I would say it works well if you know what you are doing, but in a shared document there is always some dumb ass in the team that does some manual formatting like using the bold-button instead of changing header type, or remove a link from an image. Then the all the references and indexes are beyond repair with the only way to salvage the document is to slowly, meticulously and painfully go through it in this outline-view and try to identify what should be a header and what should not.

If only there was a way to create a Word document that forbids manual formatting it could actually be usable.