BATNA from Roger Fisher and William Ury (Getting to Yes, 1981); the zone of agreement from Howard Raiffa (The Art and Science of Negotiation, 1982).
Before a negotiation, pins down the best deal available without this counterparty, estimates theirs, and finds the range both sides prefer to walking away.
When to reach for it
Before any consequential negotiation, such as a vendor contract, job offer, acquisition, or partnership, and again whenever a concession is requested.
How it runs
- State your best alternative in concrete terms: who, what, and at what price.
- Confirm it is real, and strengthen it before talks begin.
- Estimate the other side's best alternative.
- Find the overlap between the two walk-away points.
- If none exists, restructure the deal or walk away.
- Recheck both alternatives as the talks move.
Where it sits in SOLVE eX
Go to the source
- Getting to Yes: Negotiating Agreement Without Giving In, 1981
- The Art and Science of Negotiation, 1982