Group from the right — 111101101 splits into 111 101 101, and each group reads off the table: 7, 5, 5. Octal 755. If the bit count is not a multiple of three, the converter left-pads and says so (11111111 becomes 011 111 111 → 377, decimal 255). No multiplication, no division — pure grouping, exactly like hex except the groups are one bit smaller. The reverse direction expands each digit back into its 3-bit triple.
The same 8-4-2-1 family of ideas powers the neighboring pages: hex to binary expands 4-bit nibbles, binary to hex compresses them, and binary to decimal handles the base where digits stop lining up with bits.