At the end of the 1980-1981 season having finished 15th Smith resigned due to business commitments, but during this period had also been appointed Joint Manager of the Isthmian League Representative Team.
In Smith’s first year in the Premier League Palace reached both Semi Finals of the Domestic Cup competitions losing to Liverpool and Manchester United after a replay.
He accepted an offer from Wycombe Wanderers to succeed Martin O'Neill as manager, but was sacked in September 1996 after a terrible start to the 1996–97 Division Two campaign, alienating himself from the Chairboys' fanbase in the process with what were perceived to be negative long-ball tactics.
He joined the club to help Middlesbrough manager Gareth Southgate, who played under Smith during his time at Crystal Palace, with their bid to return to the Premier League following relegation.
Southgate and Chairman Steve Gibson discussed the matter in detail before the appointment, which saw Smith take a behind-the-scenes role, rather than being involved on the training pitch or in the dressing room.