Clients often ask me whether to implement the Continuous or Staged Representation in the CMMI. I usually tell them not to worry too much about which representation, as it will all come out in the wash eventually.
The Continuous Representation allows you to select the order of improvement with respect to individual PAs in the model. The Staged Representation allows you to "select" a preselected grouping of PAs.
In actuality, you will select the PAs to implement in the order of the significance of the problems you are trying to address within your organization. Once you've worked off the most significant problem, you'll pick the next, and so on. After you've worked off all the significant problems associated with the PAs in Maturity Level 2, you'll want to have an appraisal.
The appraisal will in all probability be a Staged Representation appraisal as that's what the overwhelming majority of all appraisals conducted are.
So... you will most likely use the Continuous Representation to improve and the Staged Representation to appraise.
If you have any additional questions, please feel free to contact me at david.greer@americansystems.com.