That's usually the start of a decline. When Mercedes bought Chrysler and wanted to become the next GE in the 80s they built a new huge administrative facility far away from production and moved management there. That was the start of a long decline of the company until they got rid of Chrysler and closed the administrative facility.

It's a very bad design if management gets physically separated from the actual purpose of an institution. They get detached from the actual work and live in their own reality.