An investigation conducted by former Telstra chief Ziggy Switkowski concluded "there was a lack of clarity about who was in charge" under the previous regime.
"There were two separate roles, with fuzzy lines of responsibility. The responsibilities of two key staff overlapped, and the new fitness team was able to largely ignore their attempts at direct management. Added to this is a senior coach in his first coaching role," the Switkowski report read.
"The position of GM, football operations, is an especially difficult one given subordinates and peers, eg coaches, can be charismatic alpha males who carry the weight of supporters' expectations on their shoulders. But this is a critical appointment requiring a strong capable individual who has the respect of the football staff and the support of the CEO."
Having been suspended by the AFL Commission, former football boss Danny Corcoran later resigned from the club.
Lloyd joined Fremantle in 2008 and currently leads the club’s recruiting and list management operations, but is not entrenched in the day-to-day running of the football department.
The 38-year-old played 11 AFL games for Hawthorn and had a successful VFL career with Williamstown.
He is seen as a key part of Freo's strategy team, and AFL.com.au understands he would be content with staying put.
Essendon is still waiting for the Australian Sports Anti-Doping Authority to finalise its report into the club’s supplements regime.
Outgoing ASADA chief executive Aurora Andruska told a Senate hearing in Canberra on Wednesday
In the spirit of reconciliation the AFL acknowledges the Traditional Custodians of country throughout Australia and their connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Aboriginal and Torres Strait Islander peoples today.