An account of the first year of Chicago's school reform effort as experienced in a predominantly Hispanic school is presented. The ethnicity of actors in each level of the restructuring effort is examined to develop an organizing framework to explain how interaction between these "layers" influences policy making and program implementation. Methodology involved interviews with school personnel, parents, administrators, and community groups; a teacher survey; and observation. Findings indicate that despite decentralization efforts, a gap exists between school level participants and the central administration. Reform processes and outcomes are influenced by different levels of groups, individual school context, and degree of ethnic diversity. Because policy implementation is a combination of actors, their needs and issues, and relationships with the larger context, the entire chain must be studied to develop a comprehensive picture of reform. Communication, connecting community organizations, family participation, and an interactive principal are needed for successful program implementation. One table is included. (14 references) (LMI)