This article describes a formula for strategic success which states that the profitability of a firm is optimized when its strategic behaviour is aligned with its environment. The formula was developed over a 25-year period and has been extensively field tested. The article briefly reviews other prescriptions for profit optimization which now compete for management attention, presents the formula, discusses the results of the field research, and describes a practical strategic diagnosis procedure which can be used to determine a firm's preparedness to succeed in the future.