SC electric - womens weekly challenge # 3
prepare your batna + watna
How did you like the playing house for our workshop? We discussed afterwards, but what did you learn? What would or could you have done differently? How did your conflict style and the dynamic of what and who you were negotiating with affect how you approached the discussion?
One thing that we will explore in more detail today is BATNA and how it will help with the fear of the other party walking away (as we discussed) and having more bargaining power.
With the workshop we jumped into it, you were thrown into the water. Today we will review what you already practiced, but emphasizing how to prepare for any negotiation by knowing your BATNA and WATNA. Next week we will review preparing part 2; open ended questions. Followed by our last week on being perceptive.
RECAP: WHY BATNA AND WATNA?
To recap, negotiation is when two or more parties have different interests and you are working to have your interests met. So why prep? It ensures you know where you stand, how far you will give for your interests to be met and what you think they will give. What is your ‘deal-breaker’ and walk away point.
With negotiation, clearly knowing what you are willing to give up and what you are not is determining and creating your bargaining power. Thats where BATNA and WATNA come in.
BATNA: Best Alternative to Negotiated Agreement
This is the best alternative in a negotiation if an agreement cannot be met. Essentially, your plan B (Plan-Batna).
In our neighbourhood negotiation, we talked afterwards about the fear the other party would say no and walk away. Resulting in more willingness to ‘give in’ to the other party. By having a Plan-Batna, you are more in control.
Once you know your BATNA, you also know how far you will go. You should not accept an agreement that is worse than your BATNA. Knowing this before is very powerful bargaining tool.
EXAMPLE: for the land plot negotiation, what was the alternative if you didn’t sell to each other? The situation was setup for both parties to have a limited BATNA to simplify, making you more likely to want to work with your neighbour. Say the land could be sold to someone else big enough to build a home, or the renovation could be done in a different direction not needing the land, either parties would have had a stronger bargaining chip, knowing they had an alternative option.
EXAMPLE: we spoke about going to a car dealership and negotiating a car. The best way to have more bargaining power is to know your alternative dealerships and deals. If dealer X won’t go to X rate, then I can go to X dealer, who has the same car but with more mileage and and no cup holder. Maybe it's not the newest best version, but it's your fallback so stay in your budget.
WATNA: Worst Alternative to Negotiation
Your WATNA (your waaaa-waaaa) alternative. This is the worst case scenario that still appeals to your main interest in some way. Knowing this helps you understand the situation with better accuracy. Essentially, what’s the worst that could happen? What is the worst option in this situation? This allows pride and ego to also step aside, allowing you to think more rationally about the best option, regardless of what other smaller interests are not met.
EXAMPLE: Think back to the land plot, the WATNA would be having to sell it for less than what you bought it for (or the same); or, having to pay more to extend the kitchen without the land. It allows you to understand other options and the potential sacrifices you need to make are better than your WATNA.
EXAMPLE: Maybe you are in the process of bidding for a house or home. Your priority is to stay within budget and save money. This is your main interest. So, your WATNA will include how to honour this even if you have to sacrifice in other ways, perhaps its continuing to rent at the small crummy place; or moving back in with your parents?
To summarize, how to prepare:
Know your BATNA
Know your WATNA
Understand their interests
Next week: prepare questions.
CHALLENGE #3: understand the interests
Pick a point of conflict, at home, at work, in your social life. What is the problem you want to solve? Now, prepare addressing this conflict by writing down the answers to these questions
What is conflict zone and tension points?
What are your interests and your counters interests?
What are the problems we need to solve?
What is your BATNA?
What is your WATNA?
Once you know these, you can also reference the chart below to break down specific details to help prepare.
Whether its small or large, important or not, simply prepare the answers and get clear on the situation. If it is something very important or high stakes, don’t worry, we are simply preparing the situation. You do not need to do anything, simply get clear on preparation. The next two weeks we will work on this more.
negotiation preparation FRAMEWORK:
This is a great framework to prepare for any negotiation:
ISSUES: What are the problems we need to solve?
MY INTERESTS: What I really care about, hopes needs, fears, etc.
THEIR INTERESTS: What I think they care about. Their hopes, concerns, fears,etc.
OPTIONS: Possible agreements we may reach that address both interests. BATNA/WATNA
OBJECTIVE: What will convince us that the proposal is fair?
Share your feedback!
I would LOVE to hear about how this weeks challenge goes! Feel free to email me directly @ firstname.lastname@example.org.
Otherwise, would love if you could fill out this survey on the first workshop experience so we can better it!
*Note, survey results are anonymous! I will be sharing anonymous survey results with administrators for full transparency.
I’M HERE TO HELP YOU GET WHAT YOU WANT
For all S+C Electrics members who want to hash out details of a challenge one on one, simply schedule a call with me below! This will be a complimentary 20 minute call. This offer expired October 31st. Look forward to helping you get what you want!