BATNA in Action
You can find this storyboard in the following articles and resources:
How to Negotiate Your Salary
by Nathanael Okhuysen
If you want to sell a couch, negotiate salary, or be ready for an global merger, a BATNA is a must. BATNA stands for best alternative to negotiated agreement. Visually display your negotiation strategy to share with your colleagues or partners with the help of the article, Negotiation with BATNA.
Check out some of our other business articles!
Storyboard Description
Negotiating Salary - Corporate training storyboard
Storyboard Text
- Chris and Vishal both have their bottom lines in mind as they go into the negotiation.
- I'm not settling for less than a 5% increase.
- Chris's Bottom Line
- Thanks for sitting down to talk this out Vishal.
- I definitely can't go above $3,750. We just don't have it in the budget.
- Vishal's Bottom Line
- Of course, Chris. We're overdue to review your compensation, and I think you deserve the raise.
- Vishal interpret's Chris's opening as indicative of her BATNA: leaving to work for a different company. He considers his BATNA: hiring a new worker.
- That's promising. Maybe I should ask for more.
- On-boarding a new employee is expensive. Plus we'd lose Chris's institutional knowledge. I think we need to do what we can to retain her.
- I've been reviewing comparable positions and I think a 10% increase would put me in line with other companies.
- Yikes! Sounds like she's been looking at other positions. We might have to replace her with a new employee.
- Vishal's BATNA
- Chris considers her BATNA and tries to get a sense of Vishal's bottom line. She also states that she would like to stay with the company.
- I know I could get a job at Competition Inc., but the salary would be about the same, and I don't really want to change jobs.
- Chris's BATNA
- We simply don't have the budget for that scale of increase. But we value your work, and would like to do what we can to keep you here.
- I'd like to stay here too, what could the company manage?
- Vishal evaluates the situation and decides that Chris's BATNA is probably close to his bottom line. Relying on Chris's desire to stay, Vishal extends an offer supplemented by an additional concession.
- That would work, but let me see if I can push it a little higher.
- Let's split the difference. 6.5% and review after 8 months, after the fiscal year ends?
- I know the budget would allow for 7%. Or it could be 6%, and we can revisit it again in 6 months, rather than this time next year.
- Vishal signals that Chris's demand is beyond his bottom line, and that he knows her BATNA is probably to leave the company.
- Oops, I may have overplayed that. I know there are other people who could do this job.
- Sensing Vishal is close to his bottom line, Chris counters within the boundaries Vishal has established. Both parties are within their goals for the negotiation, and neither needs to turn to their best alternative.
- That would work. Let me double check the numbers and draw up the paperwork.
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