Affiliations: Faculty of Industrial Engineering and Management
Technion, Haifa 32000, Israel | Department of Industrial Engineering and Management
Ort Braude College, Karmiel 21982, Israel
Abstract: 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.