Generations of Change

"In 2006, there were some concerns from investors about cash flow during the second and third quarters, and that had an effect on the stock," said Tim Yost, the CEB's chief financial officer.

CEB shares fell 16 percent a month ago after the company said sales would grow this year less than they did in 2006, and they have yet to kick back. The stock closed at $75.93 a share on Friday. Advisory Board shares closed at $51.76.

Executives acknowledge that the CEB isn't a destination for graduating MBAs. But the company is a sought-after brand at the 27 undergraduate campuses that are the main focus of recruiting, including Harvard, Yale, Georgetown and Duke. Some hires use their jobs to fill a gap between college and grad school. Others quickly move up the ranks.

And many use it as a steppingstone to other jobs -- so many that "we often joke about the high proportion of people in D.C. that either works here, dates someone who works here or lives with someone who works here," said Peter Freire, who has been with the company for 16 years and manages the department that offers research on human-resources issues. "It's like the six degrees of separation of CEB."

For Michelle Brown, 24, there weren't many other places to begin building a career with "just an international relations degree." She started with an entry-level CEB job three years ago after graduating from American University and was recently promoted. Her other options were working for a modest paycheck at a nonprofit or on Capitol Hill, "but a girl's gotta eat," she said. "I spent four years with great internships. I didn't want to go sit somewhere being someone's scheduler."

A visit to a CEB office on K Street gives the impression that the employees fit a certain profile. Many were class presidents, valedictorians, team captains. Asked to describe their colleagues, they use a lot of the same words: intellectually curious, driven, achievement-oriented. They tend to be impeccably dressed in a J. Crew kind of way.

More seasoned managers in the firm -- at the ripe old age of 32 or so -- say they're impressed by the professionalism displayed by the younger staff members. But putting so many ambitious, attractive young people in the same office is bound to present a unique set of workplace challenges. Several former employees, who have since left for law school or investment banking jobs, spoke of cliques and rumors.

"There are a lot of similarities between CEB and high school," said one former employee who spoke on the condition of anonymity because she still has working relationships with many people in the firm. "Sometimes people in power positions don't have enough life experience to manage people effectively."

Dress is sometimes an issue. One manager reported having to remind a group of young women that "they aren't in a sorority house -- especially in the summer when people wear less." The annual prom, usually held at the National Building Museum, has become a favorite target of non-CEB party crashers. After a rowdy incident that ended with someone in the museum's fountain a few years back, the company excluded hard liquor from the open bar, choosing to serve only wine and beer.

But many say the company's youth is one of its greatest assets.

For Diane Ainge, 23, the CEB provides a good transition to the working world. "It's like you're still in college -- I'm always around people my own age -- except everyone's so driven," she said at the bowling alley. "It's good to know that, if I work hard, I can go anywhere in the company in a matter of months."

Other consulting firms, such as McKinsey and Bain, also hire a lot of young people. What's different at the CEB, with its high turnover and fast growth, is how the fast track to management seems to move at the speed of light.

Todd Safferstone, 31, came to the CEB 10 years ago, fresh out of the University of North Carolina at Chapel Hill. He applied for a job at the suggestion of his father, whose company was a member of the CEB's network. He met his wife, Rachel, now 31, three weeks into the job; they were one of three couples who paired off that summer and eventually got married. Last week, he moved to London to head the European division of the human resources practice.

"It would be hard for me to imagine another company that would put so much trust in me so early in my career," he said.

Staff writer Thomas Heath contributed to this report.