What are Expenses 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.
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 Expenses 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.
How to write your own Expenses Reduction OKRs
Option 1. Turn ideas into OKRs with Tability AI
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.
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.
Expenses Reduction OKRs examples
You will find in the next section many different Expenses 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 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 reduce delivery service expenses
- ObjectiveReduce delivery service expenses
- KRLower 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
- KRImplement 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
- KRDecrease 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
OKRs to streamline corporate general and administrative expenses
- ObjectiveStreamline corporate general and administrative expenses
- KRSlash 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
- KRIncrease 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
- KRImplement 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
OKRs to drastically decrease operational expenses
- ObjectiveDrastically decrease operational expenses
- KRDecrease 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
- KRReduce 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
- KRImplement 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
Expenses 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.
How to track your Expenses Reduction OKRs
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 Expenses Reduction OKR templates
We have more templates to help you draft your team goals and OKRs.
- OKRs to boost supporter engagement via effective communication and events
- OKRs to master decoding CVVC and two-syllable words
- OKRs to achieve consistent delivery of a high-quality application
- OKRs to enhance efficiency and productivity in development within the team
- OKRs to strengthen and streamline third-party relationships
- OKRs to implement strategies to enhance sustainable revenue growth