File Management Best Practices: Avoiding Common Mistakes
Whether you’re managing thousands of digital files or a hybrid system of paper and electronic records, one thing remains true: poor file management can lead to compliance headaches, wasted time, and security risks.
Let’s explore the nine most common file management mistakes, how they happen, and what you can do to fix them.
Problem: Teams often use ad-hoc naming methods or leave default file names in place (think “Document1-final-FINAL-v2”), which makes it nearly impossible to find the right version when needed.
Solution: Establish a standardized naming structure that includes consistent elements like client name, document type, and date. Share and enforce these conventions across departments.
A Tip from the Experts: Even with powerful AI-enabled search and retrieval tools, consistent naming conventions remain essential. AI can enhance discovery, but it still relies on clear, structured data to deliver accurate results. Poorly named files—or those with vague or misleading labels—can confuse search algorithms, leading to irrelevant or incomplete results.
Problem: Files end up buried in personal drives, old folders, or incorrect repositories, creating silos and complicating collaboration.
Solution: Define a clear folder structure based on project, department, or process, and educate your teams on where things belong. Use centralized repositories or document management systems when possible.
Problem: When critical documents live only on someone’s desktop or personal drive, they’re at risk of loss, especially during employee turnover or hardware failure.
Solution: Require file storage in secure, shared locations like cloud-based systems or enterprise content management platforms.
Problem: Without version control, employees may use outdated documents or overwrite newer ones, risking errors or non-compliance.
Solution: Use tools with built-in versioning or adopt a manual versioning policy. Clearly label changes and include timestamps when saving updates.
A Tip from the Experts: During a webinar on information capture, Laurie Carpenter of Redgrave LLP provided some advice on establishing version control policies. Hear what she had to say in this clip:
Problem: Unclassified files with missing metadata make it hard to search, retrieve, or apply retention rules properly.
Solution: Incorporate key metadata fields—like record type, department, or confidentiality level—into your file-saving process. Some systems can require this automatically.
Problem: Without accurate labels or indexing, even well-stored files become invisible. This slows audits, impedes retrieval, and increases risk.
Solution: While there’s no single naming system that applies to every organization, the labeling and indexing of documents and files should be clear and consistent. General indexing terms that require users to interpret what documents are contained within a file folder should be avoided. Instead, be as specific as possible! It’s important that once a file labeling and indexing system has been chosen, it is then communicated to everyone in all departments.
Problem: Unnecessary files clutter storage, increase legal risk, and complicate audits or discovery.
Solution: Perform regular file audits and dispose of ROT in accordance with a defensible retention schedule. Automate clean-up processes when possible.
Problem: Without proper controls, confidential or sensitive documents may be viewed or edited by unauthorized individuals.
Solution: Implement role-based access permissions. Review and adjust them regularly as employees join, move, or leave.
A Tip from the Experts: As AI tools like ChatGPT and other generative assistants become increasingly integrated into workplace systems, it’s important to evaluate what types of information they can access. If sensitive or proprietary files are stored in areas accessible to AI without proper controls, there’s a risk of unintentionally exposing confidential information. Records managers should work with IT and legal teams to set clear boundaries around what AI tools can “see” and ensure data governance policies include guidance on responsible AI use.
Problem: Unsecured or outdated backups can be vulnerable to loss, corruption, or ransomware attacks.
Solution: Store backups in secure, encrypted environments—ideally offsite or in the cloud. Test recovery regularly to ensure your plans work when you need them.
Good file management doesn’t happen by accident—it’s the result of proactive planning, consistent training, and strong governance. By avoiding these common pitfalls, your organization can improve compliance, reduce risk, and make information an asset instead of a liability.
For additional advice on the topics of naming conventions, taxonomy, and version control, check out the webinar recording of “Elevating Information Management with Effective Capture.”
Feeling overwhelmed and not sure where to start? Pick one of the mistakes above and focus on improving it this month. A cleaner, smarter, and more secure file environment is closer than you think!
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