Hi, @Rachael Fowler
I understand the challenges you face when managing nested email distribution list and want to convert them to Microsoft 365 Groups for better collaboration and management, but managing group membership and ensuring proper retention can be challenging. In response to your question, I give the following suggestions:
1.While users creating their own groups can lead to potential clutter and administrative issues, there are strategies you can employ to keep things organized and tidy.
a. Establish clear policies for group creation, usage, and lifecycle.
b. Use Microsoft 365's built-in features to develop group expiration and renewal policies. You can set the group to expire after a certain period of time, and if it is not renewed, it will be deleted. This helps to manage unused or inactive groups.
c. Consider using PowerShell scripts or the Microsoft Graph API to automate administrative tasks, such as archiving or deleting groups that don't have members.
2.As you said, you can't upgrade a nested distribution list to an M365 group. You can only upgrade a simple, non-nested distribution list managed by the cloud to a Microsoft 365 group. Can't upgrade distribution lists to Microsoft 365 groups - Exchange | Microsoft Learn
You can try to use Group Membership Management (GMM) to help you manage your groups. Microsoft Automates Group Member Management
3.Even though there are many limitations in the process of upgrading DL to M365 groups, this also has many advantages for large organizations to manage their groups. As technology continues to evolve, so does technology about nesting. Migrate traditional Distribution Groups to Office 365 Groups - Microsoft Community Hub
4.If you've configured a hybrid deployment between your on-premises Exchange organization and Microsoft 365, you can follow the steps in this topic to make the groups you created in Microsoft 365 available to on-premises users. Configure Microsoft 365 Groups with on-premises Exchange hybrid | Microsoft Learn
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