BATNA is often used in negotiation tacticsNegotiation Negotiation is a dialogue between two or more people in order to reach consensus on a subject or topic on which there is conflict. A good negotiating tactic is important for negotiators to know that their side is winning or creating a win-win situation for both parties. and should always be considered before a trial takes place. It is never advisable to start serious negotiations without knowing your BATNA. The value of knowing your best alternative to a negotiated agreement is this: here is a process developed by Harvard Law School to develop the best alternative to a negotiated agreement: the best alternative to a negotiated agreement (BATNA) is the method that a negotiating partner will take if the talks fail and if no agreement can be reached. Negotiators Roger Fisher and William Ury used the term BATNA in their 1981 bestseller “Getting to Yes: Negotiating Agreement Without Giving In.” A party`s BATNA refers to what a party can rely on if a negotiation proves unsuccessful. BATNAs are essential to negotiation because you cannot make wise decisions about whether or not to accept a negotiated agreement, unless you know what your alternatives are. If you are offered a used car for 7500 $US, but there is a better one at another dealership for $6,500 – the car is your BATNA. Another term for the same thing is your “walking point.” If the seller does not drop their price below $6500, you will walk AWAY and buy the other car. BATNA and EATNAs also have an effect on what William Zartman and others have described as “maturity,” the timing of a dispute being resolved or “ripe” for a settlement.  If the parties have ideas or “congruous images” about BATNs, then negotiations are ripe to reach an agreement. The images of Kongruent-BATNA have ensured that both parties have similar views on how a dispute will be possible if they do not agree, but instead pursue their other rights-based or power-based options. In this situation, it is often wiser for them to negotiate an agreement without continuing the dispute process and thus reduce transaction costs.
This occurs when parties involved in a dispute engage in an out-of-court settlement (which happens in the United States about 90 percent of the time). The reason the parties agree is that their lawyers have understood the understanding of the strength of the case of both parties and the likelihood that each party will be able to impose themselves in court. They can then “go hunting” and achieve the same result through negotiations much easier, faster and at a lower cost. A strong BATNA can also help a party understand that it has an attractive alternative to the agreement and that it can move away from a tempting offer. BATNA is a term coined by Roger Fisher and William Ury in their 1981 bestseller Getting to Yes: Negotiating Without Giving In.  It means “Best ALTERNATIVE TO a negotiated agreement.” In other words, it`s the best thing you can do when the other person refuses to negotiate with you – when they tell you you`re jumping into a lake! or “Go lost! So it`s not necessarily your ideal result – unless your ideal result is something you can get without the other person`s cooperation. It`s the best thing you can do without yourself. BATNA is often not seen by negotiators as a safety net, but as a lever in negotiations. Although a negotiator`s alternative options should theoretically be easy to assess, the attempt to understand what alternative BATNA represents for some is often not invested. Options must be real and achievable to be of value,[source of third party required] however, without the investment of time, often contain options that fail any of these criteria.  [Quote required] Most managers overestimate their BATNA while investing too little time in the search for their real options.
[Third-party source required] This can lead to bad or wrong decisions and negotiations.