Sorting Contacts by Order in your Address Book
The display order of the Address Book (which shows up when pressing the “To:” button when creating a new email) can be controlled separately from how your contacts are stored in the Contacts folder. It will require an additional change to your Address Book settings to change the display of the names to First Last.
Outlook 2010 and Outlook 2013
Go to File-> Info-> Account Settings-> Account Settings…-> Address Books-> Outlook Address Book-> button Change…

Changing the sorting order of the Address Book.
Show names by
The “File As (Last, First)” sorts the Address Book based on the “File As” field for that given contact. While the default is “Last, First”, you can change this in Outlook:
Outlook 2003 and Outlook 2007
Tools-> Options…-> tab Preferences-> button Contact Options…-> option: Default “Full Name” order
Outlook 2010
File-> Options-> Contacts-> option: Default “Full Name” order
Outlook 2013
File-> Options-> People-> option: Default “Full Name” order
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