The Hidden Costs of a Messy SharePoint: Why Structure Matters More Than You Think

With extensive experience delivering SharePoint Solutions to clients around the globe, Senior M365 Consultant, Yuvilen Naidoo discusses the hidden costs of an unstructured SharePoint environment, and why getting your structure right is more critical than ever.

The author of this page: Yuvilen Naidoo
Yuvilen Naidoo, Senior M365 Consultant Jul 10, 2025

While many organisations adopt SharePoint to improve collaboration and centralise information, a poorly designed or unmanaged environment can quickly become more of a hindrance than a help, morphing into a source of confusion, inefficiency, and risk. What might look like a functioning system on the surface may actually be costing your business in ways you haven't considered. Below we discuss some of the potential challenges associated with an unstructured SharePoint environment. 

Lost Time and Productivity 

One of the most immediate consequences of a disorganised SharePoint environment is the sheer amount of time employees waste trying to find information. Employees spend an average of 1.8 hours per day searching for the data they need to do their jobs, according to IDC. Over the course of a year, that can add up to hundreds or even thousands of hours of lost productivity, depending on the size of the company. 

Disorganised folder structures, duplicated files, inconsistent naming conventions, and outdated documents all contribute to this chaos. Without clear guidelines or a unified taxonomy, employees often resort to creating their own structures, resulting in silos, version confusion, and unused folders or sites. This results in difficulty finding information, frustrated users, delayed decision-making, and a significant drain on productivity. 

Governance and Compliance Risks 

Not only is poor SharePoint structure an operational issue, but it’s also a potential compliance risk. When your environment lacks consistent metadata, permission structures, and governance protocols, enforcing security and regulatory policies becomes significantly more difficult. This lack of oversight can lead to issues like: 

  • Inappropriate access permissions, increasing the likelihood of data leaks or breaches. 

  • Difficulty applying retention policies, making it harder to meet legal or regulatory obligations. 

  • Limited auditability, hampering your ability to respond to compliance audits or security incidents. 

In the age of GDPR, DORA, and NIS2 regulations, organisations simply can't afford the blind spots created by a chaotic document management system. The reputational, financial, and even possible legal risks are far too significant. 

Low User Adoption and Frustration 

The success of an organisations SharePoint relies heavily on user adoption. If users can't find what they need easily, or don't trust the platform to provide accurate, up-to-date information, they're likely to abandon it altogether. Instead, employees revert to more familiar, but less secure, tools like email, shared drives, or local file storage. This not only undermines the value of your SharePoint investment but also fragments your data landscape, making collaboration and information sharing much harder. 

A clean, intuitive structure is essential for encouraging consistent and effective use. When users can quickly locate relevant documents, understand folder logic, and rely on search functionality, they’re far more likely to engage with the platform and contribute to its success. 

Scalability and Future Readiness 

As your organisation grows, so does the complexity of your digital ecosystem. A messy SharePoint structure that may have been manageable at 50 employees can become completely unworkable at 300+. 

These poorly organised environments may hinder the adoption of advanced tools and integrations, such as process automation, advanced search, and AI-powered tools like Copilot for M365. Each of these technologies rely on well-structured, tagged, and permissioned data. Without that foundation, your organisation will struggle to leverage modern capabilities, holding back your digital transformation efforts and ultimately affecting the business’ competitiveness and ability to scale. 

An optimised SharePoint environment isn’t just about tidiness - it’s about reducing risk, improving productivity, and enabling sustainable growth. From compliance to collaboration, structure underpins every element of a successful SharePoint strategy. 

If your SharePoint feels more like a barrier than a business enabler, it’s time to reassess. To learn how to spot structural issues and see what a modern, efficient SharePoint environment looks like, check out our on-demand webinar ‘Prepare Your SharePoint for Tomorrow.’ 

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