Forest are unbeaten in 10 matches since Davies succeeded Alex McLeish, a run that has seen his side mount a promotion push.
"When we came in here, we knew we had to pick the club up and move things forward. In my first week of training, we realised there was a lot of work to do," Sky Sports News quotes Davies as saying.
"On paper, there was no doubt we had good players, but I wish I could show you what I saw in the first week at this club. Irrespective of whether people believe it or not, it was a relegation battle.
"From that point of view, I have to say that competing against other clubs who have had the chance to coach, manage and organise throughout the whole season and pre-season, and who have had the opportunity to sign their own players, to work on the depth of squad and the structure at their club - for the whole season - then I am thrilled to bits to be in the top six now."
Forest, who had won just three games out of 14 when Davies took charge, go into this weekend's clash with Cardiff City in fifth place in the Championship.