Looking for Microsoft 365 best practices for a large dynamic company group

There is no single Microsoft 365 group type that fully covers company-wide communication, collaboration, and guaranteed email delivery.

The recommended enterprise approach is to separate responsibilities:

• Entra ID Dynamic Group → source of truth for automatic membership (identity, licensing, and targeting).
• Dynamic Distribution Group (Exchange Online) → used for company-wide email and meeting invitations where delivery must be deterministic and independent of user subscription settings.
• Microsoft 365 Group (and/or Teams) → used for collaboration (SharePoint, Teams, file sharing) and non-critical or engagement-based communications.

This approach avoids the subscription-based delivery variability inherent in Microsoft 365 Groups while maintaining modern collaboration capabilities.

For smaller environments, a single Microsoft 365 Group may be sufficient, but it relies on “best-effort” delivery semantics, where users can unsubscribe or choose not to surface group messages in their inbox, making it unsuitable for critical or guaranteed communications.

In summary: use Microsoft 365 Groups for collaboration, and a Dynamic Distribution Group for guaranteed company-wide communication, both driven by the same Entra ID dynamic membership logic.

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