Can You Measure Good Judgment?

You’ve no doubt watched someone do something stupid and wondered about their common sense. Like resigning a good job in a fit of anger before landing a new one. Like blowing a wad of money on a whimsical purchase to impress someone they hardly know. Like dashing across an 8-lane freeway at night with speeding traffic in all directions.

Among the reasons CEOs cite for their bad judgment, the most common is that they have misjudged the judgment of others.

We have a plethora of skills tests, in...