpart will keep you talking and you will be left with lesser chances to investigate alternatives offered by competitors. b. They will act more positionally as they realize well that you do not have time to negotiate. c. If you are a buyer, the deadline may offer you with attractive deals from sellers.

Alternatives
Measure how each choice of yours influences the

negotiation to achieve favorable results. One should quit if matters get worst.

Own & other parties resources

One should determine the available resources

and should focus on more than one way to reach your interest. Taking a positional approach: This is the only way it can be done, limits your approach & weakens your BATNA. If the resources offered by other company are more comprehensive or useful than yours, their BATNA is stronger in that area. ASK QUESTIONS BEFORE & DURING NEGOTIATION TO UNDERSTAND WHAT RESOURCES THEY CAN CONTROL OR INFLUENCE: ACCURATELY POTRAYS THE RELATIVE STRENGTH OF THE PARTIES.

Information
The more information we have about the subject

of negotiation, the capacity to understand our BATNA & counterparts BATNA becomes greater.

Experience
Our experience of subject matter of each

negotiation, gives us a sense of level of sophistication, capacity to make or fulfill agreements, negotiation style. If one lacks experience, the colleagues experience can help us in our assessment of walking in BATNA.

Interests
There should be a clear understanding of our

interests, priority, significance of each interest, and we should know how possible solutions can help achieving those interests. The same applies while observing other partys BATNA.

Knowledge
The more knowledge we have regarding the

subject matter of a negotiation, the characteristics of the parties with whom we are negotiating, the stronger out BATNA becomes in competence. A negotiator who shows confidence because he is knowledgeable about the subject matter, understands the negotiation process and is clear on objectives, should be taken seriously by other negotiating parties. Arrogant negotiators with strong BATNA generate personal disliking that provokes other party to negotiate more aggressively.