On graduating, Wood began training to be an actuary and worked for short spells as a supply teacher, and statistician with Tate & Lyle.
In the autumn of 1964 Wood secured a post at the National Foundation for Educational Research where he conducted the first study of a new area called item banking.
Wood returned to the UK in July 1971, and took up the position of director of research at the University of London School Examinations Department.
Later in the year Wood was appointed director of the New Zealand Council for Educational Research, but declined to take up post citing personal reasons.
Wood was made a Fellow of the British Psychological Society in 1986 and for the academic year 1987–88 he was visiting professor at the London Institute.