SharePoint File Management: An M365 Admin’s Essential Guide

Life as a Microsoft 365 admin is a constant balance of user efficiency, data security, and compliance. File management is at the heart of this balance, and SharePoint stands out as a robust platform designed specifically for handling this data. Understanding how to best leverage SharePoint can both boost productivity and enhance organizational data governance. So let's take a look and see how you can get the most out of SharePoint's file management capabilities.

Understanding SharePoint’s Strengths

At its core, SharePoint serves as much more than a traditional network drive or simple file storage. It's a comprehensive data management platform that integrates files, intranets, lists, automation, and custom applications. Unlike simpler storage solutions, SharePoint is built to handle complex business environments where multiple team members collaboratively access, edit, and manage content.

Efficient File Management with Properties in Document Libraries

Folders aren't the only way to organize and manage your files in SharePoint.

Document libraries are SharePoint’s primary means of storing and managing files. Offering more than just basic file storage capabilities, document libraries empower admins and end users with robust metadata, permissions management, and automation.

You can add custom properties (fields) to your document libraries, such as a Choice field for tracking the status on file, Date fields for tracking start/end dates, and the People field for tracking assignments and ownership of content.

This helps teams categorize, locate, and manage their files efficiently. For instance, adding a "status" metadata column with values like “Not Started,” “In Progress,” or “Completed” can significantly streamline project management.

Leveraging Automation

Automation capabilities like alerts and rules add another layer of utility and efficiency. Admins can configure SharePoint to notify team members about new files, changes to properties and more. This functionality minimizes manual monitoring, reduces administrative overhead—and can help decrease admin task time and speed issue resolution.

Automation can be expanded with Power Automate to create more complex workflows that meet the needs of your business.

Learn more about collaborative file management in on-demand webinar, How to Leverage SharePoint to Get the Most Out of Microsoft Teams

Permissions and Security Management

Proper permissions management is crucial to ensuring secure and compliant file sharing. SharePoint’s security settings enable precise control over who can access and edit files, protecting sensitive information without blocking necessary collaboration. SharePoint supports detailed permission settings so admins can set access levels appropriately, in turn reducing risks associated with accidental data exposure.

SharePoint Sites: Private vs. Public

SharePoint sites can generally be classified as either private or public. Public SharePoint sites are discoverable by all members of the organization and can be freely joined without authentication. These sites are ideal for intranet spaces or any other areas where content should be readily accessible to staff. Furthermore, public sites are included in Microsoft 365 searches and Copilot queries, facilitating ease of discovery and accessibility.

On the other hand, private SharePoint sites are visible only to users who have specifically been invited or added. These sites are particularly useful for departments, project teams, and various functional groups. In practice, most workspaces within an organization tend to be private due to the sensitive and collaborative nature of the content involved.

When managing permissions in SharePoint, best practices suggest managing at the site or group level, leveraging role-based permissions. For Team sites, it is recommended to utilize Microsoft 365 Group-level permissions, including Owner, Member, and Guest roles. Since Team sites are designed primarily for collaboration, all roles in these contexts are editor roles.

SharePoint Communication Sites: Group Roles

Communication sites, however, are slightly different. These sites typically benefit from using SharePoint Group roles, which include Owner, Member, and Visitor. In this scenario, Owner and Member roles are assigned editor permissions, suitable for a limited number of users tasked with managing the site and its content. The Visitor role is read-only, making it perfect for intranet sites, where most users should not have editing privileges.

Administrators are advised against managing permissions at the folder or item level, as this practice can quickly become cumbersome and difficult to maintain. Instead, leveraging role-based permissions at broader levels ensures easier and more effective permission management.

Learn how to fix common issues with SharePoint permission groups, user access, and oversharing.

Sharing Links

Share links provide additional flexibility, allowing users to collaborate with individuals who might not be included in the standard site or group-level permissions. However, educating end users on the different types of share link settings and their appropriate usage is critical. Administrators have the ability to restrict and control the types of share links available at the tenant level and also define default link types. One recommended default is "People with Existing Access," ensuring that shared links don't inadvertently broaden access beyond intended users.

Sensitivity Labels

These offer another layer of security, enabling stringent protection policies to be consistently applied, especially for highly confidential content. These labels can be assigned to individual pieces of content or applied broadly to entire sites, effectively safeguarding information from unintended sharing.

Learn more about common SharePoint permissions mistakes and how to avoid them.

Enhancing Productivity with Shortcuts and Sync

While SharePoint's file management capabilities are powerful, its browser-based interface may not gibe with the way your people work. Some need to access data through Windows File Explorer or macOS Finder.

The OneDrive sync app allows users to access both OneDrive and SharePoint files from their desktops, even if they're offline. However, syncing files can cause headaches for both you and your end users if best practices aren't followed.

Here are a few things to keep in mind: It's important to avoid syncing too much content to your local devices, particularly large OneDrive accounts or document libraries with more than 300,000 items. Rather than syncing entire document libraries, use the "Add Shortcut" feature in SharePoint document libraries to sync only the specific files and folders you need. Doing so will avoid system performance issues and sync errors. These shortcuts conveniently sync alongside other OneDrive content. In addition, avoid creating deeply nested folder structures, which conflict with SharePoint and OneDrive's strict file path length limitations. A flat file architecture is ideal, as it enhances M365 search effectiveness, improves Copilot responses, and optimizes OneDrive sync performance.

Why Choose SharePoint for Group Collaboration?

While OneDrive caters to individual file storage, SharePoint excels in team-based environments. It’s the ideal platform for files that multiple people or departments frequently use, especially when the content needs to outlast any single individual's tenure at the organization. Unlike individual-centric storage, files stored in SharePoint remain accessible even when team members leave, maintaining continuity and operational stability.

Need a better way to manage your personal work files? Learn how to organize, share, and secure content with OneDrive file management best practices.

Optimizing Your SharePoint Experience

For the best results, M365 admins should encourage teams to use SharePoint document libraries for shared, ongoing work. Within SharePoint, using metadata effectively, configuring notifications and rules, and ensuring proper permissions are all essential. And to give users more flexibility, encourage them to take advantage of shortcuts in OneDrive to manage frequently accessed SharePoint files.

SharePoint Document Library Best Practices

To optimize your SharePoint environment:

• Train end users on proper use and benefits of metadata
• Regularly review and manage permissions to maintain data security
• Configure automation rules to alert you and your team to significant changes in files
• Avoid syncing entire document libraries; instead, selectively sync essential folders with shortcuts
• Use a flat architecture to organize your site content

Make SharePoint Your Secret Weapon

Effective SharePoint document management will help support your organization's productivity, compliance, and security needs. As an M365 admin, integrating these best practices into your daily management approach can reduce admin task time, improve compliance scores, and enhance user satisfaction. Staying on top of SharePoint file management will ensure a Microsoft 365 environment that remains optimized, secure, and highly functional for all collaborative efforts.

To learn more, watch our on-demand webinar, How to Leverage SharePoint to Get the Most Out of Microsoft Teams.