The key is that teams have different strengths of schedule. Strength of schedule refers to how hard a team's schedule is. If Team A plays against difficult teams and Team B plays against easy teams, Team A will have a higher strength of schedule. And judges will take this strenght of schedule into account when they rank teams.
In 2018, judges felt Michigan had a harder schedule than UFC. They felt Michigan's poorer record still merited a higher ranking.
I like this example as an analogy of being careful in your judgements. It applies to humans as in "be kind; everyone you meet is fighting a hard battle." You could rephrase that to
"Don't judge; every person you meet has a different strength of schedule."