We present a united front always.
We never did naughty step and I can't imagine we ever will. That said, I don't mind a time out/exclusion style thing for sibling squabbles - the 4 year old has on occasions been sent to his room for this and my nearly 2 year old has been put separately in a room with a stairgate for a short time on about 2 occasions, which is essentially the same thing, I just don't like the idea of trying to keep them on a step I guess!?
That doesn't happen often. Usually, with the 4 year old I will tell him what is wrong, tell him what I want him to do, warn him that he must do that or go to his room or have the thing taken away or whatever is relevant.
That said I try not to do arbitary punishments or threats if natural consequences can drive the lesson home more effectively. Obviously, if the natural consequence involves being hit by a car, then no, I'd rather do an arbitary punishment or threat to drive the lesson home, or simply intervene and have a discussion (more often than not)
I don't sweat the small stuff, but I have zero tolerance on some important things, and a more softly slowly approach on other less important things but things that I feel should be learned by school age. Things like treating my bedroom as the haven it should be, not messing up the bed or bouncing or shouting and squalling in there; go to your own room if you want to bounce around and be a nutter. Not life and death, no punishment as such, but gentle reminders, etc. That's one example. Wheras, climing on the kitchen table is zero tolerance, as its a safety thing. End effect is the same - they will not do it eventually, some things take longer than others, but the things that are simply inconvenient I just do a softly softly approach (but consistent) and the things that are very important are zero tolerance.
This means you are not constantly always always saying no and having arguments or nagging, but not letting children rampage round your house calling the shots either.
Works for me and our lifestyle, at this stage.