Signal-to-Noise
The ratio that determines the success of every organisation
Steve Jobs applied the principle instinctively. He kept Apple’s focus razor-sharp, eliminating noise wherever it appeared. That discipline turned Apple into the most impactful innovation machine of its time.
The core signal was crystal clear. And Jobs made sure – in his own peculiar ways - that no one diluted it with distractions, compromises, or well-intended additions. The signal came through. Clear and loud.
His way of operating is often related to Signal-to-Noise, a principle that originates in audio technology. The Signal-to-Noise Ratio (SNR) is a measure of quality — and therefore of impact. It indicates how much of the original sound is polluted by unwanted noise after amplification, and how much remains intact.
SNR is one of the key technical parameters used to judge if audio equipment is high-end or not. And it is just as relevant for organisations.
The importance for businesses
A quick look at the technical principle of Signal to Noice, immediately illustrates why this is extremely relevant for businesses – or any other type of organisation.
In information physics, there is a fundamental law: the capacity of any system to transmit information predominantly depends on its signal-to-noise ratio.
The question of a signal comes through is not as much defined by bandwith, or power. It really depends on clarity.
It is mathematics; small improvements in SNR create disproportionately large improvements in capacity.
This is why refining a company’s positioning, creating a clearer signal and reducing noise, can unlock performance without adding resources. It means both higher efficiency and higher impact.
There are many technical forms of noise that treathen the SNR, and they all sound familiar when you think about company processes:
interference
dilution
contamination
fragmentation
signal degradation
Consider this: a brand is not built by a ‘grand strategy’. A brand is built through thousands of decisions, large and small, made by everyone in the organisation, every single day.
That’s where noise enters. It is an unintended by-product of people and teams working together and making decisions.
No one likes noise. But almost everyone contributes.
Positioning is foundational to the success of a company. It can function as an internal compass, keeping the organisation focused on the core signal.
Benchmarks: high SNR companies
A high Signal to Noise ratio is not only a story about Steve Jobs and Apple. There are more well known companies that have managed to keep their signal pure and powerful, like:
IKEA – Democratic design
Patagonia - We’re in business to save our home planet
Ryanair – Lowest fare, full stop
Coolblue – Everything for a smile
Transavia – It’s a pleasure
These principles are relevant, differentiating, rooted in their core, and well-executed. And as opposed to most of the brand values that companies mention, these leading principles are completely company specific and unique.
What they do is keep focus and avoid randomness.
Key lessons to learn
One true core signal beats five clever ones.
Internal decisions are harder than external messaging.
Growth is never constrained by lack of ambition, always by lack of focus and alignment.
No-one wants noise. But nearly everyone contributes.
Analytical strategies don’t move people. Emotion does.