This seven-chapter report explores in depth how issues relating to race, language, and culture can be incorporated into every stage of a reform process targeting supports to disadvantaged children and families. The report draws on 1993 research involving a survey of 98 collaborative programs in California, site visits to seven collaborative programs (six in California and one in Colorado), in-depth interviews with individuals involved in collaborative reform initiatives nationwide, and a literature review. The report's chapters discuss: (1) the links between human-services reform efforts and issues of diversity; (2) the use of community assessments to engage diverse stakeholders in identifying community strengths and resources to evaluate the cultural appropriateness of current services and to identify community needs and goals; (3) some strategies and approaches to the grounding of human services in an understanding of cultural, linguistic, and racial diversity; (4) staff development and other steps that agencies can take to equip themselves with workers who are able to respond to the needs of diverse children and families; (5) the institutional changes needed to promote culturally and linguistically appropriate services; (6) governance strategies that support inclusive decision making; and (7) recommendations that apply to all groups to ensure that issues of diversity are addressed. Appendixes contain the research methodology and surveys. Contains 58 references. (GLR)