Harris acted as assistant to Brian Noble last term, as the former Bradford chief led the Crusaders to a play-off finish, in just their second Super League campaign.
With Noble moving on, Harris was promoted to head coach following his excellent achievements as boss of the Wales national team, who he led to European Cup glory in the autumn, earning a place in the 2011 Four Nations.
Davies said: “Crusaders performed extremely well last season and they have set the standard so there is pressure and expectations for this year.
“It is nice to see a young coach been given an opportunity and I am looking forward to seeing Iestyn Harris perform in his head coach role at Crusaders.
“It’s been tough for Crusaders off the field but as the season starts they will have to put that behind them and work on moving forward.”
Crusaders get their season underway against Salford at the Magic Weekend, being held at the Millennium Stadium in Cardiff over the weekend of February 12th/13th.