This paper presents an original and comprehensive investigation into the Taxonomic Measure of Development (TMD), introduced by Hellwig in 1968, enriching both its theoretical foundations and practical applications. It provides an overview of various variants of the Hellwig method, including their extensions and applications, while also exploring recent trends across multiple research domains. Primarily developed as a method for multidimensional analysis, TMD has evolved into a pivotal tool in multi-criteria decision-making. It is widely used for evaluating and ranking alternatives, particularly in the analysis of complex socio-economic phenomena and decision-making scenarios involving multiple criteria. This study systematically reviews the original algorithm and its subsequent extensions and modifications, including adaptations for fuzzy sets, intuitionistic fuzzy sets, and interval-valued fuzzy sets. Furthermore, it explores an integrated multi-criteria approach based on Hellwig’s method and its practical applications across various domains. This paper introduces an original approach by conducting a detailed, step-by-step analysis of the TMD framework. This process-oriented analysis is a novel contribution that sets this study apart from typical reviews based on statistical or bibliometric data. By examining key steps in the TMD framework—such as data collection, criterion weighting, data normalization, ideal value determination, distance calculation, and normalization factor—this paper highlights the method’s versatility in addressing complex, real-world decision-making problems. Although similar to the widely used Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method in its reliance on distance to evaluate alternatives, Hellwig’s approach is unique in focusing exclusively on proximity to an ideal solution, without considering distance from a negative ideal. This distinctive emphasis has led to numerous adaptations and extensions that address specific issues such as criterion dependencies, uncertainty, and rank reversal. The findings underscore the continued relevance of the Hellwig method, its recent extensions, and its growing international recognition.