15 Apr What Is The Meaning Of Best Alternative To A Negotiated Agreement
Contracting parties can adapt BATNAs to any situation that requires negotiations, from discussions on wage increases to resolving more complex situations such as mergers. BATNas are essential to negotiation because a party cannot make an informed decision on whether to accept an agreement unless it understands its alternatives. Although a BATNA is not always easy to identify, Harvard researchers have outlined several steps to clarify the process: the best alternative to a negotiated agreement (BATNA) is the preferred method in the absence of an agreement. Knowledge of its own BATNA means that the best alternative approach and its costs have been fully taken into account in a negotiation. With this information in hand, the negotiator will know when to move away from a proposed agreement and follow BATNA instead. Fisher and Ury propose a job search as a fundamental example of the determination of a BATNA. If you don`t receive an attractive job offer from Company X by the end of the month, what will you do? The invention of options is the first step towards defining your BATNA. Did you have to take another job? Are you looking at another city? Going back to school? If the offer you expect is in New York, but you had also considered Denver, then try to turn that other interest into a job offer, even there. With a job offer on the table in Denver, you`ll be better equipped to evaluate the New York offer when it`s made. Finally, you have to choose your best alternative if you don`t get an agreement with the New York company. What realistic options would you really want to follow if you don`t receive the job offer in New York? The best alternative to a negotiated agreement (BATNA) is the approach that a party to the negotiations will take if the talks fail and no agreement can be reached.
Negotiators Roger Fisher and William Ury used the term BATNA in their 1981 bestseller “Getting to Yes: Negotiating Agreement Without Giving In.” A party`s BATNA refers to what a party can rely on if a negotiation proves unsuccessful. Improve your BATNA. Look for alternatives to the current BATNA to see if it can be improved. If there is no BATNA, create one. With a good BATNA, you increase your bargaining power. If you know you have a good alternative, you don`t need to admit as much, because you`re not so interested when you get a deal. You can also push the other side harder. If your options are slim or non-existent, the other person can ask more and more, and you`ll probably decide to accept them – because you don`t have a better option, no matter how unattractive the person on the table becomes.