This paper discusses the link between teaching and research, with emphasis on how best to manage core business of a higher education institution. The author argues that institutions should seek to integrate these core strategies, and agrees that 'universities need to set as a mission goal the improvement of the nexus between research and teaching' (Hattie and Marsh 1996: 533). A dual mechanism to achieve this is suggested: effective strategic planning at institutional level, combined with a focus on the culture and characteristics of departments and disciplines as a way to understand the nexus and exploit its benefits.