Offices and Office Work: the Arrival of the Network Era

Expert

This was followed by the corporate hegemony of the twentieth century. A defining feature of corporatism was pyramidal departmentalisation – the tiered separation of functions into distinct areas of responsibility (finance, legal, payroll, human resources, marketing, training and so on), within which workers ‘progressed’ their careers through gossamer-thin layers of seniority. The corporate era saw organisations become ever larger and more complex to meet the demands of the rapidly evolving, global trading environment. Command-and-control management oversaw unchanging and predictable corporate organisations which planned ahead with a degree of certainty, providing jobs for life. Corporate organisations were, in many respects, inward looking, impermeable and self-sufficient.

Finally, the 1990s saw the arrival of the digital era, when the office economy was transformed by technology-enabled knowledge work. The mid-1980s saw the birth of the digital revolution in the office: personal computers revolutionised work, and their impact was compounded by email, the internet, mobile/smart phones and then social media. Within a very short period the world of work was turned upside down, with the rise of the knowledge economy, knowledge business and knowledge work, along with a switch from corporatism to individualism with major impacts for social relations in the office.

It is the contention here that the office economy is on the cusp of entering a fifth era, what I refer to as the network era. This era will see a decline in ‘corporate islands’ in favour of inter-dependent businesses, increasing specialisation and knowledge-based work shaped by artificial intelligence. Business ecosystems will  involve large and small companies working together, with contingent workers and specialists across extensive and collaborative relationships. The critical nature of connectivity, changing structures and the priorities of knowledge workers are all altering the role and form of the corporation. Social attitudes to work are changing and the notion of working for a single employer over decades is rapidly disappearing. Growing numbers of workers now ‘self-manage’ and exercise choice over where, when and how they undertake their work. In addition, the ‘corporate islands’ of past times are becoming more permeable.

These trends have huge implications for the real estate industry. Traditional notions of company structures and career paths are being swept away. Just as the previous office era was defined by technology, so the coming era will be defined by the management of networks, relationships and knowledge. The impact on the workplace is potentially profound: instead of managing a fairly uniform, compliant and sedentary work force, managers will find themselves managing a mobile, demanding, disruptive and discerning workforce.

As well as providing physical places from where company plans, priorities and purpose can be directed, and places where work ‘can get done’, the role of offices in the network era will include providing a venue for meeting, collaborating, sharing, learning and socialising Just like the coffee houses three centuries ago.

While in the past new businesses had to invest in expensive and long-term assets, including ICT systems and real estate, today’s technological landscape enables them to compete globally with relatively little capital outlay, using cheap and ubiquitous technology – without creating vast hierarchical armies and departmental structures. The network era will allow individuals and micro-businesses to trade their intellectual capital using cheap and ubiquitous technology. They can incorporate online and raise capital through crowdfunding. They can find skills around the globe. In larger organisations, working relationships will form and unform as required, driven by project and task needs; and competitors will collaborate.

The company continues to need its legal protection, but for growing numbers, there is no risk and reward issue, and few transaction costs. The raison d’etre of the firm is shifting to something more ephemeral – recognising the shifting priorities of workers: the desire for a community of relationships. Whether working in a micro-business or as part of a larger one, more and more people want to share purpose, values and experience rather than office politics and a bonus pot. To accommodate this, companies will be more fluid, porous and adaptive, encouraging networks within and between businesses.

One of the defining characteristics of the network era will be change – constant and unpredictable change. Organisations will need to be capable of responding and adapting, and networks make this more achievable than traditional pyramidal hierarchies. Networks contain far less inertia and nodes can be manoeuvred to suit changing business priorities.

Our traditional assumptions around the nature of office work and office-based organisations need to change, and the network era will demand innovative approaches to the design, delivery, occupation and management of offices.

Release date: June 2025