Normal-order beta reduction contracts the leftmost outermost beta-redex. If a lambda term has a beta-normal form, this strategy reaches it. It is useful for implementing Church Boolean conditionals because an unused branch can be discarded before it is evaluated.
A finite beta reduction can be rearranged into standard order, contracting earlier residual redexes before later ones. In particular, a lambda term with a head normal form reaches one by head reduction, and a term with a beta-normal form reaches it by normal-order beta reduction. Head reduction contracts the outermost redex on the left application spine, including under initial lambda abstractions.
If an untyped lambda term has a beta-normal form, leftmost outermost beta reduction reaches a normal form. Thus an infinite normal-order computation certifies the absence of a beta-normal form. This is the normalization result needed to make a lambda simulation respect undefined outputs.
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