1. BATNA (Best Alternative To a Negotiated Agreement) is a term developed by Roger Fisher and William Ury of the Harvard Negotiation Project. In the absence of a deal, it is the preferred course of action you should take. It 's a hefty concept that can make your negotiations more successful, especially when the other side is more powerful and/or has a stronger bargaining position.
You negotiate to obtain something from another party that is more valuable than what you get by not negotiating. Knowing your BATNA allows you to understand how much it will cost you if you fail to come to an agreement. For example, if you 're a car salesperson who is close to reaching your end-of-month quota (and that trip to Kasane incentive) your cost of not agreeing to a deal propose by a savvy customer will be high. Your BATNA will not be favourable, so you might be more willing to continue negotiations.
Knowing your BATNA, instead of guessing what it might be, keeps you from being too optimistic about your alternatives. You might not fully understand the impact of a disgruntled employee who sues your company or an agitated spouse who hotly contests a divorce. It also can help you avoid agreeing too readily because you are uncertain what will happen if negotiations break off.
In collective bargaining process, the Best Alternative to a Negotiated Agreement or BATNA is the course of action that will be taken by a party if the current negotiations fail and an agreement cannot be reached. BATNA is the key focus and the driving force behind a successful negotiator. A party should generally not accept a worse resolution than its BATNA. The BATNA is often seen by negotiators not as a safety net, but rather as a point of leverage in negotiations. BATNA is the choice you can make if you conclude that negotiating with a particular party is not likely to yield a favourable result. You can walk away from a negotiation if your BATNA is better than the likely outcome of that negotiation.