How To Develop Alternatives

From: Gladys, Hong Kong

Question: Could you please tell me what is "developing alternatives"? How does one develop alternatives in a negotiation?

Response: If there is only one way to do things, some people think there’s no reason to negotiate about the best solution. However, even when there only seems to be one right answer, you may negotiate about price, delivery, or other mechanisms for acquiring or selling the product or service.

Before the parties decide to negotiate, it is crucial for each one to consider alternatives: Who is likely to agree to the best price? What parties can deliver products or services that meet the specifications? Do I have to reach agreement with a party with whom I have a bad history or is there someone else with whom it is possible to make a deal? Who are the real stakeholders in this situation — and am I planning to negotiate with the right one(s)?

Negotiation is about choices — what makes the most sense, who can deliver what I need, how should the agreement be designed? Each time there is a choice to make, one is choosing among alternatives. The best way to develop alternatives is to do a good job of advance preparation so that you are more aware of the choices available — and the possible consequences of each choice/alternative.

Negotiators often talk about their BATNA — their Best Alternative To a Negotiated Agreement. Understanding the BATNAs of the parties — before negotiation and how BATNAs change as the negotiation process yields information — gives one a better sense of the alternatives available and the choices that can be made.

Good luck,
Steve

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