Its an alternative way to long dividing - when the top degree of GREATER OR EQUAL TO bottom degree.
Begin with: f(x) = \frac{x^3}{x^2 - 2x + 1}
Write 'bottom on bottom'
f(x) = \frac{x^2 - 2x + 1}{x^2 - 2x + 1}
Do stuff to make it look like your true f(x) or else you've changed the question...