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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Morgan Chase (formerly The Chase Manhattan Bank)—Chase has created an organizational structure to drive BCD across the organization. the center for corporate citizenship at boston college i .edu/corporatecitizenship. and maintain network routers. which trains and certifies youth and adults from low-income communities to install. It has designed new lending services and products. designed to build new markets in untapped urban areas. • Cisco Systems—Cisco has created the Networking Academy Program. 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 Center’s web site at www. from broad strokes to organizationwide implementation. • J. service. small businesses. 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.and women-owned business development program designed to diversify its supplier network. • SAFECO Insurance Company—SAFECO created the Diversity Marketing Initiative. • Texas Instruments (TI)—TI has created a minority.P.Foreword Business and Community Development: Aligning Corporate Performance with Community Economic Development to Achieve Win-Win Impacts. and communitybased supermarket development. allowing for alternative financing for affordable housing. 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. operate.bc. is a first-of-its-kind report on how companies use business and community development initiatives as a strategy for their community involvement. the report offers managers and business leaders guidance and a framework for putting a business and community development strategy into practice. Based on interviews with more than 70 companies and additional data collected from over 40 businesses.

Advanced Micro Devices (AMD) “The great thing about AMD is that they have hung in there in good times and bad times. Capital Area Education & Career Partnership the center for corporate citizenship at boston college 1 . Project Director. 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.

found itself facing a shortage of available. Consequently. The ACE program grew to become a regional effort as other semiconductor companies became involved — a move that was essential to build the program’s capacity and sustainability. and limited skill development and training for high-paying job opportunities. an industry-wide vocational training program. As a corporate partner in a consortium of companies. Texas area. which had invested over $700. government agencies. AMD was also heavily involved in local school-business partnerships. recruitment. 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 company’s desire to take its business-school partnerships to a higher.000. 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 effort became part of the company’s survival strategy to maintain operations in the Austin. more strategic level resulted in the development of AMD’s own school-to-work job training program — the Accelerated Careers in Education (ACE) program — which exposes high school students to careers in semiconductor manufacturing. While an active participant in the SMT program. believes it has already met its break-even point.Creating Strong Communities and Businesses through Regional Workforce Development Partnerships OVERVIEW Advanced Micro Devices (AMD). AMD helped design the Semiconductor Manufacturing Technician (SMT) degree program. skilled workforce. the company. As the company 2 the center for corporate citizenship at boston college . but with savings from reduced turnover. one of the largest semiconductor companies in the US. under-resourced schools. skilled technicians in 1995. Working concurrently in developing both programs. Expensive out-of-town recruitment costs and high turnover rates prompted AMD to act. and non-profits. and training costs. AMD soon recognized that ACE could be a valuable pipeline for preparing high school graduates who were interested in entering the SMT program. The dramatic growth of manufacturing jobs at its Austin site produced intense competition among the semiconductor corporations for a local. The initiative focused on the predominately low-income Hispanic community in East Austin marked by high unemployment. These programs are still in their infancy.

AMD’s 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. 1 the center for corporate citizenship at boston college 3 . growth in local assets and resources. 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. and increased problem-solving capacity. 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. The ACE and SMT programs have established a benchmark in business collaborations and partnerships for developing innovative workforce development strategies. the International SEMATECH leader spoke with AMD’s 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.AMD points out. including increased job opportunities and wellpaying career paths. The organization’s mission is to provide a competitive advantage for US semiconductor companies by cooperative leadership in developing manufacturing technologies. The idea was to establish a semiconductor curriculum to provide training for local residents who wanted to prepare for technician jobs. the research facility serves as a proving ground for innovative semiconductor manufacturing processes. Located in Austin. with the majority of the remaining students continuing on to higher education. 54 percent of program graduates have been hired by AMD. At the meeting. The programs have generated benefits for low-income communities in Austin as well. The program would simultaneously solve two of Austin’s most pressing problems: 1) a critical shortage of 1 Established in 1987. AMD has been an active member of International SEMATECH. International SEMATECH is a non-profit technology development consortium of semiconductor manufacturers.

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. and 2) the need for employment and greater economic opportunity among Austin’s Hispanic and other minority groups. the SMT curriculum has been adopted by community colleges across the country. the first students were admitted into the SMT program. 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. in-kind giving and grants. • The location of the schools in the immediate neighborhood of AMD’s manufacturing facilities. Top executives from semiconductor businesses throughout Austin were invited to sit on the council. AMD has contributed volunteer work. the company has given over $550. Since then.AMD qualified technicians. Their first step was to approach Austin Community College (ACC) regarding the development of a collaborative education program between industry and the college. EXISTING PARTNERSHIPS HELP ESTABLISH A “SISTER PROGRAM” Previous to its work with the SEC and the SMT program. and the initiators from AMD and International SEMATECH agreed to co-chair the new council. 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. AMD’s partnerships with these two schools were motivated by: • AMD’s long-standing tradition and interest in the support of K-12 education. 4 the center for corporate citizenship at boston college . Through this program. By the fall of 1995. In total. The curriculum committee of the SEC worked quickly to develop a one-year certificate and a two-year Associate of Applied Science degree.000 to support K-12 education. • Desire to reach the disadvantaged youth from the economically depressed school communities. AMD was steadily engaged in local school-business partnerships.

Others involved with ACE’s development included the Capital Area Training Foundation (CATF) . AMD learned that Del Valle High School’s 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. By 1994. colleges and universities working together to create aware- the center for corporate citizenship at boston college 5 . Manager. We were talking with our high school partners about how we might enhance our partnership.AMD AMD recognized the direct connection between a strong educational system and the future success of the company. The program began in April 1995 with the following mission: ACE Mission Statement ACE is a coalition of semiconductor industry representatives. Allyson Peerman. As AMD began to explore ways to develop a home-grown workforce. AMD Through discussions with their school partners. relationships. AMD’s 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 AMD’s partnerships with these two local high schools. and commitment to quickly move forward in developing a comprehensive school-towork initiative to interest local youth in careers in semiconductor manufacturing. their long-term partnerships with Del Valle and Johnson high schools gave them the experience. AMD took the initiative to design the awareness program to expose high school students to careers in semiconductor manufacturing. Do things that would ultimately be a win-win for both of us. schools. go to the next level…make them more strategic. the two local school districts (Del Valle and Austin) and Austin Community College (ACC). Community Affairs. AMD wanted to develop a closer partnership with the schools.

While the SMT program was useful for workers already in the industry. AMD recognized the potential impact the ACE program could have on the entire industry and the school system.AMD 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. 3) provide relevancy/connection between the classroom and workplace. ACE Nights and site tours for parents and prospective students.” The program offers scholarships. 6 the center for corporate citizenship at boston college . • AMD’s desire to “do the right thing. • • Career awareness Educator development Work-based learning Industry-specific training STRATEGY Driving Forces for Program Development By 1995. and 4) provide students with a jump start on the post-secondary education needed to work in this highly skilled environment. • AMD’s need to recruit and retain a skilled workforce. These original goals have broadened over the past five years to include: • • Several driving forces influenced the development of the ACE program: • AMD’s partnerships with area schools and the desire to move them to the next level. summer workshops for teachers. However. As a result. 2) increase student awareness of high-tech career paths. the ACE program was folded under the SEC. • The establishment of a semiconductor curriculum at Austin Community College. 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. it soon became clear that a pipeline of high school graduates interested in semiconductor manufacturing was needed to introduce new workers to the industry. and teacher internships. • The City of Austin’s and Greater Austin Chamber of Commerce’s initiatives to provide the needed workforce to ensure the area’s continued economic growth and social equity. internships. AMD was working diligently to develop both the SMT and ACE programs.

Allyson Peerman. Manager. influencing other companies to adopt the program. AMD Though the ACE program is managed by AMD's community affairs. manufacturing operations. 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. His support gave weight to the program and promoted hiring interns in the department. CEO support According to Peerman.AMD To complete the linkage of the two programs. to promote the ACE program to other companies. support from top management and especially the CEO is critical to developing buy-in across the company. Community Affairs. it was important to overcome the barriers holding back each department from buying into the program. AMD used the intermediary organization. 1. the center for corporate citizenship at boston college 7 . Additionally. 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. This allowed a third party to motivate others to become involved based upon the program’s merit without it being branded as an AMD program. the company is quick to point out that the program’s success rests with the cross-functional support from others throughout AMD’s organization. Because each department played its own key role to ensure ACE’s success. human resources. Capital Area Training Foundation (CATF). AMD’s group vice president promoted the program among his peers in other organizations. These four different departments include community affairs. Although it was initially difficult to create buy-in across the company. AMD was able to overcome these barriers for two key reasons. support was essential because the program spanned several departments. and learning & development.

budget development. AMD understood the community’s need to have access to higher-paying jobs in the semiconductor business. Allyson Peerman was responsible for project planning. 3) Personal interest: each participant was motivated by one or all of the following: a desire to give back to the community. These first-year experiences bred internal champions who promoted the program within their respective departments. As the project leader. 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). AMD Community affairs at AMD was responsible for managing the ACE program. Through its partnerships with area schools. We were trying to ratchet up the whole focus of what had been called ‘adopt-a-school’ to a true business/education partnership. Allyson Peerman. AMD identified the possibility of expanding the educational opportunities for students to secure a college degree. their academic achievement or their overall success.’ 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. Starting as a “push” effort from community affairs to place interns. The emergence of internal champions Internal buy-in was also enhanced after the program’s first year when employee testimonials and success stories about students in the program and their mentoring experiences were voiced. a passion for youth. a desire to make a difference. 2) A clearly communicated vision and demonstrated support from company leadership (the champions). and coordinating the operation of the SEC and ACE Advisory Council. Through its community involvement. She also served as the primary liaison with the CATF and the Greater 8 the center for corporate citizenship at boston college . Community Affairs. Manager.AMD 2. not just ‘balloons and tee shirts. 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 wanted people to be engaged in strategic activities. the program soon became a “pull” effort in which employees began asking for more interns. at AMD recognizing a strategic opportunity.

The manufacturing operations staff “are the internal champions for the intern program. Employee recruitment. the manufacturing portion of AMD. They are the lifeblood of the program because they can make or break it by their interaction with the student interns. community affairs worked very closely with the recruitment staff and management to offer the center for corporate citizenship at boston college 9 . Community affairs had to address this valid concern if the program was to succeed. and the community and industry partnerships were instrumental in developing buy-in from the operations department. is responsible for identifying positions for interns. hiring interns. HUMAN RESOURCES COMMITMENT Gaining the support of the employee recruitment function was one of the most important tasks of the community affairs department. It was crucial to bring operations on board in order to find supervisors for the program’s interns and to contribute to program design. and providing instructions.” according to Peerman. the program’s success relies on senior management support and an informal. cross-functional team within AMD.AMD Austin Chamber of Commerce. Operations. They are also key players for the programs’ internal growth because they recruit other employees to become involved. Additionally. needs all of its resources to meet the pressing demand in a very tight labor market. Under these circumstances. MANUFACTURING OPERATIONS CHAMPIONS ACE The vice president of worldwide manufacturing’s unwavering support of and commitment to the ACE Program. assigning mentors. accountable for filling the large number of immediate vacancies with qualified employees. Under her supervision. The first step was to provide financial resources to assist in the staff expense required to support the intern program. In addition to strong project management. supervising. the SMT curriculum. it is difficult for the organization to commit limited resources to a program that is slow in getting results. community affairs managed the day-to-day operation of the initiative.

AMD support and to communicate the business value and successes of the program. Employee recruitment manages the recruitment. They also put together a summer institute for educators. hiring. The personal commitment to the program by employee recruiter Margie McKenzie generated an extra effort that has contributed significantly to the program’s success. The recruiter is also responsible for measuring the value of the program to the company by assessing placement. the director assisted in bringing the entire department on board. who is an AMD mentor. and placement of the ACE program interns. provides the expertise in curriculum development for ACE program teachers and students. She serves as the primary contact for both internal managers seeking employees and interns. The learning and development department. “They’ve been there from the beginning. solicits potential intern opportunities throughout the organization and coordinates intern interviews and placement throughout the company. 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. and for applicants seeking employment opportunities. A champion of the program from the beginning.” Employee recruitment plays a critical role in the operation of the ACE program within AMD. AMD’S 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. which is responsible for providing skills training for AMD employees. 10 the center for corporate citizenship at boston college .” said Peerman. “She explained the program to me and encouraged me to participate. “Margie’s drive and initiative has been a key element. That’s why I agreed to become a mentor.” said Facilities Department Manager Dennis Huddleston. The recruiter screens applicants. retention and performance for these new employees. “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 industry…They’ve had a number of people who have been adjunct professors at the community college.

and goals for the ACE program. the council was dissolved once the program was adopted by the SEC. Members represent a mix of competitors.AMD BUILDING AND SUSTAINING INTERNAL AND EXTERNAL RELATIONSHIPS: THE PARTNERS AMD’s contact and relationship with two area school districts prompted discussions. the ACE Advisory Council and the Capital Area Training Foundation. AMD has not only been a driver in the process. The council identified curriculum development. All are working together to develop a solution to the critical and universal industry need of securing and retaining a skilled workforce. urban district of Austin. which identified community needs and fostered a vision to address these needs through the development of the ACE program. the center for corporate citizenship at boston college 11 . The ACE Advisory Council served as a steering committee to guide the development of ACE. Three external organizations jointly support the ACE program: the Semiconductor Executive Council. and customers. The size difference of the two districts influenced the impact and evolution of the program. The Semiconductor Executive Council (SEC) is an excellent example of collaboration to accomplish a common objective. This cross-functional team established the vision. 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. faculty development. but drew on its own relationships and experience with community schools to inform and grow its work. it was the coordination and articulation of the various independent efforts that has contributed to building a regional workforce development initiative. 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. work-based learning and the quality of incoming and outgoing students as key elements of the program. Del Valle is a smaller. suppliers. Virtually every semiconductor manufacturing company in the Austin area is represented on the SEC. rural school district compared to the larger. student recruitment and retention. mission.

and improving the company’s license to operate. Community Impact The ACE program has provided value to the community by increasing job opportunities. securing higher levels of job training. nonprofit organization to promote the development of school-to-career initiatives. increasing access to human resources. What can be Replicated? When asked what lessons they learned regarding the implementation of the ACE program. 12 the center for corporate citizenship at boston college . Community stakeholders believe it adds value for the company in the areas of reducing cost for employee recruitment. The Semiconductor Manufacturing Technicians Advisory Council works with program stakeholders in curriculum development. and increasing employment levels and job placement.AMD The Capital Area Training Foundation (CATF) was created in April 1994 as a result of a recommendation from the Mayor’s Task Force on Apprenticeships and Career Pathways for Austin Youth. 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. It called for the formation of an industryled. CORPORATE AND COMMUNITY BENEFITS Corporate Value The ACE program is a long-term project that requires commitment and patience to realize its full impact. faculty development and student recruitment to ensure program quality at ACC. What was Learned. 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.

• Reduced the public and private funds committed to assist young people who fall through the cracks of the educational system.189 more than other graduating students. leadership. • Tech Prep students earned $3. Improved schools • Cash and in-kind gifts. • A bridge for students to access higher paying jobs. teacher training and curriculum development from area corporations. Increased opportunity. self-esteem and hope for students Reduced drop-out rate • Renewed interest in student coursework.AMD IMPACT ON THE COMMUNITY Low-income family assistance • Affordable educational opportunities for youth that low-income families could normally not afford. the center for corporate citizenship at boston college 13 . • Enhanced relevance of classroom instruction as teachers better understand the connections between their curriculum and the real world. 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. • 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. • Commitment and guidance from mentors inspires hope and self-esteem. or a total of $22 million a year. 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.

It is dedicated work and it cannot be completed overnight. This is not something we can turn on and off like a faucet. Reduced dependence on out-of-state recruitment 2. • Cooperate with Competitors Competing organizations can collaborate to address a common objective. Professional development for managers 9. AMD attempted to recruit other businesses to partner with. Enhanced relationships with partner high schools. To expand the ACE Program throughout Austin. but the presence of a neutral. project director for the Capital Area Education & Career Partnership. noncompetitive organization such as International SEMATECH makes that collaboration much easier. 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. Involvement from the beginning would have improved the process and speed of project development. visibility. was difficult.Enhanced reputation. Improved employee morale 8. Diversity in the workplace 7. “The great thing about AMD is that they have hung in there in good times and bad times. 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. local elected officials and stakeholders 10. community leaders.AMD • Gain Top Management Support Top management support is critical. • Get Stakeholders Involved Early Program managers at AMD recognized the need for collaboration. Solutions for workforce development require long-term strategies. Reduced recruitment expense 3. however. 14 the center for corporate citizenship at boston college . Reduced training expense 6. Increased local and national recognition Be prepared for the long term. support. Bringing these stakeholders on board after the program implementation. That is what we have to convince all of the employers to do.” said Bob Rutishauser. and brand awareness 11. • Think Long Term BUSINESS BENEFITS FOR AMD 1. That support gives the program credibility and encourages others to participate. and buy-in from other semiconductor industries if the program was to achieve its objectives. Increase in job applicants 4. Reduced new-hire turnover 5.

manager of community affairs at AMD in moving the project forward. Gary Heerssen.” Rutishauser said. The second was AMD’s head of learning and development (L&D). It was acknowledged by many that this important task would not be accomplished if it were not for her personal commitment to the program. His team took the initiative to develop a three-day summer institute for science. Find Champions. math and technology teachers that is used by other companies. He has personally mentored several students.” The collaboration empowered individuals to make significant commitments to the project. but three stood out.AMD • Collaborate. one L&D team member developed a hands-on exercise using Legos to replicate the semiconductor manufacturing process. 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. 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. In spite of this pressure. Many others pointed out the leadership and dedication of Allyson Peerman. but Gary Heerssen is the godfather. Additionally. “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. some simultaneously. One participant actually connected the two by saying: “Allyson Peerman is the champion. His extra commitment to the young people he works with is evident in his energetic discussion about each intern assignment. Many were involved. the center for corporate citizenship at boston college 15 . There is extreme pressure on company recruiters to fill positions during this period of very high demand. This activity is now available on a national basis. AMD’s recruiter agreed to manage the placement of student interns with departments throughout the company. is universally perceived as the external and internal business champion for innovative collaborative workforce development initiatives. group vice president of manufacturing at AMD. The first was AMD’s technical recruiter.

Industrial electronics high school courses have been 16 the center for corporate citizenship at boston college . With collaboration come both opportunity and challenge. This cannot be done alone. • 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. 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. 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. To create sustainable impact in community development a wide reach of resources and individuals need to be joined. • Partner. • Have a good working model/organization to make it happen. and International SEMATECH were each important to the program’s success. You have to have a unified effort. CATF. You need more than a vision. for no one group or corporation can do it alone. • Monitor and evaluate as you go along. AMD began to strategize ways to improve and build upon the ACE program. and an increasing level of transparency of corporate planning and need within the community. • Use Intermediary Organizations Intermediary organizations are critical to implementing complex projects and partnerships. SEC. especially with partnering organizations of different cultures. You need concrete strategies and a willingness to take action.AMD 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. A most fundamental shift is occurring now with the strategic plan in June [2000]. Make sure you have others involved in the process. enabling the resources of business and the community. • Have a clear focus of what has to be done. • Commit for the long term. It will take resources to make this happen. MOVING FORWARD: A NEW DIRECTION FOR THE ACE PROGRAM A 2000-2003 Strategic Plan In 2000. but to demonstrate an observation of the impact of the cross-functional involvement in the ACE program. The program will take a dedicated effort for years.

We need much broader outreach in terms of career awareness and marketing to students. growth in local assets and resources. the company. science. and increased problem-solving capacity. Not to do away with the course. Community Affairs NEW ACE PROGRAM VISION To ensure an annual yield of 1.AMD the primary focus up to this point. refined initiative was launched in April 2001. teachers. There will be less emphasis on that one course and more on broad career awareness. and parents. we are going to have to get beyond promoting courses.” This new. but with savings from reduced turnover. which had invested over $700. CONCLUSION These programs are still in their infancy. get them taking the right courses in math and science. Allyson Peerman. engineering and technology. Corporate Manager.000. And we need to start it earlier [before high school]. believes it has already met its break-even point. That’s the primary focus of the new plan. 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. The project sustainability ultimately rests on the key stakeholders’ commitment to the goal of providing the Austin semiconductor industry a trained workforce the center for corporate citizenship at boston college 17 .000-1. In order to get to critical mass. The programs have generated benefits for low-income communities in Austin as well. and AMD fully expects to see its investments in workforce development provide important returns. 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.200 area high school graduates who have electronics coursework and semiconductor/electronics experience. recruitment. but to get to a broader group of people. including increased job opportunities and well-paying career paths. while raising awareness of the semiconductor industry as a positive career choice. Over half of program graduates have been hired by AMD. and training costs.

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). 6) Continuous assessments and adjustment were made based upon stakeholder feedback and program results. 18 the center for corporate citizenship at boston college . schools. and program implementation.AMD SUCCESS FACTOR SUMMARY AMD’s ACE program is an excellent example of the power of collaboration to address critical business and community issues. to meet the growing need for manufacturing technicians. 4) Internal buy-in and involvement across several business departments within AMD. to manage partner culture differences. 3) Stakeholders were identified and true partnerships were established to ensure collaborative involvement in executive leadership. municipal and county officials. 2) AMD demonstrated leadership in developing solutions to resolve the problem and committing resources for the long term. and to drive the process. Achieving this longterm objective will require continued collaborative support from the semiconductor companies. and the community. the ACE and SMT programs have established a benchmark in business collaborations and partnerships for developing innovative workforce development strategies. 5) An intermediary organization to assist in facilitation. operating decisions. Regardless of this outcome. community college. AMD’s 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.

55 LEE ROAD • CHESTNUT HILL. The Center has created the skills and competencies for community relations practice.bc. Through its research. 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. consultation and convenings on issues of corporate citizenship. executive education.edu/corporatecitizenship .About The Center The Center for Corporate Citizenship at Boston College provides research.edu • www.4545 • FAX 617.552. Since 1985.8499 E-MAIL: ccc@bc. knowledge building and Certificate programs.552. MA 02467-3942 • PHONE 617.