There are three (3) kinds of points to be earned and the right combination of all three is necessary to win a seat at the boardroom table.
MP or mastery points - Mastery points are the result of your classwork and affected by your grades. Students can track MP in Student Self Serve.
CP or character points - Awarded for community service participation or acts of character (e.g., helping another employee succeed)
TP or tutorial points - Attending after school tutoring sessions held by any teacher
As you can see, you can level up in in more ways that being smart! It's possible for a person who works hard or participates in community service to be at a higher level than someone who has more MPs.
Check out the Leveling Up page to see how you gain points and move ahead in the game.