the center for corporate citizenship

Aligning Corporate Performance with Community Economic Development to Achieve Win-Win Impacts CASE STUDY: ADVANCED MICRO DEVICES (AMD)

at boston college

AUTHORS
Steven Rochlin, Director of Research and Policy Development, Center for Corporate Citizenship at Boston College Janet Boguslaw, Ph.D., Senior Research Associate, Center for Corporate Citizenship at Boston College

2001 The Center for Corporate Citizenship at Boston College. All rights reserved. This publication was prepared by The Center for Corporate Citizenship at Boston College, and is not to be reprinted without permission of The Center.

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Foreword

Business and Community Development: Aligning Corporate Performance with Community Economic Development to Achieve Win-Win Impacts, is a first-of-its-kind report on how companies use business and community development initiatives as a strategy for their community involvement. Based on interviews with more than 70 companies and additional data collected from over 40 businesses, the report offers managers and business leaders guidance and a framework for putting a business and community development strategy into practice, from broad strokes to organizationwide implementation. The cornerstones of the research and its findings are in-depth case studies of five corporations that have successfully integrated a strategic approach to business and community economic development. The companies and the main initiatives investigated are: Advanced Micro Devices (AMD)AMD has helped drive a win-win workforce development initiative that prepares students from low-income communities for work in high-tech semiconductor manufacturing. J.P. Morgan Chase (formerly The Chase Manhattan Bank)Chase has created an organizational structure to drive BCD across the organization. It has designed new lending services and products, allowing for alternative financing for affordable housing, small businesses, and communitybased supermarket development. Cisco SystemsCisco has created the Networking Academy Program, which trains and certifies youth and adults from low-income communities to install, service, operate, and maintain network routers. SAFECO Insurance CompanySAFECO created the Diversity Marketing Initiative, designed to build new markets in untapped urban areas. Texas Instruments (TI)TI has created a minority- and women-owned business development program designed to diversify its supplier network. The case study presented in the following pages provides an in-depth look at how Advanced Micro Devices (AMD) integrated a strategic approach to business and community economic development. Individual case studies for each of the five companies above are available from The Centers web site at www.bc.edu/corporatecitizenship.

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Advanced Micro Devices (AMD)

The great thing about AMD is that they have hung in there in good times and bad times. That is what we have to convince all of the employers. This is not something we can turn on and off like a faucet.
Bob Rutishauser, Project Director, Capital Area Education & Career Partnership

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Creating Strong Communities and Businesses through Regional Workforce Development Partnerships

OVERVIEW
Advanced Micro Devices (AMD), one of the largest semiconductor companies in the US, found itself facing a shortage of available, skilled technicians in 1995. The dramatic growth of manufacturing jobs at its Austin site produced intense competition among the semiconductor corporations for a local, skilled workforce. Expensive out-of-town recruitment costs and high turnover rates prompted AMD to act. The company took a leadership role in mobilizing a public-private partnership to develop and recruit skilled workers from an untapped pool low-income and minority adults and youth. The effort became part of the companys survival strategy to maintain operations in the Austin, Texas area. As a corporate partner in a consortium of companies, government agencies, and non-profits, AMD helped design the Semiconductor Manufacturing Technician (SMT) degree program, an industry-wide vocational training program. The initiative focused on the predominately low-income Hispanic community in East Austin marked by high unemployment, under-resourced schools, and limited skill development and training for high-paying job opportunities. While an active participant in the SMT program, AMD was also heavily involved in local school-business partnerships. The companys desire to take its business-school partnerships to a higher, more strategic level resulted in the development of AMDs own school-to-work job training program the Accelerated Careers in Education (ACE) program which exposes high school students to careers in semiconductor manufacturing. Working concurrently in developing both programs, AMD soon recognized that ACE could be a valuable pipeline for preparing high school graduates who were interested in entering the SMT program. Consequently, the company initiated a link between the two programs to expand the potential impact of the ACE program to the entire industry and school system. The ACE program grew to become a regional effort as other semiconductor companies became involved a move that was essential to build the programs capacity and sustainability. These programs are still in their infancy, but with savings from reduced turnover, recruitment, and training costs, the company, which had invested over $700,000, believes it has already met its break-even point. As the company

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points out, 54 percent of program graduates have been hired by AMD, with the majority of the remaining students continuing on to higher education. AMD fully expects to see returns in its investments in workforce development through maintaining a high level of business performance and strengthening its competitive position. The programs have generated benefits for low-income communities in Austin as well, including increased job opportunities and wellpaying career paths, growth in local assets and resources, and increased problem-solving capacity. The ACE and SMT programs have established a benchmark in business collaborations and partnerships for developing innovative workforce development strategies. AMDs involvement in workforce development programs illustrates how corporations can form and drive strategic partnerships that produce sustainable and profitable integration of community and company interests.

BACKGROUND AND MOTIVATING DRIVERS A Collaborative Program from the Start

The frustration of the Hispanic East Austin residents with the lack of economic opportunity in their neighborhood was first brought to the attention of business leaders during a community meeting conducted in 1994 by the president of International SEMATECH , a non-profit technology development consortium of semiconductor manufacturers. At the meeting, the International SEMATECH leader spoke with AMDs group vice president of worldwide manufacturing about working with other semiconductor industry leaders to launch a homegrown workforce by collaborating with the local community college. The idea was to establish a semiconductor curriculum to provide training for local residents who wanted to prepare for technician jobs. The program would simultaneously solve two of Austins most pressing problems: 1) a critical shortage of
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Established in 1987, International SEMATECH is a non-profit technology development consortium of semiconductor manufacturers. The organizations mission is to provide a competitive advantage for US semiconductor companies by cooperative leadership in developing manufacturing technologies. Located in Austin, the research facility serves as a proving ground for innovative semiconductor manufacturing processes. AMD has been an active member of International SEMATECH.

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qualified technicians; and 2) the need for employment and greater economic opportunity among Austins Hispanic and other minority groups. Their first step was to approach Austin Community College (ACC) regarding the development of a collaborative education program between industry and the college. ACC asked International SEMATECH and AMD to establish a committee of industry leaders to work with the college to support the development of the new curriculum. AMD took a leadership role in organizing the Semiconductor Executive Council (SEC) to provide the resources and technical support needed to establish the Semiconductor Manufacturing Technician (SMT) degree program at Austin Community College. Top executives from semiconductor businesses throughout Austin were invited to sit on the council, and the initiators from AMD and International SEMATECH agreed to co-chair the new council. The curriculum committee of the SEC worked quickly to develop a one-year certificate and a two-year Associate of Applied Science degree. By the fall of 1995, the first students were admitted into the SMT program. Since then, the SMT curriculum has been adopted by community colleges across the country.

EXISTING PARTNERSHIPS HELP ESTABLISH A SISTER PROGRAM

Previous to its work with the SEC and the SMT program, AMD was steadily engaged in local school-business partnerships. Since 1988 AMD had been working closely with Del Valle High School and since 1992 with Johnston High School through its adopt-a-school program. Through this program, AMD has contributed volunteer work, in-kind giving and grants. In total, the company has given over $550,000 to support K-12 education. AMDs partnerships with these two schools were motivated by: AMDs long-standing tradition and interest in the support of K-12 education. The location of the schools in the immediate neighborhood of AMDs manufacturing facilities. Desire to reach the disadvantaged youth from the economically depressed school communities.

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AMD recognized the direct connection between a strong educational system and the future success of the company. By 1994, AMD wanted to develop a closer partnership with the schools.

We were talking with our high school partners about how we might enhance our partnership, go to the next levelmake them more strategic. Do things that would ultimately be a win-win for both of us.
Allyson Peerman, Manager, Community Affairs, AMD Through discussions with their school partners, AMD learned that Del Valle High Schools administrators and faculty had a strong interest in forging relationships with area businesses to prepare their students for a career path in the high-tech industries located within the school district. As AMD began to explore ways to develop a home-grown workforce, their long-term partnerships with Del Valle and Johnson high schools gave them the experience, relationships, and commitment to quickly move forward in developing a comprehensive school-towork initiative to interest local youth in careers in semiconductor manufacturing. AMDs involvement with these schools provided the necessary stepping stone for progressing to a new stage of integrating community involvement across the business. While the SMT program was developed through a consortium of semiconductor companies led by International SEMATECH, the Accelerated Careers in Electronics (ACE) Program grew out of AMDs partnerships with these two local high schools. AMD took the initiative to design the awareness program to expose high school students to careers in semiconductor manufacturing. Others involved with ACEs development included the Capital Area Training Foundation (CATF) , the two local school districts (Del Valle and Austin) and Austin Community College (ACC). The program began in April 1995 with the following mission:

ACE Mission Statement

ACE is a coalition of semiconductor industry representatives, schools, colleges and universities working together to create aware-

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ness of and expose high school student to careers in semiconductor manufacturing

ACE Goals
The original program goals were to: 1) meet the need for skilled wafer fabrication technicians, 2) increase student awareness of high-tech career paths, 3) provide relevancy/connection between the classroom and workplace, and 4) provide students with a jump start on the post-secondary education needed to work in this highly skilled environment. These original goals have broadened over the past five years to include: Several driving forces influenced the development of the ACE program: AMDs partnerships with area schools and the desire to move them to the next level. The establishment of a semiconductor curriculum at Austin Community College. The City of Austins and Greater Austin Chamber of Commerces initiatives to provide the needed workforce to ensure the areas continued economic growth and social equity. AMDs need to recruit and retain a skilled workforce. AMDs desire to do the right thing. The program offers scholarships, internships, ACE Nights and site tours for parents and prospective students, summer workshops for teachers, and teacher internships. Career awareness Educator development Work-based learning Industry-specific training

STRATEGY Driving Forces for Program Development

By 1995, AMD was working diligently to develop both the SMT and ACE programs. While the SMT program was useful for workers already in the industry, it soon became clear that a pipeline of high school graduates interested in semiconductor manufacturing was needed to introduce new workers to the industry. AMD recognized the potential impact the ACE program could have on the entire industry and the school system.

As a result, the ACE program was folded under the SEC. However, the initiative would need the same type of multi-company support that had been critical to the success of the SMT curriculum program as part of their industry-wide workforce initiative.

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To complete the linkage of the two programs, AMD used the intermediary organization, Capital Area Training Foundation (CATF), to promote the ACE program to other companies. This allowed a third party to motivate others to become involved based upon the programs merit without it being branded as an AMD program. Additionally, AMDs group vice president promoted the program among his peers in other organizations, influencing other companies to adopt the program.

ORGANIZATIONAL STRUCTURE Cross-functional Support within AMD

The ACE program has forced us to cut across functional lines because none of us can sustain this effort on our own.
Allyson Peerman, Manager, Community Affairs, AMD Though the ACE program is managed by AMD's community affairs, the company is quick to point out that the programs success rests with the cross-functional support from others throughout AMDs organization. Although it was initially difficult to create buy-in across the company, support was essential because the program spanned several departments. These four different departments include community affairs, manufacturing operations, human resources, and learning & development. Because each department played its own key role to ensure ACEs success, it was important to overcome the barriers holding back each department from buying into the program. AMD was able to overcome these barriers for two key reasons. 1. CEO support According to Peerman, support from top management and especially the CEO is critical to developing buy-in across the company. The group vice president of Worldwide Manufacturing was active from the beginning in the development of the SMT and ACE programs and was identified as the program champion within AMD. His support gave weight to the program and promoted hiring interns in the department.

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2. The emergence of internal champions Internal buy-in was also enhanced after the programs first year when employee testimonials and success stories about students in the program and their mentoring experiences were voiced. These first-year experiences bred internal champions who promoted the program within their respective departments. Starting as a push effort from community affairs to place interns, the program soon became a pull effort in which employees began asking for more interns.

COMMUNITY AFFAIRS
The ACE program emerged as the result of community affairs AMD employees report the following factors as contributing to the initiatives success: 1) A clearly defined corporate need that each business unit understood (securing and retaining qualified employees). 2) A clearly communicated vision and demonstrated support from company leadership (the champions). 3) Personal interest: each participant was motivated by one or all of the following: a desire to give back to the community, a passion for youth, a desire to make a difference. at AMD recognizing a strategic opportunity. Through its community involvement, AMD understood the communitys need to have access to higher-paying jobs in the semiconductor business. Through its partnerships with area schools, AMD identified the possibility of expanding the educational opportunities for students to secure a college degree. Community affairs seized the opportunity to build upon its relationships with area schools to meet a critical corporate goal: hiring technically trained employees for its expanding manufacturing operations.

We were trying to ratchet up the whole focus of what had been called adopt-a-school to a true business/education partnership. We wanted people to

be engaged in strategic activities, not just balloons and tee shirts. We are trying to take it to a different level where you have a partnership with a school and you are doing meaningful work to impact students, their academic achievement or their overall success.
Allyson Peerman, Manager, Community Affairs, AMD Community affairs at AMD was responsible for managing the ACE program. As the project leader, Allyson Peerman was responsible for project planning, budget development, and coordinating the operation of the SEC and ACE Advisory Council. She also served as the primary liaison with the CATF and the Greater

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Austin Chamber of Commerce. Under her supervision, community affairs managed the day-to-day operation of the initiative. In addition to strong project management, the programs success relies on senior management support and an informal, cross-functional team within AMD.

MANUFACTURING OPERATIONS CHAMPIONS ACE

The vice president of worldwide manufacturings unwavering support of and commitment to the ACE Program, the SMT curriculum, and the community and industry partnerships were instrumental in developing buy-in from the operations department. It was crucial to bring operations on board in order to find supervisors for the programs interns and to contribute to program design. Operations, the manufacturing portion of AMD, is responsible for identifying positions for interns, hiring interns, assigning mentors, supervising, and providing instructions. The manufacturing operations staff are the internal champions for the intern program, according to Peerman. They are the lifeblood of the program because they can make or break it by their interaction with the student interns. They are also key players for the programs internal growth because they recruit other employees to become involved.

HUMAN RESOURCES COMMITMENT

Gaining the support of the employee recruitment function was one of the most important tasks of the community affairs department. Employee recruitment, accountable for filling the large number of immediate vacancies with qualified employees, needs all of its resources to meet the pressing demand in a very tight labor market. Under these circumstances, it is difficult for the organization to commit limited resources to a program that is slow in getting results. Community affairs had to address this valid concern if the program was to succeed. The first step was to provide financial resources to assist in the staff expense required to support the intern program. Additionally, community affairs worked very closely with the recruitment staff and management to offer

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support and to communicate the business value and successes of the program. The personal commitment to the program by employee recruiter Margie McKenzie generated an extra effort that has contributed significantly to the programs success. Margies drive and initiative has been a key element. Thats

why I agreed to become a mentor, said Facilities Department Manager

Dennis Huddleston, who is an AMD mentor. She explained the program to

me and encouraged me to participate.

Employee recruitment plays a critical role in the operation of the ACE program within AMD. Employee recruitment manages the recruitment, hiring, and placement of the ACE program interns. The recruiter screens applicants, solicits potential intern opportunities throughout the organization and coordinates intern interviews and placement throughout the company. She serves as the primary contact for both internal managers seeking employees and interns, and for applicants seeking employment opportunities. The recruiter is also responsible for measuring the value of the program to the company by assessing placement, retention and performance for these new employees.

AMDS EDUCATIONAL EXPERTS PLAY A CRITICAL ROLE

The director of the learning and development department was instrumental in developing internal buy-in from the department as a whole. A champion of the program from the beginning, the director assisted in bringing the entire department on board. The learning and development department, which is responsible for providing skills training for AMD employees, provides the expertise in curriculum development for ACE program teachers and students. Staff members serve as instructors at the Austin Community College and have developed the workshops to assist teachers in bringing industry applications into the classroom. Theyve

been there from the beginning, said Peerman. They are the ones who assigned people to work with the college to create an SMT curriculum for the course that would develop the skills needed by industryTheyve had a number of people who have been adjunct professors at the community college. They also put together a summer institute for educators.

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BUILDING AND SUSTAINING INTERNAL AND EXTERNAL RELATIONSHIPS: THE PARTNERS

AMDs contact and relationship with two area school districts prompted discussions, which identified community needs and fostered a vision to address these needs through the development of the ACE program. Internal administrative support from the principal of Johnston High School and the principal and superintendent of Del Valle High School was instrumental to the success of the ACE program. The size difference of the two districts influenced the impact and evolution of the program. Del Valle is a smaller, rural school district compared to the larger, urban district of Austin. Three external organizations jointly support the ACE program: the Semiconductor Executive Council, the ACE Advisory Council and the Capital Area Training Foundation. An Industry Marketing/PR Team and the SMT Advisory Council provide additional support. While many groups in the Austin region existed to serve similar purposes, it was the coordination and articulation of the various independent efforts that has contributed to building a regional workforce development initiative. AMD has not only been a driver in the process, but drew on its own relationships and experience with community schools to inform and grow its work. The Semiconductor Executive Council (SEC) is an excellent example of collaboration to accomplish a common objective. Members represent a mix of competitors, suppliers, and customers. Virtually every semiconductor manufacturing company in the Austin area is represented on the SEC. All are working together to develop a solution to the critical and universal industry need of securing and retaining a skilled workforce. The ACE Advisory Council served as a steering committee to guide the development of ACE. This cross-functional team established the vision, mission, and goals for the ACE program. The council identified curriculum development, faculty development, student recruitment and retention, work-based learning and the quality of incoming and outgoing students as key elements of the program. the council was dissolved once the program was adopted by the SEC.

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The Capital Area Training Foundation (CATF) was created in April 1994 as a result of a recommendation from the Mayors Task Force on Apprenticeships and Career Pathways for Austin Youth. It called for the formation of an industryled, nonprofit organization to promote the development of school-to-career initiatives. The CATF mission is to create employer-led education and workforce development partnerships to benefit both youth and adults in the Austin area. The Industry Marketing/PR Team was established to enhance the perception of the semiconductor industry as an employer of choice and to increase enrollment in the SMT and ACE programs. The Semiconductor Manufacturing Technicians Advisory Council works with program stakeholders in curriculum development, faculty development and student recruitment to ensure program quality at ACC.

CORPORATE AND COMMUNITY BENEFITS Corporate Value

The ACE program is a long-term project that requires commitment and patience to realize its full impact. Community stakeholders believe it adds value for the company in the areas of reducing cost for employee recruitment, increasing access to human resources, and improving the companys license to operate.

Community Impact
The ACE program has provided value to the community by increasing job opportunities, securing higher levels of job training, and increasing employment levels and job placement.

What was Learned, What can be Replicated?

When asked what lessons they learned regarding the implementation of the ACE program, participants offered the following advice:

Meet Business Needs

Identify the needs of the business and then develop a program that will help meet those needs.

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IMPACT ON THE COMMUNITY

Low-income family assistance Affordable educational opportunities for youth that low-income families could normally not afford. A bridge for students to access higher paying jobs.

Improved quality of life

Reduction in the gap between the affluent and low- to moderate-income communities of Austin because of higher paying job opportunities for those living in East Austin.

Increased opportunity, self-esteem and hope for students Reduced drop-out rate

Renewed interest in student coursework. Commitment and guidance from mentors inspires hope and self-esteem. The drop-out rate for students in career pathway programs appears to be about one-third of the drop-out rate of the student body as a whole in the same schools.

Improved schools

Cash and in-kind gifts, leadership, teacher training and curriculum development from area corporations.

Parent Appreciation Increased student employability and community prosperity Professional development for teachers Increased impact on community improvement

Favorable responses by parents of students enrolled in the program. Tech Prep students earned $3,189 more than other graduating students, or a total of $22 million a year. Enhanced relevance of classroom instruction as teachers better understand the connections between their curriculum and the real world. Reduced the public and private funds committed to assist young people who fall through the cracks of the educational system.

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Gain Top Management Support

Top management support is critical. That support gives the program credibility and encourages others to participate.

Think Long Term

BUSINESS BENEFITS FOR AMD

1. Reduced dependence on out-of-state recruitment 2. Reduced recruitment expense 3. Increase in job applicants 4. Reduced new-hire turnover 5. Reduced training expense 6. Diversity in the workplace 7. Improved employee morale 8. Professional development for managers 9. Enhanced relationships with partner high schools, community leaders, local elected officials and stakeholders 10.Enhanced reputation, visibility, and brand awareness 11. Increased local and national recognition

Be prepared for the long term. Solutions for workforce development require long-term strategies. It is dedicated work and it cannot be completed overnight. The great thing about AMD is that they have hung in there in good times and bad times. That is what we have to convince all of the employers to do. This is not something we can turn on and off like a faucet, said Bob Rutishauser, project director for the Capital Area Education & Career Partnership.

Cooperate with Competitors

Competing organizations can collaborate to address a common objective, but the presence of a neutral, noncompetitive organization such as International SEMATECH makes that collaboration much easier.

Get Stakeholders Involved Early

Program managers at AMD recognized the need for collaboration, support, and buy-in from other semiconductor industries if the program was to achieve its objectives. To expand the ACE Program throughout Austin, AMD attempted to recruit other businesses to partner with. The collaboration to expand this industry-wide workforce initiative was critical because no individual company could successfully carry out such a project on its own. The significance of the collaboration was that each company recognized that the long-term nature of the program depended on their involvement in time and money. Bringing these stakeholders on board after the program implementation, however, was difficult. Involvement from the beginning would have improved the process and speed of project development.

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Collaborate, Find Champions, Be Committed

Find champions and innovators who believe things can be changed and improved, and who are willing to take the lead and the risks in doing so. Here is where AMD was such a strength they were willing and eager to be innovative and get out in front and try to demonstrate that something new could be done effectively, Rutishauser said. Gary Heerssen, group vice president of manufacturing at AMD, is universally perceived as the external and internal business champion for innovative collaborative workforce development initiatives. Many others pointed out the leadership and dedication of Allyson Peerman, manager of community affairs at AMD in moving the project forward. One participant actually connected the two by saying: Allyson Peerman is the champion, but Gary Heerssen is the godfather. The collaboration empowered individuals to make significant commitments to the project. Many were involved, but three stood out. The first was AMDs technical recruiter. There is extreme pressure on company recruiters to fill positions during this period of very high demand. In spite of this pressure, AMDs recruiter agreed to manage the placement of student interns with departments throughout the company. It was acknowledged by many that this important task would not be accomplished if it were not for her personal commitment to the program. The second was AMDs head of learning and development (L&D). His team took the initiative to develop a three-day summer institute for science, math and technology teachers that is used by other companies. Additionally, one L&D team member developed a hands-on exercise using Legos to replicate the semiconductor manufacturing process. This activity is now available on a national basis. The third standout was a Yield Management Group staff member who was one of the first to serve as a mentor for students in the internship program. He has personally mentored several students, some simultaneously. His extra commitment to the young people he works with is evident in his energetic discussion about each intern assignment.

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These three individuals are not mentioned to the exclu-

KEY ELEMENTS OF PROGRAM SUCCESS

Heerssen offers the following suggestions for a successful program: Demonstrate commitment real commitment with the contribution of time, people and money. It will take resources to make this happen. Commit for the long term. The program will take a dedicated effort for years. Have a clear focus of what has to be done. You need more than a vision. You need concrete strategies and a willingness to take action. Partner. Make sure you have others involved in the process. This cannot be done alone. You have to have a unified effort, enabling the resources of business and the community. Have a good working model/organization to make it happen. Monitor and evaluate as you go along. These suggestions are applicable for corporate involvement in a broad spectrum of concerns that both include and go beyond low-to-moderate income issues.

sion of others who may have made similar contributions, but to demonstrate an observation of the impact of the cross-functional involvement in the ACE program.

Use Intermediary Organizations

Intermediary organizations are critical to implementing complex projects and partnerships, especially with partnering organizations of different cultures. CATF, SEC, and International SEMATECH were each important to the programs success. To create sustainable impact in community development a wide reach of resources and individuals need to be joined, for no one group or corporation can do it alone. With collaboration come both opportunity and challenge, and an increasing level of transparency of corporate planning and need within the community.

Build in Personal Interaction

Multiple studies of the school-to-work initiative in Austin and experiences in the implementation of the ACE program confirm the importance of personal experience and personal interaction. Findings in the studies such as the Austin Project and Bridging the Gap reveal that the direct exposure of students to the work envi-

ronment is essential to their career preparation.

MOVING FORWARD: A NEW DIRECTION FOR THE ACE PROGRAM A 2000-2003 Strategic Plan
In 2000, AMD began to strategize ways to improve and build upon the ACE program.

A most fundamental shift is occurring now with the strategic plan in June [2000]. Industrial electronics high school courses have been

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the primary focus up to this point. In order to get to critical mass, we are going to have to get beyond promoting courses. We need much broader outreach in terms of career awareness and marketing to students, teachers, and parents. And we need to start it earlier [before high school]. Thats the primary focus of the new plan. Not to do away with the course, but to get to a broader group of people, get them taking the right courses in math and science. There will be less emphasis on that one course and more on broad career awareness.
Allyson Peerman, Corporate Manager, Community Affairs

NEW ACE PROGRAM VISION

To ensure an annual yield of 1,000-1,200 area high school graduates who have electronics coursework and semiconductor/electronics experience, AMD and the partnering organizations have expanded the ACE program to all of the 23 high schools in the Austin region. Now called Destination Digital, the program seeks To increase the number of students interested in and academically capable of pursuing college and/or careers in the areas of math, science, engineering and technology, while raising awareness of the semiconductor industry as a positive career choice. This new, refined initiative was launched in April 2001.

CONCLUSION
These programs are still in their infancy, but with savings from reduced turnover, recruitment, and training costs, the company, which had invested over $700,000, believes it has already met its break-even point. Over half of program graduates have been hired by AMD, and AMD fully expects to see its investments in workforce development provide important returns. The programs have generated benefits for low-income communities in Austin as well, including increased job opportunities and well-paying career paths, growth in local assets and resources, and increased problem-solving capacity. The project sustainability ultimately rests on the key stakeholders commitment to the goal of providing the Austin semiconductor industry a trained workforce

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SUCCESS FACTOR SUMMARY

AMDs ACE program is an excellent example of the power of collaboration to address critical business and community issues. The success of the program rests with several important factors: 1) The ACE program was strategically developed to achieve a clear business objective (workforce development) and address a community need (economic prosperity and social inequity). 2) AMD demonstrated leadership in developing solutions to resolve the problem and committing resources for the long term. 3) Stakeholders were identified and true partnerships were established to ensure collaborative involvement in executive leadership, operating decisions, and program implementation. 4) Internal buy-in and involvement across several business departments within AMD. 5) An intermediary organization to assist in facilitation, to manage partner culture differences, and to drive the process. 6) Continuous assessments and adjustment were made based upon stakeholder feedback and program results.

to meet the growing need for manufacturing technicians. Achieving this longterm objective will require continued collaborative support from the semiconductor companies, schools, community college, municipal and county officials, and the community. Regardless of this outcome, the ACE and SMT programs have established a benchmark in business collaborations and partnerships for developing innovative workforce development strategies. AMDs involvement in developing workforce development programs illustrates how corporations can form and drive strategic partnerships that produce sustainable and profitable integration of community and company interests through strategic business and community development.

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About The Center

The Center for Corporate Citizenship at Boston College provides research, executive education, consultation and convenings on issues of corporate citizenship. Since 1985, The Center has created the skills and competencies for community relations practice. Through its research, knowledge building and Certificate programs, The Center helps corporations rethink their role in the community. Its mission is to provide leadership in establishing corporate citizenship as a business essential so that all companies act as economic and social assets to the communities they impact by integrating social interests with other core business objectives.

55 LEE ROAD CHESTNUT HILL, MA 02467-3942 PHONE 617.552.4545 FAX 617.552.8499 E-MAIL: ccc@bc.edu www.bc.edu/corporatecitizenship