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In this Microsoft Word 2016 tutorial, the instructor demonstrates how to insert bookmarks and cross-references into a Word document. Each heading is defined with a specific style, making it easy to navigate through the document. Bookmarks can be used to quickly locate specific headings, while cross-references allow for easy jumping to different sections of the document. The tutorial begins with inserting a bookmark for a specific heading, example being heading number 10: building maintenance. This feature allows for quick and easy navigation within the document.