How a strong purpose can drive innovation

A purpose that keeps you standing when things get tough and that becomes a driver for your innovation caught the eye of Dr. Patty Lindstrom. Through interviews at Aarhus Vand, she explores how organizational purpose and innovation are experienced and enacted across top, middle, and operational levels during a five-year period of transformational change. This is a summary of her findings. In the study empirical insights are mapped using her 3C Componential Model of Purpose and Innovation.

From Utility to Purpose-Driven Innovator

The turning point came in 2020, when Aarhus Vand as part of a new strategy adopted its purpose - “provide health through clean water to people and the planet.” This redefined the company’s role: not simply a service provider, but a steward of public health, sustainability, and urban resilience. The shift built on earlier structural reforms in 2010 where Aarhus Vand went from being a public utility to a corporate structure while remaining municipally owned. This shift provided the legal and operational flexibility needed to experiment, collaborate, and adopt a longer-term innovation horizon. An innovative culture is reflected in this quote from an employee:

Unlike private firms, Aarhus Vand does not compete for market share. Instead, innovation becomes a means of improving processes and advancing sustainability.

Purpose acts as a filter

The flagship ReWater Aarhus project—designed to be the world’s most resource-efficient wastewater treatment plant—is a powerful symbol of this ambition. But the transformation also shows up in daily operations: testing of new digital tools by water operators, small inventions among operators enabling improved leak detection. Partnerships and co-creating in the existing infrastructure called “Living Labs,” is another example of the innovative culture.

Every initiative is filtered through the lens of purpose. If a project does not align with long-term societal goals, it is reconsidered—even if it promises short-term efficiency or profit.

Clarity, Confidence, and Commitment

Aarhus Vand’s progress is in the case story explained through the 3C framework:

• Clarity: The mission is a guiding star, consistently communicated in meetings, workshops, and strategy sessions.
• Confidence: A culture of trust allows employees to take risks, collaborate across silos, and learn from mistakes.
• Commitment: Leadership demonstrates consistency, investing in long-term sustainability even when it means foregoing easier or cheaper options

Together, these principles create an environment where innovation is not an isolated program but a natural outcome of organizational purpose.

Leadership that walks the talk

A defining feature of Aarhus Vand’s transformation is the way leaders embody the mission. Executives participate in vision workshops alongside employees, modeling inclusivity and trust. Procurement decisions prioritize sustainability over cost savings, reinforcing that the purpose is more than words. One employee summarized the effect simply: 

“When you see leaders live the purpose, you know it’s safe to innovate.”

A strong purpose gives the ability to remain disciplined strategically

Perhaps the most important conclusion is that Aarhus Vand’s success offers lessons far beyond the water sector. The case demonstrates that purpose, when authentically embraced and consistently modeled, can be more than branding. It can serve as a strategic filter, guiding decisions, uniting stakeholders, and sustaining innovation even in complex, regulated environments. As one employee put it:

Dr. Patty Lindstrom states that organizations driven by long-term value creation are better able to filter out noise and remain strategic disciplined.

Three key takeaways stand out:

1. Purpose must be embedded, not declared. Aarhus Vand’s mission lives in everyday decisions and conversations, not just in glossy reports.
2. Leadership must show alignment. When leaders’ actions match their words, trust grows and innovation thrives.
3. Long-term value outweighs short-term gains. By holding to a 100-year vision, Aarhus Vand avoids being distracted by political or financial cycles.

Conclusion

Aarhus Vand’s transformation proves that even in a sector defined by regulation and infrastructure, purpose can drive meaningful innovation. The company has advanced beyond efficiency to become a model of how utilities can contribute to global goals for climate, health, and sustainability.

In doing so, Aarhus Vand shows the world that purpose is not a slogan. It is a compass—one that can guide organizations through complexity, inspire employees, and deliver lasting value to both people and the planet.

As one senior leader puts it: “If we didn’t have purpose, we would give up halfway. It’s what keeps us standing when things get tough.”