This guide is intended to explain the types of partnerships that business can form with education to prepare students to enter and make a successful adjustment to the demands of the workplace. The first chapter discusses the consequences for business of an ill-prepared work force and examines the issues of the quantity and quality of workers, with special attention to the problems posed by the dwindling entry-level work force and the increasing mismatch between workplace needs and worker skills. The return on business investment in education (including development of a literate and better-trained work force, a better business climate in the community, and a better national competitive edge in the global marketplace) are examined next. The third chapter, which is a case study in the development of a business-education partnership, outlines the history, outcomes, and lessons learned from the Boston Compact (a school-business partnership that was formed to improve attendance, reduce the dropout rate, improve performance levels, and increase college and job placement rates among students enrolled in Boston's public schools). Multilevel partnerships as well as partnerships in policy, systemic educational improvement, management, teacher training and development, the classroom, and special services are explained. Assessing community needs and building a school-business partnership are the focus of the final chapter. Appendixes include selected partnership profiles, an index of programs referred to, and selected references and lists of associations and organizations. (MN)