For intermediate level conversation students, I like to use the book "Easy True Stories." It has a sequence of pictures that tell the story and a brief written prose to describe the pictures. I read it with my student and point at the pictures. We lay out any vocabulary that may be new. Then I have my student tell me the story using only the pictures. I write down what s/he says and correct him or her afterward. I point out the major mistakes in fluency and show how to correct them. Then I have the student say the story a 2nd time. And we do another round of correction. I leave the student with my notes so s/he can continue practicing talking about the story at home. Then I ask the student questions about his opinion or what would he do in that situation. Or has something similar ever happened to the student or to someone s/he knows. I'll also share my own opinion or experience and then ask the student to summarize what I said using reported speech.