Inadequate document management keeps businesses from reaching their full potential.
Most of the things we do in our day to day work lives involves some kind of document being created or shared.
Whether it’s a simple email, business contract or customer profile, the valuable information they contain is essential for decision-making, and must be kept accessible and secure for the wellbeing of your business.
A failure to manage information effectively will inevitably get in the way of success and may even lead to the complete failure of an organization.
Five threats created by poor document management:
Without a well-regulated document management system, your company becomes more vulnerable to security risks. If you hold personal information of customers, patients or clients, you may be targeted by people looking to steal that information. A disgruntled employee could also try to steal, destroy or sabotage important data. Have clear information access levels and always adhere to those policies. If it’s not necessary for some employees to edit or access certain digital documents, they shouldn’t have the ability to.
Wasted Time and Money
Spending too much time looking for lost files and working documents can become a common problem without an organized filing system. Every minute spent on searching for, or even re-creating a lost document is one that could be spent on something actually productive. Poor document management hinders office efficiency, and therefore profitability.
If your business relies on quality customer service, quality document management is a must. Without it, addressing customer inquiries and concerns efficiently will prove difficult. A disorganized documentation system can also lead to an increase in processing costs which are often transferred to the customer. On the other hand, proper file organization can help you respond to customers more quickly, and potentially save them money.
This one’s especially true for companies who rely heavily on collaboration between departments. It’s often crucial for different teams to have access to the same information and to have a free flow of information without bottlenecks. At the same time, giving every employee access to all of your company’s information would create a security risk. To avoid these common issues, it’s important to have a clearly defined process of filing and sharing information between departments, and there has to be a clear standard for managing access levels applied equally across all departments.
Laws like the Sarbanes-Oxley Act (SOX) and the Fair and Accurate Credit Transactions Act (FACTA) require that certain types of information, including financial data and customer information, be kept secure and accessible. Failure to comply with these types of regulations can result in millions of dollars in fines and even potential jail time. An adequate document management system is one of the primary tools you can use to prevent that from happening.