Creating a Team
Go to SETTINGS > Lists > Teams. Click Add and give the team a name - that's all a team needs. You can deactivate a team later if you stop using it; deactivated teams stay visible in the list and can be reactivated.
Assigning Employees to a Team
Go to SETTINGS > Your Team > Manage Users, open an employee's Edit User details, and use the Teams field to add them to one or more teams. An employee can belong to any number of teams, or none.
Where Team Filtering Shows Up
Once employees are assigned, a Team filter becomes available on:
Timelines
The Resource Scheduler (both the by-person and Pulse Tasks views)
Approve Timesheets and Review Time
Review Employee Expenses
Select reports
Permissions
Creating, renaming, or deactivating teams requires the Modify Teams permission. Assigning employees to teams is controlled separately, by the same permission that governs editing a user's other settings (Modify Firm Settings) - so it's possible to have one of these permissions without the other.