When it comes to negotiating, it is always important to have a Plan B in case the negotiation does not go as planned. This is where the concept of Worst Alternative to a Negotiated Agreement, or WATNA, comes into play. WATNA refers to the course of action that a negotiator will take if they do not reach an agreement with the other party.
While having a WATNA is crucial, some alternatives may be worse than others. Here are some examples of the worst alternatives to a negotiated agreement:
1. Walking Away: In some cases, walking away from a negotiation may be the best course of action if the other party is not willing to compromise or meet your needs. However, walking away without any other options can be detrimental. You may miss out on potential opportunities or solutions that could have been explored through further negotiation.
2. Legal Action: If the negotiation involves a legal dispute, taking legal action may seem like a logical alternative. However, legal action can be costly, time-consuming, and may not necessarily result in a favorable outcome. It is important to weigh the potential costs and benefits of legal action before pursuing it as a WATNA.
3. Burning Bridges: Burning bridges with the other party may seem like a way to assert your position, but it can have long-term consequences. The other party may be a potential business partner in the future, and damaging the relationship could harm future negotiations.
4. Accepting a Bad Deal: Settling for a bad deal simply because it is the only option can have long-term consequences. It may lead to resentment toward the other party and result in a lack of trust in future negotiations.
5. Doing Nothing: Choosing to do nothing and abandoning the negotiation may seem like the easiest option, but it may not be the best. Doing nothing may result in missed opportunities and leave the issue unresolved.
In conclusion, having a WATNA is important when negotiating, but it is crucial to choose the right alternative. The worst alternatives to a negotiated agreement, such as walking away, taking legal action, burning bridges, accepting a bad deal, or doing nothing, can have long-term consequences. It is important to consider all options and weigh the potential costs and benefits before choosing a WATNA.