We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Accounting

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What Is a Decision Package?

By Alex Newth
Updated: May 16, 2024
Views: 11,762
Share

A decision package is a type of proposal created by a department within a business, and it normally concerns a project budget. It can be difficult to sway a company to spend money without knowing if there will be a return, so such a package normally includes project details and marketing research. It is called a decision package because the company’s decision makers will approve or veto the package. If they find that the package is not currently suitable, then most companies allow the department to revise and resubmit the package.

Companies tend to consist of many different departments. While each department is under the same umbrella company, each individual department usually has different budgeting figures and the department heads have to find a way to work within that budget. If a department needs more money for a project, then the department head normally has to submit a decision package detailing how much extra money is needed.

A company normally does not like to throw its money around without the chance of there being some return. This means a decision package normally has to be very detailed, showing the company how the specific project will bring in more money or improve the company. To justify the costs, the package commonly includes estimates, plans, project information and market research — if this research is necessary for the project.

When an important decision needs to be made within a company, it normally falls on decision makers. They may be the heads of the company, or it may be that a larger department is tasked with this responsibility for the departments under it. After a decision package is created, the decision makers will look it over to ensure the information is correct and to approve or deny the package.

If the decision makers approve the new budget, then the money is allocated to the department and it can follow through with the new project. Denial of a decision package does not necessarily mean the budget is permanently turned down. Most companies allow the department to go through the package and edit details or shave down the required resources until it can be comfortably approved. A package sometimes may be turned down because of incorrect information, and the department just has to correct the incorrect sections to gain approval, but a more common cause is that the budget request is too high.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Discussion Comments
Share
https://www.smartcapitalmind.com/what-is-a-decision-package.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.