Is it possible to have multiple InDesign documents use the same base text and dynamically update?

It's not clear to me where the notes and commentary are to be added -- in the original word doc or the InDesign file?

If the latter, there's no reason to do anything more than use place the same Word file as a link in both versions (make two InDesign files) and when you edit the Word file update the link.

Linking Word files is an option in the File Handling section of the Preferences. Keep in mind, though, that when you do this any styling applied in InDesign will be lost on the update, so it's best to define styles in Word.

When I make changes and save, each of my two InDesign files would then show the updated text. 

I suppose you alreaday learned that this still requires to open the INDDs at least once. Every change in a linked file, as the other repliers told, is recognized by Indesign, but it's though just semi-automatic.

It's also possible to place and link a Word file. This works the same way that placing images works; you place your Word file, then if you edit and resave your Word file, the Links panel shows you the little yellow triangle with exclamation point indicating that your link has been modified. (Also the little picture of a chain link on the frame itself will turn into the warning triangle.) So you could place the same source Word doc into both of your InDesign files, and then if you modified it you'd have to open both InDesign files and Update Link. And then yes, you'd probably have to do some formatting. That checkbox is in your Edit -> Preferences close to the bottom of the "File Handling" section.

I don't suggest you do this, though. It depends, I suppose, on how much you value your time. If you enjoy working on stuff in InDesign, and carefully fine-tuning your workflow, and you are acting as if your time is worth $0/hr, then any of these methods would work. But they all require you to spend time in InDesign fine-tuning that workflow. This is especially the case if you want your parent document/content store to be a Word doc. I'm looking at David's exclusion of Word documents from his suggestions, right now, and considering deleting this entire post. There's so much that can go wrong when you're trying to use Word in this way. 

That is in all honesty why I'd suggest you go with Steve's suggestion and use WordsFlow. The money you spend will save you time fighting with Word, or with InDesign's Word import filter. Also it says right on Em's support page that they can help you with "strategizing about the best way to solve a given problem with our tools" which sounds like the kind of guidance you'd need.

Like Steve, I have no connection with Em Software at all; I've just seen their products in action and often reccomend them. I actually suggest DocsFlow more often than WordsFlow, which uses Google Docs for content store instead of MS Word. 

(On the other hand, If you decide to spend $0 and go with one of the other suggestions in this thread, we're here to help you out.)

As mentioned - you have the option of conditional text. Would require turning on the conitional text when exporting the instructor level version - which is a very good option.

If you're planning on having different pages attached as the example you can use InDesign book - you just need to keep 2 book files.

In 1 book file you add all the employee 'chapters' as different files.

In the 2nd book file for instructors - you can add files 'chapters' between the employees.

So you only update 1 set of files (as they are used in both book files).

Hi,

you could use the content collector tool, which can link textframes (and every other object) across documents:

https://helpx.adobe.com/indesign/using/linked-content.html

When you change the content of a textframe in one document you can refresh the textframe in the other document(s) via the links panel.

You can even map styles from one doc to another.

You just have to keep the text you want to keep the same between documents in separate textframes

You can use conditional text or an InCopy workflow. Either one should work but I would use conditional text based on the information provided. 
These suggestions do not include Word. 

You cannot do that well in InDesign itself. It's not designed for it.

The best solution is a third party plug-in from Em Software called WordsFlow. (I have not connection with this company, by the way,) Read about it here:

http://emsoftware.com/products/wordsflow/

**long AGO college minor