Why Powerful CEOs Always Have a BATNA

As a CEO coach, I'm often asked:

"How can I negotiate when I don’t have a good alternative?"

My answer: Let's find you a great alternative.

Understanding your BATNA—Best Alternative to a Negotiated Agreement—is a powerful mindset tool.

Let me share a story from a few years ago.

I was coaching a late-stage CEO who was under immense stress.

He was dealing with an intimidating investor—a well-known Silicon Valley figure with a reputation for firing CEOs on a whim.

Under his stock agreement, if he was fired, he’d walk away with nothing.

As you can imagine, this led to sleepless nights.

During one of our sessions, I asked him:

"If you left the company with nothing, what would you do?"

Initially, the idea was terrifying. But as we explored this question, something remarkable happened.

He began to explore the opportunities available to him and found several paths he could pursue—many he was aware of but hadn’t fully considered.

We even calculated how much he could earn annually from these options.

It was far more than he'd realised.

By the end of the session, he was just as excited about the possibility of leaving as he was about staying.

This mindset shift was transformative.

By understanding his BATNA, he found himself in a much stronger negotiating position.

And this confidence helped him stand his ground in subsequent discussions with the investor.

So next time you’re facing a tough negotiation, take the time to explore your BATNA:

• List all your potential alternatives.
• Assess them with an open mind.
• Quantify the value and opportunities you have.

When one door closes, another one opens.

We often underestimate the opportunities available to us.

You might be surprised at how empowering this exercise can be.