I completed my Urge to Purge challenge two weeks ago! This was my plan:
Phase I: Purge
Phase II: Re-organize.
I did this in three parts: a) my craft room, b) my craft room closet, c) the stuff piled just outside of my craft room.
Since I am pretty organized, the re-organization was completed rather quickly. See the piles of stuff (post purge...pre-organization) before & after pictures: