Understanding Threshold and Non-Threshold projects

A major principle underlying the design of Axiom Capital Planning is how it handles Threshold and Non-Threshold projects.

The following table explains the differences between these project types:

Project Type Description
Threshold (Pro Forma)
  • 60–80% of capital constraint
  • Usually about 30 projects system-wide
  • Requires in-depth, consistent analytics (pro forma)
  • System-level decision making (not entity level)
Non-Threshold (Summary)
  • 20-40% of capital constraint
  • Consists of all capital items not considered Threshold
  • Requires standardized information to facilitate efficient evaluation
  • Decentralized decision making (Entity and/or VP level)

While your organization can build your own forms and processes around each type of capital project request, Axiom Capital Planning provides standard templates for submitting, reviewing, and approving Threshold and Non-Threshold projects.