Willie Kirk said his team needed to show more belief on the ball after the Blues were beaten 3-1 at WSL title-chasers Manchester City on Saturday.
The Toffees created several chances against City, with Hannah Cain twice striking the woodwork, the home team emerged victorious.
A double from Pauline Bremer and a Gemma Bonner effort put Nick Cushing’s side 3-0 in front before the Toffees got a late consolation when Georgia Stanway scored an own goal.
Everton remain fifth in the WSL table.
“I don’t think there was loads wrong with the performance,” Kirk told evertonfc.com.
“I thought we did well with the game plan, we changed our shape out of possession, I thought the players did well to adapt to that and they looked comfortable with that.
“We weren’t as brave as we have been on the ball as we have previously, passing the ball and making the right decisions.
"I think we need to look after the ball better in the final third, that let us down. I thought there were opportunities to hurt City, we need to bridge that gap.
“The good thing is we didn’t collapse, we were 3-0 down, the players could have chucked in the towel.
“It’s lashing down with rain, but we didn’t feel sorry for ourselves and it shows character that we didn’t collapse.”
Kirk believes City’s ruthlessness in front was a further important factor in the result.
Bremer’s goals mean the in-form German forward has now struck 17 times in all competitions this season.
The Everton manager added the result highlights the fact that top-quality teams will punish any defensive lapses.
“I think we had chances and it is about taking them,” he said.
“They are very clinical, we are really disappointed with their goals, though.
“We feel they were all preventable so that is frustrating and, when we don’t take our chances, we won’t get a positive result.”