This has been plaguing me for awhile. I am using Outlook 2013 with my own Exchange Server.
When I receive an email from a contact, it is displayed in the way prescribed by their mail server. So if someone sets their username to "smith, JohNny", then this is what I see in my inbox.
I would like to make it so that when I receive an email, Outlook attempts to display the email using the "Display As" field of a contact saved in my contacts folder.
The one workaround that I have found is to create a "Contact" in exchange and add the person's email and proper display name. This seems to work flawlessly, but it does not help for my email accounts where I do not have admin control over Exchange (such as my work email).
What is the best solution here? This seems like it should be the default behavior of Outlook -