In the previous, 2nd blog The Value: How Structured Contract Data Management Creates Value; Operationally and Strategically – CATS CM® Contract Management Methodology , we explored the tangible benefits of contract data management (CDM) from operational efficiency to strategic advantage. In this final part of the series, we look ahead: how can organizations make CDM sustainable, future-proof, and ready to evolve with modern technologies, and expectations?
Efficiency and Effectiveness
Management consultant Peter Drucker once said, “Efficiency is doing things right; effectiveness is doing the right things.” This distinction perfectly captures the essence of CDM. Collecting data efficiently is one thing, but understanding what to collect, why it matters, and how to use it effectively is where true value emerges.
Contract managers who master this balance transform raw data into actionable insights that strengthen their organization’s agility, transparency, and decision-making power.
Ownership and Collaboration
External stakeholder relations play a pivotal role in sustainable CDM. Questions about who owns and maintains contract data can create tension, especially in long-term or complex partnerships internally or externally where multiple parties contribute to a shared set of obligations.
Unstructured or ‘shadow data’, such as meeting minutes, emails, or service level results, often lives outside formal systems. This information is extremely relevant in complex contractual relationships considering necessary actions and the different stages during contractual lifecycles. To maintain clarity and accountability, organizations should consider including clauses in their contracts that explicitly define how and what contract data must be shared and maintained throughout the lifecycle. This must of course fit the roles and process possibilities for the individual organization.
Beyond formal clauses, regular collaboration between stakeholders through workshops or structured exchanges, build transparency and trust. When all parties understand not only their obligations but also the importance of consistent data, CDM evolves from a compliance exercise into a shared business enabler.
The Risk of Down-prioritizing Contract Data
Neglecting contract data can have profound consequences. When different parties interpret or record contract data inconsistently, even something as simple as an expiration date, confusion, misalignment, and risk follow.
In today’s complex business environment, expectations for transparency and accountability continue to grow. Timely and proactive contract risk management is no longer optional; it is a strategic imperative. Mismanaged or incomplete data can slow responses and expose organizations to unnecessary risk.
At the same time, the “better safe than sorry” approach can backfire. Over-collecting contract data without structure or automation often overwhelms contract managers with repetitive tasks. Streamlining processes, leveraging automation, and prioritizing relevance over volume help organizations avoid data fatigue, allowing professionals to focus on insight, not just input.
Finding the balance in what data must be collected and registered, and what data must be neglected is a fine individual line. This must be customized to individual organizational needs and demands contract managers’ understanding of the outcomes resulted by the dynamics of the contract data collected. Using a one-size-fits-all solution will not create high level value.
Data Quality and Innovation
Sustainable CDM starts with data quality, guided by the three V’s: Volume, Variety, and Veracity, explained in our previous blog. Maintaining a balanced dataset, ensuring standardization across contract types, and securing the accuracy of information all remain foundational principles.
Looking ahead, AI and automation offer new possibilities for CDM. From identifying patterns across portfolios to predicting risks before they occur. However, these technologies will only be as strong as the data that feeds them, given that sustainable contract data is vital for both current and future AI solutions. Equally important is the thoughtful integration of legacy data, which ensures historical knowledge remains accessible and relevant in an evolving digital landscape.
A Closing Reflection
The future of contract management is both digital and human. Technology can help us collect, analyze, and share data more effectively. But human factors in prioritizing, creating awareness, collaboration, and ownership will always determine how well we use it.
By embedding CDM into organizational culture and aligning it with strategic goals, contract managers can ensure that data serves as a sustainable source of insight and value for years to come. That is not just good contract management, it is good business!
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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