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Despite being the most successful manager since Ramsay he has clearly decided that he has gone as far as he can.
He leaves the team in a better place than he found it and in a tournament or two we will have good young players with experience and hopefully be able to take that final step.
He has also shouldered a lost of criticism, some deserved, most not, and I'm sure that was part of the decision.
For me he has had a successful time in post not so much for the quality of football (I think he has been naive at times and has picked players out of form or played them in a system they are not used to) but for changing the culture around the squad. He has made changes to the talent recognition process as well and relations with clubs seem to be much better.