On the Propriety of Forecasting Accuracy as a Measure of Team Management Ability: A Preliminary Investigation

It has been suggested that a management team's forecasting ability serves as the major evaluation standard in business games. This suggestion is explored through an examination of the field's empirical research and a laboratory exploration. Little support was found for the use of the criterion as suggested. Forecasting accuracy increased over time but, for the poorer performing companies, good management was not unequivocally associated with accurate forecasts, and low forecast errors were not systematically associated with high profits.