Booz Allen's "Holistic Approach" Assists Red Cross in Building Sustainability
Non-profit tackles new challenges—including a role in homeland security—with new ways of thinking.
Every day of the year, the American Red Cross of the National Capital Area (NCA) is helping a community of 3.3 million people prevent, prepare for, and respond to emergencies. But after major organizational changes, two historic mergers, and increasing concern over potentially catastrophic events, the chapter had essentially become a new organization, with enormous new demands.
So the chapter asked Booz Allen Hamilton to assess the organization and provide recommendations for improvement, says Associate David Erbstein. The pro bono consulting effort spanned four months, ending in August 2005.
"We want to be the best stewards of our resources while we continue to honor our mission," says Linda Mathes, CEO of the Red Cross NCA. "But we needed new direction and perspective to help us build on our successes and productivity. Booz Allen helped affirm the good that we've done while identifying our challenges."
Booz Allen's team of 10 consultants evaluated the Red Cross' current business environment to see how they could better meet current and future organizational needs. They found six areas in which they suggested improvement:
- Communication
- Human resources
- Organizational structure
- Processes (e.g., standardizing processes within the organization)
- Resource strategy (i.e., fundraising and marketing)
- Information technology
The assessment was based on the collection and analysis of an extensive array of data including 26 interviews with internal staff, who were enthusiastic about contributing to positive change. Booz Allen submitted 19 change opportunities and 5 recommendations, including:
- Refine organizational structure to clearly define operating roles and responsibilities
- Develop internal and external communications plans
- Conduct a workload and workforce analysis, including a review of functions and competency requirements and the gaps in those functions and competencies
- Develop a strategic IT plan, including cataloging systems, software, hardware, interfaces, and data
An Ever-Growing Need for Red Cross Services
The American Red Cross NCA serves Washington, D.C., as well as two other cities and three counties in Virginia and Maryland. Its merger, completed in 2003, brought the Maryland counties of Montgomery and Prince Georges under the umbrella of the NCA chapter, and, over time, helped reduce administrative expenses by up to 18%.
Mathes knew more was needed, however. That's why she sought out Booz Allen, known for its organizational analysis and change management consulting services. "The Booz Allen team was dedicated, enthusiastic, and committed," Mathes says. "Their recommendations were thorough and comprehensive, and they explained the theory and approach."
Improvements at the non-profit are likely to be wide ranging. For example, while the Red Cross responds to emergencies and provides disaster relief, they're also continuously preparing for the next major catastrophe, including floods, hurricanes, or a terrorist attack. During such events, the Department of Homeland Security expects the Red Cross to play a primary role in caring for the people in a community. The Red Cross, however, does not receive funding from any government agency. Booz Allen provided suggestions as to how to reorganize the chapter to better address the demands of homeland security.
As another example, the NCA chapter raises all of their operating income themselves, and looked to Booz Allen for suggestions to raise more money, reduce costs, be better stewards of their resources, and operate more efficiently. With the implementation of Booz Allen's recommendations and other initiatives, the organization has a reliable plan with which they can increase stability.
The study also affirmed some actions already in the NCA chapter's annual business plan—many of which have begun. In fact, Red Cross leadership believes they should start seeing some results this year.
Booz Allen based its recommendations on a broad analysis of industry best practices, views of other Red Cross CEOs, and an examination of the services provided by the chapter, says Erbstein. Although the initial effort has now concluded, the NCA chapter and Booz Allen are discussing implementation strategies and a path forward.
story posted August 29, 2005
