You are probably already doing most of this, but I can tell you what I do. I have a Jr. 1st class and all but 2 students are reading independently at least my lowest level of books.
I use a phonics based program, and individualize it for each group. I am blessed enough to have an aide during the morning, so I have 5 reading groups going, none of which is over 4 kids. We have reading rotations every morning...5 stations at 15 minutes a pop...sometimes they run long, but not very often. The rotations are:
1. Teacher: we work on that weeks letter, blending sounds together (ca da etc.)...each student has letter cards, and I say show me cat or whatever and they do, then I show letters and they read them for me.
2. Round Table: Students have seatwork...usually a letter/sound worksheet depending ont he group. My highest readers have reading worksheets, while my lowest are telling me beginning/ending sounds of words. I explain to each group thier worksheet right before they go there.
3. Computer games: I have the kids on Starfall.com or a phonics based game.
4. My assistant: She works on a phonics based program also. Her's is canned, so she needs little to no direction from me.
5. Seatwork: My assistant assigns worksheets that go along with her reading program.
In addition to this, we assign weekly sight words that the kids are tested on. I tetst on their ability to read the words, first grade does both reading and spelling the words.
I'm not sure if this helps you, if you need more information let me know. It's quite a bit of work to get going, but once it goes it is a piece of cake!