AMR Research, IBM, and Kronos(R) Provide Window into Future of Workforce Management; Demand-Driven Workforce Management Session Overflows with Executives at KronosWorks(TM).

LAS VEGAS -- Yesterday at KronosWorks(TM), an energized room full of manufacturing, retail, and healthcare executives learned first-hand how to reduce costs and optimize business performance by aligning their workforce with business drivers. During the session, attendees heard from experts as well as shared ideas, information, and best practices with their peers. KronosWorks, the industry's largest conference dedicated to workforce management, is being held this week in Las Vegas.

Attendees joined AMR Research, IBM, and Kronos(R) Incorporated (Nasdaq: KRON) for this interactive executive panel discussion titled "Demand-Driven: The Future of Workforce Management". The panel of experts featured:

--AMR Research, David Caruso -- Caruso is a recognized veteran in the enterprise software industry who brings more than 30 years of experience to his position of vice president of industry research. In this role, Caruso drives the firm's research agenda.

--IBM, Harold Blake -- As director of workforce optimization with IBM, Blake's charter is helping transform IBM from an asset-based company into a labor-based company. Blake has been with IBM since 1977, serving in various roles including director of supply chain management.

--Kronos, Jim Kizielewicz -- As vice president of corporate strategy, Kizielewicz plays an integral role in the definition and execution of Kronos' strategic direction. He is charged with spearheading key initiatives that support Kronos' continued growth.

Thought-provoking discussion

Caruso framed the session by discussing AMR Research's Demand-Driven Supply Networks research and the impact of globalization on the workforce. Once Caruso set the stage, Kizielewicz discussed how Demand-Driven Workforce Management can help organizations align the workforce with peaks and valleys in customer demand. He demonstrated how Demand-Driven Workforce Management eradicates the challenges of a "not-in-time" or "just-in-case" workforce and helps organizations achieve the cost savings and performance advantages of a "just-in-time" workforce.

Blake concluded the session by discussing how IBM achieved a demand-driven workforce by optimizing talent and skills across all business units worldwide. Blake also shared how this workforce management initiative has helped IBM significantly improve rebalancing of skills; speed up staffing of growth areas; quickly adapt to business ups and downs; and has already resulted in more than $1 billion in cash savings.

Executives cite demand-driven workforce management as a top priority

During the interactive panel discussion, the audience responded to a series of polling questions. Attendees pointed to an increasingly acute need to apply supply chain principles to achieve alignment of the workforce with business drivers. Ninety-four percent of attendees stated that their frontline managers are not able to effectively adjust the workforce to meet demand fluctuations. In addition, they identified leading factors that contribute to the challenge of adjusting the workforce to meet demand as lack of cross-functional processes/systems and current demand information as well as frequent demand fluctuations. However, demonstrating that aligning the workforce with business drivers is a top priority for executives, the majority of attendees are currently or actively working toward creating a cross-functional, demand-driven environment.

About Kronos Incorporated

Kronos Incorporated is the most trusted name in workforce management. Kronos helps organizations staff, develop, deploy, track, and reward their workforce, resulting in reduced costs, increased productivity, better decision-making, improved employee satisfaction, and alignment with organizational objectives. More than 20 million people use a Kronos solution every day. Learn more about Kronos' high-impact enterprise solutions at www.kronos.com.

(C) 2005 Kronos Incorporated. Kronos and the Kronos logo are registered trademarks and KronosWorks is a trademark of Kronos Incorporated or a related company. All other product and company names mentioned are used for identification purposes only and may be trademarks of their respective owners.