Purpose

Maximize our value potential by developing the best possible alternatives, thus building our confidence to negotiate and our comfort with the possibility of reaching no deal.

When to Use

The moment we become aware of a negotiation we should start identifying and building alternatives. Late is better than never, but waiting until we’re close to an agreement makes us anxious, perhaps desperate, and more likely to accept a bad deal.

References

• Peter D. Johnston, Negotiating with Giants: Get what you want against the odds (Negotiation Press, 2012), chapter 4: Level the Playing Field: Make Yourself Bigger and Stronger
• Deepak Malhotra and Max Bazerman, Negotiation Genius: How to Overcome Obstacles and Achieve Brilliant Results at the Bargaining Table and Beyond (Bantam, 2008), chapter 11: Negotiating from a position of weakness