This practical guidebook is designed for managers and leaders who have responsibility for the creation and success of teams. First, a team is described as a workgroup whose members are dependent upon one another for the completion of a given task, and whose members possess different but complementary skill sets. A team manages its own work within boundaries set by its superseding organization; has internal processes for managing communication, resolving conflicts, solving problems, making decisions, and reaching goals; and is bounded and stable over time. Five critical components are reviewed that contribute to forming an effective team: set a clear goal; build organizational support; create a team structure that empowers team members; identify key relationships between the team and stakeholders in and outside the organization; and monitor external factors to help in adapting to changing pressures, changes, and competition. When a team is formed with these principles in mind, it has a good chance of reaching success. Worksheets and checklists are included to help formulate and organize ideas and action plans. (Contains 14 references.) (RT)