Communication is culture and culture is communication.  That's first. Know that how you communicate is as important as what you communicate and work on it! Be positive! The climate of your sphere of influence is affected by how and what you communicate.

Know that successful coaching can only happen in a culture of trust, honesty, care, acceptance, and courage.

Know your four choices of influencing behavior through consequences commonly known as the ABC's of behavior.

Antecedents -- Behavior -- Consequences

There are four types of consequences and they are typically prevalent in this order of use in our management world. (My opinion)

Extinction-an absence of something
Punishment-getting something you don't want
Negative-not getting something you want
Positive-getting something you want

Here they are in order of effectiveness:

Positive
Extinction
Negative
Punishment

Just as the Hersey Blanchard Situational Leadership model tells us that you can not jump over blocks, successful coaching can not happen without a solid foundation of improving people and processes.  Improving processes is as much about helping people grow and develop as it is about being more productive.  You have to challenge people and care about their maturity all along the way.

FIRST STEP.

Start working on relationships and concentrate on creating a healthy "caring" climate or culture within your sphere of influence.

Leadership is part of Coaching and Coaching is part of leadership. With this in mind, here are some things to remember:
 

• Your investment in coaching should come from your heart.
• Coach to enhance not to control.
• Be genuine.
• Know the ABC'c of behavior and deliver consequences.
• Be a mentor.
• Honestly care about helping people improve themselves and their careers.
• Get to know people and what they want to achieve.
• Talk to them about what you can do to help them be successful and then do it.
• Recognize good performance and behavior - Record good performance and behavior - and Reward good performance and behavior.  (DO THIS WEEKLY) Catch people doing things right!!!
• Share with the coachee the definition of good performance.  Make sure this definition is measurable and be specific, i.e. improve by how much, or, accomplish how much, or, finish by when, or, inform how many, or, be what percent accurate, etc. (DO THIS OFTEN).
• Connect the "good performance" definition to organizational objectives and goals found in the organization's strategic plan.
• Let the person know how valuable they are to the organization, not to you.
• Help people find fun and worth in their work.

In the Book "Stop Managing, Start Coaching: How Performance Coaching Can Enhance Commitment and Improve Productivity", they suggest these criteria for creating excellence in a coaching environment:

• Establish Clear Performance Goals
• Provide Accurate Feedback
• Be Patient
• Create A Fear Free Environment
• Expect Success
• Encourage Excellence
• Ask Questions
• Reduce Your Ego Involvement

Here are some web page links to resources on coaching

Coaching, Mentoring and Managing
CORPORATE COACHING INTERNATIONAL, LLC
What is coaching in a business context?
Would you like to subscribe to our FREE Training Newsletter?
Fast Company Magazine
Future Leadership Through Managed Experience
Coaching programs
COACHING/FACILITATING
Articles On Coaching and Coaching "Assessment" Quizzes
"Motivation Through Coaching" by David L. Dotlich and Peter C. Cairo of CDR International
Leadership that Works
Psychologists Coach Executives to Help Businesses Thrive
 

This list of four rules of coaching can be found at this link: Coaching: The Key to Performance Improvement, by Katie Davis and Patrick Malone

Here are the essential rules of coaching:

    1. Set expectations. Clearly state your expectations and goals and explain why they're desirable both for
    the individual and the organization.

    2. Observe performance. Observe and determine the performer's needs in these areas: knowledge of
    what to do, skillfulness at execution, willingness and confidence level, and any barriers limiting
    performance.

    3. Coach. Execute appropriate improvement methods in incremental stages: giving advice, coaching for
    direct skill-building, creating challenge and inventing better tools or removing barriers to performance.

    4. Measure and evaluate the result. Compare all behaviors to results and results to goals. Raise or lower
    targets based on the performer's current competence level.
 

"Putting The One Minute Manager To Work" is an excellent read to help you form your coaching skills.  I recommend the Audio version of the book, as you can use it in the car over and over to help remind you of what you should be considering when coaching others.