A definition of "done" is a clear and concise list of requirements that a software increment must adhere to in order to be considered completed. This allows everyone involved in the project to understand what "done" means, ensuring consistency and quality. However, organizations may need to create their own version of DoD as they apply Agile methods for the first time, addressing issues such as inconsistent standards, lack of transparency, and poor communication. A well-defined DoD can lead to better decisions, planning, and execution, minimizing risk and improving product quality. It captures activities that can be committed by the team, leading to improved processes and clearer communication at each level, including story, sprint, and release.