In this mode you can tell a mob to move and where to walk to. While holding the item, Left-Click on the mob or mobs that you want to move. Then point to the spot that you want the mob to move to and Right-Click. The mob will move to that spot.
Set Ward Position Edit
Tells the mob which position to ward.
Team Editor Edit
This mode is used to create parties of mobs, NPCs or Dummies. While holding the item, Left-Click on the mob or mobs that you want to assign to a commander. Then Right-Click on the mob that you want to become the commander. A feather will appear on top of the head of the commander. The subordinate mobs will follow the commander. You will want to change the settings in the mobs inventory GUI.