Breaking the Performance Ceiling: Reframing the Value–Effort Paradigm in the Age of AI.

Authors:

Dr Pablo Colman; Abdullah A. Mesfer

ABSTRACT

This paper challenges the long‑standing assumption that organisational performance inevitably plateaus as improvement efforts encounter diminishing returns. Drawing on a longitudinal operational excellence dataset from 2016 to 2025 and complementary qualitative insights, the study documents a 51% improvement between 2016 and 2020, followed by a period of stabilisation. While this pattern appears consistent with the traditional value–effort paradigm, qualitative evidence reveals that emerging digital technologies—particularly artificial intelligence, process mining, automation, and real‑time monitoring—are reshaping the improvement frontier.

The paper proposes a new conceptual model that reframes the value–effort relationship by integrating modern digital capabilities into the improvement trajectory. The model suggests that performance ceilings are not inherent but are instead artefacts of pre‑digital organisational systems. As the first phase of a broader research programme, the model offers a theoretically grounded pathway for sustained improvement, while acknowledging that empirical validation is yet to come.

The study contributes to operational excellence and quality management literature by integrating contemporary technological developments into the discourse on diminishing returns and by offering a conceptual foundation for continuous, technology‑enabled performance growth.

Citation:

Colman, P., and Mesfer, A., 2026. Breaking the Performance Ceiling: Reframing the Value–Effort Paradigm in the Age of AI. Journal of Operational Excellence in Mergers and Acquisitions, 2(2), pp. 1–21.