The CPO Shift: Organisational Design, People Strategy & Leadership in UK Consumer Businesses – Mid-2025 Outlook

As we move into 2025, the role of Chief People Officers (CPOs) in the UK consumer sector is becoming more strategic, visible, and complex than ever before. In a high-cost, low-growth environment, coupled with the continued ripple effects of shifting global trade dynamics, including renewed US tariffs under the Trump administration, talent and organisational agility have emerged as the most critical competitive differentiators.

For HR leaders, this year is not about returning to “normal” but about building something more adaptive, lean, and leadership-ready. Organisational design (OD), workforce shaping, and human capital strategy are now at the forefront of business strategy and decision-making.

Key Challenges Facing CPOs and How to Overcome Them

As CPOs face heightened expectations, several key challenges are emerging within the UK consumer sector. These include:

• Talent Shortage: The competition for skilled leaders remains intense, particularly at senior levels. Securing top-tier talent is a significant challenge, and CPOs must go beyond recruitment to foster leadership pipelines that support long-term growth. This requires investing in leadership development initiatives from within the organisation.
• Leading Transformation: With many UK consumer businesses undergoing transformation—whether it’s a shift to digital-first operations, adjustments due to changing consumer demands, or broader organisational redesigns—CPOs must ensure smooth change management. Leading teams through these transitions is vital to maintaining long-term alignment with business goals.
• Investor Pressure: As private equity firms and other investors place increasing emphasis on leadership capabilities, CPOs are under pressure to demonstrate not only strong talent but also leadership agility. Investors are now looking for leadership teams equipped to handle future challenges, including succession planning and demonstrating the ability to drive transformation.

How CPOs Can Overcome These Challenges:

• Data-Driven Talent Decisions: Leveraging people analytics will allow CPOs to make informed decisions about talent gaps, leadership development, and succession planning. By analysing data on internal talent pools, they can proactively align leadership strategies with business needs.
• Align HR and Business Strategy: Ensuring that HR strategies are tightly integrated with business objectives will help CPOs build teams that are resilient, capable of managing both short-term challenges and long-term growth goals.
• Internal Leadership Development: Fostering a culture of leadership development will ensure that the company has a robust pipeline of leaders ready to step into more senior roles, thus reducing risks associated with turnover and promoting organisational continuity.

What CEOs Expect from Their CPOs in 2025

In today’s fast-paced environment, CEOs are looking to CPOs to be strategic partners who help shape and execute business strategies. Here’s what CEOs are expecting from their CPOs:

• Agility in Organisational Design (OD): With increasing pressure to grow and remain flexible, CEOs are relying on CPOs to lead organisational redesign efforts that optimise efficiency, reduce costs, and enable scalability in the face of future growth.
• Executive Succession and Leadership Pipeline: Succession planning is seen as a critical element of long-term strategy. CEOs want to ensure they have the right leaders in place who can drive growth and lead through periods of transformation.
• Talent to Drive Transformation: CEOs expect CPOs to bring in transformational leaders capable of navigating change, driving innovation, and future-proofing the business.

CPOs in 2025: A Shifting Landscape

The role of CPOs continues to evolve, with a growing focus on driving organisational transformation. Recent data shows the following trends:

• Executive-Level Integration: 44% of FTSE 250 CPOs now sit on Group Boards, up from 29% in 2022, highlighting the increasing strategic role of CPOs.
• Private Equity Interest: 39% of UK private equity deals in H1 2025 in the consumer sector included pre-deal talent due diligence (Bain & Co. PE Outlook).
• Growth in Interim CPO Roles: The demand for interim CPOs in transformation-focused roles has increased by 34% (Potentia Partners, Q2 2025), reflecting the growing importance of agile, leadership-focused HR professionals during times of transition.

How CPOs Can Differentiate Their Businesses in 2025

In a competitive landscape, CPOs must focus on the following strategies to differentiate their organisations:

• Lead from the Front: Take a proactive role in shaping organisational strategy and aligning HR with business outcomes. By being closely involved in setting and delivering on strategic goals, CPOs become invaluable partners to the CEO.
• Invest in Leadership Development: Ensuring leadership roles are filled with individuals who drive change and innovation will allow businesses to remain agile in the face of evolving market conditions. Invest in both internal leadership development and bringing in external leaders to complement the talent pool.
• Leverage Data and Analytics: CPOs can use data to identify and address leadership gaps before they become an issue. People analytics enables data-driven decision-making that aligns leadership teams with the company’s strategic goals.
• Build a Culture of Agility: CPOs must foster an adaptable workforce by ensuring teams are ready to respond to unexpected shifts. Whether by rethinking organisational design or upskilling staff, agility is key to staying ahead of competitors.

Potentia Partners: Supporting CPOs and Leadership Teams in the Consumer Sector

At Potentia Partners, we work with UK consumer businesses to optimise leadership teams and navigate organisational transformation. Our services are designed to support CPOs and their leadership teams in achieving long-term growth and business success, and include:

• Executive Search: Specialising in transformation-focused leaders and C-suite appointments.
• Succession Planning: Ensuring leadership continuity and resilience within organisations.
• Talent Mapping & Market Insights: Identifying and evaluating emerging leadership talent.
• Interim Management: Providing expert leadership during periods of transition.
• Compensation Alignment: Ensuring that leadership incentives align with long-term value creation.

By aligning talent strategies with business goals, we help you build leadership teams that will not only navigate the challenges of 2025 but also drive sustainable growth and success.