In this chapter, Watkins emphasizes The Significance of Building a High-Performing Team by advising new leaders to recognize that “your decisions about the team you inherited probably will be the most important decisions you make” (152). He advises the leaders to avoid common traps when building their team such as criticizing the previous leadership, keeping the existing team too long, or attempting to make major changes too hastily.

He also stresses the importance of aligning the team with the strategic direction and early-win priorities. Watkins suggests that leaders assess their team members based on criteria like competence, judgment, energy, focus, relationships, and trust. Evaluating each team member's strengths and weaknesses is essential. He advises one-on-one meetings with team members, during which leaders should ask questions related to the organization's challenges and opportunities as well as seeking feedback on strategy.

Moreover, Watkins introduces the concept of “push and pull tools” to motivate teams (141). Push tools involve authority, loyalty, and rewards for productive work, while pull tools inspire through a positive vision of the future. To help the new leaders tailor their motivational strategies effectively, Watkins suggests balancing these approaches according to team members' preferences and the specific circumstances.

He emphasizes the need to have clear goals and performance metrics as well as aligned incentives for accountability.