The word "指标" is formed by combining the character "指", which means to point or indicate and is composed of the hand radical "扌" and the phonetic component "旨", with the character "标", which means mark or standard and is composed of the wood radical "木" and the phonetic component "票". Together, they create a compound word where "指" conveys the act of pointing or indicating, and "标" conveys the concept of a marked reference point, resulting in the meaning of "indicator" or "target".