They’re the moment when you have enough actual data to know whether the original plan was realistic — and enough time remaining in the year to do something about it if it wasn’t.
Here is a framework for running a mid-year review that produces real decisions, not just updated spreadsheets.
Before the Review: Prepare the Data
Gather three sets of numbers for each project and cost category:
- Original budget: What was approved at the start of the year?
- Actuals to date: What has actually been spent through the mid-year point?
- Full-year forecast: Based on actual run rate and known future commitments, what do you expect to spend by year end?
The comparison between original budget and full-year forecast is the key number. Variance between actuals and budget at mid-year is expected — projects run at different rates. Variance between forecast and budget at year-end is what tells you whether you need to act.
The Four Quadrants
Categorise every project into one of four quadrants:
- On track: Forecast within 10% of budget, delivery on plan
- Over budget but on scope: Forecast exceeds budget, but scope is justified — requires either reallocation or budget amendment
- Under budget: Forecast below budget — may indicate slow delivery, scope reduction, or delayed hiring
- Off track: Forecast over budget AND delivery behind plan — highest priority for intervention
The Conversation for Each Quadrant
Each quadrant requires a different conversation. Over budget but on scope needs a funding decision. Under budget needs a delivery accountability conversation. Off track needs an intervention plan with a named owner and a clear decision point.
The mistake most organisations make is treating all variances as the same — requiring justification for every variance, regardless of whether it signals a real problem. The four-quadrant framework lets you focus intervention energy where it matters.
Reallocating Budget at Mid-Year
Mid-year reviews often surface opportunities for reallocation — underspend in one area that can fund a priority in another. Treat mid-year reallocation as a strategic decision, not just a financial one. Before moving budget, ask: why is there underspend? Is it because the work isn’t happening, or because it’s being done more efficiently? The answer matters.
