It is fine to have KPIs. When KPIs go out of control it is a sign of culture issues, or whatever you want to call it.
KPIs are just that. Indicators. Temperature is an indicator of good climate. If someone's answer to "it is cold in here" is to put a lighter under the thermometer then the problem isn't the thermometer, right? It is the people who are confusing indicators from goals. And that is a culture thing.
If that is your climate though you can still recover from it (I know we are doing way better than before at least:)).
First steps are to embrace ambiguity and uncertainty in evaluations. The culture twist (when I have seen it) comes from "Noone recognises my work" -> "Lets define KPIs for your work" -> "I am not evaluated fairly, look at how much work I do compared to guys that are evaluated better" -> "Lets define guidelines for evaluations based on our KPIs" -> "Everyone (except me) is cheating to score high on the KPIs to get better evaluations" -> "We need better KPIs that can't be cheated on" -> "We are doing a whole amount of stupid stuff because people worry about KPIs".
I think the first two steps are fine. There is direct business value in being able to compare how you are doing compared to the previous month, or some other department or whatever.
The problem comes in the third step - once the KPIs determine how someone is evaluated, then you are in a downwards spiral, because now you are saying that how you get there isn't as important as getting there. To get out of that you need to embrace the ambiguity that comes with letting evaluations happen, and maybe be "unfair".
Basically - uncertainty in evaluations is better than defining evaluations on KPIs. Solve the uncertainly by more discussions and reasoning, not by more rules.