Unit of competency details

Unit descriptor 

This unit describes the performance outcomes, skills and knowledge required to determine and prepare a distribution plan. It encompasses determining business objectives, defining markets and their needs, determining products and services, identifying and selecting distribution channels, establishing performance measures and documenting the plan.

This unit is applicable to individuals working within enterprises and job roles subject to licensing, legislative, regulatory or certification requirements including legislation administered by the Australian Securities and Investments Commission (ASIC).

Application of the unit 

This unit can be applied across the financial services sector and has application to those job positions which have the responsibility of taking products and services to markets. It may be applied within organisations of various sizes and across a range of customer bases.

Prerequisite units 

Employability skills 

This unit contains employability skills.

Elements describe the essential outcomes of a unit of competency.

Performance criteria describe the performance needed to demonstrate achievement of the element. Where bold italicised text is used, further information is detailed in the required skills and knowledge section and the range statement. Assessment of performance is to be consistent with the evidence guide.

ELEMENT 

PERFORMANCE CRITERIA 

1. Determine business objectives

1.1. The distribution aspects of the corporate strategic and business plans are identified

1.2. Current situation is analysed to determine opportunities in accordance with corporate plans

1.3. Desired financial resource  and market parameters are identified and documented

1.4. Objectives are developed by consultation with stakeholders

2. Define markets and needs

2.1. Potential markets  are identified and assessed within corporate strategy and philosophy with market groups clearly delineated

2.2. Cost-benefit analysis results are within plan projections

3. Determine products and services

3.1. Likely future trends in selected markets are assessed

3.2. Range of products or services  to meet market needs and profit objectives are selected

4. Identify and select distribution channels

4.1. Current distribution channels  are identified and their advantages and disadvantages are assessed

4.2. Channels are chosen according to objective criteria

5. Determine and establish enterprise structure

5.1. Suitability of current structure for proposed distribution channels is evaluated against business objectives, potential markets and services to be provided

5.2. Alternatives are assessed against business objectives, potential markets and services to be provided

6. Establish performance measures

6.1. Financial measures  are identified and documented

6.2. Timeframes are established and processes to monitor performance outcomes determined and documented

7. Document the plan

7.1. Plan components  are integrated into an agreed format

7.2. Plan is documented in a logical, concise and conclusive manner with sign-offs obtained from authorised personnel

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the skills and knowledge required for this unit.

Required skills 

• well-developed communication skills to:

• determine and confirm information, using questioning and active listening as required
• delegating work
• liaise with others, share information, listen and understand
• use language and concepts appropriate to cultural differences

• numeracy and IT skills to:

• perform distribution planning
• perform calculations related to achieving required outcomes
• use computer applications (word processing, spreadsheet, database, specific purpose computer systems) to assist in achieving required outcomes
• access and update records electronically
• access web based information services

• well-developed literacy skills to read and interpret documentation from a variety of sources and record and consolidate relevant related information
• research and analysis skills for accessing and interpreting relevant information, report analysis and decision making
• interpersonal skills
• organisational skills, including the ability to plan and sequence work

Required knowledge 

• client profiles
• distribution and marketing
• expense ratios
• human resource trends
• markets to be served
• planning processes
• sales trends
• sales/market mix
• sales/production
• relevant sources of advice

EVIDENCE GUIDE 

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment 

Critical aspects for assessment and evidence required to demonstrate competency in this unit 

Evidence of the ability to:

• maintain knowledge of available products and services
• determine business objectives, products and services
• define markets and needs
• identify and select distribution channels
• establish performance measures
• document plans.

Context of and specific resources for assessment 

Assessment must ensure:

• competency is demonstrated in the context of the work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment
• access to and the use of a range of common office equipment, technology, software and consumables
• access to organisation records
• access to organisational policies and procedures.

Method of assessment 

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

• evaluating an integrated activity, which combines the elements of competency for the unit, or a cluster of related units of competency
• observing processes and procedures in workplaces
• verbal or written questioning on underpinning knowledge and skills
• evaluating samples of work
• accessing and validating third party reports
• setting and reviewing workplace projects and business simulations or scenarios.

Guidance information for assessment 

RANGE STATEMENT 

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Resources  may include:

• accommodation
• equipment
• finance
• goodwill visibility
• location
• outstanding options
• people.

Market  includes:

• any opportunity that is the object of a specific distribution approach.

Products or services  may include:

• advice on insurance
• agreements with distributors
• claims management
• client lifetime value
• compliance and regulatory matters
• financial needs analysis
• financial planning
• general sector property or liability products
• life sector products
• negotiating terms with insurers/reinsurers
• outsourcing options
• placement of risks
• premium financing
• risk assessment
• superannuation products
• wholesaling of risks
• other financial services.

Distribution channels analysis  may include:

• advisers
• affinity groups
• associations
• brokers
• direct response
• electronic interface
• existing clients
• media
• retail outlets
• telemarketing
• wholesale outlets.

Financial measures  may include:

• capital
• cash flow
• compensation arrangements
• critical path
• deadlines
• delivery dates
• expenditure
• income
• investment
• lead times
• leases
• loans
• milestones
• service agreements
• surplus
• taxation and legal considerations.

Plan components  may include:

• analysis tools (e.g. SWOT)
• formatting requirements
• narrative.

Unit sector 

Insurance life distribution

Competency field 

Co-requisite units