The Art of

Influencing:
Negotiation Skills

Kemahiran Seorang Perundingan yang Berjaya

 Worse Alternative To Negotiated Agreement (WATNA)

WATNA - considers a situation where everything that can go wrong does go wrong.
Evaluate their worst-case scenario and recognize when they would be better off to walk
away from an agreement rather than settle.
 Best Alternative To Negotiated Agreement (BATNA)

BATNA stands for ‘Best Alternative To Negotiated Agreement’. BATNA is

greatly useful in a negotiation as the results of the negotiation can be
improved by identifying your best alternative for each of your goals.
 Best Alternative To Negotiated Agreement (BATNA)

Your BATNA is “the only standard which can protect you both from accepting terms that
are too unfavorable and from rejecting terms it would be in your interest to accept.

In addition, analyze the other party’s BATNA. By exploring the other party’s alternatives—
whether through research or by asking him questions directly—you can gain a realistic
sense of what to expect from the negotiation.
 Importance of BATNA
BATNA is one of the most crucial components of a negotiation process.
BATNA is important as:

It makes sure that

the other party
does not exaggerate BATNA lets you know when you can and
its position. should walk away from a negotiation.

It decreases the A strong BATNA gives you larger

dependency on the negotiating power.
other party’s agreement.
 Importance of BATNA
BATNA is one of the most crucial components of a negotiation process.
BATNA is important as:

It helps to protect a
negotiator from accepting
an agreement that is It helps you to have a backup to know
unfavorable. what to do when the negotiation fails.

Determining the other It helps a negotiator in being clear

party’s BATNA also lets about that which is acceptable and
you be better prepared is only in the counterparty's best
for a negotiation. interests.
 ZOPA: Zone Of Possible Agreement

The set of all deals that are at least as good for each party in a negotiation as their
respective. Your ZOPA analysis should begin with a consideration of your best
alternative to a negotiated agreement, or BATNA.
 ZOPA: Zone Of Possible Agreement

For example, imagine you are selling your used car. You purchased your
car for $45,000. You hope to sell your car for $29,000 but will go as low
as $25,000. A buyer contacts you and explains that they have a budget of
$27,000 to purchase a new car.

The ZOPA would be between $25,000 and $29,000, as this range is above
the seller’s lowest selling price and below the buyer’s highest purchasing
price. Both parties will leave the deal satisfied if the car is sold within
this range.
 BATNA & ZOPA

BATNA analysis helps you determine each party’s reservation point, or walk away
point, in your negotiation. If there is a set of resolutions that both parties would prefer
over the impasse, then a ZOPA exists, and it would be optimal for you to reach a
settlement. 
 ZOPA vs BATNA

Again, imagine you are selling your car for $29,000 but will go as low as
$25,000. Your younger sister has recently gotten her driver’s license and
your parents are looking for a cheap used car to give her for her birthday.

Your parents tell you if you are unable to find a buyer, they could give
you $18,000 for your car – lower than your reservation price and much
lower than your selling price. If you are unable to find a buyer, your
parents become your BATNA.
Real Life Example

Let us now look at a

real life example to
understand the
importance of a
‘win-win’ negotiation.