Sherwood was sacked as the Villa manager in October 2015, having been appointed in the role in February 2015.
However, a run of poor results at the start of the 2015-16 season saw Sherwood lose his managerial job at Villa in October.
Higginbotham believes that the former Blackburn Rovers midfielder lost his job at the Villans for failing to use his favoured system.
“Sherwood lost key players in the summer like Christian Benteke, Fabian Delph and Ron Vlaar and did not replace them,” the former Sunderland defender told Sky Sports.
“I think the key thing for him at the start of the season was he could never settle on the system he wanted to play. Unfortunately, because he is a good young manager and you want to see him be successful, it did not work out for him.”
Remi Garde succeeded Sherwood as the Villa manager, but the Frenchman failed to prevent the club from getting relegated to the Championship and he also parted company.
Villa are looking for a new manager, and hopefully for the fans the club will make a new appointment soon.
The Championship is a very hard, competitive and tough league, and the Villans will find it difficult to finish in the top six next season.