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IBP - Microsoft 365 Group Creation Restriction

Best Practice Policies M1–M3

🎯 Purpose

✅ Restrict who can create Microsoft 365 Groups and Teams to members of a dedicated security group and administrators.

➡️ Prevents uncontrolled group and Team sprawl, and the unmanaged sharing and data storage that comes with it.


👥 Who is affected

✅ Users: All users in the tenant
✅ Allowed to create groups: Members of IBP - SG - Microsoft 365 Group Creators, plus administrators with group management roles


☁️ What is protected

✅ Creation of Microsoft 365 Groups from Outlook, Teams, SharePoint, Planner and other apps
✅ Type: Entra ID tenant directory setting (Group.Unified) and a security group


🔐 How group creation is restricted

Setting

Value

Security group IBP - SG - Microsoft 365 Group Creators

Created with no members

Group.Unified › EnableGroupCreation

false (was true)

Group.Unified › GroupCreationAllowedGroupId

IBP - SG - Microsoft 365 Group Creators

➡️ Other Group.Unified values are left unchanged.

ℹ️ After deployment: Add the users who should be able to create Microsoft 365 Groups and Teams to IBP - SG - Microsoft 365 Group Creators. Until then, only administrators can create them.


⚙️ What this policy does NOT enforce

🚫 Group naming policy or expiry
🚫 Guest access to groups
🚫 Security group or distribution list creation


🟢 Policy status

✅ Enabled
✅ Applies tenant‑wide


📘 Essential Eight Alignment

✅ Supports governance of collaboration spaces and data storage
ℹ️ Inforcer Best Practice control applied at all maturity levels; not an Essential Eight control


📘 Practical Interpretation (Executive‑Friendly)

This setting ensures that:

✅ New Teams and Microsoft 365 Groups are created by approved people only
✅ The organisation keeps control of where data is stored and shared

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