Contract management with CATS CM® version 4: From working on contracts to contracts that work
Contract management CATS® in 3 minutes
The basics
CATS CM® exists since 2005 and has evolved into the ultimate best practice contract management (CM) methodology. Thousands of professionals and organizations follow this standard. CATS stands for Contract Administration and Tracking Scenarios. In contract management, the focus is on achieving the intended contract objectives, which reflect everything an organization aims to achieve with the contract, aligning with its mission, vision, and legal regulations.
Figure: The relationship between organizational goals, contract objectives and contract performance
CATS CM® enables organizations to proactively manage contracts to optimize the realization of objectives. This is achieved by monitoring compliance with agreements, resolving uncertainties in a timely manner, managing risks, and, when necessary and possible, implementing desired changes in agreements. The CATS CM® methodology is suitable for both clients and suppliers.
In today’s business environment, and in the public sector, organizations operate in a complex business ecosystem that is governed by a multitude of contracts that come with their own set of objectives, benefits and risks.
CATS CM® offers a structured and scalable approach to contract management. It outlines the core principles, defines roles, and addresses key challenges for contract managers, providing clear guidance on effective practices. Additionally, it equips organizations with practical tools to implement contract management at both the policy and process levels.
Summary
proactively monitoring the fulfillment of all contractually established responsibilities, obligations, procedures, agreements, conditions and rates, resolving all ambiguities, contradictions and white spaces, managing all contract-related risks, and implementing all desired changes to the contract, during the execution phase.
CATS CM® serves as a best-practice framework, encompassing all activities required for effective contract management in the post-award phase of the contract lifecycle. Additionally, it establishes a foundation for determining the appropriate involvement during the pre-award phase of the lifecycle.
To translate the purpose and principles of CM into actionable steps, CATS CM® introduces four pillars. These pillars provide clear and practical guidelines for defining and executing roles and responsibilities effectively. The roles involved are illustrated in the figure below.
Figure: The roles that arise around the contract
Dividing the domain of contract management into smaller focus areas, Contract Management Essentials, allows users to scale their efforts and tailor their approach to the specific needs of a contract and the capabilities of the organization.
Figure: The 10 CM Essentials
Target audience
CATS CM® is designed for individuals, departments, and organizations aiming to maximize the added value of contracts in an efficient and effective manner. As such, this book is particularly relevant for:
• CM involved in the day-to-day management of contracts on both the buyer’s and seller’s sides of organizations.
• Managers of contract management departments, responsible for overseeing contract management activities.
• Professionals involved in the pre-award phase of contracts (e.g., sales and procurement professionals) tasked with creating manageable and effective contracts.
• Service and project managers, who rely on contracts to deliver outcomes in their areas of responsibility.
• Contract owners, accountable for achieving the objectives tied to specific contracts.
• Process owners, CLM-system suppliers, and consultants responsible for designing, optimizing, automating, and implementing contract management processes.
Scope and constraints
CATS CM® focuses on managing and optimizing contracts during the contract execution phase. It considers all direct stakeholders of a contract and is specifically tailored for business-to-business contracts. While it can be partially applied to managing individual or small sets of contracts, its greatest value is realized when implemented across departments or organization-wide.
CATS CM® complements several globally recognized standards for project management and service management. This relationship is further elaborated in the CATS RVM® methodology, which provides a detailed framework for linking existing service and project management methodologies with contract management practices based on CATS CM®.