Norman has been set a target of three years to transform OMD's operations in the UK to a "digital model".
She will take charge of the newly formed OMD Digital, with responsibility for promoting the brand in the UK and the EMEA region, and ensuring the agency integrates digital into all of its offerings.
Norman will sit on the OMD executive board, headed by chief executive Nick Manning.
At the same time, OMD has restructured the management of its OMD UK and Manning Gottlieb OMD agencies.
MG OMD head of online Amy Lennox has now become head of OMD Digital in the UK, while OMD UK head of online Shan Henderson has been appointed as her deputy. Both will continue to sit within their respective agencies.
Jean-Paul Edwards has also been promoted. In the position of MG OMD head of digital futures he led the "Living Room of the Future" and "Tomorrow's out-of-home" projects. Edwards now becomes head of digital futures for the whole of OMD.
Manning said the purpose of the appointments and restructure was to "render the expression 'digital agency' redundant".
He added: "It is about restructuring the agency in a converged world. We will transform our business at the right pace to a new model which is closely aligned to the new media landscape, where digital distribution is key to all media development."
Manning explained that "one of Sheryl's key responsibilities is to ensure that we keep our digital service aligned with all of our other services".
OMD is also carrying out a research project on the new media landscape and how consumer attitudes, behaviour and media use are changing.
This will be led by OMD's strategic development director, Neil Hurman, and conducted by research arm OMD Insight, led by Jo Rigby.
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