11 OKR examples for Cost Reduction

What are Cost Reduction OKRs?

The Objective and Key Results (OKR) framework is a simple goal-setting methodology that was introduced at Intel by Andy Grove in the 70s. It became popular after John Doerr introduced it to Google in the 90s, and it's now used by teams of all sizes to set and track ambitious goals at scale.

Writing good OKRs can be hard, especially if it's your first time doing it. You'll need to center the focus of your plans around outcomes instead of projects.

We have curated a selection of OKR examples specifically for Cost Reduction to assist you. Feel free to explore the templates below for inspiration in setting your own goals.

If you want to learn more about the framework, you can read more about the OKR meaning online.

Best practices for managing your Cost Reduction OKRs

Generally speaking, your objectives should be ambitious yet achievable, and your key results should be measurable and time-bound (using the SMART framework can be helpful). It is also recommended to list strategic initiatives under your key results, as it'll help you avoid the common mistake of listing projects in your KRs.

Here are a couple of best practices extracted from our OKR implementation guide 👇

Tip #1: Limit the number of key results

The #1 role of OKRs is to help you and your team focus on what really matters. Business-as-usual activities will still be happening, but you do not need to track your entire roadmap in the OKRs.

We recommend having 3-4 objectives, and 3-4 key results per objective. A platform like Tability can run audits on your data to help you identify the plans that have too many goals.

Tability Insights DashboardTability's audit dashboard will highlight opportunities to improve OKRs

Tip #2: Commit to the weekly check-ins

Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to get the full value of your OKRs and make your strategy agile – otherwise this is nothing more than a reporting exercise.

Being able to see trends for your key results will also keep yourself honest.

Tability Insights DashboardTability's check-ins will save you hours and increase transparency

Tip #3: No more than 2 yellow statuses in a row

Yes, this is another tip for goal-tracking instead of goal-setting (but you'll get plenty of OKR examples below). But, once you have your goals defined, it will be your ability to keep the right sense of urgency that will make the difference.

As a rule of thumb, it's best to avoid having more than 2 yellow/at risk statuses in a row.

Make a call on the 3rd update. You should be either back on track, or off track. This sounds harsh but it's the best way to signal risks early enough to fix things.

Building your own Cost Reduction OKRs with AI

While we have some examples below, it's likely that you'll have specific scenarios that aren't covered here. There are 2 options available to you.

Best way to track your Cost Reduction OKRs

Your quarterly OKRs should be tracked weekly in order to get all the benefits of the OKRs framework. Reviewing progress periodically has several advantages:

  • It brings the goals back to the top of the mind
  • It will highlight poorly set OKRs
  • It will surface execution risks
  • It improves transparency and accountability

Spreadsheets are enough to get started. Then, once you need to scale you can use a proper OKR platform to make things easier.

A strategy map in TabilityTability's Strategy Map makes it easy to see all your org's OKRs

If you're not yet set on a tool, you can check out the 5 best OKR tracking templates guide to find the best way to monitor progress during the quarter.

Cost Reduction OKRs templates

We've covered most of the things that you need to know about setting good OKRs and tracking them effectively. It's now time to give you a series of templates that you can use for inspiration!

You will find in the next section many different Cost Reduction Objectives and Key Results. We've included strategic initiatives in our templates to give you a better idea of the different between the key results (how we measure progress), and the initiatives (what we do to achieve the results).

Hope you'll find this helpful!

OKRs to achieve substantial operational cost reduction

  • ObjectiveAchieve substantial operational cost reduction
  • Key ResultImplement automation in 3 high-cost operational activities to improve efficiency
  • TaskImplement and monitor the automation processes
  • TaskDesign suitable automation strategies for each operation
  • TaskIdentify 3 high-cost operations prone to automation
  • Key ResultReduce operational expenses by 15% through process optimization and waste reduction
  • TaskIdentify and eliminate inefficient operational processes
  • TaskTrain staff on optimized workflow processes
  • TaskImplement waste reduction measures across all departments
  • Key ResultReduce third-party vendor costs by renegotiating contracts and exploring alternative suppliers
  • TaskResearch and evaluate alternative suppliers
  • TaskDevelop and implement cost-effective contracts with new vendors
  • TaskInitiate negotiations for current vendor contracts

OKRs to achieve significant reduction in operations cost

  • ObjectiveAchieve significant reduction in operations cost
  • Key ResultDecrease monthly overhead expenses by at least 10%
  • TaskIdentify and eliminate unnecessary services or subscriptions
  • TaskNegotiate lower costs with vendors or suppliers
  • TaskImplement energy-efficient practices in office operations
  • Key ResultProcure 20% of materials from lower-cost suppliers without compromising quality
  • TaskTransition 20% of orders to selected suppliers
  • TaskConduct sample tests to ensure material quality
  • TaskIdentify potential lower-cost suppliers with high-quality materials
  • Key ResultImplement automation in 3 operations processes to save labor cost
  • TaskIdentify 3 operations processes suitable for automation
  • TaskResearch and select suitable automation software
  • TaskTrain staff on new automation tools

OKRs to optimize IT costs by reducing expenses by 20%

  • ObjectiveReduce IT expenses by 20%
  • Key ResultAnalyze previous quarter expenses and identify areas for cost reduction
  • TaskDetermine cost-saving opportunities
  • TaskIdentify spending patterns
  • TaskReview expenses
  • TaskImplement cost reduction measures
  • Key ResultEducate employees on cost-saving practices and enforce IT policies
  • TaskRegularly remind staff of cost-cutting policies
  • TaskContain training sessions for IT policy adoption
  • TaskMonitor employee compliance with IT policies and address non-compliance
  • TaskHold information sessions about cost-saving practices
  • Key ResultNegotiate with vendors for better pricing
  • TaskResearch vendor's competitors and their rates
  • TaskHighlight your previous purchasing history with them
  • TaskOffer to sign a long-term contract for a discount
  • TaskAsk for a volume discount based on the forecasted quantity
  • Key ResultImplement solutions and track savings
  • TaskIdentify opportunities for cost reduction
  • TaskImplement cost-saving solutions
  • TaskTrack and report realized savings
  • TaskPrioritize solutions based on potential savings

OKRs to optimize CPA by reducing it by 15%

  • ObjectiveDecrease CPA by 15%
  • Key ResultIdentify and pause underperforming campaigns
  • TaskPause or adjust campaigns that consistently underperform benchmarks
  • TaskReview campaign performance metrics
  • TaskDetermine performance benchmarks for each campaign
  • TaskCompare benchmarks to current campaign performance
  • Key ResultOptimize landing pages for higher conversion rates
  • TaskIncrease page load speed by optimizing images and minimizing text
  • TaskSimplify form fields and reduce the number of required inputs
  • TaskConduct A/B testing to determine optimal page layout
  • TaskCreate clear call-to-action button with contrasting color and placement
  • Key ResultPerform a comprehensive audit of current campaigns
  • TaskReview campaign goals and success metrics
  • TaskEvaluate ad copy and creative effectiveness
  • TaskAnalyze audience targeting and segmentation
  • TaskAssess budget allocation and ROI
  • Key ResultIncrease bids on top-performing campaigns
  • TaskMonitor campaign performance to evaluate the effectiveness of bid increases
  • TaskIdentify top-performing campaigns
  • TaskImplement bid increases on identified campaigns
  • TaskAnalyze performance data to determine bid increase percentage

OKRs to increase revenue stream for the newspaper's Editorial department

  • ObjectiveIncrease revenue stream for the newspaper's Editorial department
  • Key ResultIncrease ad revenue by 20% through strategic placement and premium ad operations
  • TaskOptimize premium ad operations for improved visibility
  • TaskImplement A/B testing to maximize ad performance
  • TaskIdentify top-performing channels for strategic ad placement
  • Key ResultReduce department's operational overhead by 10% without compromising editorial quality
  • TaskUtilize automation tools to streamline routine tasks
  • TaskImplement efficient workflow to reduce time and resource wastage
  • TaskReview and renegotiate vendor contracts for cost-effectiveness
  • Key ResultAchieve a 15% increase in digital subscription sales by implementing targeted marketing strategies
  • TaskOptimize website for conversion rate
  • TaskImplement social media targeted ads
  • TaskDevelop personalized email marketing campaigns

OKRs to reduce overall IT expenditure per employee

  • ObjectiveReduce overall IT expenditure per employee
  • Key ResultDecrease hardware renewal cost by 20%
  • TaskIdentify and eliminate unnecessary hardware assets
  • TaskImplement preventative maintenance strategies on existing hardware
  • TaskNegotiate better contracts with hardware vendors
  • Key ResultImplement software use audits to identify 15% cost-saving opportunities
  • TaskIdentify key software used in organization operations
  • TaskAnalyze audit findings to identify cost-saving opportunities
  • TaskDevelop and implement a software auditing process
  • Key ResultAchieve a 10% reduction in IT service contractor expenses
  • TaskExplore cheaper alternatives or in-house solutions for IT services
  • TaskEvaluate current IT service contracts for potential cost-saving opportunities
  • TaskNegotify renegotiations or cancellations of costly contracts

OKRs to increase annual revenue to $30 million

  • ObjectiveIncrease annual revenue to $30 million
  • Key ResultImprove operating efficiency by reducing overhead costs by 10%
  • TaskNegotiate with vendors and suppliers to secure better pricing and/or discounts on necessary materials and services
  • TaskImplement technology solutions or automation tools to streamline operations and reduce manual effort
  • TaskConduct a thorough review of all overhead expenses and identify areas for cost reduction
  • TaskStreamline processes and eliminate any unnecessary steps or redundancies in operations
  • Key ResultIncrease sales volume by 15% compared to the previous quarter
  • TaskTrain sales team on effective sales techniques and provide ongoing support and motivation
  • TaskIdentify target market and create targeted marketing campaign to attract new customers
  • TaskImplement a customer loyalty program to encourage repeat purchases and increase customer retention
  • TaskCollaborate with suppliers to negotiate bulk discounts and lower costs to maximize profit margins
  • Key ResultExpand trading operations to three new markets
  • TaskConduct market research to identify potential markets for expansion
  • TaskEstablish partnerships or collaborations with local partners in the target markets
  • TaskDevelop a strategic plan for entering new markets, including budgeting and resource allocation
  • TaskImplement marketing and advertising campaigns to raise awareness and attract customers in new markets
  • Key ResultAchieve a customer retention rate of 90% or higher

OKRs to increase company-wide revenue

  • ObjectiveIncrease company-wide revenue
  • Key ResultElevate product revenue by 15% via new customer acquisition initiatives
  • TaskImplement robust promotional outreach specifically targeting potential customers
  • TaskFine-tune product features based on market research data
  • TaskDevelop and launch new customer focused marketing strategies
  • Key ResultEnhance service revenue by 12% through cross-selling and up-selling activities
  • TaskImplement incentives encouraging team's cross-selling activities
  • TaskTrain staff in effective up-selling and cross-selling tactics
  • TaskDevelop new bundled product and service offers
  • Key ResultBoost gross margin by 10% through systematic cost reduction strategies
  • TaskStreamline product development to reduce associated costs
  • TaskNegotiate better terms with suppliers to decrease material costs
  • TaskImplement more efficient operational processes to reduce wasted resources

OKRs to boost the company's overall revenue

  • ObjectiveBoost the company's overall revenue
  • Key ResultIncrease product sales by 15%
  • TaskEnhance product visibility on online platforms
  • TaskDevelop and implement targeted marketing strategies
  • TaskImprove customer engagement and feedback process
  • Key ResultDecrease operational costs by 10%
  • TaskImplement energy efficiency measures across all departments
  • TaskNegotiate better terms with suppliers and vendors
  • TaskTrim down unnecessary staff overtime
  • Key ResultLaunch 2 new profitable products
  • TaskFinalize and launch the new products
  • TaskDevelop marketing strategy for new products
  • TaskIdentify and research potential profitable products

OKRs to boost the overall sales in the upcoming quarter

  • ObjectiveBoost the overall sales in the upcoming quarter
  • Key ResultGrow the customer base by 20% resulting in increased purchases
  • TaskImprove product offerings to stimulate higher demand
  • TaskLaunch targeted marketing campaigns to attract new customers
  • TaskImplement a referral program to incentivize existing customers
  • Key ResultReduce operational costs by 15% to increase net income
  • TaskReview and analyze current operational expenses
  • TaskImplement cost-reduction strategies across operations
  • TaskIdentify cost-saving opportunities in processes
  • Key ResultImplement a new upselling strategy to enhance average transaction value by 10%
  • TaskMonitor and track sales data to assess strategy effectiveness
  • TaskTrain sales team to effectively execute the new upselling strategy
  • TaskDevelop a new upselling strategy targeting high-value products or services

OKRs to streamline financial processes for enhanced profit growth

  • ObjectiveStreamline financial processes for enhanced profit growth
  • Key ResultIncrease net profit margin by 10% through operational efficiencies
  • TaskIncrease pricing strategy efficiency to boost profit
  • TaskStreamline supply chain to reduce operational expenses
  • TaskImplement cost-saving measures in production processes
  • Key ResultImprove financial forecasting accuracy by 15% through use of advanced analytics
  • TaskTrain staff on accurate use of analytics tools
  • TaskContinually assess and refine forecasting model accuracy
  • TaskImplement advanced analytics software for financial forecasting
  • Key ResultImplement two new innovative cost-reduction strategies by the end of the quarter
  • TaskDevelop a detailed plan for implementation
  • TaskResearch and identify potential cost-reduction strategies
  • TaskExecute and monitor the new strategies

More Cost Reduction OKR templates

We have more templates to help you draft your team goals and OKRs.

OKRs resources

Here are a list of resources to help you adopt the Objectives and Key Results framework.