Organizational Culture and Leadership by Edgar H. Schein (1985)
At tandi, we recognize that culture isn’t just an abstract concept—it’s the foundation of how organizations function and succeed. Edgar H. Schein’s Organizational Culture and Leadership is one of the most influential books on understanding and shaping organizational culture. Schein provides a deep, research-backed framework for analyzing what culture really is, how it forms, and how leaders can actively shape it to create healthier, more effective organizations.
In this blog post, we’ll explore the core ideas from Organizational Culture and Leadership and share practical takeaways you can implement to develop a strong, adaptive culture in your organization.
Core Ideas of the Book
Schein defines organizational culture as a powerful, invisible force that shapes behaviors, decisions, and interactions within an organization. He explains that culture isn’t just about values and mission statements—it’s deeply embedded in assumptions, norms, and shared beliefs that influence how things get done.
The book presents three levels of organizational culture and the crucial role leaders play in shaping it.
1. The Three Levels of Organizational Culture
Schein describes culture as existing at three distinct levels:
Artifacts: The visible and tangible elements of culture, such as office design, dress code, processes, and rituals. These are what outsiders can easily observe but don’t necessarily explain why an organization operates the way it does.
Espoused Values: The stated beliefs, strategies, and philosophies that an organization claims to uphold (e.g., “We value innovation” or “We are customer-centric”). However, these values don’t always reflect reality.
Underlying Assumptions: The deep, unconscious beliefs and mindsets that truly drive behavior. These assumptions are so ingrained that they are often taken for granted—until they are challenged by change or crisis.
Understanding these levels helps leaders diagnose how aligned an organization's stated values are with its actual behavior.
2. How Organizational Culture Forms and Evolves
Culture isn’t static—it’s created and reinforced through shared experiences. Schein outlines how culture forms and evolves over time:
Founders’ Influence: In the early stages, a company’s culture is shaped by its founders' beliefs and assumptions. Their ways of working and decision-making become embedded in the organization.
Learning Through Experience: As the organization grows, culture evolves based on successes, failures, and external influences. Practices that work well become reinforced norms, while unsuccessful ones are discarded.
Leadership’s Role in Reinforcement: Leaders continuously shape and maintain culture by setting priorities, rewarding certain behaviors, and modeling expected attitudes. Over time, these leadership behaviors solidify the organization’s culture.
When leaders fail to recognize how culture is evolving, misalignment occurs—leading to disengagement, inefficiency, or resistance to change.
3. The Role of Leadership in Culture Change
One of Schein’s key insights is that leaders are the primary architects of culture. Whether consciously or unconsciously, they shape culture through:
What they pay attention to and reward
How they respond to crises
Who they hire, promote, and fire
The behaviors they model
When organizations undergo change—such as a shift in strategy, a leadership transition, or a merger—leaders must actively guide cultural evolution rather than let it drift.
Practical Takeaways for Your Organization
Understanding organizational culture is essential, but actively shaping it is what drives long-term success. Here are practical steps you can take to assess, align, and evolve your culture.
1. Diagnose Your Current Organizational Culture
Before making any cultural changes, leaders must understand the existing culture at all three levels.
How to Start:
Conduct cultural assessments by observing artifacts (physical environment, processes, symbols).
Compare espoused values (stated mission, policies) with actual behaviors.
Identify underlying assumptions by talking to employees at different levels to uncover unspoken norms and beliefs.
Benefit:
Identifying cultural misalignments helps pinpoint areas that need change while preserving valuable aspects of the current culture.
2. Align Leadership Behavior with Cultural Goals
Culture is reinforced not by what leaders say, but by what they do. Leaders must model behaviors that align with the desired culture.
How to Start:
Ensure leadership behaviors reflect the organization's core values.
Be consistent in decision-making, reinforcing the culture you want to create.
Respond to crises in a way that reinforces, rather than contradicts, company values.
Benefit:
Employees will adopt behaviors that leaders consistently reward and embody, making culture change more sustainable.
3. Shape Culture Through Hiring and Onboarding
Every new hire influences culture, so recruitment and onboarding should reinforce desired cultural attributes.
How to Start:
Hire candidates who not only have the right skills but also align with the organization’s values.
Design onboarding experiences that immerse new hires in the company’s culture from day one.
Use storytelling—share real examples of how company values play out in daily work.
Benefit:
A strong hiring and onboarding process reinforces cultural alignment and accelerates integration.
4. Reinforce Culture Through Rituals and Symbols
Schein highlights how rituals, ceremonies, and company symbols reinforce culture over time.
How to Start:
Identify existing traditions and rituals that align with company values (e.g., regular recognition for collaboration, innovation awards).
Introduce new cultural symbols that reflect the evolving identity of the organization.
Encourage storytelling, where employees share meaningful experiences that illustrate core values in action.
Benefit:
Cultural rituals help employees feel a stronger sense of belonging, making cultural values more tangible.
5. Manage Cultural Evolution During Change
Cultural change is most difficult when organizations face rapid shifts, such as mergers, digital transformation, or leadership changes.
How to Start:
Identify and preserve key cultural strengths that support the transition.
Communicate the why behind cultural shifts clearly and consistently.
Involve employees in shaping how culture should evolve to support new strategic goals.
Benefit:
Proactively managing cultural evolution reduces resistance to change and accelerates adaptation.
Conclusion: The Power of Culture in Organizational Success
At tandi, we’ve seen firsthand that culture is the foundation of any successful organization. Edgar Schein’s Organizational Culture and Leadership provides a framework for understanding and shaping culture in a way that drives engagement, innovation, and long-term success.
By diagnosing your current culture, aligning leadership behavior, reinforcing values through hiring and rituals, and managing culture during change, you can create an organization where people thrive and business goals are met.
If you’re ready to take a more intentional approach to shaping culture, the insights from Organizational Culture and Leadership provide a roadmap. Stay tuned to our blog for more insights from books that inspire us, and discover how to lead culture with purpose.
If you enjoyed this summary, we encourage you to read the full book. More information about it can be found here. Find summaries about other great books in our Blog Series - A Journey of Inspiration.
