In an environment of pervasive and rapid change, and rapidly increasing competition for resources and markets, the survival of Australian universities will depend, in large part, on the business acumen and expertise of their 'front-line' or 'middle-level' leaders and managers β the heads of schools or departments. Nevertheless, there is a dearth of rigorous research into how the rapid transition of the Higher Education environment to a more entrepreneurial, commercial and managerial character has impacted on the role of heads of schools. This paper provides insights into the factors that promote and inhibit the capacity of heads of university schools to perform their function effectively and efficiently in the current environment. It is based on case-study research conducted in a major Australian university