Lawrenson said: "This team is going nowhere in my opinion. I've got nothing against Mr Houllier, but he's in his sixth year at the club now and it's all about management style.
"Liverpool have struggled to beat many of the top sides this season because they haven't got enough options in attack.
"Take two players who should be providing the quality from the flanks, Harry Kewell and El Hadji Diouf.
"Kewell has been in and out of form all season, but Diouf? Does he add anything? No."