This idea matters if you want to lead, rather than be the "go-to" expert, subservient to a boss. Smart people with people skills probably get this. Smart, smart people may fundamentally not understand this and remain pigeon holed in their areas of expertise.
Inside the Twin Trade Buildings during 9/11/01, rooms full of smart (and scared) people were killed following rules. [0] Blue collar workers reacted better. I use these extreme examples to show where "it pays not to be too stuck in your head" and develop other skills often seen as the antithesis of being smart.
I offer Rick Rescorla (Morgan Stanly Security officer, World Trade Centre) as a counter-example. [1]