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tability.ioWhat 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.
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!
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 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 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 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 increase overall company revenue
- ObjectiveIncrease overall company revenue
- KRReduce operational expenditures by 10% for increased profit margins
- Identify inefficient processes and implement cost-saving improvements
- Negotiate lower prices with suppliers and service providers
- Reduce unnecessary business travels and meetings
- KRLaunch new 2 revenue streams and achieve 15% revenue contribution from them
- Develop robust business plans for each stream
- Identify profitable markets to establish new revenue streams
- Implement, monitor, and adjust strategies to achieve 15% revenue
- KRBoost product sales by 20% through enhanced marketing strategies
- Develop targeted social media advertisement campaigns
- Conduct SEO optimization for product listings
- Implement email marketing with promotional content
How to write your own Operational Cost Reduction 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.
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.
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.
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- OKRs to develop a high-quality, effective OKR training presentation
- OKRs to launch a high-quality Real Estate focused newsletter
- OKRs to achieve acknowledgment of all reported outages within SLA
- OKRs to improve the accuracy and efficiency of our tax and accounting processes
- OKRs to increase design competency and productivity for high-quality outputs