Should organizations focus on talent pool identification to do succession planning?

Absolutely.  Succession planning is critical to the sustainability of any company.  It is important to develop the talent pool. There is a lot to be gained by developing and promoting your internal staff.

This will help improve morale and improve productivity;  You have already invested in your staff and it makes sense to continue.  The ROI will be very rewarding for the staff member and the company.

Just remember if you promote internally, coaching and preparing staff for the next level is very important. 

Yes of course.

Yes of course. Talented people are the future leader for the organization. HR responsibility to create career path for them.