From the course: How to Be Both Assertive and Likable

Understanding your options and BATNA

From the course: How to Be Both Assertive and Likable

Understanding your options and BATNA

- [Interviewer] One thing we talked about before in our pre-call was understanding the options and your BATNA. Before we end, can you- - [Man 1] Mm-hmm (affirmative). - [Interviewer] Chat about that too? - [Man 1] Yes, I think the key term that miss-time most negotiation clashes is BATNA, and that stands for best alternative to a negotiated agreement. I'm sure that word has been thrown around in your podcast many times. - [Interviewer] Yes. - [Man 1} It is basically your backup plan. What you're going to do if the negotiation fails to reach agreement. And so people become rather BATNA obsessed but not in a good way, in my opinion. You're thinking, Oh my gosh, if I don't get this job offer my BATNA is to go into the unemployment line. What people should really think about when they first enter into negotiation, is how in the world they're going to improve their BATNA. So if I have a big job offer negotiation coming up, the first thing I should do is try to get a second job offer on the table. Even if you don't get a job offer on the table, a second one. If you merely set things in motion where a interview is being scheduled, that's going to give you that psychological boost you need to be like, "Oh yeah, I got something else percolating. I'm not all wholly dependent on this one thing." If you have a big deal coming up potentially with a huge company like Google, the very first thing you should do is to pick up the phone and call Microsoft and see if you can get something else on the table. So working on improving your BATNA is the number one thing people should do. And the other thing that they should do, instead of obsessing over their own BATNA, is really think hard about the BATNA of the person that they're negotiating with. 'Cause usually you are underestimating your BATNA and overestimating the other side's BATNA. But they may have a similarly bad one to yours. After all, that's why you guys are at the negotiation table, because you need each other. So if you remind yourself that their BATNA isn't all that pretty either, that's going to help give you that psychological piece that you need.

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