Meaning: The best alternative to a negotiated agreement (BATNA) is the course of action that a party engaged in negotiations will take if talks fail, and no agreement can be reached. A party's BATNA refers to what a party can fall back on if a negotiation proves unsuccessful. It exists when negotiations are not agreeable to the parties involved. 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. Having your BATNA prepared can also enable you to walk away from the deal altogether. Wherever (commercial) deals are made, negotiation takes place as well. It’s not always easy for both parties to come out feeling like the winner. In order to get to an actual win-win situation, it’s a good idea to work towards a BATNA.

1. B A T N A
B E S T A LT E R N AT I V E TO A
N E G O T I AT I V E
A G R E E M E N T

2. Agenda
What is negotiation?
BATNA
Importance of BATNA
Types of BATNA
How to determine BATNA
Summary
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3. What Is a Negotiation?
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BATNA
3
 A strategic discussion that resolves an issue in a
way that both parties find acceptable.
 Each party tries to persuade the other to agree
with his or her point of view
 By negotiating, all involved parties try to avoid
arguing but agree to reach some form of
compromise

4. BATNA
BATNA is an acronym that
stands for
Best Alternative To
a Negotiated Agreement
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5. BATNA
Most advantageous alternative
that a negotiating party can take
if negotiations fail and
an agreement cannot be made.
In other words, a party’s BATNA
is what a party’s alternative is if
negotiations are unsuccessful
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6. Importance of BATNA
It provides an alternative if negotiations fall
through.
It provides negotiating power.
It determines your reservation point (the worst
price you are willing to accept).

7. Types of BATNA
Walk-Away BATNA
For Example, if the supplier or client I am dealing with is not willing to cooperate or negotiate fairly, I
may have to get another supplier or find another client. Or, in more dire circumstances I might find
another job.
Interactive BATNA
Interactive BATNA’s include economic, political, and social non-cooperation. An example of economic
cooperation would be the boycotting of advertisers to influence the change of television programs.
Third-Party BATNA
A third party BATNA is using a neutral third party or higher authority to resolve a situation
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8. How To Determine Your BATNA
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COST
CONSEQUENC
ES
FEASIBILIT
Y
STAKEHODE
RS
IMPAC
T
Ask yourself how much it will
cost to do this deal relative to
the cost of your best
alternative. Cost estimation
may include both short-term
and long-term considerations.
Figure out which of your
options is the most affordable.
Which of your
options will have the
most immediate
positive influence?
Determine the
outcome of each
option that could be
a possible solution.
Do you need to win
over any stakeholders
before being able to
move to your BATNA?
Which option is the
most feasible? Which
one can you
realistically put into
action in time?

9. WHAT TO DO WITH WEAK BATNA?
Be creative
• Ask yourself what other
options you, might employ
it could improve your
bargaining position
• Brainstorm the situation
• Planning must include
other negotiator’s priorities,
interest and options
Improve your BATNA
• Expand your options
• Bring more buyers and
vendors in to mix
• Coincide with the key
components of your
interests or those of the
other negotiating team
Use experts
• Neutral experts with their
own relevant expertise
• If your business lacks some
area of expertise, get the
experts to lend a hand
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10. Summary
Failing to have actionable
alternatives when heading into
a negotiation is simply not a
best practice. Having an
attractive, actionable,
alternative option empowers
you to confidently reach a
mutually beneficial agreement.
It also allows you to walk
away with a satisfactory
alternative.
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11. T H A N K
Y O U
G r o u p 1 3 :
A N A M I K A P V
D S A A R U M A D H I
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