Organizations compete in a very complex and challenging context that is as a result manyrnfactors from globalization, aggressive competitors and rapid change in technology amongrnothers. For organizations to gain and maintain a competitive edge they must be able torndevelop and execute strategic plans with precision. One of the major tools that helprnachieve this is the balanced score card. The balanced score card was developed in earlyrn1990â€™s by Kalpan and Norton and was designed to give companies the informationrnneeded to effectively manage their business strategy. It has additional perspectives otherrnthan the traditional financial perspective which include customer, internal businessrnprocess and learning and growth. The implementation of the tool however, has been arnchallenge to many organizations. Hence the main purpose of this study was to determinernchallenges of the implementation of balanced score card in Ethiopian InsurancernCorporation. The research approach used in this study was the mixed methodology, inrnwhich the qualitative as well as the quantitative research methods were used. In thernqualitative research method interviews were conducted from the BSC project teamrnmembers where as in the quantitative research questionnaire is used for the employees ofrnthe corporation. Some of the benefits of adopting the tool were that it enabled staff tornfocus on measurable targets, ability to focus on key objectives, assisted on puttingrnemphasis on specific key measures, helps in monitoring of key performance. ThernImplementation of balanced score card has however had challenges which include but notrnlimited to lack of clear understanding of the balanced score card, poor leadershiprninvolvement, lack of training to staff, poor IT support, lack of representativeness of thernBSC project team, lack of involvement of the whole organization, poor planning and lackrnof proper communication and resistance of BSC. The findings of the study should bernunderstood and valuated in light of limitation of the study. The study highlightedrnorganizational practice recommendations to overcome challenges of implementation ofrnthe balanced score card.