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5 OKR examples for Operational Cost Reduction

What are Operational 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.

OKRs are quickly gaining popularity as a goal-setting framework. But, it's not always easy to know how to write your goals, especially if it's your first time using OKRs.

We've tailored a list of OKRs examples for Operational Cost Reduction to help you. You can look at any of the templates below to get some inspiration for your own goals.

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

Building your own Operational Cost Reduction OKRs with AI

How to create great OKRs for any scenario in seconds

While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here.

You can use Tability's AI generator to create tailored OKRs based on your specific context. Tability can turn your objective description into a fully editable OKR template -- including tips to help you refine your goals.

  • 1. Go to Tability's plan editor
  • 2. Click on the "Generate goals using AI" button
  • 3. Use natural language to describe your goals

Tability will then use your prompt to generate a fully editable OKR template.

How to improve existing OKRs with AI feedback

If you already have existing goals, and you want to improve them. You can use Tability's AI feedback to help you.

  • 1. Go to Tability's plan editor
  • 2. Add your existing OKRs (you can import them from a spreadsheet)
  • 3. Click on "Generate analysis"

AI feedback for OKRs in TabilityTability's Strategy Map makes it easy to see all your org's OKRs

Tability will scan your OKRs and offer different suggestions to improve them. This can range from a small rewrite of a statement to make it clearer to a complete rewrite of the entire OKR.

You can then decide to accept the suggestions or dismiss them if you don't agree.

Using the free OKR generator to get a quick template

If you're just looking for some quick inspiration, you can also use our free OKR generator to get a template.

Unlike with Tability, you won't be able to iterate on the templates, but this is still a great way to get started.

Our Operational Cost Reduction OKRs examples

We've added many examples of Operational Cost Reduction Objectives and Key Results, but we did not stop there. Understanding the difference between OKRs and projects is important, so we also added examples of strategic initiatives that relate to the OKRs.

Hope you'll find this helpful!

1OKRs to maximize operational efficiency for cost reduction

  • ObjectiveMaximize operational efficiency for cost reduction
  • KRImplement cost-saving measures to decrease departmental spending by 10%
  • TaskDevelop and implement more efficient operational procedures
  • TaskIntroduce budget training to staff members for better resource allocation
  • TaskAnalyze current departmental expenditures and identify potential areas for reduction
  • KRReduce operational expenses by 15% through efficient resource allocation
  • TaskIdentify areas of wastage or redundancy in current resource allocation
  • TaskMonitor and regularly reassess resource allocation efficiency
  • TaskImplement strategies to optimize use of resources effectively
  • KRImprove procurement processes to save 8% on supply chain expenses
  • TaskStreamline ordering processes to eliminate unnecessary purchases
  • TaskImplement a centralized procurement strategy for better pricing and control
  • TaskEvaluate suppliers regularly, seeking more cost-efficient options
Tability

2OKRs to achieve substantial operational cost reduction

  • ObjectiveAchieve substantial operational cost reduction
  • KRImplement 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
  • KRReduce 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
  • KRReduce 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

3OKRs to achieve sustainable reduction in operational cost

  • ObjectiveAchieve sustainable reduction in operational cost
  • KRReduce supplier expenses by negotiating contracts for a 10% cost decrease
  • TaskImplement negotiation meetings with respective suppliers
  • TaskDevelop a negotiation strategy for cost reduction
  • TaskIdentify key suppliers and analyze current contract terms
  • KRImplement automation processes in at least 2 departments to increase efficiency by 15%
  • TaskResearch and procure suitable automation tools
  • TaskImplement and monitor the automation processes
  • TaskIdentify processes in two departments that can be automated
  • KRCut energy consumption by adopting sustainable practices resulting in 20% savings
  • TaskInstall energy-efficient appliances replacing outdated ones
  • TaskImplement automated controls for heating, cooling, and lighting
  • TaskConduct regular energy audits to identify wastage areas

4OKRs 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
  • TaskIdentify and eliminate redundant steps in setup
  • TaskTrain staff on efficient, standardized practices
  • TaskImplement standard procedures for mobilization processes
  • KRIncrease efficiency by 20% through reduced setup time using standard modules
  • TaskImplement standard modules across daily operations
  • TaskInvest in the training for effective use of standard modules
  • TaskContinually monitor and adjust module setup times
  • KRImplement standard modules in atleast 70% of special project setups
  • TaskIdentify special project setups for standard module implementation
  • TaskPrioritize bringing 70% of projects into compliance
  • TaskTrain project managers in standard module usage

5OKRs to increase overall company revenue

  • ObjectiveIncrease overall company revenue
  • KRReduce operational expenditures by 10% for increased profit margins
  • TaskIdentify inefficient processes and implement cost-saving improvements
  • TaskNegotiate lower prices with suppliers and service providers
  • TaskReduce unnecessary business travels and meetings
  • KRLaunch new 2 revenue streams and achieve 15% revenue contribution from them
  • TaskDevelop robust business plans for each stream
  • TaskIdentify profitable markets to establish new revenue streams
  • TaskImplement, monitor, and adjust strategies to achieve 15% revenue
  • KRBoost product sales by 20% through enhanced marketing strategies
  • TaskDevelop targeted social media advertisement campaigns
  • TaskConduct SEO optimization for product listings
  • TaskImplement email marketing with promotional content

Operational 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

Focus can only be achieve by limiting the number of competing priorities. It is crucial that you take the time to identify where you need to move the needle, and avoid adding business-as-usual activities to your 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

Having good goals is only half the effort. You'll get significant more value from your OKRs if you commit to a weekly check-in process.

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 Operational Cost Reduction OKRs

OKRs without regular progress updates are just KPIs. You'll need to update progress on your OKRs every week to get the full benefits from the 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.

More Operational Cost Reduction OKR templates

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