BATNA (Best Alternative to a Negotiated Agreement) is a critical concept in negotiation that refers to the course of action a party will take if a negotiation does not result in an agreement. Here are the steps to apply BATNA in a negotiation:
- Determine your BATNA: Knowing your BATNA is essential before entering a negotiation. This will help you set your negotiation goals and help you understand your bottom line. Your BATNA should be your fallback option if the negotiation fails.
- Research the other party's BATNA: It's also essential to understand the other party's BATNA. This will help you anticipate their negotiation strategy and understand their bottom line.
- Assess the potential outcomes: Once you know both parties' BATNAs, you can assess the possible outcomes of the negotiation. If the other party has a strong BATNA and you don't, it may be not easy to reach an agreement that's favorable to you. On the other hand, if your BATNA is stronger, you have more negotiating power.
- Use your BATNA strategically: Use your BATNA strategically to improve your negotiation position. If your BATNA is strong, you can afford to be more aggressive in your negotiation tactics. If your BATNA is weak, you may need to be more flexible.
- Reassess your BATNA: It's essential to reassess your BATNA throughout the negotiation process. If new information comes to light that affects your BATNA, you may need to adjust your negotiation strategy accordingly.