Tomorrow's leaders today: Latin America's future CEOs do not travel alone. (Dream Teams).

Francisco Garza Zambrano is on his way to achieving the ultimate goal: CEO of the company. At 46 years old, he is running one of the biggest divisions of global cement giant Cemex after being part of an aggressive takeover team in charge of multimillion dollar acquisitions from Venezuela to Panama over the past decade. "You need a lot of people to achieve certain goals," says the president of the North American region.

Like Garza Zambrano and his team, the next generation of leaders in Latin America lurks just under the CEO level. These potential chief executive officers are learning through hands-on experience in high-pressure situations to lead subsidiaries and divisions. Perhaps most important, the region's top players travel in groups of at least twos and threes, according to a LATIN TRADE survey of the world's top executive search firms.

LATIN TRADE asked experts at Amrop Hever, Boyden Worldwide Network. Korn/Ferry International, Mariaca & Associates, Russell Reynolds and Spencer Stuart to name executives in Latin America with the potential to climb to the highest rung of the corporate ladder. The region's up-and-coming CEOs have made it to regional VP, country manager or CFO, among other positions, but have not yet nailed the job of head honcho.

Our survey's results show overwhelmingly that the region's future bosses have one trait in common: They do not travel alone. Almost 200 executives were nominated, but we narrowed the field based on companies with the highest concentration of nominees. Fifteen companies account for 40 of the region's future leaders.

"Teams are not just created for the purpose of having good relations, but rather to develop a common vision on how to resolve a problem and be successful," says Mateo Budinich, general director for the Americas for Telefonica Data.

Size matters. Nearly 40% of this year's future top executives work for Mexican operations. "Mexico has the benefit of being the largest and most stable economy in Latin America," says J. Steven Bartley of the Amrop Hever Group. Mexico also has the advantage of being the only country in Latin America to have free trade with the United States. This gives executives in Mexico a different business perspective and a new way to look at a company's growth.

Executives at Brazilian companies fill out our top squads, but Mexicans tend to dominate. Bartley says that's because Brazil-based managers transfer to new positions less easily than executives in the rest of Latin America. Language is one barrier, but Brazilians also tend to focus on just Brazil, and less on the regional perspective.

Some industries attract more budding stars than others. Professional services, information technology and financial services tied for top votes, accounting for three companies each and more than half of the 15 executive squads in the survey.

"There is great talent in every company:' says Bonnie Crabtree, office managing director at Korn/Ferry International. "Some are better than others at identifying and developing it."

Sabritas has clearly created a CEO-generating system. The Mexican unit of snack food giant Frito-Lay swept the competition away. Five of its executives occupy spots on our list, more than any other company in Latin America. It has achieved profitable growth, helping the company's international division to achieve a 3% increase in sales and 21% jump in profits during the first nine months of 2002.

Pablo Lagos, chief operating officer at Sabritas, says the company hires lots of leaders to manage rapid growth. "The level of intensity with which Sabritas seeks growth...attracts people who are looking for personal growth," says Lagos.

Sabritas does not always fill positions with existing employees. Instead, it recruits talent from other companies, including the parent company of Frito-Lay. PepsiCo. The Mexican company offers rapid career development based on proven results. "Many of the people who have left the larger organizations, such as PepsiCo ... have been key players for the smaller divisions" like Sabritas, Lagos says.

Acquisition transitions. Lagos left PepsiCo to help Frito-Lay build a snack-food market for the company in Spanish-speaking South America. After taking part in the acquisition and turnaround of Chile's Barcel, formerly a unit of Mexico's Bimbo, and of Venezuela's Savoy, purchased from Empresas Polar, he is now at the company's high-flying international unit, Sabritas.

Like Sabritas, Banco Santander Central Hispano has used teamwork to help manage acquisitions. Santander acquired Banco de Venezuela, the country's leading bank, for $351 million in 1996 and Banca Serfin, Mexico's third-largest bank, for $1.5 billion in 2000. The collaborative approach has made the Mexico and Venezuela units of Santander among its most top-performing businesses in Latin America. According to Gonzalo Echeandia, communications director at Banco Santander Central Hispano in Madrid, the company's success at these two banks led to the creation of a regional group focused on creating its own Latin American multinational culture.

Rather than rely on business standards handed down from Spanish headquarters, the company is building a regional strategy using its operations in Latin America. Santander Serfin has led the Mexican banking industry's return to consumer credit and sold a 25% stake for $1.6 billion to strategic partner Bank of America. The Venezuelan and Argentine operations have gained ample experience in tough circumstances, such as bank runs and blocked funds.

Building on the best procedures at each subsidiary has also been at the heart of Cemex's growth strategy. Takeover squads are expected to spot new management ideas at the purchased companies and export them to the global organization, not just standardize methods to match Cemex's values and objectives worldwide. Cemex's Garza Zambrano was part of a turnaround group for nearly a decade.

Now, as president of the North American region, he runs a large division as well as forms executive task forces to turn around acquired companies. "The company gives us the opportunity to move around," says Garza. "And the chance to experience different positions and what the company offers."

Not all executives feel that rising up the ranks as part of a team is fulfilling. By their nature, these leaders often want opportunities faster than companies can accommodate and break away from the group in search of a new team.

The break-up. Bernardo Minkow left the Mexico office of McKinsey & Company to join its operations in Spain. Having risen to senior partner in Mexico after years of work, Minkow moved to Madrid to gain international experience as part of a company program. Minkow says that at McKinsey & Co., nearly 98% of senior partners began their careers with the company immediately after graduate school and have stayed for the long haul. He attributes this retention rate to the fact that the company gives high-level executives the opportunity to switch offices and experience new markets within the same company. "Your priorities change," says Minkow.

When that happens, some executives opt for a new team. Cesar Muniz is one of the 2% of McKinsey's principal partners that have left the firm. After a 14-year career with McKinsey, he joined competitor Accenture in Mexico. As a principal partner at the global consultancy, Muniz's responsibilities increased. He is also taking part in Accenture's major marketing push to broaden the scope of customer relationship management. "We are beginning to see clearly where we are headed," says Muniz.

Muniz left one pack and joined another. The Accenture team of Muniz and Eugenio Curi in Mexico and Alexandre Gouvea in Brazil was also recognized among the survey's top 15 groups of potential CEOs.

Latin America's future leaders became integral members of very selective groups precisely because their budding talent that was detected early in the hiring process. "I look for a combination of business acumen, leadership competencies, people management abilities and a solid knowledge of business in Latin America," says IBM Latin America President Bruno Di Leo, who was recently promoted to lead the region and whose team of executives won accolades from Mexico to Brazil.

Nature and nurture. IBM identifies potential leaders early on. Newly appointed managers at IBM go through a 10-month training program to help them take on their responsibilities, and subsequently at least two days of training per year. The company offers bonuses for executives who achieve high marks in technological certification courses. "It is very important to have a continuous learning approach, rather than rely on isolated learning events," says Di Leo.

Citigroup International has a formal process for identifying top players throughout the region before a position is posted. During its annual talent review, managers come together to discuss the performance and potential of the company's people. Through this process Citigroup also determines how to organize its different operations. According to Jorge Bermudez, president of Citigroup International Latin America, this review also allows executives to reshuffle promising employees to different countries and regions as well as promote certain skills that may be lacking in a particular unit.

High-growth companies promote teamwork. At Sabritas in Mexico, for example, CEO Rogelio Rebolledo shuns the spotlight to allow his subordinates to shine. Pablo Lagos, the No. 2 at Sabritas, says that the company's corporate culture of collaborative effort starts at headquarters in the United States, where parent company PepsiCo has found rapid growth requires dynamic teams within each division. It shows.

Indeed, Garza Zambrano of Cemex says that learning to develop groups of leaders is the most important skill for any future CEO. "The challenge is to consolidate a solid structure of human capital," he says. In other words, be prepared to hire your replacement.

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Cemex's North America President Francisco Garza Zambrano is focused on the company's two biggest markets: Mexico and the United States In 2000, the US$2.8 billion acquisition of Houston-based Southdown Inc. led to a 60% increase in US. cement sales and made Cemex the largest cement producer in North America. LATIN TRADE reporter Michelle Guevara spoke with Garza Zambrano about Cemex's passion for change.

Buying companies creates growth, but how does Cemex integrate a new purchase?

We bring in [Cemex] experts to analyze the company from the perspective of best global practices. We look for quick hits, which can be fixed immediately based on what we've learned from previous mergers. Then [acquired companies] go through The Cemex Way to centralize information and standardize all of our reports.

Which business processes are standardized using the Cemex Way?

We have developed processes in all areas, including sales, production and accounting, to standardize the way we look at the company.

Tech spending is the cornerstone of Cemex efficiency. How does this work worldwide?

More than spending we see it as an investment. It certainly works from Mexico to Egypt to Spain. No matter where you have your [computer] you can obtain [company] results in any part of the world. And we also use it for internal communications, such as forums, to exchange best practices, discuss new problems or just to exchange internal information.

Has the U.S. economic slowdown affected operations in the U.S. and Mexico?

The U.S. slowdown has affected operations in Mexico in terms of GDP [gross domestic product] growth. Lower GDP means less jobs and income for the Mexican population. Nevertheless, Mexico has grown 4% in volume, partly due to government expenditures [on housing and infrastructure projects]. I expect further Mexican growth based on these increased expenditures as this will obviously be reflected in an increase in cement demand. In the United States, there are uncertainty factors that affect 2003. The economy may start to recover by the second half of the year. Demand for our product will show slight growth.

Are hard times good for Cemex?

Hard times have been hard, but not so much in Mexico. The government has put forth a housing program that has been good for us. In the Yucatan we are building 1,000 houses every three days due to damage caused by storms.

You're now No. 3 in the world. Are you shooting for No. 1?

We want to be the most efficient. We have been shooting for that and I think we are. But we are not in a race to be the biggest.

What advice do you give upper-level managers looking to become CEOs?

The first thing I would tell them is that they should be oriented towards developing and hiring quality people with sound values and principles, and to try to develop their personnel. They have to know their market and manage the business as if it was their own business. They must have a global vision and ensure that vision is communicated to the whole organization.

TEA SABRITAS

As general manager for Frito Lay Chile, Ecuador and Peru, Pablo Lagos directed the team responsible for making snack foods popular in Spanish-speaking South America. Now, as chief operating officer at Sabritas, Lagos has joined the team leading Frito Lay's most important division and its international charge.

At Sabritas, leadership is shared and team achievements are more important than individual accomplishments. President Rogelio Rebolledo, Lagos, Sales Director Sergio Fonseca, Latin America Sales Vice President Alejandra Smith and Marketing Director Juan Carlos Sapina were the five executives at the company recognized for their potential to become CEO.

With over 17,000 employees, Sabritas invests in training at all levels. Lagos says that the goal is to give the workforce a clear vision of the corporate and individual objectives and how best to achieve them.

Of course, experience remains an effective tool. "We throw you into the pool very quickly and teach you how to swim," says Lagos. The company encourages its employees to assume a high level of responsibility. Those able to handle the workload and generate positive results are on a fast track to be part of the company's top teams.

TEAM CITIGROUP

When Citigroup bought Banco Nacional de Mexico (Banamex), Manuel Medina Mora was tapped to run the combined operations in Mexico. The long-time Banamex executive, together with Corporate Director Enrique Zorrilla and Treasury Vice President Luis Pena, has been working ferociously to cut costs and compete in the country's rapidly consolidating banking industry. Citigroup's Mexico operations are boosting remittance services to attack the Hispanic market in the United States. With US$40 billion in assets, the bank holds a strong position in the country's financial system only slightly behind the leader, BBVA Bancomer.

Citibank Peru General Manager Eric Mayer was also identified as having what it takes to become CEO. The Peru operation recently combined its consumer and corporate businesses into one bank with more than $800 million in assets.

TEAM SANTANDER

Since Banco Santander Central Hispano took over Banco de Venezuela five years ago, the Spanish bank has been pushing hard to achieve high-growth. With US$2.5 billion in assets, the Venezuelan bank posted 24% net income growth in the third quarter of 2002 despite the country's economic turmoil. Banco de Venezuela President Michel Goguikian launched a preventive strategy that enabled the bank to grow while the economy was deteriorating. His teammate, Operations Vice President Diana Espino, took part in the plan's implementation as well as the bank's buyout of Banco Caracas at the beginning of 2001.

In Mexico, Grupo Financiero Santander Serfin General Director Marcos Martinez and Adolfo Lagos, who was senior vice president of Serfin until being promoted to headquarters in Spain, were chosen as top executives because the bank's net income increased 32% to $542 million in the first nine months of 2002. The executives moved aggressively into consumer lending with the launch of the Serfin Light credit card and mortgages--the first since the Mexican banking crisis in 1994. Santander plans to merge its Mexican operations--Serfin with assets of $15 billion and Mexicano with nearly $13 billion--to solidify its position in the Mexican market. Santander recently sold 25% of Grupo Financiero Santander Serfin to Bank of America for $1.6 billion.

TEAM ACCENTURE

Business strategy consultant Accenture generates nearly US$12 billion in revenues worldwide. Accenture's philosophy is based on shaping leaders out of its employees, regardless of their position, says Cesar Muniz, the principal partner for communications, media and entertainment industries.

Muniz along with Marcos Alexandre Nascimento, Accenture's human resources director for Latin America, are examples of Accenture's commitment to developing people at all levels. Nascimento helped direct the 2002 Human Resources Leaders Forum, a conference focused on establishing best practices in the field. Formerly known as Andersen Consulting, executives in Mexico and Brazil have seized on the name change to build market share. The Mexico unit has placed special emphasis on creating marketing expertise with Eugenio Curi, managing partner at the company, playing a key role.

TEAM ANTAMINA

Peru's Compania Minera Antamina is one of the largest copper and zinc mining operations in the world, with investments totaling US$2.3 billion. Antamina President Augusto Baertl is a career mining executive, a former president of Peru's Sociedad Nacional de Mineria and former general manager of the Peruvian zinc miner Milpo. He also worked on the privatization of the copper and gold mine Tintaya. Felipe Cantuarias, Antamina's vice president of corporate affairs, works with domestic non-profit organizations to promote economic growth and environmental conservation. Cantuarias is also president of the social development committee of the Peruvian Mining, Oil and Energy Society, which promotes environmental protection and social development.

TEAM DANONE

Bottled water and snack giant Groupe Danone hit US$10 billion in worldwide sales in the first three quarters of 2002. The group is Latin America's second-largest producer of bottled water, with subsidiaries in Argentina, Brazil, Colombia, Mexico and Uruguay. Francisco Camacho, recently appointed general manager for Evian North America, was the general manager of Bonafont, Danone's Mexican unit. At Bonafont, he doubled sales in less than two years and launched a new line of products. Gioji Okuhara, general manager for Brazil, leads the No. 1 producer of cereal biscuits and snack foods in Brazil.

TEAM IBM

At the beginning of 2002, IBM do Brasil integrated its small and medium-sized business and business partners units and chose Ricardo Pelegrini, a former finance director, to lead operations. IBM Mexico Commercial Director Roberto Cabrera helped launch an initiative to reduce costs for local small and medium-sized businesses. Carmen Graham, general manager at IBM Peru since 2001, helped develop the IBM Kid Smart program, which uses technology to teach children.

TEAM LUZ DEL SUR 

Luz del Sur is Peru's second-largest electricity distributor with annual sales of more than US$300 million. Luz del Sur Chief Executive Officer Mile Cacic has said that the company plans to invest no more than US$25 million in 2003 to extend and modernize its network Mark Hoffman, country manager for U.S. power company PSEG Global, which owns Luz del Sur, oversaw PSEG's $227 million purchase of power utility ElectroAndes during its privatization in mid-2001.

TEAM McKINSEY & CO.

People stay at McKinsey. Nearly 98% of its senior partners began their career with the company immediately after college. Consultants are considered global partners whose skills can be deployed in any of its offices worldwide.

Alexandre Gouvea, a principal partner at McKinsey & Co. in Sao Paulo, has worked with the Organization for Cooperation and Economic Development on issues of corporate governance. His counterparts Antonio Puron and Francisco Sananez are partners at the Mexico City and Caracas offices, respectively.

TEAM NEXTEL

Cellular phone company NIl Holdings, formerly Nextel International, has more than 1.2 million users in Latin America. After filing for bankruptcy earlier this year, the company completed a US$23 billion debt restructuring plan. Despite the financial trouble, Nextel de Mexico President Peter Foyo expects to increase revenues and subscribers by 25% in 2003. Nextel Peru President Miguel Rivera has expanded operations 30% since 2001. The company has focused on corporate clients and currently serves almost half of Peru's top corporations.

TEAM NOVARTIS

Novartis posted sales of US$15 billion in the first three quarters of 2002, a 10% increase over the same period last year. Miguel Bernabeu became country manager for Novartis Argentina and Uruguay after his work as marketing manager for Latin America and Turkey. His Chilean associate, Pablo Pereyra Murray, chief executive officer of Novartis Chile, led the restructuring of the company's eye-care unit CibaVision in Argentina. The Argentine unit now leads CibaVision worldwide in new product development.

TEAM PWC

Global revenues for PricewaterhouseCoopers reached US$13.8 billion for the fiscal year ending June 2002, including a 2% decline in South America due to currency devaluations. The Mexican market has proved a stable market in 2002. Javier Buzo, a partner in the Mexico office, has helped build the PwC presence. Alvaro Ta Taiar, director partner in Brazil, has held posts from Sao Paulo to New York during his 13 years at the company and is now in charge of e-business tax issues for South and Central America. Miguel Mur became country manager in Peru in 2001 after four years as a partner in the tax department.

TEAM TELEMAR

Telemar, Brazil's largest fixed-line phone operator, had revenues of US$4.2 billion in the first nine months of 2002 and 15.1 million lines in service. In 2002, Telemar bought out its partners in telecommunications company Pegasus as well as extended its reach to southern Brazil. Arlinda de Oliveira, director of information systems, works to keep Telemar up to speed in one of the fastest growing telecommunications markets in Latin America. Jorge da Gama Braga, director of long distance service, helped to establish long distance services for Telemar through its cellular operator Oi.

TEAM UNIBANCO 

Unibanco is one of Brazil's leading banks with nearly US$24 billion in assets. The bank's credit card unit, Cartao Unibanco, launched the first plastic money cards, to be used instead of carrying cash. Cartao Unibanco Chief Information Officer Carlos Henrique Zanvettor helped to launch the new "prepaid" product for the country's largest credit card company. In 2001, the bank's insurance unit Unibanco Seguros merged with American International Group (AIG) to offer a wide array of services to the Brazilian market. Jose Castro Araujo Rudge is the president of the new entity Unibanco AIG.