If it is not installed, please install the SQL Client Tools.
Once this is complete, ensure that the SQL Agent service is running, and set it to Automatic if it is not set this way already. Close MessageStats if it is running, then reopen the application and try the execute the Database Configuration options again.
If you are seeing this error and are running SQL 2005 please see
https://support.quest.com/SUPPORT/index?page=solution&id=SOL16718If you are still having a problem after running either of these solutions for your respective Database version, please contact Quest Support.