If you are running a league, perhaps with many divisions:
If you are running a ladder:
The easiest way to undertsand how Kudos Rating works is with a small example. Take 4 players with initial ratings shown in the adjacent table.
Now they play in the following matches
Kudos Rating points are awarded for these matches as follows.
Note that Bob got a lot of points for beating Alice who was much more highly rated. Compare that to Alice when she beat David and only got a few points.
After these matches Alice remains top of the table despite losing to a lower rated player because her lead beforehand was big enough. If Chris keeps winning and Alice keeps occasionally losing, he will overtake her at the top.
See how this works out for a real league with over 350 players, playing over 5000 matches with an example Live League.