A best alternative to a negotiated agreement (BATNA) is a concept developed during the 1970s by two researchers, Roger Fisher and William Ury. The concept of BATNA means to identify and consider the best alternative that a negotiator has if the negotiation ends without a deal. It can also be described as a way to gain leverage by knowing one's options outside of a negotiation.

In essence, BATNA is a method of giving the negotiator a chance to walk away from the negotiation with the best possible outcome available. BATNAs are not just plan Bs, but are the best alternative for a negotiator by comparison to their counterpart’s best alternative. In theory, the negotiator with the better BATNA should have an advantage in negotiations. Knowing the BATNA can provide the negotiator with a powerful bargaining tool.

Having knowledge of the negotiation's BATNA is essential to developing and maintaining an effective negotiation strategy. Strategic negotiators use their BATNAs to determine their reservation point. This is the point at which an agreement can no longer be reached, and the negotiator must pursue a different option.

The best way to establish a negotiator's BATNA is to have knowledge of all possible alternatives available. This means researching the market to identify potential opportunities before entering into the negotiations. A negotiator may also be willing to consider strategic options such as reconsidering the initial agreement proposal, or finding an intermedial party to join the negotiation, or adjusting the negotiations.

Using BATNAs in a negotiation can be an effective strategy for coming to a compromise. Creating an effective BATNA can open the door for a negotiator to negotiate from a more advantageous position. Having knowledge of a BATNA allows for better incentives and risk analysis for each alternative. With this knowledge a negotiator can make an informed decision about how to proceed, regardless of the outcome of the negotiation.

Using BATNAs can help to reduce the risk of an unfavorable outcome, such as not reaching an agreement, or reaching an agreement with unfavorable terms. When used correctly, BATNAs can also build trust between opposing parties by providing them with a better understanding of what the other’s alternatives may be.

In conclusion, BATNAs are an important piece of the negotiation process. They can provide a negotiator with leverage, control and an understanding of their options. By developing and utilizing a BATNA, a negotiator is much more likely to be successful in any negotiation.