Use your compass to find which direction is true north, which is different from magnetic north. If your compass does not adjust for magnetic declination, the difference between magnetic and true north, then you will need to make the adjustments yourself. The National Geophysical Data Center's Estimated Value of Magnetic Declination website calculator can give you the declination for your location.
Put your sundial in a sunny location. To have it work all day, the sundial needs full sunlight all day, so avoid any locations that receive shade even part of the day.
Position your sundial with the shorter side of the triangle facing north. This will make the part of the gnomon that extends beyond the triangle also point to the north.
Look at your sundial from above and view where the shadow of the triangle is on the surface of the sundial. The shadow should fall on a number that corresponds with the current time.