Under previous managers Ruud Gullit and Gianluca Vialli, Chelsea were capable of beating the best - but too often they failed to maintain their form over the course of a league season.
Despite failing to deliver silverware in his first two seasons - as his predecessors managed - Italian Ranieri was granted a new five-year contract by chairman Ken Bates earlier this year.
"Chelsea's problems were always that they had a talented squad of players but an inability to keep consistency," said Elliott.
"They could grind out an occasional result, but now Chelsea are beginning to do it with more regularity.
"If you really want to finish in the top three or four now then that becomes imperative.
"Liverpool have shown how high you can rise in the Premiership by grinding out results.
"Everybody has their own aspirations, and Chelsea's are to finish in that top four and make the Champions League. The signs are towards that, and if they are still there in March they will have a chance."
Six weeks ago it appeared the Chelsea of old had returned when in the space of eight days they crashed out of the UEFA Cup in the first round and lost league games to West Ham and Liverpool.
Elliott says that Chelsea’s quick, quiet recovery, following that disastrous week is down to Ranieri's management.
"Ranieri has quietly and effectively gone about his business, and that week was a good test of his managerial skills," said Elliott.
"He concentrated on the team ethic and managed to pull things around.
"By virtue of Ken Bates handing him that long-term contract, I think he realises he has a very good coach on his hands.
"He is building a model for the short, medium and long terms by mixing youth with experience.
"The club's youngsters like Robert Huth and Carlton Cole have been given a chance, and it's no coincidence that Gianfranco Zola is having a great season.
"The older players like Zola and Marcel Desailly know there is pressure developing behind them for their places.
"Ranieri has begun to impose his personality on the club. He has brought in a few players since his arrival, and they all know what he wants.
"The communication levels have improved, and he has been showing the right body language and refusing to get carried away publicly by their good start."