Polano began his coaching career in 1975–76 with the Erie Blades of the North American Hockey League (NAHL) and led that team to three consecutive regular season and playoff championships.
In the summer of 1985, Polano was replaced as head coach by Harry Neale, but remained in the organization as the assistant general manager for player development.
Polano and team vice president Jim Lites, along with several European scouts, were instrumental in aiding the defection of several future NHL players from behind the Iron Curtain including Petr Klima, Slava Kozlov, and Sergei Fedorov.
Polano had scouted Klima during the 1983 World Championships where he was competing as a member of Czechoslovakia men's national ice hockey team.
Polano stayed with Klíma as Lites and other Wings officials arranged for him to gain refugee status to enter the United States.