In Drive, Dan Pink discussed the early methods companies used to motivate people. The incentives were usually external, which meant that organizations would first try a carrot. If a desirable reward didn't do the trick, then maybe try a stick next. If fear of penalties didn't evoke the intended response, then perhaps try a bigger stick? Pink then cited studies which showed how external rewards actually harmed performance instead of helping it. Furthermore, he showed examples of people driven by intrinsic factors, with no interest in any external rewards offered to them. Rather, a combination of autonomy, mastery, and purpose was sufficient to motivate these people. So what exactly did this involve?
Autonomy: people want to be able to do things their own way, so long as they know exactly what target to aim for. Just remember: autonomy does not exclude accountability. Neither side likes micromanaging, but leaders should wisely use occasional check-ins to keep a task on track. I would recommend a midpoint evaluation to start, adding quarterly checkpoints if you need higher frequency.
Mastery: Pink cites Csikszentmihalyi's (Cheek-sent-me-high) concept of flow as a way to keep people engaged. What exactly is flow? A state of mind where people are fully immersed in what they're doing. This involves a task matching up their skill with a challenge slightly outside their comfort zone, much like the next difficulty level of a video game. When people are in a state of flow, they not only handle failure better, they are excited about how much more they can learn. One caveat: games are great for getting people into a state of flow, but only if they actually help you get toward your intended goal.
Purpose: People may like earning money to make a living, but they find more satisfaction in working for a worthy cause. They want to know that their efforts have impact, and not just for their company's bottom line. The strongest companies know how to tie their work to a higher level of significance, and no one can afford to fool people into working hard. Authenticity always wins.

Takeaways:
1. Demonstrate the benefit and responsibility of autonomy. Some people might get excited about being able to do things their own way, while others might feel terrified after the initial thrill wears off. If you are the leader, express confidence in your team's talent, effort, and ability while providing the necessary resources and training to help them succeed. Then get out of the way, with occasional peeking.

2. Establish an identity people can both be proud of and grow into. The most successful anti-littering campaign in Texas involved neither rewards nor fines, but a slogan: "Don't Mess with Texas." Appeal to an innate sense of pride for who people are and where they came from, then challenge them to adopt a behavior which represents them well.

3. Find the flow for yourself and others. Figure out exactly where you are on Csikszentmihalyi's chart, adjusting either your challenge or improve your skill level to reach a productive state. Then turn around and help others match skill to challenge so they can be just as engaged.