Gerrard is yet to win a trophy as a manager but has led Rangers to the Europa League group stage in three consecutive seasons and his side have begun the Scottish Premiership campaign in impressive fashion.
Gers have won 13 and drawn twice in 15 matches in all competitions this season and kept 12 clean sheets.
Holt, whose side visit Ibrox on Sunday, said: "They certainly seem to be a very well-oiled machine at the moment.
"They have got that mettle, that bit between their teeth, that they know what is expected of them.
"I think that comes from a longevity of being able to build and to play, people coming in knowing the system and how the manager works.
"We are too quick to judge people, too quick to say 'it's not good enough, need to get rid of him, we need to be winning trophies'.
"People need time, time to bed in their ideas. I always hark back to what Sir Alex (Ferguson) did at Manchester United, it's the biggest indication.
"And I know you don't get time these days, I understand that, results mean the most.
"But they certainly seem to have a very good squad with everyone pulling in the right direction and a lot of players that Steven has brought into the club as well.
"They have got momentum, they have a hungry squad, they have players coming off the bench, people sitting in the stands who want to be part of it.
"There are no grumblings, they are all focused on wanting to achieve the one thing, which is to win the league, and to win games of football. And that's a great trait to have.
"So it's going to be difficult but it's a challenge and there is nothing better than facing a challenge and going toe to toe."
Holt's side have had as much success as anyone against Rangers this season, holding them to a goalless draw in August. It was the only time this season Rangers have failed to score.
When asked how they can get something at Ibrox, Holt said: "By sheer hard work, sheer graft, by sticking to the game plan, understanding that you won't dictate possession, dominate it. Yes we want to have a fair share of the ball, but they're a very good side playing at home.
"We know we will have to have a game plan, there will be areas where we have to double up, help your mate out, but when you get the ball you have to show you are brave enough and deserve to be on the pitch to play.
"That's something we always talk about, concentrate on what our strengths are. Yes we know Rangers have players that can hurt you but we need to stick to what we are good at because if we don't and we just worry about what Rangers are going to do to us, it will be a long afternoon."