Margaret of Homemade City stenciled this for a school library and notes that the idea would translate nicely to a home book collection. It appears that this library is alphabetizing by author (as most do), but you could also alphabetize by title if that works better for your brain.
Each title doesn't have to be in order (that's pretty unrealistic with young kids), but breaking your books down into smaller alpha groups would definitely reduce the amount of time you spent hunting for specific titles. And having kids learn to find the first letter of the title or author and sort this way is an educational bonus.
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(Image: Homemade City)