The American Red Cross: Utilizing Financial and Technological Resources

Tess Strickland

MGT/330

February 11, 2013

William Roman

The American Red Cross: Utilizing Financial and Technological Resources

Since its inception in 1881, the American Red Cross has been providing citizens worldwide with disaster relief, health and safety services, and blood donations. They are part of a larger humanitarian movement known as The International Red Cross Movement; which was established in 1863 in Geneva, Switzerland by Henry Dunant (American Red Cross 2010). The American Red Cross is like any other non-profit organization and operates by following an organizational structure based on their mission, vision, and fundamental principles. The governing body of the American Red Cross is a Board of Governors, which “has all powers of governing and directing, and of overseeing the management of the business and affairs of the organization” (American Red Cross 2010 p. 2). The Board of Directors governs over the 769 regional and city-based chapters. Throughout the different chapters management carries out the necessary functions such as planning, organizing, staffing, directing, and controlling; while utilizing their resources efficiently and effectively. The following are specific examples of how the American Red Cross’s leadership and upper management has implemented some innovative ways to use their financial and technological resources.

Monetary

In 2007 a new CEO, Gail McGovern, was named to oversee the organization. One of the first issues she addressed was the procurement functions within the organization. Up until her hiring, the American Red Cross had procurement people to “shepherd contracts and purchase orders through to completion” (American Red Cross 2012). McGovern recognized this as a key area that needed to be updated and approached in a new way; in order save the organization money. After some trial and error, in 2009, McGovern appointed Jill Bossi, C.P.M. as the American Red Cross’ first Chief Procurement Officer (American Red...