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In this situation the other person believes they are correct and a high performer and you, the manager and your advice, is wrong. Your advice is wrong and your expectations are wrong. You can't have the conversation until you've done the work to identify the likely cause of an underperformer’s lack of self-awareness.

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That's where the spine requirement comes in. Tell them the next step. Performance improvement plans and/or warnings.

If there's nothing that can be done due to the lack of give and take from the employee then your only recourse is to get shot of them, whether through transferring them to some other dept where they'd be better suited or letting them go

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