Why You Need More Than Just One BATNA

Welcome back to Day 2 of our negotiation series! Yesterday, we explored the reality of ZOPA, and today, we're diving into another crucial concept: BATNA, which stands for Best Alternative to a Negotiated Agreement.

Understanding BATNA: Your Safety Net in Negotiation

In any negotiation, your BATNA is your backup plan—the course of action you'll take if the negotiation doesn’t go your way. It’s like having a safety net. If you know that you have a solid alternative, you won’t feel pressured to accept a bad deal.

But here’s the thing: Having just one BATNA isn’t enough.

Why You Need Multiple Backup Plans

Let’s look at an interesting experiment involving two photography classes, A and B. Class A was instructed to take one perfect photo, while Class B was told to take as many photos as possible and then choose the best one. When the results were compared, Class B consistently produced better photos.

This experiment teaches us two valuable lessons:

1. Experimentation and Multiple Options Lead to Better Outcomes: The more options you explore, the better your chances of finding a successful outcome. Similarly, in negotiations, having multiple BATNAs gives you the flexibility to adapt and succeed.

2. More Practice Leads to Better Results: Class B’s approach of taking many photos allowed them to practice more, learn from their mistakes, and improve their skills. In negotiations, the more scenarios you prepare for, the better equipped you are to handle unexpected challenges.

The same principle applies to negotiations. Don’t just prepare a single BATNA—prepare Plans A, B, C, D, and E.

Here’s Why:

1. Flexibility: Multiple plans give you the agility to adapt to changes in the negotiation. If one plan fails, you have several others ready to go.

2. Confidence: Knowing you have multiple options boosts your confidence. You’ll feel more secure and less likely to make hasty decisions under pressure.

3. Creativity: Developing several backup plans forces you to think creatively and explore different solutions. This process often leads to new ideas and resources you might not have considered otherwise.

4. Rational Decision-Making: With multiple plans, you're less likely to fall into the other party’s traps. You'll be able to stay calm, rational, and focused on your goals because you know you have alternatives.

5. Practice Makes Improvement: Just like in the photography experiment, more practice and preparation lead to better negotiation outcomes. By thinking through various scenarios, you become more skilled and confident in your negotiation approach.

Actionable Insight: Always Prepare Multiple Backup Plans

As you prepare for your next negotiation, challenge yourself to think beyond the obvious. Instead of just one BATNA, come up with several different scenarios. What if your ideal plan doesn’t work out? What other options do you have? This approach will not only give you more control over the negotiation but also open your mind to innovative solutions.

In our next email, we'll discuss how to effectively communicate and leverage your BATNAs during a negotiation. For now, start brainstorming different backup plans for your current or upcoming negotiations.

Looking forward to continuing this journey with you!

Best regards,

Charlotte Hou

VanYorker Intelligence