In brief (quote):
The Joel Test
- Do you use source control?
 - Can you make a build in one step?
 - Do you make daily builds?
 - Do you have a bug database?
 - Do you fix bugs before writing new code?
 - Do you have an up-to-date schedule?
 - Do you have a spec?
 - Do programmers have quiet working conditions?
 - Do you use the best tools money can buy?
 - Do you have testers?
 - Do new candidates write code during their interview?
 - Do you do hallway usability testing?
 
For more see www.joelonsoftware.com