Negotiation Blog

Do you talk about your other negotiation options, or BATNAs?

By Thomas Wood

There is almost always a time and a place to talk about your other options if this agreement can’t be reached on mutually beneficial terms. Sometimes disclosure of your options pushes the parties to find agreement. But when and how to disclose your other options?

“It depends” is the most comprehensive response, but not a very helpful one. To make this posting easier to read, let’s refer to your Plan B, or other options, as BATNAs – best alternative to a negotiated agreement. Here are a few thoughts:

Never do this: Never reveal a weak BATNA

  • Assess the relative strengths of each side’s BATNAs. Yours may be strong, but is theirs stronger?
  • Weak BATNAs are not taken seriously, thus eroding your credibility.
  • Revealing a weak BATNA gives the other side confidence to negotiate for even better terms.

Timing: Pick a good time; don’t worry about the best time.

  • Regardless of the strength of your BATNA, it’s not usually wise to reveal it too early in negotiations. Why? It can be interpreted as a threat. This often brings out a more aggressive nature in your counter-part, and in a tense negotiation, can easily escalate conflict.
  • Once a major or difficult issue has been resolved to the parties’ mutual satisfaction, it is usually safe to refer to your BATNA. Your counterpart already knows you are investing the same effort and time to reach agreement.
  • When asked directly. But don’t feel that full disclosure is necessary to maintain trust. Acknowledging that you have other options (assuming you do) is appropriate, and noting a name, type, can leverage the power of your BATNA.

How to reveal a BATNA in Negotiations

  • Referring or hinting at a BATNA is often appropriate and rarely harmful
  • It’s ok to be vague. If pressed, it’s ok to say that you’re not here to talk about your other options, but to see if agreement can be reached.
  • A conversational tone helps to ensure you don’t sound threatening. The idea is to demonstrate your power without damaging a good relationship.
  • And it's almost never a good idea to reveal the details of your BATNA! If your counterpart knows those details, he/she is likely to offer you something just a bit better -- your Least Acceptable Agreement (LAA), and you are likely to take it. 

Remember

  • Your BATNA is only as good as your willingness and ability to execute!
  • BATNA bluffing is very risky, lest the other side backs off entirely, or discovers your ploy and loses trust in you.
  • And if you don’t have a BATNA, start building options for next time. 

Negotiating Tip

 “Do I not destroy my enemy when I make them my friend?" Abraham Lincoln, 16th U.S. President, 1861-1865

 


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Negotiation Blog

Top 5 Negotiation Lessons from Summer Vacation

By Marianne Eby

Like me, many of you are returning from summer vacation. You relaxed, explored, and played. But you didn’t sharpen your negotiation saw. Or did you? Without realizing, you likely practiced your negotiation skills, and upped our negotiation quotient.  Here’s my Top 5 negotiation lessons from summer vacation:

  1. Have confidence in the process. 
    Almost two thirds of Americans work during summer vacation, as reported by the Los Angeles Times. .  We know we have to work, at least some, while we’re gone.  And yet, we go, with confidence in the value of vacation -- expecting we will come back refreshed for a positive impact on our lives. We should go into negotiations the same -- confident that if we follow a disciplined process, we will achieve predictable and repeatable results that create value for both parties. 
     
  2. Be creative. 
    Vacation presented us opportunities to play outside the sandbox. In a new place our personality wasn’t known, so we experimented with our approach or style to get the results we wanted. We experienced new things: different foods, new ways of taking photos, other cultures. Being creative with our choices allowed us to discover new things. Being creative in a negotiation allows us to find new solutions to difficult issues.
     
  3. Adjust your style and build rapport.
    People we had to deal with on vacation were unfamiliar -- hotel desk clerks, beach patrol, waiters, tour guides, friends of friends. Naturally we wanted a pleasant experience, so we explored common areas of interest to build rapport. And because so much was new and different on vacation, we asked lots of questions. Because we were sincerely curious, we listened well to the answers. Some of these people even made it into our virtual rolodex. Think of your negotiation counterpart similarly. Adjusting your style to the situation or person, and making a personal connection, builds trust. And as we all know, building trust allows both parties to share their true interests, and find hidden value in negotiations.
     
  4. Plan, Propose options, and develop alternatives.
    Most of us planned our vacations more thoroughly than we plan most negotiations – hotel reservations, addresses to enter into our GPS, must-go concert tickets. We knew the budget we wanted to keep and the money and time limits we could not exceed. When different members of our family were unhappy with the offering, we proposed options. We suggested a willingness to hike the long trail today if everyone would get up early for kayaking tomorrow. Indeed, one of the best negotiation practices is to offer options. People stay involved when they have to respond to options.  And on vacation we thought of backup plans if rain stole a beach day. Our vacation /learning-center-item/batna.htmlBATNA! Without knowing it, we practiced our negotiations skills on vacation!
     
  5. Take breaks.
    We took breaks to relax – mini-vacations within a vacation. Relaxing gave us time to reflect and rethink our needs and priorities, or to calm friction from too much time with family and friends. Taking breaks during negotiations is equally beneficial. Time away allows issue clarification, a chance to reset the emotional climate, and check in with stakeholders. Taking a breather is rarely a step back; more often it provides a renewed vigor  to work toward common goals.

We’re refreshed upon our return from vacation. And without realizing it, we honed our negotiation skills in the process. Be sure to apply those summer lesson to your next negotiation.

Negotiating Tip

Be sincerely curious and ask three questions after their offer. Listen as an ally! This will tell you how legitimate they think their offer is.


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