This document discusses what organizations need to provide to cultivate engaged employees. It argues that beyond just paying employees and providing basic job requirements, organizations must foster potential, autonomy, competence and relatedness. Employees want to feel that they have autonomy over their work, that they are recognized for their competence, and that they belong to a supportive team. The work environment, including supportive managers, flexible processes, and empowering principles, is critical for engagement. When organizations provide this type of environment, it can lead to innovation, productivity, retention and fulfillment among employees.

1. Fostering
Potential
What organisations need to provide in order to
cultivate and inspire great employee contribution
Lisa Renn

2. Fostering
Potential
What organisations need to provide in order to
cultivate and inspire great employee contribution
by Lisa Renn
Copyright © 2015
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3. Table of Contents
The traditional picture 1
What’s on offer? 2
What do engaged employees have? 5
Self Determination theory 5
The work environment 9
People 9
Processes 10
Principles 11
Conclusion 12
About the author 13
Bibliography 13

4. Page 1
The traditional role of an organisation has been to seek employees that will do the work that
needs to be done to ensure the company’s growth and increased profit margin. In return the
employer provides appropriate remuneration to the worker to live comfortably. The idea that
there is anything beyond this exchange of a ‘fair days work for a fair days pay’ has arisen due
to ‘the inevitable encroachment of mediocrity’ (Seth Godin) that occurs when employees
are not engaged or motivated by their work and start to view it as their job instead of valuing
the contribution they make.
When the need for a position develops the organisation seeks someone who has the skills
to be able to do the job. Once found, the new employee is then shown what to do and, after
a settling period, expected to do the work. Both employee and employer are filled with the
possibility of what they will contribute to the organisation.
The new employee has hopes their new role will be better than their last, and the employer
looks forward to them getting the work done that saw the need for the position in the first
place. All has started well.
The problems begin because humans are not robots and to perform at their best, need other
input to keep the motivation high. This other input involves recognition, feedback and an
environment that allows for growth.
Fostering Potential

5. Page 2
As shown in the model, the first step on the ladder is the job which entails providing the
basic skills and materials to fill the role. When the employer feels their obligation to provide
motivation and skill development ends after the initial orientation period the employee is left
to get on with the work. The employee soon learns the skills required and settles into routine.
Any further input from the organisation comes from the direct supervisor possibly as stress
and pressure to perform better. This very quickly leads to low productivity, low engagement
and high staff turnover.
Offering more money to slow this slippery slope of declining motivation and increased stress
doesn’t work; there is evidence to suggest that once the individual is being paid what they
believe to be a reasonable wage any further increase does not increase motivation – in fact it
could decrease it- and it certainly won’t stop them leaving if they are not fulfilled, or at least
engaged in their role.
In order to foster the potential greatness in the employee, there are more steps involved to
ensure they are always, or at least mostly, motivated to contribute to the company because
they love the work they do.
INNOVATION
PRODUCTIVITY
RETENTION
FULFILMENT
INSPIRATION
ENGAGEMENT
PERKS
PROFESSIONAL DEVELOPMENT
JOBS
PURPOSE
x10
x8
x6
x4
x2
x1
HIGHER NEEDS
BASIC NEEDS
PEOPLE
PROFIT
© Lisa Renn 2015
Fostering Potential

6. Page 3
It’s mandatory to provide professional development as this is an
important factor in a person’s career development, to foster growth,
but it’s not a big factor in staff retention. Staff training does not
separate one organisation significantly from another, it represents
a ‘given’ rather than a special individual consideration. Factors that
lead to engagement and fulfilment include but are more subtle than
just providing access to great training.
Those organisations that consider only the basic needs of their
employees, having their focus primarily on the profit end of the
organisation are doomed to be forever complaining about their staff
and their lack of enthusiasm for the business. An over developed
focus on profit can lead the business to put increasing amounts of
stress on their employees to perform, to sell, to create and to provide
great customer service. This would work well if employees were
robots, as you could simply turn up the speed dial. But in humans
stress does not create increased productivity it simply creates a
culture of competition, rivalry and subterfuge.
People’s skills and contribution – the work they do in the
organisation- is responsible for generating the required profit.
However, it’s not what they do that deserves the focus, it’s how and
why they do their job that creates engagement. Organisations that
appreciate the importance of the human factor in their business
create more productive work environments, without the stress.
Offering perks to attract and retain great talent shows a shift
of emphasis toward people however what is known about
human motivation is that once the reward is expected it loses its
effectiveness and becomes seen as inevitable and therefore, beyond
the enticement to join the company at the job interview, the perks
lose their shine.
Create
something
NOW!!
“
”

7. Page 4
In his book ‘Drive’ Daniel Pink cites scientific research that shows
when you offer rewards for a task you can actually decrease an
individual’s intrinsic motivation (internal drive) - this was shown in
both children and adults. Results from all over the world showed
the higher the reward the worse the performance, refuting the idea
that providing a perk or reward is effective for motivating people to
higher performance or engaging them in the role. The study results
pertain to tasks that require problem-solving ability, creativity and
initiative. Tasks that involve following a set formula time and again
with no need for ‘thinking’ showed that external rewards could be
effective.
Using rewards as an occasional and unexpected perk after the task
has been completed can be effective for maintaining motivation.
Pink states ‘by limiting rewards for non-routine, creative work to the
unexpected, “now that you’ve completed the task” variety (instead
of “If you get this right-then you will get the reward”) will avoid the
unwanted down turn in motivation seen when people are performing
for expected rewards.’ Using an unexpected reward, once the project
is complete, can instead be perceived as recognition for a job well
done. Instead of perks or tangible rewards Pink cites research that
suggests using intangible rewards first - informational rewards are
what people crave. Positive feedback improves intrinsic motivation.
Positive
feedback
improves
intrinsic
motivation
“
”

8. Page 5
What do engaged
employees have?
The Gallup organisation interviewed one million employees over a twenty five year period
and identified those situations that contributed most substantially to employee satisfaction
and engagement at work. The most influential finding was that ‘talented people need great
managers.’ Following on from this they surveyed eighty thousand managers to find out what
made a manager great and put together twelve questions which most accurately measured
staff engagement.
Of Gallup’s twelve questions, one focusses on the importance of recognition and positive
feedback. This particular question was also identified as being one of the six most important
questions an organisation needed to poll well on in order to align with desired business
outcomes:
“In the last seven days, have I received
praise or recognition for good work?”
So it seems organisations could be saving money on perks
after the original hiring decisions have been made.
On the model, the other end of the ‘people factor’ is
engagement.
Self-determination theory (SDT) provides a brilliant
template for staff engagement as its creators Deci and Ryan
put it forward as an explanation of ‘how to support our
natural or intrinsic tendencies to behave in effective and
healthy ways.’
Self-
determination
theory (SDT)
provides
a brilliant
template for
staff engagement

9. Page 6
This confirms my belief that people want to do their best. If you think
back to when you first started a job- the ideals and expectations
of the contribution you could make, but circumstances, work
experiences and the environment you work in can beat down
these lofty thoughts as you realise the organisation doesn’t provide
the surroundings in which you feel free to contribute. It’s possible
you stopped trying and started accepting your situation or moved
somewhere else to a work place that did want your full contribution.
In order to feel part of something and be fulfilled, SDT states we
need the opportunity to feel we have:
• Autonomy
• Competence
• Relatedness
This is the blueprint for organisations to fully engage and perhaps
even transform and fulfil their employees and yet often staff
engagement is only thought about in terms of relatedness. That
is, getting along with your team and having a sense of belonging.
Clearly this is important because feeling you belong means you feel
confident that you will be supported and this provides courage and
confidence to contribute.
Relatedness leads to competence. If you feel the people around you
are backing you, then you are more inclined to contribute without
fear of ridicule and this allows you branch out with confidence and
show what you can do.
The need for competence is not only about being taught how to do
something well and for you to feel good about your skill level. It is
also the external recognition of that competence that’s vital.
...often staff
engagement
is only
thought
about in
terms of
relatedness
“
”

10. Page 7
Six of Gallup’s twelve questions demonstrated the strongest links to
desired business outcomes and five of this top six can be linked to
demonstrating and being recognised as competent:
1. Do I know what is expected of me at work?
2. Do I have the materials and equipment I need?
If so, I have a better chance of getting it right and
demonstrating competence.
3. Do I have the opportunity to do what I do best every day?
If so, I have the opportunity to display to myself and others
that I’m competent.
4. In the last seven days, have I received recognition or
praise for good work?
If so, then I know my competence is appreciated and
acknowledged which gives me confidence and motivation
to continue.
5. Is there someone at work who encourages my
development?
If so, I know that what I have done in the past is good and
I am worthy of investing more time, money and effort into
and I am more confident and secure to continue displaying
my competence.
The sixth question on the most powerful business outcome
predictor list was about relatedness:
6. Does my supervisor, or someone at work, seem to care
about me as a person?
The traditional focus of staff engagement is on this principle of
relatedness and usually involves surveying staff to get their opinions
and encouraging staff to bond as a team. These are worthwhile
activities but are only one part of the bigger picture of engagement.
The final thread in self-determination theory is autonomy and this is
not really picked up in any of Gallup’s twelve questions but I believe
Engaged
employees
get to
demonstrate
competence
daily
“
”

11. Page 8
is equally, if not more important than the others. If there was one
of Gallup’s top six questions that touched the tip of the iceberg of
autonomy it would be: Do I get the opportunity to do what I do best
every day? Its limitation is it doesn’t add- Do I get to do what I do
best every day in a way that I want to?
In his book ‘Drive’, Daniel Pink describes high performing companies
who have left traditional business protocol behind and allow their
staff autonomy over the 4T’s:
• Task
• Time
• Technique
• Team
These companies, such as Google, 3M and Atlassian are putting
trust in their employees and reaping the benefits of staff who are
innovative and engaged in not only their work but the missions of the
company. I would argue when you allow autonomy as the icing on
thecakeofrelatednessandcompetenceyouachievetransformation
and fulfilment of your employees and your organisational goals, not
just engagement- autonomy is the special sauce.
By allowing autonomy you start to tap into the higher purpose of
the individual and allow them the freedom and challenge of creating
something or a way of doing things that is unique to them. In this
way they will be utilising the skills they were born to use.
The provision of the appropriate environment, structure and support
can then align the higher purpose of the individual with the strategic
aims and higher purpose of the organisation. The individual knows
they are making a contribution to the organisation in a meaningful
way that is recognised, appreciated and fostered.
Autonomy
is the special
sauce on
top of staff
engagement
“
”

12. Page 9
A critical piece... the
work environment
The perfect environment provides security and opportunities
for self-expression. The work environment creates the space for
contribution and is made up of the people in the team, (more
particularly the manager or supervisor), the business processes or
the way things are done, and the principles or culture of the group
that governs behaviour and attitudes.
People
What the Gallup organisation found as a result of testing their
staff engagement tool between and within organisations was the
manager or direct supervisor was the most important factor in staff
engagement. They concluded ‘people join an organisation but
leave a manager.’
The perfect
environment
provides
security and
opportunities
for self-
expression
“
”

13. Page 10
Processes
Pink comments that businesses and organisations being man-made, that is, not created in
nature, are destined to be imperfect and become outdated. However, the way that most
companies run is how they always have. The argument for change states that as more and
more jobs are automated and can be done by machines, the jobs that are left for us humans
are those that require thinking- problem solving, creativity and innovation. In order to most
effectively carry out these types of higher thinking jobs, the business requires a more flexible
structure that allows the potential of each employee to be fostered and tapped fully.
Case Study:
Jet Blue is an American airline that allows their customer service operators to work from
home. It’s reported that in this way they recruit more well qualified people who cannot or
don’t wish to work in an office, such as the retired, disabled and stay-at-home mums. JetBlue
has ranked highest in customer satisfaction among low-cost carriers in North America,
a customer satisfaction recognition received for the eighth year in a row. Founder David
Neeleman stated JetBlue looks “to bring humanity back to air travel”- this was in regard to
their mission to be low-cost airline but still have some of the bells and whistles of inflight
entertainment. It appears this mission also extends to the structure of their business and
allowing this flexibility in how people do their work provides that human touch. This pays
off in engaged employees and great customer service as each employee can put their own
touch to the work and do what they do best.
Atlassian, Google and 3M all allow their staff “15-20%
time” each week to work on something they are
interested in. They can work with who they like, on
what they like and how they like during this time. All
three companies say many of their great products
have been developed this way…it’s where the post-it
note came from.
They can work
with who they like
on what they and
how they like…

14. Page 11
Compare this to a smaller, Australian story. When speaking to an employee in the insurance
industry, she was reflecting on her experience in two different companies. The one she
currently works for does not have to market or advertise for new clients. She marvelled
that this was case but reflected that the company policy was that each employee knew the
business and the insurance policies, so that when a client rang the business they could be
helped by the person that answered the phone. They also took care of the little things rather
than directing the client to the website to work it out themselves. The focus on upskilling
employees enabled great customer service, but it also showed an interest in the staff’s
development and broadening of their skill base. She compared this to her previous employer,
whose sales staff were under immense pressure to perform and get new clients, assistants
had no further training and incoming clients had to wait until their agent was available to
have their issues attended to or they were referred to the website.
Some flexibility of thinking and investment of time and resources into structuring how you
run the business around how employees like to work and need to grow, can have a big impact
on staff engagement, customer satisfaction and profit. Engaged staff provide better customer
service.
Principles
Steve Simpson coined the eloquent phrase ‘unwritten ground rules’ and his work around
organisational culture aims to identify the unspoken principles that determine how work
gets done in any organisation. If the environment is not ‘safe’ for people to take risks and
make suggestions without ridicule or blame, then innovation and creativity are unlikely to
happen. If the unwritten culture of the office is ‘change happens all the time, take no notice,
just sit tight and ride it out,’ then new
initiatives are unlikely to be accepted.
These principles may be organisation-
wide or they may concern specific
departments. If these ‘rules’ and the
atmosphere they create are out of
alignment with the strategic goals of

15. Page 12
the organisation or the aims of the manager, then no amount of rewards, punishment or
training is likely to make a difference.
Changing the environment culture or principles is a tricky proposition, as it may be the
manager’s style or it could be a long term employee that is polluting the atmosphere. It
starts with talking to the people in the team in an open and empathic way in order to build
trust and show an interest in their opinions. Then ensuring there is some action or change,
however small, will mean this initiative does not become another example of ‘they make
some attempt to find out what I think but nothing ever happens from it.’
Fostering potential in the work environment takes:
• Effective feedback
• Flexible structure
• Allows freedom
Conclusion
The good news is that fostering potential and reaping the rewards for growth of both
employees and the business can be achieved. The bad news is, this takes change which takes
time and risk which is why, if you have read this type of information before, you haven’t done
anything about it as it seems too difficult and hard to know where to start.
Change needs to be gradual as it’s not only the business risk that needs to be considered but
the impact of change on the individual workers. Some may need change and others may not,
so this type of change is best implemented one on one as it is each individual’s growth and
contribution that needs to be fostered. One size does not fit all, and perhaps this is where
initiatives have failed in the past.
The Gallup organisation’s research concluded the manager or direct supervisor is the critical
touch point for fostering potential in people. Ensuring this person (manager) is well supported
and knows what is expected of them and providing the right environment and training is vital,
so they can be supported to create the magic that happens when you foster the potential of
the people in your organisation.

16. About the Author:
Lisa Renn is a thought leader who is
passionate about people achieving their
potential. Everyone has something great to
contribute to this world and they can’t do it
if they are hampered by their environment.
Given work is a big part of people’s lives, it
provides a great opportunity for allowing
this expression of purpose via contribution
to the organisation, however somewhere
along the way work becomes antagonistic
to potential instead of an advocate.
Lisa started her working life with a Bachelor of Applied Science in Physical Education, taught for
some years while studying her Masters of Nutrition and Dietetics. It was while working as a dietitian
that Lisa became more interested in what motivated people to change and what were the things
that get in the way of people achieving their full potential. Although still passionate about health as
a vehicle to allow peak performance and potential realisation, it’s taken a back seat to a much more
powerful premise that when people are fulfilled in what they do every day they are much more likely
to contribute greatness everywhere.
When you provide the environment that fosters potential, you allow the person to step into themselves,
to stretch and grow. The spirit of contribution is mutual, from both the organisation and the individual,
which is why it’s so powerful and the results can literally change the world.
“In order to reach my full potential, and help others to reach theirs, I shifted my focus to the science
behind motivation and the situations, support and thinking that allow people to fulfil their potential.
What I have discovered is this is not just about training or social connectedness it’s about providing
the environment that allows you to *“dare greatly” and this is about empathy, support and trust.”
*’dare greatly’ is a term created by Brene` Brown
Bibliography
1. Seth Godin (2014) ‘What to do when it’s your turn’ Seth Godin
2. Daniel Pink (2009) ‘Drive- The surprising truth about what motivates us’ Canongate Books UK
3. Marcus Buckingham & Curt Coffman (1999)Gallup Organisation, ‘First, break all the rules’ Simon and
Schuster UK
4. https://en.wikipedia.org/wiki/JetBlue
5. Brene` Brown (2012), ‘Daring greatly-How the courage to be vulnerable transforms the way we live, love,
parent and lead’ Penguin Books

17. Training Solutions
Lisa is dedicated to helping
businesses and organisations
grow as a direct result of fostering
the potential in their employees.
Creating a mutually beneficial
environment that allows the
people in the organisation to do
work they love every day, providing
managers with the skills and tools
they need to nurture this culture and accelerating business growth via increased productivity,
innovation, customer service, a decreased turnover all as a result of more engaged staff.
Solutions include:
• Executive coaching
• Management coaching and training
• Team training or facilitated discovery
• Conference presentations
Go to the website or please call if you would like more information.
Web: www.lisarenn.com
Email: lisa@lisarenn.com
Phone: 0413 956 107