Discover British Gas's leadership style under CEO Chris O'Shea. From flatter structures to ESG focus, learn how transformational leadership drives energy innovation.
When examining what leadership style does British Gas use, one discovers a fascinating transformation story that mirrors the best practices of contemporary organisational psychology. Under the stewardship of CEO Chris O'Shea since 2020, British Gas has undergone a remarkable metamorphosis, cutting 5000 jobs of which more than half were management roles, and removing three layers of management. This radical restructuring exemplifies a shift towards transformational leadership combined with a deliberate move to flatter organisational structures.
The leadership philosophy at British Gas represents something akin to Churchill's wartime leadership—decisive, uncompromising when necessary, yet fundamentally concerned with the welfare of those served. From 2019 to 2022, O'Shea forewent annual bonuses of several million pounds citing the hardships faced by consumers during COVID-19 pandemic and then the global energy crisis. This self-sacrifice echoes the British tradition of leaders who place duty above personal gain, reminiscent of the naval captains who went down with their ships.
The benefit of experiences is incredible. So having seen adversity I think is really important, notes O'Shea when reflecting on leadership preparation. His approach embodies the four pillars of transformational leadership:
The CEO's background—from a working-class family in Fife who faced business failure—has shaped his empathetic leadership style. When they ran into difficulty and lost their business we had to move to Glasgow. I was ten and nearing the end of primary school. It was only 60 miles away but it felt like a different world. This experience of adversity has translated into policies that prioritise support for vulnerable customers and employees facing uncertainty.
British Gas has embraced what organisational theorists term "delayering"—the systematic removal of management layers to create more agile decision-making processes. This transformation reflects the company's recognition that traditional hierarchical structures, whilst once serving the nationalised gas boards well, have become impediments in the rapidly evolving energy landscape.
The move towards a flatter organisational structure has yielded tangible benefits:
The British Gas teams, coached by Publicis Sapient to develop an agile delivery mind-set, continue to build on the app's success by applying the agile learnings to their broader digital transformation. This agile methodology has permeated beyond technology initiatives into the broader organisational culture.
British Gas's leadership philosophy extends far beyond traditional command-and-control structures. The company has established ambitious diversity targets, aiming to be 40% women, 16% ethnically diverse, 10% disability, 3% LGBTQ+ and 3% ex-service by the end of 2025. This commitment reflects a democratic leadership approach that values diverse perspectives in strategic decision-making.
O'Shea's personal commitment to gender equality is evident in senior appointments. Our biggest people leader in Centrica have female managing directors, female [divisional] CEOs. So our services business which has 65% of our workforce, so the best part of 13,000 people. The managing director there, Jana Siber, was an external recruit. This deliberate approach to inclusive leadership mirrors the Royal Navy's gradual but determined integration of women into all roles—recognising that diverse teams navigate complex challenges more effectively.
The true test of leadership style emerges during crisis, and British Gas's response to the energy crisis of 2021-2023 revealed the authentic nature of O'Shea's approach. When faced with record energy prices and widespread customer hardship, the company launched innovative support programmes including the 'You Pay: We Pay' initiative, launched in May 2024 and the first of its kind in the energy sector, matching 100% of energy payments made by customers who need help.
This authentic leadership style—characterised by genuine concern for stakeholder welfare rather than mere corporate rhetoric—has become a cornerstone of the British Gas approach. The decision to prioritise customer support over short-term profitability demonstrates the kind of moral leadership that builds long-term institutional resilience.
The leadership style at British Gas increasingly reflects servant leadership principles, where the primary role of leaders is to serve the needs of employees, customers, and society. We want to encourage people to seek help and to talk to someone if they're in trouble and that's why we launched the Stop the Silence campaign earlier this year, to tackle the shame that's attached to debt. This approach treats leadership as stewardship rather than dominion.
The company's approach to community engagement exemplifies this philosophy. By 2030 we want to increase volunteering to 100,000 days, 35,000 by the end of 2025, demonstrating how organisational leadership extends beyond commercial interests to encompass broader social responsibility.
British Gas's leadership style is increasingly defined by its commitment to environmental stewardship. Over 30% of the energy supplier's spending went towards green activities in 2023 – up from just 5% a few years ago, and that figure is rising. This represents a fundamental shift from shareholder primacy to stakeholder capitalism—a leadership philosophy that recognises long-term value creation requires environmental sustainability.
The company's retreat from North Sea gas exploration in favour of renewable energy investments demonstrates how servant leadership principles guide strategic decision-making. Our North Sea gas fields are naturally declining and we're not looking to invest in this area as we focus on our green investment strategy.
The energy sector's regulatory complexity requires what scholars term adaptive leadership—the ability to guide organisations through ambiguous, rapidly changing environments. O'Shea's background in highly regulated industries has proven invaluable. He has considerable knowledge of working in highly regulated industries and in complex, multi-national organisations, not only in the energy sector but also in technology-led engineering and services industries.
This adaptive capability has enabled British Gas to navigate the transition from a traditional utility model to an integrated energy services provider. The leadership team has embraced the uncertainty inherent in energy transition, viewing it as an opportunity for innovation rather than merely a compliance challenge.
More than 55 percent of all customer interactions now made through digital channels, and call volumes dropping by 4.3m, or 15%. This digital transformation reflects a leadership style that embraces technological change whilst maintaining focus on human-centred service delivery.
The company's approach to digital leadership demonstrates how traditional energy companies can reinvent themselves without losing their essential character. Like the British Museum's successful integration of digital technologies whilst preserving its scholarly mission, British Gas has modernised its operations whilst maintaining its commitment to reliable energy supply.
Modern energy leadership requires collaborative approaches that transcend traditional organisational boundaries. British Gas has embraced partnership-based leadership, recognising that the energy transition requires collective action. We currently have three hydrogen joint ventures in the UK and Ireland, exemplifying how collaborative leadership creates value through strategic alliances.
This collaborative approach extends to customer relationships, where British Gas has moved beyond traditional supplier-customer dynamics to become an energy transition partner. The company's investment in smart home technologies and energy efficiency services reflects a leadership philosophy that views customers as collaborators in the journey towards net zero.
O'Shea's leadership style emphasises learning from diverse industries and contexts. His experience across multiple sectors—from oil and gas to technology and engineering—has informed British Gas's adaptive approach. I think that having a variety of experience is important, but it can be in one function. This cross-pollination of ideas reflects the kind of intellectual curiosity that characterises effective modern leadership.
The leadership style at British Gas faces ongoing challenges in balancing competing stakeholder interests. Politicians were only concerned with short-term election cycles, rather than long-term planning, O'Shea observed, highlighting the tension between political pressures and business strategy. This requires a leadership approach that maintains long-term vision whilst responding to immediate stakeholder concerns.
The company's approach to executive compensation illustrates this challenge. You can't justify a salary of that size. It's a huge amount of money, I am incredibly fortunate, O'Shea acknowledged regarding his £4.5 million compensation. This transparency reflects an authentic leadership style that acknowledges difficult questions rather than deflecting them.
British Gas's current leadership success raises important questions about succession planning and leadership development. The company's investment in apprenticeships and diversity initiatives suggests a commitment to developing future leaders who embody the organisation's evolving values. British Gas has announced it will offer over 400 apprenticeship roles in 2025 as part of its effort to accelerate the transition to a net zero future.
The transformation of British Gas's organisational culture reflects deliberate leadership choices rather than accidental evolution. The company has moved from a traditional utility mindset—focused primarily on operational efficiency and regulatory compliance—to embrace a purpose-driven culture centred on energy transition and customer empowerment.
This cultural shift mirrors the transformation of British institutions like the BBC, which successfully evolved from a patrician broadcasting monopoly to a more diverse, responsive public service organisation. The key insight is that cultural change requires leadership behaviours that consistently model desired values rather than merely articulating them.
British Gas measures leadership effectiveness through multiple metrics that extend beyond traditional financial indicators. The company tracks progress on diversity targets, employee engagement scores, customer satisfaction ratings, and environmental impact assessments. This holistic approach to performance measurement reflects a leadership philosophy that recognises multiple forms of value creation.
In 2023 we invested over £500 million in total community contributions, demonstrating how leadership effectiveness is measured through social impact as well as commercial success. This multidimensional approach to performance evaluation encourages leaders throughout the organisation to consider broader stakeholder impacts in their decision-making.
British Gas's leadership approach demonstrates how energy companies can successfully integrate commercial objectives with social purpose. Rather than treating these as competing priorities, the company's leadership has identified synergies between profitable growth and societal benefit.
The company's approach to vulnerable customer support exemplifies this integration. By developing innovative payment matching schemes and debt support programmes, British Gas has enhanced its reputation whilst building customer loyalty and reducing bad debt provisions. This demonstrates how enlightened self-interest can align with social responsibility.
The energy sector's volatility requires leadership approaches that build organisational resilience. British Gas has developed this resilience through diversification—expanding beyond traditional gas and electricity supply into home services, smart home technology, and renewable energy solutions.
This diversification strategy reflects a leadership philosophy that embraces change rather than resisting it. Like Darwin's observation that "it is not the strongest that survives, nor the most intelligent, but the one most responsive to change," British Gas's leadership has positioned the company to thrive in an uncertain future.
The question "what leadership style does British Gas use" reveals a sophisticated blend of transformational, democratic, servant, and adaptive leadership approaches. Under Chris O'Shea's guidance, the company has moved away from traditional hierarchical structures towards a more agile, purpose-driven organisation that balances commercial success with social responsibility.
This evolution reflects broader trends in modern leadership—the recognition that sustainable success requires authentic engagement with diverse stakeholders, genuine commitment to environmental stewardship, and the courage to make difficult decisions in service of long-term value creation.
As Britain navigates the energy transition, British Gas's leadership approach offers valuable lessons for other organisations facing similar transformational challenges. The key insight is that effective leadership in complex, rapidly changing environments requires the integration of multiple leadership styles rather than adherence to any single approach.
The company's journey from a traditional utility to an integrated energy services provider demonstrates how thoughtful leadership can guide organisational transformation whilst maintaining core values and stakeholder trust. In an era of unprecedented change, this balanced approach to leadership may well prove to be the template for sustainable success in the energy sector and beyond.
What type of leadership style does Chris O'Shea employ at British Gas? O'Shea employs a transformational leadership style combined with servant leadership principles. He leads by example, having forgone millions in bonuses during customer hardship periods, whilst driving significant organisational change through flatter structures and cultural transformation.
How has British Gas's organisational structure changed under current leadership? British Gas has implemented a flatter organisational structure by removing three layers of management and cutting 5,000 positions, with over half being management roles. This "delayering" approach has accelerated decision-making and improved communication across the organisation.
What role does diversity play in British Gas's leadership approach? Diversity is central to British Gas's leadership philosophy, with specific targets to achieve 40% women, 16% ethnically diverse representation, and other diversity metrics by 2025. The company has appointed women to key leadership positions and prioritises inclusive decision-making.
How does British Gas balance commercial success with social responsibility? The company integrates commercial objectives with social purpose through initiatives like the "You Pay: We Pay" customer support scheme, substantial community investment (£500 million in 2023), and prioritising vulnerable customer support even during profitable periods.
What leadership challenges does British Gas face in the energy transition? Key challenges include balancing multiple stakeholder interests, managing the tension between short-term political pressures and long-term strategic planning, and maintaining operational excellence whilst transforming the business model for net-zero objectives.
How does British Gas develop future leaders within the organisation? The company invests in apprenticeship programmes (400+ roles planned for 2025), emphasises diversity in recruitment and promotion, and focuses on cultural transformation that encourages innovation and agile thinking throughout all organisational levels.
What makes British Gas's leadership approach unique in the energy sector? British Gas combines traditional British values of service and stewardship with modern agile methodologies, environmental leadership, and authentic stakeholder engagement. This creates a distinctive approach that balances heritage with innovation in addressing contemporary energy challenges.