How to Use these Compliance Features, Benefits & Things to Consider Before Implementation
While many tasks are required to ensure compliant records management, labeling could be considered one of the most important. Since the initial release of Advanced Data Governance (ADG) in 2017, Microsoft 356 (formerly Office 365) has offered a labeling mechanism that can be utilized for ensuring compliance across M365. This post will define two methods of Microsoft 365 Labels, benefits, and things to consider before using this compliance feature for your RM programs.
It is important to note that with the latest updates to Microsoft 365, users can only declare records using Enterprise level E5. For this reason, application of labels in M365 is only available if you are using E5 or pairing your M365 with an add-in solution.
For the full version of my presentation on this topic, download the free PowerPoint PDF below.
Types of Labeling
To start off, there are two methods for labeling content: manual and automatic.
1. Manual Application
While the manual process of applying labels one-by-one to content is common for physical records, it has proven to be a less-than reliable option for productive electronic content management (ECM). With such high volumes of organizational digital content, having individual users manually label their own documents can result in disorganization, missing tags, or documents that may not have been tagged or uploaded at all.
2. Automatic Application
Automatically labeling is the more dependable of the two. With this method, content can be labeled based on pattern of information, content type, metadata, or location.
While automatic labeling skips potential for human error, it requires the right tools to work effectively. This is where Microsoft 365 Labels can come in handy.
Microsoft 365 Labels
With Microsoft 365 retention labels, authorized users can classify data across their organization in Microsoft 365 for governance and enforce retention rules based on that classification. Microsoft 365 is also excellent when it comes to data loss protection, having centralized RM capabilities, and having APIs for extension to meet compliance requirements for highly regulated industries and public sectors.
Image shows Retention Labels in Office 365.
Benefits of Microsoft 365 Labels
1. Applicable for Variety of Industries and Policies
Microsoft 365 Labels is available for different types of content with industry regulations and internal policies across an organization.
2. Content can be Marked Immutable
These labels can be created based on specific time periods, and can also be marked as 'records' so other users may not edit or delete the content or label attached to it (content's metadata can still be edited).
3. Disposition Review Process
At the end of a retention period, authorized users can either dispose of content from Microsoft 365, re-label the content, or extend the retention period.
4. Manual and Auto-Apply
Users have the option between a label policy that requires labels to be published for each content piece (manual method) or can be auto-applied (automatically applying a label whenever content meets criteria previously specified for that label).
5. Multiple Platforms
These labels can be applied to files, emails, groups, and more on the following platforms:
- Exchange Online
- Folders and emails in Outlook
- SharePoint Online
- Sites, document libraries, folders, items
- OneDrive for Business
- Folders and items
- Microsoft 365 Groups
- Group level
- MS Teams
- Public and Private Channels
Image shows Label Publishing Locations.
Microsoft 365 Labels provides users with excellent policy-based capabilities around labeling and tagging. But before implementing these compliance features for your RM program, what are some things to consider?
Things to Consider
1. Only Microsoft Platforms
We've reviewed some of the benefits of labeling within Microsoft 365. However, any content stored outside of M365 (ex: in File Shares, physical records, etc.) cannot be managed with this tool.
2. Limited File Plan Options
Microsoft 365 Labels can only be associated to a single hierarchical File Plan (up to 3 levels). However, record categories (aka labels) are usually organized hierarchically based on different business functions. So this feature can be limiting since most organizations require multiple, hierarchical File Plans which are individually secured and managed with no limitations to the number of levels.
Image shows an example of a O365 File Plan.
3. Not All Versions Tracked and Kept
In Microsoft 365, not all versions are tracked and kept. If versioning is somehow turned off, only the final copy of the file will be kept as a record when the Label is applied. If some of the versions are lost, there would be a loss of information and this could put organizations at risk.
4. Up To 7 Days to Apply Labels
Content is not immediately protected and retained. It can take up to 7 days to apply labels, and content can be deleted during this period of time. This leaves organizations vulnerable to data loss, tampering, and accidental deletion during this time period.
5. Retention Lifecycle Not Always Sequential
Another downside is that the retention lifecycle is not always sequential: there can be multiple paths or stages of review in a workflow before a piece of content can be destroyed.
5. Upgrade Costs
Applying labels automatically in Microsoft 365 and requires either a Enterprise E5 license or an Advanced Compliance Add-on.* Since the Enterprise E3 is often the standard license, this would require a costly upgrade to have achieve these capabilities (see chart below).
Image shows current O365 license model capabilities and costs.
6. And More
See my last few items my presentation slides (download the PPT slides below!).
The Microsoft 365 Labels compliance features allow authorized users to manually or automatically apply label policies to a variety of Microsoft content and perform disposition reviews. However, some things to consider prior to implementing is that these tools are limited to Microsoft content, can only be associated to a single hierarchical File Plan, take up to 7 days to apply, and that retention lifecycles are not always sequential. The ability to apply labels automatically requires either a costly Advanced Compliance Add-on or upgrade to Enterprise E5 license.
In addition to knowing benefits and considering potential gaps, it's critical to review and understand your own organization's content and labeling requirements to know if these compliance features check all the boxes for your organization's RM labeling needs.
For my full presentation on this topic, including detailed screenshots, a How To and Things to Consider, please download the free PowerPoint PDF below. If you have any additional questions, contact us with your questions, or for a free personalized demo.
* The capability to apply labels automatically requires an Microsoft 365 Enterprise E5 license for each user who has permissions to edit content that's been automatically labeled in a site or their mailbox is selected for automatic labeling. Users who simply have read-only access to content or reply to labeled emails do not require this license.