3 Levels of Organizational Culture: Aligning Core Values with Actual Practice

Welcome to Founder’s Framework, offering full access to objective, informational, and researched articles on core business frameworks — aggregated into a single, organized space.

This article provides a detailed overview and expert insights on the 3 Levels of Organizational Culture approach to help you select the appropriate framework to support business growth and sustainability.

What Are the 3 Levels of Organizational Culture?

The 3 Levels of Organizational Culture framework offers a comprehensive model intended to foster a deeper understanding of complex structures in company cultures, with the theory that company culture exists on multiple levels — from the clearly visible to the deeply embedded. All levels are required to promote positive cultural change.

The framework identifies three core levels: artifacts, espoused values and beliefs, and assumptions. Over the years, scholars have expanded on the original work to include the influence of networks on culture, adding levels for cultural networks and cultural dynamics.

Who Created the 3 Levels of Organizational Culture?

Edgar Schein, a social psychologist and business theorist, is considered a pioneer in organizational development. He has significantly influenced how businesses approach culture and leadership. A former professor at MIT Sloan School of Management, Schein spent most of his career studying and analyzing organizational culture. He published his first paper, “Organizational Culture,” in American Psychologist in 1990.

The framework dissects an organization’s culture into three distinct levels: 

1. Artifacts are defined as the visible, tangible elements within an organization that are easily observed by internal and external people. Artifacts include physical buildings, office layouts, language, technology ecosystems, products, and visible traditions.
2. Espoused values and beliefs are clearly stated within the mission/vision, Core Values, and beliefs of the organization. These are often documented, for example, in a written mission statement, company policies, and corporate and executive leadership communications.
3. Underlying assumptions are deeply held beliefs that are often unspoken and taken for granted. They form the foundation of an organization's culture and guide behavior and perceptions without being overtly stated. For example, the assumption that “innovation is key to success” may drive new ideas and approaches without leaders having to remind employees of this value.

Schein’s 3 Levels of Organizational Culture offer a more nuanced understanding of culture beyond superficial artifacts and observations.

Also known as:

• Schein’s Model of Organizational Culture
• Cultural Iceberg Model

“...understanding culture at any level now requires some understanding of all of the levels. National, ethnic, occupational, organizational, and microsystem issues are all interconnected.”

Edgar Schein

Organizational Culture and Leadership, 4th edition

Key Pain Points Addressed

The 3 Levels of Organizational Culture framework was developed to address common Stage 3 organizational challenges, including:

When to Apply the 3 Levels of Organizational Culture

This framework is applied in organizations that have reached Stage 3 (Scale) of Ninety’s Stages of Development. A Stage 3 organization:

Has grown beyond the startup phase and requires more formal processes and structure

Is focused on building a positive, cohesive culture to support growth and attract talent

Has leadership that recognizes the importance of culture to drive success

Pros and Cons of the 3 Levels of Organizational Culture

As you evaluate this framework, consider the top pros and cons of adoption:

Pros

Cons

TLDR: In Summary

Schein’s 3 Levels of Organizational Culture offers a comprehensive and structured model, providing a multilevel approach to organizational culture analysis and improvement. Organizations can examine culture from the most visible artifacts and beliefs to underlying assumptions that influence and mold how people within your organization collaborate.

Particularly valuable for Stage 3 organizations, this framework supports growth-ready companies looking to align culture with strategic goals, improve communications focused on company values, manage cultural change effectively, and mitigate resistance. And while there are many pros to implementing this framework, including a more nuanced understanding of culture, leaders must also consider potential barriers. Such barriers can include constraints on time to implement the framework properly and the challenges associated with deeper exploration of cultural dynamics.

Guided Approach to 3 Levels of Organizational Culture

If you think this framework is a good fit for your organization, it’s time to start preparing for a successful implementation. The following offers a guided approach to support your efforts:

Educate leadership.

• Top-level leadership must understand the framework's potential impact on the broad organizational and individual teams.

Conduct an assessment of your existing culture.

• Take an inventory of visible artifacts (such as your office layout, technology platforms, and products) and assess the impact they have on your current culture. For example: Do individual cubicles limit team collaboration? Do you need open areas for teams to gather and innovate?
• Review stated values and beliefs (such as your mission statement, vision statement, and policies) to ensure they align with your Core Values.
• Begin to explore and document underlying assumptions via employee surveys or 1-on-1 interviews.
• Map out the various cultural networks and informal channels.
• Identify cultural dynamics and influential forces of change. 

Identify cultural gaps and inconsistencies.

• This includes misalignments between espoused values and beliefs, underlying assumptions, and actual practices.

Plan and develop a culture change strategy. 

• Set clear goals for change, including a structured timeline.
• Design interventions at multiple levels (for example, altering artifacts, reinforcing values, and addressing underlying assumptions).
• Develop a structured communication plan to accurately convey desired cultural attributes.

Roll out your implementation plan.

• Start with visible artifact changes to strongly signal the desired culture, such as installing open areas for teams to collaborate.
• Reinforce espoused values through leadership behavior and decision-making.
• Address underlying assumptions through training, coaching, and ongoing dialogue.

Monitor and course correct as needed.

• Assess cultural alignment at regular intervals. Use different types of surveys and feedback mechanisms to gather information.
• Make strategy adjustments based on observed results.

If you feel unsure of how to proceed at any point, seek external support from consultants or coaches who are experts in organizational culture. Outside parties also offer objective insights and guidance.

Next Steps

For those ready to take action, consider these actionable steps: