Negotiation methodology: The DIDACTIC method.

Overview:
The DIDACTIC Negotiation Method provides Procurement professionals with a structured approach to prepare and conduct supplier negotiations.
It starts by clearly defining the subject of the negotiation to establish a precise and shared scope.
Procurement teams then identify the risks that could affect commercial, contractual, operational or supplier-related outcomes.
They determine the objectives to define expected results, priorities and acceptable negotiation limits.
The method also requires Buyers to arrange compensations, preparing possible concessions and trade-offs before entering discussions.
During the negotiation phase, participants confront the arguments by presenting, challenging and testing each party’s position.
They target reciprocity, ensuring that concessions are exchanged rather than granted without corresponding value.
The Buyer must continuously evaluate the results internally against the objectives and limits defined during preparation.
The final step is to conclude by securing a clear, balanced and actionable agreement between the parties.

Overall, DIDACTIC strengthens negotiation discipline, reduces improvisation and helps Procurement professionals achieve more controlled and value-oriented supplier agreements. 

Audience:
This module can meet a very wide audience as it is intended to any actor having to manage a Project or a Contract, negotiate in the frame of a Call for Tender, Claims or Purchasing/Contracting Processes: Contract engineer, Buyer, Package Manager, members of the Host Government having to deal with Oil and Gas Companies. This course is also intended to personnel of technical departments who manage and administer the Contracts and must deal with the Contractors and Vendors daily.

Deliverables: The main deliverables of a training on the DIDACTIC Negotiation Method are as follows:
- A structured negotiation preparation sheet covering all eight DIDACTIC steps.
- A clear definition of the negotiation scope, stakeholders and issues at stake.
- A risk assessment identifying commercial, contractual, operational and supplier-related risks.
- A hierarchy of negotiation objectives, including target, minimum acceptable position and walk-away limits.
- A concession and compensation matrix defining what can be exchanged and under which conditions.
- An argumentation plan anticipating both Buyer and Supplier positions and counterarguments.
- A reciprocity strategy ensuring that every significant concession generates value in return.
- An internal evaluation grid to measure negotiation progress against predefined objectives.
- A structured closing and agreement checklist covering decisions, commitments and follow-up actions.
- Increased ability for Procurement professionals to prepare, conduct and conclude supplier negotiations in a disciplined, value-oriented and risk-controlled manner.

Certificate: 
The training will be completed by an online test on EvalBox. Upon completion of the training, including the test, participants will be awarded a Certificate of Attendance issued by Adinergy.

1. Introduction to Negotiation: The various types and situations of negotiation. Negotiation in the Oil and Gas operational business - Composition of the Negotiation Team.
2. Define the Subject: Evaluation of the Balance of Power. Tool: BOP Matrix.
3. Identify the Risks: Identification of what is at stake in the negotiation depending on the evaluation of the Balance of Power. What is negotiable and non-negotiable. Tool: SWOT Analysis.
4. Determine the Objectives: Depends on Points 1 & 2 to define clear, measurable and realistic objectives. Tool: Company & Contractor Objectives Matrix.
5. Arrange the Compensations: A successful negotiation is a negotiation to the benefit of both Parties. Business Case in Yemen. Definition of the ZOPA and BATNA. Definition of Distributive and Integrative negotiations.
6. Confront the Arguments: How to conduct the negotiation. The Ego states – Behavior Styles - Active Listening – Listening Behaviors - Active Talking: The 7 principles of Active Talking – Emotions & Stress Management - Tools & Tactics useful when negotiating.
7. Target the Reciprocity: Obtaining counterpart to concessions – Protecting oneself against a non-profitable agreement.
8. Internally evaluate the Results: Tool: Reciprocity Evaluation Table.
9. Conclude: The Minutes Of Meeting.

Associated modules