Relate training to real flying. For example, ground reference maneuvers are directly supportive of pattern work, but many teach as a stand-alone "schools" exercise. Make the student tell you where the wind is, what it does to the plane, how s/he addresses that question in ground reference. Same with stalls; try to put them in a realistic context.
Use checklists from the start and make them a habit. Warn them that when things get out of kilter, like you have to do a go-around, falling back on a checklist will help prevent the wheels up landing scenario. Flying out to the training air, incorporate standard rate turns, 500 fpm rate of climb and other practices so the student is always learning, always perfecting.
Instead of doing an hour in the pattern, take off, fly to a nearby airport, do several TO/Ldg, return and so several. Gets the student used to the idea that a flight is a continuum. Take-off, departure, cruise, approach, landing, all with checklists and constant situational awareness. Not just droning around the pattern.
Help the student see the big picture. Take them to low-use uncontrolled, high use uncontrolled, etc., diverging runways, etc., so the student is not flustered when going to a different environment. He's taking cross-wind practice on 30 and here comes a small jet out of the 1500 overcast with a 5 mile final on 25, the favored runway and an instrument approach, first radio announcement Huh? What's going on? What should the student know and do? Why is this happening?
For some instructors, it's see one, do one, teach one. The student can get the idea that all aviation is a set of little rituals, and when the student gets outside that comfort zone we have problems, such as the inability to deal with another plane that flies a non-standard pattern.
Explain each instrument to the student and ask them what it does. If it reads high or low, what does that mean and what should the student do?
Teach them to be pilot in command. Part of that means accepting responsibility and therefore hopefully know what they are doing and why. Have them able to answer the question, "what are you intentions?"
Much over 1 hour and most student's are not getting best value for the money.
Use the radio clearly and concisely. Radios don't fly airplanes. There is a flow to radio communication - learn and use it.
Even if the student swears s/he only wants to fly Dad's Cub around the farm field, they will be signed off to fly into busy airspace and they need to be able to function there, so they need to have at least an appreciation for more complicated flight environments.
To do this and keep the hours as low as is reasonable, the instructor has to be always "in the game" and use time and situations wisely without overloading the student.