Tability is a cheatcode for goal-driven teams. Set perfect OKRs with AI, stay focused on the work that matters.
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.
The best tools for writing perfect Cost Reduction OKRs
Here are 2 tools that can help you draft your OKRs in no time.
Tability AI: to generate OKRs based on a prompt
Tability AI allows you to describe your goals in a prompt, and generate a fully editable OKR template in seconds.
- 1. Create a Tability account
- 2. Click on the Generate goals using AI
- 3. Describe your goals in a prompt
- 4. Get your fully editable OKR template
- 5. Publish to start tracking progress and get automated OKR dashboards
Watch the video below to see it in action 👇
Tability Feedback: to improve existing OKRs
You can use Tability's AI feedback to improve your OKRs if you already have existing goals.
- 1. Create your Tability account
- 2. Add your existing OKRs (you can import them from a spreadsheet)
- 3. Click on Generate analysis
- 4. Review the suggestions and decide to accept or dismiss them
- 5. Publish to start tracking progress and get automated OKR dashboards
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.
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!
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 maximize operational efficiency for cost reduction
- ObjectiveMaximize operational efficiency for cost reduction
- KRImplement cost-saving measures to decrease departmental spending by 10%
- Develop and implement more efficient operational procedures
- Introduce budget training to staff members for better resource allocation
- Analyze current departmental expenditures and identify potential areas for reduction
- KRReduce operational expenses by 15% through efficient resource allocation
- Identify areas of wastage or redundancy in current resource allocation
- Monitor and regularly reassess resource allocation efficiency
- Implement strategies to optimize use of resources effectively
- KRImprove procurement processes to save 8% on supply chain expenses
- Streamline ordering processes to eliminate unnecessary purchases
- Implement a centralized procurement strategy for better pricing and control
- Evaluate suppliers regularly, seeking more cost-efficient options
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
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
OKRs to increase adoption of solar energy to reduce fuel expenses
- ObjectiveIncrease adoption of solar energy to reduce fuel expenses
- KRAchieve a 15% reduction in overall fuel costs through implemented solar solutions
- Identify areas with high energy consumption for solar panel installation
- Negotiate and finalize contracts with solar solutions providers
- Monitor and maintain all installed solar systems regularly
- KRSecure a minimum of three partnerships with solar technology providers by next quarter
- Initiate contact and discuss potential collaborations
- Negotiate and finalize at least three partnerships
- Identify potential solar technology providers for partnership
- KRConvert at least 20% of existing fuel-based power sources to solar solutions
- Identify and evaluate potential sites for solar panel installation
- Implement solar power systems and monitor efficiency
- Procure necessary solar power equipment and materials
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
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
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
OKRs to increase company's total revenue to 10,000,000 dollars
- ObjectiveIncrease company's total revenue to 10,000,000 dollars
- KRRetain 90% of existing clients through improved customer service
- Implement regular customer satisfaction surveys
- Train staff in advanced customer service skills
- Develop a loyalty rewards program
- KRImplement cost reduction measures to save 15% expenditure
- Negotiate better terms with suppliers and service providers
- Identify non-essential expenses and eliminate or reduce them
- Implement energy-saving initiatives in the office
- KRBoost sales by 25% through targeted marketing campaigns
- Identify key demographic for targeted marketing efforts
- Develop personalized marketing campaign for identified demographic
- Implement and monitor campaign success, adjusting as needed
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
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.
Save hours with automated OKR dashboards
Your quarterly OKRs should be tracked weekly if you want 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 Tability to save time with automated OKR dashboards, data connectors, and actionable insights.
How to get Tability dashboards:
- 1. Create a Tability account
- 2. Use the importers to add your OKRs (works with any spreadsheet or doc)
- 3. Publish your OKR plan
That's it! Tability will instantly get access to 10+ dashboards to monitor progress, visualise trends, and identify risks early.
More Cost Reduction OKR templates
We have more templates to help you draft your team goals and OKRs.
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- OKRs to amplify flying school enrolment through active marketing approaches
- OKRs to achieve unprecedented effectiveness and success in testing methods
- OKRs to establish an efficient 30-day onboarding program for new hires
- OKRs to enhance technical proficiency and efficiency as a Cloud Architect
- OKRs to successfully complete the AI course training