Clarifying Least Acceptable Agreement Post-BATNA Development PPT

This PPT slide, part of the 72-slide Best Practices in Negotiations Strategy PowerPoint presentation, outlines the relationship between the Least Acceptable Agreement (LAA) and the Best Alternative to a Negotiated Agreement (BATNA) in negotiation strategy. It emphasizes that understanding the LAA is crucial after establishing the BATNA. The table presents 3 objectives: Reduced Markup, Improve Customer Service, and Improve Management Information Reporting. Each objective is paired with specific metrics that define the LAA, a spectrum of options, and the Most Desirable Outcome (MDO).

For Reduced Markup, the LAA is set at a 25% markup, while the MDO is a more favorable 15% markup. This indicates a clear range of acceptable outcomes, allowing negotiators to aim for better terms while knowing the minimum they can accept. The Improve Customer Service objective specifies a LAA of 90%, with an MDO of 98%. This suggests that while the minimum acceptable service level is defined, there is a strong desire to push for higher performance.

The Improve Management Information Reporting objective shows a need for monthly reports, with the MDO being weekly reports for enhanced tracking. This highlights the importance of timely information in decision-making processes. The key learning reinforces that the client should not end up in a worse position under the LAA compared to the BATNA, ensuring that negotiations are structured to safeguard interests.

Overall, the slide serves as a practical guide for executives to navigate negotiations by clearly defining acceptable and desirable outcomes, thereby facilitating informed decision-making.

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Negotiations Customer Service Best Practices