So I spent some time trying to figure it out, playing with Normal.dotm and the various styles (List paragraph, List Number, List Bullet etc etc). And finally, when I've got Normal.dotm open (i.e. I'm editing that template file), I get my result: I apply a standard numbered list, and it comes up flush left (i.e. not indented) and hanging at 1.0cm (cos I don't use inches...) and with a tab stop applied at 1.0cm as well - funky stuff!
All of this happens in the Bullets & Numbering dialog box, shown below. You will definitely want to use paragraph styles for this. My first one is called Chapter title. You will need to begin by changing the List Type to Numbers for all of the levels, and you must both name the List and use the same named list for all Levels. You do this by selecting the List > New List.
Word's Numbering Explained by John McGhie, MVP - comprehensive and not pretty (Downloadable pdf file in letter size) - Reading this is vital to anyone attempting to use automatic numbering or bullets in a law office setting or other places where the documents are likely to be reused or heavily edited. See also How to Create a Template with a downloadable template with style-based numbering. I strongly recommend that you read both of these before doing anything with the contents of this chapter.
Law firms use numbered lists daily to prepare contracts, pleadings, letters and memos. Word makes activating and customizing numbering fairly straightforward. You can create simple numbered lists, such as A, B, C and 1, 2, 3. You can also customize these lists to setup specific numbering styles for your firm and practice group. Multilevel lists such as I, A, 1 are handled through Word's Outline Numbering feature, which is explained later in this chapter. Many firms rely on outline numbered lists to draw up contracts and pleadings. Like numbered lists, outline numbered lists can be customized.
Notice that the Font option (when you applied italics) changes only the number, not the heading text. To update the heading text, modify the heading style as you normally would. Word assumes you want all Heading 1 and Heading 2 styles included in the new numbering scheme. If you want to omit a heading level from the scheme, don't use a built-in heading style to format those headings.
And what all did I forget to do? I forgot to go to 'Styles', 'Paragraph Styles', and I went, right click 'Redefine' because I've reverted to what it was before. So that's page numbering, we used A, B, C, D at the beginning. And we're going to use 1, 2, 3, 4, 5 for the rest of it. The only trouble happens, is when you go 'File', 'Print' now, and you're like, "Hmm." "I want to print pages." and you're not too sure. So what I have to do is go to A, through to 30. So it will include A, B, C, D, E, and all the way through the numbers. What if I just need A, B, or if I just print 1-30? It's going to skip out these first pages. That's just something to be aware of when you're printing, or making PDFs, that the page numbering is a little bit stranger now that we've gone and messed around with the page numbering.
Almost everything I learned about Word's numbering I learned from the Word newsgroups (especially the Microsoft Word Numbering newsgroup) and from the MS Word MVP FAQ site. The contributions of John McGhie (especially his article about Word's Numbering Explained on the MS Word MVP FAQ site) and Dave Rado are significant. The current page represents a mere summary and application of some of that work.
Changing the numbering display affects how pages are indicated in the InDesign document, as in the Pages panel and in the page box at the bottom of a document window. The numbering display also affects how you specify page ranges when printing and exporting the document. However, the numbering display does not change the appearance of page numbers on document pages.
You may wonder whether typing 1, 2, and 3 would be easier than using the ListNum field. Although doing that may be easier initially, the value of using the ListNum field becomes apparent when you cut and paste. When a paragraph contains multiple numbered items that you move or delete, Word automatically updates the ListNum fields. Using ListNum fields assures you of accurate numbering within a paragraph throughout the document.

A multi-level list is a list that describes hierarchical relationships between the list paragraphs. These lists are also called outline lists because they resemble outlines. The list’s numbering scheme (as well as indentations) show rank as well as how items are subordinate to one another. You can tell where each paragraph fits in the list with respect to the paragraphs before and after it. You can include up to nine levels in a multi-level list.
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