Cultural Hierarchy at Work Matters

Cultural Hierarchy at Work Matters
Leadership simulation assessment data confirms what most leaders already feel: today’s leaders operate under unprecedented pressure. As the pace of change accelerates, an organization’s ability to adapt quickly is essential to survival. Yet our change management simulation data consistently shows that most change initiatives fall short of their original goals.

Why is that?

Because lasting change doesn’t come from new business practices or org. structures alone — it comes from changing the hearts and minds of the people driving them. Change management consulting experts know that sustainable organizational change must flow through the people and the culture that define how work actually gets done. When new strategies, reorganizations, or digital transformations overlook existing cultural norms and the human side of adoption, even the most well-intentioned initiatives are likely to stumble.

Ed Schein’s Cultural Hierarchy at Work: What Leaders Must Focus On

For organizational change to take hold, change leaders must intentionally shape the three levels of culture described by Ed Schein in his seminal 1985 work, Organizational Culture and Leadership. Understanding these layers is critical to aligning people, behaviors, and strategy.

1. First Level of Cultural Hierarchy at Work: Cultural Artifacts
   In archaeology, artifacts reveal the values and practices of past civilizations. In organizations, cultural artifacts are the visible and tangible expressions of culture — workspace layouts, organizational charts, formal processes, tools, dress codes, and job titles — as well as intangible cues such as stories, rituals, and everyday behaviors.

   These artifacts signal what is valued, rewarded, and expected. They are the first things employees, customers, and partners notice and interpret about your organization.

   Reflection: Do your tangible and intangible artifacts reinforce the changes you want to see, or do they tell a different story?

2. Second Level of Cultural Hierarchy at Work: Espoused Values
   Espoused values are the principles that leaders and high performers genuinely embrace — not aspirational values, which may be idealistic or not yet reflected in behavior. Effective corporate values clarify why individuals and teams act as they do, guiding decisions, shaping organizational health, and driving performance.

   Conversely, misaligned or superficial values can breed cynicism, distrust, ambiguity, and disengagement. They are only as powerful as the extent to which they are practiced and reinforced throughout the organization.

   Reflection: Are your espoused values accelerating your change efforts, or are they inadvertently undermining them?

3. Third Level of Cultural Hierarchy at Work: Underlying Assumptions
   Underlying assumptions are the unconscious, deeply ingrained beliefs that shape how people think, feel, and act. Often invisible and rarely questioned, they have an outsized influence on decision making, team dynamics, and organizational outcomes.

   For example, a culture that prizes winning at all costs — whether it’s climbers summiting Mount Everest at others’ expense or athletes taking extreme measures to achieve victory—can have profound consequences on mental health, collaboration, and risk tolerance. These assumptions are not inherently “good” or “bad,” but they must align with the desired changes to avoid creating friction or unintended consequences.

   Reflection: Do your organization’s underlying assumptions support progress, or are they quietly sabotaging it?

The Bottom Line
Culture is unique, complex, and rarely changes in a straight line — but misalignments can quickly derail even the most carefully crafted initiatives. To ensure stakeholders advance change rather than resist it, leaders must assess the organizational culture at all levels. Your artifacts, espoused values, and underlying assumptions should act as accelerators, not obstacles, to the change you seek. Ask yourself: is your cultural hierarchy at work truly helping you reach your goals, or quietly standing in the way?

To learn more about cultural hierarchies at work, download Changing Corporate Culture: 4 Do’s and 3 Don’ts

by Tristam Brown: CEO

Tristam Brown is an executive business consultant and organizational development expert with more than three decades of experience helping organizations accelerate performance, build high-impact teams, and turn strategy into execution. As CEO of LSA Global, he works with leaders to get and stay aligned™ through research-backed strategy, culture, and talent solutions that produce measurable, business-critical results. See full bio.