TITTLE: Negotiation Game

OBJECTIVE: To Develop a program to train executives in Negotiation Skills.

PROGRAMME FOR THE TRAINING OF 10 EXECUTIVES MEMBERS OF IKWERRE CLUSTER
DEVELOPMENT BOARD (CDB) IN THE NEGOTIATION PROCESS WITH SHELL PETROLEUM
DEVELOPMENT COMPANY ON GLOBAL MEMORANDUM OF UNDERSTANDING (GMoU) BY
ACCORD FOR COMMUNITY DEVELOPMENT.

PROFILE

Accord for Community Development is a development institution based in Nigeria. Accord specializes in the
provision of policy-relevant research and strategic blueprints for sustainable management of resources in rural
marginal communities as well as disadvantaged urban centers. Accord is actively committed to the building of
institutions and structures for the promotion of sustainable development through participatory approaches. Equipped
with an effective, qualified and motivated workforce, they are focused on providing world class development
services in line with international best practice. They have over 20 years of experience working for sustainable
development in the Niger Delta. Accord is duly registered with the Corporate Affairs Commission of Nigeria with
registration number 12,962/6/INCT.

Ikwerre Cluster Development Board is comprised of communities from Ikwerre local government area of Rivers
state with its headquarters at Isiopko. The communities in the cluster are some selected few from various
communities in the LGA and the major criterion for their selection is that they are all host communities to SPDC
activities at various levels.
The SPDC/Ikwerre cluster GMoU was signed in January 2018 in order to facilitate the peaceful development of the
people in the cluster. This agreement has expired and new agreement has to be negotiated and signed off.

The communities in this cluster belief that the GMoU was made in good faith and without prejudice, with a view to
consolidating the existing cordial and mutually beneficial relationship between them and SPDC. The GMoU is
intended to facilitate and create a climate of understanding between the parties

OBJECTIVE OF THE PROGRAMME

 To train 10 Ikwerre CDB executives on the negotiation process.

 To know the principles that govern the negotiation process
 To acquaint them on the anchoring techniques
 To be professionals on communication skills
 To know the different behavioral patterns
 To have a good relationship management and conflict resolution skills
 The over aching aim is to achieve a win-win negotiation within the negotiation anchor of ($350,000.00) for
the cluster and to sustain the good existing relationship between the cluster and Shell.

TIME FRAME

The entire negotiation on the renewal process has a time frame of three weeks.

TOPICS:

1. NEGOTIATION PLANNING AND PREPARATION

 Structure of negotiation
 Negotiation Analysis/Nomenclature of Negotiation (The negotiation Dance, BATNA, ZOPA,
Reservation value, etc)
 Skills to develop (anchors, managing time and the magnitude of offers.
 2. EFEFCTIVE COMMUNICATION IN NEGOTIATION
 The role of communication
 The role of Emotions in Negotiation
 Understanding Emotional Intelligence and positive behaviors in negotiation.
 The barriers in communication

3. INTEREST AND POSITIONS

4. CONFLICT RESOLUTION & MANAGEMENT

5. CLOSURE

MAJOR CHALLENGES AND HOW TO MANAGE THEM

The major challenges that will be faced in the course of the negotiation process are as follows.

 Agreement on the amount. Shell has put the agreement amount at ($250,000.00). This is cost
commitment for developing the area for one year.
 Shell has set the initial anchor price at $250,000.00 which will be rejected by the executives of Ikwerre
CDB with a counteroffer of $400,000.00
 Shell will have to address the perceived value of the cluster being an oil-bearing community and can stop
Shell operations as projected by their nominated representatives
 They will have to make a presentation of the benefits that the communities will bring to the company and
country at large through their planned corporate social responsibility projects for the host communities
 They must dwell more on the benefits of the presence of the company in the communities such as job
creation and energizing of the economy by influx of people into the communities thereby promoting
positive urban growth
 Since the anchor target is $350,000.00, the CDB executives can raise the negotiation bar to $250,000.00
after two weeks of discussion. In that case both parties will still benefit and continue with the existing
relationship.

Negotiation time frames

The negotiation process time frame has been set at three weeks

 In the case of deadlock which usually happens in most negotiation process, one-week break can be taken
for both parties to re access their positions
 If there is are tangible reasons, the anchor target can be exceeded by $10,000.00 subject to the approval of
the Shell

Close out

The negotiated amount and terms should be written and signed off by the parties

The negotiation process will be based on these three pillars, which must be managed in addition to the challenges
mentioned above.

Perceive

Shell negotiators must display the ability to manage the perceived value of the CDB as expressed through their
representatives
Cognitive bias

Shell negotiators must manage the huge expectations of the communities, if there is alignment, barriers will set in,
hindering the negotiation process and suggesting a possible conflict.

Emotional intelligence

Some of the attitude of the communities is based on the fact that Shell acquired their land for operation and the oil is
from their land requires to be adequately managed. Most of their cultural heritage are gone even though they were
adequately compensated.