The first step to establishing a PMO is to determine your organization's needs. The Project Management Institute's (PMI's) project portfolio management framework breaks down the three levels of work (project, program and portfolio) into 12 process groups that contain 92 processes relating to the management of knowledge areas. Examples of PMI processes/components include a project charter, project plan, work breakdown schedule and cost estimate.

Begin by defining and implementing an end-to-end project management process. This requires implementing a flexible project management process and basic tools for project planning and reporting.

PMO leaders should devote resources to developing competent project managers through formal training, coaching and mentoring. Not all projects require the same level of experience. Use a mix of internal and external hires, contractors and external service providers to allow for staffing flexibility.

Once best practice basics are in place, the PMO has demonstrated improvement in project delivery and the office has gained credibility, consider broadening the PMO's scope beyond project management to program management and portfolio management. This will help mitigate business risk.