5 customisable OKR examples for Expense Reduction
What are Expense Reduction OKRs?
The OKR acronym stands for Objectives and Key Results. It's a goal-setting framework that was introduced at Intel by Andy Grove in the 70s, and it became popular after John Doerr introduced it to Google in the 90s. OKRs helps teams has a shared language to set ambitious goals and track progress towards them.
Formulating strong OKRs can be a complex endeavor, particularly for first-timers. Prioritizing outcomes over projects is crucial when developing your plans.
We've tailored a list of OKRs examples for Expense 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 Expense 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 customisable Expense Reduction OKRs examples
We've added many examples of Expense 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!
1. OKRs to optimize IT costs by reducing expenses by 20%
- Reduce IT expenses by 20%
- Analyze previous quarter expenses and identify areas for cost reduction
- Determine cost-saving opportunities
- Identify spending patterns
- Review expenses
- Implement cost reduction measures
- Educate 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
- Negotiate 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
- Implement solutions and track savings
- Identify opportunities for cost reduction
- Implement cost-saving solutions
- Track and report realized savings
- Prioritize solutions based on potential savings
2. OKRs to reduce delivery service expenses
- Reduce delivery service expenses
- Lower staff overtime costs by 15% by improving shift scheduling
- Conduct periodic reviews to identify scheduling inefficiencies or issues
- Train managers on workload distribution and staff utilization techniques
- Implement a digital shift scheduling system for efficient workforce management
- Implement an efficient parcel tracking system to reduce lost package costs by 5%
- Train staff on new system usage
- Research and adopt an advanced tracking solution
- Identify current weaknesses in existing parcel tracking system
- Decrease fuel expenditure by 10% through optimizing delivery routes
- Train drivers on fuel-efficient driving techniques
- Implement GPS-based routing software for efficient trip planning
- Regularly maintain delivery vehicles for optimal performance
3. OKRs to streamline corporate general and administrative expenses
- Streamline corporate general and administrative expenses
- Slash 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
- Increase 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
- Implement 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
4. OKRs to drastically decrease operational expenses
- Drastically decrease operational expenses
- Decrease supply chain costs by 10% through vendor negotiations and solutions
- Develop strategies for productive pricing discussions
- Implement cost-effective vendor management solutions
- Identify vital vendors for price renegotiation
- Reduce energy consumption by 15% with sustainable initiatives
- Implement company-wide training on energy-saving practices
- Regularly audit and maintain equipment for optimal efficiency
- Install energy-efficient appliances and light fixtures
- Implement effective automation tools, boosting productivity by 25%
- Monitor and adjust processes to achieve 25% productivity increase
- Implement and integrate chosen automation tools into daily operations
- Research and identify suitable automation tools for business processes
5. OKRs to boost profitability via disciplined revenue and expense management
- Boost profitability via disciplined revenue and expense management
- Increase 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
- Decrease 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
- Achieve 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
Expense Reduction OKR best practices to boost success
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
Having too many OKRs is the #1 mistake that teams make when adopting the framework. The problem with tracking too many competing goals is that it will be hard for your team to know what really matters.
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
Setting good goals can be challenging, but without regular check-ins, your team will struggle to make progress. We recommend that you track your OKRs weekly to get the full benefits from the framework.
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 turn your Expense Reduction OKRs in a strategy map
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.
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 Expense Reduction OKR templates
We have more templates to help you draft your team goals and OKRs.
OKRs to achieve 70 and above scores to graduate successfully OKRs to establish new, attractive OKR Consultancy firm for businesses OKRs to enhance IT Helpdesk Support and Data Analysis for IT Projects OKRs to elevate the quality and impact of design solutions OKRs to increase contract bookings significantly OKRs to achieve operational excellence across all business areas
OKRs resources
Here are a list of resources to help you adopt the Objectives and Key Results framework.
- To learn: What is the meaning of OKRs
- Blog posts: ODT Blog
- Success metrics: KPIs examples
What's next? Try Tability's goal-setting AI
You can create an iterate on your OKRs using Tability's unique goal-setting AI.
Watch the demo below, then hop on the platform for a free trial.