The next stage is to define your assumptions in regards to the complexity of the functional work your PMO is undertaking and the level of automation that is supporting each functional area.

If we take an example for Financial Management: In this example I'm undertaking some standard budgeting, Earned Value and forecasting so I'll assume that is 'Medium Complexity' however I am trying to support it using a combination of basic admin-heavy Excel Spreadsheets which I feel is 'Low Automation'. Using the reference table below I can then determine that the 'Movement for Financial Management is 'Small Increase'. This basically means the baseline FTE figure you calculated in Step 1 will be uplifted slightly when we move into Step 3. Therefore:
 
TABLE 6 - Assumption Reference Table

Movement	Variable Mix
Large Decrease	Low Complexity, High Automation
Small Decrease	Med Complexity, High Automation Low Complexity, Med Automation
No Change	High Complexity, High Automation Med Complexity, Med Automation Low Complexity, Low Automation
Small Increase	High Complexity, Med Automation Med Complexity, Low Automation
Large Increase	High Complexity, Low Automation

You should determine this movement for all Functional Areas depending on the mix of automation and complexity (both of which need to be determined for each Area on an individual basis). If you feel that a Functional Area listed here is outside the remit of your PMO then don't include the estimate, for that area, in the final calculation.

The final step is to create your more detailed estimate...