It is a common perception that a large sum of money is required to achieve a good file management system.  In truth, a certain degree of creativity and perseverance is all it takes to first create a system, and to then maintain it.  Probably the hardest part of it all lies in breaking the old habits of lawyers and staff alike and changing the culture of the firm so that the adoption of a workable system can be achieved with minimal disruptions and loss of time.
 
Because it is largely left to your support staff to attend to the day-to-day upkeep of your files, it is imperative that as their employers, you take the time to educate and train them on your intentions, and the benefits a good filing system can have on the practice.  Employees who understand the intent behind your instructions will have a clearer sense of direction and inculcate a deeper sense of responsibility for their tasks.
 
These are some suggestions to attain a workable file management system:

1) Designated Space
Designate and cordon off a space in the office solely for files - this can range from a small room to a wall of shelves. Whichever space is chosen, make sure that external influences are taken into consideration, sunlight and dampness can deteriorate files over time.
 
2) File Names
Have a set naming convention for all active files - ensure that the names and reference numbers on the files can be seen in whichever way they are stacked or stored to save time looking through many files in search of the one you actually want.
 
3) Catalogue
Open and maintain a worksheet document cataloging all files by practice area, file name, date opened, date closed, parties involved, and persons in charge to accommodate for broader search parameters.
 
4) Coloured Files
Break-up that designated space into sections by practice area ie litigation, conveyancing, commercial, family law etc; use colour-coded files or file labels - visual representations act as a quick aide in locating files.
 
5) Housekeeping
Dedicate one day a month for your staff to conduct basic housekeeping work on all files ie making sure files are stored where they are supposed to be, updating documents within a file and ensuring all files are logged into the database.
 
6) Tools for thought
If you do not spend on anything else, consider investing in a safe or fire-proof storage cabinets specifically for your client's most important documents eg Title Deeds, Sale and Purchase Agreements and Wills.