One of the problems would seem to be that as a division/department IT organisations don't have measurable strategic goals. If they did it would be easier to set the goals for the individuals.
e.g. If there was a departmental initiative to reduce the number of problem tickets raised, then, you could set an individuals goals based on the number of tickets related to the software they look after.
Since software development is largly a collabarative it would make more sense to set goals at the team level, and, then rate individuals according to thier contribution to the team.