Balanced scorecard is a tool that translates an organizationâ€™s mission and strategy in to arncomprehensive set of performance measures that provides the framework for a strategicrnmeasurement and management system. The main purpose of this research study was torninvestigate the challenges and prospects of BSC implementation with the intention to put groundrnfor better achievements in Public Service and Human Resource Development Offices atrnKolfeKeranio Sub-City and Wereda level. Descriptive research design was used with mixedrnresearch approach. Questionnaires and interview were employed as data collection instrumentsrnto collect primary data and document review was used to serve as secondary data source.Thernmajor findings of this research study were partial common understanding about BSC strategy,rnBSC strategies were not equally institutionalized,lack of participation in employees in thernimplementation process of BSC, the offices partially linked the strategy scorecard plan tornbudget, the knowledge and skill training given on BSC implementation was inadequate, the rolernof heads of the offices involvement and mobilization in the BSC implementation was rated asrnlowThe mainfactors contributed to challenges BSC implementation were lack of leadersâ€™rnattention, the presence of skill gap, lack of accountability, and commitment and low interest ofrnthe responsible officers to support other employees. By taking into consideration the majorrnfindings, the researcher has concluded that the Offices did not take the necessary efforts to thernrequired level in acting appropriately to curve the major challenges and to mitigate the majorrncauses of challenges in the realization of BSC. Therefore, the Offices should to sustain all itsrncurrent strengths, and improve its limitations in the most efficient and effective way to cope uprnthis competitive and dynamic environment.