Imagine a river that separates two banks. On one bank live some people, on the other, others. The boundary between them is visible where the river's current changes sharply. The SP-MGM algorithm looks for such abrupt changes in data to figure out where one group ends and another begins.
To find boundaries, the algorithm builds special waves that describe how objects are connected. If two groups are weakly linked, the wave changes sharply at the boundary between them. The algorithm finds the largest change and draws the boundary right there. This way, it decides on its own how many groups there should be, without needing that number to be specified in advance.
The algorithm was tested on sea surface temperature data. It found seven distinct states of El Niño and La Niña. This helps better understand how different types of this phenomenon affect weather. Such a method could also be useful in other areas, for example, for finding communities in social networks.
The SP-MGM algorithm almost always outputs exactly m+1 clusters for m eigenmodes, although theoretically there could be up to $2^m$. This points to a deep connection between gaps in eigenvectors and graph structure.
The idea of finding hidden structures by gaps in data recalls the analysis of 'patterns' in William Gibson's novel 'Pattern Recognition', where the protagonist intuitively finds anomalies in video streams. The algorithm formalizes such a search for graphs.