Real finished the season trophyless, with Xabi arriving to succeed new Brazil coach Carlo Ancelotti.
After his initial presentation at the Santiago Bernabeu this morning, Xabi took questions from the media present.
Asked if a replacement for Luka Modric will be needed, with Croatian great leaving this summer, Xabi began: "Our duty is to always want to improve. Therefore, since I've been Madrid's manager, I want to have this communication and vision with the club to agree on how we want to improve.
"The squad is very good, and I want to start working with them. I'm here eager to work as a team and improve.
"I'm not very objective about Luka because we were teammates, and when he arrived, we had a chemistry. He became the conductor of the orchestra; he's been a great legend. Watching his farewell the other day makes you proud. I was with him a while ago. I was lucky enough to be coaching him at the World Cup; it's going to be a privilege."
Rodrygo is needed
Xabi was also quizzed about Rodrygo Goes, who is unsettled and being linked with a move away.
He continued: "Rodrygo is a Real Madrid player, and I'll speak to everyone who's a Real Madrid player. They deserve it, and we need it. Rodrygo is a spectacular player; we'll need him."
Xabi then expanded on his plans for Jude Bellingham, Kylian Mbappe and Vinicius Junior.
On Bellingham, he said: "He can be special anywhere because he's a special player. His emergence is a milestone player for Real Madrid. He's 21 years old and will be fundamental to the club's future projects.
"He's in a good place to work with. I see him as a midfielder. We'll try to make him as efficient as possible."
On Mbappe and Vini Jr, Xabi stated: "It's a blessing that we have players of that calibre. Not just Kylian or Vinicius, but so many others. They're differential, they make the difference, and we have to get everything they have. I have ideas.
"There's still time before we get together with them. But for me, communicating what we want is very important. They're high-caliber players, and that's the task at hand."
We need to come together
Returning to the market, Xabi was asked where the team needs to be improved after a disappointing campaign.
But the former Real midfielder insisted: "I've analysed how the team played, how the players are, and I'm using it to inform my own idea. As coaches, we depend on the players, and I think they're top-notch. The challenge is to build a team, unleash the potential of these players, and for us all to come together. If we all come together, we'll have a very powerful force."
And on how he wants Real Madrid to play under his leadership, Xabi added; "It's a good question, and I like it because today's football demands flexibility and dynamics. It demands that you move your pieces around.
"I have an idea of how we want to play, but the system can change. I want the team to convey emotion and energy, play ambitiously, and connect with the fans. The symbiosis we seek is essential for a good start to the season. I like to improve each player's potential to fit the pieces together."