Making Big Decisions Better

About the Author

Tim Lewko is the CEO of Thinking Dimensions and a best-selling author. He has led a global movement to simplify strategy for executives through better decision-making. Over the past 20 years, he has worked with thousands of executives across four continents, helping them enhance their decision-making processes and financial performance. Lewko's clients, including Private Equity Portfolio, NYSE, NASDAQ, and Family Offices, have collectively achieved over $1 billion USD in improved EBITDA performance through his advisement and the tools presented in his book, "Making Big Decisions Better."

Main Idea

"Making Big Decisions Better" provides a comprehensive toolkit designed to help executives and managers set, develop, and execute effective strategies. The book emphasizes the importance of practical strategy tools that promote visual decision-making and root cause analysis to address performance gaps. Lewko's approach revolves around the TDG System, a set of transportable tools that simplify the strategy-making process and enhance the agility and profitability of organizations. By focusing on defining strategy, developing a robust decision-making process, leveraging internal knowledge, and ensuring clear understanding of profitability, Lewko aims to equip leaders with the means to achieve enduring success.

Table of Contents

1. Introduction
2. Fix Your Strategy
   • Define What Strategy Means
   • Strategy as a Decision-Making Process
   • Don't By-Pass Sweat Equity
   • Understanding the Revenue – Cost = Profit Equation
3. Build Your Strategy
   • Strategic Assumptions and Implications
   • The Product Market Capability (PMC) Engine
   • Goals and Gaps
4. Use Your Strategy
   • Test Your Strategy Against 7 Criteria
   • Reinstate Root Cause
   • Check in Quarterly: Use it or Lose it

Analyzing and Explaining Each Idea in Depth

Introduction

The introduction of "Making Big Decisions Better" highlights the escalating speed of change and the necessity for practical strategy tools that can adapt to dynamic business environments. Lewko underscores the need for CEOs and executives to simplify their approach to strategy, making it a dynamic and continuous process rather than a static, event-driven activity. He introduces the TDG System as a solution to equip leaders with the ability to think, develop, and execute strategy effectively.

Fix Your Strategy

Define What Strategy Means

Defining strategy is the first step in fixing it. Lewko argues that a clear definition of strategy removes communication gaps and aligns the organization’s focus. He defines strategy as a framework of choices that outlines the purpose and path of the organization. This definition emphasizes making informed decisions about products, markets, and capabilities through the eyes of the customer and relative to the competition. A well-defined strategy leads to superior profitability and a clear organizational direction.