We're generally familiar with code smells here, but just as damaging if not more so are when the business side of things - as much as it falls within our domain - is going wrong.
As examples, the inverse of anything on the Joel test would be considered a major process smell (i.e. no source control, no testers) but those are obvious ones and the point of "smells" is that they're subtle and build into something destructive. I'm looking for granularity here.
To start off with here's a couple (which can be turned into a list as the answers come in)
Writing code before you have a signed contract with the client
Being asked for on-the-fly estimates ("just a rough one will do") for anything which will take more than a day (a few hours?)
Ancient cargo-cult wisdom prevails (personal example - VisStudio sourcesafe integration is banned)
You've stopped having non-project specific group meetings (or lack any similar forum for discussion)
So what are some other process smells, and just how bad are they?