Also: Task Complete Definition, Punch List
A Team’s universally agreed-upon criteria for what makes a unit of work “potentially shippable.” This is a checklist of steps that complete each unit of work (e.g., task or user story). It may include items like “documentation created,” “code review completed,” “all tests created and passing,” etc. The Definition of Done usually takes the form of an information radiator, being posted prominently in the team’s workspace.
A well-crafted Definition of Done may prevent the accumulation of technical debt that naturally arises when team members define “done” loosely and colloquially.
In Agile Learning Labs’ Blog post “How To Create The Definition Of Done” there is detail about the steps to creating a Definition of Done and how to keep the team on track.
Background of term
In Extreme Programming, the Definition of Done is called Task Complete Definition, a Punch List, or a Binary Milestone.
Agile Learning Labs blog post – Definition of Done