After retiring as a player, Parkes stayed with Blackburn, joining their coaching staff under Bobby Saxton, where he became assistant manager.
He took over from Bobby Saxton (December 1986 – February 1987), Don Mackay (September–October 1991), Ray Harford (October 1996 – June 1997), Roy Hodgson (November–December 1998), Brian Kidd (November 1999 – March 2000) and Graeme Souness (September 2004)[3] after their departures.
Five years later, during his second caretaker spell, they had just been taken over by local steel baron Jack Walker and were a wealthy, ambitious side building for a challenge for promotion to the new FA Premier League – which was ultimately achieved at the end of the season under new manager Kenny Dalglish.
When Souness moved on early in the 2004–05 season, Parkes took temporary charge again until Mark Hughes was appointed as manager.
He left Rovers in November 2004, after 34 years at the club, when Hughes disposed of his services in order to select his own coaching staff.
Parkes criticised the club after he learned of his sacking from his daughter, who had heard the news on the radio, saying, "Usually Blackburn do it the right way, but they got it wrong.
"[5] Parkes was given a testimonial match in May 2005, a game which attracted back many former Rovers' favourites such as Alan Shearer and Colin Hendry.
[9] After discussions with the club chairman Karl Oyston – resulting in a disagreement over finances – Parkes left Bloomfield Road.