Why People Planning is the power behind business growth in 2026
For many organisations, the 2026 strategy is already written. The commercial objectives are clear, the financial forecasts are in place, and the Board has signed off on ambitious targets. But here’s the uncomfortable truth: without an aligned people plan, even the best strategies risk falling short.
It’s a familiar pattern. Leaders invest time and energy crafting bold business goals, only to treat people strategy as something that follows later. Recruitment, workforce planning, culture and engagement are seen as “supporting functions” rather than strategic enablers. The result is a dangerous disconnect: business ambition on one side, organisational capability on the other.
The hidden risk of strategic planning
Research consistently shows that up to 70% of business transformations fail. But most don’t fail because of poor strategy. They fail because organisations underestimate the people challenges that come with delivering change. Skills gaps, leadership shortages, resistance to cultural shifts and lack of engagement can derail even the most carefully considered business plans.
As we move toward 2026, the risk is amplified. The pace of technological change, evolving employee expectations and shifting labour markets mean that people issues can no longer be managed reactively. They must be anticipated and addressed head-on, with the same level of rigour that goes into financial and operational planning.
What an aligned people plan looks like
An effective people plan is not a set of HR policies tucked away in a folder. It’s a strategic blueprint that ensures the workforce is capable, motivated, and ready to deliver business priorities. At executive level, this alignment should answer five critical questions:
Skills – Do we know the capabilities we’ll need to succeed in 2026, and are we developing them now?
Leadership – Is our leadership pipeline strong enough to steer the business through change?
Culture & EVP – Does our culture and employer brand reflect where the business is heading?
Metrics – Are our people measures linked directly to business outcomes?
Capacity – Is HR equipped to deliver the change agenda, or do we need additional expertise?
When these questions are addressed proactively, the people plan becomes a growth driver, not a bottleneck.
HR at the strategy table
This is why the role of HR - and by extension, the HR Director – is evolving. The organisations that will thrive in 2026 are those where HR leaders are integral to strategy conversations, not just execution. They are the ones asking: “Do we have the right people to make this happen?” before the strategy is finalised, not once it’s already in motion.
For many executives and Board members, this shift will require a mindset change. People strategy isn’t a support function; it’s a core component of business strategy. When leaders recognise that, they unlock not only higher performance but also resilience, adaptability and long-term success.
Looking Ahead
As you prepare for 2026, take a hard look at your people plan. Does it match the ambition of your business strategy? Does it give you confidence that your organisation has the skills, leaders, and culture to deliver? Do you even have a people plan?
If the answer is anything less than a clear “yes,” to any of those questions, then now is the time to act. Because in 2026, success won’t be defined only by the strategies you set, but by the people who bring them to life.
Ambition HR is a boutique HR consultancy specialising in helping HR Directors and Executive leadership teams deliver people strategy, transformation, and culture with confidence. From getting the basics right to managing big change projects, we’ll support you with trusted advice and qualified expertise. Get in touch for an informal chat about how we may be able to help your business continue to thrive in 2026.