Elements and Performance Criteria

The range of variables places the competency in context and allows for differences between enterprises and workplaces, including practices, knowledge and requirements. The range of variables also provides a focus for assessment and relates to the unit as a whole. The following variables may be present.

Plans:
· strategic, business and financial plans
· capital investment plans
· physical and human resource strategies
· vision and mission statements.

Business proposals:
· major purchases, contracts and leases
· investments and loans
· change of corporation strategy
· new products and new markets
· staffing and personnel
· take overs and mergers
· alternative services
· risk strategies.

Performance appraisal:
· achievement of goals, plans and directions
· productivity
· human resource usage
· corporation stability
· organisational structure
· financial performance
· supplier, client and customer satisfaction
· shareholder/stakeholder satisfaction
· compliance with legislation, stakeholder and community values and expectations.

Legal obligations:
· corporations law
· ASIC requirements
· OHS/EO and industrial relations
· ASX rules and regulations
· industry guidelines and codes of practice
· rules of incorporation and articles of association
· taxation and responsible officers
· directors'/officers' liability insurance.

External advisers:
· accountants, auditors and financial advisers
· lawyers
· scientists, economists, logistics and technicians
· external interest groups such as the Australian Conservation Foundation
· consultants such as national resources and environmental management
· Australian Institute of Company Directors.

Financial performance:
· debt to equity ratio, return on capital investment
· cash flow
· profitability
· attainment of business plans and budgets
· variation from business plans.

Human resource policies and practices:
· remuneration and superannuation
· performance agreements
· industrial relations
· training and development
· OHS
· access and equity
· career and succession planning.

Financial policies and practices:
· financial information systems
· financial statements such as balance sheets, profit and loss statements with notes, taxation returns and Director's statements.

Conflicts of interest:
· corporation interest and personal gain
· articles of association and legal requirements
· conflicting directorships or membership of organisations
· insider trading
· improper use of information
· bribery, gifts and entertainment
· favours for friends and relatives
· political activity.

Each unit of competency has an evidence guide that relates directly to the performance criteria and the range of variables. Its purpose is to guide assessment of the unit in the workplace and/or training program. The following components provide information to assist this purpose.

Underpinning knowledge and skills
The essential knowledge and understanding a person needs to perform work to the required standard include:
· human resource policies and practices
· OHS policies and practices
· financial management practices
· accounting and financial documents
· relevant aspects of taxation, contract and corporate law
· property transactions, leasing agreements
· improving board effectiveness and meeting procedures.

Practical skills
The essential skills a person needs to perform work to the required standards include:
· evaluating management and organisational performance
· critically analysing proposals for risks and opportunities
· recognising broad and management demarcation
· evaluating financial and accounting documents
· evaluating compliance with legal and regulatory requirements
· communicating decisions and information to corporation members and stakeholders.

Critical aspects of competence
Assessment must confirm the ability to:
· contribute to strategic and business planning
· contribute to assessment of viability of business proposals
· implement human resource and financial management systems
· monitor financial status and performance
· ensure legal compliance
· communicate effectively with board members, shareholders, staff and external stakeholders.

Interdependent assessment of units
This unit may be assessed with any other leadership units.

Context of assessment
Assessment is to be conducted in the workplace and in a simulated work environment.

Method of assessment
The following assessment methods are suggested:
· interview and oral questioning
· review of discussion papers, reports and plans prepared by the candidate and submitted to the board
· feedback from the Chair, board members, corporation managers and stakeholders about the candidate's ability to provide corporate leadership.

Resources required for assessment
· No recommendations.

This competency in practice
Industry representatives have provided storylines to illustrate the practical application of each unit of competency and show its relevance in a workplace setting.

'A vision for a new Sydney Fish Market'
The Sydney Fish Market currently earns income from commissions on auction sales, rent from its tenants and from its car park fees. With market deregulation, the volume of auction sales is trending down. The value of product has increased with a change in product mix. Because any increase in commission rates would be unacceptable to suppliers, the overall income from sales is likely to remain static. Rental income is difficult to increase given the constraints of the site. The current car park has limited spaces and there is resistance to any increase of fees.

With rising costs, the board needs to identify new business areas and new business opportunities. They intend to source product more widely and to attract suppliers from the aquaculture sector. The Internet offers the possibility of web-based sales. Apart from additional sales, there is also the opportunity for the Sydney Fish Market to provide independent quality and grade guidelines for Internet-traded products, as well as financial services such as credit insurance.

The site itself is tired. There is little scope to increase rental income without redeveloping the site and improving business opportunities for tenants. A multi-storey car park and development would bring more people to the site. The Board has commissioned several studies of retail needs and development options but rejected the outcomes on the basis of financial viability.

Any future development would need to fit in with the long-term plans of the Sydney Harbour Foreshore Authority. Planning permission would be needed for any major development or changed entry arrangements. Therefore, the Board of the Sydney Fish Market is now working with the relevant authorities, government and other local stakeholders to develop an integrated approach for redeveloping the site.

The CEO and Board members have demonstrated strategic leadership qualities by recognising the looming challenge of securing the long-term viability of the market and developing concrete strategies in response. The ultimate success of the venture will be crucially dependent on the Board's ability to maintain a clear vision of where the Sydney Fish Market is heading and whether those directions will be compatible with the interests of external agencies and stakeholders.