Benchmarking the Lean Enterprise: Organizational Learning at Work

Abstract

Following the success of the Toyota Production System in the world of automotive manufacturing, the new business philosophy of the lean enterprise is gaining ground in that industry and in many others, among them construction; it appears to be positioned well to replace nearly a century of conventional or mass production practices. This study investigates the use of benchmarking in transforming a conventional organization into a lean enterprise. In this transformation, the management of knowledge and the practice of continuous learning and improvement figure prominently. From the perspective of benchmarking as a learning tool designed to reduce uncertainty in the organizational environment by reference to peer experience, the study distinguishes various forms of benchmarking and then addresses issues in knowledge management, information seeking and use, the diffusion of innovations, resistance to change, benchmarking strategies and practices, and benchmarking teams and protocols, concluding with a critique of its limitations.