Many hope Xabi will improve the performance of each of his players. This doesn't mean the players aren't good enough. We know Madrid has many good players, but building a team that works well together won't be easy. Every star player has their own ego, and the coach's role is to suppress that and transform it into good teamwork.
The Champions League will always be a target for Madrid, as will any coach who wants to prove his ability to do his job well. But first, let's see how Xabi dominates La Liga with Madrid.
He definitely have a big challenge for himself because being a real Madrid coach is not an easy task, there are a lot of things to do because there are team that are known to be very strong and also to perform excellently especially in the Champions League which they are known to have a better skills in Winning the trophy. Real Madrid have the ability to win every trophy they play which is why xavi has a lot to do especially now that real Madrid ended this season trophy less facing a lot of humiliation which was never expected but I believe there will do some things. I'm not saying Xavi is not good and equal is saying real Madrid players but no matter the performance they really have to put more effort since Barcelona as their rival her currently in a good shape which I expect a lot of challenges for Real Madrid.
Perhaps you meant Xabi, not Xavi.
I am sure Xabi has analyzed his team, of course looking at the performance of every player he has seen in the Club World Cup competition. He has led and knows the shortcomings of his team. Similarly, he is aware of the situation of their rivals in La Liga and the Champions League. He must have analyzed the strengths of their competitor, Barcelona. How they lost some points to Barcelona in the following season must be a concern. All teams are improving their performance through training and new recruits. Xabi must have prepared for it as well.