What are BATNA examples in negotiation? In their bestseller Getting to Yes: Negotiating Agreement Without Giving In, Roger Fisher, William Ury, and Bruce Patton (Penguin, 1991) described BATNA—your best alternative to a negotiated agreement—as the course of action you’ll take if you fail to reach agreement in your current negotiation.
Understanding your BATNA protects you from accepting a deal that’s worse than what you could achieve elsewhere—and, just as important, from rejecting an agreement that actually improves on your alternatives. If you’re enthusiastic about a strong job offer, for example, you can bargain more confidently in negotiations for another position, knowing you have a viable fallback.
A common question in negotiation planning is whether—and when—you should reveal your BATNA to the other side. BATNA examples in the news offer insight into this tricky judgment call. Consider former British prime minister Theresa May’s decision in August 2018 to publicly outline contingency plans for exiting the European Union (E.U.) if Brexit negotiations reached an impasse.
May’s move was designed to reassure the public that failure to reach agreement would not lead to immediate chaos, while also signaling to E.U. negotiators that the United Kingdom was prepared to walk away from a deal that failed to meet its interests. Failure to reach agreement “wouldn’t be the end of the world,” May said at the time, according to Sky News.
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The British government’s decision to reveal what would happen if Brexit talks failed raises important questions about the role of BATNA in business negotiation strategies. The following five do’s and don’ts will help you manage your BATNA thoughtfully and strategically.
- Don’t Reveal a Weak BATNA.
Never share your BATNA with the other party if it is hopelessly weak. A poor BATNA is sometimes referred to as a WATNA, or worst alternative to a negotiated agreement. Telling a supplier, for instance, that you’ve just ended a relationship with your last partner and urgently need a new deal practically invites the supplier to inflate prices and resist concessions.
You’ll also want to avoid signaling desperation in subtler ways. Appearing rushed, stressed, or overly available—such as revealing a wide-open schedule—can act as a tell that you lack strong alternatives and may be willing to accept unfavorable terms.
- Don’t Bluff about Your BATNA.
What if the other side asks you directly about your BATNA? A safe and ethical response is to say—truthfully—that you are exploring several possibilities but would prefer to focus on the negotiation at hand.
Resist the temptation to exaggerate or fabricate a BATNA to increase your leverage. Doing so risks your credibility and reputation if the truth comes out. In negotiation, trust can be difficult to build and easy to lose, particularly when exaggeration crosses the line into misrepresentation.
- Don’t Reveal Your BATNA Too Early.
Revealing a strong BATNA too early in a negotiation can backfire. Rather than inspiring cooperation, it may be perceived as a threat: If you can’t beat this, I’m walking away. Threats tend to trigger competitive instincts and can shut down the collaborative exploration of tradeoffs that might otherwise create value for both sides.
Even if your BATNA is solid, consider holding it in reserve. It may prove far more useful as leverage in the later stages of a negotiation, once other options for agreement have been fully explored.
- Do Work to Actively Improve Your BATNA.
As BATNA examples like the Brexit negotiations illustrate, it’s not enough to merely identify your BATNA—you should actively work to strengthen it. For Prime Minister May, that meant directing government agencies and private firms to prepare for an orderly transition in the event of no deal.
For a job seeker, improving a BATNA might involve continuing to pursue leads through your professional network, applying for additional roles, or even considering alternative paths such as further education or contract work. The stronger your alternatives, the more confident and flexible you can be at the bargaining table.
- Don’t Let Them Talk You out of Your BATNA.
If your counterpart disparages your BATNA, recognize the tactic for what it is. By casting doubt on your alternatives, the other side hopes to weaken your resolve and steer you toward a less favorable agreement.
While it’s wise to investigate any legitimate concerns raised about your BATNA, remember that your counterpart has strong incentives to undermine your confidence. Evaluate criticism carefully—but don’t allow strategic skepticism to overshadow objective assessment.
What BATNA examples can you share that shed light on when to reveal or conceal?
Claim your FREE copy: BATNA Basics
Discover how to unleash your power at the bargaining table in this free special report, BATNA Basics: Boost Your Power at the Bargaining Table, from Harvard Law School.
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