Iceberg model of corporate culture: seen and unseen

The iceberg model originally comes from applied psychology. Edward T. Hall first transferred it to social systems and models of intercultural communication. Edgar Schein popularised the model in business administration and in organisational development to describe corporate culture.

The model owes its spread to its clarity. It visualises in a memorable and easily understandable way how the visible and easily accessible elements of corporate culture are connected with the invisible, hidden parts of behaviour in organisations. The version described here is transformis's own presentation and interpretation, based on the models of Edgar Schein and Edward T. Hall.

In terms of the iceberg model, corporate culture consists of shared communication routines and basic assumptions for solving internal and external problems. These routines are ultimately the organisation's reason for existence and serve the delivery of performance within the company.

Corporate culture consists of visible and invisible elements. Outsiders and new employees therefore often understand a culture barely or not at all. The part of the iceberg above the surface describes the visible elements. The much larger part below the surface illustrates the hidden elements of corporate culture.

The visible elements of culture can be influenced directly, by leadership or management. A vision of the future, the strategy, guiding principles or corporate guidelines can be defined.

What organisational significance these definitions and leadership decisions acquire, by contrast, cannot be influenced directly. The invisible elements of corporate culture can only be influenced indirectly. This distinction is fundamental for work on culture: a definition by leadership initially changes only the visible part of the iceberg.

The visible elements of corporate culture include the strategic objectives, the vision of the future and the company's external image. Also visible are the conduct and impact of managers and employees and the premises.

Then there is the spoken or written word, for example guiding principles and sets of rules. All these elements are easily accessible and can be defined by leadership.

Below the surface lie the relationships in the company, differing leadership behaviour, power relations and status. The interpretation of rules and informal rules are also among the invisible elements of corporate culture.

Also hidden is the resonance of written or spoken words, for example the actual significance of guiding principles. Further elements are the tradition of the organisation and the traditions within the organisation, the attitudes, fears and feelings of managers and employees, and the basic needs of employees, for example for security or recognition.

Corporate culture can also be understood as the company's DNA, which develops over time. It is deeply rooted in the subconscious of the members of the company and therefore cannot be changed by order or at the push of a button. Developing corporate culture further takes time and a smart approach.

The first step is to make the experienced corporate culture tangible. In the transformis approach, the Systemic Culture Compass serves this purpose. On the basis of quantitative and qualitative analyses, the instrument provides insight into the existing corporate culture. Management can use it to open up a gap between target and actual and work on the relevant cultural topics in the company.

On the basis of the culture survey and the gap identified between target and actual, a tailored learning architecture is created that effectively interlinks organisational and individual learning and thus makes the change in corporate culture possible. Transparent monitoring of effectiveness and regular reflection accompany the measures so that any need to adjust the approach is recognised and acted on early.

Three questions stand at the beginning of such a process. The first is what the current culture looks like. The second clarifies what should decisively shape the target culture. The third asks where, from the perspective of top management, managers and employees, the most urgent need for action in the company lies.

With the answers, corporate culture can be aligned more closely with the strategic objectives and mobilised as a success factor.