Sheedy is firmly in Hird's corner as the Bombers seek a replacement for Brad Scott, who departed in May.
But the 78-year-old is eager to see the club run a full process to appoint their next coach as they seek to climb out of the doldrums.
Hird, whose first stint in charge was plagued by Essendon's supplements scandal, has repeatedly stated he is keen to return to the role he last held in 2015.
"I would think that James Hird would have matured a hell of a lot in the last decade because he's gone through a hell of a lot," Sheedy told AAP.
"It's good to see him back in the coaching ranks in the VFL, which has been very good for him the last few years, and on the television talking and discussing where the game's won and lost.
"I remember doing TV for a couple of years before I got the Essendon coaching job. It was one of the better things I did."
Sheedy was the only member of the Essendon selection panel who voted for Hird to get the job when it went to Scott in September 2022.
Scott had a 29-50-1 record and had failed to reach the finals in three full seasons in charge by the time he and the Bombers parted ways.
"I had my vote four years and I haven't changed it. Everybody knows that," Sheedy said.
"Maybe that (appointing Hird over Scott) might've been a good decision when you look back too."
Essendon endured a club-record 17-game losing streak under Scott which stretched into this season and have just one win for the year.
They are 0-5 under interim coach Dean Solomon, who Sheedy said has "just about the hardest coaching job in AFL history" this season.
The Bombers' latest defeat was a 67-point drubbing from St Kilda on Sunday, during which Sheedy caused a stir when he pleaded with Essendon fans not to leave the match early.
That move was part of a promotion for ride hailing firm DiDi, in which front-man Sheedy is urging football supporters to "lose like a champion" rather than depart before the final siren.
The four-time Essendon premiership coach urged all at the club to remain positive through a tough period.
"We'll turn it around eventually. It wasn't all that long ago where most of the top clubs were down the bottom at some time," he said.
"(It will take) a lot of hard work and good planning and good decision-making.
"Firstly, the decision-making (around a new coach) and then make sure you get the right recruits because you can't win without great players."
Essendon officials reportedly met with Brisbane star Lachie Neale over the weekend, with the dual Brownlow medallist's playing future beyond this season undecided.
"I'd talk to all the best players in the country right now if I was Essendon," Sheedy said.
"I'd be out there recruiting diligently right now ... and he's just one of the top-class players."
Neale will be a key figure for red-hot Brisbane against Essendon on Sunday at the Gabba, where a Bombers win would amount to one of the greatest upsets in AFL history.
"It's a tough game we're in and you've got to be resilient," Sheedy said.
"If we go up there and play well, then it gives some Bomber fans a bit of spark.
"Maybe if it's a tight, tough game Bomber fans will accept that against a very, very outstanding club in Brisbane the way they are at the moment."
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