First and foremost, you must show your dog that he must give you total respect. The easiest way to accomplish this is to take away all privileges. That means confinement.
Until you have completed training, and established yourself as the Alpha, your dog's life must be changed.
In the beginning stages, your dog should be in a crate, kennel run or chained. He should have absolutely no freedom. He must learn that you control his life.
This is how it happens. When I put my dogs through this type of training, they began to look forward to it. As I pulled up in my driveway, I could hear them acknowledging that I was home. When I looked outside, I found them standing up, and alert as ever.
They showed me they were ready to work. They knew I was in control of them and they weren't in control of me. My male is very dominant, so I knew I had to win him over in order to win my female too. She had always looked to him for protection.
Please, don't feel bad about having to confine your dog. It will last only as long as this type of training is in process. If your dog is a barker, then you should consider investing in an Innotek No Bark Collar. Some dogs will display this behavior (increased barking) when you change their lifestyle.
Now you can also issue corrections when your dog is barking during late hours. It will fix the problem, but do you want to get up at 3:00 AM to go outside and correct your dog? I don't think so. Get a no bark collar.
Another strong point is to say what you mean and mean what you say. If you tell your dog to go into a down/stay position, you had better make sure he does it. He should comply with anything you say. I can mow my grass with the lawn mower and my dogs will remain in a down/stay right near the area where I'm mowing.
They know they had better stay right there until I issue a release command. This shows them they can trust me. It also reinforces the fact that they can't do anything unless I allow it. Mowing the grass in their immediate presence was a strong distraction that I implemented for proofing.