The managerial climate of Texaco's R&D Department was improved through the combined use of employee surveys and enhanced delegation skills. Employee surveys were conducted by an independent consultant who analyzed the returns and, based on the survey results, made recommendations to the department's management. Management developed and implemented an action plan to address the most pressing issues, which included communication, the incentive system, establishing and prioritizing objectives, training, and ability to get things done The survey, feedback, and action planning process was repeated three times over a period of four years. The results show that the managerial climate improved significantly.