What is contract management?
According to CATS CM®, contract management is the realization of intended contract objectives by proactively monitoring the fulfillment of all contractually established responsibilities, obligations, procedures, agreements, conditions and rates. This includes, resolving all ambiguities, contradictions and white spaces, managing all contract-related risks, as well as implementing all desired changes to the contract during the execution phase.
The CATS CM® approach provides a best practice contract management methodology that links operational execution directly to strategic outcomes by placing contract objectives at the center of contract management. Figure 1 below, from the CATS CM® methodology, illustrates the relationship between organizational goals, contract objectives, and contract performance.
Every organization has a mission and a vision that stipulates how it creates value and operates within laws and regulations. They translate into organizational goals. When a contract is put in place, organizational goals turn into contract objectives. To manage them effectively, contracts must translate objectives into measurable performance indicators and ensure that these are clearly reflected in the contract.
This means two things:
- Every objective must be known, preferably written down, and supported by measurable performance.
- Every performance indicator or contractual provision should serve a clear purpose in achieving one or more objectives.
By safeguarding this alignment, it is ensured contract execution supports the organization’s broader goals and delivers the intended results. This focus on objectives is what makes CATS CM® both structured and strategic, and why it has become a recognized standard in the field of contract management.
The hidden power of contract data
None of this is possible without contract data: the essential information that captures the content, context, and performance of agreements. Contract data fuels decision-making, supports compliance, and enables organizations to anticipate and adapt to change. When well-managed it even supports informed business navigation and drives operational excellence.
Despite its importance, contract data often remains unused or neglected. Many organizations collect enormous amounts of information but fail to translate it into actionable insights. That is why we have created this blog series: to explore how to unlock the hidden superpower of contract data and transform it into a main driver of success.
What to expect in this series
Coming up in the weeks ahead is a three-part blog series that explores the world of contract data:
Part 1 The Cornerstone: Why contract data matters and how to build awareness.
Part 2 The Value: How structured contract data management creates value; operationally and strategically
Part 3 The Practice: How to make contract data management sustainable and future-proof.
Each article provides real-world insights, plausible examples, and actionable steps you can use right away in your own work. Whether you are an experienced contract professional, or just introduced to this wonderful field, this series is for you: it will help you strengthen your foundation and expand your impact.
About the authors
Kelly Lyng Ludvigsen and Linda Tonkes are contract management professionals with experience in transforming contract processes through data-driven insights. Kelly focuses on bridging the gap between operational execution and strategic business value, while Linda, Author, and Chief Wizard at CATS CM®, brings deep expertise in the CATS CM® methodology and the art of making contract management both practical and powerful.
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