Step1
Get out all your shoes, sandals, boots, and other footwear. This step is especially critical if you've been keeping your shoes in various places. Shoes under the bed. Boots in the front closet. Flip-flops with your beach stuff.
Step2
If you've fallen into the "cheap shoe trap" and have accumulated too many shoes, then it's time to come clean. The "cheap shoe trap" does NOT necessarily mean you've purchased cheap shoes. It means you've purchased shoes on clearance because they were so cheap (thereby transferring the retailer's inventory problem to you). It means you've purchased shoes and never worn them. It means you've got shoes you haven't worn since, well, you can't remember when you worn them last.
Step3
Edit, edit, edit. Say goodbye to those "good buys" and those shoes posing as memories. Options include consignment shops (for never-worn-but-still-stylish), thrift stores (for slightly-worn-but-still-stylish) and the trash. Don't forget siblings and friends who have always admired your style. If they happen to be the same size, consider offering the pick of the litter to them first.
Step4
Throw out all the original cardboard boxes (unless you are going to use them for something other than shoe storage). If you can't see your shoes, then you won't know what you have or where it is. Attach and hang a wire shoe rack over the closet, bedroom, or bathroom door. (If you're renting, you can hang a canvas shoe bag over the door without leaving any permanent marks.)
Step5
Organize your shoes in the bag or rack according to use, not color. So, work and career shoes go together. Garden, garage, hiking, and other weekend shoes next to each other. And be sure to place the back of your shoes facing OUT; not the toes. This will ensure you see what everyone else sees: shoes in great shape, or shoes with heels run down, or the dreaded right-shoe-scuffed-by-the-driver's-side-carmat. Repair or discard worn shoes!
Step6
Dress shoes deserve special treatment. Purchase a few clear acrylic shoe boxes. Place one pair of special occasion shoes in each box; heels facing OUT (toward you). These boxes should be placed in the same room with your everyday shoes, but may be placed on an upper shelf in the closet. The idea is the shelf is easy to see, but hard to reach. After all, you won't be reaching up there very often. Avoid putting your shoes under the bed.