I'm assuming the OP is asking about Newberry's Optimum Charge Weight load development.
If so, the method is specifically NOT to choose the smallest group. It's to select the charge weight that is between two other charge weights on either side that have POI's closest.
Extract from Newberry's instructions: [My emphasis added]
14.
Triangulate the groups. This means to connect all three shots in a triangular form, and determine the center of the group, and plot that point on the target. Measure this point's distance and direction from the bullseye, and record the information somewhere on the target. Do this for all of the targets. If you have a called flyer, you should discount that shot, or replace it in the group if you have an additional round loaded with that charge (and having a fourth round is always a good idea).
15. You will now
look for the three groups which come the closest to hitting the same POI (point of impact) on the targets. The trend of the groups should be obvious, normally (but not always!) going from low and favoring one side, to high and favoring the other side. But along the progression, there should be a string of at least three groups that all hit the target in the same relative point.
16. After you have carefully measured group sizes and distances and directions from the bullseye, you will know which three groups come the closest to hitting the target in the same POI. You now choose the powder charge which represents the center of this string. For example, if 34.7, 35.0, and 35.3 grains all grouped about 1.5 inches high, and about 3/4 of an inch right of the bullseye, you would choose the 35.0 grain charge as your OCW (optimal charge weight). This charge will allow 34.7 and 35.3 grain charges to group right with it. This will be a very "pressure tolerant" or "resilient" load.
17. Remember,
don't get "bowled over" by a tiny group which falls outside the OCW zone. You can tune any of the groups to be tiny with bullet seating depth changes. After you have determined the OCW, you may want to try seating the bullets deeper or longer in .005" or .010" increments to see where your particular rifle does its best. If you're a real stickler for accuracy, you can do another "round robin" test using varied seating depths, perhaps in .003" increments. Look for at least two seating depth stages that hit the same POI and group tight as well. This said, I have often found that OCW recipes are so reliable that seating depth alterations--especially for game hunting cartridges--often don't seem necessary.
Link to his full instructions:
http://www.ocwreloading.com/about.html