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tability.ioWhat are Cost Optimization 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 Optimization 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.
Cost Optimization OKRs examples
You will find in the next section many different Cost Optimization 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 enhance drayage gross margin via cost optimization
ObjectiveEnhance drayage gross margin via cost optimization
KRNegotiate and decrease supplier contracts costs by 10%
Conduct a thorough analysis and assessment of current supplier contracts- Define negotiation strategies aiming at a 10% cost reduction
- Initiate renegotiation meetings with selected suppliers
- KRImplement cost tracking to reduce unaccounted expenditures by 20%
- Develop and implement a structured cost tracking system
- Train staff on utilizing the cost tracking system effectively
- Perform regular audits to ensure the system's effectiveness
- KRReduce drayage operation costs by 15% through efficiency improvements
- Implement more efficient truck scheduling and routing systems
- Improve container packing to maximize capacity utilization
- Train staff on cost-effective operational practices
OKRs to increase cost management efficiency for people and operations
- ObjectiveIncrease cost management efficiency for people and operations
- KRImplement cost tracking system to monitor and analyze spend across departments
- Train department heads in cost tracking system usage
- Launch system and begin monitoring departmental expenses
- Select cost tracking software suitable for our business needs
- KRTrain managers on cost management best practices to mitigate overspending
- Follow-up on training effectiveness and changes
- Identify experts to guide practice implementation
- Arrange cost management training seminars for managers
- KRReduce operational costs by 10% through process optimization and automation
- Conduct a thorough assessment of current operational processes
- Implement process optimization and automation strategies
- Identify inefficiencies and areas for automation
OKRs to significantly reduce Customer Acquisition Cost (CAC) for our mobile app
- ObjectiveSignificantly reduce Customer Acquisition Cost (CAC) for our mobile app
- KRImprove app store optimizations to increase organic downloads by 20%
- Leverage user feedback for app improvement
- Review and enhance keyword strategy in app descriptions
- Optimize app icon and screenshots for better visibility
- KREnhance referral program to increase organic acquisition by 30%
- Redesign referral incentives to make them more attractive
- Implement user-friendly referral process in the app/website
- Launch marketing campaign to promote referral program
- KRImplement A/B tests on marketing channels to enhance conversion rates by 15%
- Identify key variables for A/B testing in current marketing channels
- Analyze results, identify successful variables, implement changes
- Plan and execute A/B tests in the identified marketing channels
- KRDecrease app installation cost by 25% through optimizing ad targeting
- Analyze user data to better understand our successful app installation demographics
- Monitor and adjust ad campaigns based on performance metrics
- Refine ad targeting parameters based on this analysis
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
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
OKRs to effectively meet the installation revenue targets
- ObjectiveEffectively meet the installation revenue targets
- KRImprove upselling techniques to boost revenue by 15%
- Design and implement effective incentive programs for successful upsells
- Analyze customer data to identify upselling possibilities
- Enroll sales team in advanced upselling and cross-selling training workshops
- KRDecrease installation costs by optimizing resources, aiming for a 10% reduction
- Review current resource allocation for inefficiencies
- Simplify installation processes to save time and materials
- Train staff in cost-effective installation practices
- KRIncrease the number of installations by 20%
- Enhance advertising efforts on social and digital platforms
- Optimize the app’s visibility in app stores
- Implement incentive-based promotions for app installations
OKRs to boost sales to achieve profitable standing
- ObjectiveBoost sales to achieve profitable standing
- KRDecrease operational and production costs by 15% via optimization efforts
- Review and streamline production processes to eliminate inefficiencies
- Implement energy-saving measures to reduce utility bills
- Negotiate supplier contracts for better pricing
- KRIncrease total customer base by 30% to multiply potential sales points
- Launch targeted promotional campaigns to attract new customers
- Develop and execute a comprehensive marketing strategy
- Strengthen customer retention through improved after-sales support
- KRImprove sales conversion rates by 20% through enhanced marketing strategies
- Create persuasive and engaging product descriptions
- Deploy targeted ad campaigns across different digital platforms
- Develop a captivating unique selling proposition to attract potential customers
OKRs to efficiently migrate services and databases to Google Cloud
- ObjectiveEfficiently migrate services and databases to Google Cloud
- KRAchieve minimal downtime during the migration process
- Conduct regular communication regarding the migration process with all relevant stakeholders
- Perform a thorough assessment of the existing infrastructure and identify potential issues
- Develop a detailed migration plan with clear timelines and allocated resources
- Implement redundancy measures and backup systems to minimize the impact of any disruptions
- KROptimize costs by analyzing and implementing cost-effective solutions in Google Cloud
- Identify and eliminate any unnecessary services or resources to reduce expenses
- Regularly monitor and review cost reports and adjust strategies accordingly
- Research and implement more cost-effective alternatives or optimized configurations for existing services
- Conduct a thorough analysis of current Google Cloud services and associated costs
- KREnsure seamless data migration from existing databases to Google Cloud
- Perform necessary data cleansing and transformation to ensure compatibility with Google Cloud
- Assess current database structure and data volume for smooth migration planning
- Create a detailed data migration strategy outlining steps, tools, and timelines
- Execute step-by-step migration process, verifying data integrity and minimizing downtime
- KRSuccessfully migrate all services from current platform to Google Cloud
OKRs to optimize cloud transition expenses
- ObjectiveOptimize cloud transition expenses
- KRImplement a cost-monitoring dashboard to track cloud expenses
- Train team on using the new dashboard
- Choose a suitable cost-monitoring dashboard software
- Identify key metrics to monitor for cloud expenses
- KRReduce current on-premises infrastructure costs by 20%
- Consolidate redundant hardware and systems to streamline operations
- Negotiate better pricing contracts with vendors
- Implement energy-saving measures for physical infrastructure
- KRAchieve 30% cost savings from the cloud transition
- Identify redundant applications prior to cloud migration
- Optimize cloud storage usage to reduce wastage
- Utilize automated scaling for cloud resources
OKRs to optimize delivery operations to save costs
- ObjectiveOptimize delivery operations to save costs
- KRReduce average delivery distance by 10% using route optimization
- Implement advanced route optimization software
- Prioritize orders based on geographical location
- Train drivers on efficient routing methods
- KRLower fuel consumption by 15% through efficient vehicle usage
- Implement routine vehicle maintenance checks
- Redefine routes for maximum fuel efficiency
- Train drivers in fuel-efficient driving techniques
- KRCut delivery overtime hours by 20% through better schedule management
- Provide schedule management training for delivery personnel
- Develop efficient delivery routes to cut travel time
- Implement a strict tracking system for delivery timelines
How to write your own Cost Optimization OKRs
1. Get tailored OKRs with an AI
You'll find some examples below, but it's likely that you have very specific needs that won't be covered.
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.
Watch the video below to see it in action 👇
Option 2. Optimise existing OKRs with Tability Feedback tool
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"
Tability's Strategy Map makes it easy to see all your org's OKRsTability 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.
Option 3. Use the free OKR generator
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.
Cost Optimization 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 Optimization OKRs
Quarterly OKRs should have weekly updates to get all the 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.
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 Cost Optimization OKR templates
We have more templates to help you draft your team goals and OKRs.
- OKRs to implement service management for new work stream
- OKRs to improve effectiveness and quality of assurance audits
- OKRs to cultivate a dynamic environment promoting innovation and strategic decision-making
- OKRs to transform our office into an employee's ideal workplace
- OKRs to expand market reach by establishing partnerships with five new distributors or resellers
- OKRs to boost sales by 20% in the next quarter