Markdown Editor

MBA Field Project Report Template

Field project final report: summary, situation, approach, findings with exhibits, options, NPV/IRR business case, roadmap, client sign-off

MBA・ビジネススクールフルPyramid principle (Minto 1987); NPV and IRR capital budgetingfieldprojectreport

使い方: Use it at the end of an MBA consulting or action-learning project to answer the key question agreed in the SOW. Fill the executive summary last and reconcile the baseline with the client's finance team first. The main pitfall is a chronological report that buries the recommendation.

プレビュー

Field Project Report: [Client organisation] [Project title]

Final report of an MBA action-learning or consulting field project for a real client organisation: executive summary, situation, approach, findings with exhibits, recommendations, implementation roadmap and client sign-off. It is written for the client's decision maker first and for the faculty advisor second, and it answers the key question agreed in the statement of work (mba/mba-field-project-sow). Source basis: the pyramid principle for business writing (Minto 1987), action learning (Revans 1980), standard capital budgeting (NPV, IRR, payback) and common consulting report practice, all in original words. Your school's course handbook and the client agreement take precedence on format, length and confidentiality. Replace every [bracketed] value and every row marked Example. This is a report format, not financial, legal or investment advice.

Document control

FieldValue
Document ID[FP-RPT-001]
Related SOW[FP-SOW-001, version 1.1]
Project title[Reducing the cost of online returns] (Example)
Client organisation[Northfield Outdoor Co.] (Example, fictional)
Client sponsor[Name, title]
Course or programme[Course code and name, term]
Faculty advisor[Name]
Student team[@student-1], [@student-2], [@student-3], [@student-4]
Data period analysed[Last two financial years] (Example)
Currency and unitsUSD unless stated (Example)
Version[1.0]
Status[Draft / Client review / Final / Accepted]
Last updatedYYYY-MM-DD
Classification[Confidential: client, team and faculty only]

Approvals

RoleNameDecisionDate
Student team lead (for the team)[@student-1][Submitted]YYYY-MM-DD
Faculty advisor[Name][Reviewed]YYYY-MM-DD
Client sponsor[Name][Accepted, see section 9]YYYY-MM-DD

Contents

1. Executive summary

Answer. [One or two sentences: what the client should do and what it achieves.]

Why (three supporting points, each backed by an exhibit):

  1. [Finding and exhibit reference]
  2. [Finding and exhibit reference]
  3. [Finding and exhibit reference]

Economics. [One-off cost, annual net saving, NPV, payback.]

First step. [What happens in the next 30 days, and who owns it.]

Example:

Answer. Northfield should launch three changes in the next 12 months: fit guidance on apparel and footwear product pages, free in-store returns for online orders, and grading and resale of returned camping equipment. Together they cut the direct cost of online returns by about USD 0.43m a year before running costs and USD 0.33m after them, exceeding the USD 250,000 target, for a one-off cost of USD 285,000.

Why:

  1. Apparel and footwear produce 82.8% of online returns, and size or fit is the stated reason for 52% of them (Exhibits 2 and 3).
  2. 34.9% of surveyed online customers both live within 20 minutes of a store and would choose a store return, which cuts the shipping cost of those returns from USD 8.50 to about USD 2.00 (Exhibit 4).
  3. Returned camping equipment carries the highest write-down (USD 22 per return), and most of it is resaleable after grading (Exhibit 2, warehouse observation).

Economics. Three-year NPV USD 347,700 at Northfield's 10% hurdle rate, IRR 60.1%, payback about 1.5 years (Exhibit 6).

First step. The Vice President of E-commerce approves the fit-guidance vendor selection and a four-store returns pilot by [date]; the head of e-commerce owns both.

2. Key question and scope

ItemContent
Key question (from SOW)[Copy from SOW section 3]
In scope[Summary of SOW section 4]
Out of scope[Summary]
Approved change requests[CR IDs and one-line description]

Example: Key question: which changes should Northfield make in the next 12 months to reduce the annual cost of online returns by at least USD 250,000 without reducing online conversion or customer satisfaction below current levels? In scope: online orders and returns, all four categories, product-page, routing and resale options. Out of scope: store-purchased returns, carrier contracts, software build, legal review of policy wording. Change request CR-01 added exchange options to the option long list.

3. Situation

Example: Northfield Outdoor Co. sells outdoor apparel, footwear, camping equipment and accessories through 38 stores and an e-commerce site. Online orders reached 420,000 last financial year at an average order value of USD 96, giving online revenue of about USD 40.3m. Two years ago Northfield introduced free mail returns to match larger online sellers. Return volume has since grown faster than orders, and the finance team estimates the direct cost of returns (return shipping, warehouse processing and write-downs on returned stock) at USD 1.84m a year, 4.57% of online revenue. The topic is urgent because the budget for next year is set in [month] and the leadership team has asked for options that do not undermine the free-returns promise.

Exhibit 1. Online business at a glance (Example)

MetricValueSource
Online orders420,000Order data, last FY
Average order valueUSD 96Order data
Online revenueUSD 40,320,000 (=420000*96)Computed
Online returns77,070Returns data
Return rate18.35% (=77070/420000)Computed
Direct cost of returnsUSD 1,840,629Exhibit 2
Returns cost as share of online revenue4.57% (=1840629/40320000)Computed

4. Approach

EvidenceVolumeUse
Order and return lines, two financial years (Example)420,000 orders and 77,070 returns in the last yearBaseline, category and reason analysis
Finance cost build-up (Example)Shipping, processing and write-down per return by categoryCost exhibit
Internal interviews (Example)9 (e-commerce, merchandising, warehouse, stores, finance, customer service)Process map, option ideas
Customer interviews (Example)12Reasons for returning, reactions to options
Customer survey (Example)312 responsesStore-return preference, fit-tool interest
Warehouse observation (Example)2 shiftsGrading and write-down process

Hypothesis results:

IDHypothesisResultEvidence
H-01 (Example)Most returns are apparel and footwear, driven by size and fitSupportedExhibits 2 and 3
H-02 (Example)Fit guidance can avoid a quarter of size and fit returnsPartly supported: 25% used as the base case, tested in a pilotAssumption A-02
H-03 (Example)Customers near a store would return in storeSupportedExhibit 4
H-04 (Example)Camping equipment is written off too oftenSupportedExhibit 2, observation
H-05 (Example)A mail-returns fee would cost more in conversion than it savesSupported (stated intent), option not recommendedSurvey

5. Findings

5.1 Apparel and footwear drive 83% of returns and 79% of their cost

Exhibit 2. Online returns and direct cost by category, last FY (Example)

CategoryOrdersReturn rateReturnsCost per return (USD)Returns cost (USD)Share of returnsShare of cost
Apparel168,00026%43,68021.70947,85656.7%51.5%
Footwear84,00024%20,16024.70497,95226.2%27.1%
Camping equipment105,0009%9,45034.70327,91512.3%17.8%
Accessories63,0006%3,78017.7066,9064.9%3.6%
Total420,00018.35%77,07023.881,840,629100%100%

Cost per return = return shipping USD 8.50 + warehouse processing USD 4.20 + write-down per return (apparel USD 9, footwear USD 12, camping equipment USD 22, accessories USD 5), from the finance cost build-up. Excel for a row: returns =B2*C2, cost =D2*E2; total rate =SUM(D2:D5)/SUM(B2:B5); average cost per return =F6/D6.

Apparel and footwear together account for 63,840 returns (82.8%, =63840/77070) and USD 1,445,808 of cost (78.5%, =1445808/1840629; the rounded category shares in Exhibit 2 add to 78.6%). Camping equipment has a low return rate but the highest cost per return, because returned tents and stoves are often written down without inspection.

5.2 Size or fit is the reason for about half of apparel and footwear returns

Exhibit 3. Stated reason for apparel and footwear returns, last FY (Example)

Reason codeShareReturns (rounded)
Size or fit52%33,197
Not as described17%10,853
Changed mind14%8,938
Defective8%5,107
Other9%5,746
Total100%63,840 (rows rounded)

Reason codes are chosen by customers in the returns portal, so they are noisy; customer interviews confirmed that "too small" and "runs large" complaints cluster in a small number of brands and footwear lasts. 9 of 12 interviewed customers said they had ordered two sizes to keep one ("bracketing").

5.3 About a third of online customers would return in a store

Exhibit 4. Store-return preference, customer survey (Example)

MeasureCountShare
Respondents312100%
Live within 20 minutes of a store17857.1% of respondents
Of those, would choose a store return10961.2% of those near a store
Near a store and would choose a store return10934.9% of respondents (=109/312)

The base case assumes 35% of remaining returns move to stores (assumption A-03). The survey sample came from customers who had ordered in the last six months and opened the survey email, so it may over-represent engaged customers; the pilot in section 8 tests the rate before a full launch.

5.4 Charging for mail returns is not worth the customer risk

Survey respondents who had ordered more than three times a year were the most likely to say they would shop elsewhere if mail returns carried a fee, and they generate a disproportionate share of online revenue. Because the other three options meet the target without touching the free-returns promise, the team did not recommend a fee. This finding is based on stated intent, which overstates real behaviour; it is recorded as an option for a later test.

6. Options considered

IDOptionImpact on costOne-off costCustomer riskDecision
O-01 (Example)Fit guidance on apparel and footwear pagesHighMediumLowShort-listed (R1)
O-02 (Example)Free in-store returns for online ordersHighLowLow (positive)Short-listed (R2)
O-03 (Example)Grading and resale of camping returnsMediumLowNoneShort-listed (R3)
O-04 (Example)Fee for mail returnsHighLowHighRejected (section 5.4)
O-05 (Example)Exchange instead of refund prompt (CR-01)MediumMediumLowDeferred: needs IT change in the returns portal
O-06 (Example)Better product photography for "not as described" itemsMediumHighNoneDeferred to the merchandising plan
O-07 (Example)Restrict serial returnersLowLowMediumRejected: small volume, reputational risk

Four further options (shorter returns window, returnless refunds for low-value items, carrier consolidation, outsourcing grading) were screened out at the first pass; the screening notes are in the appendix.

7. Recommendations and business case

7.1 Recommendations

IDRecommendationMechanismOwnerKPI
R1 (Example)Add fit guidance (size recommendation tool and brand-specific fit notes) to apparel and footwear pagesAvoids 25% of size or fit returns: 8,299 returns a year (=33197*0.25, rounded) at USD 22.65 average costHead of e-commerceSize or fit return rate, apparel and footwear
R2 (Example)Offer free in-store returns for online orders in all 38 stores35% of the remaining 68,771 returns (24,070) move to stores, saving USD 6.50 shipping each (=8.50-2.00); gross saving =(77070-33196.8*0.25)*0.35*6.5Head of stores with head of e-commerceShare of online returns made in store
R3 (Example)Grade returned camping equipment and resell grade A and B itemsRecovers 40% of the USD 22 write-down on 9,450 returnsHead of logisticsWrite-down per camping return

7.2 Economics

Exhibit 5. Annual savings and costs by recommendation, USD (Example)

IDGross annual saving (steady state)One-off costAnnual running costNet annual saving (steady state)
R1187,955180,00040,000147,955
R2156,45460,00025,000131,454
R383,16045,00030,00053,160
Total427,569285,00095,000332,569

Gross savings: R1 =63840*0.52*0.25*22.6474 (average cost per apparel and footwear return =(947856+497952)/63840); R2 =(77070-33196.8*0.25)*0.35*6.5 (24,069.8 store returns before rounding); R3 =9450*22*0.4. Year 1 assumes half the steady-state saving because of ramp-up; running costs are paid in full from year 1.

Exhibit 6. Three-year cash flows, NPV at 10%, IRR and payback, USD (Example)

IDYear 0Year 1Year 2Year 3NPV at 10%IRRPayback (years)
R1-180,00053,978147,955147,955102,50835.5%1.85
R2-60,00053,227131,454131,454195,790127.4%1.05
R3-45,00011,58053,16053,16049,40153.2%1.63
Total-285,000118,784332,569332,569347,70060.1%1.50

Excel: year 1 for R1 =187955*0.5-40000; NPV =NPV(10%, C2:E2)+B2 (Excel's NPV discounts the first value by one period, so the year-0 outlay is added outside); IRR =IRR(B2:E2); payback interpolates within the year in which cumulative cash turns positive, assuming even cash flow within the year. Total NPV equals the sum of the three NPVs (102,508 + 195,790 + 49,401 = 347,699, difference due to rounding).

Sensitivity. R1 carries most of the uncertainty. If fit guidance avoided no returns, R1 would be stopped after the pilot, R2 would then apply to all 77,070 returns (26,974 store returns, gross saving USD 175,334, =77070*0.35*6.5), and R2 plus R3 would deliver a net steady-state saving of USD 203,494 a year, below the USD 250,000 target. That is why R1 starts as a pilot with a stop rule (section 8). Re-run the model with your own drivers; see mba/mba-npv-irr-card for the method and finance/investment-appraisal for a fuller appraisal format.

7.3 Risks and mitigations

RiskEffectMitigation
Fit tool avoids fewer returns than 25% (Example)Lower R1 savingA/B test on two brands for 8 weeks before full roll-out; stop rule if avoidance is below 10%
Store teams resist handling online returns (Example)Low R2 adoption, poor experienceStore incentive credit for online returns; returns desk process in four pilot stores
Resale cannibalises full-price sales (Example)Lower R3 marginSell graded items through a separate outlet page with clear grading
Customer satisfaction falls (Example)Brand damagePost-return survey monthly; free mail returns remain available

8. Implementation roadmap

PhaseMonthsActionsGateOwner
Pilot (Example)1 to 4R1 vendor and A/B test, R2 four-store pilot, R3 grading standardR1 avoidance at least 10%; R2 store-return share at least 20% in pilot storesHead of e-commerce
Scale (Example)4 to 9R1 and R2 roll-out, R3 liveCustomer satisfaction stable; conversion within normal variationVP E-commerce
Embed (Example)9 to 12KPIs in monthly reporting, ownership handed to business-as-usual teamsTwelve-month review against SOW targetsVP E-commerce, finance

KPI tree. Returns cost = return volume x cost per return, minus value recovered. Track return rate by category and reason (R1), store-return share and shipping cost per return (R2), and write-down per camping return (R3), together with the guard-rail KPIs: online conversion rate and post-return satisfaction. At steady state R1 alone lowers the online return rate from 18.35% to about 16.37% (=(77070-8299)/420000), just short of the indicative 16.35% return-rate target in the SOW; R2 and R3 cut cost per return rather than volume, and the cost target in the key question (at least USD 250,000) is met.

9. Client sign-off and handover

Deliverable (from SOW)DeliveredVersionAcceptedComment
D-01 Returns baseline and diagnosisYYYY-MM-DD[1.0][Yes / With comments]
D-02 Customer insight packYYYY-MM-DD[1.0][Yes]
D-03 Option evaluation and business case (model)YYYY-MM-DD[1.1][Yes]
D-04 Final report (this document)YYYY-MM-DD[1.0][Yes]
D-05 Final presentationYYYY-MM-DDn/a[Yes]

Handover

  • Model, data dictionary and assumptions log handed to [client owner].
  • Interview notes anonymised or deleted per the SOW data-handling rules.
  • Client data deleted from team storage by YYYY-MM-DD and deletion confirmed to the sponsor.
  • Client consent obtained (or refused) for any classroom use or publication.

Sponsor statement. I confirm that the deliverables listed above were received and that this report answers the key question agreed in the statement of work. Acceptance does not commit [client] to implement the recommendations.

NameTitleSignatureDate
[Name][Title]YYYY-MM-DD

Optional client feedback for the faculty advisor (rate 1 to 5): quality of analysis [ ], usefulness of recommendations [ ], professionalism [ ], communication [ ]. Comments: [ ].

10. Team reflection (academic annex)

Write one entry per team member, or one team entry if the course asks for it. For each, answer:

PromptResponse
A specific moment that changed our approach[What happened, when, who]
What we expected and what we found[Contrast]
Which course concept helped, and where it did not fit[Concept and limit]
What I would do differently with this client[Action]
What I will carry into my next team or job[Action]

Example fragment (fictional): At the mid-point review we presented eleven options; the sponsor asked which three we would bet our own budget on, and we could not answer. We rebuilt the screening around her pilot limit and cut the list in two days. Next time I will ask for the decision maker's constraints in the kick-off, not the mid-point.

Peer evaluation, if required, goes in the course's own form (mba/mba-peer-feedback); keep learning notes in mba/mba-learning-journal.

11. Quality checklist and common mistakes

Checklist

  • The executive summary answers the key question in the first sentence.
  • Every finding headline states an insight, and every exhibit has a title, units, source and date.
  • Totals add up; percentages sum to 100% or rounding is noted; the baseline reconciles to the client's finance figure.
  • Each recommendation has owner, cost, saving, KPI and first step.
  • NPV, IRR and payback use the client's hurdle rate and show the Excel formula.
  • The roadmap dates and the Gantt chart agree.
  • Rejected options are explained.
  • Confidential data and interviewee identities are protected as agreed in the SOW.
  • The academic annex is removed from the client version.

Common mistakes

  1. Chronological report. "First we interviewed, then we analysed" buries the answer; lead with the recommendation.
  2. Label headlines. "Returns by category" says nothing; "Apparel and footwear drive 83% of returns" says what to see.
  3. Unreconciled baseline. If the client's finance team does not recognise the starting number, nothing after it is believed.
  4. Benefits without costs. Savings with no running cost or ramp-up overstate the case.
  5. Excel NPV misuse. Including the year-0 outlay inside =NPV() discounts it by a year and overstates NPV.
  6. Double counting. R2 is applied to returns remaining after R1, not to the original volume.
  7. Stated intent taken at face value. Survey answers about future behaviour need a pilot before a roll-out.
  8. No owners. A roadmap with "Northfield" as owner of every action will not move.
  9. Overreach. Recommendations outside the agreed scope (here, carrier contracts) weaken trust in the in-scope ones.
  10. Confidentiality slips. Customer names in an appendix or client data left in a shared drive after the project.

12. Appendix: data, assumptions and calculations

Assumptions log

IDAssumptionValueSourceSensitivity
A-01 (Example)Hurdle rate for pilot investments10%Client financeNPV positive for all three at 10%
A-02 (Example)Share of size or fit returns avoided by fit guidance25%Vendor references and interviews; to be testedMain risk; pilot with stop rule
A-03 (Example)Share of remaining returns made in store35%Survey, Exhibit 4 (34.9%)Pilot target 20% minimum
A-04 (Example)Shipping cost of a store return (store-to-warehouse consolidation)USD 2.00LogisticsSaving USD 6.50 per store return
A-05 (Example)Write-down recovered by grading camping returns40%Warehouse observation and outlet pricing
A-06 (Example)Year-1 saving as share of steady state50%Ramp-up planRunning costs in full from year 1
A-07 (Example)Order volume constant over three years420,000Conservative; growth would raise savings

Data sources: order lines and return lines exported by the client data lead (pseudonymised), finance cost build-up (version [date]), survey export (312 complete responses), interview notes (anonymised). Survey design notes: academic/stats-sampling-plan; for a confidence interval on the store-return share see academic/stats-confidence-intervals.

Sources and further reading

  • Minto, B. (1987). The Pyramid Principle: Logic in Writing and Thinking. Pitman. Answer-first structure and insight headlines.
  • Revans, R. W. (1980). Action Learning: New Techniques for Management. Blond and Briggs.
  • Kolb, D. A. (1984). Experiential Learning: Experience as the Source of Learning and Development. Prentice Hall.
  • Gibbs, G. (1988). Learning by Doing: A Guide to Teaching and Learning Methods. Further Education Unit. Reflective cycle for the academic annex.
  • Corporate finance textbooks for NPV, IRR and payback, further reading only: Berk and DeMarzo, Corporate Finance; Brealey, Myers and Allen, Principles of Corporate Finance.
  • Client internal sources: [dataset names, owners and extraction dates].
  • Related templates: mba/mba-field-project-sow, mba/mba-npv-irr-card, mba/mba-business-communication-card, business/executive-summary, business/business-case, finance/investment-appraisal.

Revision history

VersionDateAuthorChange
0.1YYYY-MM-DD[@student-1]Storyline and exhibit list
0.5YYYY-MM-DD[@student-3]Business case and sensitivity
0.9YYYY-MM-DD[@student-1]Draft for sponsor review
1.0YYYY-MM-DD[@student-1]Final, accepted by sponsor

Standard and licence note

Structure aligned with answer-first business report writing (the pyramid principle), action learning and experiential learning in management education, and standard capital budgeting (NPV, IRR, payback), which are general methods described here in original wording. This template is not affiliated with or endorsed by any business school or consulting firm and does not replace your school's course handbook or client agreement. Northfield Outdoor Co., the survey and all figures are fictional and were computed for this example. This template is original text written for this collection. It is not financial, legal or investment advice. Template licence: MIT.

関連テンプレート