Management decisions in the forest products industry: Where good companies go astray

An efficient leadership with effective management decisions are necessary to meet the competitive contingencies of the wood market, resulting in better performance, growth, and profitability. A managerial decision is based on a correct understanding and consequences of effects of bias and entrenched organizational systems. The wood industry's zeal for pursuing customers can also lead to negative consequences when leaders focus more on sales volume instead of margins and profitability. Decision-making by managers should also not consider escalation of commitment when the deal is not profitable, and weigh the rationality behind the decision. Managers also need to share key information within an organization for successful decisions. It is also required that the possible effects of decision bias be promoted and the management team to recognize the biases that may impact the decisions.