The main aim of this study was intended- to analyze the key implementation challenges ofrnbalanced score card (BSC) at local level in Addis Ababa city administration woreda two of casernof Gullele sub city: -for improvement of strategic planning and performance measurement.rnThe focus on balanced scorecard in Gullele sub-city woreda-2 administrative office isrnbecoming an efficient and effective performance management system to translate the woredaâ€™srnvision into a clear measurable outcome that define success in providing services and that arernshared throughout the woreda and with customers and stakeholders. Qualitative and quantitativerndata were collected from the target population employing purposive and random samplingrntechnique respectively.rnThe collected data was processed and presented using tables and figures and analysis was madernusing descriptive statistics. The identified key success factors were; provision of training forrnawareness creation, employeeâ€™s involvement in cascading activities, availability of documentsrnrelated to BSC implementation and good work environment where by managers at all level workrnin collaboration with employees.rnOn the other hand, this study revealed that the key failure factors that affect implementation ofrnBSC were lack of proper understanding by the employees as a result of nonexistence ofrnrefreshment training, lack of positive attitude and passive resistance observed on employees.rnTherefore, To assure the continuation of positive outcomes achieved as a result of BSCrnimplementation all concerned bodies should work in collaboration to create understanding ofrnhow important management tool BSC is for the organization to reach its goals. In order tornrecognize implementation of BSC for improvement of strategic planning and performancernmeasurement in the sector made smooth transformation of the above mentioned challenges intornaccomplishment and additional ability of the organizations.