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Aligning Corporate Performance with Community

Economic Development to Achieve Win-Win Impacts

CASE STUDY: ADVANCED MICRO DEVICES (AMD)

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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 busi-

nesses, 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 organization-

wide 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 develop-

ment. The companies and the main initiatives investigated are:

Advanced Micro Devices (AMD)AMD has helped drive a win-win workforce development initia-

tive 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 prod-

ucts, allowing for alternative financing for affordable housing, small businesses, and community-

based 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 pro-

gram 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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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

t h e c e n t e r f o r c o r p o r a t e c i t i z e n s h i p a t b o s t o n c o l l e g e 1

Advanced Micro Devices (AMD)


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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 work-

force. Expensive out-of-town recruitment costs and high turnover rates prompt-

ed AMD to act. The company took a leadership role in mobilizing a public-pri-

vate 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 ini-

tiative 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 pro-gram 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

Creating Strong Communities and Businesses through

Regional Workforce Development Partnerships


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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 well-

paying career paths, growth in local assets and resources, and increased prob-

lem-solving capacity.

The ACE and SMT programs have established a benchmark in business collab-

orations 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 sus-

tainable 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 SEMATECH1

, 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 home-

grown workforce by collaborating with the local community college. The idea

was to establish a semiconductor curriculum to provide training for local resi-

dents who wanted to prepare for technician jobs. The program would simulta-

neously solve two of Austins most pressing problems: 1) a critical shortage of

1

Established in 1987, International SEMATECH is a non-profit technology development consortium ofsemiconductor manufacturers. The organizations mission is to provide a competitive advantage forUS semiconductor companies by cooperative leadership in developing manufacturing technologies.Located in Austin, the research facility serves as a proving ground for innovative semiconductor manu-facturing processes. AMD has been an active member of International SEMATECH.

AMD



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 col-

lege. ACC asked International SEMATECH and AMD to establish a committee

of industry leaders to work with the college to support the development of thenew 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 pro-

gram at Austin Community College. Top executives from semiconductor busi-

nesses 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 cer-

tificate 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 work-

ing 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 manu-

facturing facilities.

Desire to reach the disadvantaged youth from the economically depressed

school communities.

AMD



AMD recognized the direct connection between a strong educational system

and the future success of the company. By 1994, AMD wanted to develop a clos-

er 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 forboth 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 rela-

tionships 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-to-

work initiative to interest local youth in careers in semiconductor manufactur-

ing. 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-

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 fabrica-

tion technicians, 2) increase student awareness of high-tech career paths, 3) pro-

vide relevancy/connection between the classroom and workplace, and 4) providestudents 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:

Career awareness

Educator development

Work-based learning

Industry-specific training

The program offers scholarships, internships, ACE Nights

and site tours for parents and prospective students, summer

workshops for teachers, and teacher internships.

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 pro-

gram 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.

Several driving forces influenced the develop-

ment of the ACE program:

AMDs partnerships with area schools and

the desire to move them to the next level.

The establishment of a semiconductor cur-

riculum at Austin Community College.

The City of Austins and Greater Austin

Chamber of Commerces initiatives to pro-

vide 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.

AMD



To complete the linkage of the two programs, AMD used the intermediary orga-

nization, Capital Area Training Foundation (CATF), to promote the ACE pro-

gram 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 pro-

gram 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.


Though the ACE program is managed by AMD's community affairs, the com-

pany is quick to point out that the programs success rests with the cross-func-

tional 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 depart-

ments 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 pro-

gram champion within AMD. His support gave weight to the program and

promoted hiring interns in the department.

AMD



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

at AMD recognizing a strategic opportunity. Through its com-

munity 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 oppor-

tunities 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 part-

nership with a school and you are doing meaningful work to impactstudents, their academic achievement or their overall success.


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

AMD employees report the following factors ascontributing to the initiatives success:

1) A clearly defined corporate need that eachbusiness unit understood (securing andretaining qualified employees).

2) A clearly communicated vision and demon-

strated support from company leadership(the champions).

3) Personal interest: each participant was moti-vated by one or all of the following:a desire to give back to the community, apassion for youth, a desire to make adifference.

AMD



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 pro-

viding instructions. The manufacturing operations staff are the internal cham-

pions 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 stu-

dent 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 organiza-

tion 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 suc-

ceed. 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

AMD



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 pro-

grams 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 place-

ment 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 pri-

mary 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 depart-

ment on board.

The learning and development department, which is responsible for providing

skills training for AMD employees, provides the expertise in curriculum develop-

ment for ACE program teachers and students. Staff members serve as instruc-

tors 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 col-

lege. They also put together a summer institute for educators.

AMD



BUILDING AND SUSTAINING INTERNAL AND EXTERNAL

RELATIONSHIPS: THE PARTNERS

AMDs contact and relationship with two area school districts prompted discus-

sions, 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 com-

pared 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 collabora-

tion to accomplish a common objective. Members represent a mix of competi-

tors, 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 develop-

ment 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 pro-

gram. the council was dissolved once the program was adopted by the SEC.

AMD



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 industry-

led, nonprofit organization to promote the development of school-to-career ini-

tiatives. 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 enroll-

ment in the SMT and ACE programs.

The Semiconductor Manufacturing Technicians Advisory Council works with pro-

gram stakeholders in curriculum development, faculty development and student

recruitment to ensure program quality at ACC.

CORPORATE AND COMMUNITY BENEFITS

Corporate ValueThe 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 oppor-

tunities, securing higher levels of job training, and increasing employment lev-

els 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.

AMD



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, Renewed interest in student coursework.

self-esteem and hope for Commitment and guidance from mentors inspires hope

students and self-esteem.

Reduced drop-out rate The drop-out rate for students in career pathway programs appears to beabout 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 Favorable responses by parents of students enrolled in the program.

Increased student employability Tech Prep students earned $3,189 more than other graduating students, or

and community prosperity a total of $22 million a year.

Professional development Enhanced relevance of classroom instruction as teachers better understand the

for teachers connections between their curriculum and the real world.

Increased impact on Reduced the public and private funds committed to assist young people who

community improvement fall through the cracks of the educational system.

IMPACT ON THE COMMUNITY

AMD



Gain Top Management Support

Top management support is critical. That support gives the program credibility

and encourages others to participate.

Think Long Term

Be prepared for the long term. Solutions for work-

force development require long-term strategies. It isdedicated 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 acommon objective, but the presence of a neutral, non-

competitive 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 indus-

try-wide workforce initiative was critical because no individual company could

successfully carry out such a project on its own. The significance of the collabo-

ration was that each company recognized that the long-term nature of the pro-

gram depended on their involvement in time and money. Bringing these stake-

holders on board after the program implementation, however, was difficult.

Involvement from the beginning would have improved the process and speed of

project development.

AMD

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 stake-holders

10.Enhanced reputation, visibility, and brand awareness

11. Increased local and national recognition



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 collab-

orative workforce development initiatives. Many others pointed out the leader-

ship 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 godfa-

ther. The collaboration empowered individuals to make significant commit-

ments to the project. Many were involved, but three stood out.

The first was AMDs technical recruiter. There is extreme pressure on companyrecruiters 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 semi-

conductor 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 commit-

ment to the young people he works with is evident in his energetic discussion

about each intern assignment.

AMD



These three individuals are not mentioned to the exclu-

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 implementingcomplex projects and partnerships, especially with part-

nering 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 cor-

poration 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 expe-

rience and personal interaction. Findings in the studies

such as the Austin Projectand 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

KEY ELEMENTS OF PROGRAM SUCCESS

Heerssen offers the following suggestions for a suc-cessful program:

Demonstrate commitment real commitmentwith the contribution of time, people and money. It

will take resources to make this happen.

Commit for the long term. The program will take adedicated effort for years.

Have a clear focus of what has to be done. Youneed more than a vision. You need concrete strate-gies and a willingness to take action.

Partner. Make sure you have others involved in theprocess. This cannot be done alone. You have tohave a unified effort, enabling the resources ofbusiness and the community.

Have a good working model/organization to makeit happen.

Monitor and evaluate as you go along.

These suggestions are applicable for corporateinvolvement in a broad spectrum of concerns thatboth include and go beyond low-to-moderate incomeissues.

AMD



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 market-

ing to students, teachers, and parents. And we need to start it ear-

lier [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 capa-

ble of pursuing college and/or careers in the areas of math, science, engineer-

ing 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 pro-

gram graduates have been hired by AMD, and AMD fully expects to see its

investments in workforce development provide important returns. The pro-

grams 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

AMD



to meet the growing need for manufacturing technicians. Achieving this long-

term objective will require continued collaborative support from the semicon-

ductor 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 innova-

tive workforce development strategies. AMDs involvement in developing work-

force 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.

AMD

SUCCESS FACTOR SUMMARY

AMDs ACE program is an excellent example of the power of collaboration to address critical business and communityissues. 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 thelong term.

3) Stakeholders were identified and true partnerships were established to ensure collaborative involvement in execu-tive 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 theprocess.

6) Continuous assessments and adjustment were made based upon stakeholder feedback and program results.


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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 com-

munity relations practice. Through its research, knowledge building and

Certificate programs, The Center helps corporations rethink their role inthe community. Its mission is to provide leadership in establishing corpo-

rate citizenship as a business essential so that all companies act as eco-

nomic and social assets to the communities they impact by integrating

social interests with other core business objectives.

all bcccc 2001 advanced micro devices

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