Georgia - great overview - and this works well if both parties are emotionally mature or as we say in our industry has a decent "EQ". That's why I'd like to add one other - have a written tracking system to document your coaching / performance management experience that both you and your team members can refer to.  It's very helpful to have the experience (coaching goals, plans) recorded i in the handwriting or directly sourced by each team member.  In all the management training seminars I've done across the country this is the one thing missing because so many companies don't have meaningful performance management plans in place.