It is still too early to get good output from Xabi Alonso. We should give him more time and wait for the season to start. We cannot judge him now and expect the team to improve. However, the goal of a coach is to manage his team well from the beginning and take it to a strong position. He may have tried his best from the beginning to take his team back to its old form. But nature is more difficult than we expect, we just need time to succeed as a team and adapt to the team.
Every coach tries to take his team to the top with his strategy and start making plans for the team to improve. Even identifying and eliminating the weaknesses of his team takes some time. Real Madrid's defense was weak last season, we should see how Xabi Alonso takes action in this regard.
As of now, he is working of few things with having good experiments which are going to help them for coming season even Real Madrid is always team with great expectations and amazing results, but now things could be on another level because Xabi Alonso is heading for new era at this club.
Their performance is good in this current event which is giving good indications for Champions League but still as mentioned is too early to talk about them for having things on ground they are going to face challenge against Barcelona which is also at his best in last season while Champions League is going to be had too many challenges ahead of them in shape of PSG, Bayern Munich and Liverpool which are already at their best.