• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
CommentaryLeadership

This Basic Skill Could Help You Become a Self-Made Millionaire

By
William Craig
William Craig
Down Arrow Button Icon
By
William Craig
William Craig
Down Arrow Button Icon
March 28, 2016, 8:30 PM ET
154556004
Photograph via Getty Images

The Leadership Insider network is an online community where the most thoughtful and influential people in business contribute answers to timely questions about careers and leadership. Today’s answer to the question: Career wise, is it better to be book smart or street smart? is written by William Craig, founder and president of WebpageFX.

The benefits of having “book smarts” versus “street smarts” have been debated for generations. Surely, many have thought, ‘one is more practical than the other’. However, human beings rarely have polarized personalities and, as such, you’ve likely never had an employee with zero common sense or zero technical training. Instead, you have employees who fall somewhere in the middle of the spectrum. But which end should you be leaning more toward when hiring? In my opinion, you should hire for street smarts and good ‘ol fashioned common sense. At the end of the day, the kind of common sense a person possesses has a lot to do with how well they’ll fit into your company culture, which has a huge impact on employee happiness and retention.

People who lean more to the street smarts side of the spectrum will likely be better at connecting with clients and coworkers, accurately assess work-related situations, and be a productive member of your team. While someone with tons of technical knowledge could no doubt be a valuable employee, he or she may not be as adept at feeling out a client’s goals or interacting with other team members. When you value employees with good common sense, it’s possible to train them in any technical area they may be lacking to encourage a more well-rounded team member. Here are a few more reasons why it can be to your advantage to value employees with street smarts:

It’s a characteristic of self-made millionaires
It’s no secret that self-made millionaires are often great at understanding other people and knowing how to leverage that understanding for their organization’s benefit. It’s important to know your own strengths and weaknesses, as well as those of the people you’re working with. If you can do this, it’s likely easier to adapt to most business situations and develop valuable partnerships and investment opportunities for your company.

See also: The Surprising Reason You’re Not Succeeding at Work

It informs our ability to take charge
While book smart people can certainly contribute innovative ideas to your team, employees who possess a lot of common sense will be more likely to put those ideas into action, faster. People who have a good deal of common sense will be better at understanding when a project can be taken to the next step, or when it needs a manager’s approval. Such reasoning abilities can do wonders to speed up a company’s daily productivity and could offer a solution for organizations that stagnate due to process roadblocks.

Surveys of more than 100 American and European consulting groups in 2011 revealed that organizational procedures, infrastructures, and policies significantly hinder company productivity. In organizations with highly complicated process structures, managers devote 40% of their time to creating reports and as much as 60% of their time to meetings. While this is something that needs to be addressed on a company-wide level, I think it’s safe to say that hiring employees with common sense smarts could help organizations put more trust in their teams’ abilities to execute tasks and overcome these roadblocks.

It helps us think on our feet
To piggyback off of my point above, it’s important to point out that a strong common sense compass can be invaluable in times of crisis and client emergencies. If a client experiences a problem and needs help with something, you’re going to want to have a quick-thinking, rational employee on the phone. A 2011 study from the journal Personnel Psychology found that entrepreneurs who learn from experience tend to have an advantage over entrepreneurs who learn through observing and reading. While both kinds of experiences are valuable, the study highlights the importance of paying attention to the skills your applicants have obtained from hands-on situations.

About the Author
By William Craig
See full bioRight Arrow Button Icon

Latest in Commentary

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Commentary

fauci
CommentaryCOVID-19 vaccines
How COVID turned America against science — and what it will take to win it back
By David Blumenthal and James A. MoroneMarch 24, 2026
7 hours ago
alex
Commentarydisruption
AI’s disruption is a choice, not a forecast
By Alex StephanyMarch 24, 2026
8 hours ago
trump
Commentarynational debt
The Treasury just declared the U.S. insolvent. The media missed it
By Steve H. Hanke and David M. WalkerMarch 23, 2026
1 day ago
kuo
CommentaryUnicorns
Alibaba.com President: The one-person unicorn is coming. AI is making it possible
By Kuo ZhangMarch 23, 2026
1 day ago
gen z
CommentaryGen Z
Gen Z is using ChatGPT to practice salary negotiations and tough conversations before they happen
By Phillip MillerMarch 22, 2026
2 days ago
world
CommentaryCapitalism
Our economy has been living in an Adam Smith world since 1776. Something different is coming
By Ravi ChaudhryMarch 22, 2026
2 days ago

Most Popular

Commentary
The Treasury just declared the U.S. insolvent. The media missed it
By Fortune EditorsMarch 23, 2026
1 day ago
Personal Finance
Current price of gold as of March 23, 2026
By Fortune EditorsMarch 23, 2026
1 day ago
Economy
It took 200 years for national debt to hit $1 trillion. Annual interest alone now exceeds that—a 'crushing legacy we must reverse,' says budget chair
By Fortune EditorsMarch 23, 2026
1 day ago
Personal Finance
Current price of oil as of March 23, 2026
By Fortune EditorsMarch 23, 2026
1 day ago
Health
Trump has TACO'd again, this time in Iran, sparking a $1.7 trillion stock market rally in minutes, even as peace talks are in question
By Fortune EditorsMarch 23, 2026
1 day ago
Economy
Larry Fink says today's economic anxiety stems from people increasingly feeling like capitalism isn't working for them
By Fortune EditorsMarch 23, 2026
24 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.