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BATNA is the acronym for Best Alternative To a Negotiated Agreement. If you look at it from the simplest standpoint, your BATNA is the choice you can make if you conclude that negotiating with a particular party is not likely to yield a favorable result. You can walk away from a negotiation if your BATNA is better than the likely outcome of that negotiation.
BATNA, however, covers far more than that. One view says that BATNA is the measure of the balance of power in a negotiation. If other parties need you in order to reach their objectives, your BATNA is strong; your negotiating circumstances are strong. If you want to buy a new car and the same model is for sale at several car dealers, you have a strong BATNA because you can benefit from their competition for your business.
It is crucial to think of BATNA as having two stages in a negotiation. You start off with your 'walking-in' BATNA; the things you can influence or control before the negotiation begins. However, once negotiation starts, the BATNA is a dynamic element, changing as you derive information about the interests of other parties and their constituencies and as you compare the resources each party (including you) has available to bring about and fulfill an agreement.
You can think of BATNA in negotiation like playing a game of cards. Your walking-in BATNA may be the first cards you are dealt. In many card games, your hand may change during the play as new cards are dealt to you (and others). So your BATNA changes as new cards come into your hand. If those new cards are only known to you, you develop a greater understanding of your own apparent strength. If the new cards are dealt to all the players in a way that allows each player to see at least some of the cards in each player's hand, you learn more about the comparative strength of your BATNA. In negotiation, rather than looking at cards, we are assessing information about our own resources, those of other negotiating parties, and the influences on each negotiator from their constituencies.
By looking at BATNA as an ongoing, changing measure of negotiating strength, as a mechanism for deciding whether and/or when to quit, we develop a disciplined, informed approach to our negotiations.
Generally speaking we use a concept called the BATNA, the Best Alternative To a Negotiated Agreement, to measure the balance of power among negotiating parties. By looking at the constituent elements of the BATNA, one gets a sense of how much power each party has before negotiation begins and how the balance of power changes during the negotiation process. BATNA is a term coined by Roger Fisher and William Ury in their 1981 bestseller, Getting to Yes: Negotiating Without Giving In.
Thus, BATNA is the acronym for Best Alternative To a Negotiated Agreement. If you look at it from the simplest standpoint, your BATNA is the choice you can make if you conclude that negotiating with a particular party is not likely to yield a favorable result. You can walk away from a negotiation if your BATNA is better than the likely outcome of that negotiation.
BATNA, however, covers far more than that. One view says that BATNA is the measure of the balance of power in a negotiation. If other parties need you in order to reach their objectives, your BATNA is strong; your negotiating circumstances are strong. If you want to buy a new car and the same model is for sale at several car dealers, you have a strong BATNA because you can benefit from their competition for your business.
It is crucial to think of BATNA as having two stages in a negotiation. You start off with your 'walking-in' BATNA; the things you can influence or control before the negotiation begins. However, once negotiation starts, the BATNA is a dynamic element, changing as you derive information about the interests of other parties and their constituencies and as you compare the resources each party (including you) has available to bring about and fulfill an agreement.
You can think of BATNA in negotiation like playing a game of cards. Your walking-in BATNA may be the first cards you are dealt. In many card games, your hand may change during the play as new cards are dealt to you (and others). So your BATNA changes as new cards come into your hand. If those new cards are only known to you, you develop a greater understanding of your own apparent strength. If the new cards are dealt to all the players in a way that allows each player to see at least some of the cards in each player's hand, you learn more about the comparative strength of your BATNA. In negotiation, rather than looking at cards, we are assessing information about our own resources, those of other negotiating parties, and the influences on each negotiator from their constituencies.
By looking at BATNA as an ongoing, changing measure of negotiating strength, as a mechanism for deciding whether and/or when to quit, we develop a disciplined, informed approach to our negotiations.Your BATNA can include a variety of elements:
1. Those resources you control or influence that you can use to resolve the issue under negotiation without the assistance or cooperation of other parties to the negotiation.
2. Choices you can make if a particular negotiation partner cannot -- or will not -- reach an agreement you find favorable. These may be his or her competitors, other people within your company who will cooperate better than your first choice, or perhaps choosing an entirely different way to resolve the issue about which you are negotiating.
3. Deadlines that have an impact on your priorities -- or those of the parties with whom you negotiate.
4. Information that negotiating parties have that other parties need.
5. Differences in experience and skill among negotiating parties can influence the balance of power as well.
I have nothing more to add. Mr. Pravin Matey already explained it in detail.
BATNA means 'Best Alternative to a Negotiated Agreement'. This is your alternate plan when the talks start to wobble out of control. It can also be your trump card to make the deal happen to your advantage, or walk away from it altogether.
Let's illustrate BATNA by using a simple example. In the first scenario, let's say that you are a buyer who goes to a supplier to purchase some badly needed parts to complete a project. The supplier senses your urgency; his eyes begin to gleam with anticipation. You want the lowest price possible while he wants the higher price. Oh! Oh! You have no fall-back position. You're both in the boat, but it's the supplier who's holding the oars, so guess who decides where the boat makes land?
On the other hand, say you go to the meeting prepared. Before arranging the meet, you set up talks with 2 other suppliers who are ready and able to handle all your needs. When you meet with the first supplier in this second scenario, you can calmly sit back in your chair, and allow the supplier to finish his spiel. Now, watch the gleam fade from his eyes when you spring the little titbit, about his competitors willingness to solve your problem. You have BATNA! The talks suddenly become more amenable. So, who's holding the oars now?
BATNA or NO BATNA? That is the QuestionThe power of your BATNA is a matter of scale. When you have a strong alternative solution to a lousy proposal, you have leverage to build a more potent proposal. If not, then you can turn to your best alternative solution. A strong BATNA is like a warm, fuzzy insurance policy. A strong alternative provides you with two possibilities. Either you settle an agreement with more favourable terms, or you have the option to simply say, 'No dea1!'
BATNA doesn't come in a package. It comes from planning and preparation. It is a two fold process. First, you have to determine all your available options. Then, you must also realistically estimate your counterpart's alternatives. Each is equally important. Otherwise, it will be impossible to gauge the strength of your best alternative in relation to their best alternative.
Your plan should be a flexible approach. It is important to keep in mind that both your approach, and your alternatives, should be able to bend in the wind and weather the unexpected storm. A negotiator may enter the talks with a preconceived idea of the best alternatives available to both parties, but must not be bound by them.
Circumstances can alter rapidly. Unexpected changes can be anything from new information on the table; a sudden rise in costs due to political upheaval; new legislation: or, even a climatic intervention such as an unexpected and untimely frost. A sudden shift in conditions can immediately affect the strength of either parties BATNA during the negotiation process.
How do you determine your best alternatives to a negotiated agreement? First, you have to dissect both your position and your interests. Then, look at the sum of these parts relative to all the alternative options available. Pick the best option. Finally, do the reverse from your counterparts perspective. A well prepared negotiator looks at the whole picture.
Some of the most crucial factors which should be considered include;
Is that your ego showing? Put that thing away right now! After all the work you put into estimating your BATNA, you might be feeling pretty smug. Studies have clearly shown that it is an all 'too human' tendency to overestimate the strength of one's own BATNA, while underestimating the strength of your counterpart's.
The underlying danger occurs at the point when one party reveals an over-estimated BATNA too early in the talks. Having put all their cards on the table too soon, they call the other side. Suddenly, they find that their big hand really equates to a pair of deuces facing a full house. Kiss that pot goodbye!
The other side of the coin happens when you are absolutely certain that you have the stronger BATNA. Let's suppose you know the other party needs to make a deal, and they have no options available except to turn to your company. Now is the perfect time to put your own powerful BATNA on the table. The BATNA you employ can act as a powerful leverage while you decide whether or not to make the deal. As always, gauge the situation accordingly. Timing can mean everything in determining when to put your BATNA on the table.
In the reverse situation, what can you do with a weak BATNA? Can your turn the tables? Yes, there are two ways this might be accomplished. The first possibility is to strengthen your own BATNA. The second way is to reduce the BATNA of your counterpart.
Failing to have available options during a negotiation is simply unwise. Having a good alternative empowers you with the confidence to either reach a mutually satisfactory agreement, or walk away to a better alternative.
absolutely because if u have good items and negotiation skills that can give u power during it
Thanks I am agree with my colleague’s answers pravin he gives us good answer
BATNA is a term coined by Roger Fisher and William Ury in their 1981 bestseller, Getting to Yes: Negotiating Without Giving In. It stands for "Best ALTERNATIVE TO a negotiated agreement."
I agree with the great answers from both Mr.Pravin and Ms.Ghada. I don't think I have nothing more to add.
I agree with the answer presented by Ms.Ghada!
In negotiation theory, the Best Alternative to a Negotiated Agreement or BATNA is the most advantageous alternative course of action a party can take if negotiations fail and an agreement cannot be reached. BATNA is the key focus and the driving force behind a successful negotiator. A party should generally not accept a worse resolution than its BATNA. Care should be taken, however, to ensure that deals are accurately valued, taking into account all considerations, such as relationship value, time value of money and the likelihood that the other party will live up to their side of the bargain. These other considerations are often difficult to value, since they are frequently based on uncertain or qualitative considerations, rather than easily measurable and quantifiable factors.
Agree with the expert answers
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