5 Common Mistakes in SharePoint Document Management (And How to Avoid Them)

An effective document management system (DMS) is at the core of every successful organization, especially for IT-driven companies. SharePoint, one of Microsoft’s most popular tools, is known for its robust document management capabilities. However, without proper configuration and management, SharePoint can quickly become overwhelming, leading to disorganized file structures, compliance risks, and inefficiencies.

In this guide, we’ll explore five common mistakes businesses make when using SharePoint for document management and how IT managers, CIOs, and other IT professionals can avoid them. Whether you’re new to SharePoint or looking to improve your setup, this article offers practical advice to ensure a smooth and efficient document management experience.

The Mistake:
One of the most common issues businesses face in SharePoint document management is the failure to create a well-defined folder and file structure. Without a clear system for organizing files, SharePoint libraries can quickly become cluttered and chaotic, making it difficult for users to find the documents they need.

The Problem:
Disorganized file structures lead to inefficiencies, duplicated files, and wasted time searching for documents. It can also result in version control issues when employees don’t know which version of a document is the most up-to-date.

How to Avoid It:

• Create a Consistent Folder Structure: Define a logical, hierarchical folder structure for your organization that makes sense for your business processes. Use clear naming conventions for folders and files to make it easy for users to understand where specific documents should be stored.
• Limit Folder Depth: Avoid creating deeply nested folders, as this can make files difficult to locate. Instead, use custom metadata (more on this later) to improve searchability.
• Train Users: Ensure that all employees understand the folder structure and the importance of saving files in the correct locations. Regularly review the folder system and make adjustments as needed.

Pro Tip:
When possible, encourage the use of metadata and views in SharePoint rather than relying solely on a folder structure. Metadata can make it easier to categorize and locate files without having to navigate through complex folder hierarchies.

The Mistake:
Many organizations make the mistake of solely relying on folders to organize their documents in SharePoint. While folders may seem like the easiest way to structure files, they can limit the system’s full potential and make document search inefficient.

The Problem:
Folders don’t scale well as your document library grows. Users have to manually search through folder layers, which can be time-consuming. Additionally, documents stored in multiple folders can result in duplication and confusion.

How to Avoid It:

• Leverage Metadata: Instead of using folders, tag documents with custom metadata. Metadata allows users to categorize files by important attributes such as document type, department, project, or date.
• Use Views to Organize Files: SharePoint allows you to create custom views based on metadata tags. This lets users filter, sort, and group files in ways that are more flexible than a rigid folder structure.
• Train Users to Apply Metadata: Ensure employees understand how to tag documents with metadata when they upload files. This will help them adopt the practice and see its benefits.

Pro Tip:
By using metadata and custom views, you can reduce reliance on folders and make your document management system more scalable, flexible, and searchable.

The Mistake:
Improperly managing permissions in SharePoint can lead to unauthorized access to sensitive documents or, conversely, prevent key stakeholders from accessing the files they need.

The Problem:
SharePoint’s powerful permissions system allows for granular control over who can view, edit, and share documents. However, not setting up permissions correctly can expose your organization to security risks or lead to inefficiencies when employees can’t access the files they require

How to Avoid It:

• Use Permission Groups: Instead of assigning permissions on an individual basis, create permission groups based on roles or departments. This makes it easier to manage access as team members join or leave the organization.
• Apply the Principle of Least Privilege: Only give employees access to the documents they absolutely need to perform their job. This minimizes security risks and reduces the chance of accidental file deletions or changes.
• Regularly Audit Permissions: Schedule regular audits of your SharePoint permissions to ensure that access levels remain appropriate, especially as employees change roles or leave the company.

Pro Tip:
For especially sensitive documents, such as contracts or legal files, consider implementing Information Rights Management (IRM) in SharePoint, which adds another layer of security by controlling what users can do with a document (e.g., restricting the ability to print, forward, or download).

The Mistake:
Many organizations fail to take full advantage of SharePoint’s workflow automation features, relying on manual processes for document approvals, reviews, and notifications.

The Problem:
Manual document management processes are time-consuming and prone to errors. Without automation, employees may miss critical steps in document reviews, approvals may get delayed, and important notifications may be overlooked.

How to Avoid It:

• Automate Approvals: Use SharePoint’s Power Automate (formerly Microsoft Flow) to set up workflows for document approvals, routing files to the appropriate individuals automatically.
• Set Up Review Workflows: Ensure that documents requiring periodic reviews (e.g., compliance documents or contracts) are flagged for review at the appropriate times, with notifications sent to the relevant team members.
• Create Notification Triggers: Automate notifications to alert users when a document is modified or updated, ensuring that everyone stays on the same page.

Pro Tip:
Workflows not only save time but also create a clear audit trail, making it easier to track who has reviewed or approved a document and when.

The Mistake:
Another common pitfall in SharePoint document management is ignoring the built-in version control features, resulting in confusion over which document is the most recent.

The Problem:
Without proper version control, employees may end up working on outdated files, leading to inconsistent information and wasted time. In worst-case scenarios, important changes can be lost or overwritten.

How to Avoid It:

• Enable Versioning in Libraries: SharePoint allows you to enable versioning for document libraries, automatically saving new versions of a document every time it’s modified. This ensures that you can always revert to a previous version if needed.
• Limit Major Versions: You can configure SharePoint to only save major versions (e.g., when a significant change is made) or both major and minor versions. Limiting version numbers will prevent libraries from becoming bloated with too many old versions.
• Use Check-In/Check-Out Features: When working on sensitive documents, use SharePoint’s check-in/check-out features to ensure that only one person can edit the document at a time, preventing conflicting changes.

Pro Tip:
Train users on how to manage document versions effectively. Encourage employees to regularly review the version history to ensure they are always working on the latest version.

SharePoint is an incredibly powerful tool for document management, but like any system, it requires careful configuration and ongoing management to avoid common pitfalls. By implementing a well-structured folder system, leveraging metadata, managing permissions properly, automating workflows, and utilizing version control, your organization can significantly improve its document management processes.

By following these best practices, IT managers, CIOs, and other IT professionals can ensure that SharePoint not only streamlines document management but also enhances collaboration, improves compliance, and increases overall productivity.

If your organization is new to SharePoint, or if you’re looking to improve your current SharePoint setup, these tips can help you avoid common mistakes and maximize the platform’s potential.