In negotiation theory, the Best Alternative to a Negotiated Agreement or BATNA is the choice of action that will be taken by a party if the current negotiations break down and an agreement cannot be reached. BATNA is a critical process and the guiding principle for a successful negotiator.
A party should generally not accept an inferior resolution than its BATNA. It is imperative that caution is exercised to make sure that the deals are given their correct value, taking into account all considerations, such as relationship value, time value of money and the probability that the other party will keep up to their side of the bargain. It is often difficult to place value on the other considerations. As they are usually based on tentative or qualitative considerations, as opposed to easily quantifiable and scientific factors.
Attractive Alternatives is essential to develop a very strong BATNA. In Getting to YES, the authors give 3 suggestions of how you this can be achieved
- Inventing a list of actions you might take if no agreement is reached
- Converting some of the more promising ideas and transforming them into tangible and partial alternatives
- Selecting the alternative that sounds best
BATNA Rules
A BATNA is not disclosed unless it’s beneficial. In negotiations involving cross cultural exchange, all parties need to take into consideration for cultural cognitive behaviors and not permit judgments and biases to affect the negotiation. The individual should be removed from the objective. The purpose here, as Gulliver mentions, is for negotiation parties to be aware. Preparation at all levels, including prejudice-free thoughts, emotion-free behavior, bias-free behavior are helpful according to Morris and Gelfand.
