The Goats slumped to their seventh defeat in their past eight outings when they were beaten 2-0 at home by the ten-man Seattle Sounders in front of less than 10,000 fans at The Home Depot Center.
Chivas, who sacked head coach Chelis last week and replaced him with Jose Luis Real, find themselves at the foot of the Western Conference table with just 11 points from 13 outings but Palencia appears to not be fretting.
"For me and for the rest of the Chivas staff, the directors and everyone, we think we have enough talent here," Palencia told reporters.
"The players have the skills to be competitive and be high in the league standings. We have good talent, we just have to work at it and have better effort.
"This team wants to be competitive and wants to be in the higher part of the standings. With the bad results, we decided to make a change.
"The tactics are going to be different (with Real in charge). They know many players that are here. I don't want to compare both coaches, but the only thing that I can say is we trusted Chelis when he came here. We supported him and looked forward to bringing players to him, but the results weren't enough for Chivas. We decided to bring a very successful coach in from Mexico.
"He's the right person to coach this team and put this club where it needs to be."