BATNA — Best Alternative to a Negotiated Agreement
Definition: Your fallback option if a negotiation fails. A strong BATNA gives you walk-away power; a weak BATNA forces you to accept worse terms.
Example
When negotiating a job offer, your BATNA is your current job + any other offers. The stronger they are, the better you can negotiate.
When you'll hear it
BATNA shows up most often in board meetings, quarterly business reviews, and strategy off-sites. When someone uses it, they're usually referring to best alternative to a negotiated agreement — and they expect the room to already know what that means.
FAQs
Why does BATNA matter so much?
Power in any negotiation comes from your ability to walk away. No BATNA = no leverage.
What does BATNA stand for?
BATNA stands for Best Alternative to a Negotiated Agreement.
What does BATNA mean in business and finance?
Your fallback option if a negotiation fails. A strong BATNA gives you walk-away power; a weak BATNA forces you to accept worse terms.
Where will I hear BATNA used at work?
BATNA comes up most often in board meetings, quarterly business reviews, and strategy off-sites. It's used as shorthand for best alternative to a negotiated agreement, so people assume you already know the term.
Related terms
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