Do you know your BATNA?
By ZARAH WALPOLE
What do you think about before you start a negotiation?
You probably take the time to consider what you want to
accomplish, and what you think would be fair. I suspect
you also consider what the other side's ideal outcome might
be. These are all essential matters - it is important to
have a clear understanding of your, and the other side's,
goals. There is another great step to take when preparing
for a negotiation that you might have overlooked. Do you
know your BATNA?
BATNA stands for Best Alternative to a Negotiated Agreement.
In other words, what will you do if you cannot reach an
agreement? If your negotiation fails and no agreement is
reached, you will have a number of courses of action open
to you. Have you thought about what they are? Alternatives
can range from doing nothing to going to the press, starting
a law suit to starting a business. Keep in mind that you
are considering alternatives that can be taken without the
consent of the other negotiator.
Once you know all your alternatives, you can figure out
your best one. You want to make this alternative as good,
concrete and real as possible. It is not enough to consider
theoretical alternatives. Suppose you want to negotiate
a reduced workweek so that you can care for an ailing parent.
Consider what you will do if the negotiation fails. One
alternative would be to quit and get a new job (this isn't
the only alternative - just an obvious one). To make it
concrete, you need to find out if there are jobs available
in your field that offer flexible work schedules. If there
are, you can start to develop a concrete BATNA. If you've
got a job offer on the table, you are walking into your
negotiation with a really strong BATNA. If there aren't
any other jobs, you've also gained valuable information.
Can you afford to quit and not get a new job, can you and
your parent move to where there is work? Maybe your BATNA
will be to stay at your job on the same terms.
Now that you know your BATNA, what are you going to do
with it? First, there is no rule that says you have to disclose
it to the other side. Disclosure is most useful when you
have a BATNA that is better than the other side realizes.
For example if you have been offered a job sharing position
that pays more than your present position, this may be very
powerful information to share during the course of the negotiation.
If you have a weak BATNA, keep it to yourself.
More important than disclosure, your BATNA is there for
you. When there is a final offer on the table, consider
your BATNA. Remember, you are not choosing between the deal
on the table and what would be fair, just or right. You
are choosing between the deal on the table and your BATNA.
A good deal for you is one that is better than your BATNA.
If the offer is worse, you should proceed with your BATNA.
<-Back
The above is not intended to constitute
legal advice. Please contact a lawyer to clarify your
legal rights.
