The purpose of this study is to assess Balanced Scorecard implementation Practice and its chal-rnlenges on Procurement department in Ethio telecom. Both qualitative and quantitative approach-rnes are employed. The data are gathered from employees of sourcing/procurement department inrnethio telecom through survey questionnaires and 73 questionnaires were circulated all of themrnwere received and analyzed using descriptive statistical tools like Mean, standard deviations andrnfrequencies. Software called Statistical Package for Social Sciences (SPSS) was used for the datarnanalysis. The study identified major bottleneck for implementation of BSC on procurement de-rnpartment in ethio telecom are Balance Scorecard measurement implementation data sources arernnot clearly stated, BSC evaluation system was not user friendly, Performance progress was notrnmonitored periodically before formal evaluation, boss influence on evaluation was reduced,rnevaluation was not performed always based on plan, and lack of technical skill on balancedrnscorecard. Finally, the thesis concludes by proposing recommendations to management in orderrnto use different methods in solving challenges faced in balanced score card(BSC) implementa-rntion on procurement departmentrnsuch as facilitating the accomplishment of BSC goalsrn,elaborating and expounding key areas of BSC to the staff, supervising the implementation pro-rncess, providing clarification, assessing achievement of lower level employees, clearly staternmeasurement data source and validated by authorized body, execute evaluation always based onrnplan without boss influence on the result obtained, open and transparent communication, enlight-rnening staff on the importance of procurement planning and BSC to fulfil companyâ€™s strategies,rncoordination between top management and low level management and acting as source of infor-rnmation