15 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 our OKR guide online.
How to edit and track OKRs with Tability
You'll probably want to edit the examples in this post, and Tability is the perfect tool for it.
Tability is an AI-powered platform that helps teams set better goals, monitor execution, and get help to achieve their objectives faster.
With Tability you can:
- Use AI to draft a complete set of OKRs in seconds
- Connect your OKRs and team goals to your project
- Automate reporting with integrations and built-in dashboard
Instead of having to copy the content of the OKR examples in a doc or spreadsheet, you can use Tability’s magic importer to start using any of the examples in this page.
The import process can be done in seconds, allowing you to edit OKRs directly in a platform that knows how to manage and track goals.
Step 1. Sign up for a free Tability account
Go tohttps://tability.app/signup and create your account (it's free!)
Step 2. Create a plan
Follow the steps after your onboarding to create your first plan, you should get to a page that looks like the picture below.
Step 3. Use the magic importer
Click on Use magic import to open up the Magic Import modal.
Now, go back to the OKR examples, and click on Copy on the example that you’d like to use.
Paste the content in the text import section. Don’t worry about the formatting, Tability’s AI will be able to parse it!
Now, just click on Import from text and let the magic happen.
Once your example is in the plan editor, you will be able to:
- Edit the objectives, key results, and tasks
- Click on the target 0 → 100% to set better target
- Use the tips and the AI to refine your goals
Step 4. Publish your plan
Once you’re done editing, you can publish your plan to switch to the goal-tracking mode.
From there you will have access to all the features that will help you and your team save hours with OKR reporting.
- 10+ built-in dashboards to visualise progress on your goals
- Weekly reminders, data connectors, and smart notifications
- 9 views to map OKRs to strategic projects
- Strategy map to align teams at scale
Building your own Cost Reduction OKRs with AI
While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI generator below or our more complete goal-setting system to generate your own OKRs.
Our Cost Reduction OKRs examples
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!
1. OKRs to achieve substantial operational cost reduction
ObjectiveAchieve substantial operational cost reduction
KRImplement automation in 3 high-cost operational activities to improve efficiency
Implement and monitor the automation processes- Design suitable automation strategies for each operation
- Identify 3 high-cost operations prone to automation
- KRReduce operational expenses by 15% through process optimization and waste reduction
- Identify and eliminate inefficient operational processes
- Train staff on optimized workflow processes
- Implement waste reduction measures across all departments
- KRReduce third-party vendor costs by renegotiating contracts and exploring alternative suppliers
- Research and evaluate alternative suppliers
- Develop and implement cost-effective contracts with new vendors
- Initiate negotiations for current vendor contracts
2. OKRs to achieve sustainable reduction in operational cost
- ObjectiveAchieve sustainable reduction in operational cost
- KRReduce supplier expenses by negotiating contracts for a 10% cost decrease
- Implement negotiation meetings with respective suppliers
- Develop a negotiation strategy for cost reduction
- Identify key suppliers and analyze current contract terms
- KRImplement automation processes in at least 2 departments to increase efficiency by 15%
- Research and procure suitable automation tools
- Implement and monitor the automation processes
- Identify processes in two departments that can be automated
- KRCut energy consumption by adopting sustainable practices resulting in 20% savings
- Install energy-efficient appliances replacing outdated ones
- Implement automated controls for heating, cooling, and lighting
- Conduct regular energy audits to identify wastage areas
3. OKRs to achieve significant cost reduction in metal fabrication
- ObjectiveAchieve significant cost reduction in metal fabrication
- KRIdentify and implement at least 3 cost-effective fabrication methods by the end of the quarter
- Research potential cost-effective fabrication methods
- Implement and monitor the selected methods
- Select three most viable methods for implementation
- KRNegotiate supply contracts for raw materials to lower purchase costs by 15%
- Prepare detailed negotiation strategy with cost reduction targets
- Research suppliers for competitive pricing on required raw materials
- Initiate contract negotiations with selected suppliers
- KRReduce waste material in fabrication by 20% to save costs
- Review and optimize fabrication processes to minimize waste
- Invest in waste-reducing technology or equipment
- Implement training on material efficiency for fabrication staff
4. OKRs to achieve significant reduction in operations cost
- ObjectiveAchieve significant reduction in operations cost
- KRDecrease monthly overhead expenses by at least 10%
- Identify and eliminate unnecessary services or subscriptions
- Negotiate lower costs with vendors or suppliers
- Implement energy-efficient practices in office operations
- KRProcure 20% of materials from lower-cost suppliers without compromising quality
- Transition 20% of orders to selected suppliers
- Conduct sample tests to ensure material quality
- Identify potential lower-cost suppliers with high-quality materials
- KRImplement automation in 3 operations processes to save labor cost
- Identify 3 operations processes suitable for automation
- Research and select suitable automation software
- Train staff on new automation tools
5. OKRs to reduce mobilization cost for special project set ups
- ObjectiveReduce mobilization cost for special project set ups
- KRAchieve a 15% reduction in overall setup mobilization cost through standardization
- Identify and eliminate redundant steps in setup
- Train staff on efficient, standardized practices
- Implement standard procedures for mobilization processes
- KRIncrease efficiency by 20% through reduced setup time using standard modules
- Implement standard modules across daily operations
- Invest in the training for effective use of standard modules
- Continually monitor and adjust module setup times
- KRImplement standard modules in atleast 70% of special project setups
- Identify special project setups for standard module implementation
- Prioritize bringing 70% of projects into compliance
- Train project managers in standard module usage
6. OKRs to optimize IT costs by reducing expenses by 20%
- ObjectiveReduce IT expenses by 20%
- KRAnalyze previous quarter expenses and identify areas for cost reduction
- Determine cost-saving opportunities
- Identify spending patterns
- Review expenses
- Implement cost reduction measures
- KREducate employees on cost-saving practices and enforce IT policies
- Regularly remind staff of cost-cutting policies
- Contain training sessions for IT policy adoption
- Monitor employee compliance with IT policies and address non-compliance
- Hold information sessions about cost-saving practices
- KRNegotiate with vendors for better pricing
- Research vendor's competitors and their rates
- Highlight your previous purchasing history with them
- Offer to sign a long-term contract for a discount
- Ask for a volume discount based on the forecasted quantity
- KRImplement solutions and track savings
- Identify opportunities for cost reduction
- Implement cost-saving solutions
- Track and report realized savings
- Prioritize solutions based on potential savings
7. OKRs to optimize CPA by reducing it by 15%
- ObjectiveDecrease CPA by 15%
- KRIdentify and pause underperforming campaigns
- Pause or adjust campaigns that consistently underperform benchmarks
- Review campaign performance metrics
- Determine performance benchmarks for each campaign
- Compare benchmarks to current campaign performance
- KROptimize landing pages for higher conversion rates
- Increase page load speed by optimizing images and minimizing text
- Simplify form fields and reduce the number of required inputs
- Conduct A/B testing to determine optimal page layout
- Create clear call-to-action button with contrasting color and placement
- KRPerform a comprehensive audit of current campaigns
- Review campaign goals and success metrics
- Evaluate ad copy and creative effectiveness
- Analyze audience targeting and segmentation
- Assess budget allocation and ROI
- KRIncrease bids on top-performing campaigns
- Monitor campaign performance to evaluate the effectiveness of bid increases
- Identify top-performing campaigns
- Implement bid increases on identified campaigns
- Analyze performance data to determine bid increase percentage
8. OKRs to lower unvalued inventory by 10%
- ObjectiveLower unvalued inventory by 10%
- KRImplement disposal or revaluation strategy for 50% of identified items
- Evaluate current market value for selected items
- Identify potential buyers or recyclers for 50% of identified items
- Initiate negotiations or disposal process
- KRIdentify top 20% of unvalued items within two weeks
- Rank items based on set criteria
- Establish criteria for determining item value
- Assess inventory for potential unvalued items
- KRAchieve 5% reduction in unvalued inventory every month
- Increase sales promotions to eliminate unvalued inventory
- Conduct regular audits to identify obsolete inventory
- Implement a better management system for stock levels
9. OKRs to boost profitability via disciplined revenue and expense management
- ObjectiveBoost profitability via disciplined revenue and expense management
- KRIncrease quarterly revenue by 10% through strategic sales initiatives
- Develop and implement a comprehensive sales training program
- Optimize pricing strategy for improved profitability
- Identify and target high-revenue potential clients
- KRDecrease operating costs by 15% via efficiency improvements
- Streamline supply chain to reduce excess waste
- Identify non-essential operations that can be terminated or outsourced
- Implement energy efficient technology in the office
- KRAchieve a consistent 20% profit margin throughout the upcoming quarter
- Upsell and cross-sell to increase profits
- Analyze previous quarters to identify profitable strategies
- Streamline business operations to reduce expenses
10. OKRs to negotiate better pricing with vendors early in the project
- ObjectiveNegotiate better pricing with vendors early in the project
- KRFinalize early-project contracts with all vendors securing reduced rates by week 8
- Negotiate contracts and reduced rates with each vendor
- Finalize and secure all vendor contracts by week 8
- Identify all vendors necessary for early-project completion
- KRBuild relationships with 5 key vendors by the end of the week 3
- Identify and shortlist 5 key vendors relevant to our business needs
- Initiate contact and arrange meetings with the selected vendors
- Follow up post meetings to solidify relationships and discuss potential collaborations
- KRAchieve at least a 10% reduction in pricing from each vendor by week 6
- Analyze current expenditure with each vendor
- Obtain written commitment to new prices
- Initiate negotiation talks for discount rates
11. OKRs to increase revenue stream for the newspaper's Editorial department
- ObjectiveIncrease revenue stream for the newspaper's Editorial department
- KRIncrease ad revenue by 20% through strategic placement and premium ad operations
- Optimize premium ad operations for improved visibility
- Implement A/B testing to maximize ad performance
- Identify top-performing channels for strategic ad placement
- KRReduce department's operational overhead by 10% without compromising editorial quality
- Utilize automation tools to streamline routine tasks
- Implement efficient workflow to reduce time and resource wastage
- Review and renegotiate vendor contracts for cost-effectiveness
- KRAchieve a 15% increase in digital subscription sales by implementing targeted marketing strategies
- Optimize website for conversion rate
- Implement social media targeted ads
- Develop personalized email marketing campaigns
12. OKRs to streamline corporate general and administrative expenses
- ObjectiveStreamline corporate general and administrative expenses
- KRSlash administrative costs by 15% through process improvements
- Implement automation technology for routine tasks
- Conduct training on new streamlined processes
- Identify inefficiencies in current administrative processes
- KRIncrease revenue to cost ratio by 20% via strategic resource allocation
- Continually monitor and adjust resource allocation
- Redistribute resources to maximize efficiency
- Identify profitable and underutilized resources
- KRImplement cost control mechanisms reducing overspending by 10%
- Identify areas of excessive spending within current budget
- Develop and implement cost control policies
- Monitor and record savings from implemented policies
13. OKRs to reduce overall IT expenditure per employee
- ObjectiveReduce overall IT expenditure per employee
- KRDecrease hardware renewal cost by 20%
- Identify and eliminate unnecessary hardware assets
- Implement preventative maintenance strategies on existing hardware
- Negotiate better contracts with hardware vendors
- KRImplement software use audits to identify 15% cost-saving opportunities
- Identify key software used in organization operations
- Analyze audit findings to identify cost-saving opportunities
- Develop and implement a software auditing process
- KRAchieve a 10% reduction in IT service contractor expenses
- Explore cheaper alternatives or in-house solutions for IT services
- Evaluate current IT service contracts for potential cost-saving opportunities
- Negotify renegotiations or cancellations of costly contracts
14. OKRs to increase annual revenue to $30 million
- ObjectiveIncrease annual revenue to $30 million
- KRImprove operating efficiency by reducing overhead costs by 10%
- Negotiate with vendors and suppliers to secure better pricing and/or discounts on necessary materials and services
- Implement technology solutions or automation tools to streamline operations and reduce manual effort
- Conduct a thorough review of all overhead expenses and identify areas for cost reduction
- Streamline processes and eliminate any unnecessary steps or redundancies in operations
- KRIncrease sales volume by 15% compared to the previous quarter
- Train sales team on effective sales techniques and provide ongoing support and motivation
- Identify target market and create targeted marketing campaign to attract new customers
- Implement a customer loyalty program to encourage repeat purchases and increase customer retention
- Collaborate with suppliers to negotiate bulk discounts and lower costs to maximize profit margins
- KRExpand trading operations to three new markets
- Conduct market research to identify potential markets for expansion
- Establish partnerships or collaborations with local partners in the target markets
- Develop a strategic plan for entering new markets, including budgeting and resource allocation
- Implement marketing and advertising campaigns to raise awareness and attract customers in new markets
- KRAchieve a customer retention rate of 90% or higher
15. OKRs to maximize revenue from current business operations
- ObjectiveMaximize revenue from current business operations
- KRUpsell or cross-sell products or services to 20% of current customers
- Train sales team in upselling and cross-selling techniques
- Design and deploy targeted marketing campaigns
- Analyze purchasing trends of current customers for upsell opportunities
- KREnhance customer retention rates by 15% to boost recurring revenue
- Improve customer service response times and efficiency
- Regularly solicit and act upon customer feedback
- Implement loyalty programs to reward frequent purchases
- KRIncrease profit margins by 10% through cost reduction strategies
- Negotiate with vendors for more favorable supply deals
- Identify areas for potential cost savings in operations
- Implement energy-saving policies to reduce utility costs
Cost Reduction OKR best practices
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.
Tip #2: Commit to weekly OKR 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.
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 above). 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.
How 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.
Tability's Strategy Map makes it easy to see all your org's OKRsIf 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.
More Cost Reduction OKR templates
We have more templates to help you draft your team goals and OKRs.
- OKRs to successfully decommission the Data Weir
- OKRs to enhance capital management for optimal value creation
- OKRs to strengthen market positioning in Spain
- OKRs to implement efficient test automation processes
- OKRs to boost sustainable growth and profitability of the business
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