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This study used the team climate inventory (TCI) to create awareness of the multidimensional nature of team climate, to diagnose the climate of teams, and to present specific actions to improve team climate. Management undergraduates from 81, four‐person teams completed the TCI and an open‐ended question at week 3 and week 12 of their team projects. Quantitative results showed positive team climates at both administrations; however, only four of 13 sub‐scales showed small, significant improvements at week 12. Qualitative data analysis revealed 11 themes that enrich our understanding of factors contributing to positive team climate development. The study showed that the TCI is a useful tool in assessing team climate, sensitizing team members to the nature of team climate, and identifying actions to improve team climate in the context of the learning organization.

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