This study assessed the challenges faced while implementing the balanced scorecard systemrnparticularly in measurement, cascading and evaluation tasks in the case of Information NetworkrnSecurityAgency (INSA). The study tries to evaluate the challenges faced by the Agency inrnimplementing the tasks as compared to the standard literatures of the system. The study adoptedrndescriptive research with a primary purpose of assessing challenges faced by the Agency inrnimplementing the balanced scorecard as their performance and strategic management system. Inrnorder to assess the implementation status, the study has been conducted by designing five-pointrnlikert scale questionnaires and semi-structured interview questions.rnThe total sample size of the questionnaires is 286 involving team managers and permanent non-rnmanagement employees of the Agency. In this case the study adopted probability samplingrnparticularly stratified random sampling technique based on size of positions held (middlernmanagement and non-management) in each department (as strata) to select 286 samplernsize,where as in the case of semi structured interview the study adopted purposive samplingrntechnique to select 5 respondents who have the working knowledge of the system.rnAccordingly the study identified the challenges such as insufficient KPI to measure objectives,rndeficiency in assignment of measurement data validation body, boss influence on evaluation,rnabsence of clear attachment between high performance and reward, and lack of continuousrncommunication on changes of the middle level scorecard to lower level as the challenges in thernstudy.rnBased on the findings the study proposes to the Agency to conduct intensive awareness creationrnon how to produce relevant and sufficient KPI so as to capture full spectrum of the objectives, tornassign measurement data validation body to each measurement so as to reduces and- baggingrnor data gamming, to communicate clearly changes in higher tiers scorecard to lower tiers andrnfurther more to attach visibly the reward-system with performance result to effectively takernadvantage of the Balanced Scorecard system.rnKey words: Balanced scorecard, Performance measurement, Cascading, Evaluation