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Make sure your profile is up-to-date, accurate, and matches whatever you provide to a hiring manager or recruiter.
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Stay on top of your network updates so you know if someone in your network has been promoted or switched jobs to a company where you would like to work.
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Use the Advanced People search to find second- or third-degree network members who work at a desired target company. Request an introduction to those people and ask for advice or an informational interview.
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Connect with everyone you have worked with, because these people know your professional capabilities well and could potentially recommend you on LinkedIn.
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Make sure your profile highlights measurable accomplishments you achieved at your jobs. For example, instead of saying "I managed the sales force," say "I managed a 37% growth in revenue in the last four quarters."
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Do a search and connect with as many recruiters as you can find who look for candidates in your target industry or job focus.
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Use LinkedIn Company pages to see which of your network connections works at a particular company, if anyone you know has recently been promoted at that company, and specific information about the company that you need for your cover letter and interview.
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Don't forget to use LinkedIn's job board. As of this writing, there are millions of postings available when you search the web on LinkedIn's job board.
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If you find and apply for a job using LinkedIn's job board, see if the job poster is someone in your extended network. If so, ask for a referral or introduction to that person (or, if necessary, use LinkedIn's InMail system) so you can connect with her and make a great impression!