Experience shows that teamwork produces powerful results. Working in a team environment, however, presents its own set of challenges. This handbook provides U.S. Department of Education managers and employees with guidance to develop high-performing teams. Based on input from agency employees throughout the country, the handbook was designed to help answer the most frequently asked questions, offer possible solutions to common challenges, and provide user-friendly planning checklists. The introductory section differentiates teams from work groups, describes the benefits and challenges, delineates the appropriate and inappropriate uses of teams, and describes the various types of teams and roles within them. The next three sections offer suggestions for preparing, implementing, and sustaining teamwork. Recommended readings and references are offered at the end of each section. An appendix contains a supervisory position addendum. (Contains 39 references.) (LMI)