She has a bad heel, by the way (5)
I believe the answer is:
helen
'she' is the definition.
'a bad heel by the way' is the wordplay.
'a bad' indicates anagramming the letters.
'by' says to put letters next to each other.
'the way' becomes 'n' (Compass direction - North).
'heel' is an anagram of 'hele'.
'hele'+'n'='HELEN'
'has' is the link.
(Other definitions for helen that I've seen before include ""The face the launched 1,000 ships"" , "femme fatale" , "Beautiful daughter of Zeus and Leda who was abducted by Paris" , "She started Trojan War" , "-- Mirren, English actress" .)