What is BATNA: how it works, principles, how to identify and application

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In free translation, BATNA means seeking the best alternative for a negotiated agreement. How do you know when to exit a negotiation without harming the budget or cost base of a product? Knowing how far to reach an agreement can help you minimize losses, predicting next steps and imposing the correct limits in this process.

That’s why we’re going to show you the BATNA methodology, a strategy that emerged in the 1980s at Harvard University and has become a reference for those working in various areas. In this text, you’ll learn about the principles and the best way to apply this strategy to your sales team . Let’s go!

Understand what BATNA is
BATNA (Best Alternative To a Negotiated Agreement) is a negotiation technique that answers a simple question: “What should I do if everything goes wrong and I can’t close this deal?” From there, a series of actions are possible to get around the situation and make the scenario favorable to the seller.

In its translation into Portuguese, it means Best Alternative for a Negotiated Agreement, therefore, it is also known by some as MAPAN. The method was developed by two experts, William Ury and Roger Fisher, at Harvard University in the United States. The main objective of BATNA is that in a negotiation, the parties reach a win-win agreement, which is beneficial to both.

William Ury teaches that “a good negotiation has no winner”. In other words, the most important thing is to reach an agreement where both parties are equally satisfied with the result. The methodology shows the importance of always having a plan B up your sleeve. But how? That’s right, you read that right!

Every negotiation aims to increase the chances of converting customers, as long as it is profitable for both parties. Therefore, knowing what the limits are is essential. If you don't always have another possibility to explore, you will have difficulty knowing when is the best time to exit a negotiation without harming your budget or the cost base of the product, for example. Among other factors.

Many buyers have the idea that, in a negotiation, they need to close the deal on the first attempt, no matter what the cost. This is a dangerous mindset and can lead to bad deals. First, evaluate all the points involved.

Origin of BATNA
BATNA methodology is a negotiation concept, created in 1981 by William Ury and Roger Fisher in the book “Getting to Yes”, which preaches the following: the greater the power of synthesis and precision, the greater the chance of the original proposal being accepted.

The emergence of this tactic used for sales came from an experience of the azerbaijan telemarketing data authors within the Harvard University Negotiation Project. The main objective was to resolve the most varied conflicts.

In this study, it was noted that when there is an impasse and conflict of interests, both parties involved should always have a plan B up their sleeve.

But what to do when the arguments are not sufficient and no agreement is reached? By using BATNA, it is possible to bring greater flexibility and not close an agreement under pressure, but to consider all opposing arguments before closing the deal.

Meaning of the acronym BATNA
The acronym BATNA stands for:

Best
Alternative
To (for)
Negotiated
Agreement.
Many people also know this method as MAPAN, in any case, even with variations, both have the same meaning: the bargaining power of the two parties present in the negotiation.

Understand the relationship between BATNA and ZOPA
ZOPA is an acronym that stands for Zone of Possible Agreement and signifies the limitation to which the parties are willing to go to close a deal. In ZOPA, as in BATNA, the goal is also to reach an agreement that favors both sides.

This negotiation technique is also widely used, mainly in the commercial area, but it extends to other sectors. Despite having similar objectives, there are also fundamental differences between BATNA and ZOPA.

This happens because while the ZOPA refers to the range between the minimum and maximum acceptable between the parties, it is from the BATNA that these minimums and maximums are defined.

BATNA can work in conjunction with ZOPA, being used as an alternative when an agreement will not be as advantageous for both parties.

Learn about the principles of BATNA
Two women at a negotiating table. Practical example of when to use BATNA and how to apply it.

At BATNA, the intention is not to impose an opinion, nor to make concessions that could be harmful, as it is necessary to weigh the pros and cons in each situation.

The larger and more defined the BATNA, the greater the negotiating power. Let's imagine the example of an employee who wants a raise. At first, he is at odds with his boss, but if he has received a proposal with a higher salary, the forces balance out because the manager would not gain anything in this situation, in addition to having to hire a new employee.

If the employee does not have this card up his sleeve and the salary increase does not come, he needs to consider some alternatives: moving to another city, returning to his hometown, starting his studies again... These alternatives may be better than continuing with the same salary in his current position, however, he cannot have them all, he needs to choose only one.

However, if you have another offer, your negotiating power and level of trust will increase and you will be able to come away with a more balanced proposal, both for the employee and the boss.