Mid-Year IT Budget Review: Course Correction Before It Is Too Late

Most IT organizations realize in October they are 20% over budget. Smart CIOs course-correct in June.

## The Mid-Year Review Framework

**Budget vs. Actual Analysis**
- Spending by category (personnel, infrastructure, SaaS, projects)
- Variance analysis (>10% off plan requires explanation)
- Forecast to year-end based on current burn rate

**Project Portfolio Health**
- On-time / on-budget / delivering value?
- Kill, pause, or accelerate decisions
- Reallocate budget from failed to successful projects

**Vendor Spending Review**
- Contracted vs. actual spend
- Usage audits (still using everything we pay for?)
- Mid-year optimization opportunities

## Common Mid-Year Scenarios

**Scenario 1: 15% Over Budget**
- Freeze hiring for non-critical roles
- Pause low-priority projects
- Accelerate vendor renegotiations
- Find 10-15% savings to close gap

**Scenario 2: 10% Under Budget**
- Accelerate strategic initiatives
- Invest in quick-win optimizations
- Do not spend just to spend, but capture opportunities

**Scenario 3: Right on Budget, Wrong Projects**
- Spending as planned but not delivering value
- Shift resources from low-ROI to high-ROI initiatives
- Better to pivot than stay on failing course

## The Reforecast Presentation

To CFO and executive team:
1. Budget status (variance and explanation)
2. Project health (wins and struggles)
3. Course corrections (what we are changing)
4. Updated forecast (new year-end projection)
5. Risks and mitigation plans

Better to deliver bad news in June with a plan than surprise in November with no options.