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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.