Schein’s Culture Iceberg Model helps leaders understand that organizational culture has layers—just like an iceberg. Only a small portion is visible above the surface, while the larger, more impactful elements lie hidden below.
When leaders talk about shaping organizational culture, they’re often referring to what is visible: dress codes, team rituals, slogans, or open-plan offices. But Edgar Schein, a seminal figure in organizational psychology, argued that the most powerful parts of culture are often the ones we cannot see—beneath the surface, invisible, but profoundly influential.
🔷 The Three Levels of Organizational Culture
1. Artifacts (Visible Culture) – “Above the Surface”
Artifacts are the physical and visible elements of culture. They’re easy to observe but often difficult to interpret accurately without understanding the deeper layers. These include:
- Office layout and physical design
- Dress codes and branding
- Rituals, ceremonies, and language
- Policies and practices
While these are the outward expressions of culture, they don’t explain why people behave the way they do. They’re clues—useful, but not complete.
“You can walk into an organization and see all kinds of symbols and behaviors. But unless you understand the values and assumptions underneath, you might misread the meaning.” — Edgar Schein
2. Espoused Values – “Just Below the Surface”
These are the stated principles and values that an organization claims to uphold. They are often found in:
- Mission and vision statements
- Codes of conduct or ethics
- Strategic goals and slogans
Espoused values guide decision-making and reflect what the organization says it believes. However, there is often a gap between espoused values and actual behavior—what Schein referred to as the difference between “espoused theory” and “theory-in-use.”
For example, a company might say it values “collaboration,” but if the incentive structure rewards individual achievement above all else, collaboration may be more talk than truth.
3. Basic Underlying Assumptions – “Deep Below the Surface”
At the deepest level are the unconscious, taken-for-granted beliefs, perceptions, and thoughts that truly drive behavior. These assumptions are:
- Often invisible and unquestioned
- Formed through shared learning and past successes
- Deeply embedded and resistant to change
These assumptions dictate what people believe is “how things are done around here.” They shape how members interpret actions, resolve conflicts, and prioritize work. For example:
- “Leaders must always have the answers.”
- “Mistakes should be hidden.”
- “Speed is more important than quality.”
Because these beliefs are so ingrained, they are rarely challenged—but they are the true levers of cultural change.
🧠 Implications for Leadership
Leaders who seek to influence culture must do more than tweak surface-level artifacts. Real cultural transformation requires:
- Diagnosing underlying assumptions through dialogue, observation, and cultural audits.
- Aligning espoused values with actual behaviors and reinforcing them through systems, incentives, and rituals.
- Modeling new assumptions by acting differently and rewarding those who challenge the status quo constructively.
Changing culture is not about writing better mission statements. It’s about shifting the foundational beliefs that guide behavior—even when no one’s watching.
🧭 Key Takeaways
- Culture is like an iceberg—most of its power lies below the surface.
- Artifacts are easy to see but hard to interpret.
- Espoused values must be consistent with how decisions are made in practice.
- Basic assumptions are the root of organizational behavior and require deep work to change.
- Leaders shape culture not just through words, but by aligning systems, modeling behavior, and surfacing hidden beliefs.
In a world of complex transformation, understanding Schein’s Culture Iceberg equips leaders to see below the surface—to the beliefs that drive behavior, shape outcomes, and ultimately, determine whether strategy sinks or swims.
Missed out on the over all series?
Murray Slatter
Strategy, Growth, and Transformation Consultant: Book time to meet with me here!