batna-zopa
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title: BATNA / RV / AV / ZOPA description: Know what happens if the deal fails.
BATNA / RV / AV / ZOPA
What happens if we don’t agree?
The most important number in a negotiation might be the number that never gets mentioned.
The value of walking away.
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BATNA
Best Alternative To a Negotiated Agreement
My best realistic option if the negotiation fails.
My Plan B.
The better my BATNA, the less dependent I am on reaching a deal.
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RV
Reservation Value
My limit.
The point beyond which I prefer my BATNA.
This is my red line.
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AV
Aspiration Value
What I ideally want.
Not my minimum.
My ambition.
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ZOPA
Zone Of Possible Agreement
The zone where our acceptable ranges overlap.
Example
My range:
€10M — €14M
Their range:
€12M — €16M
The ZOPA:
€12M — €14M
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BUT A ZOPA IS NOT A DEAL
Even when a mutually beneficial agreement exists, people can fail to reach it.
Why?
- distrust
- bad communication
- ego
- internal disagreement
- poor preparation
- bad process
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CONNECTED IDEAS
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REMEMBER
BATNA = if no deal
RV = my limit
AV = my ambition
ZOPA = where we can both say yes
