BATNA
What does BATNA mean?
BATNA stands for “Best Alternative to a Negotiated Agreement” – the best course of action if no agreement is reached. It is the most important benchmark for which offers you should accept or reject.
BATNA in Detail
The term was coined in 1981 by Roger Fisher and William Ury as part of the Harvard Concept (the book “Getting to Yes”). The BATNA describes what a party will do if the negotiation fails – for example, switching to another supplier or keeping the status quo. It forms the actual bottom line of the negotiation: an offer should only be accepted if it is better than the BATNA. A strong, realistic alternative significantly increases negotiating power, because you can credibly walk away. Conversely, a weak BATNA makes you vulnerable. Developing and improving your own BATNA – and assessing the other side's – is therefore central to any negotiation preparation.
In practice, the BATNA – the best alternative to a negotiated agreement – is perhaps the most important source of power at the negotiating table. Those who have a strong alternative can stay calm, draw clear limits, and reject poor offers; those who have none easily come under pressure. So the rule is: determine your own BATNA realistically before every negotiation and, where possible, actively improve it, for example through additional options or offers. It is equally important to assess the other side's BATNA. The BATNA also defines your own reservation point – the threshold at which walking away is better than an agreement. Those who know their BATNA negotiate more confidently and make better decisions.
What is a BATNA used for?
The BATNA serves as an objective decision benchmark and source of power. You determine it by listing possible alternatives, developing them into realistic courses of action, and selecting the best. In the negotiation, it protects against poor deals and enables a confident, credible appearance.
BATNA – Examples in Practice
A candidate negotiates more confidently because they have a second job offer in hand. A buyer obtains a comparison offer so as not to depend on the main supplier. A company examines in-house production as an alternative to purchasing.
BATNA: Features and Benefits at a Glance
- Definition: the best alternative if there is no agreement
- Bottom line: the benchmark for accepting or rejecting
- Source of power: a strong BATNA means more negotiating power
- Preparation: assess your own and the other side's BATNA
- Origin: the Harvard Concept, Fisher & Ury (1981)
Related Terms
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BATNA: Frequently Asked Questions
What does BATNA mean?
“Best Alternative to a Negotiated Agreement” – the best course of action if no agreement is reached. It shows which offers are worthwhile and which are not.
Who coined the term BATNA?
Roger Fisher and William Ury, as part of the Harvard Concept, published in 1981 in their book “Getting to Yes.”
Why is the BATNA so important?
It is the actual bottom line of the negotiation and a central source of power: a strong alternative allows you to credibly reject poor offers.
How do I determine my BATNA?
List alternatives, develop them into realistic options, and choose the best. This best option is your BATNA and your benchmark in the negotiation.