I experienced the "bad ending" of this productivity metric trickle down: OKR. This startup wanted not just team-based 3-month review Objective Key Result but also individual one, and on top of it, tied stock option to OKR. It was a robotics startup so very cross-domain teams (Software, Hardware, Embedded, DevOps, HW design, HW testing, HW maintenance etc etc).
The result? Developers became lonely islands. There were no "Tim" anymore. When I (Software Integrator) encountered an issue, that I just couldn't figure out but had a hunch it must be a deep-rooted issue, went to the expert (control/kinematics) for feedback. The answer I got was "I'm sorry I really want to help you but my OKR deadline is very close, and I simply don't have time". He could've probably fixed it in a day or less, but it ended up taking 2 weeks.
The problem turned out to be quite deep: inside layer upon layer of C++ mega monorepo, I found that boost library and a custom kinematics library had implicit struct copy and the different libraries (more than two) used different order for representing translation & rotation (xyz, rpy, Euler, Quaternion) and all of the ordering of each components were different. Somehow over 2 years of operation nobody got troubled by this until our new team had to use it.
Afaik I reported it to the Software team, but again, because OKR, nothing was done about it.