The Blues are unbeaten in five games and host leaders Wolves on Monday, looking to narrow the gap at the top of the standings to two points.
And the former Rangers boss believes the Blues are still within reach of the Championship title.
"I would prefer to be in Wolves' position, five points clear, but we are still very much in it, we are in a good position," he told the Birmingham Mail.
"While there's still enough points on the board for us to finish top of the table, then we've got to go for it.
"I have got to challenge the players to get to the end of the season unbeaten, try and win every game. Whether we can do it is another matter."