There is no need to set any environment variable if you are executing the command directly from the $LISA_HOME/bin directory. What is the home directory of the installation? You should see the following executable in $LISA_HOME/bin folder. Based on the error reported I am doubting if the path is correct. Do you see other executable in that folder?
In the example described below the LISA_HOME directory is C:\DevTest\8.5.0
C:\DevTest\8.5.0\bin>dir *.exe
Volume in drive C has no label.
Volume Serial Number is D648-50E6
Directory of C:\DevTest\8.5.0\bin
10/07/2015 12:34 AM 245,776 ATK.exe
10/07/2015 12:34 AM 314,384 Broker.exe
10/07/2015 12:34 AM 322,576 BrokerService.exe
10/07/2015 12:34 AM 268,816 CoordinatorServer.exe
10/07/2015 12:34 AM 277,520 CoordinatorService.exe
10/07/2015 12:34 AM 268,816 CVSManager.exe
10/07/2015 12:34 AM 313,872 EnterpriseDashboard.exe
10/07/2015 12:34 AM 322,576 EnterpriseDashboardService.exe
10/07/2015 12:34 AM 313,872 MakeMar.exe
10/07/2015 12:34 AM 313,872 PFAdapter.exe
10/07/2015 12:34 AM 314,384 PFCmdLineTool.exe
10/07/2015 12:34 AM 263,696 Portal.exe
10/07/2015 12:34 AM 277,520 PortalService.exe
10/07/2015 12:34 AM 269,328 Registry.exe
10/07/2015 12:34 AM 277,520 RegistryService.exe
10/07/2015 12:25 AM 93,184 sendsignal.exe
10/07/2015 12:34 AM 313,872 ServiceImageManager.exe
10/07/2015 12:34 AM 268,816 ServiceManager.exe
10/07/2015 12:34 AM 269,328 Simulator.exe
10/07/2015 12:34 AM 277,520 SimulatorService.exe
10/07/2015 12:34 AM 313,872 TestRunner.exe
10/07/2015 12:34 AM 268,816 VirtualServiceEnvironment.exe
10/07/2015 12:34 AM 277,520 VirtualServiceEnvironmentService.exe
10/07/2015 12:34 AM 268,816 VSEManager.exe
10/07/2015 12:34 AM 269,328 Workstation.exe
25 File(s) 6,985,600 bytes
0 Dir(s) 76,700,577,792 bytes free