The document discusses Hierarchical Object Oriented Design (HOOD), which is a method for hierarchical decomposition of a software design into units based on identifying objects, classes, and operations that reflect real-world entities. HOOD involves four phases: problem definition, development of a solution strategy, formalization of the strategy, and formalization of the solution. Key aspects of HOOD include identifying parent-child object relationships, operations for objects, and using object diagrams to depict the system structure.