This handbook, which is intended for individuals involved in program evaluation and improvement at British further education (FE) colleges, contains strategies and materials to help colleges work with industry to make their programs better able to build the skills and knowledge of their local communities. The first two sections offer rationales for making FE more responsive to the training needs of local business and industry and conducting a program audit. Presented in section 3 are 17 case studies that illustrate innovative programs and practices designed to establish/improve links between FE and business/industry and making FE programming more accessible and responsive to local employers. Section 4 lists key points for FE colleges regarding the following: managing the school-business interface; partnerships; flexibility and responsiveness; staffing; curriculum development; and National Vocational Qualifications development. The process of conducting an industry links audit and potential benefits of such audits are examined in section 5. The last section of the handbook is a 14-page audit tool to help FE colleges working with industry assess the following aspects of program development/improvement: strategic planning/policy development; management and coordination; marketing; image/ethos; curriculum planning, design, and delivery; monitoring and evaluation; resources; and costing/pricing and finance. (MN)