After a poor start to the season, the Rangers hierarchy decided to remove Michael Beale and appoint Clement to guide the Glasgow outfit to success.
Under the guidance of Clement, Rangers have managed to form a five match unbeaten run and reduced the gap with Celtic in the Scottish Premiership to five points.
Dodds believes that Rangers are gaining momentum by picking up wins and pointed out that the Gers are clawing their way back up the league table.
The ex-Gers star believes that it is a huge task to catch Celtic in the league, but believes that signs are there that they can do it.
“Everything is gaining momentum and that is all you can do and that is all Philippe Clement would have wanted when he first came into the job”, Dodds said on BBC Radio Scotland.
“Just get wins on the board, build momentum and see where it takes them, trying to claw back up against Celtic.
“That is exactly what they have done so far.
“It is still a mountain to climb but you can see the signs there and everybody wants to take part in that.”
Rangers are set to take on Hearts at the weekend in the Scottish League Cup, before they welcome Sparta Prague to Ibrox.
