How a strong purpose can drive innovation
Aarhus Vand is a purpose-driven utility. Since 2020, providing health through clean water to people and the planet, has been the compass. In a case study by Dr. Patty Lindstrom, it is explored how purpose drives 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 a mix of interviews, field observations, and document analysis, Lindstrom examined how purpose and innovation took shape across senior leadership, middle management and frontline levels at Aarhus Vand during five year's of transformational change. This summary distills those findings, with empirical insights mapped to her 3C Componential Model of Purpose and Innovation (Lindstrom, 2023)
From Utility to Purpose-Driven Innovator
In 2020, Aarhus Vand adopted a bold purpose: Delivering health through clean water to people and the planet. This turning point redefined the company’s role—not merely as a service provider, but as 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. As one employee reflected:
We’re allowed to experiment, and if it doesn’t work, we try again. Purpose gives us the confidence to take risks.
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.
Everyone knows our purpose statement—it’s used constantly in meetings and documents. Acts as a filter for market and partner engagement.
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:
Governments change, funding priorities shift, but the purpose is steady. It keeps us from chasing every new trend
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:
- Purpose must be embedded, not declared. Aarhus Vand’s mission lives in everyday decisions and conversations, not just in glossy reports.
- Leadership must show alignment. When leaders’ actions match their words, trust grows and innovation thrives.
- 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 demonstrates that even in a highly regulated, infrastructure-heavy sector, authentic purpose can transform culture, strategy, and daily practice. Purpose has given the organization a compass that inspires employees, unites stakeholders, and sustains innovation over the long term.
Its story offers a blueprint for how organizations—public or private—can move beyond efficiency and contribute meaningfully to society’s most pressing challenges.
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.”