An acronym for Best Alternative To a Negotiated Agreement. A technique used to negotiate a better contract or agreement mainly in international business negotiations. There are seven basic steps to developing a BATNA:
- List what you will do if you fail to reach an agreement.
- Convert the most promising options into practical choices.
- Select the single best option (that becomes your BATNA).
- Compare your BATNA to all proposals.
- If an offer is better than your BATNA, consider improving or accepting it.
- If an offer is worse than your BATNA, consider rejecting it.
- If the other party will not improve their offer, consider exercising your BATNA.