Sherwood was confirmed as Tottenham's new head on coach on Monday on a deal until the end of next season.
The former Tottenham midfielder was initially placed in interim charge following the sacking of Andre Villas-Boas earlier this month, but he has done enough to land the job on a permanent basis.
Sherwood has won one, drawn one and lost the other of his first three games in charge and Holtby has praised the manager for helping settle things down in the wake of Villas-Boas' departure.
"The gaffer is new in and he is trying to put his thinking into the team and we have to stick behind that," he said.
"We have to put 100 per cent dedication to that. I think he has a good opinion of football and his style of play is nice.
"He likes to play forward attacking football. We need to give him some time because it's not easy coming into a hectic phase of a club when you have a Christmas period.
"You don't have much time to train. All the credit to him - he has calmed things down. The things he has tried to bring to us, they are really working."