How can you use BATNA to negotiate with senior stakeholders?

1 What is BATNA?

BATNA is the most favorable option that you have if you cannot reach an agreement with your counterpart. It is not your ideal scenario, but rather your fallback plan. For example, if you are negotiating a budget increase for your project, your BATNA might be to use existing resources, cut some costs, or seek external funding. Your BATNA defines your minimum acceptable level of satisfaction and your walk-away point.

2 Why is BATNA important?

Knowing your BATNA is important for several reasons. First, it helps you assess the value and feasibility of the offers and proposals that you receive from your counterpart. If the offer is worse than your BATNA, you can reject it or ask for more concessions. If the offer is better than your BATNA, you can accept it or try to improve it further. Second, it gives you confidence and leverage in the negotiation. If you have a strong BATNA, you can communicate it to your counterpart and show them that you have other options and are not desperate for a deal. This can increase your bargaining power and influence their willingness to compromise. Third, it helps you avoid settling for less than you deserve or making unrealistic demands. If you have a realistic and clear BATNA, you can avoid emotional attachment to the outcome and focus on finding a mutually beneficial solution.

3 How to identify your BATNA?

Identifying your BATNA (Best Alternative To a Negotiated Agreement) requires some research and analysis before the negotiation. You can start by brainstorming all the possible alternatives if the negotiation fails. Then, evaluate each alternative based on its attractiveness, feasibility, and risk. Rank the alternatives from best to worst, and remember that the best one is your BATNA. Throughout the negotiation, review and update your BATNA as new information, changes in the situation, or feedback from your counterpart might affect it. Be flexible and adaptable to adjust your BATNA accordingly.

4 How to use your BATNA in the negotiation?

Once you have identified your BATNA, you can use it strategically in the negotiation. It is important to not reveal your BATNA too early or too explicitly, as this could lose your leverage or invite a counteroffer that is just slightly better than your BATNA. Instead, use your BATNA as a reference point to explain your expectations, preferences, and limits. Additionally, seek to improve your BATNA and weaken the other party's BATNA. This can be done by exploring new opportunities, partnerships, or sources of support that could enhance your alternative; or by questioning their assumptions, challenging their data, or exposing their weaknesses or risks. Doing so can increase your value and options in the negotiation while reducing the other party's value and options.

5 How to negotiate with senior stakeholders who have a stronger BATNA?

Sometimes, you might face senior stakeholders who have a stronger BATNA than you. How can you deal with these situations and still achieve a satisfactory agreement? It is important to focus on the relationship and rapport. Show respect, empathy, and appreciation for their perspective and needs. Additionally, emphasize the mutual benefits and value of your proposal or solution. Highlight the common goals, interests, and values that you share. Be creative and flexible by generating multiple options and alternatives that can satisfy both parties. Negotiating with senior stakeholders can be a complex task, but it can also be a rewarding opportunity. By using BATNA effectively, you can prepare for the negotiation, assess the value of the offers, communicate your position confidently, and seek a mutually beneficial solution.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?