Complete guide to document workflow management

Digital transformation caused a significant change in how documents are managed. Today, organizations deal with large amounts of files and need a system to keep it all organized. Using document workflow management will help you do this effectively.

In this article, we explain what document management workflows (DMW) are, share key components and benefits, and offer a step-by-step guide for how to choose and build your document workflow process.

What is document workflow management?

Document workflow management is the system or process used by businesses and organizations to create, store, share, edit, and manage documents. DMWs are also used to give clear guidelines on how to complete tasks in the document management lifecycle — from creation to version control to compliance and security.

Key components of a document workflow management system

A document workflow management system should act as a map or guide, leading you from an initial idea all the way to final document delivery. Here are the key components involved in this process:

• Creation: Documents are created with standardized templates or formats.
• Capture and import: Files are scanned, uploaded and imported into the system for digital storage.
• Indexing: Metadata and tags are assigned for easy document retrieval and organization.
• Storage and archiving: A central repository securely stores documents, using archive protocols for older files.
• Access control: Permissions and roles are set to determine who can view, edit or delete documents.
• Collaboration: Multiple users can work on documents simultaneously, with secure methods for team interaction.
• Version control: Changes and updates are tracked over time, accurately preserving the document's history and making sure users have access to the most recent version.
• Approval and workflow automation: Roles and steps are defined for each document stage, including review, approval, and routing.
• Retention and disposal: Policies are implemented to define how long a document should be kept and how it should be securely disposed of once it is no longer needed.
• Search and retrieval: Robust search functionalities are used to easily locate documents using keywords or filters.
• Monitoring and reporting: Document usage, access logs, and workflow efficiencies are tracked for ongoing improvement.
• Integration: Third-party systems and tools must be checked for compatibility to ensure workflows can be streamlined across platforms.

Related read:How to find weak points in your workflow

Document management workflow benefits

Data from the U.S. Bureau of Labor Statistics showed productivity in the first quarter of 2024 increased by just 0.2%, a 2.7% drop from Q1 of 2023. With this startling decline in productivity, businesses should focus efforts and resources on implementing systems that can help teams be more productive. A DMW is one such system, offering several benefits including:

• Improved efficiency: Streamlines processes to reduce the time spent searching for documents and managing approvals.
• Enhanced collaboration: Promotes better teamwork through shared access, real-time editing, version controls, and communication features.
• Better organization: Makes it easier to categorize and retrieve documents by indexing files and structuring document storage.
• Increased security: Protects sensitive information with access controls, encryption, and secure storage options.
• Decreased risk of noncompliance: Ensures legal and regulatory requirements are followed to avoid risk of penalty.
• Simplified version control: Prevents confusion and errors through clear document history.
• Reduced spending: Lowers operational costs by using less paper and cutting down on the need for physical storage.
• Greater accessibility: Supports a flexible work environment, allowing remote access to documents from various devices.
• Augmented decision making: Assists in better decision making through easy access to accurate and up-to-date information.
• Reinforced disaster recovery: Safeguards documents from data loss, providing backup solutions in the event of disasters or technical failures.
• Stronger audit trails: Enhances accountability with tracking capabilities that log who accessed or modified documents.

Choosing the right document workflow management system

Selecting a system to manage your document workflows is a big decision as it directly affects your business’ productivity, efficiency, security, and compliance. To support your document workflow process, the use of a document management system (DMS) is recommended.

Current estimates for 2024 show the projected DMS market value at $7.52B. These software solutions help streamline the creation, storage, retrieval, and distribution of your documents.

To choose the right document workflow system and DMS for your organization, answer the following questions:

• What are the current pain points and inefficiencies your organization is experiencing?
• What goals do you want to achieve with a new system?
• What security and compliance requirements do you need to factor in?
• What is your budget for both initial costs and ongoing expenses?

Based on what you discover from answering the questions above, you can start researching different solutions that meet your needs. As part of this research, make sure the options you consider offer the following:

• Seamless integration with any existing systems or tech stacks.
• User-friendly interfaces that minimize learning curves.
• Product demos and trial periods for testing out new solutions.
• Robust security features, like encryption and access controls, are baked in.
• Compliance that meets industry-specific requirements and standards.

Related read: Document management best practices

Building your DMW: A step-by-step guide

To stand up your DMW and get the most out of automating this process, follow these five steps.

1. Understand your organization’s needs

Identify what documents and files need to be managed. Items like contracts, reports, invoices, and project files should be part of this audit. You also need to identify your key stakeholders. Be sure to assign who will be in charge of document creation, who has access to what, and a process for everyone to collaborate.

2. Create and store your documents

Draft, edit, and generate your digital files. Use standardized formats to ensure compatibility and develop naming conventions for consistency. This will help with search and retrieval, especially as you add to your repository of digital documents.

Storing your documents is where a DMS comes into play. Once you’ve selected a secure solution, you can use it to safely organize all your files into folders and categories.

3. Share documents with relevant stakeholders

Set access controls to restrict or grant appropriate permissions to team members, clients, and external partners. Be sure to train employees on how to use it properly. For clients, partners, and vendors, you can grant specific access permissions so those parties can only see and engage with documents relevant to them.

4. Implement approval processes and workflows

Whether project managers, legal counsel or department heads — determine who should approve documents. Always set clear roles, responsibilities, and expectations for each owner in the approval process.

It’s also important to specify approval criteria for things like compliance, project accuracy, and industry-specific nuance. You can use document workflow automation to help streamline the approval process.

5. Establish retention policies

Create a standard for how long documents should be kept within the system, based on variables like legal requirements and evolving business needs.

To ensure information doesn’t get lost, set a process for archiving and removing documents. For example, timing standards, like the completion of a specific milestone, can help dictate when certain files are no longer relevant. Remember to regularly review and update any document retention policies to maintain security and avoid potential data loss.

Manage your document workflow process with efficiency and confidence

Investing in a robust document management workflow system allows you to maintain efficiency and effectiveness when handling large volumes of documents. The amount of documents most organizations deal with today is well beyond what can be managed manually. A DMW is crucial for productivity, overcoming challenges, and reaching new business goals.

As you set up both your DMW system and DMS, revisit the steps and components outlined above to build workflows that will support positive outcomes for your business.