Lab 03: AD Users, Groups and Passwords

Created the core Active Directory OU, user and group structure for Nietz Ltd; configured the public UPN suffix nietz.co.uk; and validated account administration, group membership and limited Service Desk delegation.

Overview

In this lab, I extended the existing corp.nietz.co.uk domain by creating the organisational structure needed for department-based administration and future file share, Group Policy, Microsoft 365, and hybrid identity labs.

This builds directly on Lab 01 and Lab 02: DC1 is already the domain controller, and CL1 is already joined to the domain.

Objective

The objective was to create a realistic Active Directory user and group baseline for Nietz Ltd, using @nietz.co.uk as the user sign-in suffix so the on-premises accounts align with future Microsoft 365 and Entra ID integration.

Environment

Environment
ComponentValue
CompanyNietz Ltd
Domain ControllerDC1
Domain Controller IP192.168.10.10/24
ClientCL1
AD Domaincorp.nietz.co.uk
NetBIOS NameCORP
Public / Tenant Domainnietz.co.uk
User UPN Suffixnietz.co.uk

Configuration

1. Organisational Unit Structure

I created the core OU structure for Nietz Ltd so users could be organised by function and managed consistently in later labs.

Active Directory Users and Computers showing the Nietz Ltd OU structure
Figure 1Nietz Ltd OU structure created in Active Directory.
Context: OUs provide administrative structure for users, groups, delegation, and future Group Policy targeting.

2. Alternative UPN Suffix

I added nietz.co.uk as an alternative UPN suffix so users can sign in with the same public domain that will be used for Microsoft 365.

Active Directory Domains and Trusts showing nietz.co.uk as an alternative UPN suffix
Figure 2Alternative UPN suffix configured for nietz.co.uk.
Context: The AD domain remains corp.nietz.co.uk, but users sign in as [email protected] to align with Microsoft 365 and future hybrid identity.

3. Administrative User

I created the daily administrator account [email protected] for routine administration tasks.

Active Directory showing the k.nietzold administrative user
Figure 3Daily admin user created with the @nietz.co.uk UPN suffix.
Context: A separate daily admin account avoids using high-privilege or tenant-level admin identities for normal administration.

4. Department Users

I created the core operational users for Helpdesk, HR, Finance, Sales, and Management using @nietz.co.uk UPNs and department descriptions.

PowerShell output showing department users created with nietz.co.uk UPNs
Figure 4Department users listed with Microsoft 365-aligned sign-in names.
Context: Creating users with the public UPN suffix prepares the same identities for later Microsoft 365, Exchange Online, Entra ID, and hybrid identity work.

5. Security Groups

I created department access groups, a printer access group, and pilot targeting groups that can be reused by later labs.

Active Directory showing department and pilot security groups
Figure 5Department, printer, and pilot security groups created in Active Directory.
Context: Security groups allow access and future policy targeting to be assigned through groups rather than directly to individual users, which is easier to manage and audit.

6. Group Membership

I assigned users to the correct department groups and prepared selected pilot group memberships so later labs can reuse the same structure for file permissions, printer access, Microsoft 365, and Intune-related targeting.

Active Directory showing user membership in department groups
Figure 6Users assigned to the IT read/write security group.
Context: Group-based access control is the normal support model for shared folders, mapped drives, printers, and later policy targeting. In this lab, the groups were prepared; the actual file share and Intune policies are configured in later labs.

7. Password and Account Settings

I configured basic password and account settings for the new users and confirmed that account properties were set consistently.

Active Directory user account properties showing password and account settings
Figure 7Password and account settings reviewed for the new user accounts.
Context: Password and account settings are common helpdesk tasks and prepare the lab for later password reset, account unlock, and delegated administration scenarios.

8. Service Desk L1 Delegation Group

I included GG_ServiceDesk_L1 as the first-line Service Desk delegation group and added Chloe Bennett and Daniel Smith as members.

Active Directory group membership showing Chloe Bennett and Daniel Smith in GG_ServiceDesk_L1
Figure 8Chloe Bennett and Daniel Smith added to the first-line Service Desk delegation group.
Context: Delegating support tasks through a group is safer and easier to audit than giving individual users broad administrator rights.

9. Delegated Service Desk Permissions

I delegated controlled first-line AD support permissions to GG_ServiceDesk_L1: password reset, read user information, and modify group membership.

Delegation of Control Wizard showing password reset, read user information and modify group membership selected for GG_ServiceDesk_L1
Figure 9Delegated common first-line support tasks to GG_ServiceDesk_L1.
Context: This gives Service Desk enough access for common account and standard access-group tickets without granting Domain Admin or Group Policy administration rights.

10. Delegated Password Reset Validation

I validated the delegation by opening the password reset workflow as Chloe Bennett using her delegated Service Desk permissions.

Reset Password dialog opened from Chloe Bennett's delegated Service Desk session
Figure 10Chloe Bennett able to access the delegated password reset workflow.
Context: Validation confirms the support model works from the Service Desk account, not just from a domain administrator account.

Validation

The lab was validated when the Nietz Ltd OU structure existed in Active Directory, nietz.co.uk was available as an alternative UPN suffix, users were created with @nietz.co.uk sign-in names, security groups were present, and group membership matched the intended department structure.

Delegation was also validated by confirming that GG_ServiceDesk_L1 contained the intended support users, that common first-line support tasks were delegated to the group, and that Chloe Bennett could access the password reset workflow using delegated permissions.

Key Technical Outcomes

This lab demonstrated how on-premises Active Directory can use an internal AD domain while still giving users a public, Microsoft 365-aligned UPN suffix for sign-in.

It also established a group-based access and delegation model that future labs can reuse for file permissions, mapped drives, printer access, Microsoft 365 administration, Service Desk tickets, and controlled pilot testing before wider rollout.

Summary

  • I created the Nietz Ltd OU structure in Active Directory.
  • I configured nietz.co.uk as the alternative UPN suffix.
  • I created the daily admin and operational user accounts using @nietz.co.uk sign-in names.
  • I created department, printer, and pilot security groups.
  • I assigned users to the correct groups for later permissions, printer access, Microsoft 365, and Intune-related labs.
  • I created the GG_ServiceDesk_L1 delegation group and added first-line support users.
  • I delegated controlled first-line support permissions for password reset, user information review, and group membership updates.
  • I validated users, groups, UPN suffixes, account settings, group membership, and delegated Service Desk password reset access using Active Directory administration tools.