LWSN Lawson Software, Inc. (MM)

76 Percent of HR Leaders Surveyed View Talent Management Important to Their Jobs; However, Two-thirds of Respondents Do Not Currently Use a Performance Management Tool Performance management functionality ranks as the highest priority for HR system enhancements, according to a survey of 318 human resources professionals sponsored by Lawson Software (Nasdaq:LWSN). Performance Management, which includes talent management, ranked ahead of payroll, time and attendance, benefits administration, online recruiting and regulatory compliance. Lawson announced the results at the 58th Annual Society of Human Resources Management (SHRM) conference in Washington, D.C. The survey, conducted by Whitney Worldwide Inc., also showed that nearly seven of 10 respondents currently do not use any performance management product. Furthermore, 44 percent of the respondents from companies with more than 5,000 employees said they have a "poor" performance management system, and 30 percent don't have any system. However, 42 percent of respondents view talent management among the most critical aspects of their job. In fact, according to research firm Gartner, Inc., Employee Performance Management (EPM) is one of the fastest-growing segments of the human capital management (HCM) software market. Studies have shown that business performance improves when there are strong EPM practices, and EPM software is an important enabler of these practices. ("MarketScope for Employee Performance Management Software, 2005," Aug. 30, 2005, James Holincheck). However, more than one-third of the HR leaders surveyed said that while their human resources department was concerned about talent management, their organization was not concerned. "Many organizations are increasingly challenged to hire, develop and retain quality employees, but often lack a foundational system to measure and manage employee performance," said Larry Dunivan, vice president, Human Capital Management, Lawson Software. "Organizations are just beginning to realize the value of performance management tools. These systems help managers move away from transactional review processes, and provide leaders with more objective and actionable employee data to align employee performance with organizational results. These systems can help drive compensation, succession management, training and development and more." "Clients want the efficiency of a solid technology platform, but they need more," said R.J. Heckman, vice president of talent management products for Personnel Decisions International (PDI). "The marketplace is demanding a direct linkage between human capital management and organizational results. This is absolutely the next step in the evolution of our industry." The survey also showed that the performance management vendor market is fragmented. Of the 30 percent of companies with a performance management provider, 32 percent have an in-house solution. Only one vendor was used by more than 10 percent of respondents. About the Survey Whitney Worldwide Inc. (WWI) conducted a lead-generation survey in April 2006 of 318 HR vice presidents, managers and directors at organizations using Lawson Software enterprise resource planning (ERP) and/or Human Capital Management software applications. Eighty-two percent of the organizations surveyed had 1,000 employees or more, with 34 percent of the companies having more than 5,000 employees. Survey participants responded to the direct mail survey via an online format, postage-paid business reply envelope or fax. About Lawson Software Lawson Software provides software and service solutions to 4,000 customers in manufacturing, distribution, maintenance and service sector industries across 40 countries. Lawson's solutions include Enterprise Performance Management, Supply Chain Management, Enterprise Resource Planning, Customer Relationship Management, Manufacturing Resource Planning, Enterprise Asset Management and industry-tailored applications. Lawson solutions assist customers in simplifying their businesses or organizations by helping them streamline processes, reduce costs and enhance business or operational performance. Lawson is headquartered in St. Paul, Minn., and has offices around the world. Visit Lawson online at www.lawson.com. Forward-Looking Statements This press release contains forward-looking statements that contain risks and uncertainties. These forward-looking statements contain statements of intent, belief or current expectations of Lawson Software and its management. Such forward-looking statements are not guarantees of future results and involve risks and uncertainties that may cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company is not obligated to update forward-looking statements based on circumstances or events that occur in the future. Risks and uncertainties that may cause such differences include but are not limited to: uncertainties in Lawson's ability to realize synergies and revenue opportunities anticipated from the Intentia International acquisition; uncertainties in the software industry; global military conflicts; terrorist attacks; pandemics, and any future events in response to these developments; changes in conditions in the company's targeted industries; increased competition and other risk factors listed in the company's most recent Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission and as included in Lawson Holding's Form S-4 Proxy Statement/Prospectus filed with the Commission.