Open the door, and locate the striker plate on the inside of the door frame.
Remove the screws that secure the striker plate to the door frame by turning them counterclockwise using the proper type of screwdriver. Usually Phillips screws are used to secure the plate, but in some cases standard slotted screws are used.
Close the door, and notice where the button lands on the door frame and by how much it misses the cutout. Your observation will inform you of where to remove some of the door frame's wood to cause the button to fall into the cutout.
Chisel the wood from the edge of the cutout where you determined wood must be removed in order to allow the button to fall into the cutout. Use a hammer and small chisel to remove only the amount of wood necessary to make the button work properly.
Shut the door to check whether or not the button falls into the cutout correctly. Make minor adjustments to the cutout if necessary by scraping the wood with a utility knife.
Install the striker plate onto the door frame, locating it so it incorporates the expanded part of the cutout you created. The button should fall completely into the cutout and keep the door closed.