Create an outline from scratch

In a new document, switch to outline view.
Type each heading and press ENTER.
Microsoft Word formats the headings with the built-in heading style Heading 1.
To assign a heading to a different level and apply the corresponding heading style, place the insertion point in the heading, and then click Promote or Demote on the Outlining toolbar until the heading is at the level you want.
To move a heading to a different location, place the insertion point in the heading, and then click Move Up or Move Down on the Outlining toolbar until the heading is moved where you want it to go. (If a heading is collapsed, the subordinate text under the heading moves with the heading.)
When you're satisfied with the organization, switch to normal view, print layout view, or Web layout view to add detailed body text and graphics.

You can also rearrange text by dragging the outline symbols ( Symbol for heading with subtext , Symbol for heading without subtext , and Symbol for body text ) for the headings and body text up or down or to the left or right. When you drag the outline symbol of a collapsed heading, the subheadings and body text under it also move or change levels.

As you drag, Word displays a vertical line at each heading level. Release the mouse button to assign the text to the new level. Word applies the corresponding heading style to the heading, or applies the Normal style to body text.