Since the Penguin update on April 24/25 of this year, most people in SEO have been scrambling to determine the impact and how to avoid issues. After much research and testing, here’s my attempt to simplify (you might also review The New Laws of Link Building):
The way Google will connect the dots post-Penguin is the following:
Blog Posts should contain your keywords. When your posts are indexed by Google, they will take note of those keywords. Then, Google will find a link to a relevant page within your website (where those same keywords are also found). The anchor text can be anything, but it should be natural. Shoot for one out of three external posts, where you use something other than your exact match keyword as the anchor text.