A Capability Maturity Model for Knowledge-Based Decisionmaking

Decisionmaking is an essential part of operational and managerial functionality in an organization. Improvement of decisionmaking capability is vital for organizational success. In this context, knowledge resources must be properly managed to provide an environment for well-informed decisions. Knowledge is integral to decisionmaking; and decision quality is contingent on knowledge quality – and, hence, knowledge management. We describe a Decisionmaking Capability Maturity Model (DM-CMM). It presents two perspectives: maturity levels corresponding to decisionmaking capability, and inter-level maturation stages corresponding to knowledge management capability. The five levels comprise ad-hoc, planned, defined, controlled and sustained decisionmaking. The four intermediary knowledge stages include reception (individual knowledge capture), revised (team-based knowledge revision and organization), retained (measure-based knowledge formulation and assessment), and reuse (reapplication of prior effective decisions). Each level is categorized through four attributes: formality (structure), foundation (reasoning), favor (assessment) and feedback (performance). Each stage is partitioned into four classes of activities: acquisition (developing knowledge), arrangement (representing and archiving knowledge), appraisal (evaluating knowledge), and application (retrieving and reusing knowledge). These provide a multi-dimensional view in the DM-CMM. Our model is intended to guide organizations wishing to improve their decisionmaking capabilities, and to incorporate the appropriate supporting knowledge required.