Microsoft 365 is a powerhouse, but out-of-the-box settings are designed for the broadest possible use, not for the specific security and efficiency needs of a growing SMB. You don’t need to be an IT expert to implement these five crucial updates. They form a stronger foundation for your work in 2026.
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Enable Multi-Factor Authentication (MFA) Everywhere. Yes, Everywhere.
This is the single most important action you can take.
- The setting: In the Microsoft 365 admin center, under Users > Active users, you can set authentication methods. Move beyond simple SMS codes. Use the Microsoft Authenticator app for a smoother, more secure push notification approval.
- Why it Matters in 2026: Verizon’s 2023 Data Breach Investigations Report states that over 80% of breaches involve stolen or weak credentials. MFA stops these attacks cold. It’s no longer optional.
- Pro Tip: Make it a policy. The goal is 100% enrollment for every user, with no exceptions. The admin center will show you who hasn’t set it up yet.
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Review and Trim User Application Licenses.
Waste creeps in as roles change.
- The setting: In the Admin center, go to Billing > Your products. Select Microsoft 365 and click "Assign licenses". You’ll see a list of all users and the full suite of apps they’re assigned (like Publisher, Access, etc.).
- Why it Matters in 2026: Why pay for apps like Power BI Pro for a user who only needs email and Word? This annual review ensures you’re not overspending. It can also simplify the interface for users, reducing clutter.
- Pro Tip: Create standardized license "bundles" for different roles (e.g., "Front Office," "Operations," "Executive") to streamline onboarding and offboarding.
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Configure OneDrive Backup for Critical Folders.
Protect data before a device fails.
- The setting: This is a user-level setting. Guide your team to open OneDrive settings, go to the Backup tab, and click "Manage backup" for their Desktop, Documents, and Pictures folders.
- Why it Matters in 2026: Laptop theft or failure is a "when," not an "if." This setting automatically syncs these vulnerable local folders to the cloud. It turns a potential crisis into a minor inconvenience, with files restored to a new device in minutes.
- Pro Tip: Use a group policies or guidance from your IT provider to push this setting company-wide, ensuring no one is left unprotected.
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Set Sensitive Email Warnings (Data Loss Prevention).
Prevent costly "reply-all" or "wrong recipient" mistakes.
- The setting: In the Compliance center, explore Data loss prevention (DLP) policies. You can create a simple policy that pops up a warning when an email contains sensitive data (like credit card numbers or custom keywords you define, e.g., "CONFIDENTIAL") and is set to go outside your organization.
- Why it Matters in 2026: Human error is a top cause of data leaks. This is a gentle, proactive guardrail that makes an employee pause and double-check before sending sensitive information to a client or, worse, a competitor.
- Pro Tip: Start with a simple policy that warns users but doesn’t block. It’s an educational tool that builds a culture of security awareness.
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Automate File Clean-Up with Retention Labels.
Stop shared drives from becoming digital hoarding spaces.
- The setting: In the Compliance center, under Information governance, you can create Retention labels. Create a label named "Temporary Project Files" with a rule to delete content 12 months after creation. Apply this label to specific SharePoint project folders.
- Why it Matters in 2026: Clutter slows people down and increases risk. Old files containing outdated pricing or personal data shouldn’t live forever. Automated retention is like auto-archiving for the modern cloud era, keeping your collaborative spaces clean and compliant.
Taking these steps will harden your security and remove small, daily friction points that add up to lost time. Your Microsoft 365 subscription is a strategic asset to manage it like one.
Need help auditing and configuring your Microsoft 365 tenant? Our team specializes in optimizing business platforms for security and performance. Reach out to CKT for a Microsoft 365 settings review.
