Understanding Claude

The complete guide for your team, from first message to full automation

1

What is Claude? #

Not a search engine. Not a chatbot. An AI that can act.

Claude is an AI assistant made by Anthropic. Unlike a search engine, it doesn't just look things up. It reads what you give it, thinks about it, and produces original output. It can write, analyse, summarise, plan, code, and reason across a huge range of tasks - and when it needs current information, it can search the web too.

Think of it as a capable colleague who is always available, never forgets what you've told it in the current conversation, and improves every time you give it feedback.

Write & edit

Emails, reports, proposals, meeting notes, presentations

Research & analyse

Summarise docs, compare options, extract insights from data

Reason & plan

Break down problems, brainstorm strategies, structure thinking

2

Prompts: your brief to Claude #

What you type is called a "prompt." Think of it as writing a brief.

The quality of Claude's output is directly tied to the quality of your prompt. A vague prompt gets a vague response. A specific prompt, with audience, format, tone, and length, gets something you can actually use.

Vague prompt

"Write me an email about the project update."

Strong prompt

"Write a two-paragraph email to the client updating them on the Q2 project. Professional but warm tone. Mention the three milestones we hit and flag the two-week delay on the design phase. End with next steps."

You

Summarise this 20-page report into five bullet points for my manager. Keep it professional and concise. Focus on the financial risks and the recommendation.

Claude

Here are the five key takeaways from the report, focused on financial exposure and the proposed path forward…

3

Tokens: the currency #

Everything in Claude is measured in tokens. They're the unit of cost and capacity.

A token is a small chunk of text, roughly three-quarters of a word in English. When you send Claude a message, it breaks your text into tokens, processes them, and returns tokens as a response. Everything counts: your input, any files you attach, and Claude's reply.

You don't need to count tokens manually, but understanding they exist explains two things: why conversations have limits and why a concise, well-structured prompt often outperforms a rambling one. One specific prompt that nails it first time uses fewer tokens than five vague attempts.

How text becomes tokens
The quick brown fox jumps over

Each highlighted block is one token. Most words are a single token, but longer words get split into multiple pieces.

¾
of a word per token
(English average)
1 token
≈ 4 characters
Your plan: Team (Standard seat)

Most of you are on a Team plan with a Standard seat. Here's what that means in practice:

Two usage windows

Your usage is governed by two limits that work together:

5-hour session window - a short-term cap on how much you can use in any rolling five-hour period. If you hit it, wait for the window to roll forward. This usually resets within an hour or two.

7-day weekly allowance - your total budget for the week. It resets seven days from when it started. If you exhaust this, your admin can enable extra usage top-ups.

Both limits are per person. A colleague hitting their cap never affects yours.

Stretching your allowance

Default to Sonnet. It handles most tasks well and uses fewer tokens than Opus. Only switch to Opus when the task genuinely needs it (complex reasoning, long contracts, nuanced analysis).

Write specific prompts. One clear brief that nails it first time costs far less than five vague back-and-forths.

Trim your attachments. Share only the relevant pages, not the whole document.

If you hit a limit: Claude will tell you. For the 5-hour window, take a short break - it resets quickly. For the weekly limit, check with your admin about top-ups.

5hr
rolling session window (short-term cap)
7-day
weekly allowance (total budget)
Per person
limits are individual, not shared
4

Context window: Claude's working memory #

All the tokens in one conversation share a single pool of memory.

The context window is the total amount of text Claude can hold at once in a single conversation. It includes everything: your messages, any files or documents you share, previous messages in the conversation, and Claude's own replies. When it fills up, the oldest content drops off.

What does this mean in practice?

It's why Claude can "forget" things in very long conversations. It hasn't lost the information permanently; it's simply fallen off the edge of the window. If something important was mentioned early on, it may no longer be in Claude's memory.

Think of it like…

A whiteboard in a meeting room. Everything is written on it as you go. Once the board is full, you need to erase the oldest notes to keep writing. Claude's whiteboard is very large, but not infinite.

Compacting: how Claude manages a full window
Window full
200K tokens used
Claude summarises
old context condensed
Space freed up
conversation continues

When the context window fills up, Claude can compact the conversation: it summarises older messages into a shorter form, freeing up space to continue. Key details are preserved, but exact wording may be lost.

200K
tokens in the standard context window

That's roughly 500 pages of text — more than enough for most conversations. Only very long research sessions or large document uploads will approach the limit.

5

Models: choosing the right engine #

Claude comes in three sizes. Sonnet is your go-to for almost everything.

A model is the engine behind Claude. Larger models handle harder tasks but are slower and use more of your allowance. For the vast majority of your day-to-day work, Sonnet is the right choice. Only reach for Opus when Sonnet's output isn't quite hitting the mark.

Sonnet

Best all-rounder

Handles 95% of your work. Fast, capable, and cost-effective. Start every task here. If the output isn't quite good enough, then try Opus.

Opus

Most powerful

Reach for this when the task is genuinely hard: long contracts, complex multi-step reasoning, nuanced analysis where every detail matters.

Haiku

Fast & light

Quickest responses, lowest cost. Ideal for simple reformatting, quick lookups, and high-volume tasks where speed matters most.

6

Conversations: when to start fresh #

Each conversation is its own workspace - but Claude can remember key details across them.

By default, every new conversation starts from zero. Claude also has a Memory feature that lets it remember key details - like your preferences, projects, and working style - across conversations. Your admin controls whether Memory is enabled for the team.

Keep going in the same conversation when you're refining one piece of work (e.g. iterating on a report). Start fresh when you're moving to a genuinely new task. If you need to bring context forward and Memory isn't covering it, paste in the key points.

Stay in the conversation
When to keep going
  • Refining one piece of work ("make it shorter", "more formal")
  • Iterating on a draft where context matters
  • Adding or adjusting something in the same document
or
Start a new conversation
When to start fresh
  • Switching to a completely different task or subject
  • Old context is cluttering Claude's focus
  • You want a clean baseline without prior assumptions
7

Tools: Claude can do, not just say #

This is where the chat-to-agent shift gets real.

Claude isn't limited to typing responses in a chat window. It can use tools - built-in capabilities that let it take action. It can search the web for live information, run code to crunch numbers, and create actual files (Word docs, spreadsheets, PDFs, presentations) you can download and share. When you ask Claude to "write a report," it produces a real document, not just text in the chat.

Tools are what turn Claude from a writing assistant into a working assistant. And as you'll see next, MCP lets you add even more tools by connecting Claude to external apps like Slack, Jira, and your databases.

Create files

Word docs, spreadsheets, PDFs, presentations, code

Browse & research

Search the web, read pages, gather information

Run code & automate

Execute scripts, process data, chain actions together

8

MCP: the universal plug for your apps #

One standard connection lets Claude talk to any compatible app.

The Model Context Protocol (MCP) is a universal standard that connects Claude to external apps: Slack, Jira, Gmail, Figma, Google Drive, databases, and more. Each connection gives Claude tools — specific actions it can perform inside that app, like "read a Slack channel," "create a Jira ticket," or "send an email." Before MCP, every integration was custom-built. MCP standardises the connection so any compatible app can plug in instantly.

You'll hear these connections called connectors. When you enable the Gmail connector, for example, Claude gains tools to search, read, and draft emails. Each connector is powered by MCP under the hood.

Think of it like…

USB-C. Before USB-C, every device had a different cable. MCP is the one universal port that lets Claude talk to any app through a single standard connection. Each app that plugs in gives Claude new tools it can use.

What does this mean for you?

It means Claude can read your Slack messages, check your Jira tickets, pull data from your spreadsheets, and draft a response in Gmail, all within one conversation. The apps stay separate; Claude is the assistant that connects them through MCP tools.

9

Connectors, skills & plugins #

The building blocks that turn Claude into a customised workflow engine.

Three concepts work together here. You already know connectors — they link Claude to external apps. A skill is a saved set of instructions that tells Claude how to do a job: what data to pull, how to process it, and what format to deliver. Instead of explaining "write the report in this format, with this structure, in this tone" every time, you save it as a skill and Claude follows it automatically.

A plugin bundles everything together - skills, connectors, and other components - into something you can install in one click. Think of it as an "app" for Claude: it adds a whole workflow rather than just a single instruction.

Connector

The link between Claude and an external app. Each connector uses MCP to give Claude tools for that app - reading data, creating records, sending messages. Enable a connector once and Claude can use it in any conversation.

Examples: Gmail, Slack, Jira, Google Drive, Metabase, Intercom

Skill

A reusable set of instructions that defines an entire job. Skills ensure Claude does a task the same way every time - same structure, same quality bar, same format. Everyone on the team gets consistent output.

Examples: "Weekly portfolio memo," "Client query summary," "Onboarding checklist"

How they combine into a plugin
Connectors
links to apps via MCP
+
Skills
saved instructions
=
Plugin
install in one click

A plugin packages connectors and skills (plus optional extras like agents and hooks) into a single installable bundle. Install the plugin and the whole workflow is ready to go.

A hook is a script that runs automatically at a specific point in Claude's workflow - for example, before a tool is called or after a task finishes. Hooks let plugin builders add guardrails, enforce policies, or trigger follow-up actions without anyone having to remember to do it manually. You won't need to create hooks yourself, but you'll benefit from them whenever a plugin uses them behind the scenes.

One prompt. Three systems. Done.
"Pull this week's portfolio performance from Metabase, cross-reference it with any client queries in Intercom, and draft me an internal memo update in Outlook."
Data sources
Metabase
Portfolio performance
1
Intercom
Client queries
2
Orchestrator
Claude
Reads, reasons, connects
Output
Outlook
Internal memo update
Draft ready
What's happening behind the scenes
A skill triggers the workflow
Saved instructions define the entire job - what data to pull, how to cross-reference it, and how to format the final memo.
MCP connects the apps
One standard protocol links Claude to Metabase, Intercom, and Outlook - the data sources and the output.
Tokens carry the data
Prompt, pulled data, and draft all fit inside one context window.

Cowork is a feature of the Claude Desktop app (macOS and Windows). It runs securely on your computer, meaning it can read and write your local files without you having to upload or download anything. Think of it as giving Claude a seat at your desk.

Work with your files

Read, edit, organise, and create documents, spreadsheets, presentations, and PDFs directly in your folders.

Run multi-step tasks

Break complex jobs into subtasks, coordinate them in parallel, and deliver finished output.

Plugins & connectors

Install plugins for specific workflows. Connect to Slack, Gmail, Jira, and more.

Schedule recurring work

Set tasks to run automatically - daily summaries, weekly reports, or anything that repeats.

Paid plans only
Desktop app required
macOS & Windows
Each session starts fresh

If you've been following this guide from the start, Cowork is where it all clicks. Tools, connectors, skills, and agents - they all come together inside Cowork's desktop interface. You describe the job. Claude does the rest.

10

Getting started: your first week #

Build confidence gradually, then go further.
Day 1

Try the basics

Summarise a document. Draft an email. Rewrite something in a different tone. Get comfortable with prompting.

Day 3

Start delegating

Ask Claude to create a full report, not just bullet points. Try using a connector in Cowork (Gmail, Slack). Let it create a file for you.

Week 1

Think like an agent

Give Claude a multi-step job. Combine tools and connectors. Review the output like you'd review a colleague's work. Iterate.

Tips for better results

01

Be specific

Include audience, format, tone, and length. The more detail in your prompt, the better the output.

02

Show examples

Paste a sample of the style you want. Claude picks up patterns quickly from even one example.

03

Iterate, don't restart

Refine in the same conversation. "Make it shorter", "add a table", "more formal" all work brilliantly.

Common mistakes

Being too vague. Starting over instead of iterating. Using Opus for simple tasks. Treating Claude like a search engine. Not giving feedback when the first output is close but not quite right.

What to do instead

Write prompts like briefs. Stay in the same conversation and refine. Use Sonnet as your default. Give Claude a job, not a question. Tell it what's wrong and what you want changed.

Prompt
The message you type to Claude
Token
A small chunk of text (~¾ of a word)
Context window
Claude's memory for one conversation
Model
The engine (Opus, Sonnet, Haiku)
Agent
Claude acting autonomously with tools
MCP
Universal standard connecting Claude to apps
Skill
Saved instructions that define an entire job
Plugin
Bundle of skills + connectors, installable in one click
Connector
Links Claude to an external app, giving it tools via MCP
Compacting
Claude summarising old context to free space
Hook
Script that runs automatically at a point in Claude's workflow
Cowork
Claude's desktop agent - works with your local files and tools
Hallucination
When Claude produces plausible but wrong info
Sonnet
The default model. Start here for everything.