Balancing Creation and Destruction: Measuring Operational Excellence in Knowledge Work Through GenAI

This study investigates the dual impact of Generative AI (GenAI) on business value in knowledge work by examining value co-creation and co-destruction, focusing on operational excellence. Despite the growing adoption of GenAI tools, a significant gap remains in understanding how their generative capabilities simultaneously enhance and constrain business value in real-world contexts. Prior research has predominantly focused on GenAI's technical potential, overlooking the complex interplay between its enabling and inhibiting effects on operational performance. To address this gap, we conducted a comprehensive investigation combining qualitative insights from 15 industry experts across diverse sectors and a quantitative deep dive into key operational metrics derived from software development teams’ GitHub repositories. Our findings reveal that while GenAI can enhance operational excellence by automating repetitive tasks, reducing workload, and fostering innovative problem-solving, it can also introduce risks such as productivity variability, erosion of contextual human judgment, and over-reliance on AI-driven processes. Furthermore, we identify inconsistencies in value creation outcomes across different teams, emphasizing the importance of tailored integration strategies and continuous oversight. By contextualizing these insights within value co-creation, co-destruction, and the value discipline lens, we offer actionable recommendations for practitioners aiming to achieve sustainable GenAI integration. Ultimately, this study provides a structured approach to evaluate GenAI’s dual impact. This study offers academics and practitioners a framework for balancing its co-creative potential with its inherent risks, particularly in knowledge-intensive environments.