Sir Gordon Tietjens believes the legacy left by past New Zealand Commonwealth Games gold medal-winning sevens sides could give his squad the winning edge in Glasgow.
He said fear of failure had proven a useful tool.
"It certainly means a lot, but I also understand that one day we could go to a Commonwealth Games and it might not work for us," Tietjens said yesterday.
"In Delhi, as an example, I think we were losing to Australia by six or seven points with a couple of minutes to go.
"What got the best out of [the players] was that they didn't want to be in the first losing side at a Commonwealth Games. So they all have something to aspire to."
The most successful coach in the history of sevens rugby said competition for places in the squad had been fierce.
"It was one of the most difficult sides to select this year coming off the back of a tremendous world series. Ninety per cent of the squad has been selected on their form in the world series and also the trials we had at Mount Maunganui a number of weeks ago.
"I've got some very good players here - some I think should be in Super Rugby franchises - but then we all have our own opinions on players."
Blues flyer Pita Ahki was the lone Super Rugby player named in the squad, with Declan O'Donnell making a late run following 18 months out with shoulder problems to win selection.
Tietjens mentioned Kieran Read and Sonny Bill Williams as two players who could force their way into Olympic Games consideration with strong performances on the IRB Sevens circuit following the 2015 Rugby World Cup.
Captain DJ Forbes was looking forward to the chance of adding a second gold medal to the one he won four years ago.
"We're faced with a great opportunity to represent our country and also chase a dream of winning another gold medal. Hopefully we can do the country proud," Forbes said.
The squad will be based at Mount Maunganui before flying to the Netherlands for a week of training and practice games on Monday.