You said BATNA?

At the end of the game we played and I explained in my previous article, I felt like I was a very bad negotiator. But I need to learn to do better next time. Thanks to the article « four key concepts », the first thing I have learned is that you can’t become a good negotiator without having some knowledge about negotiation… So let me explain to you one of the four key concepts I recently discovered and that you absolutely need to know to win each of your negotiations: BATNA!

What is BATNA?

First of all, you need to know what BATNA means: it’s your Best Alternative to a Negotiated Agreement, that is to say, the best alternative you will have if you don’t succeed in reaching a deal with your interlocutor. So it refers to the best alternative you have when the negotiation leads to nothing.

Why is BATNA so important?

BATNA is a major issue because if you want to reach your goal and win the negotiation, you absolutely need to define your BATNA. As a matter of fact, defining your BATNA allows you to know the limit of what it’s acceptable for you and what is not. Your BATNA allows you to evaluate the different options you have and thereby, to take the best decision possible.

If you don’t have a BATNA, you won’t be able to deal with possible issues and it will potentially lead you to accept a bad offer.

That’s why you can complete a negotiation if the final proposal is less interesting than your BATNA.

By defining your BATNA, you will feel more confident and prepared because with a BATNA you know where to go: it will guide you in your negotiations. You will be able to negotiate in a much efficient way and avoid being disadvantaged. 

The best your BATNA will be the more you will have a strong power on your interlocutor and you will lead the negotiation. 

How to improve your BATNA?

It is possible to improve your BATNA by knowing the BATNA of your interlocutor. You can find it trying to learn information about your partner. In this way, you will know his needs and you will negotiate considering them. You know the limit of your interlocutor and how far you can go.

It gives you a certain power because it’s a good way to weaken his BATNA.

How to determine your BATNA?

You can define your BATNA thinking about the BATNA of your interlocutor if you know it. But sometimes BATNA isn’t only about the price. Therefore, in order for your BATNA to be clearer, you can define it by assigning a monetary value to some features which are difficult to compare (such as qualitative elements). Thus, it will be easier for you to have a quantitative idea of your BATNA, and make a choice. 

In any case, it is fundamental to have an alternative in order not to be at the mercy of our interlocutor. Nevertheless, we do not have to think that our BATNA is easy to determine. Indeed, sometimes our choices can be influenced by external factors such as our feelings, our desires, etc.