The purpose of the study was to assess the design and implementation ofrnBalanced Scorecard in Gulele Sub-City education offices and thereby to see the adequacyrnof the procedure to design Balanced Scorecard, the extent of Balanced Scorecardrnimplementation success and identify the major challenges encountered during the designrnand implementation process and then provide alternative recommendation to thernidentified challenges. To attain these objectives, the study employed descriptive surveyrnmethod. Accordingly, survey questionnaire, focus group discussion and interviewsrnquestions were prepared and pilot tested and administered to a sample of 114 subjectsrnwhich are composed of 11woreda Heads, 6 Core Process owners and 99 employees. Arntotal of questionnaires were properly filled in and returned. Interview and documentrnanalysis were also made to complement the information obtained. All the closed endedrnquestions of the questionnaires were analyzed quantitatively using percentage andrnmeans, whereas the data obtained from open ended questions, interviews, focus grouprndiscussion were transcribed and narrated to supplement the quantitative data. The majorrnfindings of this study indicated that the readiness for Balanced Scorecard design andrnimplementation made by the offices were good. The designing phase was done properlyrnin terms of strategic plan preparation, theme identification, and strategic perspectives,rncorporate objectives and measures preparation. With regards to Balanced Scorecardrnimplementation, it was in direct stage at corporate level and at process level; however, itrnwas at near the beginning stage in individual level. Lack of adequate knowledge onrnBalanced Scorecard, insufficient participation, lack of consistent monitoring andrnevaluation, gaps in setting measurement and targets in the cascading process, resistancernto change and in ability to automate at individual implementation process, lack ofrnincentive and job displacement is also one of the factors that lead the employeesâ€™rnresistance to the implementation of the BSC, problems of delivering continuous trainingrnand far beyond education to officers are the major problems. The researcher concludedrnthat the major causes of the above challenges were derived from lack of understanding ofrnthe tool and its early attachment of performance of the employee with payment. It isrnrecommended that the education offices have to create enabling environment to increasernthe involvement of employees, revise the cascaded objectives, automate thernimplementation process and organize discussion as well as awareness creation programrnto check and recheck the implementation process.