Obama is expected to remain in Chicago through at least the end of this week, meaning any memorial services in Hawaii for his grandmother, who passed away this week, will be held at a later time.

One item on the agenda is planning for the inauguration 75 days away, preparations for which began with the announcement of the theme, "A New Birth of Freedom," a line from Abraham Lincoln's Gettysburg Address.

More pressing at the moment is Obama's need to get his White House chief of staff in place and then move to economic and national security teams before filling other Cabinet-level positions.

The people who will lead the transition team are political veterans with strong ties to Chicago. Valerie Jarrett, a prominent local businesswoman, is part of the three-member team. She'll be joined by John Podesta, a Chicago native who served as President Bill Clinton's chief of staff, and Pete Rouse, a longtime chief of staff to former Senate Majority Leader Tom Daschle.

Another key member of that team could be Emanuel, who has had several conversations with Obama, his fellow Illinois Democrat, about the transition process.

The two men have spoken specifically about the White House job for more than a week, according to one Obama insider. Obama is impressed with Emanuel's strategic thinking and his ability to drive results from staff, the source said.

In terms of management and interpersonal style, Emanuel is strikingly different from Obama. He is dramatic and partisan, with an affinity for the kind of hardball politics from which Obama shies away. That may be part of the attraction, some say.

"Ultimately, Barack would rather be the good cop than the bad cop," said the Obama insider, who spoke on condition of anonymity. "He knows what his strengths and weaknesses are. He wants Rahm in there to play that role."

One strategist calls Emanuel an "inspired choice" for Obama.

"He needs someone in the White House who can say 'no' to people, and Rahm can do that," said Steve Elmendorf, a Democratic strategist and former chief of staff to then House Democratic Leader Dick Gephardt.

Another former Clinton aide agreed.

"A chief of staff has to have steel in his spine, and Rahm has that in ample measure," said William Galston, a former Clinton domestic policy aide who worked with Emanuel in the Clinton White House.

Galston said it is clear from Emanuel's career in Congress that he has smoothed the rough edges off a hard-hitting personality.

"He's internalized the notion of team playing to a great extent," Galston said, pointing to Emanuel's decision not to attempt to leapfrog over House Democratic Whip James Clyburn, D-S.C., the 3rd-ranking member of the House leadership, following Emanuel's success in running Democratic campaign efforts in 2006.

"He saw it would cause controversy and resentment whether or not he succeeded," Galston said.

Other members on the Obama transition team will serve on an advisory board, which includes Mayor Daley's brother William Daley, the former Clinton Commerce secretary; Susan Rice, a former assistant secretary of state for African affairs; Carol Browner, former EPA administrator; and Obama law school buddies and campaign advisers Michael Froman and Julius Genachowski.