A substantive area of public policy relates to governance, especially in the post-reform era. In New Zealand District Health Boards are Crown Entities which have been set up with "arms' length" corporate structures and tasked with funding and providing public health and disability services. This study examines how Boards operationalise governance demands in the current public policy environment. It will assess the relative emphasis placed on preparing the organisation to adapt to future challenges, by investing in long term sustainability and capability performance; compared with short term conformance demands of regulatory and compliance monitoring of staff outputs. The assessment of Board meetings, over eleven months, of a medium sized District Health Board showed that there was a preponderance of conformance activity, rather than a balancing or even a surfeit of performance activity. The results will be used to discuss what this means for organisational success or failure in the health environment