The 49-year-old replaces Jeff Blashill, who the Red Wings announced April 30 would not return after seven seasons.
It is the first head coaching job in the NHL for Lalonde, who spent the past four seasons as an assistant for the Tampa Bay Lightning and won the Stanley Cup in 2019-20 and 2020-21. Tampa Bay lost to the Colorado Avalanche in six games in the Stanley Cup Final this season.
"We got great in Tampa when we literally just started focusing on the process," Lalonde said Friday. "I know it sounds like a cliche, but I think it is foolish to sit here and talk about making the playoffs and where we are going to be or putting a number on wins. That can hurt you if you are going about that the wrong way. For me, it is going to be the process. Obviously, some things are team defense and some special-team improvement, but if we take care of the process and do the little things, we will improve.
"We want to win, we're going to do it correctly and the right way, and it is my job to begin the process."
Lalonde was named an assistant by the Lightning on July 12, 2018, when Red Wings general manager Steve Yzerman was Tampa Bay GM.
"I went through the process of identifying who might be a candidate to coach this team," Yzerman said, "and slowly worked my way down to a small group of guys that would be a really good fit. Based on a little research and doing a little bit of homework -- talking to people -- the more I looked into it, the more I realized Derek was a really good fit for this job. This is a great opportunity for us to bring in a coach with tremendous experience as a head coach at various levels and coaching as part of a very good staff and a very good program.
"I expect him to do things his way, not necessarily the Tampa Bay Lightning way or the (Lightning coach) Jon Cooper way. I've hired Derek to do it his way. He's taking experience and learned lessons along the way and gotten ideas along the way from every stop in his coaching career.
Lalonde previously coached Iowa of the American Hockey League, the affiliate of the Minnesota Wild, for two seasons from 2016-18, and Toledo of the ECHL from 2014-16. He also coached Green Bay of the United States Hockey League for three seasons and won the Clark Cup championship in 2011-12, when he was named the league's coach of the year.
"There has been a ton of growth at every level as a coach," Lalonde said. "My approach has never been about getting to the NHL or being at the next level -- I concentrated where I was at and how to create a great program where I was, and I think it is probably why I had success at every level.It is a partnership -- good players want to be held accountable and you have to hold them accountable.
"I'm very excited about this opportunity for another challenge."
The Red Wings (32-40-10) finished sixth in the Atlantic Division this season, the sixth consecutive season they failed to qualify for the Stanley Cup Playoffs.
Lalonde is the seventh coach to be hired since the conclusion of the regular season. Lane Lambert was hired by the Islanders on May 16, Bruce Cassidy replaced Peter DeBoer as coach of the Golden Knights on June 17, John Tortorella was hired by the Flyers on June 17, DeBoer by the Dallas Stars on June 21, Paul Maurice by the Florida Panthers on June 22, and Luke Richardson by the Chicago Blackhawks on Monday.
The Jets and San Jose Sharks are the NHL teams without a coach after the Boston Bruins hired Jim Montgomery on Friday.
NHL.com independent correspondent Dave Hogg contributed to this report
