The Iceberg Model is a powerful metaphor for understanding the hidden complexity of organizational change. Like an iceberg, only a small part of the factors that determine the success of a change initiative are visible above the waterline. These visible elements include structures, processes, measurable goals, and observable behaviors. Beneath the surface lies the much larger, invisible part: mindsets, values, emotions, unwritten rules, informal networks, and power dynamics.
The key insight: lasting transformation depends on addressing the invisible forces, not just the visible structures.
Origin and Purpose
The model’s conceptual roots lie in psychology and depth psychology, where the distinction between conscious and unconscious processes was first established (e.g., Freud, Jung). In the 1970s and 1980s, organizational theorists adapted the iceberg metaphor to explain why structural and procedural changes alone rarely create lasting transformation.
Its purpose in modern change management is clear: to make hidden dynamics visible and manageable. By highlighting what is usually overlooked, the model helps leaders, teams, and change agents design interventions that go beyond surface-level adjustments.
Core Elements
The Iceberg Model distinguishes two interdependent layers:
· Visible level – organizational charts, processes, formal roles, KPIs, technologies, and measurable outcomes. These are logical, fact-based, and relatively easy to design or monitor.
· Invisible level – assumptions, beliefs, emotions, values, informal norms, and power relations. These are instinctive, hard to quantify, and often unspoken.
Every structural action on the visible level triggers emotional and cultural responses beneath the surface. Conversely, changes in beliefs or relationships eventually reshape structures and processes. The accompanying image (see figure) visually illustrates this imbalance—roughly ten percent visible, ninety percent hidden.
Application and Good Practice
Diagnosis before design
Combine hard data (metrics, process audits) with qualitative insights (interviews, focus groups, observations) to uncover hidden fears, informal power, and resistance.
Meaningful communication
Communicate not only what will change but why. Use storytelling and open dialogue to address values and emotions and to build trust.
Participation and co-creation
Early involvement of employees exposes unspoken assumptions, creates ownership, and lowers resistance.
Leadership and cultural work
Leaders need to sense and respond to subtle signals—tensions, trust issues, and psychological safety. Role-modeling and the protection of dissent are crucial.
Continuous monitoring
Beyond outcome metrics, track leading indicators such as sentiment, collaboration quality, and behavioral shifts. This ensures that invisible changes are recognized and acted upon.
Practice Examples
· Digital platform introduction: A technology company launched a new platform with flawless technical planning but faced strong resistance. Only when hidden fears and informal power structures were openly addressed did adoption rates increase.
· Agile transformation: An international logistics company initially focused on processes and tools. Real agility emerged only when leadership tackled unspoken norms such as fear of mistakes and hierarchical decision-making, supported by rituals for open feedback and transparent error culture.
Criticism and Limitations
· Oversimplification: Reducing organizational complexity to “visible vs. invisible” can overlook important nuances and middle layers.
· Measurement challenge: Invisible factors are difficult to observe and quantify and can be interpreted differently by different stakeholders.
· Risk of inertia: Endless debate about culture without concrete action can delay progress and weaken credibility.
· Resource requirements: Addressing hidden dynamics demands time, trust, and skilled facilitation—resources not always available in fast-paced projects.
Integration with Established Approaches
The Iceberg Model is most effective when combined with other proven frameworks and concepts such as Kotter’s 8-Step Model, Living Transformation®, Living Strategy, and the use of leading and lagging indicators. It also connects well with ideas like psychological safety, change fatigue, and the dual operating system approach. Together, these frameworks help ensure that both visible structures and invisible human factors are addressed consistently.
CALADE Perspective
At CALADE, the Iceberg Model is a core lens for diagnosing and designing change. We create safe spaces for dialogue to surface hidden fears, values, and informal power relationships. Rather than treating the invisible as a problem, we view it as the essential arena where real transformation happens.
In our Living Transformation® approach, visible structural work (roles, processes, portfolios) is deliberately coupled with cultural work and leadership development. This ensures that change is not just executed but lived and sustained.
Related Terms
· What is the Living Transformation?
· What is the Living Strategy?
← back to list