"Building Institutional Capacity for Data-Informed Decision Making" is the third installment of the Cutting Edge series, which aims to help colleges engage faculty, scale successful interventions, and create a strong culture of evidence through use of data to strengthen their institutional change and student success efforts. Though the authors begin by presenting a review of the most common challenges and pitfalls to aligning capacity in these areas with student success (Section 1), the focus of this guide is on promising practices that institutional leaders, IR and IT personnel, and faculty and staff can use at their colleges (Sections 2 and 3). Throughout the guide they offer examples of how these practices have been applied at community colleges, including detailed examples of two colleges that have strengthened their IR capacity through their involvement in Achieving the Dream: El Paso Community College and Montgomery County Community College (Section 4). In Section 5, they offer colleges using this guide a self-assessment tool for evaluating their institutional capacity for data-informed decision making. This tool is heavily based on the readiness assessment colleges submit to Achieving the Dream when they begin participation; thus, they have named it the Augmented Assessment Tool for Achieving the Dream Principle 2: Use of Evidence to Improve Policies, Programs, and Services. Rather than use this tool as a grading device, the authors recommend that colleges and leaders use it as a way to prompt careful thinking and thoughtful discussions with a range of stakeholders from across the college. A list of resources is appended. (Contains 10 footnotes and 25 resources.)