Not really, when the WWE brought him in, they already had their sight set on Austin being their next guy. He was brought in as an enforcer, then he never really did much. I think they tested him out in the main event scene with Shawn Michaels at one point, but it only served as a transitional feud between Survivor Series 1997 and Wrestlemania 14.
They did try to build him up as a major player though, as evident by his KOTR tournament win. He had potential, but his lack of mic skills prevented him from being a permenant fixture in the main event scene, especially at a time when several other people were stepping up big time.
WWF brought Ken Shamrock to just be another face on the card, somebody who was recognisable to some people and had an interesting gimmick. It's important to remember than when Shamrock jumped from WWF from UFC, UFC was just a small time company, who the WWF would often promote on their shows.
I think they originally had huge plans for him, but the Austin-McMahon feud took off and was successful. Then The Rock started getting over and they pushed him to the World title. Shamrock was then just an upper-midcarder to midcarder. Or they just saw him as mid-carder but with name value. I mean he was one of the most advertised stars of the Attitude Era.