Liverpool owner John W Henry says Roy Hodgson's style of football was not suited to the club and feels there was no better man than Kenny Dalglish to take them forwards.
Under Hodgson, Liverpool endured their worst start to a season for almost 60 years and had been battling to stay clear of the relegation zone but, following the interim appointment of Dalglish, now look ready to challenge for a place in the top four.
After two defeats and a draw in his first three games, Dalglish has overseen four successive victories including Sunday's 1-0 win at Chelsea, and Henry is delighted with the improvement in performances.
"We wanted a 'caretaker', and we wanted to change the type of football we were playing," Henry said in the Liverpool Echo. "We wanted it to be a more positive, 'pass and move' philosophy, which would help stabilise the club.
"The team was playing in a way which wasn't suiting the club. It is early days yet, but I don't think we could have made a better choice.
"The fans can see that we are moving forward and that we are making changes. It's positive."
Dalglish has yet to be handed the job on a full-time basis and, as he is still scheduled to depart in the summer, he is still treating his role as temporary.
"I'm only doing what I said I would come in and do, which is help," Dalglish said. "I'll never stand in the way of progress at this football club.
"I have never had a conversation with the owners beyond the conversation I had when I came in. That's where we stand at the moment and until there is more to discuss, that is where we are."
Jamie Carragher said after Sunday's game that he would "obviously love him to be the manager".
Henry added: "Nobody could be more beloved by a set of fans than Kenny, and not just for his accomplishments on the field, but for his work off the field, through some very difficult times for supporters.
"He is unique. I know from talking to Kenny that he has wanted to be in this position for a very long time."