How do you use BATNA (best alternative to a negotiated agreement) to evaluate options in negotiation?

1 What is BATNA?

BATNA stands for best alternative to a negotiated agreement. It is the most favorable outcome you can achieve if you walk away from the negotiation without reaching a deal. Your BATNA is not a specific offer or proposal, but a realistic scenario that reflects your interests and needs. For example, if you are negotiating a salary with a potential employer, your BATNA might be the salary you can get from another employer, or the income you can earn from self-employment. Your BATNA is your fallback option, your plan B, or your bottom line.

2 How to identify your BATNA

To identify your BATNA, you need to do some research and analysis before and during the negotiation. Explore the alternatives that are available to you, and evaluate their attractiveness and feasibility. You can use the following steps to identify your BATNA: list all the possible alternatives, assess the value and likelihood of each alternative, and choose the best alternative as your BATNA. Consider both internal and external alternatives, such as changing your goals, finding another partner, or pursuing a different opportunity. Estimate how well each alternative meets your interests and needs, and how realistic and attainable it is. Rank the alternatives from best to worst, based on your assessment. Your BATNA is the benchmark against which you can compare any offer or proposal from the other party.

4 How to use your BATNA in negotiation

Your BATNA is not only a tool to evaluate your options, but also a tool to influence the negotiation process and outcome. You can use your BATNA to set your reservation point, which is the minimum acceptable offer or proposal that you are willing to accept. Additionally, you can communicate your BATNA to signal your strength and credibility in the negotiation, but be careful not to reveal it too early, too explicitly, or too aggressively. Lastly, understanding the other party's BATNA can help you assess their interests and needs, and their reservation point. You can try to infer the other party's BATNA from their behavior, statements, or questions, or you can ask them directly or indirectly.