This is How You Can Optimize and Manage Your Digital Filing System

Are you still searching or have you found it already? Who does not know it: you are searching for a specific document and you were sure, you have it somewhere in your download folder. The filename was something with numbers and a few letters in between. After opening six files, you finally find it. It should not be like this.

A well-thought-out filing system for your digital documents is essential to quickly and easily find all relevant files. Setting up your document management optimally is not as easy as it seems at first glance. This article will help you organize your digital filing in the office and give you tips, examples, and tools for
practical implementation.

How can you organize the digital filing of documents?

You need three steps to create the optimal digital filing in the office. In the first step, you conduct an inventory. In the second step, you define the future processes and set up the folder structure. And in the last step, you secure your current data, then the old structures are dissolved and the documents are transferred. Let's look at the steps in detail.

1. Inventory

Before planning begins, you should reflect on the current state of filing in the office and take note of the insights.

These questions will help you:

• Which documents need to be filed?
• Which categories are especially important?
• How and where are documents currently filed?
• Who files important documents digitally?
• Which departments frequently work with the same documents?

2. Define new process and structure

You start by setting criteria for sorting the electronic filing. This can be based on projects, customers, departments, or types of documents. Next comes the structure of the filing. You can set up a completely own system or be inspired by the 7-folder system. This is a hierarchical, three-tier folder system.

This means: 7 folders on the first level, each with 7 subfolders. This results in 49 folders. The folders of the second level are also allowed to have 7 subfolders. This totals 399 folders. The magic number seven goes back to American psychologist George A. Miller. According to the psychologist, people can store a maximum of 7 ± 2 units of information in their working memory. If you stick to the number seven, a quick grasp of the information should be guaranteed. 

Let's look at an excerpt from the 7-folder system to organize the digital filing in the office:

Level 1:

1_HR

2_Marketing

3_Projects

4_Sales

Level 2:

3.1_Projects Customers

3.2_Projects Paid Ads

3.3_Projects Website

Level 3:

3.1.1_Project Müller and Co. KG

3.1.2_Project Advertising Agency Schmidt

3.1.3_Project Weiß & Partner

In this example, it makes sense to use a fourth level. In the project folder for the customers, it could be differentiated, for example, by the content of the document: 

3.1.1.1_Correspondence

3.1.1.2_Orders

3.1.1.3_Invoices

3.1.1.4_Contracts

If you have a lot of customers, it's worth for you to divide the
customers alphabetically by name. Here there could be folders for customer names from A-C, D-F, G-I, etc. 

The naming of files must also follow a fixed structure. At one glance, you must
recognize what the file is about. The file name can be composed from the date and a short information about the content. This could look like this: "22-11-2021_Marketingplan 2022". With one click, you sort the documents chronologically. Thanks to good search functions, you can find documents that are clearly named without much clicking. Depending on the used system, it can additionally make sense to assign tags and categories to documents. 

3. Backup and dissolve old folders

Ensure to create a backup before moving the documents. Each file should be reviewed and renamed. This is the optimal time to clear out. If the document cannot be deleted due to retention periods, but is no longer used, off to the archive! It's best to mark the folders directly with the deletion date.

If the effort for this is too high, do not move the old documents or only partially. Starting from a fixed and clearly communicated cut-off date, the filing begins with the new structure. 

What matters in the implementation? 

Involve employees in the redesign of the digital filing that are affected by the change. Allow a discussion about the current state of the digital filing and opportunities for a new structure and new processes. There are many ways to organize the digital filing. What's important is that everyone sticks to the new workflow once it's set. Acceptance is higher when employees can co-decide.

Set rules according to which the digital filing takes place. The rules for creating folders and saving documents are written down. The rule document must be found quickly and easily to ensure compliance with the rules as best as possible.

Every change has to be gotten used to by employees first. The change might not go smoothly right from the start. It's important to ensure that you and your colleagues block time at least once a week to carry out the digital filing cleanly.

Agree on a central storage medium. This can be an area on company-owned servers, a cloud, or a document management system. All data, no matter where it comes from, are stored there. 

Another aspect that needs to be considered is security. Not every employee should have access to all documents. With the new digital filing, data protection must continue to be ensured. In addition, the GoBD provides guidelines for the proper keeping and storage of books, records and documents in electronic form as well as for data access. We have already reported on this in the article How to digitize your documents successfully.

Tips for optimizing your digital filing

• Store as few files as possible on the desktop or in the download folder. 
• Do not duplicate any file. Create shortcuts if they are used by multiple
  participants.
• Avoid folders like "General" or "Miscellaneous". These folders become an
  unorganized document pool. Every file gets a fitting
  storage place.
• If there are multiple versions of a file that are all relevant, add a
  version number into the file name. This might look like this:
  "2021_11_03_Marketing Concept_V1". At one glance, you find the
  latest version.
• Number your folders according to importance. This way, the most used folder is always on top.

Tools to support digital filing and document organization

Even when filing and organizing your digital documents, tools can support you. Besides Sharepoint, OneDrive and Co., there is Document management software that is there to make your digital filing and organization easy and efficient. 

On OMR Reviews you can already find a large selection of reviewed
Document Management Tools. We have selected the five best-rated
DMS for you:

• ownCloud

• Filestage
• Bynder

• Microsoft OneDrive for Business

Conclusion

With a sensible folder structure, you and your employees save time and nerves. The work, alone or in a team, becomes quicker and simpler. Take enough
time for the changeover and keep in mind: Little by little, the structure will change again. This is a natural development that goes hand in hand with the growth of your company.

Restructuring of departments, new products, new markets – everything influences your folder structure. Try to change as little as possible on the upper folder levels. This ensures that smaller changes do not throw the entire folder structure over the top and employees can internalize the order of the digital filing.