Core Culture and Observable Culture
Core and observable culture are two facets of the same organizational culture, with core culture being inward-facing and intrinsic and observable culture being more external and tangible (outward-facing). Core culture, as the name denotes, is the root of what observable culture will communicate to stakeholders. Core culture is more ideological and strategic, representing concepts such as vision (long-term agenda and values), while observable culture is more of a communications channel (i.e., stories, logos, symbols, branding, mission statement, and office environment).
Edgar Schein and Core Culture
One useful theoretical framework to consider when differentiating between core and observable culture is Edgar Schein's Organizational Culture Model. This mode simply and efficiently illustrates the cultural facets of a given organization as an upside-down triangle.
Schein's model of organizational culture
Diagram of Schein's organizational behavior model, which depicts the three central components of an organization's culture: artifacts (visual symbols such as office dress code), values (company goals and standards), and assumptions (implicit, unacknowledged standards or biases).
The broader base at the top of the inverted pyramid represents artifacts, the simplest and most physical (i.e., observable) elements of a given culture. This includes the way desks are situated in an office (collaborative or individualistic?), the colors and shapes used in the logo, the general dress code, etc.
The next level is values, which bridges the gap between observable and core culture. Values are explicitly and observably stated in organizational literature (i.e., the employee handbook and mission statement), but also implicitly executed in individual behaviors. While it is observable when the CEO makes a public statement for shareholders or when the promotional team writes a press release, it is also derived directly from discussions of what the core culture is. This is where observable culture begins to transform into core culture.
The final component identified by Schein is parallel with the concept of core culture: assumptions. The assumptions made by the individuals within an organization are so intimately tied to the core organizational culture that they are virtually unrecognizable. In many ways, one could equate core culture with an individual's subconscious. While our subconscious so often drives our conscious behavior, we rarely realize it. Core culture has the same relationship with observable culture: core culture is created first, and ultimately drives the visible cultural aspects of the organization.
Creating Core Culture
Organizational culture, both observable and core, is created first at the managerial level. Leaders must define not only what it is they are working towards, but also how the organization will come to define itself during the process. The core culture created by leadership sets the tone for employee behavior and assumptions in the future.
Upper management must decide which values and ethos will constitute the core of the organizational culture, and then instill this internally, in their employees, and communicate it externally, to stakeholders (via observable culture). Management is tasked with both the creation and consistent application of core culture at the organizational level.