Under the guidance of the management duo, the Royals were promoted to Division 1 after finishing as runners-up to Brighton & Hove Albion in the 2001–02 season. Pardew resigned in September 2003 and Dillon stepped in as the caretaker manager, until Steve Coppell was appointed in October 2003. At this point Dillon reverted to his role as the number two.
Under the direction of the management team, the Royals were elevated to Division 1 after finishing second to Brighton & Hove Albion in the 2001–02 season. Pardew departed in September 2003 and Dillon assumed a temporary managerial role until Steve Coppell was appointed in October 2003. At this point, Dillon reverted to his position as deputy manager.