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Under post-Katrina pressure, Red Cross undertakes overhaul

NEW YORK - Assailed for its missteps in the wake of Hurricane Katrina, the American Red Cross is plunging into a daunting, two-track effort to overhaul its entire disaster response system and the often cumbersome way it governs itself.

There is pressure to move quickly and convincingly.

The new hurricane season starts June 1, and the Red Cross is hurrying to get its new response plans in place before any big storms arrive. It also hopes to complete an independent audit this summer and offer governance reform proposals to Congress before skeptical politicians start pushing their own reform plans.

"Is the process painful? Absolutely," said Red Cross board of governors chairwoman Bonnie McElveen-Hunter. "These are defining moments, defining hours for us ... But ultimately we will have a greater American Red Cross."

Underlying both reform initiatives is a degree of self-criticism and outreach that's striking for an organization long viewed as resistant to change and outside advice. The Red Cross itself said last month that its representatives "need to be aware of their reputation for arrogance, bureaucracy and insensitivity."

The 125-year-old charity, chartered by Congress, was far the biggest player in responding to Katrina, raising $2-billion, mobilizing 235,000 volunteers and helping hundreds of thousands of displaced people.

Yet it was criticized by some who said it responded too slowly in some low-income minority areas, and also was accused of overreliance on inexperienced staff and reluctance to work closely with other nonprofits. Critics included experts from overseas Red Cross groups, members of Congress and nonprofit executives.

McElveen-Hunter and interim Red Cross president Jack McGuire said the criticism is being taken to heart and would fuel substantive changes. Some will be outlined at the upcoming National Hurricane Conference in Orlando.

One major reform proposal is to strengthen cooperation with other national charities and with grass-roots church and community groups, particularly in minority neighborhoods. The Salvation Army and the NAACP are among the groups that have been asked for advice.

"We want to work with partners much more broadly than ever before," McGuire said. "If the community is better benefited by them running a shelter than us, they will do so."

The NAACP's chief operating officer, the Rev. Nelson Rivers, said he was disappointed in the past by Red Cross "sloganeering" about diversity initiatives that never materialized. But he expressed optimism about the new initiative.

"It still takes them a long time to move, but they are moving," he said. "The test will be, "How close will the action match the words?"'

McGuire said other steps to improve disaster response will include improving communications and data-collection technology, tightening documentation of aid disbursement, and recruiting major transport and delivery companies to expedite emergency supply shipments.

To better ensure that funds are well-used, the Red Cross will no longer dole out immediate aid of $1,000 or more to displaced families, McGuire said. Instead, $150 or $200 might be provided up front, with larger sums handed out only after validation of a family's need.

"Our logistics worked well generally, up until 2005," McGuire said. "We couldn't imagine how something that big and complicated could happen. It took a process that worked OK and stretched it, and we got to see all the cracks."

Coinciding with the disaster-response overhaul is an intensive effort to improve how the Red Cross governs itself: It now has a 50-member board.

Reform ideas were solicited at a closed-door summit of outside experts on March 21, and McElveen-Hunter said she hopes recommendations will be ready to submit to Congress before it reconvenes this fall. It's the first such self-assessment by the Red Cross since 1947.

Outside experts have called for reducing the size of the board so decision-making is easier, weeding out board members - including presidential appointees - who often miss meetings.

McGuire, a veteran Red Cross official, has been serving as interim president since Marsha Evans quit in December. McGuire conceded that the Red Cross had been wearied by events of the past 18 months, going back to the Indian Ocean tsunami and continuing through the ongoing critiques.

"It's difficult to move on to the next step, but that's what we've got to do - to jump on those things that are critical to the country for the next go-round," he said. "If we're lucky we'll have a very light hurricane season. But would you want to bet on that?"

[Last modified April 9, 2006, 00:21:05]