Liverpool are outsiders to secure Champions League football for next term following a run of just one victory in seven top-flight games, leaving the Reds trailing fourth-placed Tottenham Hotspur by 13 points.
But the 61-year-old Reds boss still considers the campaign to be a success after winning the Carling Cup and guiding them into the FA Cup semi-finals.
“It depends how people view success,” said Dalglish at his weekly news conference on Thursday. “I view success as the club moving forward – and that’s what we’re doing.
“We certainly have made progress over the year, in lots of areas – not just the first team.
“Maybe at times it isn’t always apparent, but on the pitch the club is moving forward, in and around Melwood it’s moved forward, off the pitch it’s moved forward, the Academy has moved forward.
“We just need to get our league results in better order and it’ll be a happier story.
“We want to compete equally in every competition we’re in. We’ve done tremendously well in the cups and we’ve got to recreate it in the league.
“It’s not been that way this season. There have been a lot of fantastic performances but we’ve not got the results.
“The players are as disappointed as anyone else when we lose a game but we’ll keep doing what we do day in, day out in training. At some stage I’m sure it’s going to come right.
“We’ll keep going the way we believe in.”
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