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Episode Highlights:

  • Learn the specific process Andra used to evaluate and prioritise job orders, moving away from emotion-based decisions to a data-driven approach that dramatically improved placement success
  • Discover how Pentagon Plus turned around their consultant performance from 20% effectiveness to consistent revenue generation through structured training
  • Explore the systematic changes that freed Andra from constant hands-on management while improving team results

 

Episode Summary:

Meet Andra Chan, a recruitment business owner who transformed her 15-year-old agency from its lowest point to achieving remarkable results in just four months. After struggling with operating losses and hitting rock bottom in 2023, Andra shares how implementing systematic changes helped Pentagon Plus secure 23 high-value placements and generate 653,000 ringgit in revenue – nearly matching their entire previous year’s performance.

Tune in to hear Andra’s practical strategies for building a profitable recruitment business, including the specific systems that helped her move from being overworked to enjoying better quality of life. If you’re a recruitment business owner looking to increase revenue and build a more systematic approach to growth, this episode is packed with actionable takeaways you can implement straight away.

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                   Meet Andra Chan, a recruitment business owner who transformed her 15-year-old agency from its lowest point to achieving remarkable results in just four months

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The Story Behind Pentagon Plus

Origin and Business History

Pentagon Plus began its journey in 2009, marking 15 years of growth and development in the recruitment sector. Founded by Andra Chan and her business partner Vincent, the company has weathered various market cycles, including significant challenges during and after the COVID-19 pandemic. Despite facing ups and downs over their decade and a half of operations, Pentagon Plus achieved notable milestones, including reaching revenue heights of 1.4 million ringgit during their strongest periods.

Scale and Operational Focus

Operating as a boutique recruitment firm, Pentagon Plus maintains a focused team of 8 to 12 consultants at any given time. The agency specialises in mid to senior-level placements across five key functional areas: HR, finance, engineering, sales and marketing, and IT. Their placement scope ranges from mid-level managers through to C-suite executives, allowing them to serve clients with varied talent requirements while maintaining a specialised approach. This targeted focus has enabled Pentagon Plus to build deep expertise in their chosen sectors whilst maintaining the agility of a boutique operation.

Challenges Before Transformation

Critical Business Issues

Pentagon Plus faced persistent challenges with consultant performance and retention, despite having comprehensive systems in place including an applicant tracking system and CRM. Only about 20% of consultants were achieving strong performance levels, while the majority remained average or underperformed. Even successful consultants often became overwhelmed and left the organisation, creating a draining cycle of hiring and training new team members. The situation reached its lowest point in 2023, with revenue dropping to 850,000 ringgit and only 33 placements made throughout the year, resulting in operational losses and serious cash flow concerns.

Impact on Leadership

Andra Chan found herself caught in a common business owner’s dilemma – working in the business rather than on it. Instead of focusing on strategic growth, she spent excessive time managing day-to-day operations and training new consultants. This cycle created a situation where she felt more like a self-employed recruiter than a business owner. The constant turnover of staff and need to repeatedly train new consultants led to significant frustration and exhaustion. Cash flow problems added another layer of stress, as both Andra and Vincent had to continuously inject personal funds into the business to keep it afloat – a situation they recognised wasn’t sustainable long-term.

Business Transformation Journey

Systematic Business Evaluation

Pentagon Plus embraced a more methodical approach to analysing their business operations after joining the Rockit program. Moving away from emotion-based decision making, Andra implemented objective evaluation criteria for every job order. This new approach helped the team categorise opportunities into gold, silver, and bronze jobs, allowing for more strategic resource allocation. A thorough business x-ray process revealed crucial insights about revenue sources and highlighted the significance of referral-based business development in their most successful placements.

New Tools and Processes

The implementation of new systems brought significant changes to daily operations. Andra introduced a structured training programme using recorded Zoom sessions to document processes, making it easier to onboard and develop consultants. A comprehensive checklist system was established for gold job evaluation, providing consultants with clear steps to follow for successful placements. Weekly one-on-one sessions were introduced to review these checklists with each consultant, identifying and addressing specific challenges promptly. 

Results of Systematic Change

Measurable Business Growth

The impact of new systems became evident through dramatic improvements in Pentagon Plus’s key performance metrics. While 2023 saw their lowest performance with 850,000 ringgit revenue from 33 placements across the entire year, the transformation led to remarkable results. In just the first four months of their 2024 financial year starting July, the company achieved 653,000 ringgit in revenue through 23 strategic placements. This rapid improvement not only restored profitability but also put them on track to surpass their previous year’s performance in less than half the time. Cash flow issues that had previously plagued the business were resolved, enabling investment in further training and development initiatives.

Team Development and Performance

The implementation of systematic processes created a more supportive environment for consultant success and growth. Rather than relying solely on natural recruitment ability, consultants now had clear frameworks and checklists to guide their activities. When consultants faced challenges, the new structured approach made it easier to identify and address specific bottlenecks. For example, a consultant who struggled with CV submissions was able to pinpoint and overcome their specific challenge in candidate research, leading to three interviews scheduled the very next day. This systematic approach not only improved individual performance but also created a more sustainable working environment where consultants could thrive and develop their skills consistently.

Guidance for Growth and Change

Trust in Systematic Change

For recruitment business owners considering similar transformational changes, Andra Chan emphasises the critical importance of trusting the process, even when progress initially seems slow. Working alongside her coach Emma, Andra learned that rushing to implement multiple changes simultaneously could be counterproductive. Despite her natural inclination toward quick results, she discovered that allowing time for proper analysis and understanding of each business component led to more sustainable improvements.

Methodical Implementation Strategy

Taking a module-by-module approach proved crucial to Pentagon Plus’s successful transformation. Rather than attempting to overhaul everything at once, Andra focused on thoroughly implementing and embedding each new process before moving to the next. This methodical approach might feel slower initially, but it allows for proper foundation building and ensures each new system is fully understood and effectively implemented. By following this strategy, Pentagon Plus saw meaningful improvements emerge naturally as each building block was put in place.

Experience-Based Perspective

Drawing from her 15 years of business ownership experience, Andra acknowledges the challenge of building effective systems independently. While she had long recognised the importance of systematic processes, finding the right approach proved elusive until working with the Rockit program. Her experience demonstrates that even well-established recruitment businesses can benefit from structured guidance and support in implementing systematic changes. The journey from struggling with cash flow and operational challenges to achieving significant growth in just four months stands as practical evidence of what’s possible with the right systematic approach.