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Chabad is a mystical system developed by Rabbi Schneur Zalman (1747-1812) which greatly influenced Hasidic thought. The term is derived from the initial letters of three Sephirah of the Kabbalah Tree of Life: Chokmah, Binah, and Daath.
Basically the chabad system as taught by Zalman was a way of putting Kabbalistic teachings into one's daily activities. It teaches that everything in life exists only because of God's intentions. Through intellectual effort and meditation one can control one's deeds. Though emotions are important, they are short-lived; it is through the mind that emotions can be remembered, controlled, and steer the heart in the desired, propped direction.
This Kabbalistic triad represents a progressive dynamic in the divine creation of the world and the human intellect or psyche. Wisdom, Chokmah, represents the actual birth of wisdom in the mind. Understanding, Binah, represents the details of creation and the working in thought to produce the idea. Knowledge, Daath, represents the act of taking the thought and creating the actual world and the act of taking the thought and applying it to one's personal life.
The development of this dynamic provided a psychological formulation
that enabled the individual to substantiate his or her mystical thoughts.
The resulting triad is considered an important advancement in Jewish thought,
because it helped assimilate spiritual thought with daily behavior.
Chabad facilitated Hasidism and currently throughout the world there are many Chabad Houses, places serving as synagogues and schools, proving for Jewish communities. These houses maintain and informal structure, requiring no minimal observance in order not to intimidate those with less Hebrew teaching from those having more. A.G.H
Drury, Nevil. The Watkins Dictionary of Magic. London. Watkins Publishing. 2005. p. 53