Beyond the Noise: How to Evaluate Signals

I.M.P.A.C.T.: A Six-Dimension Framework for Strategic Signal Evaluation

There is a moment in pretty much every signal spotting session we do, where someone inevitably asks: “But how do we know this signal actually matters?” Usually the question is met with a slightly blank stare by the participants: All the trends and data points we collected suddenly feel less convincing. Because beneath all our sophisticated forecasting tools and trend reports lies an uncomfortable truth – most of us have no systematic way to separate meaningful signals from noise. And meaningful means: Meaningful to me and my organization. Tons of signals matter, but not necessarily for us and our company.

It’s usually not a data problem. We’re drowning in information. Every morning brings fresh trend alerts, industry reports, and “game-changing” announcements. The challenge isn’t finding signals (though even that is hard if you are not attuned to asking yourself the magic question “Isn’t that interesting?”); It’s evaluating them before they become obvious to everyone else.

The most successful organizations we work with share a common characteristic: they’ve moved beyond intuitive signal evaluation to systematic frameworks. They understand that in a world of infinite information, evaluation is everything. Signal evaluation is both an art and a science: The art lies in pattern recognition and contextual understanding – something which takes deliberate practice to become good at. The science lies in consistent, repeatable criteria that can be applied across different domains and time horizons.

For years, we have used a simple triptych to evaluate signals: The maturity and scalability, gestalt, and utility of a signal. Recently, in a conversation with a colleague of ours, I came across an extension of this framework which offers more detail and robustness: The I.M.P.A.C.T. framework.

The framework evaluates signals across six critical dimensions, each designed to capture a different aspect of potential significance.

Impact Potential asks not what something is today, but what it could become. The Internet in 1995 had minimal current impact but massive potential magnitude. Most organizations evaluate signals based on their present state rather than their potential ceiling – a fundamental error that causes them to miss transformative developments while they’re still actionable.

Momentum distinguishes between genuine acceleration and manufactured hype. Real momentum shows up in funding flows, talent migration, regulatory attention, and infrastructure investment – not just media coverage or conference presentations. Say what you want about AI – specifically, large language models – the sheer flow of money and build-out of infrastructure such as data centers indicates momentum. Contrast this with the short-lived euphoria about virtual reality – after a short burst of investment activity (and a lot of marketing noise), VR is relegated to a few niche applications. The question isn’t whether something is getting attention, but whether it’s gaining the kind of sustained momentum that creates lasting change.

Proximity forces honest assessment of relevance. A signal might be powerful but irrelevant to your specific industry, business model, or strategic context. This dimension helps organizations avoid the trap of chasing every interesting development instead of focusing on signals that could actually affect their future.

Authenticity becomes crucial in an era of manufactured trends and astroturfed movements. The source matters more than ever. Signals emerging from practitioners carry a different weight than those promoted by consultants or vendors. Understanding the motivation behind signal generation helps separate genuine developments from marketing campaigns.

Convergence recognizes that the most powerful signals rarely exist in isolation. They connect with other developments to create compound effects that reshape entire landscapes. A signal that stands alone might be interesting; a signal that converges with multiple other trends becomes transformative.

Timing captures the temporal dimension that most evaluation frameworks ignore. Understanding whether a signal requires immediate action or patient observation fundamentally changes how you respond. Some signals demand rapid experimentation; others need careful monitoring over extended periods.

Use this framework as a/the basis for your signal evaluation work and make it your own by adding industry-specific criteria that capture unique dynamics (e.g., the regulatory environment, should you find yourself in a heavily regulated industry). Create feedback loops to improve your accuracy over time. Validate your assessment with outside perspectives to minimize inherent evaluation biases. And keep revisiting your signals – something which might be a blip on your radar a few years ago, might grow into an industry-shaping force over time.

This systematic approach creates what we call “strategic optionality” – the ability to see opportunities while competitors see threats, to build capabilities while others build defenses. It’s the difference between reacting to change and shaping it.

Organizations that master signal evaluation don’t just move faster—they move earlier. They spot inflection points before they become obvious. They invest in capabilities before markets validate them. They position themselves at the intersection of converging trends rather than chasing individual developments.

@Pascal