KPIs are generally set on a timeframe where they usually become meaningless by the end of that timeframe. For software, goals set for a year out are almost never going to be meaningful by the end of the year.
Pick your flavor of Agile or whatever process your team can agree to, but I doubt the term "KPI" will ever come up when doing real life planning and work.
1) It's pretty clear then that you don't have much experience with planning at level beyond a few people if you've never heard the term KPI come up in software