What is Document Workflow?

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Contributors: Tim Mucci, Cole Stryker

What is document workflow?

A document workflow is the system that manages how documents are circulated within an organization. An effective document workflow helps ensure that all necessary personnel have access to and control over documents under a streamlined framework that supports secure governance. A well-planned document workflow helps employees quickly access the documents that they need to operate at peak efficiency, while keeping access limited to the appropriate users.

Why does document workflow matter?

Documentation is the memory of an organization. Good document management preserves best practices, historical decisions and past experiences. Ensuring this institutional knowledge is readily accessible to current and future employees mitigates time that is wasted on searching for documents and prevents duplicate work.

Organizations generate significant volumes of essential paperwork that require diligent management, such as version tracking and secure storage. A document that cannot be easily located is virtually nonexistent, emphasizing the importance of proper indexing and applying appropriate metadata to guarantee retrievability. When documents are well managed, they foster an organizational culture of collaboration, transparency and efficiency in work practices.

What is document processing?

Learn why converting analog data into digital formats is an essential step in an organization's workflow transformation.

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What is workflow automation?

Best practices for good document workflow

Imagine a scenario where every document in an organization is stored in separate folders, accessible to everyone and spread throughout various departments. This structure would make finding and securing documents exceedingly challenging.

The core principle of document workflow is to identify which parties within the organization need access to documents and to ensure that this access is safe and easy. Establishing clear procedures for creating, storing and managing documents forms the bedrock of an effective document workflow.

Implementing these procedures requires collaboration across multiple roles within the organization. Human Resources, Legal and IT departments are pivotal in setting up access controls, document classification systems and secure storage solutions. It's crucial for everyone that is involved to comprehend the rationale behind each step of the process. Understanding the importance of accurate metadata, the reasons for including specific documents and the need for proper version control can significantly enhance engagement and adherence to the workflow. Clarifying each person's role in the process further strengthens this effect.

For a document workflow to be considered effective, it must provide solid and consistent answers to several fundamental questions:

How does the organization balance permissions with the security needs of sensitive documents?
Which types of documents are included in the workflow?
When and how are new documents introduced into the system?
Where are documents stored and how are they organized? Is it done by metadata or by using a version control system, or both?

Addressing these questions helps organizations establish transparent workflows that track every step that a document takes, highlighting any bottlenecks, delays or inefficiencies. Thorough documentation of these workflows facilitates monitoring key performance indicators (KPIs), such as the average time required to complete approvals, the number of revision cycles that are needed and the percentage and types of documents that are processed more swiftly than others.

Moreover, workflows seek to determine who is responsible for each step in the document's lifecycle, fostering accountability and simplifying progress tracking. Consider a document workflow designed to approve marketing materials. Such a workflow would specify who drafts the initial document, who reviews it for content and design and who is involved in the approval hierarchy. By monitoring the progress of these documents, an organization can assign KPIs to identify areas for improvement, gain insights into the approval process and refine review guidelines to enhance clarity and efficiency.

Understanding document workflow in five steps

A streamlined document workflow is essential for an organization's security, growth and insight. Using the automation of accounts payable invoice processing as an example, here are the four steps to effective document workflow management:

Understand the role of metadata

Metadata is a rich layer of information that empowers document management systems to understand and process documents effectively. The metadata of a document contains details like who authored it, creation date, vendor name, invoice number, keywords and even extracted data points like total amount due. Providing context and structure allows DMS to automate tasks, streamline retrieval and ensure a smooth and efficient process.

Automate document intake

Traditionally, invoices arrive via mail or email, necessitating manual data entry into the accounting system—a slow, error-prone process without a central repository. By implementing automation, vendors can submit invoices electronically and optical character recognition (OCR) technology automatically extracts important data. OCR technology relies on embedded metadata to identify the document as an invoice. This allows for automatic data extraction of crucial information like vendor name, invoice number and total amount. This initial step significantly reduces entry errors and speeds up the process.

Store everything worth storing

Before automation, handling invoices involved filing paper copies or scanning and saving them in local folders or a shared directory, which made retrieval cumbersome. Post-automation, all invoices are stored within a document management system (DMS). The DMS uses metadata for efficient storage and categorization. By tagging invoices with relevant metadata like vendor name, date and invoice number, the system guarantees easy retrieval and eliminates the need for manual organization.

Ensure swift document recall

In the pre-automation era, finding a specific invoice, especially in paper-based systems, was time-consuming. With automation, searching for specific invoices becomes faster with the help of metadata. Users can leverage search criteria like vendor name, date range or invoice number, allowing the DMS to pinpoint the relevant document within seconds.

Use the right tools

Traditionally, managing invoices might rely on email and spreadsheets, leading to siloed data and increased security risks. However, an automated workflow integrates the DMS with existing accounting systems, allowing for the automatic population of extracted data. Also, approval steps can be implemented within the system, enabling authorized personnel to review and approve invoices electronically, with automated notifications, thus enhancing both security and speed. Integrating the DMS with accounting systems hinges on the accurate extraction of data through OCR. This process is heavily dependent on the metadata present within the invoice, which allows the system to populate the accounting software with the correct information and trigger further workflow steps based on the extracted data.

Automating document workflow

Once an organization grasps the principles of document workflow, it can implement automation across its processes. Here are the steps that are involved:

Involve stakeholders

Initially, the organization needs to identify and involve stakeholders from various departments. These stakeholders provide insights into current processes and necessary improvements. Aligning automation with the specific needs of each department minimizes the risk of overlooking essential steps or functions for certain users. Stakeholders with hands-on experience can also pinpoint potential exceptions or edge cases that might challenge the automation.

Establish the document workflow process

This step involves mapping the manual workflow. The workflow development team documents each step a document takes, which tasks will be automated, who must be involved and identify critical decision points. Visualization tools such as flowcharts or process maps can be instrumental in this phase. The team can best identify and address pain points by involving stakeholders. Once the workflow is operational, it can be continually refined to eliminate redundancies and optimize efficiency.

Choose a document management system (DMS)

The selection of a DMS begins with identifying the most frequently handled documents—such as contracts, invoices and reports. The team will consider factors like the document approval process, collaboration requirements and specific routing needs while also planning for future scalability. The chosen system should offer robust encryption to protect sensitive information and be intuitive for all end-users. Vendor support for training and ongoing assistance is important to help ensure effective utilization of the DMS.

Implement security features

Securing the document workflow involves both technological safeguards and best practices. Implement strong user authentication methods, such as multi-factor authentication, to prevent unauthorized access, and assign permissions based on job functions. Encrypted documents, both at rest and in transit, will secure sensitive data even in the event of a breach, and educated users are more likely to help reinforce technological safeguards.

Develop policies and procedures

Clear policies and procedures are vital for a smoothly running document workflow. Engage stakeholders from various departments to understand their document-related interactions, challenges and improvement opportunities. Develop a system for classifying documents by sensitivity, purpose and retention needs. This guides the application of appropriate access controls and security measures—defining guidelines for document creation, establishing clear ownership and outlining the approval processes for different documents.

Train employees

To guarantee the successful adoption of the new system, actively involve employees in both the design and implementation phases. Training is fundamental to helping employees understand the importance of automation, build confidence and equip them with the skills to use the new system effectively. Understanding their role within the workflow helps employees see how their actions impact overall effectiveness.

Monitor the system

After implementation, ongoing monitoring of the automated system is essential. Real-time audits and security tests verify that the automation functions correctly and manages documents as intended. Monitoring should also identify process bottlenecks, analyze recurring errors and improve automation rules or system configurations. Regular security audits and reviews of user logs help to ensure that the system remains secure and efficient.

Document workflow versus document management workflow

Document workflow involves the specific steps of creating, editing, approving and distributing a document, primarily focusing on its movement throughout the organization.

Document management workflow extends beyond mere movement to include the specifics of document creation, storage, distribution, retrieval, categorization and deletion.

There are two main types of document workflows: sequential and parallel.

Sequential or linear workflow: This type of workflow follows a predetermined, step-by-step process where assigned individuals complete tasks in a specific order. For instance, in creating marketing materials, the process might unfold as follows: a copywriter submits a draft, which is then reviewed by an editor who provides feedback. The revised draft is sent back to the copywriter for further revisions before the final copy is forwarded to a graphic designer. The designer confirms that the visuals align with the brand before the marketing manager reviews and approves the complete package. If any additional revisions are needed, the document cycles back to the writer.

Parallel or concurrent workflow: In this workflow, multiple tasks are completed simultaneously. Using the same marketing material example, the copywriter submits a draft that the editor reviews for content and clarity and the designer for brand compatibility simultaneously. Feedback from both parties is addressed concurrently, visuals are applied and the marketing manager conducts the final review for launch. This method is often faster but requires clear communication to prevent confusion and conflicting feedback.

Either cloud-based or on-premises systems can support these workflows:

Cloud-based systems: Documents are stored on servers maintained by the organization's cloud service provider (CSP). These systems are scalable, easily adjusted by modifying the storage plan with the provider and accessible from anywhere with an internet connection, which is ideal for remote workers or frequent travelers. Cloud systems often allow simultaneous document editing by multiple users and typically involve lower upfront costs, with organizations paying a monthly or annual service fee.

On-premises systems: This approach requires software to be installed on servers within the organization. It offers complete control over both hardware and software but can be complex and costly to scale. Access is generally restricted to within the network unless special remote configurations are set up, complicating access for remote workers. On-premises systems often require significant upfront investment in hardware and software licenses, with potential ongoing costs for maintenance and IT support.

Workflow automation systems further enhance the document management workflow process by automating management from capture to archive, simplifying automatic routing, approval requests and archiving. Workflow automation systems are typically software solutions that automate many aspects of the document management workflow.

Benefits of implementing a document management workflow

Implementing a document management workflow can bring numerous benefits to an organization, improving both operational efficiency and compliance:

Reduced time and labor costs

Automating various stages of document handling reduces the time employees spend on manual processing, lowering labor costs and allowing staff to focus on more strategic tasks.

Improved collaboration

A streamlined workflow facilitates easier sharing and collaboration on documents among team members, even across different geographical locations, enhancing teamwork and speeding up project completion.

Enhanced security

By managing documents through a secure system that controls access based on user roles, organizations can protect sensitive information against unauthorized access and potential breaches.

Better document management and control

Centralized control of documents makes certain that they are stored, managed and maintained under consistent standards, reducing the risk of misplacement and outdated versions being used. Automation minimizes human error in document entry and processing, leading to more accurate data management and reporting.