Edgar Schein: The 3 Things that Impact Culture

Leaders don’t define culture with words. They define it with behavior.

Edgar Schein was one of the first psychologists to study culture and define organizational culture. In his book “Organizational Culture and Leadership,” he wrote, “The most powerful mechanisms that founders, leaders, and managers have available for embedding and reinforcing culture are what they pay attention to, measure, and control.”

Schein says three things impact culture:

• Artifacts are what we see, hear, and feel. They are the visible signs of culture. They include how the space looks and feels, how people dress and communicate, how meetings run, and what’s written in handbooks, emails, or on walls. Artifacts tell you what the culture looks like, but not always why it exists.

• Values are what we say we want and believe. They explain why people believe they act the way they do and include: Stated priorities (“We value teamwork.”), beliefs about what’s important (“Results matter most.”), and the reasons people give for decisions or behavior. Values help explain behavior—but they don’t always match what actually happens.

• Assumptions are what we actually believe deep down. They answer questions like: “What gets you ahead here?” “Is it safe to speak up?” and, “What happens if I make a mistake?” Assumptions are powerful because they really drive behavior without being questioned.

Artifacts show you what’s happening. Values explain what people say they believe. Assumptions reveal what actually drives behavior. Culture is what you see, what people say matters, and what they quietly believe to be true.

But how do you change culture? Schein said you don’t change culture by starting with words. You change culture by changing what leaders consistently do—especially what they pay attention to, reward, and tolerate.

1. Change behaviors people experience (Artifacts)

Culture shifts when leaders intentionally change what people see and experience every day.

This includes:

• How meetings are run

• What gets discussed, followed up on, and prioritized

• How feedback is given

• How mistakes are handled

• Who gets recognition and why

These visible behaviors send a powerful message: “This is what matters now.”

2. Reinforce behaviors with clear language (Values)

Once behaviors change, leaders must name them.

Examples:

• “This is what accountability looks like here.”

• “That’s what teamwork sounds like.”

• “This is how we learn from mistakes.”

Now values explain real behavior, not aspirations on a wall.

3. Allow beliefs to shift over time (Assumptions)

When people repeatedly experience the same behaviors:

• They stop testing the system

• They stop asking if it’s safe

• They start acting automatically

That’s when assumptions change.

Culture has truly shifted when people behave differently even when leaders aren’t in the room, and culture moves fastest when leaders are intentional about:

• What they pay attention to: What gets discussed, questioned, and followed up on?

• What they measure and reward. What behaviors are recognized, promoted, or protected?

• What they tolerate: What behavior goes unaddressed becomes the standard.

What leaders tolerate today becomes tomorrow’s culture.